Global Crypto Market

California Continues the March Toward Blockchain with Sweeping Executive Order – SHRM



Apply for the SHRM-CP or SHRM-SCP exam today! Applicants now have the option to test from home.
Find the latest news and insights on how employers are responding to potential changes to state and federal abortion laws, as well as members-only resources for supporting your employees.
Members can get help with HR questions via phone, chat or email.

To grow, evolve and inspire we must engage in continuous learning.
Virtual & New Orleans, LA | June 12-15, 2022. There’s no cause we can’t effect when we come together as one HR.

Members may download one copy of our sample forms and templates for your personal use within your organization. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRM’s permission. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item.
​California just took a huge leap forward in its innovation efforts when Gov. Gavin Newsom issued an executive order establishing it as the first state in the nation to begin creating a "comprehensive and harmonized" framework for blockchain technology, including cryptocurrency, to thrive. This May 4 order follows recent legislative proposals seeking to further adopt the use of blockchain technology in state government and is yet another example of how California is on the cutting edge when it comes to this nascent technology. But what does this order mean for employers today—and tomorrow?
Executive Order N-9-22
According to the executive order, the goal is to "create a transparent and consistent business environment for companies operating in blockchain, including crypto assets and related financial technologies, that harmonizes federal and California laws, balances the benefits and risks to consumers, and incorporates California values, such as equity, inclusivity and environmental protection."
Those are pretty lofty goals. But what exactly does the executive order do?
It largely parallels the recent Executive Order signed by President Joe Biden on March 9 focused on "Ensuring Responsible Development of Digital Assets."
In addition, it calls on a number of state agencies—including the Governor’s Office of Business and Economic Development ("GO-Biz"), the Business, Consumer Service and Housing Agency, and the Department of Financial Protection and Innovation—to collect input and stakeholders, begin the process of creating a regulatory approach to crypto assets, and explore incorporating blockchain technologies into state operations.
In a press release accompanying the Executive Order, Governor Newsom articulated seven broad priorities:
What This Means for Employers
This sweeping executive order further illustrates the ongoing mainstreaming of blockchain technology. Overall, this could be a real benefit to businesses and employers in California if the state can harmonize state and federal regulation of this growing area—especially with respect to cryptocurrency or crypto assets. Having one comprehensive set of federal and state rules by which to operate could make businesses feel more comfortable with incorporating blockchain technology into their operations.
In addition, California state agencies adopting the use of blockchain technology and "leading by example" could be a powerful incentive for businesses and employers with operations in California to get on board with this emerging trend.
On the other hand, it remains to be seen what a "comprehensive regulatory approach" will entail. There is a delicate balance between obtaining regulatory certainty and clarity on the one hand and stifling innovation on the other. The involvement of consumer protection agencies in this effort signals that California will be looking to expand the use of blockchain technology while also protecting consumers, including employees. That’s not necessarily a bad thing. However, the question will be whether such consumer protections are proportionate or stifle innovation and growth.
Phillip C. Bauknight is an attorney with Fisher Phillips in Murray Hill, N.J. Benjamin M. Ebbink is an attorney with Fisher Phillips in Sacramento, Calif. © 2022 Fisher Phillips. All rights reserved. Reposted with permission. 
Members may download one copy of our sample forms and templates for your personal use within your organization. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRM’s permission. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Delete canceled
Please log in as a SHRM member before saving bookmarks.
Your session has expired. Please log in as a SHRM member.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred

Survey Reveals Happy Workers Aren’t Always Loyal
Successfully interpret and apply California employment law to your organization’s people practices.


 
 

source


Leave a Comment

Your email address will not be published.