California Passes Digital Financial Assets Law, Awaiting Governor's Decision

California Advances Landmark Crypto Regulation Bill

The California State Assembly has unanimously passed the Digital Financial Assets Law, also known as AB 2269, with a vote of 71-0 on August 30. The bill is now pending approval from Governor Gavin Newsom, who has the authority to sign it into law or veto it.

Key Provisions of the Bill

The legislation mandates that digital asset exchanges and cryptocurrency companies operating in California must obtain a license from the state’s Department of Financial Protection and Innovation. Any unauthorized operations outside of this licensing framework would be prohibited.

Implementation Timeline

If signed into law, the Digital Financial Assets Law would take effect on January 1, 2025. This provides businesses with a transitional period to comply with the new regulatory requirements.

Implications for the Crypto Industry

The bill represents a significant step toward regulating the cryptocurrency sector in California, aiming to enhance consumer protection and ensure compliance with state financial regulations. Crypto companies and exchanges must now closely monitor the governor’s decision and prepare for potential licensing obligations.

Next Steps

The fate of the bill rests with Governor Newsom, whose decision will shape the future of cryptocurrency regulation in California. Industry stakeholders are eagerly awaiting his response as the state moves closer to establishing a formal framework for digital asset operations.