CFC Stands for Regulation of Cryptocurrency Exchanges
2023.02.12 05:16
CFC Stands for Regulation of Cryptocurrency Exchanges
By Tiffany Smith
Budrigannews.com – A bill that aims to license and regulate cryptocurrency exchanges was sponsored by the Consumer Federation of California (CFC), a non-profit consumer rights advocacy group.
Assemblymember Timothy Grayson introduced the Digital Financial Assets Law, a piece of legislation requiring regulatory oversight of crypto businesses, with the goals of preventing financial hardship for Californians and encouraging responsible innovation. Grayson adds, “The next natural step for the crypto industry is licensure.”
“And it is equally clear that Californians will continue to be vulnerable to prevalent and preventable financial scams until we take that step,” the statement reads.
This is the CFC’s second attempt to license and regulate cryptocurrency and digital asset businesses. In 2022, the bill (AB 39) was first introduced, but it was vetoed by California Governor Gavin Newsom.
The bill will become law on January 1, 2025, if it is approved, and it will prevent citizens from interacting with crypto businesses until “certain criteria are met.” Cryptocurrency companies will be licensed by the California Department of Financial Protection and Innovation under AB 39, safeguarding investors and ensuring regulatory clarity.
Robert Herrell, executive director of the CFC, added, “The bankruptcies and scams of the past year only bolster our collective interest in ensuring basic and foundational consumer protections in this marketplace,” revealing the move’s purpose. “This marketplace has up to now looked like the Wild West in terms of ‘anything goes’ behavior by key players in the cryptocurrency industry.”
The CFC anticipates that the Assembly will hold this bill’s first hearing in April.
The California Department of Motor Vehicles (DMV) tests the digitization of car titles and title transfers via a private Tezos blockchain while California politicians attempt to implement crypto regulations.
According to Ajay Gupta, chief digital officer of the California DMV, the agency wants to resolve the shadow ledger within the next three months.
