Department of Financial Protection and Innovation: state payments

The law creates a limited option for digital-asset applicants and licensees to pay the Department of Financial Protection and Innovation with stablecoins. It preserves state fiscal controls and excludes enforcement-related payments.

What the law does ​

• Authorizes the Department of Financial Protection and Innovation to adopt rules allowing DFAL-required payments in stablecoins issued by a DFAL licensee and directly redeemable from that issuer.
• Limits any stablecoin payment option to payments from applicants or licensees to the department.
• Bars stablecoin payments for enforcement measures.
• Prohibits the option if the Controller, Treasurer, or department determines it would conflict with state payment, deposit, or cash-management requirements.
• Allows the department to consult the Treasurer and Controller when writing rules.
• Requires the department to recover implementation and administration costs under existing DFAL cost-recovery rules.

Who it affects ​

• Applicants for licenses under the Digital Financial Assets Law.
• Licensees under the Digital Financial Assets Law that owe payments to the department.
• Stablecoin issuers licensed under the Digital Financial Assets Law.

Context ​

The authority begins July 1, 2027, and expires January 1, 2032.