Fidelity's $500,000 California crypto settlement leaves IRAs out of transfer terms
In brief
- California AG Rob Bonta announced the $500,000 Fidelity Digital Assets settlement on Oct. 16.
- Fidelity must give written notice if it stops offering retail crypto transfers.
- IRAs and other tax-advantaged accounts are excluded from the transfer obligations.
- Fidelity denied wrongdoing and admitted no violation of law.
- Settlement establishes no customer compensation fund.
What the agreement covers
Bonta announced the deal on Oct. 16 over allegations about past withdrawal restrictions at Fidelity Digital Asset Services. The settling entity is Fidelity Digital Assets, National Association (the successor to Fidelity Digital Asset Services). Fidelity denied wrongdoing and entered the agreement without admitting a violation of law.
The agreement describes a period from November 2022 through April 2025 when California retail customers could buy and sell crypto on the platform but couldn't transfer it directly off the platform. Regulatory permission came in April 2025. By June 2025, the transfer feature had reached all California customers.
The $500,000 goes to the attorney general, not to customers. Fidelity agreed to pay it in recognition of investigation-related fees and costs and to settle the released potential claims, and the agreement specifies no customer compensation fund.
The notice requirement (and its limits)
If Fidelity decides to stop offering transfers as a feature for retail customers, it has to give its California customers reasonable written notice. That's the core commitment. It doesn't take away Fidelity's ability to restrict or disallow transfers to protect its platform or individual account holders.
Fidelity's state-availability page, which CryptoSlate checked on Oct. 18, still listed crypto deposits and withdrawals for ordinary Fidelity Crypto accounts in California.
Why IRAs sit outside
The agreement expressly excludes covered tax-advantaged accounts from the transfer obligation, including IRAs and accounts subject to federal requirements for nontaxable transfers between retirement accounts.
Right now, Californians can't open the product that exclusion would cover.
The agreement says Fidelity plans to launch Fidelity Crypto IRA accounts in California, but it doesn't give a launch date. CryptoSlate reported that Fidelity's IRA FAQ says the product remains unavailable in California and Oregon. In states where Fidelity offers Crypto IRAs, crypto transfers aren't available and customers can't withdraw money or crypto directly from the account. They can move money from the account's U.S. dollar position to a linked Fidelity brokerage IRA instead, then use that account's withdrawal features.
Frequently asked questions
What does Fidelity's California crypto settlement require?
Fidelity Digital Assets has to give its California customers reasonable written notice if it decides to stop offering crypto transfers as a feature for retail customers. It can still restrict or disallow transfers to protect its platform or individual account holders.
Is the $500,000 payment going to Fidelity customers?
No. Fidelity agreed to pay the California attorney general $500,000 in recognition of investigation-related fees and costs and to settle the released potential claims. The agreement specifies no customer compensation fund, and Fidelity denied wrongdoing.
Do the settlement's transfer terms apply to crypto IRAs?
No. The agreement expressly excludes covered tax-advantaged accounts, including IRAs, from the transfer obligation. According to Fidelity's FAQ as reported by CryptoSlate, the Fidelity Crypto IRA remains unavailable in California and Oregon, and where it's offered, customers can't transfer crypto or withdraw directly from the account.
