The cryptocurrency measure proposed by California Governor Gavin Newsom has been signed into law.
Assembly Bill 39, also known as the Digital Financial Assets Act, was signed into law by California Governor Gavin Newsom, marking a major step forward in the process of establishing a legal framework for digital assets in the state.
Starting on July 1, 2025, the Department of Financial Protection and Innovation (DFPI) will have the authority to craft a comprehensive regulatory framework. Certain crypto operations will be subject to license and enforcement.
The measure grants regulatory power to DFPI and sets an 18-month timeline for implementation. The following passages from Newsom’s proclamation of the law’s adoption stood out:
“There has to be a happy medium between safeguarding consumers and encouraging ethical experimentation and development.”
Newsom did say that more work has to be done on the regulatory side and in the legislation itself because of the bill’s length and the ambiguity of some of its sections.
The collapse of Bitcoin exchange FTX last year and other market volatility prompted lawmakers in California to consider enacting new regulations on cryptocurrencies.
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