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California Governor Newsom issues crypto executive order

The order aims to get ahead of the curve when it comes to cryptocurrency technology, and also to establish clear and enforceable guidelines.

Morgan Shaver

May 4, 2022 11:50 AM

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As the topic of cryptocurrency continues to create a buzz, more politicians are taking notice including the governor of California, Gavin Newsom. As reported by CNBC, Governor Newsom has issued an executive order regarding cryptocurrencies.

With this executive order, Newsom aims to create a roadmap for cryptocurrency regulations and consumer protections, in addition to assessing how California can further take advantage of blockchain technologies.

Elaborating on this further in the announcement from the Office of Governor Gavin Newsom:

The executive order aligns with a proposal from the Biden administration back in March which called on the government to examine the risks and benefits of cryptocurrencies.

Lending additional clarity on the new executive order, Gavin Newsom’s senior advisor Dee Dee Myers also pointed out, as reported by CNBC:

Myers also stated that it’s critical to put “guardrails” in place, and to ensure there are “enforceable and clear guidelines to protect everybody.” For Governor Newsom, the executive order is not only about protection, but also about “getting ahead of the curve” when it comes to cryptocurrency technology.

Governor Newsom’s executive order will begin to do this by reflecting “consultation with relevant state agencies regarding the forthcoming federal reports on the relationship of crypto assets to priorities in energy, climate, and preventing criminal activity.”

Among these state agencies, Newsom is directing the Governor’s Office of Business and Economic Development in collaboration with the state’s Business, Consumer Services and Housing Agency, along with the Department of Financial Protection and Innovation (DFPI).

In the announcement as well are seven listed priorities that summarize the goals of the executive order, which include:

1. Create a transparent and consistent business environment for companies operating in blockchain, including crypto assets and related financial technologies, that harmonizes federal and California laws, balances the benefits and risks to consumers, and incorporates California values such as equity, inclusivity, and environmental protection.
2. Collect feedback from a broad range of stakeholders, create a regulatory approach to crypto assets harmonized between federal and state authorities, explore and establish public-serving use cases (such as incorporating blockchain technologies into state operations), and build research and workforce pipelines.
3. Collect feedback from a broad range of stakeholders for potential blockchain applications and ventures, with particular attention to crypto assets and related financial technologies. Engagement should include technical experts, stakeholders interested in addressing inequities and environmental impact, companies both based in and outside California, and more.
4. Engage in a public process and exercise statutory authority to develop a comprehensive regulatory approach to crypto assets harmonized with the direction of federal regulations and guidance, creating consumer protections and solidifying California’s status as the premiere global location for responsible crypto asset companies to start and grow.
5. Engage in and encourage regulatory clarity via progress on the processes outlined in the federal executive order, with state agencies coordinating closely with the Washington, D.C. Office of the California Governor.
6. Explore opportunities to deploy blockchain technologies to address public-serving and emerging needs, working with the private sector, academia, and community to present pilots for innovative policies, programs, and solutions that demonstrate and showcase the potential of adopting blockchain technologies to respond to specific challenges identified by state agencies.
7. Identify opportunities to create a research and workforce environment to power innovation in blockchain technology, including crypto assets. The goals will be to expose students to emerging opportunities, power emerging industries, and help ensure economic benefits are experienced equitably.

Overall, it’s interesting to see Governor Newsom looking at and addressing the topic of cryptocurrency. It’ll be interesting to see how his endeavors further the use of cryptocurrency and blockchain technology in the state, and what the response will be like from state residents.

After reading about the executive order, we’re curious to hear your thoughts on the matter. Let us know in Chatty, and for more cryptocurrency news, be sure to catch up with our story on how Square Enix says the $300 million Embracer deal lets it proceed with blockchain investments.

Morgan Shaver

Senior Editor

Morgan is a writer from the frozen wastelands of Maine who enjoys metal music, kpop, horror, and indie games. They're also a Tetris fanatic who's fiercely competitive in games like Tetris 99... and all games in general. But mostly Tetris. You can follow Morgan on Twitter @Author_MShaver.