California shelves plan to regulate digital currency industry

After almost a year of dormancy, Assembly Bill 1326 or the California Bitcoin License bill, was reintroduced in the state Legislature early this month for a second reading by the Senate. Legislators, however, froze the bill’s progress this week by referring the proposal back to the state’s Rules Committee and Banking and Finance Committee.

A representative for the Banking and Finance Committee confirmed the news to CoinDesk, saying, “[the bill] is being delayed for this year.”

AB1326 was first introduced in the legislature by Assembly member Matt Dababneh in 2015. Since then, it had gone on through several amendments both in the assembly and in the Senate.

Members of the digital currency community in California are against the bill, which would potentially create regulations that would control the use and trade of digital currency, just like the New York BitLicense. This could mean that bitcoin start-ups in the state—particularly in start-up hotbed San Francisco—may soon find themselves exposed to more red tape.