Dear Alamance County Republicans:
In a first for the United States, a bill sponsored by Rep. Steve Ross and being pushed by Sen. Rick Gunn does nothing more than protect out-of-state businesses and lobbyists at the expense of North Carolina businesses and consumers.
House Bill 289 (H289) would increase the barrier of entry for Cryptocurrency operators in North Carolina from $ 0 to thousands of dollars. Businesses that may currently operate in our great state without extensive financial checks, application fees and legal costs will be burdened and harmed by H289’s first-of-its-kind regulation.
If H289 becomes law on Monday – as it appears it will when senators take third reading on the bill on Monday (note top of page 3) – Cryptocurrency businesses will pull out of North Carolina – that is a certainty.
North Carolina would be the first state in the nation to regulate cryptocurrencies such as Bitcoin in statute. A similar bill was introduced in California last year, but it was too liberal even for them.
When California’s strikingly similar version of H289 was moving through their Assembly, 82% of Republicans voted against the bill. 100% of Democrats voted for the bill.
The California Senate – which, of course, is comprised of majority Democrats – hasn’t taken up the bill. Like North Carolina’s H289, the California Cryptocurrency bill would add burdensome regulation to a burgeoning industry.
Representatives of a Washington D.C. trade organization sponsored by out-of-state companies spoke in favor of H289 in a Senate Finance Committee a couple of weeks ago. Out-of-state companies that the organization represents would be exempt from H289.
If you are as conservative as we are, you were deeply concerned when Rep. Ross’s employer and other entities received hundreds of billions of dollars in a taxpayer bailout in 2008. Entities that received the bailout had consolidated power over decades by pushing emerging businesses out with over-regulation – they were too big to fail.
H289 consolidates power into a handful of Cryptocurrency businesses and discourages new entrants. If the industry keeps up its breakneck pace of growth, it too will have entities that are too big to fail – but only if bills like H289 are allowed to become law.
If H289 becomes law, we will send you all announcements from Cryptocurrency companies as they pull out of North Carolina.
There is nothing conservative about H289. Please urge Rep. Ross and Sen. Gunn to stop pushing this piece of legislation that’s too liberal even for California.
Sincerely and respectfully,