The California cryptoasset regulator is facing a funding shortage

California, the US state regulator responsible for overseeing California's cryptocurrency licensing law, will need additional funding in order to launch the project ahead of its scheduled implementation date of July 1, 2026. The California Department of Financial Protection and Innovation is expected to face a funding shortfall of $193 million to set up multiple projects, among them the Digital Financial Assets Act. The bill, due in 2023, aims to establish a licensing framework for digital asset companies operating in the state. California is one of at least three states to set up a licensing regime for the trillion-dollar industry, with the aim of enhancing oversight for consumers and investors and preventing fraud. Meanwhile, the US Senate is trying to pass legislation that would provide a regulatory framework for the industry.