- It makes it clear that companies that don’t follow the law will be punished.
- The DFPI will have the authority to mandate extensive auditing of crypto enterprises.
The cryptocurrency bill signed into law by California Governor Gavin Newsom imposes harsher controls on enterprises engaging in crypto activities beginning in July 2025. According to a statement released by Newsom on October 13th, the measure would require people and businesses to be licensed by the Department of Financial Protection and Innovation (DFPI) before they may deal in digital assets.
Legislation papers make reference to California’s money transmission rules, which make it illegal for financial institutions to process money transfers or provide banking services without a license from the DFPI commissioner.
Stringent Compliance
However, with the passage of the new crypto law, the DFPI will have the authority to mandate extensive auditing of crypto enterprises and the maintenance of detailed records.
The statement mentioned:
“[This bill] would require a licensee to maintain […] for 5 years after the date of the activity, certain records, including a general ledger maintained at least monthly that lists all assets, liabilities, capital, income, and expenses of the licensee.”
It makes it clear that companies that don’t follow the law will be punished. A similar law that sought to create a licensing and regulating framework for digital assets in California was vetoed by Newsom about this time in 2022.
The law had unanimous support in the California State Assembly, but Governor Newsom said he was returning it “without my signature.”
Newsom said that the law was too rigid to adapt to the dynamic nature of the cryptocurrency market. The Governor has previously claimed that he was holding off on engaging with the legislature to develop crypto licensing measures until federal standards were in place.
Highlighted Crypto News Today:
MetaMask App Briefly Removed; Then Reinstated on Apple App Store
Source: https://thenewscrypto.com/california-governor-signs-crypto-bill-imposing-tough-regulations/