On October 13, 2023, California Governor Gavin Newsom signed Assembly Bill 39, enacting the Digital Financial Assets Law, aimed at establishing a comprehensive regulatory framework for cryptocurrency activities in the state. Set to be effective from July 1, 2025, the law mandates the Department of Financial Protection and Innovation (DFPI) to devise a stringent regulatory structure encompassing licensure and enforcement mechanisms for certain cryptocurrency operations.
The Governor emphasized the importance of the new law in providing a robust foundation to manage the burgeoning digital assets market. The bill entrusts the DFPI with rulemaking authority, along with an 18-month implementation timeframe to ensure a meticulously crafted regulatory architecture in sync with evolving industry trends and aimed at consumer harm mitigation.
The law is a proactive attempt to bolster consumer and investor protections, thereby minimizing…
