31.5 C
Saturday, May 18, 2024

Consumer Federation of California makes another attempt to regulate crypto firms


The Consumers Federation of California (CFC), a nonprofit advocacy group dedicated to consumer rights, has sponsored a bill to license and regulate cryptocurrency trading activities.

Legislation requiring regulation of crypto businesses – the Digital Financial Assets Act – is introduce Sponsored by Councilman Timothy Grayson to protect Californians from economic hardship and promote responsible innovation. Grayson sees licensing as the next natural step for the crypto industry, adding:

“It’s also clear that until we take this step, Californians will continue to be vulnerable to widespread and preventable financial fraud.”

This marks the CFC’s second attempt Licensing and regulation of digital assets and cryptocurrency companies. The bill (AB 39) was first introduced in 2022, but California Gov. Gavin Newsom vetoed it.

If passed, the bill would become law on January 1, 2025, prohibiting citizens from engaging in crypto businesses until “certain criteria are met.” AB 39 will authorize crypto firms in the California Department of Financial Protection and Innovation, ensuring regulatory clarity and investor protection.

“The bankruptcies and scams of the past year have only strengthened our collective interest in ensuring basic and fundamental consumer protections in this market, so far, in terms of the ‘anything’ behavior of the major players in the cryptocurrency industry, This market looks like the Wild West,” added CFC executive director Robert Herrell, revealing the intentions behind the move.

The CFC believes Parliament will begin its first hearings on the bill in April.

related: California Cannabis Producer Adopts Blockchain to Track Its Cannabis

While California politicians try to introduce encryption regulations, the California Department of Motor Vehicles (DMV) Testing the digitization of car ownership and title transfer Via the private Tezos blockchain.

As Cointelegraph reported, Ajay Gupta, chief digital officer at the California DMV, said the agency hopes to address the shadow ledger issue within the next three months.