The governor of California Green signalled a crypto regulation bill that will regulate the crypto business in California.
California is a state in the Western United States with over 38.9 million residents. Gavin Newsom is the current governor of California & he is also the commander-in-chief of the state’s military forces. He has been in the office since 2019.
On 13 Oct 2023, California’s Governor Newsom declared a bill titled the ‘Digital Financial Assets Law. This will be mandatory for both individuals and companies to obtain a Department of Financial Protection and Innovation (DFPI) license to participate in crypto-related business activities.
As per available information in the bill, it will come into effect by 1 July 2025.
Under this approved bill all the crypto companies will go through a strict auditing procedure to ensure crypto-related financial activities under full safety & security.
If any crypto company is found to operate crypto services in the jurisdiction of California without DFPI then enforcement agencies will take strict action.
According to California’s governor, this crypto bill is not flexible enough to handle the fast-growing sector but it was necessary to bring this bill, as it took a huge time for the Federal agencies to bring a regulation framework for this sector.
It is worth it to note that currently a crypto bill prepared by US Senator Cynthia Lummis & some other lawmakers is waiting to get attention to get passed so that US financial regulators can regulate the crypto sector under precise rules & laws. So here we can say that at a small level, many leaders in America want to support the crypto sector via the regulation framework.
Some experts believe that the US will propose a new crypto bill to regulate the whole crypto market under a single framework, somewhere in 2024. Crypto proponents are optimistic ahead of the US presidential election which will bring a bitcoin-friendly president to the country.