SB 505: Money Transmission Act: authentication.

This bill aims to strengthen the state's financial protection by enhancing the security of digital wallets and money transmission services. It would prohibit digital wallet providers and money transmitters from allowing users to log in without using two-factor authentication or multifactor authentication, starting January 1, 2028. This measure is designed to prevent unauthorized access and protect users' sensitive information. The bill also clarifies the definition of "money transmission" and "stored value" under the state's existing financial protection laws. Reimbursement for certain costs mandated by the state will not be required for this specific provision.