California, home to crypto powerhouses like Coinbase and Ripple, is taking Web3 more seriously. Gov. Gavin Newsom on Wednesday signed an executive order to “create a transparent regulatory and business environment for Web3 companies.”
The order signals California’s intention to become more deeply involved in the debates over how to regulate the fast-growing crypto industry amid worries about its impact on the financial system.
“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,” Newsom said in a statement.
The Newsom order “builds on” President Biden’s executive order on crypto, which underlined the importance of crypto innovation while stressing the need to protect consumers, investors and businesses, the governor’s press statement said.
The goal is to “create a transparent and consistent business environment for companies operating in blockchain,” the statement said.
Amid increasingly contentious debates in Washington and on the state level over how to regulate crypto, California hopes to “engage in and encourage regulatory clarity via progress on the processes outlined in the federal executive order, with state agencies coordinating closely with the Washington, D.C. Office of the California Governor.”
The Blockchain Association said it welcomed Newsom’s order, tweeting that the “industry is eager to collaborate with government on common sense rules for industry to allow California — and the United States — to lead in crypto innovation.”
Newsom’s order also underlines California’s heightened focus on fintech. The state recently set up a new Office of Financial Technology and Innovation, which is intended as the main state agency for fintech.