California’s governor has signed a bill that aims to create a new regulatory framework for digital assets.
Governor Gavin Newsom recently signed Assembly Bill 39, which establishes digital financial assets law.
The legislation requires the Department of Financial Protection and Innovation (DFPI) to “create a robust regulatory framework, including licensing and enforcement authority, for certain crypto activities.”
The bill also gives the DFPI regulatory authority over crypto regulation, along with an 18-month implementation timeline for a framework.
Says Nieuwsom,
“The ambiguity of certain terms and the scope of this bill will require further refinement in both the regulatory process and statute to provide clarity for both consumers, regulators and businesses subject to this new licensing framework.
It is essential that we find the right balance between protecting consumers from harm and promoting responsible innovation, and I look forward to working with the author to achieve this.”
Newsom signed an executive order last May asking lawmakers to create a regulatory framework that encourages blockchain innovation while protecting consumers.
The governor said the order, which he noted builds on President Biden’s crypto-focused executive order, will help California leverage blockchain technology for the public good.
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Featured image: Shutterstock/Jorm S/Modvector