California 20252026 Regular Session Status: Passed Assembly 1 D cosponsors

AB 2285 — Digital Financial Asset Banking Act.

Last action — In committee: Set, first hearing. Hearing canceled at the request of author.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill has passed the Assembly. Introduced February 19, 2026. It now moves to the second chamber.

Next likely step: consideration and a floor vote in the Senate.

Odds of enactment

Moderate chance

Based on the sponsor, cosponsors, and committee posture, this bill has a moderate chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Advancing 48% · moderate confidence

  • Passed Assembly

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 D).

  • Cleared a recorded vote

    Passed 5 recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

In plain language

The bill regulates digital financial asset services provided by banks and credit unions.

The Digital Financial Asset Banking Act establishes regulations for banks and credit unions offering digital asset services. It includes auditing requirements for custody services and defines digital financial assets and related activities.

What this means for you
  • Workers: If you work in the financial industry, new auditing and regulatory standards will directly impact how your institution operates.

Summary

The Digital Financial Assets Law, on or after July 1, 2026, prohibits a person from engaging in digital financial asset business activity or holding itself out as being able to engage in digital financial asset business activity, with or on behalf of a resident unless any of specified conditions is true. The law defines "digital financial asset" to mean a digital representation of value that is used as a medium of exchange, unit of account, or store of value, and that is not legal tender, whether or not denominated in legal tender and defines "digital financial asset business activity" to mean, among other similar things, exchanging, transferring, or storing a digital financial asset or engaging in digital financial asset administration, whether directly or through an agreement with a digital financial asset control services vendor. This bill, the Digital Financial Asset Banking Act, would generally regulate a bank or a credit union under the examination authority of the Department of Financial Protection and Innovation with respect to its provision of digital asset custody services, staking services, and digital asset transaction services, as those terms are defined, including by requiring certain disclosures to costumers and requiring certain financial safety measures. The bill would require a financial institution engaged in digital financial asset custody services to conduct an annual audit of its custodial activities and holdings that is either an independent audit or a review by the financial institution's board of directors for accuracy and signed be each board member under penalty of perjury. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program. This bill would authorize the department to enforce its provisions with administrative and civil remedies, as specified. The Corporate Securities Law of 1968 generally regulates the offering and selling in this state of a security, as defined. This bill would define "security" to not include a staking reward, as defined. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Bill Text

Action History

  1. In committee: Set, first hearing. Hearing canceled at the request of author.

  2. Referred to Coms. on JUD. and B. & F.I.

  3. In Senate. Read first time. To Com. on RLS. for assignment.

  4. Read third time. Passed. Ordered to the Senate. (Ayes 49. Noes 1. Page 5760.)

  5. Read second time. Ordered to third reading.

  6. Read second time and amended. Ordered returned to second reading.

  7. From committee: Amend, and do pass as amended. (Ayes 7. Noes 1.) (June 8).

  8. Re-referred to Com. on B. & F.

  9. From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.

  10. In committee: Hearing postponed by committee.

  11. Re-referred to Com. on B. & F. pursuant to Assembly Rule 77.2.

  12. Joint Rule 62(a), file notice suspended.

  13. Read third time and amended. Ordered to third reading. (Page 5273.)

  14. Read second time. Ordered to third reading.

  15. From committee: Do pass. (Ayes 15. Noes 0.) (May 14).

  16. In committee: Set, first hearing. Referred to APPR. suspense file.

  17. From committee: Do pass and re-refer to Com. on APPR. (Ayes 15. Noes 0.) (April 21). Re-referred to Com. on APPR.

  18. From committee: Do pass and re-refer to Com. on P. & C.P. (Ayes 9. Noes 0.) (April 20). Re-referred to Com. on P. & C.P.

  19. Joint Rule 62(a), file notice suspended. (Ayes 54. Noes 16. Page 4716.)

  20. (Pending re-refer to Com. on P. & C.P.)

