SB 97: Digital financial assets: stablecoins.

The bill aims to regulate digital financial assets, specifically stablecoins, in California. It would revise the criteria for obtaining a license, requiring applicants to submit a completed application before July 1, 2026, and authorizing the commissioner to issue a conditional license to applicants with existing virtual currency business activity licenses issued or approved by January 1, 2025. The bill defines digital financial asset business activity and removes certain activities from its definition, excluding transactions related to affinity or rewards programs. It excludes persons who merely retain the ability to terminate or suspend digital transactions to prevent unauthorized or fraudulent activity from the definition of digital financial asset business activity. The bill requires the commissioner to consider additional factors when approving stablecoins and includes material dat…