You might have already switched from traditional investments to cryptocurrencies, but the widespread digital market could soon face regulation in Illinois. State legislators aim to approve a proposal to steady the market and guarantee the safety of consumers.
Bitcoin, Ethereum, and stablecoins are becoming increasingly popular, and NBC News has even dubbed 2021 the “crypto craze.” In light of this, Illinois lawmakers are taking steps to regulate the rapidly growing industry.
On Thursday, Rep. Mark Walker stated that by achieving stability within the cryptocurrency industry, the banking system as a whole could benefit and avoid the need for future bailouts.
One in five Americans, according to NBC News, has bought, sold, or utilized digital assets like Bitcoin and Ethereum. Legislators in Illinois are pushing for rules that would mandate these businesses register with the state, much like traditional banks, as the use of cryptocurrency rises.
Representative Margaret Croke (D-Chicago) assured that the proposed bill would not impede innovation, but rather protect consumers by regulating the industry. The unregulated nature of the market has caused significant harm to many Americans, creating a critical need for regulation. Many digital brokers and lenders have gone bankrupt, and unbanked communities are often targeted with unrealistic promises of high returns, often solicited in Spanish and other languages. Representative Aaron Ortiz (D-Chicago) emphasized that cryptocurrency has become a new tool for scammers to take advantage of the vulnerable and naive, luring them with empty promises of massive returns on investment only to vanish with their hard-earned money.
Both Democrats and Republicans agree that Illinoisans need to fix the unregulated cryptocurrency market to prevent exploitation, which they describe as a “wild wild weld” situation.
Representative CD Davidsmeyer, a Republican from Jacksonville, stated that if the federal government becomes more involved in cryptocurrency regulation, the state will scale back its involvement and focus on regulating smaller entities similar to smaller banks, credit unions, and investors.
Reference by wandtv.com
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