Illinois Rep. Welch’s digital assets consumer protection bill passes House and Senate

Passed bill authored by State Rep. Emanuel “Chris” Welch aims to regulate digital asset businesses in Illinois, establishing consumer protections and compliance standards while granting enforcement authority to the Department of Financial and Professional Regulation, according to the Illinois General Assembly.

In the House, 73 Democrats and one Republican voted in favor of the bill, while 37 Republicans opposed it.

Meanwhile, in the Senate, 37 Democrats and 15 Republicans voted in favor of the bill, while four Republicans voted against it.

Welch introduced the bill in the Illinois House on Jan. 9, 2025 during the 104th session.

The legislation, known as HB0742, was passed on June 1, 2025 during the general assembly session 104.

According to the Illinois General Assembly site, the legislature summarized the bill’s official text as follows: “Amends the Illinois Banking Act. Makes a technical change in a Section concerning the short title.”

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill establishes the Digital Assets and Consumer Protection Act, regulating digital asset business activities in Illinois. It details the definitions, requirements, and exceptions applicable to businesses engaging in digital assets, mandating registration with the Department of Financial and Professional Regulation. The bill includes customer protections such as mandatory disclosures on fees, insurance, and transaction details. It requires digital asset businesses to maintain a certain level of capital and liquidity and adhere to stringent compliance policies regarding cybersecurity, fraud prevention, and anti-money laundering. The Department is granted enforcement authority, including the ability to levy penalties and issue subpoenas. The bill provides a transition period, allowing existing businesses until July 1, 2027, to comply with the new rules and regulations. It also amends several existing acts to align them with the new framework for digital asset regulation. The act takes effect upon becoming law, with specific provisions effective at later dates.

The bill was sponsored by Rep. Margaret Croke (Democrat-12th District), Sen. Adriane Johnson (Democrat-30th District), and Rep. Amy Briel (Democrat-76th District), along with 46 other sponsors.

Bills in Illinois follow a multi-step legislative process, beginning with introduction in either the House or Senate, followed by committee review, floor debates, and votes in both chambers before reaching the governor for approval or veto. The General Assembly operates on a biennial schedule, and while typically thousands of bills are introduced each session, only a fraction successfully pass through the process to become law.

You can read more about bills and other measures here.

Welck graduated from Northwestern University in 1993 with a BS and again in 1997 from The John Marshall Law School with a JD.

Welck, a Democrat, was elected to the Illinois State House in 2013 to represent the state’s 7th House District, replacing previous state representative Cory Foster.

While the final vote determined the bill’s passage, lawmakers in both chambers held additional votes related to a concurrence and a motion. These earlier votes are included below for context.