Blockworks wrote that encryption regulation in the United States in 2024 will be led by state-level agencies rather than Washington. Governors and legislatures at the state level are taking decisive action on meaningful digital asset regulation. The focus is on California Governor Gavin Newsom signing Assembly Bill 39 into law. The bill, the Digital Financial Assets Law (DFAL), sets out comprehensive rules for digital financial asset businesses operating in the state. Starting in 2025, digital financial asset businesses in California will be subject to a licensing and supervisory regulatory regime, including capital and liquidity requirements, periodic disclosures and stablecoin approval standards.
Another attorney general looking to expand the scope of digital asset regulation is New Jersey Attorney General Matt Platkin. The crypto industry is currently waiting to see if the New Jersey Legislature will pass legislation to include cryptocurrency regulations under the Attorney General’s Department of Law and Public Safety. within the jurisdiction.