California Gov. Newsom Greenlights Crypto Regulation Bill for 2025

California Governor Gavin Newsom has approved a cryptocurrency bill that would enforce stricter regulations on businesses that conduct crypto operations, starting in 18 months.

In a statement published on October 13, Newsom announced that the bill, titled the ‘Digital Financial Assets Act', would require both individuals and companies to obtain a license from the Department of Financial Protection and Innovation (DFPI) to engage in digital financial assets. Business activities.

The bill will take effect on July 1, 2025.

He drew comparisons to California's money transmission laws, which prohibit banking and wire transfer services from operating without a license from the DFPI commissioner.

The new crypto bill will require the DFPI to impose stricter audit requirements on crypto firms and also require them to comply with recording requirements. The statement said.

“[This bill] Looking for a licensed person to take care of […] For 5 years after the date of the activity, certain records, including a general ledger maintained at least monthly, list all assets, liabilities, capital, income and expenses of the licensee.

It makes it clear that companies that do not comply with the bill will face enforcement action.

Related: CoinShares Says US Not Lagging in Crypto Adoption and Regulation

Around last year, Newsom refused to sign a similar bill aimed at establishing a licensing and regulatory framework for digital assets in California.

Although the bill passed the California State Assembly without opposition, Newsom said he was sending the bill back “without a signature.”

Newsom pointed out that the account is not flexible enough to keep up with rapidly changing crypto trends.

At the time, Newson said he was waiting for federal regulations to come in before working with the legislature to establish crypto licensing initiatives.

Meanwhile, Cointelegraph recently reported that the United States is exploring the possibility of applying the Electronic Funds Transfer Act (ETFA) to crypto as a measure to combat fraudulent transfers.

In a recent speech, Rohit Chopra, director of the Consumer Financial Protection Bureau (CFPB), expressed his desire for licensing to “reduce the harm of errors, hacks and unauthorized transfers.”

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