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ZEC $1,143 Fidelity's $500,000 crypto settlement leaves IRAs outside wallet-transfer terms
California's deal with Fidelity Digital Assets adds notice for retail transfer changes but excludes tax-advantaged accounts such as IRAs.
Key takeaways
- Payment is $500,000. Fidelity Digital Assets agreed to pay California's attorney general that amount to settle the probe.
- IRAs are excluded. The transfer-notice terms do not cover tax-advantaged accounts, including individual retirement accounts.
- Notice is required. Fidelity must give California retail customers reasonable written notice if it stops offering transfers.
What happened
Fidelity Digital Assets agreed to pay California $500,000 to settle an investigation into past limits on crypto withdrawals. Attorney General Rob Bonta announced the deal Oct. 16. Fidelity denies wrongdoing and made no admission that it broke the law. The successor to Fidelity Digital Asset Services is Fidelity Digital Assets, National Association.
The agreement covers November 2022 through April 2025, when California retail customers could trade crypto on Fidelity but could not move it off the platform. Fidelity obtained regulatory permission in April 2025, and all California customers had the transfer feature by June 2025.
Fidelity must give California customers reasonable written notice if it stops offering retail transfers, under the deal. It can still block or limit transfers to protect its platform or account holders. Tax-advantaged accounts, including IRAs, sit outside the transfer obligations.
Why it matters
The settlement separates ordinary Fidelity Crypto accounts from retirement accounts. Fidelity's state-availability page, checked Oct. 18, still lists crypto deposits and withdrawals for regular California accounts. IRA customers face different rules.
Fidelity's current IRA FAQ lists California and Oregon as unavailable. Where the Crypto IRA is offered, direct crypto transfers and direct withdrawals of money or crypto are not allowed. Customers instead move money from the account's U.S. dollar position to a linked Fidelity brokerage IRA.
The agreement names a planned California launch for Fidelity Crypto IRA accounts without a launch date. That plan sits alongside the FAQ statement that the product remains unavailable in California.
What the data shows
- Fidelity Digital Assets agreed to a $500,000 payment to California's attorney general.
- The agreement covers November 2022 through April 2025.
- Regulatory permission arrived in April 2025.
- All California customers had the transfer feature by June 2025.
- On Oct. 18, Fidelity's state page still showed crypto deposits and withdrawals for regular California accounts.
What is still unclear
- The agreement gives no launch date for the planned Fidelity Crypto IRA in California.
- Fidelity's current IRA FAQ says the product remains unavailable in California and Oregon, so timing and availability are unclear.
Questions readers ask
What is the Fidelity crypto settlement about?
California Attorney General Rob Bonta announced a $500,000 settlement with Fidelity Digital Assets on Oct. 16. It addresses past limits on crypto withdrawals and adds a written-notice commitment for retail transfers.
Does the settlement cover Fidelity Crypto IRAs?
No. The agreement excludes tax-advantaged accounts, including IRAs, from its transfer obligations. Fidelity's current IRA FAQ also says the product is unavailable in California and Oregon.
Can California Fidelity Crypto customers withdraw crypto now?
On Oct. 18, Fidelity's state-availability page showed crypto deposits and withdrawals for ordinary Fidelity Crypto accounts in California. Fidelity can still restrict transfers to protect its platform or account holders.
When will Fidelity Crypto IRA launch in California?
The agreement says Fidelity plans to launch Fidelity Crypto IRA accounts in California but gives no launch date. Fidelity's current IRA FAQ says the product remains unavailable in California and Oregon.
