Opposing Assembly Bill 2269, Newsom recommended a βmore flexible approachβ that would evolve over time while considering the safety of consumers and related costs.
Adding to the existing regulatory hurdles for the crypto ecosystems, California Governor Gavin Newsom refused to sign a bill that would establish a licensing and regulatory framework for digital assets.
Assembly Bill 2269 sought to allow the issuance of operational licenses for crypto companies in California. On Sept. 1, California State Assembly passed the bill with no opposition from the assembly floor and went on to the governorβs office for approval.
Letter of rejection from Gov. Mewsom. Source:Β leginfo.legislature.ca.gov
Opposing the notion, Newsom recommended a βmore flexible approachβ that would evolve over time while considering the safety of consumers and related costs, adding:
βIt is premature to lock a licensing structure in statute without considering bothΒ this work (in-house efforts to create a transparent regulatory environment) and forthcoming federal actions.β
The governor stated that the bill, in its current form, would require loaning βtens of millions of dollarsβ from the stateβs general fund:
βSuch a significant commitment of general fund resources should be considered and accounted for in the annual budget process.β
Newsom highlighted that he waits for federal regulations to βcome into sharper focusΒ for digital financial assetsβ before working with the Legislature to establish crypto licensing initiatives.
Related: Biden’s anemic crypto framework offered us nothing new
The Office of Science and Technology Policy (OSTP) submitted an analysis to the White House regarding design choices for 18 central bank digital currency (CBDC) systems for the United States.
The technical evaluation for a U.S. CBDC system highlighted OSTPβs inclination toward building an off-ledger, hardware-protected system while considering the various trade-offs inherited by each design choice.
