California Governor Gavin Newsom signed a new executive order on cryptocurrency on Wednesday, May 4. Given that California is the largest economy in the United States, this is really exciting news. Hence, it may encourage governors in other states to follow suit.
The executive crypto order lays out a regulatory and consumer protection roadmap. It also discusses the advantages of blockchain technology and the adoption plan. Dee Dee Myers, a senior advisor to Newsom, said to CNBC:
“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.”
Newsom has requested that his state’s business and economic development office collaborate with the California Department of Business, Consumer Services, and Housing.
California Crypto Executive Order Key Factors
The crypto executive order aims to create a transparent business climate for crypto companies. Myers went on to say that the Executive Order “balances the benefits and risks to consumers, and incorporates California values, such as equity, inclusivity, and environmental protection”.
As a result, the state agency will present its findings and recommendations for the next steps shortly. Myers stated that the agency intends to perform multiple consultation rounds with the stakeholders. They’ll also speak with consumer advocates and critics. Myers added, “
“The opportunities are almost endless. We can do things like remove middlemen from transactions involving real estate or even automobiles. We can use it to protect people’s identity and provide benefits to people through government services. If we’re selling carbon offsets, we can make sure the same forest isn’t being sold twice and that there’s some record that’s transparent.”
He went on to say that, in addition to promoting innovation, it’s critical to put in place “guardrails” and eliminate bad actors to “make sure there are enforceable and clear guidelines to protect everybody.”