The Consumer Federation of California (CFC), a non-profit organization that advocates for consumer rights, is the sponsor of a measure that wants to approve and regulate the activities of cryptocurrency exchanges.
While Californian legislators seek to pass crypto legislation, the California Department of Motor Vehicles (DMV) is exploring the digitalization of vehicle titles and title transfers through a private Tezos blockchain.
The Consumer Federation of California (CFC), a non-profit organization that advocates for consumer rights, is the sponsor of a measure that wants to approve and regulate the activities of cryptocurrency exchanges.
The Digital Financial Assets Law, which mandates government oversight of cryptocurrency businesses, was supported by Assemblymember Timothy Grayson in a bid to protect Californians from financial hardship and encourage responsible innovation.
This is the CFC’s second attempt to authorize and regulate companies dealing in bitcoin and other digital assets. California’s governor, Gavin Newsom, rejected AB 39 when it was first proposed in 2022.
The measure, if passed, will prohibit anyone from collaborating with bitcoin businesses until “certain conditions are achieved” and take effect on January 1, 2025. AB 39 would issue licenses to cryptocurrency firms under the control of the California Department of Financial Protection and Innovation, ensuring regulatory clarity and investor safety.
The move was made with the intention of protecting consumers, said Robert Herrell, executive director of the CFC. “The bankruptcies and scams of the past year only bolster our collective interest in ensuring basic and foundational consumer protections in this marketplace, which has up to now looked like the Wild West in terms of ‘anything goes’ behavior by key players in the cryptocurrency industry,” he added.
The Assembly’s first hearing on this bill is scheduled to take place in April, according to the CFC.
While Californian legislators seek to pass crypto legislation, the California Department of Motor Vehicles (DMV) is exploring the digitalization of vehicle titles and title transfers through a private Tezos blockchain.
We urge you to explore potential investments before making any.