Committee backs bill to lower digital-asset licensing fees set by state regulator
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Summary
The Assembly Banking and Finance Committee voted unanimously to pass AB 236, which would adjust application fees for digital financial asset licenses after witnesses said the Department of Financial Protection and Innovation’s proposed fees are disproportionately high; the bill moves to the Assembly Appropriations Committee.
The Assembly Banking and Finance Committee voted 8-0 to pass AB 236 and referred the measure to the Assembly Appropriations Committee. The bill would modify licensing fee structure for firms engaging in digital financial asset business activities to make California more attractive for blockchain and digital asset companies.
Vice Chair Chen, who presented the bill, told the committee that under the Department of Financial Protection and Innovation’s proposed 2024 rules the anticipated application fee for digital asset business licensing would be about $20,000 — roughly four times higher than the next-highest application fee imposed by the department. Chen said that fee level could discourage small and medium-sized businesses from operating in California and that AB 236 would promote competitiveness while ensuring appropriate regulation.
Committee members voiced support for encouraging fintech and digital asset innovation while keeping firms accountable. There were no witnesses registered in opposition or in support during the hearing.
After the presentation and brief discussion, the committee approved the bill on a unanimous vote and sent it to Appropriations for fiscal review and further consideration.
Votes at a glance: AB 236 (Chen) — passed to Appropriations, vote 8-0.