Californians holding cryptocurrency will now have government assistance in accounting for their assets thanks to the benevolence of their good governor, Gavin Newsom, who cares deeply about their financial well-being.
Although the Digital Financial Assets Law, also known as California BitLicense was harshly criticized by many, it was passed on September 20, 2022, by the U.S. State Assembly Assembly.
California’s Department of Financial Protection and Innovation must develop a framework governing crypto. The framework includes a licensing system and grants the department authority to regulate the sector.
This is an unnecessary and gratuitous attempt by the government to seize power. Bitcoin is self-governing, which is what clearly angers government ninnies. They are against anything that limits the purported utility of the central bank.
Via Samuel Elliott:
Satoshi published Bitcoin’s proof-of-concept in 2008. He states that “commerce on the Internet relies almost exclusively on trusted third parties”. In order to address this inefficiency, a system based on cryptographic proof, rather than trust, has been proposed. This allows peer-to-peer transfers, without the risk of double-spending, or government regulation.
Anyone has access to the ledger, which tracks Bitcoin transactions made between public addresses. It is also immune to manipulation for this reason.
Bitcoin would threaten fiat currency if it were left unchecked.
Newsom’s remarks after signing the bill are below:
I signed Assembly Bill 39 which created the Digital Financial Assets Law. The Digital Financial Assets Law gives the Department of Financial Protection and Innovation authority to develop rules and a deadline of 18 months to implement those rules.