California’s long‑anticipated digital asset licensing regime has finally arrived. Beginning today – Monday, March 9, 2026 – the California Department of Financial Protection and Innovation (“DFPI”) will be accepting license applications under the state’s Digital Financial Assets Law (“DFAL”). This marks the true operational start of California’s digital asset regulatory framework, and the beginning of the compliance clock for companies operating in California, placing the DFPI alongside the New York State Department of Financial Services…
On October 13, 2023, California Governor Gavin Newsom approved the Digital Financial Assets Law. Among its provisions, the law prohibits a person from engaging in digital financial asset business activity with or on behalf of a California resident unless, among other things, the person is licensed with California’s Department of Financial Protection and Innovation. “Digital financial asset” is defined as a digital representation of value that is used as a medium of exchange, unit of…