Assembly Bill 471 aims to regulate digital assets, including cryptocurrency, by limiting the authority of state agencies and local governments to impose restrictions on their use. The bill explicitly prohibits these entities from preventing individuals from accepting digital assets as payment for legal goods and services or from taking custody of digital assets through self-hosted or hardware wallets. Additionally, it allows individuals to operate nodes, develop software, transfer digital assets, and participate in staking on blockchain protocols without facing regulatory barriers.

The bill also introduces exceptions to existing regulations concerning money transmission and securities. It exempts individuals engaged in operating nodes, exchanging digital assets, developing blockchain software, and participating in digital asset mining or staking from the licensing requirements typically enforced by the Department of Financial Institutions. Furthermore, it creates a new exemption for transactions related to digital asset staking, allowing third-party service providers to offer technical solutions for token owners to earn rewards without being subject to various securities regulations.