Competition for US crypto capital grows as California announces a new executive order regulating crypto

The state famed for its technological prowess and the massive economy is embracing digital assets and the need to govern them.

Governor Gavin Newsom signed an executive order on regulatory rules for the digital asset business on Wednesday, according to a statement from Newsom’s office. The measure aims to safeguard investors while also stimulating innovation.

With California’s reputation as an innovation capital, Gov. Gavin Newsom stated, “we’re putting the state up to succeed with this new technology—spurring responsible innovation; safeguarding consumers; and using this technology for the public benefit.” Governments frequently fall behind technology advances, so we’re setting the groundwork now so that consumers and businesses can prosper in this digital age.”

Newsom said the executive order is a continuation of President Biden’s recent efforts to establish regulatory clarity to the burgeoning asset class, which he expects will place California ahead of the curve in terms of coming federal legislation.

In the wake of Mayors Bill de Blasio of New York City and Andrew Cuomo of Miami moving to implement crypto-friendly policies, Newsom has decided to take a stand.

At Blockworks 2018, Stellar Development Foundation CEO Denelle Dixon hailed the state of California’s embrace of blockchain regulation as a “major success” for job development.

Dixon described the governor’s announcement as a step toward a Web3 future. Officials in California are required under the executive order to seek input from industry participants and the general public. Additionally, lawmakers plan to look into the possibilities of using blockchain technology in order to meet public and policy demands.

Proof-of-work mining, such as bitcoin mining, is now under consideration in New York. While the governor of Colorado is pushing for cryptocurrency tax payments, Illinois legislators have submitted legislation allowing the state’s revenue department to accept crypto payments.

Ron Hammond, government relations director for the Blockchain Association, stated that crypto policy “trickles up from the states” like many other issues in American politics these days. When it comes to state-level conflicts, “we see a lot of confrontations that actually flow up to [federal level].”

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