On May 4, California became the first state to create a transparent regulatory and business environment for Web3 companies, after Governor Gavin Newsom signed an executive order. The order will foster harmony between federal and state approaches to Web3 which is a growing industry with a $3 trillion market cap in November 2021. It continues to expand at an accelerated rate.
According to a published article from the Office of Governor Newsom, the executive order mentions that the Golden State has the following seven priorities:
To create a transparent and consistent business environment for companies who operate in blockchain.
To collect feedback from a large number of stakeholders, to create a regulatory approach.
To collect feedback from different stakeholders for potential blockchain applications as well as ventures
To engage in public process and to exercise statutory authority and develop a comprehensive regulatory approach.
To encourage as well as engage in regulatory clarity.
To explore opportunities where blockchain technologies can be used to address public-serving as well as emerging needs.
To identify opportunities that can create a research as well as a workforce environment.
Governor Gavin Newsom called the Golden State a “hub of innovation.” He said that his government would use the emerging technology to set up the state for success. He also said that this technology would be leveraged for the public good as well as to spur responsible innovation and protect consumers.
He added that governments often lagged behind technological advancements. So, his government would get “ahead of the curve” on this technology. He noted that they would lay a foundation that would let both consumers and businesses thrive.
President Biden has been acting to bring regulatory clarity to such emerging products and services. The executive order from California would move the state forward on a path that would be in harmony with federal rules and guidelines and would also bring regulatory clarity for businesses, while protecting consumers.