# Illinois SB1797: DIGITAL ASSETS & CONS PROT ACT Illinois SB1797, DIGITAL ASSETS & CONS PROT ACT, is a 104th General Assembly (2025–2026) Senate bill sponsored by Mark L. Walker (Democratic); status signed, last action 2025-08-18 (Public Act . . . . . . . . . 104-0428) (as of 2026-11-01). - Canonical: https://policyrisk.com/state-bill/IL-SB1797-2025-2026 - As of: 2026-11-01 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Illinois SB1797 - State: Illinois - Session: 104th General Assembly (2025–2026) - Title: DIGITAL ASSETS & CONS PROT ACT - Status: signed - Chamber: Senate - Introduced: 2025-02-06 - Last action: 2025-08-18, Public Act . . . . . . . . . 104-0428 - Sponsor: Mark L. Walker (Democratic) - Cosponsors: 16 - Subjects: assignments, executive, financial institutions and licensing - Touches household money: no - Roll calls: 8 (264 yes, 125 no in all) - Economic provisions PRIA read: 20 ## 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. ## Bill overview: provisions PRIA read - Customer digital assets get stronger safeguards: benefit, high. Beginning January 1, 2027, covered custodians must hold enough of each digital asset to cover customers’ total claims. They must separate customer assets from company assets and cannot use or pledge them without customers’ direction. In insolvency and creditor proceedings, the law treats customer a… - Digital asset customers gain legal remedies: benefit, medium. Illinois residents can bring civil cases over violations of the law’s consumer-protection article. Residents who win may receive reasonable attorney’s fees and court costs. Those violations also count as unlawful practices under Illinois consumer-fraud law, enforceable by the Attorney General. The… - Exchanges must review assets and trades: benefit, medium. Beginning January 1, 2027, covered exchanges must certify risk reviews before listing assets for Illinois residents. Reviews address possible securities status, conflicts, cybersecurity, code defects, fraud, and market risks; exchanges must reassess assets and remove them when needed. Assets approv… - Court protections for digital asset customers: benefit, low. Providers required to register cannot sue for payment unless they prove valid registration throughout the covered services. Exempt providers are not subject to this limit. Through the Attorney General or local State’s Attorney, the Department can sue over violations of the law, rules, final orders,… - Digital asset customers get clearer costs: benefit, low. Beginning January 1, 2027, covered providers must clearly explain fees, insurance coverage, transfer finality, unauthorized-transfer liability, and recovery procedures. Disclosures also cover debit timing, payment cancellation rights, outages during the prior 12 months, non-legal-tender status, and… - Live help for digital asset customers: benefit, low. Covered digital asset providers must prominently show a toll-free number for live help on their websites, subject to Department rules. They must offer Illinois residents timely, effective help with disputes and mistaken or unauthorized transactions. They must handle complaints fairly and promptly,… - Consumer protection rulemaking for trust companies: benefit, low. The Illinois Commissioner gains express authority to make consumer protection rules for corporate fiduciaries, such as trust companies. This adds to the Commissioner’s existing rulemaking powers. The provision itself sets no specific new consumer right or payment. - Digital asset firms face annual checks: cost, low. Registered firms must renew annually, submit required information, and pay applicable fees. Applicable gross revenue of $2 million or less requires a reviewed annual financial statement; revenue above $2 million requires an audit. Firms that fail renewal requirements must stop serving Illinois resi… - Digital asset firms pay oversight costs: cost, low. Covered firms pay nonrefundable oversight fees, including $150 per examiner or staff member for each hour or partial hour, plus travel. Registrants also share uncovered administration costs and prior-year deficits, initially split roughly equally between transaction-volume and customer-custody-valu… - Digital asset ownership deals need approval: cost, low. Digital asset registrations cannot be