California’s Senate Banking and Financial Institutions committee has passed a bill seeking to define digital assets and measure its impact on the state and consumer protections.
The bill, first proposed by California Assembly Majority Leader Ian Calderon, initially sought to presume digital assets are not securities. However, amendments to the bill by the Senate refrained from further defining digital assets and tokens. It now focuses on directing the Department of Business Oversight to conduct a study to see if California can enact policies similar to the Security and Exchange Commission’s (SEC) Proposed Securities Act Rule 195- Time Limited Exemption for Tokens.
The study wants to see how treating digital assets as securities for a limited amount of time can impact consumer protections, benefits to the state, and hat the minimum standards to meet the exemptions.