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.
![]() Phillip ChenR Assemblymember | Committee Member | Not Contacted | |
![]() Tim GraysonD Senator | Bill Author | Not Contacted | |
![]() Blanca RubioD Assemblymember | Committee Member | Not Contacted | |
![]() Mike FongD Assemblymember | Committee Member | Not Contacted | |
![]() Diane DixonR Assemblymember | Committee Member | Not Contacted |
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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.
Ayes | Noes | NVR | Total | Result |
---|---|---|---|---|
38 | 0 | 2 | 40 | PASS |
![]() Phillip ChenR Assemblymember | Committee Member | Not Contacted | |
![]() Tim GraysonD Senator | Bill Author | Not Contacted | |
![]() Blanca RubioD Assemblymember | Committee Member | Not Contacted | |
![]() Mike FongD Assemblymember | Committee Member | Not Contacted | |
![]() Diane DixonR Assemblymember | Committee Member | Not Contacted |