California Governor Gavin Newsom Signs Bill To Create Regulatory Framework for Digital Assets

The governor of California has signed off on a bill that aims to create a new regulatory framework for digital assets.

Governor Gavin Newsom recently signed Assembly Bill 39, which establishes the Digital Financial Assets Law.

The legislation requires the state’s Department of Financial Protection and Innovation (DFPI) to “create a robust regulatory framework, including licensure and enforcement authority, for certain crypto activities.”

The bill also gives the DFPI rulemaking authority over crypto regulation along with an 18-month implementation timeline for a framework.

Says Newsom,

“Ambiguity of certain terms and the scope of this bill will require further refinement in both the regulatory process and in statute to provide clarity to both consumers, regulators and businesses subject to this new licensure framework.

It is essential that we strike the appropriate balance between protecting consumers from harm and fostering a responsible innovation and I look forward to working with the author to achieve this.”

Newsom signed an executive order in May of last year asking legislators to create a regulatory framework that encourages blockchain innovation while protecting consumers.

The governor said the order, which he noted builds on President Biden’s crypto-focused executive order, will help California leverage blockchain technology for the public good.

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Featured Image: Shutterstock/Jorm S/Modvector