Assembly committee advances Grayson bill to update California digital-finance licensing law

The Assembly Banking and Finance Committee on Oct. 26 advanced SB 97, a measure by Sen. Scott (Grayson) that updates California's digital finance and financial-assets licensing law and preserves the state's ability to conform to any new federal legislation.

SB 97, as presented by the bill's author in committee, makes clarifying amendments to the law the senator authored in 2023 and is intended to reflect consensus changes agreed with stakeholders. "It simply makes updates and clarification to the digital finance, financial assets law," the author said. He added his office is "closely watching legislation in Congress" and would make any necessary conforming changes if federal law is enacted before the bill reaches the governor.

The bill drew supportive testimony from industry groups and consumer advocates. Jamie Minor of the California Blockchain Advocacy Coalition said the group was "in a supportive amended position" and looked forward to further conversations to ensure a clear path to compliance. Cassie Gilson, speaking on behalf of Andreessen Horowitz through Acxiom Advisors, noted that blockchain-based systems are not always financial products and urged further refinement of the bill to avoid categorizing nonfinancial blockchain software as finance. Robert Harrell of the Consumer Federation of California thanked the author and stakeholders for a "robust and transparent process" and offered continued support.

No witnesses registered formal opposition in the committee hearing. The author told the committee the bill had "no opposition" at the time of his presentation and asked for an "aye" vote.

Committee members voted to pass SB 97 and refer it to the Assembly Committee on Privacy and Consumer Protection. The clerk left the roll open for absent members following the vote.