Significant developments are unfolding in California concerning cryptocurrency regulations. Last year, California Governor Gavin Newsom vetoed a similar bill citing shortcomings. Now, he has approved a new cryptocurrency regulation expected to take effect in 2025. These regulations will bring about substantial changes for businesses operating in the cryptocurrency sector.
Benefits of the New Crypto Law
Effective from June 25, 2025, this new law is named the “Digital Assets Act“. This legislation will mandate individuals and companies dealing with digital assets to be licensed by California’s Department of Financial Protection and Innovation (DFPI).
The licensing process will require cryptocurrency companies to adhere to certain standards. Companies will be obliged to maintain financial records, grant audit access to regulators, and meet set standards in various other areas. This can be seen as an extension of California’s existing laws regulating banking and transfer services. However, with the new law, these obligations will be expanded to encompass transactions related to cryptocurrencies.
California’s move aims to make the operations of companies in the sector more transparent and auditable, thus safeguarding consumer rights.