As smart as human beings are known to be, they cannot navigate through every problem on their own. The stated reality has proved itself time and time again throughout our history, therefore forcing us to construct a sustainable response. Our response would come in the form of dedicated regulatory bodies. Designed to supervise each and every area within the human spectrum, these bodies were quick to leave a significant impact on our lives. Nevertheless, despite getting off to such a strong start, they soon saw their authority diminish, and it happened purely on the back of technology’s arrival. You see, technology’s expansive nature created a safety blanket for many rule-breakers. This, in turn, led to a reality which was much worse than what we ever had before. Fortunately enough, the regulatory bodies didn’t take it lying down. After some struggling, they turned the equation on its head and made an ally out of technology. The same intention was pretty evident in a recently-signed executive order.
California Governor, Gavin Newsom has formally signed an executive order, which is focused on preparing the state for better cryptocurrency regulation. According to certain reports, the order encourages California Governor’s Office of Business and Economic Development (GO-Biz) to collaborate with the state’s Department of Financial Protection and Innovation (DFPI) and Business, Consumer Services and Housing Agency (BCSH), in regards to envisioning a holistic regulatory framework. The state wants to achieve it by developing “potential blockchain applications and ventures,” which could include applications in the “private sector, academia, and community.” Furthermore, it asks DFPI, in particular, to produce education materials that inform the residents about risks, as well as benefits of various cryptocurrencies. These materials are required to have an explicit lowdown how one can avoid frauds and scams. The executive order also emphasizes a need to develop well-refined consumer protections.
As indicated in the official order, the goal is to “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.”
Unsurprisingly, the move aligns with what Biden Administration started through a proposal in March. If we talk about the next steps, the relevant agencies are now expected to investigate and present the Governor with their findings and recommendations. These recommendations will then a play big role in the creation of crypto-related regulations that are likely to arrive at some point.
So far, the industry’s response has been wholly welcoming. The Chamber of Digital Commerce, an advocacy group for blockchain technologies, even went to comment that the order “rightly recognizes the role blockchain technologies play in spurring job growth and economic competitiveness for the state, but also the national economy.”
