Governor Gavin Newsom Vetoes California "BitLicense" Bill

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Governor Gavin Newsom; Photo Source: Newsweek.

Newsom's letter to the California Assembly said, “It is premature to lock a licensing structure in statute without considering both this work (findings on his administration’s research) and forthcoming federal actions.”

California Governor Gavin Newsom has vetoed ‘Assembly Bill 2269,’ a crypto licensing and regulation bill seen as a possible imitator of New York's "BitLicense."

The bill, sponsored by Assemblymember, Tim Grayson, aimed to create a licensing regime for anyone hoping to facilitate crypto transactions, similar to how the Money Transmission Act currently oversees money transmissions. 

It was one of eight bills vetoed by Newsom on Friday. He also signed 21 other bills addressing crossing signals, cybersecurity, infrastructure, and other concerns.

While explaining his veto in his letter to the California State Assembly, he said,

“On May 4, 2022, I issued Executive Order N-9-22 to position California as the first state to establish a transparent regulatory environment that both fosters responsible innovation and protects consumers who use digital asset financial services and products – all within the context of a rapidly evolving federal regulatory picture.”

Based on that order, he added that his administration has been investing in research and outreach over the last few months to find inputs on approaches that balance consumer benefits and risks, comply with federal regulations, and incorporate California values such as equity, inclusivity, and environmental protection.

Newsom wrote that it would be “premature” to create a licensing regime without considering feedback from “this work.” He also pointed to the possibility of future federal legislation or regulations.

According to Newsom:

“It is premature to lock a licensing structure in statute without considering both this work (findings on his administration’s research) and forthcoming federal actions.”

He added, 

“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.”

Moreso, the Head of Policy at Blockchain Association, Jake Chervinsky, took to his Twitter to laud the governor for vetoing the bill stating that it was for the right reasons.

According to him: 

“Gov. @GavinNewsom deserves serious respect for making the right call by vetoing AB2269, the BitLicense copycat bill that passed the California legislature by a wide margin (71-0 in the Assembly). That takes guts, & he did it for all the right reasons.”
Written by
Chiagoziem Bede Ikwueze

Newsom's letter to the California Assembly said, “It is premature to lock a licensing structure in statute without considering both this work (findings on his administration’s research) and forthcoming federal actions.”

California Governor Gavin Newsom has vetoed ‘Assembly Bill 2269,’ a crypto licensing and regulation bill seen as a possible imitator of New York's "BitLicense."

The bill, sponsored by Assemblymember, Tim Grayson, aimed to create a licensing regime for anyone hoping to facilitate crypto transactions, similar to how the Money Transmission Act currently oversees money transmissions. 

It was one of eight bills vetoed by Newsom on Friday. He also signed 21 other bills addressing crossing signals, cybersecurity, infrastructure, and other concerns.

While explaining his veto in his letter to the California State Assembly, he said,

“On May 4, 2022, I issued Executive Order N-9-22 to position California as the first state to establish a transparent regulatory environment that both fosters responsible innovation and protects consumers who use digital asset financial services and products – all within the context of a rapidly evolving federal regulatory picture.”

Based on that order, he added that his administration has been investing in research and outreach over the last few months to find inputs on approaches that balance consumer benefits and risks, comply with federal regulations, and incorporate California values such as equity, inclusivity, and environmental protection.

Newsom wrote that it would be “premature” to create a licensing regime without considering feedback from “this work.” He also pointed to the possibility of future federal legislation or regulations.

According to Newsom:

“It is premature to lock a licensing structure in statute without considering both this work (findings on his administration’s research) and forthcoming federal actions.”

He added, 

“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.”

Moreso, the Head of Policy at Blockchain Association, Jake Chervinsky, took to his Twitter to laud the governor for vetoing the bill stating that it was for the right reasons.

According to him: 

“Gov. @GavinNewsom deserves serious respect for making the right call by vetoing AB2269, the BitLicense copycat bill that passed the California legislature by a wide margin (71-0 in the Assembly). That takes guts, & he did it for all the right reasons.”
Written by
Chiagoziem Bede Ikwueze