California governor Gavin Newsom is taking a page right out of Joe Biden’s playbook and demanding that agencies in the Golden State examine crypto and the potential risks and benefits it presents to users.
California Is Taking Crypto to the Next Level
California has stated it is open to crypto and wants to be part of the growing trend that will potentially take the financial space to new heights. Newsom has now signed an executive order asking that regulators in California examine cryptocurrency thoroughly and see where the risks are and where the potential growth factors lie. The idea is to appropriately adopt crypto usage throughout the state but not without having the proper safety measures in place.
The move comes after Joe Biden issued a similar executive order just a few months ago. The order called for agencies throughout the U.S. to look at cryptocurrency’s risks and benefits. It also opened the door for a digital version of USD.
Dee Dee Myers – senior advisor to Newsom and director of the Governor’s Office of Business and Economic Development – explained in an interview:
So, there are a lot of opportunities. There’s also a lot of unknowns in the industry, and so that’s another reason we want to engage early.
Democrat governor Newsom added to this by releasing the following statement:
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.
At the time of writing, California has one of the largest economies not just in the country, but in the world. The state houses close to 40 million residents and its economy is measured to be more than $3 trillion, larger than nations like India and the United Kingdom.
Hilary Allen – a financial regulation professor at American University in Washington, D.C. – is a crypto skeptic that has expressed positive thoughts regarding California stepping forward to implement proper regulation. She commented that the maneuver is likely to further legitimize the crypto space and help to make it mainstream.
However, she still doesn’t think the approach is what’s best for California or its residents, claiming that the technology behind crypto is both “very complex” and “inefficient.” She commented:
While this approach will create more of a market for crypto… it is unlikely to produce the best outcomes for users of public services in California.
While California is potentially the first state to work towards implementing statewide regulation for crypto, it is not the first to introduce a comprehensive digital currency plan. States like Ohio and Colorado, for example, have tried to push crypto use primarily for government purposes.
Getting to Know the Space Early
Amy Tong – secretary of California’s Government Operations Agency – said:
It is critical that we engage early with the industry and start learning the pros and cons of innovative technology.