365Crypto
Illinois lawmakers just dropped the hammer on crypto fraud. A new bill, SB1797, passed with a solid 39-17 vote in the Senate. It’s designed to crack down on scams, including those sneaky rug pulls and shady fee traps.
What’s SB1797 About?
This bill, called the Digital Assets and Consumer Protection Act, gives the Illinois Department of Financial Regulation more muscle. Now, any crypto company doing business with Illinois residents must register with the state.
No registration? No business. Period.
Full Disclosure Required
The law also demands full transparency from crypto services. That means users must be told exactly what fees they’ll pay—before they pay them.
Why Now?
Senator Mark Walker, who introduced the bill in February, isn’t playing around. He said the boom in digital assets has created big opportunities… and even bigger risks.
Think scams. Think sudden bankruptcies. Think influencers pushing trash coins.
Memecoins and Mayhem
This crackdown follows chaos in the memecoin world. Remember the Libra token? It was hyped as connected to Argentina’s president. Turns out, insiders yanked $107 million, the token tanked 94%, and investors watched $4 billion vanish.
Not the Only One
Another token, MELANIA, was tied to the same guy—Hayden Davis. He launched a new coin called WOLF, pumped it, and watched it crash 99% after hoarding most of the supply.
Interpol is now involved. A lawyer wants Davis flagged as a flight risk.
What’s a Rug Pull?
Rug pull: when developers hype a crypto project, get investors to buy in, then pull all the funds and disappear.
Lawmakers say these are illegal, not just unethical—and it’s time law enforcement stepped up.
