Good news for the cryptocurrency industry. On 29 September 2024, California Governor Gavin Newsom approved Assembly Bill 1934, which extends the time within which digital assets companies must obtain a license to engage in digital financial asset business activity under the Digital Financial Assets Law (DFAL). Entities now have until July 2026 to obtain licensure, which is a year later than originally planned.

The new law also makes substantive changes to the DFAL. In addition to maintaining customer financial records, licensed digital assets companies must also now maintain monthly DFAL compliance records. The law also adds some clarifications to DFAL’s stablecoin-specific provisions.