Bill > SB1797

This bill establishes the Digital Assets and Consumer Protection Act to regulate digital asset business activities in Illinois. The bill defines key terms like "digital asset," "digital asset business activity," and "covered exchange," and sets up a comprehensive regulatory framework for businesses dealing with digital assets. The legislation requires businesses engaged in digital asset activities to obtain registration from the Department of Financial and Professional Regulation, maintain appropriate capital and liquidity, provide customer disclosures, protect customer assets, and implement robust compliance programs. Importantly, the bill excludes certain activities from regulation, such as peer-to-peer exchanges, decentralized exchanges, and software development. The act aims to protect consumers by establishing requirements for customer service, error resolution, fee transparency, and cybersecurity. Businesses will need to maintain detailed records, undergo potential examinations, and comply with strict operational standards. The bill provides a transition period, with full implementation expected by January 2027, and grants the Department significant enforcement powers, including the ability to impose civil penalties, issue cease and desist orders, and seek injunctive relief. The legislation reflects a comprehensive approach to regulating the emerging digital asset industry while providing consumer protections and regulatory oversight.

Budget and Finance, Government Affairs

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1797&GAID=18&DocTypeID=SB&SessionID=114&GA=104