Illinois § 20-5

§ 20-5.

Surety bond; capital and liquidity requirements. (a)(1)(A) A registrant shall maintain a surety bond or trust account in United States dollars in a form and amount as determined by the Department for the protection of residents that engage in digital asset business activity with the registrant. (B) If a registrant maintains a trust account pursuant to this Section, that trust account shall be maintained with a qualified custodian. (2) Security deposited under this Section shall be for the benefit of a claim against the registrant on account of the registrant's digital asset business activity with or on behalf of a resident. (3) Security deposited under this Section shall cover claims for the period the Department specifies by rule and for an additional period the Department specifies after the registrant ceases to engage in digital asset business activity with or on behalf of a resident. (4) The Department may require the registrant to increase the amount of security deposited under this Section, and the registrant shall deposit the additional security not later than 15 days after the registrant receives notice in a record of the required increase. (5) The Department may permit a registrant to substitute or deposit an alternate form of security satisfactory to the Department if the registrant at all times complies with this Section. (b) In addition to the security required under subsection (a), a registrant shall maintain at all times capital and liquidity, each in an amount and form as the Department determines is sufficient to ensure the financial integrity of the registrant and its ongoing operations based on an assessment of the specific risks applicable to the registrant. In determining the minimum amount of capital and liquidity that shall be maintained by a registrant, the Department may consider factors, including, but not limited to, all of the following: (1) The composition of the registrant's total assets, including the position, size, quality, liquidity, risk exposure, and price volatility of each type of asset. (2) The composition of the registrant's total liabilities, including the size and repayment timing of each type of liability. (3) The actual and expected volume of the registrant's digital asset business activity. (4) The amount of leverage employed by the registrant. (5) The liquidity position of the registrant. (6) The financial protection that the registrant provides pursuant to subsection (a). (7) The types of entities to be serviced by the registrant. (8) The types of products or services to be offered by the registrant. (9) Arrangements adopted by the registrant for the protection of its customers in the event of the registrant's insolvency. (c) A registrant shall hold liquidity required to be maintained in accordance with this Section in the form of cash or high-quality liquid assets, as defined by the Department and in proportions determined by the Department. (d) The Department may require a registrant to increase the capital or liquidity required under this Section. A registrant shall submit evidence satisfactory to the Department that it has additional capital or liquidity required pursuant to this subsection not later than 15 days after the registrant receives notice in a record of the required increase. (Source: P.A. 104-428, eff. 8-18-25.)