Illinois is trying to follow in New York’s crypto footsteps with a new oversight regime, according to David DeCarlo, Illinois’ first regulatory innovation officer, who is among the prominent advocates for the plan now being shepherded through the state legislature.
A coordinated pair of bills has been introduced in both chambers of the Illinois General Assembly that would establish a crypto license for the state as well as consumer protections that would include disclosures and the safeguarding of customer assets. The Illinois Department of Financial and Professional Regulation (IDFPR), where DeCarlo works, has helped craft the new measures that could put Illinois in league with New York and eventually California in setting up comprehensive state-level crypto regulations.
The Illinois legislation would require crypto firms to seek licensing akin to New York’s BitLicense, and it would also establish trust companies that could handle custody of digital assets. Crypto exchanges and other virtual assets businesses would have to provide investment disclosures, protect customer assets, have defensive measures against hacks and shield themselves against use by money launderers.
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