California assents “BitLicense” crypto regulation bill

CoinDesk reports that California Governor, Gavin Newsom, will sign a recently passed bill requiring digital asset exchanges and other crypto companies to obtain a license to operate in the state.

The Digital Financial Assets Law, called California’s “BitLicense,” takes after New York’s BitLicense regulation.

The bill will go into effect in January 2025 if signed by Newsom.

Assembly Member Timothy Grayson sponsored the bill.

The bill has it that California-licensed entities cannot deal with stablecoins, unless that stablecoin is issued by a bank or is licensed by the California Department of Financial Protection and Innovation.

The bill also requires stablecoin issuers that hold securities as a reserve to have an amount “not less than the aggregate amount of all of its outstanding stablecoins issued or sold in the United States.”

In response to the bill, crypto industry trade group, The Blockchain Association, tweeted that the bill would “create shortsighted and unhelpful restrictions that would impede crypto innovators’ ability to operate and push many out of the state.”

Newsom has until Sept. 30 to sign or veto the bill.

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