Like the 1960s automobile emission guidelines, California is ready to moderate the Web3 and crypto community. The state has expressed willingness to reform a set of regulations regarding crypto for the rest of the USA.
Dee Dee Myers, a state official, talked about the development in a recent interview. The announcement was natural, as Governor Gavin Newsom proposed the state crypto licensing bill in September.
This vetoed bill allows the administration to create customized regulations for digital assets. It also states that every digital asset firm in California must apply for an official license to continue its operations.
According to Dee Dee Myers, the bill has only created a regulatory framework in a narrow lane. That is why the administration is trying to collaborate with the California government agencies to work things out.
The Newsom administration is basing the new regulatory functions on the executive order issued by the governor earlier this year. The objective of the order is to offer more flexibility and clarity to the crypto market. At the same time, it aims to retain consumer protections in the Assembly bill.
With the recently vetoed bull, the growing crypto industry has been under immense pressure. While the domain continues to expand, it cannot be accomplished by breaking local guidelines and regulations. Establishing clear rules is a wise decision, especially in the long run.
The crypto market is not estranged from malicious activities, so a regulatory framework can help the industry function more safely. Names like Ethereum have already started to shift towards a sustainable approach, as shown by its latest Merge, switching from PoW to PoS mechanism.
The move was timely since the Biden administration recently raised concerns about the energy consumption of the PoW mining system.California Planning to Model Crypto Policies for the Rest of the US