In February, I wrote that Assembly Member Timothy S. Grayson
was taking another run at enacting a Digital Financial Asset Law.
His bill, AB 39, has steadily progressed and is now
pending in the Senate. According to the bill's digest, the bill
will "on and after January 1, 2025, prohibit a person from
engaging in digital financial asset business activity, or holding
itself out as being able to engage in digital financial asset
business activity, with or on behalf of a resident unless any of
certain criteria are met, including the person is licensed with the
Department of Financial Protection and Innovation, as
prescribed".
In July, the author amended the bill to authorize the DFPI to
take enforcement action against a person who is not a licensee but
has engaged, is engaging, or is about to engage in digital
financial asset business activity. This, of course, raises the
question of how close a person must be to engaging in financial
asset business activity to be
