AB 2285: Digital Financial Asset Banking Act.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

The Digital Financial Assets Law, on or after July 1, 2026, prohibits a person from engaging in digital financial asset business activity or holding itself out as being able to engage in digital financial asset business activity, with or on behalf of a resident unless any of specified conditions is true. The law defines “digital financial asset” to mean a digital representation of value that is used as a medium of exchange, unit of account, or store of value, and that is not legal tender, whether or not denominated in legal tender and defines “digital financial asset business activity” to mean, among other similar things, exchanging, transferring, or storing a digital financial asset or engaging in digital financial asset administration, whether directly or through an agreement with a digital financial asset control services vendor.

This bill, the Digital Financial Asset Banking Act, would generally regulate a bank or a credit union under the examination authority of the Department of Financial Protection and Innovation with respect to its provision of digital asset custody services, staking services, and digital asset transaction services, as those terms are defined, including by requiring certain disclosures to costumers and requiring certain financial safety measures. The bill would require a financial institution engaged in digital financial asset custody services to conduct an annual audit of its custodial activities and holdings that is either an independent audit or a review by the financial institution’s board of directors for accuracy and signed be each board member under penalty of perjury. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program.

This bill would authorize the department to enforce its provisions with administrative and civil remedies, as specified.

The Corporate Securities Law of 1968 generally regulates the offering and selling in this state of a security, as defined.

This bill would define “security” to not include a staking reward, as defined.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. June 29, 2026In committee: Set, first hearing. Hearing canceled at the request of author.
2. June 24, 2026Referred to Coms. on JUD. and B. & F.I.
3. June 18, 2026In Senate. Read first time. To Com. on RLS. for assignment.
4. June 18, 2026Read third time. Passed. Ordered to the Senate. (Ayes 49. Noes 1. Page 5760.)
5. June 11, 2026Read second time. Ordered to third reading.
6. June 10, 2026Read second time and amended. Ordered returned to second reading.
7. June 9, 2026From committee: Amend, and do pass as amended. (Ayes 7. Noes 1.) (June 8).
8. June 4, 2026Re-referred to Com. on B. & F.
9. June 3, 2026From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.
10. May 28, 2026In committee: Hearing postponed by committee.
11. May 26, 2026Joint Rule 62(a), file notice suspended. (Page 5343.)
12. May 26, 2026Re-referred to Com. on B. & F. pursuant to Assembly Rule 77.2.