Washington: Crypto Task Force and Legislation

Task force: ConcludedReserve: None foundKiosks: Bill only

Task force or study body Confirmed

Washington Blockchain Work Group · Concluded

• Created by: Engrossed Substitute Senate Bill 5544, Chapter 226, Laws of 2022, effective June 9, 2022 (subject to funding appropriated)
• Organized by: Department of Commerce provides staff support; GeekWire reports the Commerce ICT Sector Lead was to run it
• Led by: Chair to be elected by members at the first meeting (per session law). No chair was ever seated under the statute; the work group never met per GeekWire (2024). In the reconstituted volunteer group, GeekWire (2024) names Joseph Williams as Commerce ICT lead and Arry Yu as a member; no chair is named.
• Members: Statute: Commerce director or designee; tribal, cybersecurity/privacy, tech, financial services, title insurance, health care, agriculture and insurance trade representatives; counties; consumer advocates; blockchain companies; higher education; Cascadia Blockchain Council; labor; environmental groups; public utility districts; four legislators; ex officio agency heads including DFI. Volunteer group (GeekWire 2024): 12 members including Arry Yu, Joseph Williams, John Bender, Sarah Frazar, Jessica Greenwalt, Jeff Gaus, Keith Swensen, Nick Ellingson, Brittany Jarnot, Mayor Lynne Robinson, Jonathan Blanco, Amber Ore.
• Outputs and timeline: Statutory first meeting was due Dec 1, 2022 and report Dec 1, 2023; the statutory group expired Jan 1, 2024 without delivering the report. GeekWire (2024) says a volunteer group met afterward and a blockchain landscape report was expected around May 2024; we did not find that report.

Sources: ESSB 5544 session law (Ch. 226, Laws of 2022), GeekWire: why the working group never met (2024), Choose Washington State: Blockchain Workgroup (seen in search results, not opened)

Statute expired Jan 1, 2024. Any volunteer group has no legislative mandate (GeekWire, 2024). No newer WA task force found in the one broader search run (fintech/digital assets/blockchain, Commerce/DFI, 2025-2026); that search surfaced only the 2019-2022 bills.

Bitcoin or digital asset reserve law None found

No Washington state bitcoin reserve or investment-of-state-funds bill found. The bitcoinlaws.io Washington page lists only five 2025 bills, all dead, none a reserve bill (they concern a financial-intangibles tax, unclaimed property and kiosks). One search for 'Washington state bitcoin strategic reserve bill' returned only federal/other-state items.

Sources: bitcoinlaws.io Washington bill list (secondary)

Licensing Confirmed

Virtual currency businesses are regulated under the Uniform Money Services Act (ch. 19.230 RCW, WAC 208-690), administered by DFI, which has regulated virtual currency since 2014. SSB 5031 (Ch. 30, Laws of 2017, signed April 17, 2017, effective July 23, 2017) defined which virtual currency activities count as money transmission, with third-party security audits for custodians and consumer disclosures. Washington has not adopted the Uniform Law Commission's UVCBA (no source found either way; not confirmed).

Sources: DFI press release on SSB 5031 (June 14, 2017), CryptoSlate: UMSA virtual currency regime (secondary), DFI virtual currency interim guidance (seen in search results)

Crypto kiosks (ATMs) Unclear

Existing rule: DFI policy statement UMSA-24-PS01 (Jan 10, 2024) says kiosk operators must be licensed under the UMSA, report each kiosk location, and show a conspicuous pre-transaction fraud warning, with compliance by May 1, 2024 (primary source read). Bills: HB 1268 (2025) would have required licensing, disclosures, KYC and compliance staffing; hearing Jan 22, 2025 (6 for, 20 against, 2 other); listed as failed/dead Feb 14, 2025 by bitcoinlaws.io. SB 5280 (2025-26, Sen. Claudia Kauffman) would add daily limits, fee limits, disclosures and receipts; AWC reported on Feb 16, 2026 that it passed the Senate; House CPB hearings are listed Feb 18, Feb 24 and Mar 25, 2026. We could not confirm whether SB 5280 was enacted, so status is shown as bill.

Sources: DFI policy statement UMSA-24-PS01 (Jan 10, 2024), HB 1268 House bill analysis, wa-law.org: SB 5280 (hearing dates), AWC: SB 5280 summary (Feb 16, 2026), bitcoinlaws.io Washington (HB 1268 status)

Industry groups (non-governmental)

• Washington Technology Industry Association Cascadia Blockchain Council (NABA member): Industry group listed as a founding NABA member.

Sources: NABA founding members (relayed report of the January 2025 launch)

Other 2025 to 2026 actions

• 2026-10-08: DFI announced a multistate consent order with an unnamed money transmitter and crypto kiosk operator: $2.5M in penalties and costs, with alleged UMSA and BSA/AML deficiencies and net worth shortfalls; the company must stop kiosk operations in participating jurisdictions. DFI issued a Statement of Charges in Nov 2025. Reported by a law-firm blog dated Oct 15, 2026; DFI's own release was not opened.

Sources: Sheppard Mullin blog (secondary)

Source notes: This item had not received a full follow-up search at the time of review. The volunteer blockchain group's later activity after 2024 was not checked. DFI settlement is secondary-sourced.