The order prompts the creation of a regulatory framework for blockchain technologies and crypto financial assets.
By Brandy Betz May 4, 2022 at 12:19 p.m. Updated May 4, 2022 at 12:36 p.m.
California Governor Gavin Newsom signed an executive order on Wednesday to “create a transparent regulatory and business environment for Web 3 companies” in the state, according to a press release.
- Under the order, as well as the California Consumer Financial Protection Law passed in 2020, the state will create a “transparent and consistent business environment” for blockchain-related companies, including crypto asset projects and those of related financial technologies.
- California will also collect stakeholder feedback to create crypto asset regulations in conjunction with federal authorities, assess the use of blockchain technologies for state and public institutions, and create paths for blockchain-related research and work development programs.
- On the regulation front, California plans to coordinate with Washington, D.C., for advice based on the crypto federal executive order that President Joe Biden signed in March.
- “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,” Newsom said in a statement. “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.”
- In late 2020, Newsom restructured the California department responsible for regulating financial services to also supervise the growing crypto industry.