Newsom Vetoes ‘Premature’ Crypto Oversight Bill for California

California Governor Gavin Newsom vetoed a bill that would require crypto financial-service businesses to get a special license to operate, calling it premature and costly.

Newsom on Friday declined to sign the legislation known as the Digital Financial Assets Law, which was passed by the state assembly and senate last month. While the governor said he shares the bill’s intent to protect Californians from financial harm and provide clear rules for the industry, his administration has been conducting research and gathering input on the right approach.

“It is premature to lock a licensing structure in statute without considering both this ...