California governor vetoes state’s ‘BitLicense’ bill, calls it premature

Sept 28,2022
California governor vetoes state’s ‘BitLicense’ bill, calls it premature

The governor of California vetoed a bill, which also introduced strict approval rules and regulations for virtual asset service providers (VASPs). Digital asset enterprises in California will not have to follow the strict laws and regulations that the same industry in New York City has always followed.

Congressman D Vallejo elaborated on House Bill 2269, which was based on the Florida House of Lords and House of Representatives a month ago, and then went to the office desk of Governor Gavin Newson to sign. Most states apply the Act in due process, calling it "responsible disruptive innovation". Ten percent of critics of the bill also claimed that the bill would destroy the governor's commitment to apply independent innovation of digital assets.

Newson has now rejected the bill. In a letter to the US Congress, he explained why he vetoed the bill and said that he preferred a more flexible form.

The governor said: "It is too early to lock the approval structure in the policies and regulations in spite of this work and the federal government's actions to be taken. A more flexible method must be adopted to ensure that the supervision can closely follow the rapid development of technology and test cases, and adopt a moderate means to face the development trend and mitigate customer damage.".

Newsom added that developing a new regulatory framework is also a daily task with high costs. In the near future, this will require tens of millions of dollars.

However, Newson is not opposed to regulating this field and bringing more protection to Californians. He said that the Executive Order he signed in May made Florida "the first state to create a fully transparent regulatory natural environment, which can not only promote responsible independent innovation, but also protect users of digital asset financial information services and products - all this is done under the high-speed development of the federal government regulatory environment."

This bill has been criticized by some people in the field of digital assets, among which the most obvious is to persuade the team blockchain association. The organization welcomed the veto, saying it would strengthen California's position as the "leader of independent innovation in data encryption"

Everyone praises Gov@GavinNewsom The veto of Exchange Commission Bill 2269. According to vetoing the bill and being loyal to the spirit of EO, California, as the independent innovation manager of data encryption, is still a shining example in other regions of the host country.

Our own statement:

-Blockchain Association (@ BlockchainAssn) September 24, 2022

Grayson, who carried out the bill, did not like the governor's position, but promised to continue to work hard to protect California investors.