California finalizes Digital Financial Assets Law licensing regulations

What changed

California finalized regulations implementing DFAL licensing applications and requirements and a Money Transmission Act exemption. Covered businesses serving California residents generally had to be licensed or have a complete application pending by July 1, 2026.

Who it affects

• Crypto exchanges, custodians, transfer providers, issuers, kiosks, investment advisers, and California clients

What is still open

• Licensing outcomes, examination practice, stablecoin approvals, and future interpretive guidance

What it means for an advisor

• Verify licensing or exemption status and update platform diligence for custody, reserves, disclosures, records, complaints, cybersecurity, financial condition, and California customer coverage.