Assembly committee advances bill requiring two‑factor authentication for digital wallets

The Assembly Banking and Finance Committee voted to pass SB 505 (Richardson) to the Appropriations Committee after brief testimony from consumer advocates and industry representatives.

Assemblymember Maggie Krell presented the bill on behalf of Senator Richardson, saying SB 505 "prohibits a digital wallet provider or money transmitter operating in the state from allowing a user to log in without using 2 factor authentication or multifactor authentication for any login by that user." Krell said the requirement aims to protect users from fraud, unauthorized access and financial exploitation as digital wallets and peer‑to‑peer payment platforms become more common.

Support for the bill was voiced by Megan Varvay (Kaiser advocacy, speaking on behalf of the National Consumer Law Center). Jason Schmelzer of TechNet said his organization was "currently opposed, but looking forward to removing our opposition," thanking the author and committee for working with industry on amendments.

A committee member spoke in favor but urged that the logistics preserve convenience for trusted users and trusted devices, noting common user experience features such as recognizing a personal computer as a known device. The chair said staff is working on logistics to balance ease of use and consumer protection.

With no in‑room opposition after the witness period, the committee moved to a roll call and sent SB 505 to the Appropriations Committee.

SB 505 now advances to the Assembly Appropriations Committee for further consideration and any fiscal review or amendments the Appropriations Committee may require.