Hi all, I’m hoping to tap the wisdom and experience of this community. I’m 60, based in Los Angeles, and after decades in another industry, I’ve gone all-in on building a second career as a crypto scalp trader. I approach this with discipline: I’ve spent two solid months paper trading on TradingView, refining a scalping system with custom indicators that fits my style and technical strengths. My current paper-trading win rate is around 64%. I was set to start a $100k, 3-phase prop firm challenge this week—until I learned (at the worst possible moment) that California’s new regulatory environment basically makes funded prop firm accounts, especially those involving crypto, impossible for residents. The law, not my ability, has shut the door. My question for the Elite Trader community: Are there any legitimate paths left for a serious trader in my situation? I’m not looking for shortcuts or hype—just reality-based advice or workarounds for someone in California who’s dedicated to making trading a viable second career. Has anyone found a solution, a compliant route, or a legit offshore opportunity? Are there lesser-known firms or models I should look into? What would you do in my shoes? Appreciate any honest guidance, warnings, or suggestions. I know I’m not the only one in this spot, and I’m hoping to find a real way forward. Thank you! Joakim
what makes it illegal in Cali? Chat GPT has this to say: Trading Bitcoin via a funded prop account from California is not illegal for the trader if: You’re trading the firm’s funds. You’re not acting as a money transmitter or broker for others. Biggest risk is the prop firm’s regulatory status, not your personal trading. All earnings must be reported as income for tax purposes.
Thanks for the input. The issue isn’t that it’s illegal for me to trade — I get that. The problem is that most prop firms block California residents on their end due to DFPI regulatory risk. So even if I’m compliant, they won’t let me start or complete a challenge. That’s the real barrier I ran into.
You're not alone—California's rules have made it tough. Look into offshore prop firms with solid reputations, or consider trading your own capital with tight risk management. Some traders also explore LLC setups in other states. Stay disciplined and keep refining your edge!
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