News & Analysis as of

Cryptoassets Department of Financial Protection and Innovation (DFPI)

Orrick, Herrington & Sutcliffe LLP

DFPI has bank pay $63 million for crypto-exchange non-compliance

On July 1, the California DFPI released a consent order against a bank holding company for allegedly making misleading statements about the bank’s BSA/AML compliance program related to its crypto-asset exchange network. The...more

Orrick, Herrington & Sutcliffe LLP

California’s DFPI orders two crypto-asset companies to stop operations

On June 5, the California DFPI issued two desist and refrain orders against securities firms for allegedly offering unqualified securities under California’s Corporate Securities Law (CSL). The first order was against a...more

Allen Matkins

DFPI Issues 2023 CCFPL Report

Allen Matkins on

Last week the California Department of Financial Protection & Innovation issued a report of its activities under the California Consumer Financial Protection Law.   The California legislature enacted the CCFPL in 2020 for the...more

Troutman Pepper

Troutman Pepper Weekly Consumer Financial Services Newsletter - February 2024 # 2

Troutman Pepper on

To keep you informed of recent activities, below are several of the most significant federal and state events that have influenced the Consumer Financial Services industry over the past week...more

Orrick, Herrington & Sutcliffe LLP

SEC, DFPI charge unregistered crypto platform

On February 7, the SEC and DFPI announced charges against a Florida-based crypto platform, for failing to register the offer and sale of a crypto lending product that allowed U.S. investors to deposit or purchase crypto...more

Allen Matkins

DFPI Invites Comments On DFAL Rulemaking

Allen Matkins on

In October, I reported on the Governor's signing of AB 39 which creates the Digital Financial Assets Law.   On or after July 1, 2025, the DFAL will prohibit a person from engaging in digital financial asset business activity...more

Orrick, Herrington & Sutcliffe LLP

DFPI shares trends in consumer crypto complaints

DFPI recently published a report on consumer crypto-related complaints collected through its new online complaint portal. According to the third-quarter 2023 CSO report, some of the most common complaints include...more

Orrick, Herrington & Sutcliffe LLP

DFPI opens comment period for the Digital Financial Assets Law

On November 20, DFPI announced it is seeking public comment before it begins its formal rulemaking process on its Digital Financial Assets Law (DFAL), which was enacted on October 13. ...more

Troutman Pepper

Well, California Has Decided to Regulate Crypto

Troutman Pepper on

On October 13, California Governor Gavin Newsom (D) signed Assembly Bill 39 (Digital Financial Assets Law). This new law broadly empowers the California Department of Financial Protection and Innovation (DFPI) to govern...more

Latham & Watkins LLP

California Adopts Digital Financial Assets Law

Latham & Watkins LLP on

Licensees, exchanges, and other market participants should prepare to comply with the listing, disclosure, capital, and other requirements that the new law imposes. On October 13, 2023, California Governor Gavin Newsom...more

Allen Matkins

After Vetoing Earlier Bill, Governor Signs Digital Financial Asset Bill

Allen Matkins on

A year ago, Governor Newsom vetoed a bill, AB 2269, which would have established a Digital Financial Assets Law.  At the time, the Governor claimed that it was "premature to lock a licensing structure in statute".   What a...more

Troutman Pepper

Troutman Pepper Weekly Consumer Financial Services Newsletter - September 2023 # 4

Troutman Pepper on

To keep you informed of recent activities, below are several of the most significant federal and state events that have influenced the Consumer Finance Services industry over the past week...more

Allen Matkins

Someone's Knockin' At The Door, But It May Not Be The DFPI

Allen Matkins on

Last week, the California Department of Financial Protection & Innovation issued a warning about yet another fraudster's attempt to separate investors from their money...more

Allen Matkins

DFPI Goes Multimedia In Recent Crypto Enforcement Actions

Allen Matkins on

Early this week, the California Department of Financial Protection and Innovation issued desist and refrain orders alleging violations by the following individual and entities...more

Allen Matkins

They Claim To Be From The Government, But They Are Definitely Not Here To Help

Allen Matkins on

It seems as if using the Internet has become as dangerous as walking alone down a dark alley in a crime infested area of the city.  Today, the California Department of Financial Protection & Innovation issued the following...more

Allen Matkins

SEC Files Desist & Refrain Order Against Coinbase Alleging Failure To Qualify Staking Rewards Program

Allen Matkins on

Yesterday, the California Department of Financial Protection & Innovation announced that it had issued a desist and refrain order against Coinbase, Inc. The order alleges that Coinbase's staking rewards program involved the...more

Troutman Pepper

Silvergate Capital to Liquidate, Regulators Close Signature Bank: What That Means for Other Banks With Crypto Assets

Troutman Pepper on

On March 8, Silvergate Capital, a leader in crypto lending, announced it was winding down its operations. FTX was one of Silvergate Capital’s biggest clients. The California-based bank is chartered under the supervision of...more

Allen Matkins

DFPI Announces Launch Of "Crypto Scam Tracker"

Allen Matkins on

Last week, the California Department of Financial Protection & Innovation announced that it has launched a "Crypto Scam Tracker".  According to the DFPI, the Crypto Scam Tracker is "a database that is searchable by company...more

Allen Matkins

California Bill Would Regulate "Digital Financial Asset Transaction Kiosks"

Allen Matkins on

Relatively few English words both begin and end with the letter "k".  Kiosk is one.  The word kiosk can be traced to the Persian word, kūsht, which refers to a palace or villa.  In Turkish, the word became köşk.  In France, a...more

Allen Matkins

Does California Regulate Finfluencing?

Allen Matkins on

A week ago, the United States Securities and Exchange Commission charged Kim Kardashian with touting on social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the...more

Morgan Lewis - All Things FinReg

The California Crypto Rush—or Crypto Bust?

New cryptocurrency legislation awaits California Governor Gavin Newsom’s signature after passing the California Assembly on August 30, 2022. If signed into law, California’s Digital Financial Assets Law would create sweeping...more

Allen Matkins

DFPI Charges Digital Asset Company With More Than 50,000 CFL Violations

Allen Matkins on

Yesterday's post concerned a bill pending in the California legislature that would impose a licensing requirement on persons engaging in "digital financial asset business activity", or holding itself out as being able to...more

Sheppard Mullin Richter & Hampton LLP

Crypto Interest-Bearing Accounts, the next target?

On July 12, the California Department of Financial Protection and Innovation (DFPI) announced that it is investigating multiple crypto companies that offer interest-bearing crypto asset accounts. These accounts allow users to...more

Allen Matkins

California Regulator Seeks Comments On Crypto Asset Related Financial Products

Allen Matkins on

In accordance with Governor Gavin Newsom's executive order, California's Department of Financial Protection & Innovation is soliciting coments concerning crypto asset related financial products.  The DFPI's invitation for...more

Latham & Watkins LLP

California Executive Order Foreshadows Stronger Regulation of Digital Assets

Latham & Watkins LLP on

The Executive Order aims to strengthen consumer protection and cultivate innovation in digital assets and related financial products and services. On May 4, 2022, California Governor Gavin Newsom issued an Executive...more

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