Financial Institutions - Digital Assets and Digital Asset Staking - Regulation (Maryland Financial Innovation Act of 2026)

HB 859, the Maryland Financial Innovation Act of 2026, prohibits state agencies and local governments from restricting certain digital asset activities, such as accepting cryptocurrency for payments, using self-hosted wallets, operating blockchain nodes, or participating in staking. It specifically clarifies that "staking as a service" (where a provider manages staking infrastructure for users) does not constitute a security under Maryland law, exempting it from securities registration requirements. The bill preserves existing authority for the Commissioner of Financial Regulation (under the Maryland Money Transmission Act) and the Attorney General’s Consumer Protection Division to enforce relevant laws. This directly affects financial institutions, crypto service providers, and consumers engaging with digital assets in Maryland, aiming to create a clearer regulatory framework for innovation.