California Governor Vetoes Digital Financial Assets Act Passed by Congress

According to CoinDesk, California Governor Gavin Newsom vetoed the Digital Financial Assets Act previously passed by Congress, which required entities licensed to operate only to use stablecoins issued by banks or licensed by the state Department of Financial Protection and Innovation. ; stablecoin issuers need to maintain at least 100% reserve support; will establish a licensing and review system for cryptocurrency companies. Gavin Newsom stated that the reason for the veto of the bill was the need for a more flexible approach to ensure that regulation can keep up with rapidly evolving technologies and use cases, and that appropriate tools are used to respond to trends and mitigate harm to consumers. In addition, the new The licensing and regulatory regime will require millions of dollars that are not factored into California's annual budget. Foresight News previously reported that the "Digital Financial Assets Act" passed by California in August was opposed by companies such as Block and Coinbase, as well as some industry associations. The definition of "digital financial assets" is relatively vague.