According to CoinMeta, as reported by bitcoin and news, the California Department of Financial Protection and Innovation has submitted a letter of opinion to the U.S. Securities and Exchange Commission (SEC) opposing its proposed "Cryptocurrency Asset Regulation." The department argues that restricting state-level registration and qualification requirements will weaken pre-issuance investment screening. The proposal intends to allow eligible issuers to exempt themselves from financing up to $5 million over four years through startup exemptions, or up to $75 million per 12 months through cryptocurrency financing, while also establishing disclosure and reporting requirements. Federal anti-fraud regulations will still apply, and each state retains the authority to investigate securities fraud and the activities of illegal brokers.