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Assembly approves AB 2285 to allow staking services by state-chartered financial firms, despite consumer protection concerns
Summary
AB 2285 cleared the Assembly after floor debate on consumer protections and regulatory oversight for cryptocurrency staking; proponents said the bill creates guardrails and a 1:1 asset-holding requirement, while opponents warned it could exempt staking rewards from DFPI oversight and undermine litigation.
The California State Assembly on May 7 passed AB 2285, a bill that would allow state-chartered banks, credit unions and crypto exchanges to offer staking services for digital assets, establishing consumer-protection requirements for firms that choose to provide the service.
Assemblymember Valencia, the bill uthor on the floor, described staking as a tool that can "enhance the blockchain ecosystem" and said the measure aims to bring consumers into the regulated market with protections. Valencia said the bill requires robust consumer safeguards and noted a proposed 1-to-1 asset-holding ratio for firms that opt in to provide staking services.
Assemblymember Schiavo spoke in opposition and warned that the bill is effectively "two bills in one," challenging the exemption that would treat staking rewards outside the definition of securities. Schiavo said she was concerned that "the consumer federation and the bankers are on the same side opposing a bill," arguing that staking rewards could lose DFPI oversight and that legislative action might undercut ongoing legal proceedings.
Valencia rebutted that California currently lags other states on staking access and that the bill attempts to balance innovation with consumer safety, urging members to support passage. The Clerk recorded a roll-call result read in the transcript as "Ayes 45, noes one" and the measure was declared passed and scheduled to be transmitted to the Senate. After the clerk's announcement, the transcript recorded a subsequent change where a member's vote was altered at the dais.
