Legislators in California are about to vote on a proposal that will pave the way for digital currency regulation in the state.

AB1326, or the California Bitcoin License bill, was introduced by Assembly member Matt Dababneh in February 2015. Since then, it had gone through several amendments both in the assembly and in the Senate. The bill is now waiting for a second reading by the Senate.

However, opponents of the bill—mainly the digital currency community and businesses in the state—are concerned that AB1326 will reduce California’s capability of supporting local virtual currency start-ups.

Just like the New York BitLicense, the proposed California Bitcoin License will introduce regulations that will control the use and trade of digital currency, meaning bitcoin start-ups in the state—particularly in start-up hotbed San Francisco—may soon find themselves exposed to more red tape.