Home Technology California Governor Newsom Vetoes Crypto Licensing and Regulatory Framework

California Governor Newsom Vetoes Crypto Licensing and Regulatory Framework

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California Governor Newsom Vetoes Crypto Licensing and Regulatory Framework

In addition to existing regulatory hurdles for crypto ecosystems, California Governor Gavin Newsom has refused to sign a bill that would establish a licensing and regulatory framework for digital assets.

Assembly Invoice 2269 sought to authorize the issuance of operational licenses for crypto companies in California. On September 1, The California State Assembly passed the bill unopposed. of the meeting and went to the governor’s office for approval.

Rejection letter from Governor Mewsom. Source: leginfo.legislature.ca.gov

Opposing the notion, Newsom recommended a “more flexible approach” that would evolve over time while taking into account consumer safety and associated costs, adding:

“It is premature to lock a licensing structure into law without considering both this work (internal efforts to create a transparent regulatory environment) and future federal actions.”

The governor said the bill, in its current form, would require the loan of “tens of millions of dollars” from the state’s general fund:

“Such a large commitment of general fund resources should be considered and accounted for in the annual budget process.”

Newsom stressed that he expects federal regulations to “focus more on digital financial assets” before working with the legislature to establish crypto licensing initiatives.

Related: Biden’s anemic crypto framework offered us nothing new

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