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Bill

SB 97

Digital financial assets: stablecoins.

2025-2026 Regular Session Introduced by Tim Grayson

SB 97 creates California licensing and regulatory requirements for stablecoin issuers to establish consumer protections and operational standards for digital currency assets.

Chaptered by Secretary of State. Chapter 52, Statutes of 2026.
#digitalfinancialassets #stablecoins
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WeVote Research Nonpartisan
Bill Summary · SB 97

Legislative bill overview

SB 97 establishes a regulatory framework for stablecoins—cryptocurrency tokens designed to maintain a fixed value—in California. The bill creates licensing requirements and operational standards for entities issuing or managing stablecoins, positioning California to regulate this emerging digital asset class.

Why is this important

Stablecoins have grown into a multi-billion dollar market used for payments, trading, and financial services, but currently operate in a largely unregulated space. This bill could establish consumer protections, reserve requirements, and oversight mechanisms while California competes with other states to create favorable fintech regulations.

Potential points of contention

  • Consumer protection vs. innovation balance: Strict reserve and licensing requirements may increase compliance costs and slow stablecoin adoption, while lighter regulation risks consumer losses if issuers fail or mismanage reserves
  • Federal-state regulatory overlap: Unclear how California's framework coexists with potential federal stablecoin regulations; conflicting standards could create compliance burdens for multi-state operators
  • Reserve and redemption standards: Determining what assets qualify as backing, reserve ratios, and redemption procedures involves technical tradeoffs between stability and operational flexibility

Compiled from official sources — confirm details with the bill’s official record.

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