California’s Crypto Industry Has Escaped Regulation

California Governor Gavin Newsom vetoed the cryptocurrency law, according to Barron’s.

Earlier, the bill was passed by both houses of the California legislature almost unanimously. If approved by the governor, the law would impose strict rules on the cryptocurrency market, which, according to industry participants, would stifle innovation in the state.

In particular, the bill would introduce many rules to the crypto industry that consumer advocates have long sought, including the requirement that trading platforms look for the best price when making transactions for customers. Such innovations could change the digital asset market not only in California, but also at the national level if companies changed their business to comply with state laws.

“A more flexible approach is needed so that regulation keeps pace with rapidly developing technologies,” the state governor’s resolution says.