SF2296: Digital Financial Kiosks

Changes how violations involving digital financial asset transaction kiosks are enforced and penalized. It removes the specific enforcement powers and penalty limits previously granted to the attorney general under section 533C.1004, instead designating such violations as unlawful practices under the broader consumer fraud law (section 714.16). This subjects violations to the remedies and enforcement procedures of consumer fraud law. Additionally, it increases the maximum civil penalty for violating an injunction related to these kiosks to $100,000. The changes are effective immediately and apply to civil actions commenced on or after enactment.

Key Points & Impacts

• Removes existing enforcement provisions for digital financial asset kiosk violations previously under section 533C.1004.

• Designates violations of section 533C.1004 as unlawful practices under the state's consumer fraud statute (section 714.16).

• Subjects violations to all remedies and enforcement measures available under consumer fraud law, including injunctions and penalties.

• Eliminates the prior $10,000 per violation penalty limit specific to digital kiosk law.

• Establishes that violations of injunctions related to digital kiosk law may result in a civil penalty of up to $100,000, overriding general consumer fraud penalty limits.

• Attorney general retains exclusive authority to bring civil actions for these violations.

• The bill is effective immediately upon enactment.

• Applies to civil actions initiated on or after the effective date.

Signed by Governor May 6, 2026. Takes Effect May 6, 2026.