Assemblyman Tim Grayson
VALLEJO — Assemblyman Tim Grayson announced this week he has introduced legislation that would establish the “Digital Financial Assets Law” to protect Californians from financial hardship and foster responsible innovation by licensing and regulating the activities of cryptocurrency exchanges.
The bill is sponsored by the Consumer Federation of California, Grayson’s office announced.
Cryptocurrency has grown significantly in recent years, Grayson, D-Concord, said in a press release, with cryptocurrency assets surpassing a $3 trillion market cap last November. The growth has been accompanied by fraud, however, insider trading and other bad behavior, he said. Such activity exposes Californians to unnecessary risk and harm.
The standards in Assembly Bill 2269 are intended to instill faith in the cryptocurrency ecosystem and help create long-term stability of the market, Grayson said in the press release.
AB 2269 includes a number of consumer and investor protections that are intended to help ensure cryptocurrency exchanges work on behalf of their customers, such as requirements around customer service and disclosures, and a requirement that licensees act in the best interest of a customer when they recommend a cryptocurrency, according to the press release. By licensing digital financial assets companies under the Department of Financial Innovation and Protection, the industry will receive more regulatory clarity and consumers will have better protections, according to the release.
Grayson represents the 14th Assembly District that includes the communities of Benicia, Vallejo, Concord, Clayton, Martinez, Pleasant Hill, Pittsburg and Walnut Creek.
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One growing fear that’s currently spreading is that of overregulation. Some are afraid of overregulating the cryptocurrency and overcharging trading platforms with lots of returns in tax that it will sabotage bitcoininnovation by suppressing risk.