California will be the first state to create a comprehensive regulatory framework to regulate and encourage Web 3 technologies.
Gavin Newsom, governor of the state of California, has signed an executive order that seeks promote innovation in the financial and economic sector, while protecting consumers against the risks of new technologies.
The objective of the new executive order of the Californian governor is create a transparent regulatory framework and an adequate ecosystem for the correct development of Web 3 technologies such as blockchain, cryptocurrencies or crypto asset management companies. At the same time, they aim to evaluate the risks and benefits that this type of technology will have for end users.
The new executive order has been drafted in accordance with the California Financial Consumer Protection Act of 2020. With the signing of this order, the state government will be able to begin working on creating a complete regulatory framework that drives responsible innovation.
In this sense, it must protect consumers, while benefiting the creation of companies and technologies based on blockchain, including among public institutions, as well as the creation of research teams and workforces to promote success of this type. business on the Web 3.
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California as a global center of innovation
Governor Newsom has noted that Laws often lag behind technological advances, which usually harms companies and entrepreneurs, who are forced to fight against regulators.
“California is a hub of innovation, and we are preparing the state for new emerging technologies to be successfully implemented. “We want to drive innovation, protect users, and harness these technologies for the public good,” said Governor Newsom.
The California governor's executive order will focus on seven priorities:
- Create a transparent and consistent business environment for companies that operate on blockchain.
- To receive feedback from a wide range of stakeholders, create a harmonized regulatory approach to cryptoassets between federal and state authorities.
- Collect information and opinions from a wide range of stakeholders interested in applications and investment in the sector.
- Create a public process for develop a comprehensive regulatory approach to cryptoassets that is harmonized with the direction of federal regulations.
- Promote transparency and clarity in federal and state regulations, collaborating with different state agencies.
- Explore opportunities to implement blockchain technology to improve public services and respond to emerging needs.
- Identify opportunities to create a workforce and research that drives innovation in blockchain, including crypto assets.
