California state governor Gavin Newsom has signed an executive order which is set to create clearer transparency and regulation for Web 3.0 companies.
The state aims to provide an environment for Web 3.0 companies to flourish in finding new and innovative ways to utilise blockchain technology. California will also look to protect consumers under the new order with other aims including building new research and workforce development pathways.
Governor Newsom states: “Too often the 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.”
Dee Myers, a senior advisor to Newsom and director of the Governor’s Office of Business and Economic Development, told AP News: “There’s also a lot of unknowns in the industry and so that’s another reason we want to engage early.”
The executive order comes after a July 2020 report examined the risks and benefits of blockchain technology. The California Blockchain Working Group outlined seven key priorities in its assessment, focusing on regulating crypto assets and related technologies.
Amy Tong, Secretary of California’s Government Operations Agency added: “It is critical that we engage early with industry and start learning the pros and cons of innovative technology early. We can take the next steps towards getting ahead of the curve and harnessing the potential of these tools to make government better.”
The order falls in line with President Joe Biden’s digital asset executive order which was released March 2022.