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 outlines permitted activities for individuals, such as operating nodes on a blockchain, developing software, transferring digital assets, and participating in staking.

The bill also introduces exceptions to existing regulations concerning money transmission and securities. It exempts individuals engaged in operating blockchain nodes, exchanging digital assets without involving legal tender, 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 facilitate rewards for token owners without being subject to standard securities regulations.