SB-97
Consumer Protection

Digital financial assets: stablecoins.

Engrossed
CA
2025-2026 Regular Session
0
0
Track

Key Takeaways

  • Requires digital financial businesses to obtain state licenses by July 2026 to operate in California.
  • Establishes new oversight rules for stablecoins including asset quality and security requirements.
  • Mandates exchanges to implement comprehensive security and fraud prevention policies.
  • Enhances consumer protection through expanded disclosure requirements and transaction safeguards.

Summary

Senator Grayson's digital financial assets legislation refines California's regulatory framework for cryptocurrency and stablecoins, modifying licensing requirements and consumer protections under the Digital Financial Assets Law. The bill narrows the scope of regulated activities by excluding certain gaming-related digital assets while strengthening oversight of stablecoin issuers and exchanges.

The legislation establishes new criteria for stablecoin approval, requiring the Department of Financial Protection and Innovation to evaluate factors like asset quality, collateralization requirements, and security protocols. Covered exchanges must certify comprehensive risk assessments and conflict of interest disclosures before listing digital assets, while maintaining policies to execute trades promptly and favorably for residents.

For consumer protection, the bill mandates detailed disclosures about fees, insurance coverage, and transaction irrevocability. Digital asset businesses must report material data security breaches and implement robust policies for information security, fraud prevention, and anti-money laundering. The notification period for certain policy changes extends to 14 days, though changes addressing immediate security risks are exempt from this requirement.

The legislation maintains July 1, 2026, as the deadline for businesses to obtain licenses, while extending conditional licensing eligibility to entities holding New York licenses issued through January 1, 2025. Enforcement provisions include civil penalties up to $20,000 per day for non-compliance, with funding for oversight derived from pro-rata cost sharing among licensees rather than state appropriations.

Key Dates

Next Step
Referred to the Assembly Standing Committee on Banking and Finance
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Banking and Finance
Hearing has not been scheduled yet
Vote on Senate Floor
Senate Floor
Vote on Senate Floor
Senate 3rd Reading SB97 Grayson
Senate Judiciary Hearing
Senate Committee
Senate Judiciary Hearing
Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] with the recommendation: To Consent Calendar
Senate Banking and Financial Institutions Hearing
Senate Committee
Senate Banking and Financial Institutions Hearing
Do pass, but first be re-referred to the Committee on [Judiciary] with the recommendation: To Consent Calendar
Introduced
Senate Floor
Introduced
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Contacts

Profile
Phillip ChenR
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Tim GraysonD
Senator
Bill Author
Not Contacted
Not Contacted
Profile
Blanca RubioD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Mike FongD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Diane DixonR
Assemblymember
Committee Member
Not Contacted
Not Contacted
0 of 10 row(s) selected.
Page 1 of 2
Select All Legislators
Profile
Phillip ChenR
Assemblymember
Committee Member
Profile
Tim GraysonD
Senator
Bill Author
Profile
Blanca RubioD
Assemblymember
Committee Member
Profile
Mike FongD
Assemblymember
Committee Member
Profile
Diane DixonR
Assemblymember
Committee Member
Profile
Pilar SchiavoD
Assemblymember
Committee Member
Profile
Esmeralda SoriaD
Assemblymember
Committee Member
Profile
Avelino ValenciaD
Assemblymember
Committee Member
Profile
Maggy KrellD
Assemblymember
Committee Member
Profile
Michelle RodriguezD
Assemblymember
Committee Member

Get Involved

Act Now!

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

Introduced By

Tim Grayson
Tim GraysonD
California State Senator
40% progression
Bill has passed all readings in its first house and is ready to move to the other house (6/3/2025)

Latest Voting History

June 3, 2025
PASS
Senate Floor
Vote on Senate Floor
AyesNoesNVRTotalResult
380240PASS

Key Takeaways

  • Requires digital financial businesses to obtain state licenses by July 2026 to operate in California.
  • Establishes new oversight rules for stablecoins including asset quality and security requirements.
  • Mandates exchanges to implement comprehensive security and fraud prevention policies.
  • Enhances consumer protection through expanded disclosure requirements and transaction safeguards.

Get Involved

Act Now!

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

Introduced By

Tim Grayson
Tim GraysonD
California State Senator

Summary

Senator Grayson's digital financial assets legislation refines California's regulatory framework for cryptocurrency and stablecoins, modifying licensing requirements and consumer protections under the Digital Financial Assets Law. The bill narrows the scope of regulated activities by excluding certain gaming-related digital assets while strengthening oversight of stablecoin issuers and exchanges.

The legislation establishes new criteria for stablecoin approval, requiring the Department of Financial Protection and Innovation to evaluate factors like asset quality, collateralization requirements, and security protocols. Covered exchanges must certify comprehensive risk assessments and conflict of interest disclosures before listing digital assets, while maintaining policies to execute trades promptly and favorably for residents.

For consumer protection, the bill mandates detailed disclosures about fees, insurance coverage, and transaction irrevocability. Digital asset businesses must report material data security breaches and implement robust policies for information security, fraud prevention, and anti-money laundering. The notification period for certain policy changes extends to 14 days, though changes addressing immediate security risks are exempt from this requirement.

The legislation maintains July 1, 2026, as the deadline for businesses to obtain licenses, while extending conditional licensing eligibility to entities holding New York licenses issued through January 1, 2025. Enforcement provisions include civil penalties up to $20,000 per day for non-compliance, with funding for oversight derived from pro-rata cost sharing among licensees rather than state appropriations.

40% progression
Bill has passed all readings in its first house and is ready to move to the other house (6/3/2025)

Key Dates

Next Step
Referred to the Assembly Standing Committee on Banking and Finance
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Banking and Finance
Hearing has not been scheduled yet
Vote on Senate Floor
Senate Floor
Vote on Senate Floor
Senate 3rd Reading SB97 Grayson
Senate Judiciary Hearing
Senate Committee
Senate Judiciary Hearing
Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] with the recommendation: To Consent Calendar
Senate Banking and Financial Institutions Hearing
Senate Committee
Senate Banking and Financial Institutions Hearing
Do pass, but first be re-referred to the Committee on [Judiciary] with the recommendation: To Consent Calendar
Introduced
Senate Floor
Introduced
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Latest Voting History

June 3, 2025
PASS
Senate Floor
Vote on Senate Floor
AyesNoesNVRTotalResult
380240PASS

Contacts

Profile
Phillip ChenR
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Tim GraysonD
Senator
Bill Author
Not Contacted
Not Contacted
Profile
Blanca RubioD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Mike FongD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Diane DixonR
Assemblymember
Committee Member
Not Contacted
Not Contacted
0 of 10 row(s) selected.
Page 1 of 2
Select All Legislators
Profile
Phillip ChenR
Assemblymember
Committee Member
Profile
Tim GraysonD
Senator
Bill Author
Profile
Blanca RubioD
Assemblymember
Committee Member
Profile
Mike FongD
Assemblymember
Committee Member
Profile
Diane DixonR
Assemblymember
Committee Member
Profile
Pilar SchiavoD
Assemblymember
Committee Member
Profile
Esmeralda SoriaD
Assemblymember
Committee Member
Profile
Avelino ValenciaD
Assemblymember
Committee Member
Profile
Maggy KrellD
Assemblymember
Committee Member
Profile
Michelle RodriguezD
Assemblymember
Committee Member