The regulatory agency for encryption assets in California, USA is facing a funding shortage issue.

California Crypto Asset Regulator Faces Funding Shortage The California regulator responsible for overseeing California's cryptocurrency licensing laws will need 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 $193 million funding gap for several programs, including the Digital Financial Assets Act. The bill, which will be introduced 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 have a licensing system for this trillion-dollar industry, designed to increase oversight of consumers and investors, and to prevent fraud. At the same time, the U.S. Senate is trying to pass legislation that would provide a regulatory framework for the industry.