CA Blockchain Technology And Cryptocurrency EO

CA Blockchain Technology And Cryptocurrency EO

CA Blockchain Technology And Cryptocurrency EO

California is embracing blockchain technology and cryptocurrency in a big way, affecting employees and employers alike

The governor pushed through an executive order (EO N-9-22), effective May 4th, 2022, which supports crypto and blockchain tech in many sectors. In a nutshell, this EO aims to protect consumers, attempts to regulate web 3 tech and cryptocurrency, put the technology into state operations (in collaboration with the private sector, academia, and the communities it affects), support research and development, create jobs, get feedback from businesses and stakeholders in those businesses, and include blockchain and crypto education in state schools.

The legislation mandates the acceptance, support and regulation of blockchain technologies and currencies, and through partnerships amongst agencies, businesses and universities. If your business deals with crypto asset-related financial products and services in California, you probably already have seen smart contracts and blockchain tech for record keeping since 2018. 

Where else in the US might this apply?

Only California and New Jersey for now but other states are expected to follow the federal legislation. The CA EO and New Jersey’s two new laws all mirror and support the President’s March 9th executive order called “Ensuring Responsible Development of Digital Assets.” 

What does this mean for me?

CA Employeesthis order mandates more protection and security for not only employees but also consumers. It also aims to grow jobs and make sure Web 3 tech is being used responsibly.

CA Employersboth state and federal rules will now be enforced, which may make for more compliance requirements for employers. While some are concerned if these regulations could stifle innovation, this is a way for the state to be in alignment with the fed, which should make for more clear and consistent rules for employers to follow.

What’s my next step as a business owner?

-Get involved. If you’re a player in these industries, you should take all opportunities to share your opinions and experiences in this evolving process.

-Companies can speak up  and advocate for their positions by actively engaging in rulemaking. 

Startup Tandem, Inc. recommends submitting comments to the California Department of Financial Protection and Innovation in response to the Invitation for Comments no later than August 5, 2022.

-Toll-free: (866) 275-2677 or (916) 327-7585 

-Email: Ask.DFPI@dfpi.ca.gov

Other resources:

California Business, Consumer Services and Housing Agency (BCSH)

The Department of Financial Protection and Innovation (DFPI)

California Governor’s Office of Business and Economic Development (GO-Biz)

Sources:

5.4.22 Blockchain Executive Order N-9-22, Signed https://www.gov.ca.gov/wp-content/uploads/2022/05/5.4.22-Blockchain-EO-N-9-22-signed.pdf

Governor Newsom Signs Blockchain Executive Order to Spur Responsible Web3 Innovation, Grow Jobs, and Protect Consumers

Published: May 04, 2022

California Continues the March Toward Blockchain with Sweeping Executive Order. By Phillip C. Bauknight and Benjamin M. Ebbink © Fisher Phillips

May 13, 2022. https://www.shrm.org/resourcesandtools/legal-and-compliance/state-and-local-updates/pages/california-blockchain-executive-order.aspx?linktext=California-Continues-the-March-Toward-Blockchain-with-Sweeping-Executive-Order&linktext=State-Continues-the-March-Toward-Blockchain-with-Sweeping-Executive-Order&mktoid=127404877&utm_source=marketo&utm_medium=email&utm_campaign=editorial~California%20HR~NL_2022-06-14_California-HR&mkt_tok=ODIzLVRXUy05ODQAAAGFBEhprhXAXYCaBKLKyVXg8-ELmxofinkgqsop0xi2RMsVwjtUYRf7U40P-v_on1m2IIi5aI_oINvGTJVM05PSEkWbxvFJheod_Zl4VISBP6Nf-Uo

A.B. 2371, 2022-2023 Sess. (N.J. 2022); A.B. 1975, 2022-2023 Sess. (N.J. 2022).