The State 's Regulation Of Bitcoin And Other Virtual Currencies

1170 Words5 Pages
The result of the California Legislature’s ongoing debate over AB-1326, a bill that would alter the state’s regulation of Bitcoin and other virtual currencies, could prove crucial to the future course of virtual currency regulatory legislation in other states, stakeholders told us in interviews. That debate is also splitting erstwhile allies in opposing virtual currency regulation. Several established virtual currency entities -- including Coinbase and Coin Center -- are publicly backing AB-1326, while the Electronic Frontier Foundation (EFF) and others are continuing to criticize it. AB-1326, which passed the state Senate’s Banking and Financial Institutions Committee Monday, would require virtual currency businesses in California to…show more content…
The California Legislature voted last year to approve AB-129, which legalized virtual currency trading in the state effective May 1 (see report in the July 1, 2014, issue). EFF, like Coin Center and other stakeholders, had been negotiating with Dababneh to modify AB-1326 but decided to publicly oppose the bill earlier this month, starting an online petition Aug. 7 urging the state Senate to vote down the bill. Although a revised version of AB-1326 contains carve-outs for smaller companies and software developers, its language remains too vague and “threatens the future of virtual currency experimentation in the state,” EFF said at the time (see [Ref:1508100020]). Dababneh later responded to EFF’s opposition to AB-1326, saying in a statement that the bill’s language “is very clear and has been negotiated with the companies that actually develop platforms in the virtual currency ecosystem. The very entities that will be licensed have been comfortable with the clarity contained in the legislation, and AB 1326 even includes provisions friendly to innovators.” Coin Center also initially opposed AB-1326 because the language in earlier versions of the bill was flawed, but now endorses its provisions since it would forestall stricter regulation of virtual currency, said Coin Center Executive Director Jerry Brito in an interview. Coin Center agrees with some of EFF’s concerns about the bill
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