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STATE OF IOWA
KIM REYNOLDS
GOVERNOR
May 06, 2026
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol
Des Moines, Iowa 50319
Dear Mr. Secretary,
I hereby transmit:
Senate File 2296, an Act relating to digital financial kiosks, modifying civil penalties, and
including effective date and applicability provisions.
The above Senate File is hereby approved on this date.
cc: Secretary of the Senate
Clerk of the House
STATE CAPITOL DES MOINES, IOWA 50319 515.281.5211 WWW.GOVERNOR.IOWA.GOV
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Senate File 2296
AN ACT
RELATING TO DIGITAL FINANCIAL KIOSKS, MODIFYING CIVIL
PENALTIES, AND INCLUDING EFFECTIVE DATE AND APPLICABILITY
PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 533C.1004, subsection 1, paragraph a,
subparagraph (2), Code 2026, is amended to read as follows:
(2) The difference between the e u-rrcnt market price of a
digital- financial asset on a licensed digital financial asset
exchang e prevailing market value of a digital financial asset
at the time of a transaction and the price of the digital
financial asset charged to a consumer.
Sec. 2. Section 533C.1004, subsection 1, paragraphs c and d,
Code 2026, are amended to read as follows:
c. ( 1 ) "Digital financial asset" means a virtual digital
representation of value er— rights that can b e - transferred,
stor e d ,— er — t r-ad e d electronically and us e d — for payment or
inv e stment purpos es is used as a medium of exchange, unit of
account, or store of value, and is not money, whether or not
denominated in money .
(2) "Digital financial asset" does not include any of the
following ;
(a) A transaction in which a merchant grants, as part of an
affinity or rewards program, value that cannot be taken from
or exchanged with the merchant for money, bank credit, or a
digital financial asset.
Senate File 2296, p. 2
(b) A digital representation of value issued by or on behalf
of a publisher and used solely within an online game, game
platform, or family of games sold by the same publisher or
offered on the same game platform.
d. "Digital financial asset transaction kiosk" means an
electronic terminal acting a s a mechanical ag e nt- of an— operator
to e nabl e th e op e rator to foo-i-litate th e e xchange of a- digital
f-ioonc-ial ass e t for mon e y, bank cr e dit , or-oth e r d-i-gital
financial asset » including but not- limited to any- of th e
following ;
■fi-) — By conn e ct-i-ng directly to a separate licensed digital
f-inancial as se t e xchang e that perform s th e digital financ-ia-1
asset transaction.
— By drawing upon a digital financial -asset in th e
possession of ■ th e op e rator that enables a digital financial
asset kiosk operator to facilitate the exchange of digital
financial assets for money, bank credit, or other digital
financial assets .
Sec. 3. Section 533C.1004, subsection 1, paragraph f, Code
2026, is amended by striking the paragraph.
Sec. 4. Section 533C.1004, Code 2026, is amended by adding
the following new subsection:
NEW SUBSECTION . 1A. License required. Any digital
financial asset kiosk operator who owns, operates, solicits,
markets, advertises, or facilitates a digital financial asset
kiosk in this state shall be deemed to be engaged in the
business of money transmission and must obtain a license under
section 533C.301.
Sec. 5. Section 533C.1004, subsection 3, paragraph b, Code
2026, is amended to read as follows:
b. Fifteen percent of the United States currency equivalent
of the digital financial assets involved in the digital
financial asset transaction according to the p tt b l- ic quoted
mark e t-pric e of the digital financial asset on a licens e d
digital financial a s s e t e xchang e prevailing market value of
such digital financial asset at the date and time the consumer
initiates the digital financial asset transaction.
Sec. 6. Section 533C.1004, subsection 5, paragraph e, Code
2026, is amended to read as follows:
Senate File 2296, p. 3
e. ( 1 ) The dollar amount of all charges collected by
the operator in relation to the digital financial asset
transaction .
-(-2-) — The — l egal— nam e of — the — lic e nsed digital — f-i-nancial ass e t
exchange the -op e rator used— bo-calculate th e charges describ e d
in s ub s ection 1, paragraph "a", — subparagraph — ( 2 ) .
Sec. 7. Section 533C.1004, subsection 6, Code 2026, is
amended to read as follows:
6. Required report. An operator shall provide a list to
th e div-lsion of banking of the s treet addr e ss locations- of all
digital financial ass e t transaction kiosks that the op e rator
owns, op e rat es , or manag e s in thi s stat e report to the division
of banking the location of each digital financial asset
transaction kiosk that the operator owns, operates, or manages
within this state as an authorized delegate pursuant to section
533C . 603 . An operator shall provide the division with updates
to the list within thirty calendar days of any change to the
list. The division shall make each operator's list available
to the public via the division's internet site.
Sec. 8. Section 533C.1004, subsection 7 , paragraph a, Code
2026, is amended by striking the paragraph.
Sec. 9. Section 533C.1004, subsection 10, paragraphs a and
b, Code 2026, are amended to read as follows:
a. If the attorn e y gen e ral has r easonab-l-e belief that an
op e- r-ator is in violation of— bb-i -s- section, — the attorney g e n e ral
has th e sol e authority- to bring civil action to provide for all
of— th e following:
— En-join- furth e r violations by- the op e rator.
-f-2^ - Enforc e complianc e with this section.
-f-3-) - C-i-v-i-1 penalties in an amount not mor e than t e n thousand
dollars for e ach— v-i-olat ion of this s e ction.
-f-4-) — Other rem e di e s p e rmi-t-b e d under law A violation of this
section is an unlawful practice under section 714.16 .
b. Tf- Notwithstanding the civil penalty limit under section
714.16, subsection 7, if the attorney general has reasonable
belief that a person is in violation of an injunction issued
under this sub se et-lon section 714.16, subsection 2, paragraph
"t " , the attorney general has the sole authority to bring a
civil action to provide for a civil p e nalti e s penalty for
Senate File 2296, p. 4
violation of the injunction in an amount not more than one
hundred thousand dollars.
Sec. 10. Section 714.16, subsection 2, Code 2026, is amended
by adding the following new paragraph:
NEW PARAGRAPH . t. It shall be an unlawful practice for a
person to violate section 533C.1004.
Sec. 11. EFFECTIVE DATE. This Act, being deemed of
immediate importance, takes effect upon enactment.
Sec. 12. APPLICABILITY. This Act applies to civil actions
commenced on or after the effective date of this Act.
AMY SINCLAIR
President of the Senate
PAT GRASSLEYV
Speaker of ^the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 2296, Ninety-first General Assembly.
W. CHARLES SMITHSON
Secretary the Senate
Approved , 2026
I kim\^^nolds I
Governor J