The California Governor has refused to sign a bill that would create the licensing and regulatory framework for crypto companies.
Earlier this year, California Governor Gavin Newsom signed a decree to create a transparent regulatory framework and business environment in the state. The state also stated that stakeholder feedback will also be gathered with federal authorities to establish crypto-asset regulations. After a long time, the bill that came to the parliament received a negative response from Newsom.
California Governor Proposes More Flexible Regulation
California Governor Gavin Newsom has vetoed a bill that would create licenses for companies operating in the crypto space.
Opposing House Act 2269, Newsom proposed a more flexible approach that has been developed over time, keeping in mind the safety of consumers and the associated costs.
Stating that the bill in its current form would require tens of millions of dollars in loans from the state’s general fund, Newsom said:
“It is premature to fix a licensing structure in statute without considering both this work (internal efforts to create a transparent regulatory environment) and future federal action. General funding sources should be considered and accounted for in the annual budget process for such an important commitment.”
Newsom also highlighted that he expects federal regulations to become a sharper focus for digital financial assets before working with the Legislature to create crypto licensing initiatives.
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