HB5303 DIGITAL ASSETS-VARIOUS | Illinois Bill

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5303

Introduced 2/10/2026, by Rep. Natalie A. Manley

SYNOPSIS AS INTRODUCED:

205 ILCS 731/1-5
205 ILCS 731/1-10
205 ILCS 731/15-10
205 ILCS 731/15-15
205 ILCS 731/20-25
205 ILCS 731/20-45
205 ILCS 731/35-15

Amends the Digital Assets and Consumer Protection Act. Makes changes
to defined terms. Provides that the Act does not apply to a person whose
digital financial asset business activity with, or on behalf of, residents
is reasonably expected to be valued, in the aggregate, on an annual basis
at $5,000,000 or less, measured by the United States dollar equivalent of
digital financial assets. Requires the Department of Financial and
Professional Regulation to approve, conditionally approve, or deny any
license application within 120 days after receipt of a completed
application. Replaces provisions concerning renewal applications with
annual reporting requirement provisions. Provides that the transition
period under which covered persons and covered exchanges are not
considered in violation of certain provisions ends January 1, 2028
(instead of January 1, 2027). Provides that rules adopted under the Act do
not take effect earlier than January 1, 2027 (instead of January 1, 2026).
Effective immediately.
LRB104 19433 BAB 32881 b

A BILL FOR

HB5303
LRB104 19433 BAB 32881 b
1

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

Section 5.
The Digital Assets and Consumer Protection Act
5
is amended by changing Sections 1-5, 1-10, 15-10, 15-15,
6
20-25, 20-45, and 35-15 as follows:

(205 ILCS 731/1-5)
8

Sec. 1-5.
Definitions.
9

(a) As used in this Act:
10

"Affiliate" means any person that controls, is controlled
11
by, or is under common control with another person. For
12
purposes of this definition, "control" means the possession,
13
direct or indirect, of the power to direct or cause the
14
direction of the management and policies of a person.
15

"Applicant" means a person that applies for registration
16
under this Act.
17

"Bank" means a bank, savings banks, savings and loan
18
association, savings association, or industrial loan company
19
chartered under the laws of this State or any other state or
20
under the laws of the United States.
21

"Confidential supervisory information" means information
22
or documents obtained by employees, agents, or representatives
23
of the Department in the course of any examination,

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investigation, audit, visit, registration, certification,
2
review, licensing, or any other regulatory or supervisory
3
activity pursuant to this Act, and any record prepared or
4
obtained by the Department to the extent that the record
5
summarizes or contains information derived from any report,
6
document, or record described in this Act.
7

"Conflict of interest" means an interest that might
8
incline a covered person or an individual who is an associated
9
person of a covered person to make a recommendation that is not
10
disinterested.
11

"Corporate fiduciary" shall mean a corporate fiduciary as
12
defined by Section 1-5.05 of the Corporate Fiduciary Act.
13

"Covered person" means a registrant or person required to
14
register pursuant to this Act.
15

"Covered exchange" means a covered person that exchanges
16
or holds itself out as being able to exchange a digital asset
17
for a resident as part of a business or on behalf of a customer
18
who has entered into an agreement with a business for the
19
provision of such services.
20

"Credit union" means a credit union chartered under the
21
laws of this State or any other state or under the laws of the
22
United States.
23

"Department" means the Department of Financial and
24
Professional Regulation.
25

"Digital asset" means a digital representation of value
26
that is used as a medium of exchange, unit of account, or store

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LRB104 19433 BAB 32881 b
1
of value, and that is not fiat currency, whether or not
2
denominated in fiat currency. "Digital asset" does not include
3
any of the following:
4

(1) A digital representation of value that a merchant
5

grants as part of an affinity or rewards program and that
6

primarily relates to such affinity or rewards program.
7

(2) A digital representation of value that is issued
8

by or on behalf of a game publisher and that is used
9

primarily within online games or gaming platforms.
10

(3) Other digital representations of value that have
11

substantial value, utility, or significance beyond the
12

asset's mere existence as a digital asset, including
13

digital equivalents of tangible and intangible goods such
14

as: (A) works of art, musical compositions, literary
15

works, and similar intellectual property; (B) collectibles
16

and merchandise; and (C) licenses, tickets, and similar
17

rights to attend events or participate in activities.
18

(4) A digital representation of value that is not
19

marketed, used, promoted, offered, or sold for investment
20

or speculation, except that this exclusion shall not apply
21

to any digital representation of value that (A) is
22

meme-based with no intrinsic value or utility or (B) is
23

marketed, used, promoted, offered, or sold in a manner
24

that intends to establish a reasonable expectation or
25

belief among the general public that the instrument will
26

retain a nominal value that is so stable as to render the

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nominal value effectively fixed. The Department may adopt
2

