The executive order issued by Newson will encourage responsible innovation and evaluate how to implement blockchain for state and public institutions. The Californian government will need to adopt a regulatory approach to cryptocurrencies consistent with a decree signed by Joe Biden in March.
California recently became the first US state to chart a path to introducing regulations to control Bitcoin and other cryptocurrencies. Governor Gavin Newsom issued an executive order about crypto assets, laying out a road map toward consumer and regulatory protections. That regulation also examines ways for the state to take advantage of blockchain technology.
Dee Dee Myers is Senior Advisor to Newson and Director of the Governor’s Office of Business and Economic Development. She said that about 25% of the 800 blockchain companies in North America are in California. She highlighted that they want to allow many that want to be there to do so responsibly.
California Takes a Step to Adopt Blockchain Technology
That executive order, under the California Consumer Financial Protection Act enacted in 2020, will allow the creation of a regulatory approach to encourage responsible innovation. In addition, they will evaluate how to implement blockchain technology for state and public institutions.
The government seeks to create a transparent business and regulatory environment for Web 3.0 businesses. It should adjust to the federal approaches of California and balance consumer benefits and risks.
Gavin Newsom said that California is a global innovation hub and that his administration is preparing the state to succeed in using blockchain. They aim to stimulate responsible innovation, protect consumers, and take advantage of that technology for the public good.
The Californian governor also stated that the government has often lagged behind technological advances. He explained that this led them to get ahead, laying the groundwork to enable consumers and businesses to thrive.
The Governor of California Announces the Executive Order N-9-22
The Californian government will have to establish a regulatory approach to cryptocurrencies. It should be consistent with the executive order signed by Joe Biden in March.
Newsom is directing the state Office of Business and Economic Development to work collaboratively with the California Business, Consumer Services, and Housing Agency. They will also work with the Department of Financial Protection and Innovation (DFPI) to receive feedback from the parties concerned.
The DFPI will adopt a regulatory approach to deal with cryptocurrencies in the state. In the meantime, the Government Operations Agency will explore use cases of blockchain technology for the public.
Within 30 days, the DFPI will have to request public comments on the crypto regulations. Besides, the Californian government will have to inform of progress within 60 days since the publication of the federal report on the order.
Amy Tong, the secretary of the California Government Operations Agency, stated it is critical to engage with the industry. She added that they should start learning the pros and cons of innovative technology soon. She concluded that they could take the following steps to get ahead of the curve and take advantage of the potential of those tools to improve the government.
By Alexander Salazar