By
Mayowa Adebajo
April 18th, 2024
California governor issued an executive order on crypto and blockchain to create a favorable environment for businesses and firms operating in this sector.
On Wednesday, May 4, California Gov. Gavin Newsom issued a new executive order on crypto. This is a big step considering California hosts a number of businesses operating in the crypto space.
Ripple co-founder Chris Larsen was quick to react to the development praising the California governor. In his two consecutive tweets, Larsen wrote:
“Proud of my home state and @CAgovernor for taking an important step today to ensure the US remains a place where blockchain and crypto can continue to thrive. With programs to enhance education, promote financial inclusion and sustainability, and – most importantly – provide regulatory clarity through a consistent framework, CA will be a global hub for crypto talent and innovation.”
For a long time, Ripple executives have been asking for clear regulatory measures in the country. Well, this development will also pave way for Ripple and many others in the U.S. to work under clear regulatory environments.
California’s Crypto Executive Order
The cryptocurrency executive order in California seeks to create a favorable environment for businesses operating in the crypto space. Besides, it also lays a roadmap for regulatory and consumer protections. It further talks about how the state can take advantage of the emerging blockchain technology. Speaking to CNBC, Dee Dee Myers, senior advisor to Newsom said:
“Of the 800 blockchain businesses in North America, about a quarter of them are in California, dramatically more than any other state. We’ve heard from so many that they want to be here, and we want to help them do that responsibly.”
California’s business and economic development office will also work along with other lawmaking agencies on the matter. The executive order will thus create a transparent and consistent business environment for firms operating in crypto, blockchain, and financial technologies.
Myers further said that the order “balances the benefits and risks to consumers, and incorporates California values, such as equity, inclusivity, and environmental protection”. He added that there will be several consultation sessions among industry leaders, critics, and consumer advocates. Myers noted:
“The opportunities are almost endless. We can do things like remove middlemen from transactions involving real estate or even automobiles. We can use it to protect people’s identity and provide benefits to people through government services. If we’re selling carbon offsets, we can make sure the same forest isn’t being sold twice and that there’s some record that’s transparent.
Lastly, he added that California will take all necessary measures to eliminate bad actors from the market. Thus, they will “make sure there are enforceable and clear guidelines to protect everybody”.