rules to clarify the scope and applicability of this
3

subsection.
4

(5) A digital representation of value that is used as
5

part of prepaid cards.
6

"Digital asset business activity" means any of the
7
following:
8

(1) Exchanging, transferring, or storing a digital
9

asset as part of a business or on behalf of a customer who
10

has entered into an agreement with a business for the
11

provision of such services.
12

(2) Engaging in digital asset administration.
13

(3) Any other business activity involving digital
14

assets designated by rule by the Department as may be
15

necessary and appropriate for the protection of residents.
16

"Digital asset business activity" does not include (1)
17
peer-to-peer exchanges or transfers of digital assets, (2)
18
decentralized exchanges facilitating peer-to-peer exchanges or
19
transfers solely through use of a computer program or a
20
transaction protocol that is intended to automatically
21
execute, control, or document events and actions, (3) the
22
development, publication, constitution, administration,
23
maintenance, and dissemination of software in and of itself,
24
(4) the issuance of a non-fungible token in and of itself,
and

25
(5) validating a digital asset transaction, operating a node,
26
or engaging in similar activity to participate in

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LRB104 19433 BAB 32881 b
1
facilitating, operating, or securing a blockchain system
, and
2
(6) any money transmission of legal tender occurring in,
3
associated with, or related to the normal, typical, or
4
customary performance of digital asset business activity. For
5
purposes of this definition, "legal tender" means a medium of
6
exchange or unit of value, including the coin or paper money of
7
the United States, issued by the United States or by another
8
government
.
9

"Exchange", when used as a verb, means to exchange, buy,
10
sell, trade, or convert, on behalf of a resident, either of the
11
following:
12

(1) A digital asset for fiat currency or one or more
13

forms of digital assets.
14

(2) Fiat currency for one or more forms of digital
15

assets.
16

"Exchange" does not include buying, selling, or trading
17
digital assets for a person's own account in a principal
18
capacity.
19

"Executive officer" includes, without limitation, an
20
individual who is a director, officer, manager, managing
21
member, partner, or trustee, or other functionally equivalent
22
responsible individual, of a person.
23

"Federally insured depository institution" shall mean an
24
insured depository institution as defined by Section 3(c)(2)
25
of the Federal Deposit Insurance Act, 12 U.S.C. 1813(c)(2), as
26
amended, or an insured credit union as defined by Section

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LRB104 19433 BAB 32881 b
1
101(7) of the Federal Credit Union Act, 12 U.S.C. 1752(7), as
2
amended.
3

"Fiat currency" means a medium of exchange or unit of
4
value issued by the United States or a foreign government and
5
that is designated as legal tender in its country of issuance.
6

"Insolvent" means any of the following:
7

(1) Having generally ceased to pay debts in the
8

ordinary course of business other than as a result of a
9

bona fide dispute.
10

(2) Being unable to pay debts as they become due.
11

(3) Being insolvent within the meaning of federal
12

bankruptcy law.
13

"Non-fungible token" means any unique digital identifier
14
on any blockchain or digital asset network used to certify
15
authenticity and ownership rights that is not readily
16
exchangeable or replaceable with a mutually interchangeable
17
digital asset of the same value. The Department may modify
18
this definition by rule.
19

"Person" includes, without limitation, any individual,
20
corporation, business trust, estate, trust, partnership,
21
proprietorship, syndicate, limited liability company,
22
association, joint venture, government, governmental
23
subsection, agency or instrumentality, public corporation or
24
joint stock company, or any other organization or legal or
25
commercial entity.
26

"Prepaid card" means an electronic payment device that,

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LRB104 19433 BAB 32881 b
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subject to any rules adopted by the Department:
2

(1) is usable at a single merchant or an affiliated
3

group of merchants that share the same name, mark, or
4

logo, or is usable at multiple, unaffiliated merchants or
5

service providers;
6

(2) is issued in and for a specified amount of fiat
7

currency;
8

(3) can be reloaded in and for only fiat currency, if
9

at all;
10

(4) is issued or reloaded on a prepaid basis for the
11

future purchase or delivery of goods or services;
12

(5) is honored upon presentation;
13

(6) can be redeemed in and for only fiat currency, if
14

at all;
15

(7) is governed by the Uniform Money Transmission
16

Modernization Act; and
17

(8) complies with any other condition designated by
18

rule by the Department as may be necessary and appropriate
19

for the protection of residents.
20

"Qualified custodian" means a bank, credit union, or trust
21
company, subject to any rules adopted by the Department.
22

"Record" means information that is inscribed on a tangible
23
medium or that is stored in an electronic or other medium and
24
is retrievable in perceivable form.
25

"Registrant" means a person registered under this Act.
26

"Resident" means any of the following:

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LRB104 19433 BAB 32881 b
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(1) A person who is domiciled in this State.
2

(2) A person who is physically located in this State
3

for more than 183 days of the previous 365 days.
4

(3) A person who has a place of business in this State.
5

(4) A legal representative of a person that is
6

domiciled in this State.
7

"Request for assistance" means all inquiries, complaints,
8
account disputes, and requests for documentation a covered
9
person receives from residents.
10

"Responsible individual" means an individual who has
11
direct control over, or significant management, policy, or
12
decision-making authority with respect to, a person's digital
13
asset business activity in this State.
14

"Secretary" means the Secretary of Financial and
15
Professional Regulation and any authorized representative of
16
the Secretary.
17

"Service provider" means any person that provides a
18
material service to a covered person in connection with the
19
offering or provision by that covered person of a digital
20
asset business activity in this State, including a person that
21
either:
22

(1) Participates in designing, operating, or
23

maintaining the digital asset business activity.
24

(2) Processes transactions relating to the digital
25

asset business activity, other than unknowingly or
26

incidentally transmitting or processing financial data in

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LRB104 19433 BAB 32881 b
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a manner that the data is undifferentiated from other
2

types of data of the same form as the person transmits or
3

processes.
4

"State" means a state of the United States, the District
5
of Columbia, Puerto Rico, the United States Virgin Islands, or
6
any territory or insular possession subject to the
7
jurisdiction of the United States.
8

"Store
,
"
,
"storage", and "storing", except in the phrase
9
"store of value
,
"
, mean

means
to store, hold, or maintain
10
custody or control of a digital asset on behalf of a resident
11
by a person other than the resident.
12

"Transfer" means to transfer or transmit a digital asset
13
on behalf of a resident, including by doing any of the
14
following:
15

(1) Crediting the digital asset to the account or
16

storage of another person.
17

(2) Moving the digital asset from one account or
18

storage of a resident to another account or storage of the
19

same resident.
20

(3) Relinquishing custody or control of a digital
21

asset to another person.
22

"United States dollar equivalent of digital assets" means
23
the equivalent value of a particular digital asset in United
24
States dollars shown on a covered exchange regulated in the
25
United States for a particular date or period specified in
26
this Act, subject to any rules adopted by the Department.

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LRB104 19433 BAB 32881 b
1

(b) Whenever the terms "include", "including" or terms of
2
similar import appear in this Act, unless the context requires
3
otherwise, such terms shall not be construed to imply the
4
exclusion of any person, class, or thing not specifically
5
included.
6

(c) A reference in this Act to any other law or statute of
7
this State, or of any other jurisdiction, means such law or
8
statute as amended to the effective date of this Act, and
9
unless the context otherwise requires, as amended thereafter.
10

(d) Any reference to this Act shall include any rules
11
adopted in accordance with this Act.
12
(Source: P.A. 104-428, eff. 8-18-25; revised 12-12-25.)

(205 ILCS 731/1-10)
14

Sec. 1-10.
Applicability.
15

(a) This Act governs the digital asset business activity
16
of a person doing business in this State or, wherever located,
17
who engages in or holds itself out as engaging in the activity
18
with or on behalf of a resident, to the extent not preempted by
19
federal law and except as otherwise provided in
subsection

20
subsections
(b), (c), (d), or (e).
21

(b)(1) This Act does not apply to the exchange, transfer,
22
or storage of a digital asset or to digital asset
23
administration to the extent that:
24

(A) the Securities Exchange Act of 1934, 15 U.S.C.
25

78a et seq., or the Illinois Securities Law of 1953

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LRB104 19433 BAB 32881 b
1

govern the activity as a security transaction and the
2

activity is regulated by the U.S. Securities and
3

Exchange Commission or the Illinois Secretary of
4

State; or
5

(B) the Commodity Exchange Act, 7 U.S.C. 1 et
6

seq., governs the activity, the activity is in
7

connection with trading of a contract of sale of a
8

commodity for future delivery, an option on such a
9

contract or a swap, and the activity is regulated by
10

the U.S. Commodity Futures Trading Commission.
11

(2) This subsection shall be construed in a manner
12

consistent with affording the greatest protection to
13

residents and the Department's authority under subsection
14

(a) of Section 1-15 to exercise nonexclusive oversight and
15

enforcement under any federal law applicable to digital
16

asset business activity. This subsection shall not be
17

construed to exempt an activity solely because a financial
18

regulatory agency has anti-fraud and anti-manipulation
19

enforcement authority over the activity.
20

(1) The United States, a
state

State
, political
22

subdivision of a
state

State
, agency, or instrumentality
23

of federal,
state

State
, or local government, or a foreign
24

government or a subdivision, department, agency, or
25

instrumentality of a foreign government.
26

(2) A federally insured depository institution.

