California Gov. Gavin Newsom vetoed a bill on Friday that would have imposed strict controls on the cryptocurrency market, which industry participants argued would have hampered innovation in the state. The law had slipped under the radar until it was passed with near-unanimous support by both houses of California’s legislature. If passed, the bill would have imposed numerous rules on the cryptocurrency business. In a letter accompanying the veto, Newsom, a Democrat, stated, “It is premature to lock a licensing structure in statute” without considering an ongoing effort to research the crypto market and potential upcoming federal regulations.”
