California's crypto supervisory authority fights with budget cuts
California's efforts to regulate cryptocurrency companies are faced with considerable challenges, since the state's cryptoinpector, the Department of Financial Protection and Innovation (DFPI), 193 million dollars are currently missing. Due to these financial difficulties, California's new law on digital financial investments (DFAL) could not come into force immediately. This could endanger consumers and make the regulatory future of the state unclear.
Officials say the funds are scarce
The law on digital financial investments was passed in 2023 and comes into force in July 2025. It should bring order and control into the rapidly growing crypto industry. The law states that all crypto companies in California must have a license from the DFPI. This ensures that these companies comply with fundamental rules for security, compliance and customer protection.
However, representatives of the DFPI said that the authority currently does not have the necessary resources in order to properly implement this order. In view of a forecast financial gap of $ 193 million, the authority could not be able to hire employees in good time before the law comes into force, to build up the necessary digital infrastructure or to do important compliance work.
If DFAL is not fully implemented, crypto companies could no longer be monitored by the government and users could be exposed to higher risk of fraud or loss. The delay could also damage California's reputation as a national pioneer in terms of crypto regulation and new ideas.
Consumer protection in danger
The licensing system of the DFPI is an important part of consumer protection. It would force crypto companies to comply with operating rules, to speak openly about financial risks and to ensure security measures. Without money, the DFPI cannot carry out any background exams, checks, audits or the processing of consumer complaints.
Industry representatives fear that any delay in enforcement could create a gray area in the law. People who are indifferent to the well -being of others could take advantage of this gap by offering customers false services or obvious fraud. In addition, legislative companies could damage their reputation if the rules appear weak or unreliable.
Effects on other crypto guidelines
The lack of money could possibly hinder work on other crypto -related laws, such as the draft law 1052 of the assembly. This measure would allow California, not claimed Bitcoin From resting wallets after a certain time, as is the case with abandoned bank accounts or bank lockers.
It also suggests that companies should have the opportunity to accept digital assets as a means of payment. The two laws, DFAL and from 1052, are to work together. Without a well -financed and functioning DFPI, however, it should be very difficult to enforce and use these new framework conditions.
A critical test for the legislator
Now the political decision -makers have to act in California. Possible options are the provision of emergency funds, the redistribution of resources or a step -by -step start of the licensing program. However, these are only short -term solutions, and experts say that only a sufficiently financed DFPI can achieve the goals of the law.
Others suggested that the federal government should work with authorities such as the SEC or the CFTC in order to keep an eye on the companies in the meantime. However, this would limit California's possibilities to set their own rules, and the efforts of the state to take on a leading role in the digital economy.
California has always been proud of its innovative and future -oriented regulations, but the financing dilemma of the DFPI puts this story to the test. If the government does not help with funds quickly, the promise of a safer, better regulated crypto ecosystem could run into nothing. This endangers consumers and throws back political preparations for years.
