CryptoSlate
Fidelity Digital Assets agreed to a $500,000 settlement with California over allegations that retail customers faced withdrawal restrictions between November 2022 and April 2025. California Attorney General Rob Bonta announced the agreement on Oct. 16, which requires written notice if Fidelity stops offering ordinary retail crypto transfers. The deal excludes tax-advantaged accounts, including Fidelity Crypto IRAs, from that transfer obligation.
Why it matters
California customers gained access to external-wallet transfers by June 2025 after regulatory permission arrived in April. Fidelity can still restrict or disallow transfers to protect its platform or individual account holders, but the settlement establishes a notice requirement if ordinary retail transfers are discontinued.
The agreement does not create a customer compensation fund. Fidelity denies wrongdoing and entered the settlement without admitting a violation of law. The settling entity, Fidelity Digital Assets, National Association, is the successor to the entity covered by the allegations.
Market impact
The most consequential distinction is between ordinary Fidelity Crypto accounts and retirement accounts. Fidelity plans to launch Crypto IRA accounts in California, but the agreement gives no launch date. Fidelity’s current IRA FAQ lists the product as unavailable in California and Oregon.
Where Fidelity Crypto IRAs are offered, customers cannot withdraw crypto or money directly from the account. They must move dollars from the account’s U.S. dollar position to a linked Fidelity brokerage IRA and use that account’s withdrawal features. The settlement therefore improves clarity for retail wallet transfers without extending the same protection to IRA holders.
Frequently asked questions
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What does Fidelity’s California settlement require for retail crypto transfers?
Fidelity must provide California customers with reasonable written notice if it stops offering ordinary retail crypto transfers.
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Which Fidelity accounts are excluded from the transfer obligation?
Tax-advantaged accounts, including Fidelity Crypto IRAs and accounts subject to federal rules for nontaxable retirement transfers, are excluded.
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When did California Fidelity customers gain external-wallet transfers?
Regulatory permission arrived in April 2025, and the transfer feature reached all California customers by June 2025.
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Are Fidelity Crypto IRAs available in California and Oregon?
No. Fidelity’s current IRA FAQ lists the product as unavailable in California and Oregon, although the company plans a California launch without stating a date.
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Can customers withdraw crypto directly from a Fidelity Crypto IRA?
No. Where Fidelity Crypto IRAs are offered, customers cannot withdraw money or crypto directly and must move dollars to a linked Fidelity brokerage IRA first.
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