Bill > SB97

This bill amends California's Digital Financial Assets Law to update various provisions related to stablecoins and digital financial asset businesses. The bill revises the licensing requirements for digital financial asset businesses, extending the deadline for New York-licensed virtual currency businesses to obtain a conditional license from January 1, 2023, to January 1, 2025. It modifies the definition of digital financial assets to exclude certain digital representations of value used in online games and rewards programs. The bill introduces additional factors for the Commissioner of Financial Protection and Innovation to consider when approving stablecoins, including the issuer's redemption rights, asset quality, collateralization requirements, and code security. The legislation also updates reporting requirements for licensed businesses, such as changing the annual report to focus on material data security breaches and modifying the criteria for reporting business changes. Additionally, the bill adjusts disclosure requirements for covered persons, including a new provision that allows exemptions from the 14-day notice requirement for changes necessary to address potential loss risks. The bill aims to provide more comprehensive regulation of digital financial assets while offering some flexibility for businesses operating in this emerging financial technology sector.

Budget and Finance, Business and Industry, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB97