AB-129’s impact may be limited to California, but its impact will almost certainly be felt across the bitcoin community in coming months. With an estimated 40% of all bitcoin-related U.S. jobs located in Silicon Valley, and tens of millions of venture capital coming into the bitcoin ecosystem from California-based funds, it’s imperative that bitcoin have some legal status in the state. With the State Assembly and the Governor’s Office seemingly giving the greenlight to the rapidly growing bitcoin industry, several parties on the fringe may now decide that bitcoin is becoming a safer bet for investment.
Perhaps even more interesting is how uncontroversial the law seems to be. This time last year, bitcoin was still largely known as a token of exchange for black market sales and as “hacker money.” The idea that the California government would change existing law to accommodate its growth would have been seen as laughable by most people. Yet, the law sailed through the State Senate with 7-1 vote, and then passed the State Assembly with ease, seeing a 52-11 approval.