A consumer protection bill for the cryptocurrency industry is awaiting the signature of the governor of California – the law should equalize cryptocurrency companies with traditional firms.
California Assembly member Timothy Grayson introduced the Digital Financial Assets Bill with the support of the California Consumer Federation. On Monday, the State Senate approved the bill, and the next day the Assembly voted to approve it. Now the document is under consideration by the governor of California.
The main goal of the bill is to protect the people of the state from financial hardship and promote innovation by licensing and regulating cryptocurrency exchanges. The law will require licensed companies to act in the best interests of customers and provide transparent information about digital assets.
According to Grayson, the bill should provide basic consumer protection and make this market safer and healthier:
“The crypto industry is relatively young and this makes it exciting to invest in, but it also makes it riskier for consumers as crypto companies are not properly regulated and do not adhere to the rules that work for all other firms.”
Robert Herrell, executive director of the California Consumer Federation, noted that “fortune favors the balanced and wise, not just the bold.” This is a reference to the Crypto.com promotional video featuring actor Matt Damon, presented at the last Super Bowl in the USA.
Earlier, members of the California Fair Political Practice Commission voted to lift a four-year ban on accepting donations in cryptocurrencies.