California won’t become the second state after New York to have a “BitLicense” type of law any time soon.
The lawmaker who introduced AB 1326, California Assembly member Matt Dababneh, D-Encino, has shelved it, marking the second straight year such legislation has been sidelined. After several conversations and meetings with virtual currency experts, consumer organizations, and others, he said he decided to remove AB 1326 from consideration for a vote this year, saying more time is needed to study the measure.
The use of virtual currency has become more prevalent statewide, he said, but as with any financial product, it carries potential risks for consumers.
AB 1326 required virtual currency companies to be licensed. Since Dababneh introduced the bill last year, efforts have been made to support a forward-thinking solution containing strong consumer protections.
Current Bill Deemed Unworthy
Dababneh said in a prepared statement:
Unfortunately, the current bill in print does not meet the objectives to create a lasting regulatory framework that protects consumers and allows this industry to thrive in our state.
More time is needed and these conversations must continue in order