Gavin Newsom rejected legislation that proposed a licensing system to operate in the market.
Gavin NewsomGovernor of California, vetoed a local bill intended to regulate the cryptocurrency market. It was an initiative that consisted of official licenses for businesses and individuals to mine digital assets and, according to the pro-crypto governor, it was not too favorable to the industry.
“Digital Financial Assets Business: regulation”: this is the name of the bill introduced several months ago by the California Assembly and which has just been vetoed by Newsom. It required a license requested from the California Department of Financial Protection and Innovation (DFAI) operate in the market and required companies to have a customer activity history of at least 5 years.
newsom, which has already expressed on several occasions its attachment to emerging technologies and its desire to achieve “flexible” regulation, considered that the project would be too costly for the State. In this sense also urged local authorities to work on more flexible rules “keep up with the rapidly changing technologies and use cases of digital assets”.
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“I am committed to working with the Legislative Assembly to achieve adequate regulatory clarity once federal regulation focuses more on digital financial assets and to ensure that California remains a competitive place for companies to invest and innovate. »the governor added in his statement.
California, protagonist of the global crypto scene
Earlier this year, Newsom introduced an executive order on the crypto market in his state, where he noted that was home to nearly a quarter of all North American blockchain companies. At that time, he and his administration made it clear that they intended to transforming California into a global hub for blockchain technology.
As some of its officials explained at the time, among the avenues considered are the abolition of intermediaries in real estate or automobile transactions, or even identity protection services.
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