California Begins Enforcing State-Level Crypto Licensing With DFAL

In brief

• California has set a July 1 deadline for crypto firms serving residents to hold a DFAL license, file an application, or qualify for an exemption.
• The law, signed by Governor Gavin Newsom in October 2023, creates a BitLicense-style state crypto regime and adds oversight for many digital asset businesses and kiosks.
• CBAC’s Joe Ciccolo says the rules could drive national compliance standards and attract stronger firms, but may push smaller players out if enforcement is too heavy.