Rep. Walker To Advance Law Protecting Illinoisans From Digital Fraud

Press release from State Rep. Mark Walker's Office:

March 19, 2023

In the wake of continued fraud, abuse, and failures in the financial technology (“fintech”) sector, State Rep. Mark Walker, D-Arlington Heights, is advancing legislation to protect Illinoisans from fraudsters using digital financial products including cryptocurrencies.

“In Illinois, we’re proud to be a leader in innovative technologies,” Walker said. “But we also have a responsibility to protect consumers when bad actors enter that space. My bill supports innovative approaches while enhancing safety for consumers.”

Walker’s legislation, House Bill 3479, would establish the Digital Assets Regulation Act, requiring sellers and exchanges of digital assets to gain licensure by the state Department of Financial and Professional Regulations. As part of that licensure, fintech and digital asset companies who sell products like cryptocurrencies will be subject to the same oversight as other financial institutions. HB 3479 would require transparent disclosures to consumers, ensure greater protections of customer assets, and allow IDFPR to take a closer look at companies potentially engaging in fraudulent activities.

“Fintech like cryptocurrencies may be the new frontier in the financial world, but we can’t let it remain like the wild west,” Walker added. “We’ve seen banks collapse because of the failures in fintech, and Illinoisans have already been swindled out of millions of dollars due to fintech fraud. My legislation is the result of many months of work, will be good for the fintech space, and most importantly, protects Illinoisans.”

HB 3479 previously passed out of the House Financial Institutions and Licensing Committee and is expecting a vote in the House soon.

This press release was produced by State Rep. Mark Walker's Office. The views expressed here are the author's own.