California Governor Newsom vetoes crypto licensing and regulatory framework

Adding to existing regulatory hurdles for the crypto ecosystem, California Governor Gavin Newsom has refused to sign legislation that would establish a licensing and regulatory framework for digital assets.

Assembly Bill 2269 sought to grant operating licenses to crypto companies in California. On September 1, the California State Assembly passed the bill with no opposition from the floor and went to the governor’s office for approval.

A rejection letter from the government. Source:

Opposing the proposal, Newsom recommended a “more flexible approach” that would evolve over time, taking into account consumer safety and related costs:

“It is overdue to lock down the licensing structure by law without considering this work (efforts to create a transparent regulatory environment at home) and upcoming federal actions.”

The governor said the bill, in its current form, would require borrowing “tens of millions of dollars” from the state’s general fund.

“Such a significant commitment of general fund resources should be considered and considered in the annual budget process.”

Newsom said he expects federal regulations to “pay more attention to digital financial assets” before working with the legislature to establish crypto licensing initiatives.

Related: Biden’s anemic crypto framework has given us nothing new.

The Office for Science and Technology Policy (OSTP) presented the White House with an analysis of design options for 18 central bank digital currency (CBCC) systems for the United States.

A technical review of the US CBCC system highlights OSTP’s tendency to build a lead-hardware-protected system, taking into account the various tradeoffs inherited by each design choice.