Bill > SB97

This bill makes several changes to California's Digital Financial Assets Law, which governs businesses dealing with digital currencies. Key provisions include clarifying that a person must submit a *completed* application to continue operating while awaiting approval, and extending the deadline for conditional licenses based on New York licenses from January 1, 2023, to January 1, 2025. It also removes certain in-game digital representations of value from the definition of "digital financial asset business activity" and clarifies that digital representations of value used solely for rewards programs or within online games are not considered digital financial assets. The bill also specifies that a person who only retains the ability to stop a digital financial transaction to prevent fraud, without compensation, is exempt from certain regulations. Notably, the bill repeals existing provisions specifically related to stablecoins, which are digital assets designed to maintain a stable value, and makes other adjustments to reporting requirements, such as requiring reports of *material* data security breaches and *material* safety and soundness concerns. It also modifies the notice period for changes to terms and conditions, allowing for immediate changes if necessary to address risks (unless related to fees), and updates the certification requirement for digital assets listed by exchanges to January 1, 2025. Finally, the bill clarifies disclosure requirements for policies and procedures, exempting those with sensitive security information from separate disclosure. The bill is declared an urgency statute, taking effect immediately.