Breaking: California Gov Gavin Newsom Signs Crypto Regulation Bill
California Governor Gavin Newsom on Friday signed the bill to regulate crypto in the state. The California legislature passed the crypto bill in August that would regulate the state’s cryptocurrency industry, which is home to almost a 25% of the blockchain and digital asset companies in North America. It’s their second try. Last year, Gov. Gavin Newsom vetoed a similar bill.
California Gov Signs Bill To Regulate Crypto In State
California Governor has signed a crypto bill into law, according to a Bloomberg Law report on October 14. The law primarily requires crypto companies to obtain a license to operate in the state.
The crypto regulation bill was passed by the California legislature on August 31. California lawmakers saw an urgent need for crypto rules after last year’s collapse of the FTX crypto exchange and other turmoil in the broader market.
Gavin Newsom is one of the Democratic Party’s most prominent promoters and defenders of blockchain and crypto technologies. An earlier bill was vetoed by Gov. Gavin Newsom as it was similar to New York’s BitLicense regulation, which is considered one of strict crypto regulation.
The law is expected to go into effect in January 2025. It expands crypto regulatory aspects to stablecoins. It must be issued by a bank or licensed by the California Department of Financial Protection and Innovation. The market value of stablecoin is computed using the generally accepted accounting principles (GAAP) of the US.
Congress Working on Crypto Regulatory Framework
The chambers of the US Congress have introduced several bills to regulate crypto in the US. The crypto industry has blasted the government and regulators for lack of crypto clarity amid crackdowns by the U.S. SEC and other regulators. However, the crypto bills are delayed by lawmakers.
The crypto bill also provides clarity on whether the SEC or the CFTC has authority to regulate the crypto industry in the US.
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