The governor of California – Gavin Newsom – introduced an executive order on digital assets, aiming to establish a regulatory framework for the industry and bolster blockchain adoption.
California to Become a Crypto Hub?
The governor of the US state with the largest economy issued an executive order on cryptocurrencies, which lays out a road map for regulatory and consumer protections. It also examines how digital assets and blockchain technology can be incorporated with California businesses.
Dee Dee Myers – Senior Advisor to governor Gavin Newsom – noted that the Western state is a preferred location for crypto-related companies. As such, the local authorities will aim to support their efforts with friendly legislation:
“Of the 800 blockchain businesses in North America, about a quarter of them are in California, dramatically more than any other state. We’ve heard from so many that they want to be here, and we want to help them do that responsibly.”
Newsom’s executive order is designed to “create a transparent and consistent business environment for companies operating in blockchain, including crypto assets and related financial technologies.” The directive will “harmonize” federal and California laws and balance the benefits and risks to consumers when dealing with bitcoin and altcoins.
Additionally, the order will focus on issues such as energy consumption when mining cryptocurrencies, climate risks, and the employment of digital assets in criminal activities.
“The opportunities are almost endless. We can do things like remove middlemen from transactions involving real estate or even automobiles. We can use it to protect people’s identities and provide benefits to people through government services. If we’re selling carbon offsets, we can make sure the same forest isn’t being sold twice and that there’s some record that’s transparent,” Myers concluded.
Currently, 37 US states have pending legislation on digital assets. In February, New Hampshire issued an executive order to propose new bitcoin laws.
Biden’s Executive Order on Crypto
Two months ago, the president of the USA – Joe Biden – issued the White House’s first-ever executive order on digital assets. The document recognized the growth of cryptocurrencies over the past few years and outlined how they can benefit the American society:
“The rise in digital assets creates an opportunity to reinforce American leadership in the global financial system and at the technological frontier.”
However, the directive noted that the employment of crypto hides its risks, and as such, investors should have maximum protection when delving into the asset class.