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Does federal law take precedence for state regulation? It just seems like California has a narrower definition of "money transmitter" for the purposes of regula
by Torgo 13y ago
Does federal law take precedence for state regulation? It just seems like California has a narrower definition of "money transmitter" for the purposes of regulation inside their own borders above and beyond the federal one. Also, if a business is in compliance by state law but out of compliance federally, is California obligated to do anything about that? They allow medical marijuana dispensaries to operate despite being illegal at the federal level. Not insinuating you're wrong, just legitimately curious since IANAL.
- thinkcomp 13y agoFederal law definitely would preempt state regulation. Here, FinCEN has issued a guidance with what I believe is the weight of federal regulation however. California typically ignores FinCEN rulings (except this one), but generally shouldn't. Preemption is a complex business. Also, I'm not a lawyer, but this is one of the reasons why the issue is in federal court. The rules are so complex and contradictory as to be more of a burden on society than a help.