26 September 2022
Harris Beach
To print this article, all you need is to be registered or login on Mondaq.com.
California is one step closer to joining New York in requiring
cryptocurrency licenses.
Governor Gavin Newsom has until September 30 to sign or veto the
Digital Financial Assets Law, which would go into effect in 2025.
The bill requires companies offering services that involve
investing, lending, or trading cryptocurrencies to register with
the state’s Department of Financial Protection and
Innovation.
Proponents of the bill call it balanced and claim it establishes
responsible guardrails to protect consumers, while detractors argue
it produces an onerous process that will drive crypto businesses
from the state – an important issue given that California is
home to some notable crypto players, including Coinbase and
Ripple.
Neither the licensure requirements nor the related concern and
criticism are new: New York’s BitLicense regime went into
effect in 2015 (the first such license was issued that year),
despite criticism of over-regulation and an unduly burdensome
application process. Indeed, some companies purportedly left and/or
limited their services in New York as a result of the law, though
New York’s Department of Financial Services has approved 31
credentials, including companies such as Robinhood, Block and
Gemini.
California’s struggle with digital asset regulation now
moves to the governor’s office. For now, the Governor has not
indicated what he plans to do with the bill, but his decision will
have meaningfully impact the digital asset industry, in particular
given California’s position as a tech hub.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
POPULAR ARTICLES ON: Technology from United States
FDIC Insurance For Crypto Companies (Video)
Pryor Cashman LLP
This August, the Federal Deposit Insurance Corporation issued letters to five different cryptocurrency companies demanding that they cease and desist from making false and misleading statements about FDIC insurance.
Understanding DeFi: Words Have Meaning, But What Do They Mean?
McGlinchey Stafford
Perhaps the most challenging (and intimidating) part of Decentralized Finance is understanding all the terms and industry jargon—many of which are new and technical, while others are as old as time but commonly misunderstood.
SEC Chairman Talks Crypto Regulation
Arnold & Porter
The annual SEC Speaks event is in full swing today at the Ronald Reagan Building in Washington, DC. This is an SEC marquee event for securities practitioners in good part because it gives senior…