California becomes the first state in the nation to begin creating a comprehensive and harmonized framework for responsible web3 technology to thrive The Executive Order aims to create a pipeline of talent for the emerging industry and leverage technology for the public good
SACRAMENTO – Today, Governor Gavin Newsom signed an executive order to promote responsible innovation, strengthen California’s innovation economy and protect consumers. It aims to create a transparent regulatory and business environment for web3 companies that harmonizes federal and California approaches, balances benefits and risks for consumers, and incorporates California values such as equity, inclusion and environmental protection. Under this order, and under the California Consumer Financial Protection Law enacted by the legislature in 2020, California will begin the process of creating a regulatory approach to stimulate responsible innovation while protecting California consumers, considering how to distribute blockchain technology. for state and public. institutions, and build research and workforce development pathways to prepare Californians for success in this industry. “California is a global hub for innovation, and we are setting up the state to succeed with this new technology – stimulating responsible innovation, protecting consumers and leveraging this technology for the benefit of the general public,” said Governor Newsom. “All too often, the government lags behind in technological progress, so we get ahead of it and lay the groundwork for consumers and businesses to thrive.” The executive order builds on President Biden’s recent actions to bring regulatory clarity to these new products and services – and puts California on a path to harmonizing with upcoming federal rules and guidelines, creating regulatory clarity for businesses and protecting consumers. A burgeoning industry, cryptocurrencies and blockchain technology surpassed a market value of $ 3 trillion in November last year, up from $ 14 billion just five years earlier. According to research, about 16 percent of adults have invested in, traded or used cryptocurrencies. As of April 22, late-value cash valuations for venture capital-backed blockchain and cryptocurrency companies have risen an average of 91 percent, to $ 3.95 billion, according to PitchBook data. According to the executive order, the state has seven priorities:
- Create a transparent and consistent business environment for companies operating in the blockchainincluding cryptocurrencies and related financial technologies, which harmonize federal and California laws, balance benefits and risks for consumers, and incorporate California values such as equity, inclusion and environmental protection.
- Gather feedback from a wide range of stakeholders, create a regulatory approach to harmonize cryptocurrencies between federal and state governments, explore and establish public use cases (such as the incorporation of blockchain technologies into state operations), and build research and workforce pipelines.
- Gather feedback from a wide range of stakeholders for potential blockchain applications and initiatives, with special attention to cryptocurrencies and related financial technologies. The engagement should include technical experts, stakeholders interested in addressing inequalities and environmental impacts, companies both based in and outside California, and more.
- Engage in a public process and exercise statutory authority to develop a holistic regulatory approach to cryptocurrencies harmonized with the direction of federal regulations and guidance, creates consumer protection and strengthens California’s status as the premier global location for responsible crypto asset companies to start and grow.
- Engage in and encourage regulatory clarity via progress in the processes outlined in the federal executive order, with government agencies coordinating closely with Washington, DC Office of the California Governor.
- Explore opportunities to deploy blockchain technologies to meet public services and new needsworks with the private sector, academia and society to present pilots with innovative policies, programs and solutions that demonstrate and demonstrate the potential of using blockchain technologies to respond to specific challenges identified by government agencies.
- Identify opportunities to create a research and work environment to drive innovation in blockchain technology, including cryptocurrencies. The goals will be to expose students to new opportunities, the power of emerging industries, and help ensure that economic benefits are perceived fairly.
A copy of the decision can be found here.
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