California Governor Gavin Newsom vetoed a bill to regulate crypto in his state. He stressed that a “more flexible approach is needed” to “keep up with the rapidly evolving technology and use cases” in the crypto sector.
A bill regulating crypto in California was vetoed by Governor Newsom
Governor Gavin Newsom of California vetoeda number of bills on Friday, including Assembly Bill 2269 (AB 2269), which would establish a licensing and regulatory framework for cryptocurrencies
Assembly Bill 2269, titled “Digital financial assets business: regulation,” was introduced earlier this year by California Assemblymember Timothy Grayson; it passed the California State Senate on August 29 and the California State Assembly the following day It passed the California State Senate on August 29 and the California State Assembly the following day.
“AB 2269 establishes a licensing and regulatory framework for digital financial asset activities, administered by the Department of Financial Protection and Innovation,” the Governor elaborated, adding.
Digital assets are becoming increasingly popular in our financial ecosystem, with more consumers buying and selling cryptocurrencies each year.
and “harmonize federal and California law for companies doing business in the blockchain, including crypto assets and related financial technologies, balancing the benefits and risks to consumers and incorporating California values such as fairness, inclusiveness, and environmental protection in a transparent and consistent He referred to the Presidential Order issued on May 4 to create a “transparent and consistent business environment.
The Governor said that since the issuance of the Executive Order, his administration has conducted “extensive research and outreach” and “. . concluded that it is premature to fix the licensing structure by statute without considering future federal action.”
Some industry advocates opposed the bill. For example, the Blockchain Associationsaid the bill would “create short-sighted and unhelpful restrictions that will hinder the ability of crypto innovators to operate and drive many out of the state.” The association said, “The bill’s licensing provisions are designed to put in place the same type of burdensome licensing and reporting regime that has stifled the growth of the crypto industry in New York and limited access to secure and reliable crypto products and services.” He noted.
Governor Newsom emphasized.
A more flexible approach is needed so that regulatory oversight can be tailored to rapidly evolving technologies and use cases, with appropriate tools to address trends and mitigate consumer harm.
In addition, the California Governor noted that the bill would require “tens of millions of dollars in general fund financing for the first few years,” and stressed that “such a significant commitment of general fund resources should be considered and accounted for in the annual budget process.”
Image credit: Shutterstock, Pixabay, Wiki Commons