[California Financial Regulator Opposes SEC's Cryptocurrency Plan, Warns of Potential Weakening Investor Protection] Odaily reports that the California Department of Financial Protection and Innovation (DFPI) has submitted a comment to the U.S. Securities and Exchange Commission (SEC) opposing its "Regulation Crypto Assets" proposal, arguing that the plan could weaken investor protection and limit state government oversight of offerings. DFPI Commissioner KC Mohseni stated that California opposes federal regulators weakening state-level regulatory authority and protective measures. The proposal suggests allowing eligible issuers to raise up to $5 million over four years through a startup exemption; another cryptocurrency funding exemption would allow issuers to raise up to $75 million over 12 months. Such offerings would require disclosure of the project, risks, and other information needed for investor assessment, and some funding rounds would require the submission of financial statements and ongoing reporting. Federal securities laws retain the authority for states to investigate securities fraud, deceptive practices, and the activities of illegal brokers or dealers. Blockchain payment company Ripple, cryptocurrency exchange Coinbase, and exchange operator Nasdaq all support the proposed changes; DFPI stated that its fraud tracking list has added nearly 200 cryptocurrency-related scams, a 30% increase from the previous year. (Bitcoin.com News)