California Set to Create Extensive Crypto Regulatory Framework as Governor Signs Executive Order

According to Top Govt. government officials in California, blockchain tech could help transform other industries working in the state.

California Governor Gavin Newsom has signed an executive order on cryptocurrencies. So, the purpose is to create a complete regulatory framework for the industry

This order will apply to the Governor’s Office of Business and Economic Development’s work. They’ll be working with the other departments like the Department of Financial Protection and Innovation and California’s Business. Further, they’ll be working for the Consumer Services and Housing Agency to develop extensive guidelines for the operations of the space.

New Regulatory Framework of California

This order actually aims to: 

“Create a transparent and consistent business environment for companies operating in blockchain, including crypto assets and related financial technologies, that harmonizes federal and California laws, balances the benefits and risks to consumers, and incorporates California values, such as equity, inclusivity, and environmental protection.”

California Governor Gavin Newsom has signed an executive order on cryptocurrencies. They want to create a comprehensive regulatory framework for the industry. 

Moreover, the order will see the Governor’s Office of Business and Economic Development work. They’ll be reviewing the other departments like the Department of Financial Protection and Innovation and California’s Business, Consumer Services, and Housing Agency to develop an extensive guideline for the operations of the space.

According to Dee Dee Myers, the director of the Governor’s Office of Business and Economic Development, about a quarter of the 800 blockchain businesses in North America are in California. 

Therefore, the executive order is a way for the state to create regulations. These regulations can help these businesses operate responsibly in the state.

The executive order requires the agencies to consult with stakeholders, critics, and consumer advocates. Besides, the agencies will also consult with other state agencies. They will also consider the federal reports on crypto-assets before reporting their findings.

Meyers mentioned how blockchain tech could revolutionize everything from transactions to protecting identity. 

Stakeholders Praise California Move

California is looking to make its regulations consistent with federal laws. Even it has mandated its agencies to release their report after those of the federal agencies.

To conclude, apart from California, other states are also waiting on the US government agencies’ reports before proceeding with their regulatory framework. With the Federal agencies expected to publish in 3 – 6 months, the crypto industry can expect a busy year in terms of regulations.

Author: admin