Gavin Newsom, California’s Governor, has signed an executive order to facilitate California agencies and federal government officials to create regulations for cryptocurrency. This is huge news for businesses and tech investors in California who have been waiting for this for almost a decade.   

With this new executive order, California officials will explore and incorporate blockchain technology into government operations within the state. On top of that, it will develop and provide a roadmap surrounding regulations and customer safeguards within blockchain technology and cryptocurrency.  

What are the hopes of this new executive order? 

California is known for being ahead of the game when it comes to technological advancements. This new venture is no exception.   

This executive order comes with the hopes of understanding ways that the state of California can take advantage of Blockchain technology.  Governor Newsom said he hopes this effort will help to create a transparent regulatory and business environment for Web 3 companies.  

How could this help California?  

Recognizing that cryptocurrency can bring about new companies and jobs is a big part of understanding how California could benefit from this executive order.  

One of Gavin Newsom’s senior advisors and director of Business Economic development, Dee Dee Myers made this statement — 

“Blockchain technology is potentially an explosive creator of new companies, new jobs, and new opportunities. Of the 800 blockchain businesses in North America, about a quarter of them are in California, dramatically more than any other state. We’ve heard from so many that they want to be here, and we want to help them do that responsibly.” 

Why now?   

That’s an easy answer – the state of California wants to get engaged in cryptocurrency early. Governor Newsom is aware that there are a lot of unknowns within the cryptocurrency and blockchain industry. By getting in early Newsome hopes to get ahead of the curve to set guidelines and systems before the industry becomes more mainstream than it already is. Newsom is quoted saying “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 businesses to thrive.”  

A more in-depth look  

This order that Governor Newsom has signed is targeted to create a consistent and transparent environment for companies and businesses operating with blockchain or cryptocurrency financial technologies. In broader terms, the new order will create guidelines for companies that offer financial products and services related to crypto and blockchain technology. These guidelines will be used to balance the benefits and risks to consumers and harmonize California with federal laws within this industry, all while incorporating California values including equity, inclusivity, and environmental protection.  

California’s stance on cryptocurrency comes at an important time where security and regulatory concerns are at the forefront of discussion surrounding the cryptocurrency and blockchain industry. 

*This blog article cannot and does not contain legal advice. The information is provided for general informational purposes only which are factually based on research and personal experience. This is not a substitute for professional advice from your own legal counsel. Accordingly, before taking any actions based upon such information, we encourage you to consult with your legal counsel. We do not provide any kind of legal advice. The use or reliance of any information contained in this blog is solely at your own risk.