"We’re getting ahead of the curve on this, laying the foundation to
allow for consumers and business to thrive," said California Governor
Gavin Newsom.
Gavin Newsom, the governor of California, has signed an executive
order aimed at harmonizing a regulatory framework for blockchain between
the federal government and the U.S. state as well as spurring
innovation in the space.
In a Wednesday announcement, the California governor’s office said
executive order N-9-22 and the California Consumer Financial Protection
Law would allow the state to create “a transparent and consistent
business environment for companies” in Web3 and the crypto space,
including blockchain and financial technology firms. According to the
order, the California state government will need to establish a regulatory approach to crypto assets concurrent with that laid out in U. S. President Joe Biden's executive order on digital assets signed in March.
Specifically,
under the order the California Governor's Office of Business and
Economic Development would coordinate with the Business, Consumer
Services and Housing Agency and the Department of Financial Protection
and Innovation, or DFPI, to get feedback from stakeholders. The DFPI
will create a regulatory approach to crypto for the state as the
Government Operations Agency explores use cases of blockchain technology
for the public. In addition, the Governor's Council for Postsecondary
Education will be responsible for identifying opportunities for research
and workforce pipelines.
“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,” said the
governor. “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.”
Among the governor’s priorities for the order was addressing
regulatory clarity in the digital asset space, including having state
agencies coordinate with those on the federal level, and exploring
“opportunities to deploy blockchain technologies to address
public-serving and emerging needs.” The DFPI has 30 days to solicit
public comment on crypto regulations, while the state government has 60
days from the publication of a federal report related to the order to
report on progress to the governor's office.
Related: US lawmakers and Fed chair push for crypto regulation in wake of Russia sanctions
The
executive order was another example of the lack of a consistent
regulatory framework for crypto and blockchain firms operating in the
United States. While President Biden’s executive order attempts to
address some of these issues, lawmakers at the state level have also
acted, seemingly due to a lack of federal oversight. In February, New
Hampshire Governor Chris Sununu issued an executive order establishing a commission to study crypto. Crypto firms operating in New York state have been required to obtain a BitLicense since 2015.
