Democratic Gov. Gavin Newsom (D) signed an executive order Wednesday that aims to set up a regulatory framework for the cryptocurrency industry.

The statement says California is the first state “to begin creating a comprehensive and harmonized framework for responsible web3 technology to thrive.”

“California is a global hub of innovation, and 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,” said Newsom. 

States including New York and Wyoming have passed narrowly laws addressing parts of the crypto industry, noted The Wall Street Journal.

In March, President Biden signed an executive order telling multiple federal departments to review the cryptocurrency industry with an eye toward federal actions.

“Without oversight, the explosive growth in cryptocurrency use with those risks to Americans and to the stability of our businesses, our financial system and our national security,” one senior administration official said at the time.

The federal review is expected to take three to six months, while Newsom asked state agencies to report back within 60 days.

Crypto assets and blockchain technology have becoming a thriving industry, reaching more than a $3 trillion market cap as of last November.

Newsom said the new order would position California, home to Silicon Valley, at the fore of the transformative sector.

“Too often 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,” he said.