California Governor Gavin Newsom vetoed the Digital Financial
Assets Law requiring companies offering services that involve
investing, lending, or trading cryptocurrencies to register with
the state's Department of Financial Protection and
Innovation.
In a letter to the California General Assembly, Newsome said
licensing was a premature step given an Executive Order he issued
in May and pending federal regulation.
“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,” Newsom wrote in a message explaining his
veto. “Over the last several months, my administration has
conducted extensive research and outreach to gather input on
approaches that balance the benefits and risk to
