The California Consumer Financial Protection Act (CCFPL) will modernize and update the existing Department of Business Oversight (DBO). From January 1 next year, the department will be called the "Department of Financial Protection and Innovation" (DFPI) and will receive new powers, divisions and personnel.
The law, signed by the Governor of the state, is designed to protect consumers from fraud, promote innovation, and clarify regulatory barriers to emerging innovative financial products.
Among the powers given to the updated department, tools for regulating digital currency, combating unlicensed financial services and products are separately highlighted.
A new research unit will be added to the department, which will focus on evaluating innovative financial products such as cryptocurrency, developing recommendations for their regulation and launching them to the market.