  21. Assembly Rule 56 suspended. (Page 4663.)

  22. Re-referred to Com. on B. & F.

  23. From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.

  24. Referred to Coms. on B. & F. and P. & C.P.

  25. From printer. May be heard in committee March 22.

  26. Read first time. To print.

Sponsors

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 0 co-sponsors · 121 not signed on · 1 voted No

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

AB 2285 Valencia Assembly Third Reading

Passed 49 Yea · 1 Nay · 29 Other
Party YeaNayPresentNot Voting
Democratic 391019
Republican 90010
Unaffiliated 1000
Total 491029
% of votes cast 62%1%0%37%
How each member voted (79)
Member Party Vote
Ávila Farías — Yea
Addis, Dawn Democratic Not Voting
Aguiar-Curry, Cecilia M. Democratic Not Voting
Ahrens, Patrick Democratic Yea
Alvarez, David Democratic Not Voting
Arambula, Joaquin Democratic Yea
Bains, Jasmeet Democratic Not Voting
Bauer-Kahan, Rebecca Democratic Yea
Bennett, Steve Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Yea
Bonta, Mia Democratic Not Voting
Bryan, Isaac G. Democratic Yea
Calderon, Lisa Democratic Not Voting
Caloza, Jessica Democratic Yea
Carrillo, Juan Democratic Yea
Connolly, Damon Democratic Not Voting
Elhawary, Sade Democratic Yea
Fong, Mike Democratic Yea
Gabriel, Jesse Democratic Yea
Garcia, Robert Democratic Not Voting
Gipson, Mike A. Democratic Yea
González, Mark Democratic Yea
Haney, Matt Democratic Not Voting
Harabedian, John Democratic Yea
Hart, Gregg Democratic Yea
Irwin, Jacqui Democratic Yea
Jackson, Corey A. Democratic Yea
Kalra, Ash Democratic Yea
Krell, Maggy Democratic Not Voting
Lee, Alex Democratic Yea
Lowenthal, Josh Democratic Yea
McKinnor, Tina Democratic Not Voting
Muratsuchi, Al Democratic Not Voting
Nguyen, Stephanie Democratic Yea
Ortega, Liz Democratic Yea
Pacheco, Blanca Democratic Yea
Papan, Diane Democratic Yea
Patel, Darshana R. Democratic Not Voting
Pellerin, Gail Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Not Voting
Ransom, Rhodesia Democratic Not Voting
Rivas, Robert Democratic Yea
Rodriguez, Celeste Democratic Not Voting
Rodriguez, Michelle Democratic Yea
Rogers, Chris Democratic Yea
Rubio, Blanca E. Democratic Yea
Schiavo, Pilar Democratic Nay
Schultz, Nick Democratic Yea
Sharp-Collins, LaShae Democratic Not Voting
Solache, Jr., José Luis Democratic Yea
Soria, Esmeralda Democratic Not Voting
Stefani, Catherine Democratic Yea
Valencia, Avelino Democratic Yea
Ward, Christopher M. Democratic Yea
Wicks, Buffy Democratic Not Voting
Wilson, Lori D. Democratic Yea
Zbur, Rick Chavez Democratic Yea
Alanis, Juan Republican Not Voting
Castillo, Leticia Republican Not Voting
Chen, Phillip Republican Yea
Davies, Laurie Republican Not Voting
DeMaio, Carl Republican Yea
Dixon, Diane Republican Not Voting
Ellis, Stan Republican Not Voting
Flora, Heath Republican Not Voting
Gonzalez, Jeff Republican Not Voting
Hadwick, Heather Republican Yea
Hoover, Josh Republican Yea
Johnson, Natasha Republican Not Voting
Lackey, Tom Republican Yea
Macedo, Alexandra Republican Not Voting
Patterson, Joe Republican Yea
Sanchez, Kate Republican Yea
Ta, Tri Republican Yea
Tangipa, David J. Republican Not Voting
Wallis, Greg Republican Yea

Official roll call →

Do pass as amended.

Passed 7 Yea · 1 Nay · 1 Other
Party YeaNayPresentNot Voting
Republican 1001
Democratic 6100
Total 7101
% of votes cast 78%11%0%11%
How each member voted (9)
Member Party Vote
Fong, Mike Democratic Yea
Krell, Maggy Democratic Yea
Rodriguez, Michelle Democratic Yea
Rubio, Blanca E. Democratic Yea
Schiavo, Pilar Democratic Nay
Soria, Esmeralda Democratic Yea
Valencia, Avelino Democratic Yea
Chen, Phillip Republican Not Voting
Dixon, Diane Republican Yea

Official roll call →

Do pass.

