Senate File 2296 - Reprinted SENATE FILE 2296 BY COMMITTEE ON TECHNOLOGY (SUCCESSOR TO SSB 3086) (As Amended and Passed by the Senate March 2, 2026 ) A BILL FOR An Act relating to digital financial kiosks, modifying civil 1 penalties, and including effective date and applicability 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 SF 2296 (3) 91 lh/jh/mb

S.F. 2296 Section 1. Section 533C.1004, subsection 1, paragraph a, 1 subparagraph (2), Code 2026, is amended to read as follows: 2 (2) The difference between the current market price of a 3 digital financial asset on a licensed digital financial asset 4 exchange prevailing market value of a digital financial asset 5 at the time of a transaction and the price of the digital 6 financial asset charged to a consumer. 7 Sec. 2. Section 533C.1004, subsection 1, paragraphs c and d, 8 Code 2026, are amended to read as follows: 9 c. (1) “Digital financial asset” means a virtual digital 10 representation of value or rights that can be transferred, 11 stored, or traded electronically and used for payment or 12 investment purposes is used as a medium of exchange, unit of 13 account, or store of value, and is not money, whether or not 14 denominated in money . 15 (2) “Digital financial asset” does not include any of the 16 following: 17 (a) A transaction in which a merchant grants, as part of an 18 affinity or rewards program, value that cannot be taken from 19 or exchanged with the merchant for money, bank credit, or a 20 digital financial asset. 21 (b) A digital representation of value issued by or on behalf 22 of a publisher and used solely within an online game, game 23 platform, or family of games sold by the same publisher or 24 offered on the same game platform. 25 d. “Digital financial asset transaction kiosk” means an 26 electronic terminal acting as a mechanical agent of an operator 27 to enable the operator to facilitate the exchange of a digital 28 financial asset for money, bank credit, or other digital 29 financial asset, including but not limited to any of the 30 following: 31 (1) By connecting directly to a separate licensed digital 32 financial asset exchange that performs the digital financial 33 asset transaction. 34 (2) By drawing upon a digital financial asset in the 35 -1- SF 2296 (3) 91 lh/jh/mb 1/ 4

S.F. 2296 possession of the operator that enables a digital financial 1 asset kiosk operator to facilitate the exchange of digital 2 financial assets for money, bank credit, or other digital 3 financial assets . 4 Sec. 3. Section 533C.1004, subsection 1, paragraph f, Code 5 2026, is amended by striking the paragraph. 6 Sec. 4. Section 533C.1004, Code 2026, is amended by adding 7 the following new subsection: 8 NEW SUBSECTION . 1A. License required. Any digital 9 financial asset kiosk operator who owns, operates, solicits, 10 markets, advertises, or facilitates a digital financial asset 11 kiosk in this state shall be deemed to be engaged in the 12 business of money transmission and must obtain a license under 13 section 533C.301. 14 Sec. 5. Section 533C.1004, subsection 3, paragraph b, Code 15 2026, is amended to read as follows: 16 b. Fifteen percent of the United States currency equivalent 17 of the digital financial assets involved in the digital 18 financial asset transaction according to the public quoted 19 market price of the digital financial asset on a licensed 20 digital financial asset exchange prevailing market value of 21 such digital financial asset at the date and time the consumer 22 initiates the digital financial asset transaction. 23 Sec. 6. Section 533C.1004, subsection 5, paragraph e, Code 24 2026, is amended to read as follows: 25 e. (1) The dollar amount of all charges collected by 26 the operator in relation to the digital financial asset 27 transaction. 28 (2) The legal name of the licensed digital financial asset 29 exchange the operator used to calculate the charges described 30 in subsection 1 , paragraph “a” , subparagraph (2). 31 Sec. 7. Section 533C.1004, subsection 6, Code 2026, is 32 amended to read as follows: 33 6. Required report. An operator shall provide a list to 34 the division of banking of the street address locations of all 35 -2- SF 2296 (3) 91 lh/jh/mb 2/ 4

S.F. 2296 digital financial asset transaction kiosks that the operator 1 owns, operates, or manages in this state report to the division 2 of banking the location of each digital financial asset 3 transaction kiosk that the operator owns, operates, or manages 4 within this state as an authorized delegate pursuant to section 5 533C.603 . An operator shall provide the division with updates 6 to the list within thirty calendar days of any change to the 7 list. The division shall make each operator’s list available 8 to the public via the division’s internet site. 9 Sec. 8. Section 533C.1004, subsection 7, paragraph a, Code 10 2026, is amended by striking the paragraph. 11 Sec. 9. Section 533C.1004, subsection 10, paragraphs a and 12 b, Code 2026, are amended to read as follows: 13 a. If the attorney general has reasonable belief that an 14 operator is in violation of this section , the attorney general 15 has the sole authority to bring civil action to provide for all 16 of the following: 17 (1) Enjoin further violations by the operator. 18 (2) Enforce compliance with this section . 19 (3) Civil penalties in an amount not more than ten thousand 20 dollars for each violation of this section . 21 (4) Other remedies permitted under law A violation of this 22 section is an unlawful practice under section 714.16 . 23 b. If Notwithstanding the civil penalty limit under section 24 714.16, subsection 7, if the attorney general has reasonable 25 belief that a person is in violation of an injunction issued 26 under this subsection section 714.16, subsection 2, paragraph 27 “t” , the attorney general has the sole authority to bring a 28 civil action to provide for a civil penalties penalty for 29 violation of the injunction in an amount not more than one 30 hundred thousand dollars. 31 Sec. 10. Section 714.16, subsection 2, Code 2026, is amended 32 by adding the following new paragraph: 33 NEW PARAGRAPH . t. It shall be an unlawful practice for a 34 person to violate section 533C.1004. 35 -3- SF 2296 (3) 91 lh/jh/mb 3/ 4

S.F. 2296 Sec. 11. EFFECTIVE DATE. This Act, being deemed of 1 immediate importance, takes effect upon enactment. 2 Sec. 12. APPLICABILITY. This Act applies to civil actions 3 commenced on or after the effective date of this Act. 4 -4- SF 2296 (3) 91 lh/jh/mb 4/ 4