As part of the Executive Order, various regulatory agencies are set to define regulatory practices through a public process based upon stakeholder feedback. Furthermore, the order aims to start development of a workforce pathway and provide educational opportunities for those seeking employment in the cryptocurrency sphere.
A press release from the governor’s office states that Governor Gavin Newsom signed an executive order today that creates the legal framework for companies dealing with bitcoin and other cryptocurrencies. One of the Executive Order’s priorities is GovOps should explore how blockchain technologies can be utilized to address emerging public needs.
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.
Gavin Newsom, Governor of California
In order for the state to determine if a company is a good fit for a particular vendor need, it will analyze the functional capabilities of each company and decide whether it will accept vendors based on factors such as environmental impact and relevance.
A study is expected to be conducted by Governor’s Council for Post-secondary Education members in order to strengthen innovation in cryptocurrency and expose students to new opportunities. The goal is to create a “pipeline of talent” by developing a work force pathway and establishing education and training paths.
As part of this regulatory framework, the Executive Order states that the state has multiple priorities, but one in particular is to create a consistent and transparent business environment for bitcoin and cryptocurrency companies. Stakeholders are being brought together by the Governor’s Office of Business and Economic Development (GO-Biz), Business, Consumer Services, and Housing Agency (BCSH), and the Department of Financial Protection and Innovation (DFPI). The purpose of this coalition is to harmonize federal and state regulatory authorities.
In this collaborative effort, the two agencies will collect information from a wide range of stakeholders, including California companies as well as companies from outside the state, lower-income communities that are not affected by technological development, experts, venture capital firms, and thousands of others.
DFPI is to initiate a public development process for comprehensive regulation under the direction of federal guidelines, which is currently undergoing an evaluation process. As part of the DFPI initiative, the DFPI will be seeking public input on the regulator’s proposed California Consumer Financial Protection Law (CCFPL), in addition to taking up a voluntary solicitation of those companies already working within the space regarding financial products they offer. Open and transparent regulatory practices are desired by the governor in order to foster an effective economy.
