California Governor Gavin Newsom vetoed a bill that would require crypto financial-service businesses to get a special license to operate, calling it premature and costly. Bloomberg reports: Newsom on Friday declined to sign the legislation known as the Digital Financial Assets Law, which was passed by the state assembly and senate last month. While the governor said he shares the bill’s intent to protect Californians from financial harm and provide clear rules for the industry, his administration has been conducting research and gathering input on the right approach. The bill would require a loan of “tens of millions of dollars” from the general fund during the first several years, a “significant” commitment that needs to be accounted for in the state’s annual budget process, Newsom added.
“It is premature to lock a licensing structure in statute without considering both this work and forthcoming federal actions,” Newsom said in a statement. “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.”
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