state. Senator Mark Walker of Arlington Heights, Provided by Senate Democrat Caucus
The entire digital asset industry, commonly known as “crypto”, is booming in Illinois and our country.
It grows with geometric rates, branches out into many forks and products, bringing together millions of new buyers, sellers, traders and innovators.
Crypto’s approach to the wider market is currently at the brink of a bigger explosion.
There are great risks with big opportunities.
Crypto is not a scam, but it attracts many scammers because it is not easy for the public to understand, providing anonymity and allowing for quick escapes.
Many of these scams have existed since the invented financial institutions, but now there are new tools to elicit fear and confusion.
As crypto transactions increase and new customers are attracting a large number of reported frauds, so is the increase. The FBI reported that fraud losses in 2023 were fraud losses more than twice the total over the past five years. Thousands of Illinois have reported losses from fraud over the past two years. These often occur between struggling communities’ unbanked people and older people who are not proficient in modern technology.
In Illinois, there is a need to balance fostering innovation and growth in the tech industry with protecting consumers from fraud and abuse.
The Illinois Digital Asset and Consumer Protection Act (DACPA) is designed to do both. The Act requires digital asset companies to register, address cybersecurity risks and takes steps to establish consumer protection, including disclosure.
Without proper guardrails around the crypto industry, both IT and its customers will lose opportunities for growth. Requiring a crypto company to ensure certain safety requirements is no different from requiring someone who wants to drive or have a smoke detector to obtain a license. These requirements do not prevent people from driving and buildings from being present. They create a safer environment. A trustworthy environment.
The bill is not an attempt to discourage innovation in the growth of blockchain technology or digital assets.
An important part of this bill is to exempt artists who use blockchain to manage goods and inventory, peer-to-peer transactions, digital contracts, NFTs, and supportive and innovative software developers. It also exempts people who are subject to restrictions by other relevant government agencies, such as the Commodity Futures Trading Commission and the Securities and Exchange Commission. In fact, the purpose of the bill is to foster an environment in which innovators and entrepreneurs can grow into a wider market and achieve their goals.
The vision of all people who believe in cryptography and its growth only happens when their biggest obstacles are overcome – the lack of reliability in the wider market.
A recent Pew Research Center report shows that only 23% of adult Americans believe Crypto is reliable and safe. This skepticism is also often the case for fraud, abuse, loss, and even the failure of banks and companies related to the industry.
It’s time for some code brothers to wear their big boys pants.
It’s time for many responsible leaders in this industry to develop ways to minimize fraud and abuse and to help resist the hills and con artists who can ruin the reputation of everyone.
We can move forward together.
