California Gov. Gavin Newsom signed an enforcement order on Wednesday, which lays the groundwork for strengthening and regulating the country’s cryptocurrency industry (through CNBC). As stated in executive orderNewsom’s goal is to “create a transparent and consistent business environment for blockchain companies” that balances “the benefits and risks to consumers”.
The executive order calls on the California Governor’s Office of Business and Economic Development (GO-Biz) to work with the U.S. Department of Financial Protection and Innovation (DFPI) and the Business, Consumer Services and Housing Agency (BCSH). Together, government agencies have the task of developing “potential blockchain applications and initiatives” that could include applications from the “private sector, academia and community”.
It also instructs DFPI to develop a regulatory approach to cryptocurrencies, create consumer protection, and produce educational materials that inform California residents about both the risks and benefits of cryptocurrencies. The order specifically states that the materials will “include information on how to avoid fraud and fraud”, one of the main concerns about crypto.
“Too often, the government is lagging behind in technological advances, so we are ahead of the curve by laying the groundwork for consumers and businesses to thrive,” Newsham said in a statement.
Newsom’s plan is in line with an executive order signed by President Joe Biden in March, which serves as the White House’s framework for future regulation of cryptocurrencies. It is too early to say how Newsom’s order will affect the cryptocurrency industry in California – no regulatory measures have been introduced yet, but there are plans to do so.
Christine Smith, executive director of the Blockchain Association, a trading group representing companies in the cryptocurrency industry, welcomed Newsom’s executive order. “The Blockchain Association applauds California for issuing an enforcement order to investigate crypto and digital assets,” Smith said in a statement. On the edge. She also added that the crypto industry looks forward to working with the government “on common sense rules for the industry to allow California – and the United States – to lead in crypto innovation.”
The Chamber of Digital Commerce, a blockchain technology advocacy group, had a similar response, noting the order “correctly recognizes the role that blockchain technology plays in stimulating job growth and economic competitiveness for the state but also for the national economy.”