California's cryptocurrency regulatory agency faces funding shortage issue

According to Golden Finance, the California regulatory agency responsible for overseeing California's cryptocurrency licensing laws will require additional funding to launch the project before the scheduled implementation date of July 1, 2026. The California Department of Financial Protection and Innovation is expected to face a funding gap of $193 million to establish multiple projects, including the Digital Financial Assets Act. The bill will be introduced in 2023, aiming to establish a licensing framework for digital asset companies operating in the state. California is one of at least three states that have established licensing systems for this trillion dollar industry, aimed at strengthening supervision of consumers and investors and preventing fraud. At the same time, the US Senate is attempting to pass legislation to provide a regulatory framework for the industry.