According to CoinMeta, the California Department of Financial Protection and Innovation submitted a letter of opinion to the U.S. Securities and Exchange Commission (SEC), opposing its proposal for exemptions from cryptocurrency financing regulations. The department argues that such a scheme weakens investor protection and limits state-level regulatory authority. Commissioner KC Mohseni stated that California opposes federal regulators weakening state-level regulatory powers and protective measures. The proposed exemption would allow issuers to raise up to $5 million over four years or up to $75 million within 12 months. Ripple, Coinbase, and Nasdaq support the adjustment to the proposal. The California Department of Financial Protection and Innovation also noted that there has been a nearly 30% increase in cryptocurrency-related scams on its fraud tracking list, with nearly 200 new cases added this year compared to last year.