California Takes the Lead to Grow U.S. Virtual Currency Industry With Passing of AB-2150

By AIT News Desk On Aug 15, 2020

CoinFlip and the Blockchain Advocacy Coalition Worked Closely to Progress Bill & Advocate for Landmark Legislation

CoinFlip and the Blockchain Advocacy Coalition (BAC), announced efforts to support AB-2150, providing a pathway towards greater regulatory clarity for the virtual currency industry, were successful with Thursday’s unanimous passing of the bill by the California Assembly. Ben Weiss, COO of CoinFlip and board member for the BAC, testified in favor of the legislation, introduced by ASM. Ian Calderon. The bill will initiate a yearlong stakeholder process where the state’s most important regulatory agency will suggest new frameworks for digital assets while maintaining strong consumer protections.

“AB-2150 is a step towards fostering an innovative business climate in California, without jeopardizing consumer protections. California is a giant economy whose regulatory approach will have impacts worldwide,” said Weiss. “The state will lead the federal government that is slow to provide regulatory clarity. If we don’t act now, we will continue to lose much-needed businesses and jobs to countries that have moved quicker in this sector.”

Since February, CoinFlip and the BAC have worked diligently behind the scenes in support of the bill. Its passing mandates the Department of Business Oversight to conduct a study on the viability of a California equivalent to the Proposed Securities Act Rule 195: Time-Limited Exemption for Tokens.

“AB-2150 will help set up California as a hub for the burgeoning cryptocurrency and blockchain industry by encouraging virtual currency businesses to operate in the state, encouraged by regulatory clarity,” continues Weiss. “Because the federal government has yet to provide a clear taxonomy of digital assets, regulatory uncertainty has caused many businesses to leave the United States, taking jobs and innovation with them.”

Currently, companies operating in the U.S. face uncertainty about securities regulation at both the state and federal levels, stymying innovation in comparison to other countries. California has been steadily losing market share of the cryptocurrency and blockchain industry since 2012. As California experiences a significant budget crisis, the state must consider innovative approaches to bolstering the economy and attract businesses to employ Californians. CoinFlip and the BAC look forward to future regulatory transparency and progress fundamental to the future of the virtual currency industry in California and the U.S.