- The Governor of California, Gavin Newsom has rejected a bill that would have made a structure as similar as BitLicense for the Golden State.
- BitLicense is a law that was imposed in the state of New York in 2015. At that time, it was an indicator to indulge in crypto-related activities.
Funded by Democrat Assemblyman Tim Grayson, Assembly Bill 2269 was issued in the state senate and assembly in August 2022. The Digital Finance Asset Law offered a structure for various organizations in the crypto industry space to have a license for further functionality.
“It will be too early to lock a licensing framework in statute without acknowledging both this work and upcoming federal acts. One more volatile approach is required to make sure regulatory errors can keep up with quickly involving technology and its use cases, and is customized with the right tools to denote trends and reduce users’ damage.”
New York has so far passed licenses for digital currency business commonly referred to as BitLicense. Organizations such as Coinbase and Square run in the state after having the license, which was criticized widely for changing the crypto landscape in the state. Witnessing many years of criticism along with complaints, state regulators finally changed the bill in June 2020.
If the governor of California has signed the bill into the act, it may have identified crypto transactions as formal money transactions. This may successfully bring cryptos under the attention of the Money Transmission Act. Moreover, the proposed bill would have limited bodies licensed by the state of California from communicating with stablecoins.
The new regulatory framework is an expensive agreement and this bill will eventually need a loan from the general capital in the tens of millions of dollars for the first many years,” according to Newsom. “This type of important commitment of normal fund resources must be acknowledged and considered in the budget process annually.”
Source: https://www.thecoinrepublic.com/2022/09/25/california-government-rejected-crypto-license-bill/