California Passes Controversial Crypto Licensing Law, Goes Into Effect in 2025

California Governor Gavin Newsom signed a crypto licensing bill on Friday, set to take effect in July 2025.

Considered California's answer to New York's "BitLicense," the Digital Financial Assets Law faced heavy industry criticism but was passed.

The law requires California's DFPI and Innovation to create a regulatory framework for crypto, including licensing and enforcement authority.

DFPI gets an 18-month implementation period to tailor the framework and mitigate consumer harm.

Newsom said more refinement is needed to provide clarity to consumers, regulators and businesses under the new framework.