AB-236
Consumer Protection

Digital financial asset businesses: regulatory fees.

Introduced
CA
2025-2026 Regular Session
1
0
Track

Key Takeaways

  • Caps the application fee for digital financial asset business licenses at $5,000 to make licensing more accessible for cryptocurrency and digital asset companies.
  • Requires digital asset businesses to obtain a license from the Department of Financial Protection and Innovation before operating in California after July 1, 2026.
  • Maintains comprehensive application requirements including business history, criminal records, financial statements, and operational plans.

Summary

Assembly Member Chen's proposal to cap digital financial asset business license application fees at $5,000 modifies California's existing regulatory framework for cryptocurrency and digital asset companies. The measure amends the Digital Financial Assets Law, which requires businesses engaging in digital asset activities to obtain licensing from the Department of Financial Protection and Innovation (DFPI) by July 2026.

The bill maintains the comprehensive application requirements that prospective licensees must meet, including detailed business plans, criminal history disclosures, financial statements, and operational documentation. However, it constrains DFPI's current authority to set application fees based on review costs by establishing a fixed maximum amount. The department retains the ability to charge applicants for additional investigation expenses beyond the initial application review.

This change affects entities planning to conduct digital financial asset business activities in California, including cryptocurrency exchanges, digital wallet providers, and other virtual currency services. The existing law's core provisions remain in place, requiring companies to demonstrate sound financial condition, business competence, and compliance capabilities through the application process while ensuring submitted information remains protected under state confidentiality rules.

Key Dates

Next Step
Referred to the Assembly Standing Committee on Appropriations
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Appropriations
Hearing has not been scheduled yet
Assembly Banking And Finance Hearing
Assembly Committee
Assembly Banking And Finance Hearing
Assembly Banking And Finance Hearing
Read first time. To print.
Assembly Floor
Read first time. To print.
Read first time. To print.

Contacts

Profile
Phillip ChenR
Assemblymember
Bill Author
Not Contacted
Not Contacted
Profile
Joaquin ArambulaD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Buffy WicksD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Lisa CalderonD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Mike FongD
Assemblymember
Committee Member
Not Contacted
Not Contacted
0 of 16 row(s) selected.
Page 1 of 4
Select All Legislators
Profile
Phillip ChenR
Assemblymember
Bill Author
Profile
Joaquin ArambulaD
Assemblymember
Committee Member
Profile
Buffy WicksD
Assemblymember
Committee Member
Profile
Lisa CalderonD
Assemblymember
Committee Member
Profile
Mike FongD
Assemblymember
Committee Member
Profile
Diane DixonR
Assemblymember
Committee Member
Profile
Gregg HartD
Assemblymember
Committee Member
Profile
Blanca PachecoD
Assemblymember
Committee Member
Profile
Gail PellerinD
Assemblymember
Committee Member
Profile
Kate SanchezR
Assemblymember
Committee Member
Profile
Tri TaR
Assemblymember
Committee Member
Profile
Jessica CalozaD
Assemblymember
Committee Member
Profile
Mark GonzalezD
Assemblymember
Committee Member
Profile
Heather HadwickR
Assemblymember
Committee Member
Profile
Jose SolacheD
Assemblymember
Committee Member
Profile
Sade ElhawaryD
Assemblymember
Committee Member

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Phillip Chen
Phillip ChenR
California State Assembly Member
10% progression
Bill has been formally introduced and read for the first time in its house of origin (1/13/2025)

Latest Voting History

March 3, 2025
PASS
Assembly Committee
Assembly Banking And Finance Hearing
AyesNoesNVRTotalResult
8019PASS

Key Takeaways

  • Caps the application fee for digital financial asset business licenses at $5,000 to make licensing more accessible for cryptocurrency and digital asset companies.
  • Requires digital asset businesses to obtain a license from the Department of Financial Protection and Innovation before operating in California after July 1, 2026.
  • Maintains comprehensive application requirements including business history, criminal records, financial statements, and operational plans.

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Phillip Chen
Phillip ChenR
California State Assembly Member

Summary

Assembly Member Chen's proposal to cap digital financial asset business license application fees at $5,000 modifies California's existing regulatory framework for cryptocurrency and digital asset companies. The measure amends the Digital Financial Assets Law, which requires businesses engaging in digital asset activities to obtain licensing from the Department of Financial Protection and Innovation (DFPI) by July 2026.

The bill maintains the comprehensive application requirements that prospective licensees must meet, including detailed business plans, criminal history disclosures, financial statements, and operational documentation. However, it constrains DFPI's current authority to set application fees based on review costs by establishing a fixed maximum amount. The department retains the ability to charge applicants for additional investigation expenses beyond the initial application review.

This change affects entities planning to conduct digital financial asset business activities in California, including cryptocurrency exchanges, digital wallet providers, and other virtual currency services. The existing law's core provisions remain in place, requiring companies to demonstrate sound financial condition, business competence, and compliance capabilities through the application process while ensuring submitted information remains protected under state confidentiality rules.

10% progression
Bill has been formally introduced and read for the first time in its house of origin (1/13/2025)

Key Dates

Next Step
Referred to the Assembly Standing Committee on Appropriations
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Appropriations
Hearing has not been scheduled yet
Assembly Banking And Finance Hearing
Assembly Committee
Assembly Banking And Finance Hearing
Assembly Banking And Finance Hearing
Read first time. To print.
Assembly Floor
Read first time. To print.
Read first time. To print.

Latest Voting History

March 3, 2025
PASS
Assembly Committee
Assembly Banking And Finance Hearing
AyesNoesNVRTotalResult
8019PASS

Contacts

Profile
Phillip ChenR
Assemblymember
Bill Author
Not Contacted
Not Contacted
Profile
Joaquin ArambulaD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Buffy WicksD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Lisa CalderonD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Mike FongD
Assemblymember
Committee Member
Not Contacted
Not Contacted
0 of 16 row(s) selected.
Page 1 of 4
Select All Legislators
Profile
Phillip ChenR
Assemblymember
Bill Author
Profile
Joaquin ArambulaD
Assemblymember
Committee Member
Profile
Buffy WicksD
Assemblymember
Committee Member
Profile
Lisa CalderonD
Assemblymember
Committee Member
Profile
Mike FongD
Assemblymember
Committee Member
Profile
Diane DixonR
Assemblymember
Committee Member
Profile
Gregg HartD
Assemblymember
Committee Member
Profile
Blanca PachecoD
Assemblymember
Committee Member
Profile
Gail PellerinD
Assemblymember
Committee Member
Profile
Kate SanchezR
Assemblymember
Committee Member
Profile
Tri TaR
Assemblymember
Committee Member
Profile
Jessica CalozaD
Assemblymember
Committee Member
Profile
Mark GonzalezD
Assemblymember
Committee Member
Profile
Heather HadwickR
Assemblymember
Committee Member
Profile
Jose SolacheD
Assemblymember
Committee Member
Profile
Sade ElhawaryD
Assemblymember
Committee Member