Regulating the cryptocurrency market is one of its main challenges. Many countries’ regulators are consistent in supporting the control and monitoring of crypto assets. These regulators always create laws to manage the industry and protect investors’ funds.
California and New York lead global crypto regulation. For instance, crypto companies in New York currently operate under a law mandating them to get a “BitLicense” before offering virtual asset services. Although the law is now in effect, Eric Adams, the Mayor of New York City, does not support it.
These top crypto players are not the only ones. Other States like Arizona or Wyoming also have diverse regulations.
California bill for crypto businesses and exchange
California also saw another bill like BitLicense. The “Digital Financial Assets Bill” will mandate exchanges and businesses in the industry to get a license from California regulators.
The assembly had previously passed this bill with a 71-0 vote. It was approved by the Senate and is now waiting for Gavin Newsom to sign it before September 30. Newsom opposed the bill, which was surprising considering its unfortunate nature.
Although the decision surprised regulators, the crypto community was thrilled. Newsom sent a letter to California State Assembly stating that he would vote against the bill. He stated that the bill for crypto oversight is not suitable for California.
According to the Governor, the popularity of the cryptocurrency industry is increasing every day. A transparent law should protect the residents of the State. Newsom stated that the administration has conducted research on crypto to find protections for investors.
Signing a bill that does not take into account his research is wrong. He also pointed out the fact that the federal midterm elections are in progress and must be finished first.
According to Newsom, the bill will draw tens of millions from the State’s general fund. This amount will be required in the cost-benefit analysis of the bill and will be accounted for during the State’s budgeting process.
Therefore, he recommends that the regulators not act until then and find an innovative approach to balance innovation with protection.
Digital Asset Community Celebrates
Each regulation that affects the cryptocurrency industry in some way has an impact on operations. That’s why the community applauds Newsom’s actions to keep the bill.
The Blockchain Association Jake Chervinsky applauded the Governor’s guts and strength in standing up to the State Assembly. Miles Jennings, from a16z, also praised Newsom’s support for Web3 in California.
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