California Stablecoin Rules Face Headwinds With New Federal Law

Cryptocurrency companies that issue stablecoins in California are caught between unfolding federal and state regulatory regimes, leaving them uncertain over which set of rules to follow.

The companies are preparing for regulations under the state’s 2023 Digital Financial Assets Law. California is the only state that has enacted stablecoin-specific licensing rules in statute, set to begin July 2026. Stablecoins are a type of cryptocurrency that have their value pegged to a more stable asset, such as the US dollar, to reduce volatility.

But President Donald Trump in July signed the Genius Act (Public Law 119-27 ), which creates ...