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ARTICLE · 01 DECEMBER 2025

State-Level Digital Asset Licensing: What To Watch As We Head Into 2026

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California, Louisiana, and Illinois have established comprehensive crypto licensing frameworks that mirror New York's BitLicense regime.

United StatesTechnology
Daniel J. Davis
Daniel J. Davis
Michael Didiuk
Michael Didiuk
Carl E. Kennedy
Carl E. Kennedy
Alexander C. Kim
Alexander C. Kim
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California, Louisiana, and Illinois have established comprehensive crypto licensing frameworks that mirror New York's BitLicense regime. With multiple rulemaking processes now established or soon-to-be adopted and critical compliance deadlines approaching in 2026 and 2027, firms that provide digital asset services to residents in these states should carefully evaluate whether their activities trigger compliance obligations and, to the extent that they do, begin preparations for applying for licenses and building comprehensive compliance programs well in advance of the statutory deadlines.

This article provides summaries of each new state framework, as well as practical compliance considerations digital asset firms should consider.

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