California Governor Executive Order to Regulate Crypto

California Governor Executive Order to Regulate Crypto

Governor Gavin Newsom has issued an executive order to encourage crypto development in the region. Newsom’s aim, as stated in the executive order, is to establish a clear and uniform business climate for blockchain enterprises that balances the rewards and dangers to consumers. The state, which has a larger economy than all but four nations and is the birthplace of most of the world’s technology innovation, is now the first U.S. state to publicly begin investigating how to comprehensively adapt to the blockchain technology and similar developments.

The state will promote a clear and uniform business environment for blockchain-related enterprises, particularly cryptocurrency projects and those of related financial technology, under the directive and the California Consumer Financial Protection Law approved in 2020. Newsom’s directive delegated authority to state agencies such as the Government Operations Agency (GovOps), the Department of Financial Protection and Innovation (DFPI), the Governor’s Office of Business and Economic Development (GO-Biz), and the Business, Consumer Services, and Housing Agency (BCSH). The governmental agencies have been entrusted with developing “potential blockchain applications and ventures,” which may include uses in the commercial sector, research, and the community.

According to Dee Dee Myers, senior advisor to Newsom and head of the Governor’s Office of Business and Economic Development, over a quarter of the 800 blockchain enterprises in North America are in the state, far more than any other state. She went on to say that they’ve heard from many people that want to come there, and the government want to assist them in doing so appropriately.

“California is a global hub of innovation, and we’re setting up the state for success with this emerging technology – spurring responsible innovation, protecting consumers and leveraging this technology for the public good. Too often government lags behind technological advancements, so we’re getting ahead of the curve on this, laying the foundation to allow for consumers and business to thrive.”

Newsom

Newsom’s approach is consistent with the executive order signed by President Joe Biden in March, which serves as the White House’s foundation for new crypto regulations. It’s too early to know how Newsom’s directive would affect the state’s bitcoin economy; no governmental regulations have yet been implemented, although preparations are in the works.

Considering the worries surrounding the stability of cryptocurrencies and the speculated income that’s flowed into digital assets, Newsom is bound to face skepticism. According to analytics firm Chainalysis, criminals stole a record $14 billion in cryptocurrency last year, and the SEC stated Tuesday that it will nearly quadruple its workforce charged with protecting users in cryptocurrency marketplaces.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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