Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.
California Governor Newsom Vetoes Bill to Regulate Crypto – Calls for ‘More Flexible Approach’ – Bitcoin Regulation News
California Governor Gavin Newsom has vetoed a bill to regulate crypto in his state. He emphasized that “a more flexible approach is needed” to “keep pace with rapidly evolving technology and use cases” in the crypto sector.
Bill to regulate crypto in California vetoed by Governor Newsom
The governor of the US state of California, Gavin Newsom, vetoed a number of bills on Friday, 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 Assembly member Timothy Grayson. It passed the California State Senate on August 29 and the California State Assembly the next day.
“AB 2269 will establish a licensing and regulatory framework, administered by the Department of Financial Protection and Innovation, for digital financial asset activity,” the governor said, adding:
Digital assets are becoming increasingly popular in our financial ecosystem, with more consumers buying and selling cryptocurrencies every year.
He then referred to the executive order he issued on May 4 to create “a transparent and consistent business environment for companies operating in blockchain, including cryptoassets and related financial technologies, that harmonizes federal and California laws, balances the benefits and risks for consumers, and incorporates California values, such as equity, inclusion and environmental stewardship.”
The governor explained that since issuing the executive order, his administration has conducted “extensive research and outreach” and has come to the conclusion that “It is premature to lock a licensing structure into statute without considering … upcoming federal actions.”
Some industry advocates opposed the bill. The Blockchain Association, for example, so the bill “creates short-term and unhelpful restrictions that will hinder crypto innovators’ ability to operate and push many out of state.” The organization noted that “The bill’s licensing provisions are designed to install the same type of burdensome licensing and reporting regime that has stunted the growth of the crypto industry and limited access to safe and reliable crypto products and services in New York.”
Governor Newsom emphasized:
A more flexible approach is needed to ensure that regulatory oversight can keep pace with rapidly evolving technology and use cases, and is tailored with the right tools to address trends and reduce consumer harm.
Furthermore, the California governor pointed out that the bill “would require a loan from the general fund in the tens of millions of dollars in the first few years,” stressing that “such a significant commitment of general fund resources should be considered and accounted for in the annual budget process.”
What do you think of California Governor Newsom calling for “a more flexible approach” to overseeing the crypto sector? Let us know in the comments section below.
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