AB 1180: Department of Financial Protection and Innovation: state payments.

The Digital Financial Assets Law (DFAL) generally regulates digital financial asset business activity, including by prohibiting a covered 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 the person is licensed by the Department of Financial Protection and Innovation, as prescribed. The DFAL 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, as specified. taking certain actions with digital financial assets if that asset is a stablecoin, as defined and prescribed. The DFAL requires, among other charges, an applicant for a license to include a nonrefundable fee with an application, as specified.

This bill would require the department Department of Financial Protection and Innovation, in consultation with the Treasurer and the Controller, to adopt regulations to allow any payment specified payments required under the DFAL to be made with digital financial assets and stablecoins. The bill would require the department to submit, on or before January 1, 2028, 2029, a report to the Legislature on those regulations, as specified. The bill would require the Treasurer and the Controller to submit, on or before January 1, 2028, a report to the Legislature containing specified recommendations. This bill would become operative on July 1, 2026, 2027, and sunset its provisions on January 1, 2031. 2032.