Crypto Rule Push in California Sees Momentum After FTX Debacle

An effort to regulate cryptocurrency in California will show up again this year after Gov. Gavin Newsom (D) vetoed a similar bill in September amid concerns that measure could conflict with other state efforts.

The collapse of FTX and other turmoil in the cryptocurrency market last year have created a new sense of urgency about building safeguards around crypto.

“The misguided, unethical, and likely illegal business practices of FTX have done severe damage to the credibility of an entire industry,” said Charles Belle, executive director of the Blockchain Advocacy Coalition, a California-focused group that’s pushed for pro-blockchain policy. “The industry ...