SB 1797 Illinois Senate · 104th Regular Session

DIGITAL ASSETS & CONS PROT ACT

Summary

Creates the Digital Assets and Consumer Protection Act. Provides that the Department of Financial and Professional Regulation shall regulate digital asset business activity in the State. Sets forth provisions concerning: applicability; the powers and duties of the Department; funds; customer protections; custody and protection of customer assets; covered exchanges; compliance; registration; supervision; records; additional procedural provisions; confidentiality; violations; enforcement; rulemaking authority; and severability. Creates the Special Purpose Trust Company Article in the Corporate Fiduciary Act. Sets forth provisions concerning certificates of authority; rulemaking and organization; certificates of authority for foreign corporate fiduciaries; eligibility; fees; and certificates of reciprocity. Makes other changes to various Acts. Effective immediately.

Issues: ✓ Technology

Bill status signed all 5 stages cleared

Introduction

Apr 2025

Committee Review

Jun 2025

Senate Passage

Jun 2025

House Passage

May 2025

Signed into Law

Aug 2025

Introduced Apr 10, 2025 Signed Aug 18, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

Engrossed → Enrolled · 4 edits · Aug 18, 2025

MODERATE

The bill was finalized for signing by clarifying that digital asset exchanges must be conducted on behalf of customers or businesses, rather than just for residents. The definition of 'digital asset' was significantly expanded to explicitly exclude digital representations of value used in prepaid cards, while also adding specific exclusions for meme-based tokens and those marketed for stable investment value. Additionally, the definition of 'digital asset business activity' was updated to include validation of transactions and node operations, broadening the regulatory scope to cover more aspects of the blockchain ecosystem.

Scope change

The bill's scope was broadened to include validation of digital asset transactions and operating nodes, and the definition of regulated activities was refined to clarify that peer-to-peer exchanges are exempt only when not conducted as part of a business.

DEFINITION

The definition of 'digital asset' was modified to explicitly include digital representations of value used in prepaid cards as an exclusion, ensuring they are not regulated as digital assets.

The definition of 'digital asset' was modified to add specific exclusions for meme-based tokens and tokens marketed with a stable nominal value, distinguishing them from traditional digital assets.

The definition of 'digital asset business activity' was modified to explicitly include validating transactions and operating nodes, expanding the types of activities subject to regulation.

SCOPE

The definition of exchanging digital assets was modified to require that the activity be conducted as part of a business or on behalf of a customer, narrowing the scope to exclude casual personal transactions.

Introduced → Engrossed · 14 edits · Jun 1, 2025

MAJOR

The bill was updated from its original introduction to its final engrossed version, primarily to correct formatting errors, fix line breaks, and add specific legal definitions and exemptions. These changes clarify exactly what types of digital assets are regulated and ensure the law excludes common financial tools like prepaid cards and gaming tokens.

Scope change

The scope of the bill was narrowed and clarified by adding specific exemptions. The law now explicitly excludes peer-to-peer exchanges, decentralized exchanges, and the development of software from being considered regulated 'digital asset business activity.' It also clarifies that issuing non-fungible tokens (NFTs) alone is not a regulated activity.

DEFINITION

Added a new definition for 'Non-fungible token' to specify that unique digital identifiers for authenticity are not regulated digital assets.

Added a new definition for 'Fiat currency' to clarify it means money issued by a government designated as legal tender.

Added a new definition for 'Insolvent' to list specific financial conditions that determine if an entity is bankrupt.

Added a new definition for 'Federally insured depository institution' to include specific federal banking acts.

Modified the definition of 'Digital asset administration' to explicitly state that issuing a non-fungible token by itself is not considered digital asset administration.

Modified the definition of 'Digital asset business activity' to explicitly exclude peer-to-peer exchanges, decentralized exchanges, and software development.

Modified the definition of 'Exchange' to clarify that it does not include buying, selling, or trading digital assets for a person's own account.

Modified the definition of 'Digital asset' to explicitly exclude digital representations of value used in prepaid cards.

Modified the definition of 'Digital asset' to explicitly exclude digital tokens used solely within gaming platforms that cannot be converted to cash.

Modified the definition of 'Digital asset' to explicitly exclude merchant loyalty or rewards points that cannot be exchanged for cash or digital assets.

SCOPE

Added exemptions stating that peer-to-peer transfers, decentralized exchanges, and software development are not regulated digital asset business activities.

