On May 4, 2022, California Governor Gavin Newsom signed Executive Order N-9-22 to create a coordinated state regulatory approach for cryptocurrency and blockchain, with the further aim of harmonizing the state’s laws with those (potentially) enacted at a federal level. Another goal of the Order is to determine the usage of blockchain technology for state and public institutions. Through the Order, California is aiming to continue its innovation leadership by developing new and clear rules in support of the further development of emerging cryptocurrency and related blockchain technologies.
From the accompanying press release:
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,” said Governor Newsom. “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.
The Order states that “responsible innovation has been encumbered by regulatory uncertainty, especially with regard to federal law.” Ambitiously, it adds: “State agencies should work with, and concurrently to, the federal government to make California the first state to establish a comprehensive, thoughtful, and harmonized regulatory and business environment for crypto assets.”
The press release issued with the Order outlined seven priorities:
- Create a transparent and consistent business environment for companies operating in blockchain, including crypto assets and related financial technologies, that harmonizes federal and California laws, balances the benefits and risks to consumers, and incorporates California values such as equity, inclusivity, and environmental protection.
- Collect feedback from a broad range of stakeholders, create a regulatory approach to crypto assets harmonized between…
