Today, the Chamber sent letters to Illinois State lawmakers urging them to oppose H.B. 3479/S.B. 2233, also known as the Digital Asset Regulation Act, or DARA. and other corresponding legislative titles. These proposals would essentially eliminate the digital asset and blockchain industry in Illinois and put the state at an economic and technological disadvantage. 

As noted in our letter, we commend the Illinois legislature for taking the first step to create a much-needed regulatory framework for digital assets, but we urge them to collaborate with industry to limit the negative impact this bill will have on business operations in the state. The legislation contains several deleterious issues, including but not limited to: 

• The definition of “Digital asset business activity” would implement the same licensing requirements on businesses of all sizes, from individuals to start-ups and public companies. 
• Decentralized protocols or communities would be unable to satisfy licensing compliance requirements and thus, be unable to operate in Illinois. 
• The proposals give the Illinois Department of Financial and Professional Regulation (IDFPR) carte blanche to revoke or reject licenses without limitation or explanation. 
• The proposals impose IDFPR oversight on third-party affiliates of digital asset businesses making it overly burdensome to obtain essential services. 

We hope that Illinois State lawmakers will work collaboratively with the Chamber of Digital Commerce, its Illinois State members, and the broader digital assets and blockchain industry to foster a workable and effective regulatory framework that safeguards consumers from the bad actors while providing an environment that allows Illinois’ innovative entrepreneurs to flourish and grow. 

The Chamber will engage in individual states as needed to ensure that bad policy does not impact digital asset and blockchain businesses ability to operate anywhere in the United States.