Amid the aftermath of the FTX cryptocurrency exchange scandal in 2022, states like California, New Jersey, and Illinois are taking steps to regulate the crypto markets in the absence of federal legislation. The failure of FTX, the third-largest exchange, and the conviction of its CEO for fraud have prompted states to consider local policies to address the regulatory gaps.
Illinois recently introduced the Digital Assets Regulation Act (DARA) in response to the FTX fallout. The bill, although not passed during the last session, aims to establish a regulatory framework for digital assets in the state. Similarly, California and New Jersey have also explored legislation to regulate cryptocurrency activities.
