Consumer Federation of California reattempts to regulate crypto companies

The Consumer Federation of California (CFC), a nonprofit advocacy enactment moving for user rights, sponsored a measure that seeks to licence and modulate the activities of cryptocurrency exchanges.

The authorities demanding regulatory oversight of crypto businesses — the Digital Financial Assets Law — was introduced by Assemblymember Timothy Grayson with the purpose of protecting Californians from fiscal hardship and fostering liable innovation. Grayson believes that licensure is the adjacent earthy measurement for the crypto industry, adding:

“And it is arsenic wide that until we instrumentality that step, Californians volition proceed to beryllium susceptible to prevalent and preventable fiscal scams.”

This marks the CFC’s 2nd attempt to licence and modulate integer assets and cryptocurrency companies. The measure (AB 39) was archetypal introduced successful 2022, but California Governor Gavin Newsom vetoed it.

If passed, the measure volition go instrumentality connected Jan. 1, 2025, prohibiting citizens from engaging with crypto businesses until “certain criteria are met.” AB 39 volition licence crypto companies nether the California Department of Financial Protection and Innovation, ensuring regulatory clarity and capitalist protection.

“The bankruptcies and scams of the past twelvemonth lone bolster our corporate involvement successful ensuring basal and foundational user protections successful this marketplace, which has up to present looked similar the Wild West successful presumption of ‘anything goes’ behaviour by cardinal players successful the cryptocurrency industry,” added Robert Herrell, enforcement manager of the CFC, portion revealing the intent down the move.

The CFC believes the archetypal proceeding of this measure successful the Assembly volition beryllium taken up successful April.

Related: California cannabis shaper adopts blockchain to way its weed

While Californian politicians effort to present crypto regulations, the California Department of Motor Vehicles (DMV) tests the digitization of car titles and rubric transfers via a backstage Tezos blockchain.

As Cointelegraph reported, the bureau wants to person the shadiness ledger ironed retired wrong the adjacent 3 months, according to the California DMV’s main integer serviceman Ajay Gupta.