[Settlement of $500,000, Fidelity Digital Assets Resolves California Crypto Withdrawal Restriction Investigation] Odaily Planet Daily News – On October 16, California Attorney General Rob Bonta announced that his office had reached a $500,000 settlement agreement with Fidelity Digital Assets, National Association (the successor entity to Fidelity Digital Asset Services), regarding the company's previous practice of restricting California retail customers from transferring cryptocurrency to external wallets. Regulators believe this practice may have violated the California Commodity Law of 1990, which limits certain speculative commodity contracts unless the buyer receives physical delivery within a specified timeframe. The California government views the ability to withdraw cryptocurrency as functionally equivalent to delivery. From November 2022 to April 2025, California customers were able to buy and sell cryptocurrency on the Fidelity platform but could not directly send assets to external wallets. Fidelity stated that the restriction was due to the New York State Department of Financial Services (NYDFS) not approving the related functionality at the time; the approval was granted in April 2025, and the transfer functionality was expanded to all California retail customers in June 2025.