The California Assembly did not support a bill to regulate digital assets for the South Coast of the United States, similar to the New York BitLicense.
The chief executive of the state, Gavin Newsom, said that it would be premature to create a licensing regime without taking into account feedback on his own decree N-9-22, which is designed to make California the first state to create a transparent regulatory environment for cryptocurrencies. According to the governor, the decree promotes innovation and protects consumers using financial services and products with digital assets.
Newsom drew attention to the fact that the veto was imposed in the context of a rapidly changing picture of federal regulation:
"Over the past few months, my administration has conducted extensive research and outreach to gather information on approaches that balance benefits and risks for consumers, are consistent with federal regulations, and take into account California values such as fairness, inclusivity, and environmental protection."
He pointed to the possibility of adopting a federal law or some general rules for regulating cryptocurrencies in the future:
"A more flexible approach is needed so that regulatory oversight can keep pace with rapidly evolving technologies, as well as use appropriate tools to take into account trends and reduce harm to consumers."
Newsom warned that the new regime of licensing and regulation of cryptocurrencies will require a multimillion-dollar loan, which was not taken into account in the annual budget of California.
Recall that the bill of state assemblyman Timothy Grayson was supposed to create a licensing regime for everyone who hopes to facilitate cryptocurrency transactions, like how money transfers are now controlled by law, was submitted for signature to the governor of California in early September.