Governor Gavin Newsom of California signed an executive order (EO) today creating the legal framework for companies working within bitcoin and other cryptocurrencies, per a press release from the governor’s office.
The EO states one of its main priorities is “GovOps shall explore opportunities to deploy blockchain technologies to address public-serving and emerging needs.”
Should the state seek to determine if a company is an applicable fit for a particular vendor need, the state will review particular use-cases of each company and determine whether or not it will 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 innovation in cryptocurrency designed for exposing students to new opportunities in the space. The goal is to develop a workforce pathway and generate paths for continued education “to ensure a pipeline of talent.”
The EO states multiple priorities of the state in creating this regulatory framework, but one in particular is the creation of a consistent and transparent business environment for any companies operating with the bitcoin or broader cryptocurrency ecosystem.
The order means to create a feedback system of stakeholders led by the Governor’s Office of Business and Economic Development (GO-Biz) and Business, Consumer Services and Housing Agency (BCSH) and the Department of Financial Protection and Innovation (DFPI).The goal 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 by collecting data from a vast array of stakeholders including companies in and outside of California, lower economic communities unaffected by technological growth, experts, venture capital firms, and many others.
The DFPI is set to engage in a public development process for comprehensive regulation at the direction of federal guidelines. The DFPI is expected to solicit public commentary regarding regulation under the California Consumer Financial Protection Law (CCFPL) while performing a voluntary solicitation of companies already working within the space about their financial products. The governor seeks open and transparent regulatory practices that will lead to innovative practices fostering a healthy economy.
“California is a global hub of innovation, and we’re setting up the state for success with this emerging technology – spurring responsible innovation, protecting consumers, and leveraging this technology for the public good,” said Governor Newsom.