California Governor Announces Legal Framework for Crypto Adoption

The governor of California has issued an executive order laying out the state’s roadmap for crypto adoption.

With this order, the United States’ largest economy will begin drafting a regulatory framework that covers all aspects of digital assets usage. This is said to be the first of its kind by a U.S. state.

While other states have regulations for the crypto sector, California’s proposed framework is much more comprehensive.

Governor Gavin Newsom aims to bring about legislation that promotes the development of the crypto sector while also protecting the interests of investors. The state will also be exploring ways in which this nascent technology can be utilized in various state establishments.

“We can use it to protect people’s identity and provide benefits to people through government services,” said Dee Dee Myers, director of the Governor’s Office of Business and Economic Development.

California to consult businesses on proposals

The order by Gov. Newsom will be executed by California’s Office of Business and Economic Development, in partnership with the Consumer Services and Housing Agency and the Department of Financial Protection and Innovation, while also consulting various California businesses.

California is home to many prominent tech firms including major crypto and blockchain companies. These include Coinbase, Binance.US, the U.S. branch of the world’s largest crypto firm, Robinhood, and ConsenSys.

This statement by the government shows a massive embrace of and support for the industry, as the state intends to retain these businesses while also being an attractive location for new crypto start-ups.

According to TripleA, a crypto data and exchange company, the United States is among the countries with a high rate of crypto adoption. Currently, 8.3% of the nation’s population are crypto investors, accounting for over 27 million citizens.

In March, U.S. President Joe Biden tasked the Treasury, State, and Justice Departments with providing a thorough review of cryptocurrency and other digital assets, with a view to drafting federal policies to oversee the country’s booming crypto economy.