California Governor Gavin Newsom has vetoed a bill to regulate cryptocurrencies in his state. He stressed the need for a more flexible approach in the crypto sector to “keep up with the rapidly evolving technology and use cases.”
A bill to regulate crypto in California was rejected by Governor Newsom
California Governor Gavin Newsom on Friday vetoed several bills, including Assembly Bill 2269 (AB 2269) that would establish a licensing and regulatory framework for cryptocurrency.
Assembly Bill 2269, titled “Digital Financial Asset Businesses: Regulation,” was introduced earlier this year by California Assemblyman Timothy Grayson. In the year 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 activity administered by the Department of Financial Protection and Innovation.
With more consumers buying and selling cryptocurrencies every year, digital assets are becoming more popular in our financial ecosystem.
He then cited his May 4 executive order “to create a transparent and consistent business environment for companies operating in blockchain, including crypto-assets and related financial technologies, that harmonizes federal and California laws, balances benefits and risks for consumers, and promotes California’s principles of fairness, inclusion, and environmental protection.” Includes values.
The governor explained that since the executive order was issued, the administration has conducted “extensive research” and has come to the conclusion that “it is premature to lock down the licensing structure by law … future federal action.”
Some industry advocates opposed the bill. Blockchain Association For example: he said. The bill “creates short-sighted and unhelpful restrictions that stifle the ability of crypto creators to operate and drive many out of state.” “The bill’s licensing provisions are designed to impose the same burdensome licensing and reporting system that has hindered the growth of the crypto industry and limited access to safe and secure crypto products and services in New York,” the organization said.
Governor Newsom emphasized:
A more flexible approach is needed to ensure that regulatory oversight keeps pace with rapidly evolving technologies and is tailored with appropriate tools to exploit issues and address trends and address consumer harm.
California’s governor also noted that the bill would require tens of millions of dollars in general fund loans for the first several years. During the annual budget process.
What do you think of California Governor Newsom’s call for a “flexible approach” to regulating the crypto sector? Let us know in the comments section below.
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