The US’ state government of the state of California could get a new crypto-focused bill to ensure that the legal provisions surrounding the region are more concrete. This digital financial asset law named ‘Bitlines’ will make it mandatory for crypto exchanges in the state to implement and obtain operating licenses. In addition, the bill will also direct stablecoin issuers to hold bank charters. At this point, the US is the second most crypto friendly country in the world after Hong Kong, a latest ‘Worldwide Crypto Readiness Report’ by Forex Suggest recently said.
Currently, the bill awaits the approval signature of California Governor Gavin Newsom.
“The licensing provisions of the bill are designed to establish the same heavy licensing and reporting regime that has stunted the growth of the crypto industry and limited access to secure and reliable crypto products and services in New York. In addition, many It will be impossible for stablecoin issuers to generate significant economic activity within the state and bring countless jobs to the state,” The Blockchain Association, an industry trade group, explained the California law in a Twitter thread.
4/ Additionally, this will make it impossible for many stablecoin issuers to operate within the state, a rapidly growing sector within the crypto industry poised to generate significant economic activity and bring countless jobs to the state.
— Blockchain Association (@BlockchainAssn) August 29, 2022
The last day for Newsom to sign or veto the bill is September 30, a Coindesk Report,
Earlier in 2015, the state of New York also passed a similar bill to regulate the crypto sector in its territory.
“While the novelty of cryptocurrency makes investing exciting, it also makes it riskier for consumers because cryptocurrency businesses are not adequately regulated and do not have to adhere to the same rules that apply to everyone,” said the assembly member. Timothy Grayson (D-Concord), the bill’s sponsor, said in an earlier statement.
While the US is yet to get its laws around the crypto sector, law enforcement officials there are making a conscious effort to protect their crypto community from unexpected financial risks.
For example, back in August, the US Federal Reserve issued additional guidance for banks considering cryptocurrency-related activities, emphasizing that firms should notify the Fed in advance and ensure that they Whatever they do is legally permitted.
The Fed said in a supervisory letter that banks supervised by the agency should take a number of steps before engaging in any crypto-related activities, including determining whether existing laws stipulate any particular filings and whether any are under consideration. The activity is legally permitted.