California Governor Vetoes Cryptocurrency Licensing Bill

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The California Assembly did not support a bill to regulate digital assets for the US South Coast, similar to New York's BitLicense.

State Chief Executive Gavin NewsomGavin Newsom said it would be premature to create a licensing regime without taking into account feedback on its own Executive Order N-9-22, which aims to make California the first state to create a transparent regulatory environment for cryptocurrencies. The governor said the order promotes innovation and protects consumers using financial services and digital asset products.

Newsom noted that the veto came in the context of a rapidly changing federal regulatory landscape:

"Over the past few months my"The Administration has conducted extensive research and outreach to gather information on approaches that balance benefits and risks for consumers, are consistent with federal regulations, and respect California's values ​​of equity, inclusion and environmental protection."

He pointed to the possibility of adopting a federal law or some general rules for regulating cryptocurrencies in the future:

“A more flexible approach is needed toRegulatory oversight can keep pace with rapidly evolving technologies, while also using the right tools to address trends and reduce harm to consumers.”

Newsom warned that the new licensing and regulatory regime for cryptocurrencies would require a multimillion-dollar loan that was not accounted for in California's annual budget.

Let us remind you that the bill of the member of the AssemblyTimothy Grayson's proposed licensing regime for anyone hoping to facilitate cryptocurrency transactions, similar to how money transfers are currently controlled by law, was submitted to California's governor for signature in early September.