EFF also felt the bill's drafting was based in misunderstanding of the world of digital currencies that would have led to some regulatory absurdities:
Take for example, a provision requiring anyone who transmits digital currencies to another person to register and comply with its complex regulations.
Digital currency users often directly transmit digital currency value to others without any intermediary, meaning those users would have been subject to the regulations even though they are merely using a digital currency....
The bill also would have required video game makers who offer in-game digital currency or goods to register, as the exemption for such activity is limited to items or currency that have no value outside of the game. The reality is that many items and currencies within games often have independent markets in which players buy, sell, or exchange items, regardless of whether a game maker allows for those transactions...
http://reason.com/blog/2016/08/22/california-bitcoin-regulatory-bill-pulle