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LRB104 19433 BAB 32881 b
1

(3) A corporate fiduciary acting as a fiduciary or
2

otherwise engaging in fiduciary activities.
3

(4) A merchant using digital assets solely for the
4

purchase or sale of goods or services, excluding the sale
5

of
purchase of digital assets, in the ordinary course
6

of its business.
7

(5) A person using digital assets solely for the
8

purchase or sale of goods or services for his or her own
9

personal, family, or household purposes.
10

(6) A person who (A) contributes connectivity software
11

or computing power or otherwise participates in the
12

process of securing a network, (B) records digital asset
13

transactions to the network or protocol governing transfer
14

of the digital representation of value, or (C) develops,
15

publishes, constitutes, administers, maintains, or
16

otherwise distributes software relating to the network, so
17

long as the person does not control transactions of
18

digital assets on the network.
19

(7) A credit union with member share accounts insured
20

by an insurer approved by the credit union's primary
21

financial regulatory agency. An out-of-state credit union
22

may not conduct any activity in this State that is not
23

authorized for a credit union chartered under the laws of
24

this State.
25

(8) A person whose digital financial asset business
26

activity with, or on behalf of, residents is reasonably

HB5303
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LRB104 19433 BAB 32881 b
1

expected to be valued, in the aggregate, on an annual
2

basis at $5,000,000 or less, measured by the United States
3

dollar equivalent of digital financial assets.

Nothing in this Act grants persons described in this
5
subsection (c) authority to engage in any activity not
6
otherwise granted under existing law.
7

(d) The Department may by rule or order clarify whether an
8
activity is governed under this Act or another Act that
9
governs money transmission. This subsection (d) shall not be
10
applied in a manner inconsistent with the protection of
11
residents.
12

(e) Notwithstanding any other provision of this Act, the
13
Department, by rule or order, may conditionally or
14
unconditionally exempt any person, digital asset, or
15
transaction, or any class or classes of persons, digital
16
assets, or transactions, from any provision of this Act or of
17
any rule thereunder, to the extent that the exemption is
18
necessary or appropriate, in the public interest, and
19
consistent with the protection of residents.
20
(Source: P.A. 104-428, eff. 8-18-25; revised 12-12-25.)

(205 ILCS 731/15-10)
22

Sec. 15-10.
Application.
23

(a) An application for a registration under this Act shall
24
meet all of the following requirements:
25

(1) The application shall be in a form and medium

HB5303
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LRB104 19433 BAB 32881 b
1

prescribed by the Department. The Department may require
2

the filing of the application through a multistate
3

licensing system.
4

(2) The application shall provide all of the following
5

information relevant to the applicant's proposed digital
6

asset business activity:
7

(A) The legal name of the applicant, any current
8

or proposed business United States Postal Service
9

address of the applicant, and any fictitious or trade
10

name the applicant uses or plans to use in conducting
11

the applicant's digital asset business activity with
12

or on behalf of a resident.
13

(B) The legal name, any former or fictitious name,
14

and the residential and business United States Postal
15

Service address of any executive officer and
16

responsible individual of the applicant and any person
17

that has control of the applicant.
18

business of the applicant and any affiliate of the
20

applicant for the 5 years before the application is
21

submitted, or, if the business has operated for less
22

than 5 years, for the time the business has operated,
23

including its products and services, associated
24

internet website addresses and social media pages,
25

principal place of business, projected user base, and
26

specific marketing targets.

