California Governor Signs Bill to Establish Regulatory Framework for Digital Assets
The governor of California, Gavin Newsom, has approved a new bill that aims to establish a regulatory framework for digital assets. Assembly Bill 39, also known as the Digital Financial Assets Law, requires the state’s Department of Financial Protection and Innovation (DFPI) to develop a comprehensive regulatory framework for certain crypto activities.
The legislation grants the DFPI rulemaking authority over crypto regulation and sets an 18-month timeline for implementing the framework. Governor Newsom acknowledges that further refinement is needed to provide clarity to consumers, regulators, and businesses subject to the new licensure framework.
Encouraging Blockchain Innovation While Protecting Consumers
In May 2021, Governor Newsom issued an executive order urging lawmakers to create a regulatory framework that supports blockchain innovation while safeguarding consumers. The governor believes that leveraging blockchain technology for public good aligns with President Biden’s crypto-focused executive order.
Hot Take: California Takes Steps Towards Crypto Regulation
The signing of Assembly Bill 39 by Governor Gavin Newsom is a significant development for the cryptocurrency industry in California. With this new legislation, the state aims to establish clear guidelines and oversight for digital assets, striking a balance between consumer protection and fostering innovation. The creation of a regulatory framework will provide greater clarity and legal certainty for individuals and businesses involved in crypto activities within California. This move by California reflects the growing recognition of digital assets and the need for robust regulation in this evolving space.
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