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ARTICLE · 07 OCTOBER 2024

Cryptocurrency Industry Can Shape California's New Licensing Regime

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On 2 October 2024, the California Department of Financial Protection and Innovation (DFPI), issued draft proposed rules to implement the state's new cryptocurrency licensing regime, the Digital Financial Assets Law (DFAL).

United StatesTechnology
Jeremy M. McLaughlin
Jeremy M. McLaughlin
Joshua Durham
Joshua Durham

On 2 October 2024, the California Department of Financial Protection and Innovation (DFPI), issued draft proposed rules to implement the state's new cryptocurrency licensing regime, the Digital Financial Assets Law (DFAL). DFPI is seeking comments on the proposed rules and set a deadline of 18 November 2024.

Although Governor Gavin Newsom just extended the date for DFAL licensure until July of 2026, cryptocurrency ATM operators had initial compliance duties in January of 2024 (concerning transaction limits), and will have more requirements starting in January of 2025 (concerning charges and disclosures).

The DFPI's new draft rules come with a request for comment, which is in addition to the DFPI's previous request for comment in November 2023. Initial commenters were largely cryptocurrency businesses and industry groups.

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