At first, the bill was meant to give a clear description of what digital assets are but California now wants to know how they will affect the state and the people if they were securities.
The Senate Banking and Financial Institutions committee in California has passed a bill that will enable everyone know how to describe an asset and determine how it affects the protection of the state and consumers.
The bill is called Assembly Bill 2150. It will influence the activities of regulatory bodies towards crypto if approved. After passing the California Assembly, it headed to the Senate which also passed it. In the next two days, members of the Committee on Appropriations will be deliberating on it.
The majority leader of the California Assembly, Ian Calderon, first proposed the bill because he had the intention to prevent the use of digital assets for securities. However, when it got to the Senate, questions on how digital assets would affect the government and citizens were raised. With this new interest, the Senate has delegated the Department of Business Oversight to know if it is possible for California to establish something like the Securities Act Rule 195—Time Limited Exemption for Tokens which was proposed by Commissioner Peirce.
The Department of Business Oversight will test the effect of digital assets as securities over a short time-frame. The impact of the assets is to be analyzed in relation to consumer protection and state benefits
In addition, the department is meant to bring up ideas for regulatory bodies to work with and also explain important terminologies to them. The result of this task is meant to be submitted on or before 2022 New Year ’s Day to the California Legislature.
The Securities Act Rule 195—Time Limited Exemption for Tokens that was proposed by Hester Peirce in February is yet to be accepted officially.