Passed 15 Yea · 0 Nay
Party YeaNayPresentNot Voting
Republican 4000
Democratic 11000
Total 15000
% of votes cast 100%0%0%0%
How each member voted (15)
Member Party Vote
Aguiar-Curry, Cecilia M. Democratic Yea
Calderon, Lisa Democratic Yea
Caloza, Jessica Democratic Yea
Fong, Mike Democratic Yea
González, Mark Democratic Yea
Krell, Maggy Democratic Yea
Pacheco, Blanca Democratic Yea
Pellerin, Gail Democratic Yea
Sharp-Collins, LaShae Democratic Yea
Solache, Jr., José Luis Democratic Yea
Wicks, Buffy Democratic Yea
Dixon, Diane Republican Yea
Hoover, Josh Republican Yea
Ta, Tri Republican Yea
Tangipa, David J. Republican Yea

Official roll call →

Do pass and be re-referred to the Committee on [Appropriations]

Passed 15 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democratic 11000
Republican 4000
Total 15000
% of votes cast 100%0%0%0%
How each member voted (15)
Member Party Vote
Bauer-Kahan, Rebecca Democratic Yea
Bryan, Isaac G. Democratic Yea
Irwin, Jacqui Democratic Yea
Lowenthal, Josh Democratic Yea
McKinnor, Tina Democratic Yea
Ortega, Liz Democratic Yea
Pellerin, Gail Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Ward, Christopher M. Democratic Yea
Wicks, Buffy Democratic Yea
Wilson, Lori D. Democratic Yea
DeMaio, Carl Republican Yea
Hoover, Josh Republican Yea
Macedo, Alexandra Republican Yea
Patterson, Joe Republican Yea

Official roll call →

Do pass and be re-referred to the Committee on [Privacy and Consumer Protection]

Passed 9 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democratic 7000
Republican 2000
Total 9000
% of votes cast 100%0%0%0%
How each member voted (9)
Member Party Vote
Fong, Mike Democratic Yea
Krell, Maggy Democratic Yea
Rodriguez, Michelle Democratic Yea
Rubio, Blanca E. Democratic Yea
Schiavo, Pilar Democratic Yea
Soria, Esmeralda Democratic Yea
Valencia, Avelino Democratic Yea
Chen, Phillip Republican Yea
Dixon, Diane Republican Yea

Official roll call →

Subjects

finance technology
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Frequently asked questions

What does AB 2285 do?
The Digital Financial Assets Law, on or after July 1, 2026, prohibits a person from engaging in digital financial asset business activity or holding itself out as being able to engage in digital financial asset business activity, with or on behalf of a resident unless any of specified conditions is true. The law defines "digital financial asset" to mean a digital representation of value that is used as a medium of exchange, unit of account, or store of value, and that is not legal tender, whether or not denominated in legal tender and defines "digital financial asset business activity" to mean, among other similar things, exchanging, transferring, or storing a digital financial asset or engaging in digital financial asset administration, whether directly or through an agreement with a digital financial asset control services vendor. This bill, the Digital Financial Asset Banking Act, would generally regulate a bank or a credit union under the examination authority of the Department of Financial Protection and Innovation with respect to its provision of digital asset custody services, staking services, and digital asset transaction services, as those terms are defined, including by requiring certain disclosures to costumers and requiring certain financial safety measures. The bill would require a financial institution engaged in digital financial asset custody services to conduct an annual audit of its custodial activities and holdings that is either an independent audit or a review by the financial institution's board of directors for accuracy and signed be each board member under penalty of perjury. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program. This bill would authorize the department to enforce its provisions with administrative and civil remedies, as specified. The Corporate Securities Law of 1968 generally regulates the offering and selling in this state of a security, as defined. This bill would define "security" to not include a staking reward, as defined. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.
Who sponsors AB 2285?
AB 2285 is sponsored by Valencia, Avelino (Democratic).
What is the current status of AB 2285?
This bill has passed the Assembly. Introduced February 19, 2026. It now moves to the second chamber.
Where can I track AB 2285?
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