California Governor signs new crypto bill into law for 2025—what you need to know
Amid growing calls for regulatory clarity in the crypto sector, California Governor Gavin Newsom has made a decisive move. He recently signed into law the Digital Financial Assets Law, a bill outlining a structured framework for the crypto industry. Under this new law, the Department of Financial Protection and Innovation (DFPI) will serve as the regulatory authority responsible for crypto activities. Besides the DFPI, the law introduces an 18-month implementation window, offering flexibility for new industry trends. Governor Newsom is no stranger to the crypto industry. Last year, he declined to endorse a crypto bill, citing its inability to adapt to industry changes. This time, Newsom seems confident that the new law will offer a balanced approach. However, he also noted that some aspects might need further refinement. “It is essential that we strike the appropriate balance between protecting consumers from harm and fostering a responsible innovation environment,” said Newsom. This dynamic approach aims to simultaneously minimize fraud, enhance consumer and investor protections, and provide businesses with a clear regulatory path. What this means for crypto businesses The Digital Financial Assets Law stipulates that businesses must obtain a DFPI license to operate in the crypto space in California. Moreover, the law imposes stringent audit