California’s Department of Financial Protection and Innovation (DFPI) has formally opposed a Trump administration Securities and Exchange Commission proposal, filing a public comment letter arguing that the rule, labelled “Regulation Crypto Assets,” would effectively dismantle the state’s ability to review and block high-risk digital asset securities offerings before they reach investors.

The release number is SEC Release No. 33-11434. The DFPI’s objection, signed by Commissioner KC Mohseni, was submitted on 20 October 2026.

The regulatory dispute

At its core, the dispute is about the boundary between federal and state securities law. Under existing US securities law, certain…