In a recent move, the governor of California Gavin Newsom has issued an order which potentially lays out a road map for consumer protections as well as for regulatory data on cryptocurrency. The idea is trying to examine the various ways in which the state can utilize the blockchain as well as the digital assets that are associated with it.
If you look at the 800 blockchain-based businesses that reside in North America, you will see that around 25% of them are in California. Newsom believes that the move is going to help create a very transparent and consistent environment for businesses and that this is going to really help those who operate within the blockchain. This happens to include blockchain and crypto assets. This will harmonize with Californian law, and it will also help to balance the risk and the benefits that are offered to customers.
California is Going to Coordinate Plans with Washington D.C.
When you look at the regulation front, you will see that California have the aim of trying to coordinate with Washington D.C. They will consult them for advice regarding the order for crypto that President Biden signed back in March. California is ultimately a global hub when it comes to innovation, and it is strongly believed that they are setting the whole state up for success by harnessing emerging technology. The fact that they are using the technology for the public good is certainly a positive sign. Governments are often behind the curve and lagging behind, but Gavin Newsom looks to have tried to get ahead of this by laying the foundation for both consumers and businesses.
Producing Educational Materials
Newsom stated in the executive order that one of the major goals is “to created a transparent and consistent business environment” as well as providing Californians with educational materials that will “include information about how to avoid scams and frauds”.
By providing more access to helpful information about crypto and the blockchain, residents will have the opportunity to become more informed and there could be interest from more and more people once they have read the trustworthy material produced by the state.
Restructuring the Californian Department
This move looks to have been in place for quite some time. In 2020, Gavin Newsom restructured the department that is responsible for the general regulation of services. This is designed to supervise the thriving industry. The governor also wants various public institutions to engage on a proactive level within the industry. The outline spans across seven different priorities. This includes establishing a public-serving use as well as collecting information from various stakeholders. This is being done to try and create a working environment in which students themselves can be exposed to brand-new opportunities.
The order contains some deadlines for gathering general information from the public, but so far there is no deadline for regulatory action. The only deadline that is mentioned is to give both banks and credit unions that deal with cryptocurrency assets the guidance they need to navigate these new waters. The deadline for that is currently set at March 31st, 2023.
The Californian executive order is a vital step in crypto continuing to be regulated and adopted into the mainstream. Other states may soon follow their leads too, further reinforcing that this move by California is a very exciting moment in the history of the industry.