transferred or assigned, and proposed new controllers must apply before taking control. At 25% voting power, control is conclusive; ownership, voting control, or proxies of at least 10% create a challengeable presumption. Mergers, consolidations, and purchases… - Digital asset violators face steep penalties: cost, low. Illegal unregistered service to Illinois residents can bring penalties up to $100,000 per day, subject to the registration grace period. Other violations carry up to $25,000 per day, act, or omission; fraud, misrepresentation, deceit, or negligence raises the maximum to $75,000. Penalties continue… - Digital asset protections have phased deadlines: mixed, medium. The law gives digital asset firms time to meet its new requirements. Covered firms are not in violation of specified disclosure, custody, trading, and exchange-listing requirements until January 1, 2027. Operating without registration does not violate the specified registration rules until July 1,… - Digital asset firms need Illinois registration: mixed, medium. Covered digital asset firms must register to serve Illinois residents, unless exempt; federal law can limit state oversight. Exemptions cover specified securities and commodities activity, governments, financial institutions, fiduciaries, merchants, personal transfers, and software or network contr… - Public access limits for financial records: mixed, low. The law generally shields confidential financial oversight records and related communications from public-records requests unless made public. It also exempts digital asset information that the Digital Assets Regulation Act bars from disclosure. Listed recipients, including regulators and law enfor… - Illinois strengthens digital asset complaint oversight: mixed, low. Illinois must maintain staff and facilities to receive, record, and investigate complaints. The Department can conduct unannounced examinations, including relevant out-of-state offices, affiliates, and service providers, and coordinate with other regulators. It can subpoena records or testimony, in… - Business application fees fund financial oversight: mixed, low. Digital asset registration applicants must pay a nonrefundable fee of $5,000 or the Department’s determined review cost, whichever is greater. Applicants also pay the Department’s investigation costs. Money collected under the Act goes into a new Consumer Protection Fund. The fund can cover adminis… - Digital asset firms face safety duties: mixed, low. Applicants must create written compliance policies before applying, and registered firms must keep them current and enforce them. Governing bodies must approve policies covering cybersecurity, disaster recovery, business continuity, fraud, financial crime, operational security, legal compliance, an… - Digital asset firms must keep reserves: mixed, low. Before registration takes effect, firms must provide a surety bond or U.S.-dollar trust account to cover resident claims. The Department sets the amount and how long coverage continues after business stops; trust accounts require a qualified custodian. Firms must also maintain Department-set capita… - Out-of-state fiduciaries gain conditional access: mixed, low. More out-of-state entity types, including limited liability companies, can qualify to provide fiduciary services in Illinois. They need home-state authority and reciprocal access for Illinois providers on terms the Commissioner finds are not unduly restrictive. Qualifying entities can serve in any… - Trust providers gain options and licensing: mixed, low. Illinois limited liability companies formed to carry out trusts can serve in fiduciary roles available to people or corporations. Illinois corporations and limited liability companies formed for fiduciary custody or related services can become special purpose trust companies. They need a certificat… ## Sponsors and cosponsors - Sponsor: Mark L. Walker (Democratic), Senate - Cosponsor: Adriane L. Johnson (Democratic), Senate - Cosponsor: Camille Y. Lilly (Democratic), House - Cosponsor: Christopher Belt (Democratic), Senate - Cosponsor: Cristina Castro (Democratic), Senate - Cosponsor: Edgar González, Jr. (Democratic), House - Cosponsor: Graciela Guzmán (Democratic), Senate - Cosponsor: Javier L. Cervantes (Democratic), Senate - Cosponsor: