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 directive aims to lay out a path 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 profit greatly from blockchain technologies, which are still mostly uncontrolled and unknown.
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 directive specifies seven major areas of attention, including the construction of a transparent and uniform business environment for blockchain enterprises and the start of public input in the design 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 equality, inclusiveness, and environmental preservation.
“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,” Governor Newsom said 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 hesitant 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.
“Government typically lags behind technical breakthroughs, so we are going ahead of the curve on this, providing the groundwork for consumers and companies to succeed.”