California Crypto Bill Approval: This Altcoin Could Be Affected!

A simple stroke of the pen could mark the final step needed to make California one of the first states to require businesses related to Bitcoin and altcoin projects to obtain a special license to operate in the state. Here are the details…

A bill has been submitted for Bitcoin and altcoin projects in California

California Assemblyman Timothy Grayson introduced bill AB 2269 with the support of the California Consumer Federation, which would create the “Digital Financial Assets Act.” The California Senate approved AB 2269 on Monday. Parliament voted to approve the next day. The bill is now up to the approval of California Governor Gavin Newsom, who will enact it with his signature. In a press release, Grayson stated that the purpose of the proposed law is to “protect Californians from financial hardship and encourage responsible innovation by licensing and regulating the activities of cryptocurrency exchanges.”

He added that the bill requires licensees to “do their best.” “While the innovation of cryptocurrency is part of what makes investing exciting, it also makes it riskier for consumers as cryptocurrency businesses are poorly regulated and don’t have to follow many of the same rules that apply to everyone,” Grayson said. According to Grayson, the law will provide basic but necessary protections to consumers and promote a healthy market by making it safer for everyone.

Crypto.com ad criticized

Meanwhile, Robert Herrell, Executive Director of the California Consumer Federation, slammed Crypto.com’s Super Bowl ad. “Luck favors the balanced and wise, not just the so-called ‘brave’,” he said. As we have also reported as Kriptokoin.com, Matt Damon played in this commercial. “The self-promotion of hundreds of millions from the crypto industry should not overshadow the need for robust consumer protection,” he added.

Critics of the bill, including the Blockchain Association, said the law would only stifle innovation by creating narrow-minded, unhelpful restrictions that are inconsistent with the governor’s stated vision for crypto policy in California.

Ripple, Coinbase could be affected

“The licensing provisions in the bill are designed to establish the same kind of cumbersome licensing and reporting regime that hinders the growth of the crypto industry and limited access to secure and reliable crypto products and services in New York,” the Blockchain Association said. Newsom did not signal whether he would sign the bill. The governor has until September 30 to sign or veto the bill, which will go into effect in January 2025.

If this cryptocurrency law is approved, California-based companies will need to be regulated. Among them is the blockchain company Ripple (XRP). That is, Ripple’s XRP altcoin may face the risk of being affected by the decision. There is also the cryptocurrency exchange Coinbase. On the other hand, Kraken also had an office in San Francisco, California.