California Governor Gavin Newsom issued an executive order on Wednesday aimed at promoting the growth of the cryptocurrency industry in the state.
The order, the state said, makes California the first in the nation to begin creating a comprehensive framework for the well-known and sometimes controversial industry. Other states, notably New York and Wyoming, have created laws that address at least some aspects of the cryptocurrency market.
Governor Newsom’s order did not go into specifics, but said it would create a regulatory framework for the industry that would foster innovation and protect consumers, looking at ways to implement it. technology within government and public institutions, and building research and workforce development infrastructure.
“California is a global hub of innovation, and we are setting the state up to succeed with this emerging technology,” Governor Newsom said in a statement.
Industry groups praised Governor Newsom’s initiative. “The California Executive Order properly recognizes the role blockchain technology plays in driving job growth and competitiveness,” said Perianne Boring, founder and chief executive officer of the Digital Chamber of Commerce. economy for the state.
Kristin Smith, executive director of the Blockchain Association, said the business group welcomes common sense and looks forward to working with governments to create them.
The Order also acknowledges the need for a California approach that aligns with the evolving federal approach. March, President Biden issues executive order directs several federal agencies to conduct an extensive review of cryptocurrencies.
Federal agencies are expected to have three to six months to prepare a public report with recommendations. Governor Newsom’s order gives state agencies 60 days after the federal report is released to prepare their own report.
While the crypto industry is global, Silicon Valley has been its main hub since its early days. Many of the largest companies in the field, including
, starting in the area. The state established a blockchain working group in 2018 to begin addressing issues surrounding the industry.
In the past year, other parts of the country, like Wyoming, has sought to attract crypto businesses to their jurisdictions. Especially, cities and mayors of Miami and New Yorksought to attract industry players, mainly because the industry itself was attracting money and jobs.
Cryptocurrency Industry Still a Hotspot for Venture Capital, even as capital markets are tense and cryptocurrency prices themselves plummet. According to CB Insights, startups in this industry raised $9.2 billion through 461 equity deals globally in the first quarter. At the same time, total venture capital investment fell 19% during the quarter.
The desire to keep as much of that activity as possible in California appears to be a focus of the executive order. It outlines a number of specific goals, the first being to create a “transparent and consistent” environment for crypto and blockchain companies.
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