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LRB104 19433 BAB 32881 b
1

(D) A list of all of the following:
2

(i) Any digital asset, money service, or money
3

transmitter registration the applicant and any
4

affiliates hold in another state or from an agency
5

of the United States.
6

(ii) The date the registrations described in
7

subdivision (i) expire.
8

(iii) Any revocation, suspension, or other
9

disciplinary action taken against the applicant
10

and any affiliates in any state or by an agency of
11

the United States and any applications rejected by
12

any state or agency of the United States.
13

(E) A list of any criminal conviction, deferred
14

prosecution agreement, and pending criminal proceeding
15

in any jurisdiction against all of the following:
16

(i) The applicant.
17

(ii) Any executive officer of the applicant.
18

(iii) Any responsible individual of the
19

applicant.
20

(iv) Any person that has control over the
21

applicant.
22

(v) Any affiliate of the applicant.
23

(F) A list of any litigation, arbitration, or
24

administrative proceeding in any jurisdiction in which
25

the applicant or an executive officer, responsible
26

individual, or affiliate of the applicant has been a

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1

party for the 10 years before the application is
2

submitted determined to be material in accordance with
3

generally accepted accounting principles and, to the
4

extent the applicant or such other person would be
5

required to disclose the litigation, arbitration, or
6

administrative proceeding in the applicant's or such
7

other person's audited financial statements, reports
8

to equity owners, and similar statements or reports.
9

(G) A list of any bankruptcy or receivership
10

proceeding in any jurisdiction for the 10 years before
11

the application is submitted in which any of the
12

following was a debtor:
13

(i) The applicant.
14

(ii) An executive officer of the applicant.
15

(iii) A responsible individual of the
16

applicant.
17

(iv) A person that has control over the
18

applicant.
19

(v) An affiliate of the applicant.
20

(H) The name and United States Postal Service
21

address of any bank or credit union in which the
22

applicant and any affiliates plan to deposit funds
23

obtained by digital asset business activity.
24

(I) The source of funds and credit to be used by
25

the applicant and any affiliate to conduct digital
26

asset business activity with or on behalf of a

HB5303
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LRB104 19433 BAB 32881 b
1

resident.
2

(J) A current financial statement and other
3

documentation satisfactory to the Department
4

demonstrating that the applicant has the capital and
5

liquidity required by Section 20-5.
6

(K) The United States Postal Service address and
7

email address to which communications from the
8

Department can be sent.
9

(L) The name, United States Postal Service
10

address, and email address of the registered agent of
11

the applicant in this State.
12

(M) A copy of the certificate, or a detailed
13

summary acceptable to the Department, of coverage for
14

any liability, casualty, business interruption, or
15

cybersecurity insurance policy maintained by the
16

applicant for itself, an executive officer, a
17

responsible individual, an affiliate, or the
18

applicant's users.
19

(N) If applicable, the date on which and the state
20

in which the applicant is formed and a copy of a
21

current certificate of good standing issued by that
22

state.
23

(O) If a person has control of the applicant and
24

the person's equity interests are publicly traded in
25

the United States, a copy of the audited financial
26

statement of the person for the most recent fiscal

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1

year or most recent report of the person filed under
2

Section 13 of the Securities Exchange Act of 1934, 15
3

U.S.C. 78m.
4

(P) If a person has control of the applicant and
5

the person's equity interests are publicly traded
6

outside the United States, a copy of the audited
7

financial statement of the person for the most recent
8

fiscal year of the person or a copy of the most recent
9

documentation similar to that required in subparagraph
10

(O) filed with the foreign regulator in the domicile
11

of the person.
12

(Q) If the applicant is a partnership or a
13

member-managed limited liability company, the names
14

and United States Postal Service addresses of any
15

general partner or member.
16

(R) If the applicant is required to register with
17

the Financial Crimes Enforcement Network of the United
18

States Department of the Treasury as a money service
19

business, evidence of the registration.
20

(S) A set of fingerprints for each executive
21

officer and responsible individual of the applicant.
22

(T) If available, for any executive officer and
23

responsible individual of the applicant, for the 10
24

years before the application is submitted, employment
25

history and history of any investigation of the
26

individual or legal proceeding to which the individual

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1

was a party.
2

(U) The plans through which the applicant will
3

meet its obligations under Article 10.
4

(V) Any other information the Department requires
5

by rule.
6

(3) The application shall be accompanied by a
7

nonrefundable fee of $5,000 or the amount determined by
8

the Department to cover the costs of application review,
9

whichever is greater.
10

(b)(1) On receipt of a completed application, the
11
Department shall investigate all of the following:
12

(A) The financial condition and responsibility of the
13

applicant and any affiliate of the applicant.
14

(B) The relevant financial and business experience,
15

character, and general fitness of the applicant and any
16

affiliate of the applicant.
17

fitness of each executive officer and director, each
19

responsible individual, and any person that has control of
20

the applicant.
21

(2) On receipt of a completed application, the Department
22
may investigate the business premises of an applicant or an
23
affiliate of the applicant or require the submission of any
24
other documents or information the Department deems relevant
25
to the application.
26

