Plain English Breakdown
The official text contains conflicting language regarding whether the Controller must 'require' or only 'authorize' a custodian appointment; the summary reflects that an appointment is needed but does not resolve this conflict.
Rules for Digital Money in California
This law sets rules for businesses using digital financial assets starting July 1, 2026, allows people to accept them as payment, and explains how unclaimed digital assets are handled.
What This Bill Does
- Requires most people doing business with digital financial assets to get a license from the Department of Financial Protection and Innovation on or after July 1, 2026, unless they are exempt.
- Allows individuals and businesses in California to accept digital financial assets as payment for goods or services.
- States that using digital financial assets is legal when used as payment between private parties.
- Sets a rule that unclaimed digital assets go to the state after three years if communication with the owner fails or they stop showing interest.
- Requires owners of lost accounts who hold a private key for escheated assets to transfer those assets to a custodian chosen by the State Controller.
Who It Names or Affects
- Businesses and individuals engaging in digital financial asset business activities
- Companies that manage or hold digital financial asset business activities in California
- Owners of unclaimed digital financial accounts
- The Department of Financial Protection and Innovation
Terms To Know
- Digital financial asset
- A type of value stored digitally that can be used for transactions.
- Escheats to the state
- When property is turned over to the government because the owner cannot be found or has not shown interest after a set time.
- Private key
- A secret code that proves ownership and allows access to digital financial assets in an account.
Limits and Unknowns
- The law does not list every specific type of business activity that is exempt from the license requirement.
- The exact date when this bill becomes effective is not listed, though rules start on July 1, 2026.