California Gov. Newsom greenlights crypto regulation bill for 2025

cointelegraph.com:

California Governor Gavin Newsom has approved a cryptocurrency bill that enforces stricter regulations on businesses conducting crypto operations, set to begin in 18 months. 

In a statement published on October 13, Newsom declared that the bill titled the ‘Digital Financial Assets Law,’ will make it mandatory for both individuals and firms to obtain a Department of Financial Protection and Innovation (DFPI) license to engage in digital financial asset business activities.

The bill is scheduled to come into effect on July 1, 2025.

It draws a comparison to California's money transmission laws, which prohibit banking and transfer services from operating without a license granted by the DFPI Commissioner.

The new crypto bill will allow the DFPI to impose stringent audit requirements on crypto firms as well as force them to uphold recording requirements. The statement noted:

It furth clarifies that firms not complying with the bill will face enforcement measures.

Related: CoinShares says US not lagging in crypto adoption and regulation

Around this time last year, Newsom declined to sign a similar bill that aimed to establish a licensing and regulatory framework for digital assets in California.

Although the bill passed through the California State Assembly without opposition, Newsom expressed that he was sending the bill back "without my signature."

Newsom suggested that the bill wasn't flexible enough to keep up with fast-changing crypto trends.

At the time, Newson stated that he was waiting for federal regulations to come into place before working with the legislature to establish crypto licensing initiatives.

Meanwhile, Cointelegraph recently reported that the U.S. is exploring the possibility of applying the Electronic Fund