(3) The investigation required by this subsection must

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1
allow the Secretary to issue positive findings stating that
2
the financial condition, financial responsibility, competence,
3
experience, character, and general fitness of the applicant,
4
each executive officer and director, each responsible
5
individual, any person that has control of the applicant, and
6
any affiliate of the applicant are such as to command the
7
confidence of the community and to warrant belief that the
8
business will be operated honestly, fairly, and efficiently
9
within the purpose of this Act; if the Secretary does not so
10
find, he or she shall not issue the registration, and he or she
11
shall notify the applicant of the denial.
12

(c)(1) After completing the investigation required by
13
subsection (b), the Department shall send the applicant notice
14
of its decision to approve, conditionally approve, or deny the
15
application. If the Department does not receive notice from
16
the applicant that the applicant accepts conditions specified
17
by the Department within 31 days following the Department's
18
notice of the conditions, the application shall be deemed
19
withdrawn.
The Department shall approve, conditionally
20
approve, or deny any license application within 120 days after
21
receipt of a completed application.

(2) The Secretary may impose conditions on a registration
23
if the Secretary determines that those conditions are
24
necessary or appropriate. These conditions shall be imposed in
25
writing and shall continue in effect for the period prescribed
26
by the Secretary.

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1

(d) A registration issued pursuant to this Act shall take
2
effect on the later of the following:
3

(1) The date the Department issues the registration.
4

(2) The date the registration provides the security
5

required by Section 20-5.
6

(e) In addition to the fee required by paragraph (3) of
7
subsection (a), an applicant shall pay the costs of the
8
Department's investigation under subsection (b).
9

(f) A registration issued pursuant to this Act shall
10
remain in full force and effect until it expires without
11
meeting the reporting requirements of this Act

renewal
, is
12
surrendered by the registration, or revoked or suspended as
13
hereinafter provided.
14

(g)(1) The Department may issue a conditional registration
15
to an applicant who holds or maintains a registration to
16
conduct virtual currency business activity in the State of New
17
York pursuant to Part 200 of Title 23 of the New York Code of
18
Rules and Regulations, or a charter as a New York State limited
19
purpose trust company with approval to conduct virtual
20
currency business under the New York Banking Law, if the
21
registration or approval was issued no later than the
22
effective date of this Act and the applicant pays all
23
appropriate fees and complies with the requirements of this
24
Act.
25

(2) A conditional registration issued pursuant to this
26
subsection shall expire at the earliest of the following:

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1

(A) upon issuance of an unconditional registration;
2

(B) upon denial of a registration;
3

to Part 200 of Title 23 of the New York Code of Rules and
5

Regulations or disapproval or revocation of a charter as a
6

New York State limited purpose trust company with approval
7

to conduct virtual currency business under the New York
8

Banking Law.
9
(Source: P.A. 104-428, eff. 8-18-25.)

(205 ILCS 731/15-15)
11

Sec. 15-15.
Annual report

Renewal
.
12

(a) Registrations shall be subject to
reporting
13
requirements

renewal
every year using a common
reporting

14
renewal
period as established by the Department by rule. A
15
registrant
shall submit to the Department an annual report

may
16
apply for renewal of the registration by submitting a renewal
17
application
under subsection (b) and
pay

paying
all applicable
18
fees due to the Department.
19

(b) The
report

renewal application
required by subsection
20
(a) shall be submitted in a form and medium prescribed by the
21
Department. The
report

