California Governor Gavin Newsom has signed Assembly Bill 39, creating the Digital Financial Assets Act, establishing a regulatory framework for digital assets in the state. Learn about the key provisions of the law.
California Governor Gavin Newsom has signed Assembly Bill 39 into law, marking a significant step in regulating digital assets in the state. This bill, known as the Digital Financial Assets Act, is set to come into effect on July 1, 2025.
It grants the Department for Financial Protection and Innovation (DFPI) the authority to develop a comprehensive regulatory framework for digital assets, including licensing and enforcement powers for specific cryptocurrency activities.
While this move is aimed at balancing consumer protection and fostering responsible innovation, Newsom also acknowledged that certain provisions and the scope of the bill may require further improvements in both the regulatory process and statute.
The need for cryptocurrency regulation has become more pressing in California, following events like the collapse of the Bitcoin exchange FTX and other market disruptions. Since federal regulations are still pending, state legislators have taken the initiative to establish a foundational regulatory framework.