California Governor Gavin Newsom on Wednesday signed an executive order laying the foundation for strengthening and regulating the state’s cryptocurrency industry (via CNBC). As outlined in the executive order, Newsom’s goal is to “create a transparent and consistent business environment for companies doing business on blockchain” that “balances the benefits and risks for consumers.”
The executive order requires the California Governor’s Office for Business and Economic Development (GO-Biz) to work with the state Department of Financial Protection and Innovation (DFPI) and the Business, Consumer Services and Housing Agency (BCSH). Together, the government agencies are tasked with developing “potential blockchain applications and ventures” that could include “private sector, academic and community applications.”
It also orders the DFPI to develop a regulatory approach to cryptocurrencies, create consumer protection measures, and create educational materials that educate California residents on both the risks and benefits associated with cryptocurrencies. The order specifically states that the materials “contain information on how to avoid scams and fraud,” one of the key concerns surrounding crypto.
“Too often, government lags behind technological advances, so we’re ahead of the curve and laying the foundation for consumers and businesses to thrive,” Newsom said in a statement.
Newsom’s plan is consistent with the executive order signed by President Joe Biden in March, which serves as the White House framework for future cryptocurrency regulation. At this point, it’s too early to say how Newsom’s order will affect the California cryptocurrency industry — regulatory action hasn’t been put in place yet, but plans are in place.
Kristin Smith, the executive director of the Blockchain Association, a trade group that represents companies in the cryptocurrency industry, welcomed Newsom’s order. “The Blockchain Association applauds California for issuing an executive order to study crypto and digital assets,” Smith said in a statement The edge. She added that the crypto industry looks forward to working with the government “on sensible rules for the industry so California – and the United States – can lead in crypto innovation.”
The Chamber of Digital Commerce, an advocacy group for blockchain technologies, had a similar response, notice The regulation “rightly recognizes the role that blockchain technologies play in driving job growth and economic competitiveness of the state, but also of the national economy.”
https://www.theverge.com/2022/5/7/23061351/california-governor-signs-executive-order-aiming-regulate-foster-cryptocurrency-usage California governor signs executive order shaping cryptocurrency regulation in the state