California Governor Newsom Vetoes Crypto Licensing and Regulatory Framework
Opposing Assembly Bill 2269, Newsom recommended a "more flexible approach" that would evolve over time while still taking into account consumer safety and associated costs.< /p>
New
Adding 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 Bill 2269 sought to authorize the issuance of operational licenses for crypto companies in California. On September 1, the California State Assembly passed the bill without any opposition from the assembly and forwarded it to the governor's office for approval.
Refusal letter from Governor Mewsom. Source: leginfo.legislature.ca.govOpposing this idea, Newsom recommended a "more flexible approach" that would evolve over time while taking into account consumer safety and associated costs, adding:< /p>
"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 must be considered and accounted for in the annual budget process.”
Newsom stressed that he expects federal regulations to “focus more on digital financial assets…
Opposing Assembly Bill 2269, Newsom recommended a "more flexible approach" that would evolve over time while still taking into account consumer safety and associated costs.< /p>
New
Adding 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 Bill 2269 sought to authorize the issuance of operational licenses for crypto companies in California. On September 1, the California State Assembly passed the bill without any opposition from the assembly and forwarded it to the governor's office for approval.
Refusal letter from Governor Mewsom. Source: leginfo.legislature.ca.govOpposing this idea, Newsom recommended a "more flexible approach" that would evolve over time while taking into account consumer safety and associated costs, adding:< /p>
"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 must be considered and accounted for in the annual budget process.”
Newsom stressed that he expects federal regulations to “focus more on digital financial assets…
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