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California State Kills Main Crypto Bill, Why?

One of the pressures in the crypto market is regulation. Many countries’ regulators are consistent in supporting the control and monitoring of crypto assets. These regulators always create laws to manage the industry and protect investors’ funds.

California and New York are taking the lead in global crypto regulations. For instance, crypto companies in New York currently operate under a law mandating them to get a “BitLicense” before offering virtual asset services. The law has become operational in the State, although the current mayor Eric Adams is not supportive of the law.

But apart from these top players, other States such as Arizona and Wyoming are also coming up with diverse crypto regulations.

California Bill For Crypto Businesses And Exchange

Another bill, like the BitLicense law, emerged in California. The “Digital Financial Assets Bill” will mandate exchanges and businesses in the industry to get a license from California regulators.

This bill had earlier passed the assembly with a 71-0 vote. It also gave the senate and now awaits the Governor, Gavin Newsom, to sign it by September 30. Unfortunately, but surprisingly, Newsom vetoed the bill.

The decision has surprised the regulators, but the crypto community is thrilled about it. Newsom wrote to the California State Assembly, stating that he would veto the bill. According to him, the crypto oversight bill is unsuitable for the State.

The Governor believes that the crypto industry is gaining more popularity by the day. As such, there should be a transparent law protecting the citizens of the State. To achieve that, Newsom mentioned that his administration had researched the crypto industry to uncover protective approaches for investors.

Therefore, signing a bill without cognizance of his research will be wrong. Also, he pointed out that the federal mid-term election is in the pipeline and should be completed first.

According to Newsom, the bill will draw tens of millions from the State’s general fund. This amount will be required in the cost-benefit analysis of the bill and will be accounted for during the State’s budgeting process.

So, he suggests that the regulators wait for now and develop a flexible approach to strike a balance between innovation and protection.

The Digital Asset Community Rejoices

Every regulation in the crypto industry affects operations in one way or another. That’s why the community applauds Newsom’s actions to keep the bill.

Crypto market expected to blow green candles | Source: Crypto Total Market Cap on TradingView.com

The Blockchain Association Jake Chervinsky applauded the Governor’s guts and strength in standing up to the State Assembly. Also, Miles Jennings from a16z praised Newsom for his support of Web3 in California.

Featured image from Pixabay, chart from TradingView.com

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Russian Cryptocurrency Volumes Across Several Exchanges Dip By 50%

Regardless of the growing economic sanctions against Russia, the volume of cryptocurrencies bought using Rubles across several major cryptocurrency exchanges plummets drastically.

According to data from blockchain-data aggregators display, Russian collateralizing crypto trading across significant crypto exchanges is dropping badly. This debunks the idea that Russia will leverage crypto assets in maneuvering sanctions.

Last week, when the Bitcoin price surged more than 15%, some crypto pundits proposed that the rally was related to Russians purchasing crypto assets amid the growing economic sanctions.

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Moreover, this belief seems contradictory as Chainalysis displayed data, revealing ruble-denomination cryptocurrency trading. It plummeted to $34.1 million on Thursday, which is about a 50%-decline since its recent high of $70.7 million last week on February 24.

Citigroup Analyst Comments On The Cryptocurrency Situation

Commenting on the topic of sanctions-focused crypto buying to Bloomberg. Alexander Saunders-Citigroup analyst responded that the trading volumes have been comparatively small recently. However, he also proposed that this PA is higher because of traders and investors preparing for an anticipated increasing demand from Russia instead of the country demanding for itself.

Regardless of pundits’ debunking, cryptocurrency could be essential to aid Russia in circumventing sanctions. But unfortunately, the EU (European Union) and the United States are still spurring their regulatory assessments of cryptocurrencies.

Cryptocurrency market expected to soar | Source: Crypto Total Market Cap on TradingView.com

Just recently, NY state upsurged its blockchain monitoring capabilities to further inhibit digital currencies from being used for aiding Russian interests.

Governor Of New York Against Russian Collaborations With The State

On February 27, Kathy Hochul, the governor of New York, gave an executive order informing agencies to terminate all collaborations with Russian companies and institutions, even entities and bodies that provide them assistance.

In her statement, she highlighted that New York is home to the country’s largest Ukrainian population. And will use all technological assets to safeguard her people, thus showing Russia that they will be held accountable.

The Blockchain Associations’ Head of Policy in the United States – Jake Chervinsky, described their worries as “totally unfounded. In his tweet, he explained his perspective of the ongoing situation.

He stated that Russia can’t and won’t be able to utilize cryptocurrencies to evade economic sanctions. Chervinsky buttressed that these worries misunderstand: how sanctions operate, how cryptocurrency markets work, how Putin aims to mitigate sanctions, etc.

Ari Redbord, the Head of Legal and Government Affairs at TRM Labs, also commented on bolstering this perspective further. He explained that currently, it’s too later for Russia to use cryptocurrencies to handle its sanctions.

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Also, he added that cryptocurrencies’ and blockchains’ transparent nature would make it possible for the entire public to monitor transactions and notice individuals or entities trying to maneuver sanctions.

Featured image from Pixabay, chart from TradingView.com