California lawmakers support Bitcoin bill

Assemblyman Matt Dababneh, who authored California’s AB-1326, which seeks to regulate virtual currency businesses, recently defended his proposal.

     Last week, the Electronic Frontier Foundation (EFF) said the bill would prevent virtual currency businesses from operating unless licensed by the Department of Business Oversight (DBO), threatening future experimentation and innovation in digital currencies in California.

Dababneh said in a statement:

     "First, the EFF has little expertise in the area of ​​financial regulation, and its operations often go beyond reasonable security standards and requirements of financial service providers."

He continued: “EFF believes that AB-1326 is vague, makes it unclear who should be licensed, and contains provisions that stifle innovation. In fact, the language of the provision is very clear and actually provides a platform for virtual currency companies to develop an ecosystem.”

     Dababneh added that he has expressed his approval for the pro-innovation provisions in the bill.

     The EFF previously said the bill had philosophical issues and regulations that were premature, saying having different state regulations would confuse consumers.

     The lawmakers disputed the EFF’s claims, noting that regulation is necessary because consumers have lost more than a billion dollars to fraud and hacking. AB-1326 would treat virtual currency companies like any other financial services provider.