Substitute House Bill No. 6990, now enacted as Public Act No. 25-41, introduces comprehensive regulations for the seizure and forfeiture of virtual currency and virtual currency wallets, effective July 1, 2026. The bill expands the definition of "property" to explicitly include these digital assets, allowing for their forfeiture in connection with specific criminal violations. It mandates that the Chief State's Attorney or designated attorneys must petition the court for forfeiture within ninety days of seizure, with the state required to prove its case by clear and convincing evidence. Importantly, the legislation protects owners or lienholders who were unaware of the criminal use of their property from forfeiture and clarifies that property used for legitimate attorney's fees cannot be seized.

Additionally, the bill amends existing statutes to redefine "contraband" and "stolen property" to include virtual currency, while also updating the definition of "Equivalent property" to encompass virtual currency and wallets, reflecting the growing significance of digital assets. The previous mention of "airline tickets" has been deleted from the definition of "Equivalent property," indicating a shift towards modern financial instruments. The bill also broadens the definition of "Exchange" to cover various financial activities, ensuring that the legal framework remains relevant in the context of evolving financial transactions. Overall, the legislation aims to streamline the forfeiture process while safeguarding the rights of property owners.

Statutes affected:
Raised Bill: 54-36h, 54-36o
BA Joint Favorable: 54-36h, 54-36o
File No. 270: 54-36h, 54-36o
JUD Joint Favorable: 54-36h, 54-36o
File No. 907: 54-36h, 54-36o, 54-36p
Public Act No. 25-41: 54-36h, 54-36o, 54-36p