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 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 authorize the Department of Financial Protection and Innovation, in consultation with the Treasurer and the Controller, Innovation to adopt regulations to allow specified payments required under the DFAL to be made with stablecoins. The bill would require the department to submit, on or before January 1, 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. stablecoins, as specified. This bill would become operative on July 1, 2027, and sunset its provisions on January 1, 2032.