California Governor Gavin Newsom signed an executive order last week that lays the groundwork for bolstering and regulating the cryptocurrency industry in the state reported CNBC. As outlined in the executive order, Newsom’s goal is “to create a transparent and consistent business environment for companies operating in blockchain,” that balances “the benefits and risks to consumers.”
The executive order calls upon the California Governor’s Office of Business and Economic Development (GO-Biz) to collaborate with the state’s Department of Financial Protection and Innovation (DFPI) and Business, Consumer Services and Housing Agency (BCSH). Together, the state agencies are tasked with devising “potential blockchain applications and ventures,” which could include applications in the “private sector, academia, and community.”
It also orders the DFPI to shape a regulatory approach to cryptocurrency, create consumer protections, as well as produce educational materials that inform California’s residents about both the risks and benefits associated with cryptocurrencies. The order specifically says the materials will “include information about how to avoid scams and frauds,” one of the major concerns about crypto.
“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,” Newsom said in a statement.
Newsom’s plan aligns with the executive order President Joe Biden signed in March, serving as the White House’s framework for future cryptocurrency regulation. Right now, it’s too early to tell how Newsom’s order will impact California’s cryptocurrency industry — no regulatory measures have been rolled out just yet, but the plans are in place to do so.