California Gov Signs Executive Order To Regulate Crypto In The State
Newsom takes steps to regulate and foster cryptocurrency utilization
California is building a transparent and consistent business environment for companies operating in the blockchain. Governor Gavin Newsom created an executive order on Wednesday to provide structure to the industry and take into account the benefits and risks it poses to consumers.
The order tasks the Governor’s Office of Business and Economic Development (GO-Biz), in collaboration with the state Department of Financial Protection, to study purposes and developments for blockchain in the California state Legislature.
The Department of Financial and Professional Regulation has been ordered to create consumer protections, provide educational materials about cryptocurrency in California, and shape a regulatory approach to cryptocurrency. The order specifically says the materials will include information about how to avoid scams.
Newsom said “too often government lags behind technological advancements,” and this time, he’s getting ahead of it by laying the groundwork quickly.
Newsom’s plan aligns with the laws set by President Trump. They want to make sure cryptocurrency is regulated. Right now,
Kristin Smith, the executive director of the Blockchain Association, a trade group representing companies in the cryptocurrency industry, applauded Newsom’s executive order. She said the Blockchain Association welcomes California for “issuing an executive order to study crypto and digital assets,” and added that the crypto industry looks forward to collaborating with the government on regulations; “commonsense rules for industry.” This would allow California—and America—to lead in crypto innovation and regulation.
The Chamber of Digital Commerce has noted the order will help grow jobs in the blockchain industry.