California Governor Gavin Newsom signed an executive order aimed at supporting blockchain innovation in the state on Wednesday.
California is the first state in the United States to provide a complete and unified framework for responsible blockchain technology to thrive, thanks to Executive Order N-9-22.
In keeping with President Biden’s executive order on digital assets issued earlier this year, the order aims to lay out a roadmap for the development of regulatory and consumer protection regulations for the blockchain sector. California, the world’s fifth-largest economy and home to some of the world’s most famous technological businesses, stands to benefit greatly from blockchain technologies, which are still mostly uncontrolled and unknown.
“Of the 800 blockchain businesses in North America, about a quarter of them are in California, dramatically more than any other state,” Dee Dee Myers, a former White House press secretary who is currently a senior advisor to Governor Newsom said. “We’ve heard from so many that they want to be here, and we want to help them do that responsibly.”
The order, which gets its mandate from the California consumer financial protection statute established by the legislature in 2020, wants to stimulate responsible web3 innovation, increase jobs, and safeguard consumers, among other things.
The order specifies seven major areas of attention, including the construction of a transparent and consistent business environment for blockchain enterprises and the start of public input in the drafting of comprehensive crypto rules. The directive will not only focus on creating legislation critical to blockchain innovation, but also those that reconcile federal and California laws, balance consumer advantages and risks, and embrace California values like as equity, inclusivity, and environmental protection.
California is a global innovation hub, and we are preparing the state for success with this emerging technology by encouraging responsible innovation, safeguarding consumers, and harnessing this technology for the public good,” said Governor Newsom in a statement.
Despite the fact that the market valuation of crypto assets will exceed $3 trillion in 2021, up from $14 billion just five years ago, America has been slow to develop a complete regulatory framework for digital assets. Lawmakers and market participants continue to clash on a variety of topics, with states such as New York even imposing a two-year freeze on proof-of-work mining.
“Too often, government lag behind technological advancements, so we are getting ahead of the curve on this, laying the foundation to allow for consumers and businesses to thrive” Newsom added.