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ARTICLE · 09 NOVEMBER 2023

California Enacts Digital Assets Licensing Law

Greenberg Traurig
Greenberg Traurig
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On Oct. 13, 2023, California Governor Gavin Newsom signed CA AB39, the Digital Financial Assets Law (DFAL), which is the first comprehensive framework to regulate the digital asset market in the state of California.

United StatesTechnology
Go-To Guide:
  • California enacted the Digital Financial Assets Law – a crypto-specific licensing law – which takes effect in July 2025.
  • The Digital Financial Assets Law's provisions include conditional licensure, disclosure requirements, stablecoin-specific provisions, exchange-specific provisions, and robust enforcement powers.
  • Notably, the Digital Financial Assets Law could also apply to gaming publishers in certain situations.
  • Governor Newsom urged the California Department of Financial Protection and Innovation to clarify ambiguities in the Digital Financial Assets Law when establishing implementing regulations.


On Oct. 13, 2023, California Governor Gavin Newsom signed CA AB39, the Digital Financial Assets Law (DFAL), which is the first comprehensive framework to regulate the digital asset market in the state of California. As such, California joins New York and Louisiana as the third state to have a virtual currency specific

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