Despite growing support, cryptocurrencies have yet to see mainstream implementation in the US economy. Many people and regulatory agencies are unsure of what to do with crypto, stalling its adoption. California has made some significant strides in this regard recently, setting an example for the rest of the nation.
California is no stranger to embracing change, so its support for a cryptocurrency economy may not come as a surprise. Given its high population, economic status, and cultural significance, it also holds major influence over the rest of the country. As California moves toward legitimizing crypto, the rest of the nation, and even the world, may follow.
Through recent legislation and an independence movement, California is demonstrating how economies and governments can embrace cryptocurrency.
California Legislation Empowers Crypto Companies
On August 13, California's State Assembly unanimously passed AB-2150[1], which would clarify crypto's status as an asset. In California and the rest of the US, the SEC could classify crypto tokens as securities. If written into law, this bill would exempt cryptocurrencies from this classification, giving crypto companies more freedom.
Securities are subject to strict regulation, which has been a problem for some cryptocurrency issuers. Some have had to pay millions of dollars[2] due to these restrictions, which can discourage crypto innovation. In the face of these challenges, companies could potentially give up on pursuing crypto or move to another country.
The US is already experiencing a tech talent shortage, with roughly 1.4 million more openings[3] than applicants. If legal regulations keep driving tech innovators away, this problem will only increase. Legal protections for cryptocurrencies could help keep crypto companies in the US, bringing more money into the economy.
In light of the recent recession from the COVID-19 pandemic, the US needs
