California Governor Gavin Newsom’s signature on the Digital Financial Assets Law last month sent shock waves through the industry and proved the old adage that scandal leads to reform. The collapse of cryptocurrency exchange FTX, the indictment of Sam Bankman-Fried, and crypto-associated bank instability (Signature Bank, Silicon Valley Bank, Silvergate Bank), true or not, spurred politicians to act. Perception is reality.
Linda A. Lacewell is the former Superintendent of the New York Department of Financial Services, which licenses and regulates financial services including cryptocurrency companies.
The California bill is expressly based on New York’s bitlicense regime, written in 2015 and overseen by the New York Department of Financial