application
shall contain all of the
22
following:
23

(1) Either a copy of the registrant's most recent
24

reviewed annual financial statement, if the gross revenue
25

generated by the registrant's digital asset business

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1

activity in this State was not more than $2,000,000 for
2

the fiscal year ending before the anniversary date of
3

issuance of its registration under this Act, or a copy of
4

the registrant's most recent audited annual financial
5

statement, if the registrant's digital asset business
6

activity in this State amounted to more than $2,000,000,
7

for the fiscal year ending before the anniversary date.
8

(2) If a person other than an individual has control
9

of the registrant, a copy of either of the following:
10

(A) The person's most recent reviewed annual
11

financial statement, if the person's gross revenue was
12

not more than $2,000,000 in the previous fiscal year
13

measured as of the anniversary date of issuance of its
14

registration under this Act.
15

(B) The person's most recent audited consolidated
16

annual financial statement, if the person's gross
17

revenue was more than $2,000,000 in the previous
18

fiscal year measured as of the anniversary date of
19

issuance of its registration under this Act.
20

(3) A description of any of the following:
21

(A) Any material change in the financial condition
22

of the registrant and any affiliate of the registrant.
23

(B) Any material litigation related to the
24

registrant's digital asset business activity and
25

involving the registrant or an executive officer,
26

responsible individual, or affiliate of the

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1

registrant.
2

involving the registrant or an executive officer,
4

responsible individual, or affiliate of the
5

registrant.
6

(D)(i) Any data security breach or cybersecurity
7

event involving the registrant.
8

(ii) A description of a data security breach
9

pursuant to this subparagraph does not constitute
10

disclosure or notification of a security breach for
11

purposes of any other law.
12

(4) Information or records required by Section 20-25
13

that the registrant has not reported to the Department.
14

(5) The number of digital asset business activity
15

transactions with or on behalf of residents for the period
16

since the later of the date the registration was issued or
17

the date the last
report

renewal application
was
18

submitted.
19

(6)(A) The amount of United States dollar equivalent
20

of digital assets in the custody or control of the
21

registrant at the end of the last month that ends not later
22

than 30 days before the date of the
report

renewal
23

application
.
24

(B) The total number of residents for whom the
25

registrant had custody or control of United States dollar
26

equivalent of digital assets on that date.

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(7) Evidence that the registrant is in compliance with
2

Section 5-10.
3

(8) Evidence that the registrant is in compliance with
4

Section 20-5.
5

(9) A list of all locations where the registrant
6

engages in digital asset business activity.
7

(10) Any other information the Department requires by
8

rule.
9

(c) If a registrant does not timely comply with this
10
Section, the Department may take enforcement actions provided
11
under Section 20-50. Notice or hearing is not required for a
12
suspension or revocation of a registration under this Act for
13
failure to pay a
reporting

renewal
fee, file a
report

renewal
14
application
, or otherwise comply with this Section.
15

(d) Suspension or revocation of a registration under this
16
Section does not invalidate a transfer or exchange of digital
17
assets for or on behalf of a resident made during the
18
suspension or revocation and does not insulate the registrant
19
from liability under this Act.
20

(e) For good cause, the Department, in its sole
21
discretion, may extend a period under this Section.
22

(f) A registrant that does not comply with this Section
23
shall cease digital asset business activities with or on
24
behalf of a resident. A registrant ceasing an activity or
25
activities regulated by this Act and desiring to no longer be
26
registered shall so inform the Department in writing and, at

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1
the same time, convey any registration issued and all other
2
symbols or indicia of registration. The registrant shall
3
include a plan for the withdrawal from regulated business,
4
including a timetable for the disposition of the business, and
5
comply with the surrender guidelines or requirements of the
6
Department.
7
(Source: P.A. 104-428, eff. 8-18-25.)

(205 ILCS 731/20-25)
9

Sec. 20-25.
Material business changes.
10

(a) A registrant shall file with the Department a report
11
of the following, as may be applicable:
12

(1) A material change in information in the
13

application for a registration under this Act or the most
14

recent
renewal
report of the registrant under this Act.
15

(2) A material change in the registrant's business for
16

the conduct of its digital asset business activity with or
17

on behalf of a resident.
18

(3) A change of an affiliate, executive officer,
19

responsible individual, or person in control of the
20

registrant.
21

(b) A report required by this Section shall be filed not
22
later than 15 days after the change described in subsection
23
(a).
24
(Source: P.A. 104-428, eff. 8-18-25.)

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1

(205 ILCS 731/20-45)
2

Sec. 20-45.
Additional investigation and examination
3
authority.
In addition to any authority allowed under this Act
4
or other applicable law, the Secretary shall have the
5
authority to conduct investigations and examinations as
6
follows:
7

(1) For purposes of initial registration,
reporting

renewal
, suspension, conditioning, revocation or
9

termination, or general or specific inquiry or
10

investigation to determine compliance with this Act, the
11

Secretary shall have the authority to access, receive, and
12

use any books, accounts, records, files, documents,
13

information, or evidence, including, but not limited to,
14

the following:
15

(A) criminal, civil, and administrative history
16

information, including nonconviction data as specified
17

in the Criminal Code of 2012;
18

(B) personal history and experience information,
19

including independent credit reports obtained from a
20

consumer reporting agency described in Section 603(p)
21

of the federal Fair Credit Reporting Act; and
22

the Secretary deems relevant to the inquiry or
24

investigation, regardless of the location, possession,
25

control, or custody of the documents, information, or
26

evidence.

