Assembly Member Takes Another Run At Digital Financial Asset Law
In June of last year, noted the introduction of a bill that would subject digital financial asset businesses to licensing in California. See California Fingers Digital Financial Asset Businesses For Licensing. In September, Governor Gavin Newsom vetoed the bill stating that it would be "premature to lock a licensing structure in statute". He also claimed that establishing a "new regulatory program is a costly undertaking, and this bill would require a loan from the general fund in the tens of millions of dollars for the first several years".
The author of the doomed bill, Assembly Member Timothy S. Grayson, is now taking another run at subjecting the digital financial asset business to licensing and oversight by the Department of Financial Protection & Innovation. The new bill, AB 39, has two principal co-authors - Assembly Member Cottie Petrie-Norris and Senator Monique Limón. This iteration, like it unbirthed predecessor, leaves unanswered the question whether digital financial assets are securities . See California Bill Would Regulate Digital Financial Assets, But Leaves Status Under Securities Laws Unanswered.