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Will Gavin Newsom pass the bill regarding licensing and regulating crypto firms?

  • News
  • September 1, 2022
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Lawmakers in the California State Assembly passed the Digital Financial Assets Act, also known as AB 2269, on Tuesday, August 71-0. 30. The bill is now in the hands of state governor Gavin Newsom, who will either introduce it or veto it.

This bill would require digital asset exchanges and crypto companies to have an operating license issued by the state of California’s Department of Financial Protection and Innovation. Any operations outside of said license will be prohibited. It would come into effect on and after Jan. 1, 2025.

Violators may receive a civil penalty of up to $100,000 for each day of violation.

Assemblyman Timothy Grayson (D-Concord), who sponsored the bill, previously stated he understands the concerns around cryptocurrencies and digital assets.

“I’m impressed by the market’s ability to help consumers feel empowered to make financial investments and participate in a system that has, in many cases, felt closed off to them.”

Currently, the law in place in the state of California is the Money Transmission Act. This law prohibits the business of money transmission without a valid license from the Commissioner of Financial Protection and Innovation.

If announced, the new bill would also authorize the department to conduct inquiries of a licensee, among other things.

Regulators in California are actively exploring crypto space. In May, Newsom signed an executive order to streamline the federal and state regulatory framework for blockchain.

State lawmakers have urged consumers to take “extreme caution“ when dealing with cryptocurrency accounts.

 A new survey by CoinGecko shows that the state of California is the most interested in Bitcoin (BTC) and Ether (ETH) according to online search.

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