California State Kills Main Crypto Bill, Why?
One of the pressures in the crypto market is regulation. Many
countries’ regulators are consistent in supporting the control and
monitoring of crypto assets. These regulators always create laws to
manage the industry and protect investors’ funds. California and
New York are taking the lead in global crypto regulations. For
instance, crypto companies in New York currently operate under a
law mandating them to get a “BitLicense” before offering virtual
asset services. The law has become operational in the State,
although the current mayor Eric Adams is not supportive of the law.
Related Reading: Dogecoin (DOGE) Is On Top Of Whales’ Menu – Here’s
Why But apart from these top players, other States such as Arizona
and Wyoming are also coming up with diverse crypto regulations.
California Bill For Crypto Businesses And Exchange Another bill,
like the BitLicense law, emerged in California. The “Digital
Financial Assets Bill” will mandate exchanges and businesses in the
industry to get a license from California regulators. This bill had
earlier passed the assembly with a 71-0 vote. It also gave the
senate and now awaits the Governor, Gavin Newsom, to sign it by
September 30. Unfortunately, but surprisingly, Newsom vetoed the
bill. The decision has surprised the regulators, but the crypto
community is thrilled about it. Newsom wrote to the California
State Assembly, stating that he would veto the bill. According to
him, the crypto oversight bill is unsuitable for the State. The
Governor believes that the crypto industry is gaining more
popularity by the day. As such, there should be a transparent law
protecting the citizens of the State. To achieve that, Newsom
mentioned that his administration had researched the crypto
industry to uncover protective approaches for investors. Therefore,
signing a bill without cognizance of his research will be wrong.
Also, he pointed out that the federal mid-term election is in the
pipeline and should be completed first. Related Reading: Can WAVES
Flow Back From Its Low Ebb And Reclaim $4.6? According to Newsom,
the bill will draw tens of millions from the State’s general fund.
This amount will be required in the cost-benefit analysis of the
bill and will be accounted for during the State’s budgeting
process. So, he suggests that the regulators wait for now and
develop a flexible approach to strike a balance between innovation
and protection. The Digital Asset Community Rejoices Every
regulation in the crypto industry affects operations in one way or
another. That’s why the community applauds Newsom’s actions to keep
the bill. The Blockchain Association Jake Chervinsky applauded the
Governor’s guts and strength in standing up to the State Assembly.
Also, Miles Jennings from a16z praised Newsom for his support of
Web3 in California. Featured image from Pixabay, chart from
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