{"id":126979,"date":"2025-04-11T09:15:58","date_gmt":"2025-04-11T09:15:58","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=126979"},"modified":"2025-04-11T09:15:58","modified_gmt":"2025-04-11T09:15:58","slug":"illinois-senate-passes-crypto-bill-to-fight-fraud-and-rug-pulls","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=126979","title":{"rendered":"Illinois Senate passes crypto bill to fight fraud and rug pulls"},"content":{"rendered":"

Source: Cointelegraph.com NewsThe Illinois Senate by a vote of 39 to 17 passed a regulatory bill aimed at curbing cryptocurrency fraud and protecting investors from deceptive practices, including rug pulls and misleading fee structures.
\nOn April 10, the chamber passed Senate Bill 1797 (SB1797), also known as the Digital Assets and Consumer Protection Act, which Senator Mark Walker introduced in February.
\nThe bill gives the Illinois Department of Financial and Professional Regulation authority to oversee digital asset business activity within the state.
\nUnder the legislation, any entity engaging in digital asset business with Illinois residents must be registered with the state\u2019s financial regulator. The bill also requires crypto service providers to offer advance full disclosure of user fees and charges.
\nBill SB1797. Source: Ilga.gov\u201cA person shall not engage in digital asset business activity, or hold itself out as being able to engage in digital asset business activity, with or on behalf of a resident unless the person is registered in this State by the Department under this Article […],\u201d the bill states.
\nRelated: Trump family memecoins may trigger increased SEC scrutiny on crypto
\nWalker has previously highlighted the need to address crypto-related fraud in Illinois. In an April 4 X post, he stated:
\n\u201cThe rise of digital assets has opened the door for financial opportunity, but also for bankruptcy, fraud and deceptive practices. We must set standards for those who have evolved in the crypto business to ensure they are credible, honest actors.\u201d
\nIllinois\u2019 push for stronger oversight follows a wave of high-profile memecoin meltdowns and insider-led scams that have left retail investors with substantial losses.
\nIn March, New York introduced Bill A06515, aiming to establish criminal penalties to prevent cryptocurrency fraud and protect investors from rug pulls.
\nRelated: Trump\u2019s tariff escalation exposes \u2018deeper fractures\u2019 in global financial system
\nMemecoin scams spark regulatory momentum
\nOne of the most notorious recent cases was the collapse of the Libra token, a memecoin reportedly endorsed by Argentine President Javier Milei. In March, the project\u2019s insiders allegedly withdrew over $107 million in liquidity, causing a 94% price crash and wiping out roughly $4 billion in market value.
\nLibra token crash. Source: Kobeissi LetterInsider scams and \u201coutright fraudulent activities\u201d like rug pulls, which are \u201cnot only unethical but also clearly illegal, with case law to support enforcement,\u201d should see more thorough regulatory attention, Anastasija Plotnikova, co-founder and CEO of blockchain regulatory firm Fideum, told Cointelegraph, adding:
\n\u201cIn my view, these activities should fall firmly within the jurisdiction of law enforcement agencies.\u201d
\nThe latest meltdown occurred on March 16, after Hayden Davis, the co-creator of the Official Melania Meme (MELANIA) and the Libra token, launched a Wolf of Wall Street-inspired token (WOLF).
\nSource: BubblemapsOver 82% of the token\u2019s supply was held by the same entity, which led to a 99% price crash after the token peaked at a $42 million market capitalization.
\nArgentine lawyer Gregorio Dalbon has asked for an Interpol Red Notice to be issued for Davis, citing a \u201cprocedural risk\u201d if Davis were to remain free as he could access vast amounts of money that would allow him to either flee the US or go into hiding.
\nMagazine: Caitlyn Jenner memecoin \u2018mastermind\u2019s\u2019 celebrity price list leakedRead More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsThe Illinois Senate by a vote of 39 to 17 passed a regulatory bill aimed at curbing cryptocurrency fraud and protecting investors from deceptive practices, including rug pulls… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126979"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=126979"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126979\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=126979"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=126979"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=126979"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}