SPRINGFIELD, Ill. (WAND) — You may have already flipped the coin from traditional investing to cryptocurrency, but the popular digital market could soon be regulated in Illinois. State lawmakers hope to pass a plan to stabilize the market and ensure consumers are protected.
Bitcoin, Ethereum, and stablecoins – cryptocurrency continues to grow in popularity. NBC News even described 2021 as a “crypto craze.” Now, Illinois lawmakers are working to regulate the booming industry.
“If we can get stability within these products and these companies, we can add stability to our entire banking system and put them in a situation where they don’t have to be bailed out,” Rep. Mark Walker (D-Arlington Heights) said Thursday.
NBC has reported one in five Americans have invested in, traded, or used the digital assets. With the rise in popularity, state lawmakers are fighting to make the companies register with the state just like any traditional bank.
“This bill will not hinder innovation,” said Rep. Margaret Croke (D-Chicago). “I think that this bill is good for the consumer in that there needs to be some sort of level of regulation in this industry.”
The unregulated market has spiked and fallen, leaving many Americans losing money. Walker said the wave of bankruptcies by digital brokers and lenders has revealed a critical need for regulation. Co-sponsors are upset that many unbanked communities are frequently solicited in Spanish and other languages offering unrealistic returns.
“The reality is that cryptocurrency has become a new avenue for bad actors to prey on the vulnerable and the unwary,” said Rep. Aaron Ortiz (D-Chicago). “Too often, these scams promise enormous returns on investment only to disappear with investors’ hard-earned money.”
Rep. Mark Walker (D-Arlington Heights) said the wave of bankruptcies by digital brokers and lenders has revealed a critical need for regulation.
House Democrats and Republicans agree something must be done to ensure Illinoisans aren’t taken advantage of in this “Wild Wild West” scenario.
“As the federal government gets more involved in this, the state will retract. They won’t overlap services,” said Rep. CD Davidsmeyer (R-Jacksonville). “They will retract and they will cover the smaller entities similar to how they do smaller banks and smaller credit unions, smaller investors.”
House Bill 3479 passed out of the House on a bipartisan 90-21 vote. The legislation now heads to the Senate for further consideration.
Lawmakers on Capitol Hill are also looking into crypto regulations.
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