One-Sentence Bill Legalizes Bitcoin Use in California
Posted at 12:46 p.m. on June 30
Brown, speaking at the Computer History Museum in Mountain View, Calif., in March. (Josh Edelson/AFP/Getty Images)
Using bitcoins for transactions was illegal in California until this weekend, until Democratic Gov. Jerry Brown signed a bill that repealed a state law banning the use of “anything but the lawful money of the United States.” For a piece of legislation on such a complex topic, it was surprisingly brief.
“Section 107 of the Corporations Code is repealed,” states the bill, also known as AB 129, sponsored by Assemblyman Roger Dickinson, a Democrat from Sacramento. Although the legislation mentions no currency by name, Dickinson indeed wrote it with bitcoin and similar things in mind. (Here’s an analysis prepared by the Assembly’s Committee on Banking and Finance earlier this year.)
The move should help smooth Bitcoin’s relationship with the state, according to CNET:
The Bitcoin Foundation, a nonprofit devoted to promoting best practices for the virtual currency, was ordered last year to cease operations in California, or face hefty fines. The California Department of Financial Institutions, which oversees banks, credit unions, and other financial organizations operating in the state, accused the foundation of “engaging in the business of money transmission without a license or proper authorization.”