Despite having until September 30th to make a choice, Newsom vetoed the legislation.
Newsom thinks his study has to be taken into account before a licensing framework.
Assembly Measure 2269, a crypto oversight bill, has been vetoed by California Governor Gavin Newsom. A unique license from the California Department of Financial Protection and Innovation was proposed.
This was needed for crypto firms and exchanges under the proposed legislation. The state senate and assembly both approved the measure unanimously (71-0). Despite having until September 30th to make a choice, Newsom vetoed the legislation.
The legislation is very similar to New York’s statute, which mandates that businesses dealing in virtual assets get a “BitLicense.” Eric Adams, the city’s current mayor, has said that this restriction hinders New York’s ability to become a center for virtual assets.
Significant Time and Energy Invested
The purpose of this law, known as the Digital Financial Assets Bill, was to establish new regulations for the crypto industry in California. California Lieutenant Governor Gavin Newsom has notified the Assembly of his decision to reject a measure that would establish regulations for the cryptocurrency industry. The Governor has spoken out against the growing use of cryptocurrency and the need for clear regulations to safeguard citizens.
Newsom said that his government has invested significant time and energy. Into studying methods to safeguard individuals from the potential dangers posed by cryptocurrency. On the other hand, Newsom thinks his study has to be taken into account before a licensing framework is written into law. In addition, the governor brings up the forthcoming federal midterm election. He proposes a more nuanced strategy that strikes a balance between security and innovation.
Newsom also discusses the bill’s potential financial benefits. He claims that the state of California will have to borrow tens of millions of dollars to pay for this measure. He thinks that a sum this large should be included in budget planning.