HB3968 Summary

• Amends the Illinois Banking Act to add "special purpose trust company" as a defined term referring to entities under the new Article IIA of the Corporate Fiduciary Act.

• Creates Article IIA of the Corporate Fiduciary Act establishing a regulatory framework for special purpose trust companies that provide fiduciary custodial services and related services as specified by Department rules.

• Requires special purpose trust companies to obtain a certificate of authority from the Secretary of Financial and Professional Regulation before engaging in business, with violations constituting a Class A misdemeanor.

• Permits special purpose trust companies to merge with or convert to state banks using the same procedures as regular trust companies, and allows existing trust companies holding certificates under Article II to provide special purpose trust company services without additional authorization.

• Amends the Blockchain Business Development Act to authorize the Department of Financial and Professional Regulation to adopt rules regarding custody of digital assets including digital consumer assets, digital securities, and virtual currency.