California Governor Gavin Newsom has вето a bill that sought to license and regulate crypto. Скупштински рачун КСНУМКС was introduced by AssemblyMan Timothy Grayson. However, the bill was subjected to heavy criticism by the crypto community.
The bill, when passed on 30 August, had full majority and received 71 yes votes, zero no votes in California’s Assembly, a day after being approved by the California Senate.
“While the newness of cryptocurrency is part of what makes investing exciting, it also makes it riskier for consumers. Cryptocurrency businesses are not adequately regulated and do not have to follow many of the same rules that apply to everyone else,” AssemblyMan Grayson had earlier изјавио.
It’s a green signal then?
If Governor Newsom had signed the bill into existence, it would have equated crypto transactions to regular money transactions. This would effectively bring cryptos under the purview of the Money Transmission Act.
Furthermore, the proposed bill would have restricted entities licensed by the state of California from interacting with stablecoins. Especially those that were not issued by banks or licensed by the state Department of Financial Protection and Innovation.
Assessing the Governor’s statement…
У писмо addressed to the members of the California State Assembly, Governor Newsom explained his reasons for vetoing the bill. He clarified that he shared the intent to protect people from financial harm in the face of rising popularity of innovative financial assets. He stated,
„Прерано је закључати структуру лиценцирања у статуту без разматрања и овог рада и предстојећих савезних акција. Потребан је флексибилнији приступ како би се осигурало да регулаторни надзор може да прати технологију и случајеве употребе који се брзо развија, и да је прилагођен одговарајућим алатима за решавање трендова и ублажавање штете за потрошаче.
“California’s BitLicense”
Critics of the proposed bill called it the Californian version of New York’s BitLicense. БитЛиценсе is a regulation that was implemented in the state of New York in 2015. At the time it was a landmark cryptocurrency regulation that required businesses to obtain a license to engage crypto-related activities.
However, the regulation received widespread criticism for altering the crypto landscape in the state. Following years of pushback and complaints, state regulators agreed to alter the bill in June 2020. Furthermore, authorities decided to implement a more relaxed regulatory framework to ease the licensing process.
Source: https://ambcrypto.com/are-governments-all-for-flexibility-when-regulating-crypto-the-answer-is/