California Gov. Newsom nixes crypto license bill

Quick Take

  • California Governor Gavin Newsom vetoed a bill that would create a license for companies operating in the crypto space. 
  • New York is known for its license for “virtual currency” businesses.

California Governor Gavin Newsom vetoed a bill that would have created a BitLicense-like framework for The Golden State.

Sponsored by Democrat Assemblyman Tim Grayson, Assembly Bill 2269 passed in the state senate and assembly late last month. The Digital Financial Assets Law proposed a framework for companies in the digital asset space to apply for a license to operate. 

“It is premature to lock a licensing structure,” Newsom wrote in a Sept. 23 letter to the California State Assembly. “A more flexible approach is needed to ensure regulatory oversight can keep up with rapidly evolving technology and use cases, and is tailored with the proper tools to address trends and mitigate consumer harm.”

New York already issues licenses for “virtual currency business," known as the BitLicense. Companies, including Coinbase and  Square operate in the state via the license, which has had a controversial history.

A new regulatory program is “a costly undertaking, and this bill would require a loan from the general fund in the tens of millions of dollars for the first several years,” Newsom wrote. “Such a significant commitment of general fund resources should be considered and accounted for in the annual budget process.”


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About Author

Christiana is a long-time journalist who has written about markets in the Americas, politicians who stashed cash in their underwear and high-end heels, to name just a few. She previously spent six years at Bloomberg, and her work has appeared in the WSJ, LA Times, Insider, Vogue Business and more. Christiana has a bachelor's degree in English from Pace University and a master's degree in journalism from New York University. She completed a master's degree in media psychology for fun.