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1

(2) For the purposes of investigating violations or
2

complaints arising under this Act or for the purposes of
3

examination, the Secretary may review, investigate, or
4

examine any covered person, affiliate, service provider,
5

individual, or person subject to this Act as often as
6

necessary in order to carry out the purposes of this Act.
7

The Secretary may direct, subpoena, or order the
8

attendance of and examine under oath all persons whose
9

testimony may be required about the transactions or the
10

business or subject matter of any such examination or
11

investigation, and may direct, subpoena, or order the
12

person to produce books, accounts, records, files, and any
13

other documents the Secretary deems relevant to the
14

inquiry.
15

(3) Each covered person, affiliate, service provider,
16

individual, or person subject to this Act shall make
17

available to the Secretary upon request the books and
18

records relating to the operations of the registrant,
19

affiliate, individual, or person subject to this Act. The
20

Secretary shall have access to those books and records and
21

interview the officers, principals, employees, independent
22

contractors, agents, and customers of the covered person,
23

affiliate, service provider, individual, or person subject
24

to this Act concerning their business.
25

(4) Each covered person, affiliate, service provider,
26

individual, or person subject to this Act shall make or

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1

compile reports or prepare other information as directed
2

by the Secretary in order to carry out the purposes of this
3

Section, including, but not limited to:
4

(A) accounting compilations;
5

(B) information lists and data concerning
6

transactions in a format prescribed by the Secretary;
7

or
8

out the purposes of this Section.
10

(5) In making any examination or investigation
11

authorized by this Act, the Secretary may control access
12

to any documents and records of the covered person or
13

person under examination or investigation. The Secretary
14

may take possession of the documents and records or place
15

a person in exclusive charge of the documents and records
16

in the place where they are usually kept. During the
17

period of control, no person shall remove or attempt to
18

remove any of the documents or records, except pursuant to
19

a court order or with the consent of the Secretary. Unless
20

the Secretary has reasonable grounds to believe the
21

documents or records of the covered person or person under
22

examination or investigation have been or are at risk of
23

being altered or destroyed for purposes of concealing a
24

violation of this Act, the covered person or owner of the
25

documents and records shall have access to the documents
26

or records as necessary to conduct its ordinary business

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1

affairs.
2

(6) In order to carry out the purposes of this
3

Section, the Secretary may:
4

(A) retain attorneys, accountants, or other
5

professionals and specialists as examiners, auditors,
6

or investigators to conduct or assist in the conduct
7

of examinations or investigations;
8

(B) enter into agreements or relationships with
9

other government officials, regulatory associations,
10

or self-regulatory organizations in order to improve
11

efficiencies and reduce regulatory burden by sharing
12

resources, standardized or uniform methods or
13

procedures, and documents, records, information, or
14

evidence obtained under this Section;
15

privately available analytical systems, methods, or
17

software to examine or investigate the covered person,
18

affiliate, service provider, individual, or person
19

subject to this Act;
20

(D) accept and rely on examination or
21

investigation reports made by other government
22

officials, within or outside this State; or
23

(E) accept audit reports made by an independent
24

certified public accountant for the covered person,
25

affiliate, service provider, individual, or person
26

subject to this Act in the course of that part of the

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1

examination covering the same general subject matter
2

as the audit and may incorporate the audit report in
3

the report of the examination, report of
4

investigation, or other writing of the Secretary.
5

(7) The authority of this Section shall remain in
6

effect, whether such a covered person, affiliate, service
7

provider, individual, or person subject to this Act acts
8

or claims to act under any licensing or registration law
9

of this State or claims to act without the authority.
10

(8) No covered person, affiliate, service provider,
11

individual, or person subject to investigation or
12

examination under this Section may knowingly withhold,
13

abstract, remove, mutilate, destroy, or secrete any books,
14

records, computer records, or other information.
15
(Source: P.A. 104-428, eff. 8-18-25.)

(205 ILCS 731/35-15)
17

Sec. 35-15.
Transition period.
18

(a) A covered person engaging in digital asset business
19
activity without a registration under this Act shall not be
20
considered in violation of Section 15-5 or 5-25 until July 1,
21
2028

2027
.
22

(b) A covered person engaging in digital asset business
23
activity shall not be considered in violation of Sections 5-5,
24
5-10, and 5-20 until January 1,
2028

2027
.
25

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1
violation of Section 5-15 until January 1,
2028

2027
.
2

(d) Notwithstanding the foregoing, the Department may
3
adopt rules pursuant to this Act upon this Act becoming law
4
with such rules not to take effect earlier than January 1,
2027

5
2026."
.
6
(Source: P.A. 104-428, eff. 8-18-25; revised 12-12-25.)

Section 99.
Effective date.
This Act takes effect upon
8
becoming law.

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DIGITAL ASSETS-VARIOUS

Plain English Breakdown

DIGITAL ASSETS-VARIOUS

What This Bill Does

Limits and Unknowns

Bill History

Official Summary Text

Current Bill Text