‘Blockchain Association’ expresses strong dissent
In fact, this is California’s second attempt to implement a “BitLicense” system. After a failed shock in 2015, the action was shelved over objections from state senators.
This time, though, the bill received 71 yes/none votes in the California Assembly, with nine other lawmakers abstaining.
Then in the California Senate, the bill passed 31 to 6 — with six dissenting votes in the Republican Senate.
Now this bill only needs to be signed by Governor Gavin Newsom before September 30. If all goes well, the new California “BitLicense” policy will officially take effect in January 2025.
Bill sponsor Timothy Grayson said in a previous statement: “While novel cryptocurrencies are attractive, they also expose investors to greater risk because the field is not yet adequately regulated and does not have to comply with many applicable laws and regulations. the same rules in other areas”.
As for the controversial provisions, one is the phasing out of stablecoins issued by the state’s entities in 2028 — unless it’s issued by a bank or licensed by the California Department of Financial Protection and Innovation.
Another controversial clause requires stablecoin issuers holding securities to have asset reserves “not less than the sum of all outstanding stablecoins issued or sold in the United States.” In addition, the Act stipulates that the total market capitalization must be calculated using generally accepted accounting principles (GAAP).
In this regard, industry trade groups such as the Blockchain Association have expressed clear objections, saying that the bill constitutes a short-sighted and unhelpful restriction, hinders innovation and operational capabilities in the crypto space, and drives relevant practitioners out of California.