Added an exemption clarifying that exchanging digital assets for one's own account (principal capacity) is not a regulated activity.

TECHNICAL

Removed the original 'Synopses As Introduced' section, which is standard text replaced by the final engrossed version.

Added page headers and footers to the final version to indicate the bill is 'Engrossed' rather than 'Introduced'.

Floor votes · Senate Apr 10, 2025 · House May 30, 2025

How they voted

38–17

Passed · 3 other

Total votes 58

Apr 10, 2025

D Democratic39

36 Yea 3

92% Yea

R Republican19

2 Yea 17 Nay

89% Nay

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Aug 18, 2025

Signed into law

Governor Approved

upper

Jun 1, 2025

Upper · Passed

Passed Both Houses

upper

Jun 1, 2025

Upper · Passed

House Committee Amendment No. 1 Senate Concurs 041-015-000

upper

May 31, 2025

Upper · Passed

House Committee Amendment No. 1 Motion To Concur Recommended Do Adopt Executive; 009-004-000

upper

May 31, 2025

Committee

House Committee Amendment No. 1 Motion to Concur Assignments Referred to Executive

upper

May 31, 2025

Committee

House Committee Amendment No. 1 Motion to Concur Referred to Assignments

upper

May 30, 2025

Introduced

Placed on Calendar Order of Concurrence House Amendment(s) 1 - May 30, 2025

upper

May 30, 2025

Introduced

Secretary's Desk - Concurrence House Amendment(s) 1

upper

May 30, 2025

Lower · Passed

Third Reading - Short Debate - Passed 076-038-001

lower

May 28, 2025

Lower · Passed

Do Pass as Amended / Short Debate Financial Institutions and Licensing Committee; 007-004-000

lower

May 28, 2025

Lower · Passed

House Committee Amendment No. 1 Adopted in Financial Institutions and Licensing Committee; by Voice Vote

lower

May 28, 2025

Lower · Passed

House Committee Amendment No. 1 Rules Refers to Financial Institutions and Licensing Committee

lower

May 27, 2025

Lower · Passed

Motion Filed to Suspend Rule 21 Financial Institutions and Licensing Committee; Rep. Bob Morgan

lower

May 27, 2025

Committee

House Committee Amendment No. 1 Referred to Rules Committee

lower

May 27, 2025

Introduced

House Committee Amendment No. 1 Filed with Clerk by Rep. Edgar González, Jr.

lower

May 23, 2025

Lower · Passed

Committee/Final Action Deadline Extended-9(b) May 31, 2025

lower

May 23, 2025

Committee

Assigned to Financial Institutions and Licensing Committee

lower

May 9, 2025

Committee

Rule 19(a) / Re-referred to Rules Committee

lower

Apr 17, 2025

Committee

Assigned to Financial Institutions and Licensing Committee

lower

Apr 11, 2025

Committee

Referred to Rules Committee

lower

Apr 10, 2025

Introduced

Arrived in House

lower

Apr 10, 2025

Upper · Passed

Third Reading - Passed; 039-017-000

upper

Apr 10, 2025

Upper · Passed

Senate Floor Amendment No. 2 Adopted; Walker

upper

Apr 9, 2025

Introduced

Senate Floor Amendment No. 2 Recommend Do Adopt Executive; 009-004-000

upper

Apr 8, 2025

Introduced

Senate Floor Amendment No. 2 Assignments Refers to Executive

upper

Apr 4, 2025

Committee

Senate Floor Amendment No. 2 Referred to Assignments

upper

Apr 4, 2025

Introduced

Senate Floor Amendment No. 2 Filed with Secretary by Sen. Mark L. Walker

upper

Apr 3, 2025

Upper · Passed

Do Pass as Amended Executive; 008-004-000

upper

Apr 3, 2025

Upper · Passed

Senate Committee Amendment No. 1 Adopted

upper

Mar 21, 2025

Upper · Passed

Rule 2-10 Committee Deadline Established As April 4, 2025

upper

Mar 18, 2025

Upper · Passed

Senate Committee Amendment No. 1 Assignments Refers to Executive

upper

Mar 12, 2025

Committee

Senate Committee Amendment No. 1 Referred to Assignments

upper

Mar 12, 2025

Introduced

Senate Committee Amendment No. 1 Filed with Secretary by Sen. Mark L. Walker

upper

Feb 18, 2025

Committee

Assigned to Executive

upper

Feb 6, 2025

Committee

Referred to Assignments

upper

1 primary · 14 co-sponsors