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California Faces Funding Gap for Cryptocurrency Licensing Law Rollout

California is encountering financial hurdles as it prepares to implement its cryptocurrency licensing law by July 1, 2026. The California Department of Financial Protection and Innovation has reported a $193 million funding shortfall needed to support initiatives under the Digital Financial Assets Act, which was introduced in 2023. This law aims to establish a licensing and oversight framework for digital asset companies operating within the state. California is among at least three U.S. states developing such regulatory systems to strengthen consumer and investor protections and combat fraud. At the federal level, the U.S. Senate is also working to advance legislation that would create a broader regulatory structure for the cryptocurrency industry.