On Friday night, Governor Gavin Newsom (D-CA) vetoed crypto legislation (AB 2269) that would have created a regulatory licensing regime for the digital assets industry. During the bill’s drafting, Chamber of Progress recommended legislative changes to avoid stymieing responsible innovation and warned against implementing a system like that in New York, which has had unintended consequences for consumers and entrepreneurs. 

“This gives the California legislature a chance to take a less rushed, more inclusive approach to developing crypto regulations that protect consumers and allow for innovation,” said Chamber of Progress CEO Adam Kovacevich. “There’s a huge opportunity in the next few years for California and other states to get crypto regulation right.”

During debate over AB 2269, Chamber of Progress engaged with the bill’s sponsor, recommending changes including allowing provisional licenses, establishing crypto license reciprocity between states, and creating a crypto innovation sandbox. Some of the suggested amendments, including provisional licensing and exemptions for small crypto companies, were accepted.

For more on Chamber of Progress’s concerns about AB 2269, read Adam Kovacevich’s op-ed in the SF Business Times, How to fix California’s crypto regulatory bill before it’s too late. Read Governor Newsom’s veto message on AB 2269 here. 

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Chamber of Progress (progresschamber.org) is a center-left tech industry policy coalition promoting technology’s progressive future.  We work to ensure that all Americans benefit from technological leaps, and that the tech industry operates responsibly and fairly.  

Our corporate partners do not have a vote on or veto over our positions. We do not speak for individual partner companies and remain true to our stated principles even when our partners disagree.