California governor Gavin Newsom signed an executive order on Wednesday local time, laying the foundation for supporting and regulating the state's cryptocurrency industry As stated in the executive order, Newson's goal is to "create a transparent and consistent business environment for companies operating in the blockchain field" to balance "benefits and risks to consumers".
The executive order calls on the California governor's office of business and economic development (go biz) to cooperate with the state's Department of financial protection and innovation (DFPI) and the Department of Commerce, consumer services and housing (bcsh). The task of these state government agencies is to jointly design "potential blockchain applications and enterprises", which may include applications in the private sector, academia and the community.
In addition, it ordered DFPI to develop regulatory methods for cryptocurrency, establish consumer protection measures and produce educational materials to inform California residents of the risks and benefits associated with cryptocurrency. In particular, the order states that these materials will "include information on how to avoid fraud and fraud", which is one of the main concerns about cryptocurrencies.
"Governments often lag behind technological progress, so we are ahead in this area and lay the foundation for the prosperity of consumers and enterprises," Newsom said in a statement
Newsom's plan is consistent with the executive order signed by US President Joe Biden in March. It is reported that Biden's order is proposed as the framework for the future cryptocurrency supervision of the White House. It's too early to judge how Newsom's order will affect California's cryptocurrency industry - no regulatory measures have been introduced, but there are plans.
Kristin Smith, executive director of blockchain Association, a trade group representing cryptocurrency industry companies, welcomed Newsom's executive order. "The blockchain Association appreciates the executive order issued by California to study cryptocurrencies and digital assets," Smith said in a statement to the verge. In addition, she added that the cryptocurrency industry is looking forward to working with the government to formulate reasonable rules for the industry so that California - and the United States - can take the lead in cryptocurrency innovation.
The chamber of digital commerce, an advocacy group for blockchain technology, responded similarly, noting that the order "correctly recognizes the role of blockchain technology in stimulating employment growth and economic competitiveness in the state, as well as the national economy."