California Governor Issues Cryptocurrency Executive Order as State Eyes Blockchain Opportunities

The California governor has followed in the footsteps of president Biden to issue a cryptocurrency executive order. 

Governor Gavin Newsom, the governor of California, has issued an executive order for the state’s cryptocurrency and blockchain industry.

CNBC reported recently that the executive order lays out the roadmap for regulatory and consumer protection, while examining ways the state can benefit from the nascent asset class.

California Agencies Will Determine Suitable Regulations for Cryptos

The move would see the state’s Business and Development Office collaborate with the Business, Consumer Services and Housing Agency, as well as the Department of Financial Protection and Innovation, to establish regulatory guidelines for the California crypto sector.

The collaborating departments will harmonize federal and state laws to suggest a transparent and consistent environment for crypto and blockchain-related businesses, which will balance the benefits and risks to consumers.

Once the agencies have completed their study, they will submit a formal report and recommend the next steps.

The State Wants to Retain Tech Businesses

Dee Dee Myers, the director of the Governor’s Office of Business and Development, stated that the move is imperative to enable tech businesses to continue operating in the state of Carlifonia.

According to Myers, a quarter of the 800 tech businesses in North America are currently operating in California and following conversations with these companies, it is evident that they want to remain in the state.

“We’ve heard from so many that they want to be here, and we want to help them do that responsibly,” Myers said.

Myers noted that it is imperative to provide a regulatory framework for the state’s blockchain industry due to the unending benefits associated with the sector.

“We can do things like remove middlemen from transactions involving real estate or even automobiles. We can use [blockchain] to protect people’s identity and provide benefits to people through government services,” Myers added.

Government Moves to Regulate Cryptocurrencies

The lack of regulatory clarity has always been a stumbling block toward the growth of cryptocurrencies. Crypto-related businesses and investors have called on lawmakers and political leaders to establish clearer cryptocurrency regulations.

Apparently, governments across the world are now heeding these calls as significant moves have so far been made toward regulating cryptocurrencies.

The latest development comes less than two months after President Joe Biden’s administration published its long-anticipated cryptocurrency executive order.

Interestingly, California’s executive order would align with the Biden’s administration order, where relevant agencies are tasked with examining the risks and benefits associated with the nascent asset class.

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