California to Create a Regulatory Framework for Blockchain Businesses

The Governor of California has signed an executive order that prioritizes the creation of a legal framework for businesses engaging in Bitcoin and cryptocurrencies.

Regulatory Framework to Fast-Track Blockchain Adoption

As per a recent press release, the executive order allows blockchain integration to enhance public service dispensation while creating the much-needed regulatory clarity for businesses.

The move follows President Joe Biden’s administration calling for clarity for a growing industry leveraging emerging technologies like blockchain.

Blockchain-reliant sectors such as cryptocurrencies have evolved to command trillions in market capitalization, dense with exciting and revolutionary products and services in finance, asset tokenization, gaming, and more. However, as it blossoms, there are hindrances as regulators and policymakers have failed to catch up with the rapid pace of crypto innovation.

Governor Gavin Newsom subsequently qualifies California as the first state in the U.S. to create a comprehensive and harmonized framework for blockchain and Distributed Ledger Technologies (DLT) to thrive.

Commenting, Gavin said:

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. Too often, government lags behind technological advancements, so we’re getting ahead of the curve on this, laying the foundation to allow for consumers and business to thrive.

California Is Creating a Win-Win for Crypto Businesses and Consumers

Blockchain advances power diffusion, emphasizing efficiency, cost-cutting, and security. The same technology anchors cryptocurrencies and is forecasted to be one multi-billion industry in years ahead.

The executive order is highly welcomed in the technology world because it opens the door for responsible innovation in the state. Out of this, the government of California hopes to protect consumers better and bolster their innovation economy.

By incorporating blockchain technology, whose digital ledgers are public and accessible, dependent companies will have transparent regulatory and business environments. Notably, this regulatory framework would harmonize federal and state approaches for a win-win situation while also fusing California’s core values of “equity, inclusivity, and environmental protection.”

Earlier on, BlockMagnates reported that the Government of Fort Worth was the first in the U.S. to officially mine cryptocurrencies.