An executive order aimed at setting up a regulatory framework and fostering the development of the crypto industry within California has been issued on Wednesday by the Democratic Gov. Gavin Newsom.
Newsom asked the state agencies to report back within 60 days with the review.
That makes the state of California the first in the nation to begin creating a comprehensive and harmonized framework for responsible web3 technology to thrive within the high-profile – and often controversial- industry.
Describing California as a global hub of innovation, Newsom said that they’re setting up the state for success with this emerging technology leveraging it for the public good, protecting consumers, and spurring responsible innovation.
Reaching more than a $3 trillion market cap as of last November, the crypto assets and blockchain technology have become a thriving industry and Newsom believes the new order would position the Silicon Valley home at the fore of the transformative sector, laying the foundation to allow for consumers and business to thrive.
The Wall Street Journal previously noted that several US states, including New York and Wyoming, have already passed narrow laws addressing parts of the crypto industry and addressing at least some aspects of the crypto markets.
Pointing out that Newsom’s executive order rightly recognizes the blockchain technologies’ role in enticing job growth and economic competitiveness for California, the industry groups lauded the initiative and welcomed common-sense rules which are to be consistent with the developing federal approach.
President Biden signed in March an executive order directing multiple federal departments to conduct a review of the cryptocurrency industry with an eye toward federal actions, which should take three to six months
A senior administration official said at the time that the oversight is necessary to avoid risks stemming from the explosive growth in cryptocurrency use to Americans and to the stability of the US businesses, financial system, and national security.
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