Governor of California signs executive order to shape the state’s cryptocurrency regulations

On Wednesday, California Governor Gavin Newsom signed an executive order laying the groundwork for the state’s cryptocurrency industry to be bolstered and regulated.

Newsom’s goal is to “create a transparent and consistent business environment for companies operating in blockchain,” which balances “the benefits and risks to consumers,” according to the executive order.

The executive order directs the California Governor’s Office of Business and Economic Development (GO-Biz) to work with the state’s Department of Financial Protection and Innovation (DFPI) and the Business, Consumer Services, and Housing Agency to improve the state’s business climate (BCSH).

The state agencies have been given the task of developing “potential blockchain applications and ventures,” which could include applications in the “private sector, academia, and community.”

It also directs the DFPI to develop a regulatory approach to cryptocurrency, establish consumer protections, and create educational materials that inform California residents about the risks and benefits of cryptocurrencies.

The materials will “include information about how to avoid scams and frauds,” according to the order, which is one of the major concerns about cryptocurrency.

“Too often, government lags behind technological advancements,” Newsom said in a statement. “We’re getting ahead of the curve on this, laying the foundation to allow consumers and businesses to thrive.”