California Gov. Gavin Newsom signed an executive order Wednesday to spur the "responsible" development of blockchain technology.
The order marks the beginning of the state's regulation of the cryptocurrency sector, as well as its effort to explore how to use the technology in the public sphere. The order calls for the state to create research and workforce development institutions that would help prepare California residents for careers in the industry.
"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," Newsom said in a news release. "Too often government lags behind technological advancements, so we're getting ahead of the curve on this."
Newsom's order outlines several priorities for the state to pursue, including creating transparent and environmentally-friendly regulations for cryptocurency companies, incorporating blockchain technology into state operations, coordinating regulation with federal agencies and exposing California students to opportunities within the industry.
The governor's directive puts California in a position to lead the world in blockchain innovation, said Chris Lehane, chief strategy officer at Haun Ventures, a venture firm founded earlier this year by former Andreessen Horowitz investor Katie Haun. The governor understands that California benefited, in terms of jobs and economic growth, from the first two phases of the the commercial Internet, thanks to factors such as its geography, historically creative culture and its world-class universities, Lehane, a former press representative for other Democratic politicians, said on Twitter.
The United States' share of developer activity on "Web3" — the all-encompassing term given to the next generation of the Internet, which includes blockchain technology — is slipping, Lehane said, citing a recent report from Electric Capital, a venture firm based in Palo Alto. To remain at the center of the global economy and gain jobs from it in the future, Newsom "gets that (California) needs to lead, now," Lehane said.
