Digital Financial Asset Banking Act.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Judiciary
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill, the Digital Financial Asset Banking Act, establishes regulations for digital financial assets in California. It prohibits individuals from engaging in digital financial asset business activities without proper licensing or meeting specific conditions. The bill defines key terms like ‘digital financial asset’ and ‘digital financial asset business activity,’ and it primarily focuses on regulating banks and credit unions to ensure they provide digital asset custody, staking, and transaction services securely and transparently. It also includes provisions for audits, disclosures to customers, and enforcement actions by the Department of Financial Protection and Innovation.
Key provisions
- Prohibits engaging in digital financial asset business activity without proper licensing or meeting specific conditions.
- Defines key terms such as ‘digital financial asset,’ ‘digital financial asset business activity,’ ‘digital asset custody services,’ and ‘digital asset transaction services.’
- Requires banks and credit unions to obtain approval to provide digital asset custody, staking, and transaction services.
- Mandates annual audits of custodial activities and holdings by financial institutions.
- Requires financial institutions to disclose certain information to customers regarding digital asset services.
- Establishes a framework for subcustodian oversight and compliance.
- Creates a new crime of perjury and imposes a state-mandated local program.
- Authorizes the Department of Financial Protection and Innovation to enforce the law with administrative and civil remedies.
Bill text
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Sponsors
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1 on record
Primary sponsor
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