Consumer Federation of California reattempts to regulate crypto companies

The Consumer Federation of California (CFC), a non-profit consumer advocacy organization, has sponsored a bill aimed at licensing and regulating cryptocurrency exchanges.

The Digital Financial Assets Act, which requires regulatory oversight of the cryptocurrency business, has been introduced Assemblyman Timothy Grayson to protect Californians from financial hardship and encourage responsible innovation. Grayson believes that licensing is the next natural step for the crypto industry, adding:

“And it is equally clear that until we take this step, Californians will continue to be vulnerable to common and preventable financial scams.”

This is the second try to license and regulate 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 will become law on January 1, 2025, prohibiting citizens from engaging in crypto business until “certain criteria are met.” AB 39 will license crypto companies under the California Department of Financial Protection and Innovation, providing regulatory clarity and investor protection.

“Last year’s bankruptcies and scams only reinforce our collective interest in providing basic and fundamental consumer protection in this market that has so far looked like the Wild West in terms of the “anything goes” behavior of the key players in the cryptocurrency industry. added Robert Herrell, chief executive of the CFC, revealing the purpose of the move.

The CFC believes that the first hearing of this bill in the Assembly will take place in April.

California cannabis grower uses blockchain to track his weed

While California politicians are trying to enforce cryptocurrency regulations, the California Department of Motor Vehicles (DMV) is testing the digitization of vehicle ownership and the transfer of ownership through the private Tezos blockchain.

As reported by Cryptooshala, the agency wants to smooth out the shady ledger within the next three months, according to California DMV chief digital officer Ajay Gupta.

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