Gambling Cryptos Top $150 Million In Market Value

September 18, 2020

Telsa CEO Elon Musk Schools Harry Potter Author On Cryptos

October 2, 2020

Is California The Future of US Cryptocurrency?

Digital currency that relies on blockchain technology is still a hot topic of discussion. The crypto industry has its fair share of advocates. It also has a legion of detractors that do not see or understand its place in a global economy.

One of the main reasons why this major divide of opinion still exists is regulation. Or in the case of cryptos, deregulation. By nature, they are decentralizedin the absence of any controlling financial or governmental institution. Transactions are recorded by a single number. They do not require any personal data or other sensitive information. They do require blockchain technology to store transaction records.

Is California Really The Future of US Cryptocurrency?

A recent post on ArmyOfBitcoin.com positioned California as the market leader for America’s crypto economy. This makes all the sense in the world given the ‘Left Coast’ image this state portrays so well.

The Army Of Bitcoin states that we have yet to see mainstream implementation of cryptocurrencies in the US economy.

While interest and even support continues to grow, the decentralized aspect is hard to grasp. Many consumers as well as governmental agencies remain leery on cryptos as a legitimate currency. Of the 50 states that make up this nation, California has the highest percentage of acceptance. It has also made some noteworthy strides in forwarding the crypto agenda.

This is probably no big surprise to anyone even remotely aware of this state. Progressive by nature, California has always turned to its constituents as implements for change. Voter referendums are a way of life when it comes formulating state law.

Because of its overall size and economic status, California itself is a powerful implement for change. It holds some major influence among the 50 states. If this state continues to move in favor of cryptos, others will follow. At least, this is the case that ArmyOfBitcoin.com is trying to make.

There is some credence to California championing the crypto cause. On Aug. 13, the State Assembly passed AB-2150 by a unanimous vote. This piece of legislation classifies cryptocurrency as an asset.

On the federal level, the SEC classifies crypto tokens as securities. Assets have much more regulatory leeway than securities. If the California bill becomes state law, cryptos companies would have more freedom to operate.

By their nature, securities are subject to a much higher level of regulatory control. This, in turn, has discouraged many crypto-based companies from reaching their potential. Up front costs to operate due to existing regulations are too high.

Supporters believe that if those regulations were less stringent, more crypto companies would operate in the US. Right now, the barriers to entry remain too high.

Now more than ever, the US government along with every state is looking for ways to boost the economy. Crypto supporters are looking towards California to lead the way for this industry. They are hoping that success on the West Coast will lead to even more success for the US as a whole. Time will tell if this will be the case.