Backtracking for Bitcoin – Crypto Licensing Veto for California Governor

One step forward, two steps back! – Legislative advances are sometimes complicated to implement. To fully grasp the merits of a bill, you have to have many elements in mind, and the financial aspect is the main one.

It’s still too early for California

New York has been licensing “crypto” companies for years. called BitLicenseit allows companies to use “virtual currencies”, such as Coinbase or even Square who have held it for a few months now.

The idea of ​​doing the same for the State of California seduced theAssemblythen the Senateall carried in a project sponsored by Tim GraysonDemocratic member of the Assembly.

But the Governor of California, Gavin Newsomused his right of veto to abort The law projectwhich he finds too hasty. “It is premature to lock in a licensing structure he announced in a letter to the assembly on September 23. ” I return Bill 2269 without my signature “.

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Regulation yes, but you have to take the time

According to the governor, it is therefore too early to set this kind of framework.

A more flexible approach is needed to ensure regulatory oversight can keep up with rapidly changing technology and use cases, and is scaled with the right tools to respond to trends and mitigate consumer harm..”

He also specifies that this kind of project needs to be supervised, both in terms of regulations and finances.

A new regulatory program is a costly undertaking, and this bill would require a loan from the general fund of several tens of millions of dollars for the first years. […] Such a large commitment of General Fund resources should be factored into the annual budget process.»

Gavin Newsom – Governor of California

The California is a very open state on the subject of cryptos, and blockchain in general. Undoubtedly, a regulation will arrive in the months (years) which come, in order to supervise the companies correctly, and to help them to be implemented correctly.

The time for state interest in Bitcoin and cryptos has come. And you, what are you doing to prepare for the future? Start getting acquainted with this exciting world, and don’t wait any longer for yourself create an account on Binancethe reference Bitcoin and crypto exchange (commercial link).

John R. Zepeda

I have extensive experience working as a content writer in the areas of cryptocurrencies and finance, where I create interesting pieces that both inform and engage their audiences.

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