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Volume XIII, Number 86


March 24, 2023

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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.

© 2010-2023 Allen Matkins Leck Gamble Mallory & Natsis LLP National Law Review, Volume XIII, Number 37

About this Author

Keith Paul Bishop, Corporate Transactions Lawyer, finance securities attorney, Allen Matkins Law Firm

Keith Bishop works with privately held and publicly traded companies on federal and state corporate and securities transactions, compliance, and governance matters. He is highly-regarded for his in-depth knowledge of the distinctive corporate and regulatory requirements faced by corporations in the state of California.

While many law firms have a great deal of expertise in federal or Delaware corporate law, Keith’s specific focus on California corporate and securities law is uncommon. A former California state regulator of securities and financial institutions, Keith has decades of...