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    SB-97
    Consumer Protection

    Digital financial assets: stablecoins.

    Engrossed
    CA
    ∙
    2025-2026 Regular Session
    0
    0
    Track
    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

    View 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

    View 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