CaliforniaDigital Financial Asset Banking Act.
What it does
The Digital Financial Assets Law, on or after July 1, 2026, prohibits a person from engaging in digital financial asset business activity or holding itself out as being able to engage in digital financial asset business activity, with or on behalf of a resident unless any of specified conditions is true. The law defines "digital financial asset" to mean a digital representation of value that is used as a medium of exchange, unit of account, or store of value, and that is not legal tender, whether or not denominated in legal tender and defines "digital financial asset business activity" to mean, among other similar things, exchanging, transferring, or storing a digital financial asset or engaging in digital financial asset administration, whether directly or through an agreement with a digital financial asset control services vendor.
More detail
This bill, the Digital Financial Asset Banking Act, would generally regulate a bank or a credit union under the examination authority of the Department of Financial Protection and Innovation with respect to its provision of digital asset custody services, staking services, and digital asset transaction services, as those terms are defined, including by requiring certain disclosures to costumers and requiring certain financial safety measures. The bill would require a financial institution engaged in digital financial asset custody services to conduct an annual audit of its custodial activities and holdings that is either an independent audit or a review by the financial institution's board of directors for accuracy and signed be each board member under penalty of perjury. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program.
This bill would authorize the department to enforce its provisions with administrative and civil remedies, as specified.
The Corporate Securities Law of 1968 generally regulates the offering and selling in this state of a security, as defined.
This bill would define "security" to not include a staking reward, as defined.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jun 29In committee: Set, first hearing. Hearing canceled at the request of author.Latest
- Jun 24Referred to Coms. on JUD. and B. & F.I.Minor
- Jun 18In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Vote recorded AB 2285 Valencia Assembly Third Reading. Result: pass.Lower
- Jun 18Read third time. Passed. Ordered to the Senate. (Ayes 49. Noes 1. Page 5760.)Passed Assembly
- Jun 11Read second time. Ordered to third reading.Minor
- Jun 10Read second time and amended. Ordered returned to second reading.Major
- Jun 9From committee: Amend, and do pass as amended. (Ayes 7. Noes 1.) (June 8).Major
- Jun 8
- Vote recorded Do pass as amended. Result: pass.Lower
- Jun 4Re-referred to Com. on B. & F.Minor
- Jun 3From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.Major
- May 28In committee: Hearing postponed by committee.
- May 26Joint Rule 62(a), file notice suspended. (Page 5343.)
- May 26Re-referred to Com. on B. & F. pursuant to Assembly Rule 77.2.Minor
- May 22Read third time and amended. Ordered to third reading. (Page 5273.)Major
- May 18Read second time. Ordered to third reading.Minor
- May 14From committee: Do pass. (Ayes 15. Noes 0.) (May 14).Minor
- Vote recorded Do pass. Result: pass.Lower
- May 6In committee: Set, first hearing. Referred to APPR. suspense file.Minor
- Apr 22From committee: Do pass and re-refer to Com. on APPR. (Ayes 15. Noes 0.) (April 21). Re-referred to Com. on APPR.Minor
- Apr 21From committee: Do pass and re-refer to Com. on P. & C.P. (Ayes 9. Noes 0.) (April 20). Re-referred to Com. on P. & C.P.Minor
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Apr 20Joint Rule 62(a), file notice suspended. (Ayes 54. Noes 16. Page 4716.)
- Vote recorded Do pass and be re-referred to the Committee on [Privacy and Consumer Protection]. Result: pass.Lower
- Apr 16(Pending re-refer to Com. on P. & C.P.)Minor
- Apr 16Assembly Rule 56 suspended. (Page 4663.)
- Mar 17Re-referred to Com. on B. & F.Minor
- Mar 16From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.Major
- Mar 16Referred to Coms. on B. & F. and P. & C.P.Minor
- Feb 20From printer. May be heard in committee March 22.
- Feb 19Read first time. To print.Introduced