California2026Active
AB-2285
Digital Financial Asset Banking Act
Last scannedSep 20, 2026, 1:15 AM
In one sentence
This law sets rules for banks and credit unions that offer digital asset custody, staking, or transaction services by requiring customer disclosures and financial safety measures.
What it does
- Regulates how banks and credit unions provide digital asset custody, staking, and transaction services under the Department of Financial Protection and Innovation's authority.
- Requires these institutions to give customers specific information about their digital asset services.
- Mandates that financial institutions offering custodial services conduct an annual audit or a board review signed by each member under penalty of perjury.
- Defines 'staking reward' so it is not treated as a security under the Corporate Securities Law of 1968.
- Authorizes the Department to enforce these rules using administrative and civil remedies.
Who it affects
- Banks regulated by the Department of Financial Protection and Innovation
- Credit unions regulated by the Department of Financial Protection and Innovation
Limits and unknowns
- The official text states no reimbursement is required for local costs but does not list all specific reasons why.
- The exact details of 'financial safety measures' and customer disclosures are described generally rather than listed in detail.
Plain language
Terms to know
- Digital financial asset
- A digital representation of value used as a medium of exchange, unit of account, or store of value that is not legal tender.
- Staking reward
- A payment defined by the bill that is excluded from being classified as a security under state law.
Official record
Sources
Official summary
Digital Financial Asset Banking Act.
Official activity
Bill history
- Senate - Judiciary