The governor of California signed an executive order to drive innovation for bitcoin and other cryptocurrency-based businesses with transparent regulation.
California Governor Gavin Newsom today signed an executive order creating a regulatory framework for companies operating in bitcoin and other cryptocurrencies.
The EO combines a multitude of established regulatory agencies to define regulatory practices through a public process based on stakeholder feedback.
The order also initiates the creation of a career path and educational opportunities for those looking to enter the cryptocurrency space.California Governor Gavin Newsom today signed an executive order (EO) creating the legal framework for companies working in bitcoin and other cryptocurrencies, according to a press release from the governor’s office.
The EO states that one of its top priorities is “GovOps will explore opportunities to implement blockchain technologies to meet emerging and public service needs.”
If the state is looking to determine whether a company is a good fit for a particular vendor’s needs, the state will look at each company’s specific use cases and determine whether or not to accept vendors based on factors such as environmental impact and relevance.
Members of the Governor’s Council for Postsecondary Education are expected to create a research and work environment to strengthen cryptocurrency innovation designed to expose students to new opportunities in the space. The aim is to develop a pathway for the workforce and generate pathways for continuing education “to ensure a flow of talent”.
The EO sets several state priorities in creating this regulatory framework, but one in particular is creating a consistent and transparent business environment for any company operating in bitcoin or the broader cryptocurrency ecosystem.
The order signifies the creation of a stakeholder feedback system run by the Governor’s Office of Economic and Business Development (GO-Biz) and the Agency for Business, Consumer Services and Housing (BCSH) and the Department of Financial Protection and Innovation. (DFPI). The purpose of this coalition is to harmonize state and federal authorities for regulatory action.
These regulatory agencies will work together gathering feedback on how to properly operate in the space, gathering data from a wide range of stakeholders, including companies inside and outside California, lower economic communities unaffected by technological growth, experts, venture capital firms and many others. .
DFPI is ready to engage in a public development process towards comprehensive regulation under the direction of federal guidelines. The DFPI is expected to solicit public comment on regulation under the California Consumer Financial Protection Act (CCFPL), while making a voluntary request from companies already working in the space about their financial products. The Governor seeks open and transparent regulatory practices that lead to innovative practices that promote a healthy economy.
“California is a global hub of innovation and we are setting the state up for success with this emerging technology by spurring responsible innovation, protecting consumers and leveraging this technology for the public good,” said Governor Newsom.