The California legislature has just approved a bill that provides for the licensing of companies to provide crypto-financial services in the state.
The document has been sent for Governor Gavin Newsom’s signature. By September 30, Newsom must either sign the bill or veto it. If it is approved, the document will enter into force in January 2025.
The California Digital Financial Assets Act is based on the New York State BitLicense rules introduced in 2015.
Timothy Grayson, the author of the bill, has said:
“While the novelty of cryptocurrencies is part of what makes investing exciting, it also carries risks for consumers as companies in the space are not adequately regulated and do not have to follow many of the same rules that apply to everyone else.”
The document includes a ban on the issuance of stablecoins by issuers that do not have the status of a bank or have not received a license from the State Department of Financial Protection and Innovation.