Fidelity Reaches $500K Settlement With California Over Crypto

Fidelity Digital Assets has reached a 500,000 dollar settlement with the state of California. The agreement concludes investigations into restrictions previously placed on digital asset withdrawals on the platform.

The document mandates that the company must provide written notice if it decides to terminate the cryptocurrency transfer feature for retail clients. This measure follows a period between November 2022 and April 2025 during which local users were unable to move assets to external wallets.

Tax-advantaged accounts such as individual retirement plans remain excluded from the transfer obligations outlined in the agreement. Fidelity retains the right to restrict movements to protect the security of the platform or specific accounts.

The company denied any wrongdoing during the process and did not admit to any violations of law. The 500,000 dollar payment covers costs related to the investigation conducted by Attorney General Rob Bonta.

Currently, Fidelity plans to launch crypto-focused retirement accounts in California although there is no set date. The external transfer service remains unavailable for these specific retirement products in any jurisdiction where they operate.