Karina Villa (Democratic), Senate - Cosponsor: Laura Ellman (Democratic), Senate - Cosponsor: Mary Edly-Allen (Democratic), Senate - Cosponsor: Michael E. Hastings (Democratic), Senate - Cosponsor: Mike Porfirio (Democratic), Senate - Cosponsor: Mike Simmons (Democratic), Senate - Cosponsor: Paul Faraci (Democratic), Senate - Cosponsor: Rachel Ventura (Democratic), Senate - Cosponsor: Robert Peters (Democratic), Senate ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2025-06-01 | Senate | House Committee Amendment No. 1 Senate Concurs | pass | 41 | 15 | | | 2025-05-31 | Senate | House Committee Amendment No. 1 Motion To Concur Recommended Do Adopt Executive; | pass | 9 | 4 | | | 2025-05-30 | House | Third Reading - Short Debate - Passed | pass | 76 | 38 | 1 | | 2025-05-28 | House | Do Pass as Amended / Short Debate Financial Institutions and Licensing Committee; | pass | 7 | 4 | | | 2025-05-27 | House | Motion to Suspend Rule 21 - Prevailed | pass | 75 | 39 | | | 2025-04-10 | Senate | Third Reading - Passed; | pass | 39 | 17 | | | 2025-04-09 | Senate | Senate Floor Amendment No. 2 Recommend Do Adopt Executive; | pass | 9 | 4 | | | 2025-04-03 | Senate | Do Pass as Amended Executive; | pass | 8 | 4 | | ## Actions (71) - 2025-08-18: Public Act . . . . . . . . . 104-0428 (Senate) - 2025-08-18: Effective Date August 18, 2025 (Senate) - 2025-08-18: Governor Approved (Senate) - 2025-06-30: Sent to the Governor (Senate) - 2025-06-01: Passed Both Houses (Senate) - 2025-06-01: Senate Concurs (Senate) - 2025-06-01: House Committee Amendment No. 1 Senate Concurs 041-015-000 (Senate) - 2025-06-01: 3/5 Vote Required (Senate) - 2025-05-31: House Committee Amendment No. 1 Motion To Concur Recommended Do Adopt Executive; 009-004-000 (Senate) - 2025-05-31: House Committee Amendment No. 1 Motion to Concur Assignments Referred to Executive (Senate) - 2025-05-31: House Committee Amendment No. 1 Motion to Concur Referred to Assignments (Senate) - 2025-05-31: House Committee Amendment No. 1 Motion to Concur Filed with Secretary Sen. Mark L. Walker (Senate) - 2025-05-30: Placed on Calendar Order of Concurrence House Amendment(s) 1 - May 30, 2025 (Senate) - 2025-05-30: Secretary's Desk - Concurrence House Amendment(s) 1 (Senate) - 2025-05-30: Third Reading - Short Debate - Passed 076-038-001 (House) - 2025-05-30: Placed on Calendar Order of 3rd Reading - Short Debate (House) - 2025-05-29: Added Alternate Co-Sponsor Rep. Camille Y. Lilly (House) - 2025-05-28: Held on Calendar Order of Second Reading - Short Debate (House) - 2025-05-28: Second Reading - Short Debate (House) - 2025-05-28: Placed on Calendar 2nd Reading - Short Debate (House) - 2025-05-28: Do Pass as Amended / Short Debate Financial Institutions and Licensing Committee; 007-004-000 (House) - 2025-05-28: House Committee Amendment No. 1 Adopted in Financial Institutions and Licensing Committee; by Voice Vote (House) - 2025-05-28: House Committee Amendment No. 1 Rules Refers to Financial Institutions and Licensing Committee (House) - 2025-05-27: Motion to Suspend Rule 21 - Prevailed 075-039-000 (House) - 2025-05-27: Motion Filed to Suspend Rule 21 Financial Institutions and Licensing Committee; Rep. Bob Morgan (House) - 2025-05-27: House Committee Amendment No. 1 Referred to Rules Committee (House) - 2025-05-27: House Committee Amendment No. 1 Filed with Clerk by Rep. Edgar González, Jr. (House) - 2025-05-23: Committee/Final Action Deadline Extended-9(b) May 31, 2025 (House) - 2025-05-23: Assigned to Financial Institutions and Licensing Committee (House) - 2025-05-09: Rule 19(a) / Re-referred to Rules Committee (House) - 2025-04-17: Assigned to Financial Institutions and Licensing Committee (House) - 2025-04-11: Referred to Rules Committee (House) - 2025-04-11: First Reading (House) - 2025-04-10: Chief House Sponsor Rep. Edgar González, Jr. (House) - 2025-04-10: Arrived in House (House) - 2025-04-10: Added as Co-Sponsor Sen. Mike Simmons (Senate) - 2025-04-10: Third Reading - Passed; 039-017-000 (Senate) - 2025-04-10: Placed on Calendar Order of 3rd Reading (Senate) - 2025-04-10: Senate Floor Amendment No. 2 Adopted; Walker (Senate) - 2025-04-10: Recalled to Second Reading (Senate) - 2025-04-10: Added as Co-Sponsor Sen. Adriane L. Johnson (Senate) - 2025-04-10: Added as Co-Sponsor Sen. Mary Edly-Allen (Senate) - 2025-04-09: Senate Floor Amendment No. 2 Recommend Do Adopt Executive; 009-004-000 (Senate) - 2025-04-09: Added as Co-Sponsor Sen. Robert Peters (Senate) - 2025-04-09: Added as Co-Sponsor Sen. Michael E. Hastings (Senate) - 2025-04-09: Sponsor Removed Sen. Michael W. Halpin (Senate) - 2025-04-09: Added as Co-Sponsor Sen. Javier L. Cervantes (Senate) - 2025-04-09: Added as Co-Sponsor Sen. Christopher Belt (Senate) - 2025-04-09: Added as Co-Sponsor Sen. Paul Faraci (Senate) - 2025-04-08: Placed on Calendar Order of 3rd Reading April 9, 2025 (Senate) - 2025-04-08: Second Reading (Senate) - 2025-04-08: Senate Floor Amendment No. 2 Assignments Refers to Executive (Senate) - 2025-04-04: Senate Floor Amendment No. 2 Referred to Assignments (Senate) - 2025-04-04: Senate Floor Amendment No. 2 Filed with Secretary by Sen. Mark L. Walker (Senate) - 2025-04-04: Added as Chief Co-Sponsor Sen. Laura Ellman (Senate) - 2025-04-04: Added as Chief Co-Sponsor Sen. Cristina Castro (Senate) - 2025-04-04: Added as Chief Co-Sponsor Sen. Graciela Guzmán (Senate) - 2025-04-03: Placed on Calendar Order of 2nd Reading April 4, 2025 (Senate) - 2025-04-03: Do Pass as Amended Executive; 008-004-000 (Senate) - 2025-04-03: Senate Committee Amendment No. 1 Adopted (Senate) - 2025-03-21: Rule 2-10 Committee Deadline Established As April 4, 2025 (Senate) - 2025-03-19: Added as Co-Sponsor Sen. Mike Porfirio (Senate) - 2025-03-19: Added as Co-Sponsor Sen. Rachel Ventura (Senate) - 2025-03-18: Added as Co-Sponsor Sen. Karina Villa (Senate) - 2025-03-18: Senate Committee Amendment No. 1 Assignments Refers to Executive (Senate) - 2025-03-12: Senate Committee Amendment No. 1 Referred to Assignments (Senate) - 2025-03-12: Senate Committee Amendment No. 1 Filed with Secretary by Sen. Mark L. Walker (Senate) - 2025-02-18: Assigned to Executive (Senate) - 2025-02-06: Referred to Assignments (Senate) - 2025-02-06: First Reading (Senate) - 2025-02-06: Filed with Secretary by Sen. Mark L. Walker (Senate) ## Bill text - Engrossed: [PDF](https://www.ilga.gov/documents/legislation/104/SB/PDF/10400SB1797eng.pdf) - Enrolled: [PDF](https://www.ilga.gov/documents/legislation/104/SB/PDF/10400SB1797enr.pdf) - House Amendment 1: [PDF](https://www.ilga.gov/documents/legislation/104/SB/PDF/10400SB1797ham001.pdf) - Introduced: [PDF](https://www.ilga.gov/documents/legislation/104/SB/PDF/10400SB1797.pdf) - Senate Amendment 1: [PDF](https://www.ilga.gov/documents/legislation/104/SB/PDF/10400SB1797sam001.pdf) - Senate Amendment 2: [PDF](https://www.ilga.gov/documents/legislation/104/SB/PDF/10400SB1797sam002.pdf) ## Related bills - HB5198: AFFORDABLE HOUSING-CILAS (passed house) - SB1937: PENSION CODE-VARIOUS (passed senate) - HB2563: CONDO-RESERVE STUDY (in committee) - HB4701: LIMITATIONS FACILITY FEES ACT (in committee) - SB3008: DHS-ABLE PROGRAM INFO MATERIAL (passed senate) - SB3484: VEH CD-PLATES-REGISTRATION (signed) ## Sources - [Engrossed (PDF)](https://www.ilga.gov/documents/legislation/104/SB/PDF/10400SB1797eng.pdf) - [Enrolled (PDF)](https://www.ilga.gov/documents/legislation/104/SB/PDF/10400SB1797enr.pdf) - [House Amendment 1 (PDF)](https://www.ilga.gov/documents/legislation/104/SB/PDF/10400SB1797ham001.pdf) - [Introduced (PDF)](https://www.ilga.gov/documents/legislation/104/SB/PDF/10400SB1797.pdf) - [Senate Amendment 1 (PDF)](https://www.ilga.gov/documents/legislation/104/SB/PDF/10400SB1797sam001.pdf) - [Senate Amendment 2 (PDF)](https://www.ilga.gov/documents/legislation/104/SB/PDF/10400SB1797sam002.pdf) ## Related - [HB5198: AFFORDABLE HOUSING-CILAS](https://policyrisk.com/state-bill/IL-HB5198-2025-2026) - [SB1937: PENSION CODE-VARIOUS](https://policyrisk.com/state-bill/IL-SB1937-2025-2026) - [HB2563: CONDO-RESERVE STUDY](https://policyrisk.com/state-bill/IL-HB2563-2025-2026) - [HB4701: LIMITATIONS FACILITY FEES ACT](https://policyrisk.com/state-bill/IL-HB4701-2025-2026) - [SB3008: DHS-ABLE PROGRAM INFO MATERIAL](https://policyrisk.com/state-bill/IL-SB3008-2025-2026) - [SB3484: VEH CD-PLATES-REGISTRATION](https://policyrisk.com/state-bill/IL-SB3484-2025-2026) - [Illinois bills](https://policyrisk.com/states/illinois/bills) - [Illinois state hub](https://policyrisk.com/states/illinois) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/IL-SB1797-2025-2026 (as of 2026-11-01).