In opposition to Assembly Bill 2269, California Governor Newsom advocated for a “more flexible approach” that would evolve while considering consumer safety and associated costs.
California’s governor Gavin Newsom refused to sign the bill
California Governor Gavin Newsom refused to sign a bill to establish a licensing and regulatory framework for digital assets, adding to the existing regulatory hurdles for the crypto ecosystems.
Assembly Bill 2269 sought to allow crypto companies in California to obtain operational licenses.
The bill was passed by the California State Assembly on September 1 with no opposition from the assembly floor and sent to the governor’s office for approval.
Opposing the idea, Newsom suggested a “more flexible approach” that would evolve while taking consumer safety and related costs into account, adding:
“It is premature to lock a licensing structure in statute without considering this work (in-house efforts to create a transparent regulatory environment) and forthcoming federal actions.”
According to the governor, the bill in its current form would necessitate a loan of “tens of millions of dollars” from the state’s general fund:
“Such a significant commitment of general fund resources should be considered and accounted for in the annual budget process.”
Before working with the Legislature to establish crypto licensing initiatives, Newsom stated that he would wait for federal regulations to “come into sharper focus for digital financial assets.”
The White House received a report from the Office of Science and Technology Policy (OSTP) on design options for 18 central banks’ digital currency (CBDC) systems in the United States.
The technical evaluation for a CBDC system in the United States highlighted OSTP’s preference for developing an off-ledger, hardware-protected system while considering the various trade-offs inherited by each design choice.
