The California legislature has passed a bill that allows companies to be licensed to provide crypto-financial services in the state. The document was sent for signature by Governor Gavin Newsom.

Press Release: California Consumer Federation Sponsored Digital Asset/Cryptocurrency License Act Sent to Governor with Strong Bilateral Support@AsmGrayson #AB2269 #CALeg pic.twitter.com/1J0mWio8xE

— California Consumer Federation (@consumercal) 30 August 2022

By September 30, Newsom must either sign or veto the bill. If approved, the document will enter into force in January 2025.

The California Digital Financial Assets Act is based on the New York State BitLicense rules introduced in 2015.

“While the innovation of cryptocurrencies is part of what makes investing exciting, it also carries risks for consumers as companies in the space are poorly regulated and don’t have to follow many of the same rules that apply to everyone,” the author wrote. Timothy Grayson of the bill.

The California document’s requirements include prohibiting issuers from issuing stablecoins that do not have bank status or have not been licensed by the State Department of Financial Protection and Innovation. The restriction will be phased out by 2028.

Another stablecoin rule requires issuers holding securities to hold them for at least the “total value of outstanding coins issued or sold in the United States.”

Overall, the bill introduces tighter regulation and supervision of the industry. The NYC BitLicense Code of Practice has been repeatedly criticized for being too strict. His action led some crypto companies to leave the state. The need to relax the rules has even been announced by the State Financial Services Authority.

The California option was opposed by the industry lobbying body Blockchain Association.

“The bill imposes unforeseen and unhelpful restrictions that will hinder the work of crypto innovators and push many out of the state,” the group said in a statement.

2/ State Assembly Bill AB 2269 imposes unsightly and unhelpful restrictions that will hinder the ability of crypto innovators to work and push many of them out of state.

This proposal is inconsistent with the Governor’s vision for crypto policy in California.

— Blockchain Association (@BlockchainAssn) 29 August 2022

Remember, in July, against the backdrop of a market crash, fed The US has called for tighter regulation and oversight of the crypto industry at the federal level.

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