His argument makes no sense. He says that 43 other states have such regulations, so that if you want to do business nationally you have to get licensed in each, at costs ranging from less than California's new cost to more than California's new cost.
So what is the significance of California making it 44 states? I doubt a new payment system that only works in a handful of states has much of a chance, so if regulation kills payment innovation it would have have been killed long ago, when the majority of other states adopted regulation.
The difference: if you start a business in California, you have to care about California law, and federal law, but not necessarily any other states' laws. Similarly, Internet businesses don't legally have to collect sales taxes for states other than their home state (and most don't make the mistake of putting their HQ in a state with sales taxes), though various states have attempted to (illegally) claim otherwise.
So what is the significance of California making it 44 states? I doubt a new payment system that only works in a handful of states has much of a chance, so if regulation kills payment innovation it would have have been killed long ago, when the majority of other states adopted regulation.