Synopsis As Introduced Creates the Uniform Money Transmission Modernization Act. Provides that the provisions supersede the Transmitters of Money Act. Sets forth provisions concerning money transmission licenses; acquisition of control; reporting and records; authorized delegates; timely transmission, refunds, and disclosures; prudential standards; and enforcement. Creates the Digital Assets Regulation Act. Provides that the Department of Financial and Professional Regulation shall regulate digital asset business activity in the State. Sets forth provisions concerning customer protections; compliance; licensure; supervision; general restrictions and prohibitions; confidentiality; and rulemaking authority. Amends the Corporate Fiduciary Act to create the Special Purpose Trust Company Authority and Organization Article. Makes conforming changes in the Freedom of Information Act, the Illinois Banking Act, and the Consumer Fraud and Deceptive Business Practices Act. Provides that the Transmitters of Money Act is repealed on January 1, 2025. Makes other changes. Effective immediately, except that the changes to the Transmitters of Money Act take effect January 1, 2025.
House Floor Amendment No. 1 Makes a change in a provision concerning a letter of credit. Sets forth provisions concerning orders to cease and desist and civil penalties. Changes the definition of "confidential supervisory information" and "digital asset business activity". Changes references to the Financial Protection Fund to the Digital Assets Regulation Fund. Sets forth provisions concerning a transition period for covered persons and exchanges. Removes language providing that a toll-free telephone number shall be operative 24 hours per day, Monday through Sunday. Makes other changes.
Provides that the provisions do not apply to a credit union (rather than an insured depository credit union) organized under specified laws with member share accounts (rather than deposits) insured by an insurer approved by the credit union's primary financial regulatory agency (rather than primary regulator). Makes changes in the definitions of "digital asset", "digital asset administration", "exchange", "fiat currency", and "transfer". Defines "prepaid card". Provides that the provisions do not apply to the exchange, transfer, or storage of a digital asset or to digital asset administration to the extent that specified law governs the activity as a contract of a sale of a commodity for future delivery or a swap. Provides that the provisions shall be construed in a manner consistent with affording the greatest protection to residents, and shall not be construed to exempt an activity solely because a financial regulatory agency has anti-fraud and anti-manipulation enforcement authority over the activity. Provides that the provisions do not apply to a credit union with member share accounts insured by an insurer approved by the credit union's primary financial regulatory agency. Provides that the Department of Financial and Professional Regulation may by rule or order clarify whether an activity is governed by specified provisions. Provides that notwithstanding any other provision, the Department, by rule or order, may conditionally or unconditionally exempt any person, digital asset, or transaction, or any class or classes of persons, digital assets, or transactions, from any provision or any rule thereunder, to the extent that the exemption is necessary or appropriate in the public interest and is consistent with the protection of residents. Provides that the Digital Assets Regulation Fund is created as a special fund in the State Treasury (rather than the Fund is only created). Removes provisions concerning the TOMA Consumer Protection Fund.