The Digital Financial Asset Law (DFAL), signed into law by Governor Newsom on October 13, 2023, creates a robust regulatory framework, including licensure and enforcement authority, for certain crypto activities. This law creates a comprehensive regulatory program for many crypto companies, requires DFPI to license and supervise many crypto asset-related companies that serve California residents, and provides important consumer protections for users. Furthermore, DFAL requires additional obligations for crypto kiosks operating in California. The DFPI is seeking experienced consultants to assist in its development of comprehensive review processes and considerations for digital financial asset businesses that are requesting a license to operate in California. The experienced consultant must have knowledge and experience related to comprehensive compliance systems, blockchain technology, and information and operational security. To assist the DFPI in developing its processes related to the recently passed Digital Financial Assets Law ("DFAL"), we are seeking consultants with expertise in blockchain technology systems, information security, and compliance to assist the department in its development of comprehensive processes to review DFAL applicants and eventual licensees. In responding to this RFP, Proposers must describe their approach in a detailed work plan and explain what capacities and experiences uniquely set them apart to be successful in executing Digital Financial Asset Law (DFAL) . The detailed work plan should include a description of how the tasks described below will be accomplished, including a proposed schedule. Proposals will be evaluated based on the narrative response to how tasks and deliverables outlined in the Scope of Work (SOW) are executed. Proposers are encouraged to review the Assessment section of this RFP to understand how responses will be scored. Proposals are asked to restrict their response to the RFP to be between 10 15 pages, single-spaced, 11-point font. This applies only to the narrative response to the tasks and deliverables described below. Please copy link below into your web browser to view solicitation documents, submit questions, and submit your response to this solicitation in our City Innovate platform. https://sb.cityinnovate.com/teams/dfpi?challenge_id=8833 ADDENDUM 1 is now available. Please see link to our City Innovate platform to view addendum changes. https://sb.cityinnovate.com/teams/dfpi?challenge_id=8833 The questions and answers period has now closed. The answers to all submitted questions has been posted in our City Innovate Portal. Please see link to view answers to your questions. https://sb.cityinnovate.com/teams/dfpi?challenge_id=8833 The Q & A document is also in attachments to this solicitation.
Background
The Digital Financial Asset Law (DFAL), enacted by Governor Newsom on October 13, 2023, establishes a regulatory framework for cryptocurrency activities in California. The law mandates the Department of Financial Protection and Innovation (DFPI) to license and supervise crypto asset-related companies, ensuring consumer protections for users. Additionally, the DFAL imposes obligations on crypto kiosks operating within the state. The DFPI is seeking experienced consultants to aid in developing review processes for businesses applying for licenses under this new law.
Work Details
Consultants are required to assist DFPI in creating comprehensive review processes for digital financial asset businesses seeking licensure. Key tasks include:
1. Developing policies and procedures manuals for DFPI staff to evaluate applicants' internal controls and compliance with laws.
2. Creating a detailed work plan that outlines how tasks will be accomplished, including proposed schedules.
3. Assisting in the development of blockchain analytics software models to evaluate risks associated with DFAL applicants and licensees.
4. Collaborating with DFPI to establish systems for compliance evaluations and licensee reviews.
5. Providing training materials exclusively for DFPI's use, which may also be utilized to explain requirements to stakeholders.
Period of Performance
The contract will span from the award date until the DFAL's implementation deadline of July 1, 2026, with flexibility for shorter timelines proposed by vendors.
Place of Performance
The contract work will primarily take place in California, focusing on supporting the DFPI's regulatory efforts related to digital financial assets.
