California Legislative Assembly has ordered to inactive a Bitcoin bill proposal at the request of state senator Holly Mitchell.
The Bill AB-1326 was introduced by Assemblyman Matt Dababneh in February 2015. Soon upon the release of its first draft, the Californian Bitcoin bill drew plenty of opposition for a number of reasons. Several Bitcoin advocacy groups, including Electronic Frontier Foundation (EFF), BTC Foundations and Copia Institute, criticized the bill for impeding the growth of young Bitcoin startups.
Responding to the growing criticism, Assemblyman Dababneh introduced some amendments into the Bitcoin bill. For instance: the lawmaker revealed that the amended bill has allowed virtual currency businesses with valuation lower than $1m to register with a $500 fee. The changes, however, failed to address many other complications that were already available in the bill, such as the introduction of additional reporting requirements.
Just last month, Dababneh had also expressed his frustrations with the Bitcoin advocacy groups which, as he believed, were spreading false information against AB-1326. While pointing EFF particularly, he had stated that the group lacks expertise in the area of financial regulations.
But now with the bill finally being shelved at the hand of a lawmaker herself, the Bitcoin community is visibly rejoicing. BTC Foundation’s individual member Colin Gallagher specifically penned a journal, expressing his satisfaction with the news. Through, he also reminded people of the possibility of the return of the controversial Bitcoin bill, stating:
“While we should remain vigilant (the California legislature reconvenes on Jan. 4, 2016, and could attempt to take up the bill again), this is a victory we should celebrate. California should not be allowed to fall prey to the same blunders that have cast New York in a financial stone age, and we deserve the freedom to be innovators (without state sanction) both in the making of new decentralized systems as well as in our daily actions and explorations of new systems.”