California Gov. Newsom explains veto of NY-styled BitLicense crypto business bill
California Governor Gavin Newsom on Sept. 23 dismissed Assembly Bill-2269 Digital Financial Assets Business: Regulation – Crypto Regulatory Framework.
AB-2269 sets out certain requirements for cryptocurrency businesses, including applying for a license to operate within the state, the obligation to operate a 24-hour customer service phone line, and the protections inherent in stablecoin flows. increase.
however, letter From the governor’s office, Newsom said he wants California to remain.a Competitiveness place for enterprise To investment When innovate. “
What is AB-2269?
The bill passed the state legislature on August 30, 71-0, in favor of “Eyes.” Like New York’s BitLicense, AB-2269 required crypto businesses operating in the state, including exchanges, to register. Financial Protection and Innovation Division.
Under the law, cryptocurrency businesses are required to maintain customer records detailing user activity, thus imposing an administrative burden on those businesses.
“[The bill] Licensee shall maintain, for a period of five (5) years from the date of activity, for all digital financial asset business activities with or on behalf of a resident, a specific ledger containing a general ledger posted at least monthly listing all assets, liabilities. Records must be kept. , Licensee’s capital, income and expenses.
In addition to general provisions, the bill also covered regulations on other items such as licenses, inspection of records, enforcement, disclosure and protection, prohibited cryptoassets, documentation of policies and procedures, and definitions. .
Newsom Explains Why Crypto Businesses Don’t Need California Oversight
Newsom wrote that he supports the idea of protecting Californians from potential economic harm through a clear legislature that governs cryptocurrency businesses in the state.
However, the governor thought it was overkill considering the bill was passed. Executive order N-9-22 In his view, it achieves the same goal as the rejected bill.
“upon May Four, 2022, Issued Executive order N-9-22 To location california that’s why of first time state To Establish transparent regulations environment that both nurture responsible innovation, When protect the consumer Who use digital asset finance service When product. “
He went on to say that the licensing structure is “premature” without considering the consequences of upcoming federal actions regarding crypto assets.
Rejecting AB-2269 thereby allows for a more flexible and cost-effective approach to this problem.
