A bill unanimously passed
by the California State Assembly last week moves to end legal
confusion and make Bitcoin “lawful money.” AB 129’s fate now rests
with the State Senate.
Uncertainty still plagues Bitcoin’s relationship with law
enforcement. Individual Bitcoin users generally don’t struggle to
buy or sell goods in the U.S., but Bitcoin exchanges and services
have had to deal with confused, hostile regulators. In May 2013,
California’s Department of Financial Institutions threatened
Bitcoin Foundation with fines and jail time for operating a money
transmission service in
violation of the state’s financial code.
Because of the legal muddle, some Bitcoin services are
considering
moving overseas.
The California bill is a step toward legal clarity for Bitcoin
services. The “Bill Analysis”
reads:
This bill makes clarifying changes to current law to ensure that
various forms of alternative currency such as digital currency,
points, coupons, or other objects of monetary value do not violate
the law when those methods are used for the purchase of goods and
services or the transmission of payments.
Under the bill, increasingly popular alternative currencies like
Litecoin, Peercoin, Namecoin, and even Dogecoin, would be on the
same legal footing as Bitcoin.
Banking and Finance Chairman of the Assembly Roger Dickinson
first introduced AB 129 in January. CoinDesk reports
it “is now roughly halfway through the process to become a law.”
Once passed through the Senate Policy Committee and the Senate
Fiscal Committee it will reach the Senate Floor. If the bill
passes the Senate, the final decision rests with the California
governor.
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