California Governor Jerry Brown has issued a cryptocurrency executive order, following in the footsteps of Vice President Joe Biden.
California Governor Gavin Newsom has signed an executive order regulating the cryptocurrency and blockchain industries in the state.
According to CNBC, the executive order lays out a regulatory and consumer protection framework while also looking into how the state may benefit from the new asset class.
California agencies will decide on appropriate crypto regulations.
The state's Business and Development Office would work with the Business, Consumer Services and Housing Agency, as well as the Department of Financial Protection and Innovation, to develop regulatory rules for the crypto sector in California.
The departments working together will unify federal and state rules to provide a clear and consistent environment for crypto and blockchain-related firms that balances consumer benefits and risks.
When the agencies have finished their research, they will present a formal report with recommendations for the next stages.
The State Wants to Keep Tech Companies
The move, according to Dee Dee Myers, director of the Governor's Office of Business and Development, is necessary to allow IT enterprises to continue operating in Carlifonia.
According to Myers, California is home to a quarter of the 800 tech companies in North America, and it is clear from interactions with these companies that they want to stay in the state.
Myers said: “We’ve heard from so many that they want to be here, and we want to help them do that responsibly.”
Because of the endless benefits associated with the blockchain industry, Myers believes it is critical to develop a regulatory framework for the state's blockchain industry.
Myers added, “We can do things like remove middlemen from transactions involving real estate or even automobiles. We can use [blockchain] to protect people’s identity and provide benefits to people through government services.”
Cryptocurrencies are being regulated by the government.
The absence of regulatory certainty has always been a roadblock to cryptocurrency adoption. Legislators and political officials have been urged to adopt clearer cryptocurrency rules by bitcoin-related firms and investors.
Governments all over the world appear to be listening, since substantial steps toward cryptocurrency regulation have already been taken.
The latest step comes less than two months after President Joe Biden's administration issued a long-awaited executive order on bitcoin.
California's executive order would, interestingly, dovetail with Biden's administration order, which directs relevant agencies to investigate the risks and benefits of the fledgling asset class.