AB 1489 — Virtual currency businesses: regulation.

1 sponsors · 0 co-sponsors · 121 not signed on

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Frequently asked questions

What does AB 1489 do?

(1) Existing law generally prohibits a person from engaging in the business of money transmission without a license from the Commissioner of Business Oversight. Existing law defines money transmission as selling or issuing payment instruments, selling or issuing stored value, and receiving money for transmission. Existing law, the Uniform Commercial Code, among other things, regulates the issuance and transfer of securities and prescribes rules pursuant to which entitlements for securities held by a securities intermediary are to be determined. This bill would enact the Uniform Regulation of Virtual Currency Businesses Act. The bill would prohibit a person from engaging in virtual currency business activity, or holding itself out as such, unless licensed or registered with the Department of Business Oversight, subject to a variety of exemptions. The bill would define "virtual currency" as a digital representation of value that is used as a medium of exchange, unit of account, or store of value, and that is not legal tender, whether or not denominated in legal tender, except as specified. The bill would define "virtual currency business activity" as exchanging, transferring, or storing virtual currency or engaging in virtual currency administration, whether directly or through an agreement with a virtual currency control services vendor, among other things. The bill would prescribe requirements for licensure, which would include provisions for recognition of a license from another state. The bill would also prescribe an alternative process of registration for businesses that have an annual virtual currency business of less that a specified dollar amount, as defined. The bill would establish requirements for security, net worth, and reserves for licensed and registered businesses. Among other things, the bill would prescribe requirements for examinations of these businesses, data sharing with other states, mergers and consolidations by licensees and registrants, and disclosures to be provided to customers. The bill would grant the department specified enforcement authority over these businesses, including specified civil penalties. This bill would also enact the Uniform Supplemental Commercial Law for the Uniform Regulation of Virtual Currency Businesses Act, which would provide rights to virtual currency businesses and their customers based on Uniform Commercial Code provisions. In this regard, among other things, the bill would provide that a licensee or registrant, as described above, is a securities intermediary and that the control of virtual currency by the licensee or registrant for the benefit of the user creates a securities account of which the user is the entitlement holder. (2) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect.

Who sponsors AB 1489?

AB 1489 is sponsored by Calderon, Lisa (Democratic).

What is the current status of AB 1489?

This bill died with 2019-2020 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

Where can I track AB 1489?

Track AB 1489 free on One Click Politics — get push/email alerts when it moves.