California Governor Issues Blockchain Executive Order Building on US President's Regulatory Efforts

California Governor Gavin Newsom signed an executive order aimed at coordinating the blockchain regulatory framework between the federal government and U.S. state governments and encouraging innovation in the field.

In a statement Wednesday, the California governor's office said Executive Order N-9-22 and the California Consumer Financial Protection Act will allow the state to create a transparent and consistent business environment for "companies" in the Web3 and encryption space, including district Blockchain and financial technology companies. Under the order, the California government will need to establish an approach to regulating crypto assets that is in sync with that set forth in an executive order on digital assets signed by U.S. President Joe Biden in March.

Specifically, pursuant to the order, the California Governor's Office of Business and Economic Development will receive input from stakeholders in coordination with the Business, Consumer Services and Housing Agency and the Department of Financial Protection and Innovation (DFPI). Get feedback. The DFPI will create a way for the country to regulate cryptocurrencies as the government-run agency explores use cases for blockchain technology for the public.

"California is a global innovation hub, and we are using this emerging technology to lay the foundation for California's success -- encouraging responsible innovation, protecting consumers, and using this technology to serve the public," the governor said. Governments are often lagging behind Technology advances, so we're ahead of the curve on this, laying the groundwork for consumers and businesses to thrive."

The governor’s priorities for the order are to address regulatory transparency in the digital asset space, including having state agencies coordinate with federal agencies and exploring “opportunities to deploy blockchain technology to address public services and emerging needs.” The DFPI has 30 days to seek public comment on the cryptocurrency regulations, while the state government has 60 days to issue a federal report related to the order, reporting progress to the governor’s office.

The executive order is yet another example of the lack of a consistent regulatory framework for cryptocurrency and blockchain companies operating in the United States. While President Biden's executive order sought to address some of these concerns, state lawmakers also took action, seemingly due to a lack of federal oversight. In February, New Hampshire Governor Chris Sununu issued an executive order creating a committee to study cryptocurrencies. Since 2015, crypto companies operating in New York State have been required to obtain a BitLicense for virtual currency activities.

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