The post California’s Crypto Revolution: New Regulations and Their National Impact appeared first on Coinpedia Fintech News

California Governor Gavin Newsom has signed into law two measures that could significantly shape the future of cryptocurrency and data privacy, not just in California but across the U.S. The legislation aims to build a robust framework for cryptocurrency businesses while enhancing data privacy protections for Californians.

Governor Newsom signed a bill to regulate the burgeoning cryptocurrency industry, a sector like the Wild West until now. The legislation comes on the heels of the collapse of the FTX cryptocurrency exchange last year, a turbulent event that rippled through the market and highlighted the need for regulation.

California is home to nearly a quarter of North America’s blockchain companies. This means the bill could serve as a prototype for other states or even at the federal level, especially with Congress showing no signs of moving swiftly on nationwide regulation. Despite having vetoed similar legislation in the past, Newsom’s change of stance underlines the urgent need for governance in the crypto world.

Key Provisions:

Establishes a basic regulatory framework for crypto businesses.

Requires companies to adhere to specific licensing requirements.

The Delete Act requires data brokers to expunge all information collected about an individual at the citizen’s behest. It also binds service providers and contractors associated with these data brokers to do the same.

California already had robust data privacy laws, but the Delete Act covers all information gathered about an individual. It also gives more power to the California Privacy Protection Agency, which is responsible for drafting and enforcing new rules.

Key Provisions:

Data brokers must delete all information every 45 days upon a single request from a consumer.

Data brokers cannot share or sell new personal information after a consumer has filed a request.

The California Privacy Protection Agency gets increased authority.

Implications and Reactions

For the Crypto Industry:

Increased regulatory oversight could deter fraudulent activities and impose higher operating costs.

Companies seeking to enter California’s market must now navigate regulatory hoops, potentially stifling innovation.

For Data Brokers:

Stricter regulations might make it cumbersome for data brokers to operate, but they bring much-needed transparency and control to consumers.

National Impact:

Both laws are likely to inspire similar measures in other states. The California model has previously served as a template for states looking to enact their regulations.

The crypto licensing bill and the Delete Act may signify a changing tide in the United States, catalyzing dialogues at the federal level. However, the state-by-state approach complicates the establishment of a unified standard.

While the crypto bill doesn’t specify a date for implementation, the Delete Act is scheduled to take effect on January 1, 2026. Legal challenges could delay both, but California has certainly set the stage for the next act in the evolving drama of crypto and data privacy regulation.

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Filed under: Bitcoin - @ October 14, 2023 10:25 am