[ad_1]
The news that one of the world’s leading online payment companies will allow its 325 million account holders to conduct transactions using cryptocurrencies serves as a high-profile indicator of the growing maturity of cryptocurrency and blockchain technologies, which are rapidly moving towards the mainstream adoption. Recognizing that regulatory clarity is needed and that an appropriate balance must be struck between regulation and innovation to facilitate responsible market adoption, members of Congress recently put forward legislation that will aid the development and adoption of blockchain technologies by companies, consumers and governments. Several major pieces of legislation were put forward in the fall of 2020, offering a preview of Congress efforts to address these issues in 117.th Congress.
The 116th Congress has seen dozens of bills related to blockchain, most of which have failed to make progress. The proposed legislation has focused on the desire of some members of Congress to encourage the daily use of blockchain technologies, protect consumers, ensure data privacy and cybersecurity, and reduce the use of virtual currencies for illicit purposes such as money laundering. of money and criminal financing. While many of these efforts have stalled, in September 2020, the Blockchain Innovation Act (HR 8153) and the Digital Taxonomy Act (HR 2154) were promoted by the House Energy and Commerce Committee and passed by the House of Representatives as part of the consumer safety technology (HR 8128). At the same time, the Chamber passed the American Competitiveness on More Productive Emerging Tech Economy (COMPETE) Act (HR 8132), which incorporated the Advancing Blockchain Act (HR 6938).
Additionally, in September, a bipartisan group of representatives introduced the Digital Commodity Exchange Act of 2020, or DCEA (HR 8373). The bill is designed to bridge the regulatory gaps between the Commodities Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in digital asset markets and provide a national framework for regulating cryptocurrency exchanges. Representatives David Schweikert (R-Ariz.) And Darren Soto (D-Fla.) Also introduced the Blockchain Records and Transactions Act of 2020 (HR 8524). The bill, which falls under the jurisdiction of the Chamber’s Energy and Trade Committee, would make smart contracts created, stored or secured through a blockchain legally binding and help promote wider corporate adoption of blockchain technologies.
The Blockchain Innovation Act focuses on the use of blockchain technology in commerce and instructs the U.S. Department of Commerce to consult with the Federal Trade Commission to conduct a study and report on the state of blockchain technology, including its use to reduce fraud and increasing security. One of the goals of the legislation is to establish a Blockchain Center of Excellence within the Department of Commerce. The Digital Taxonomy Act authorizes FTC funding to prevent unfair or deceptive acts or practices in digital token transactions and requires the FTC to report to Congress on the Commission’s actions related to digital tokens. Notably, although both bills have gained House approval, they still need to be approved by the US Senate. If this is not achieved by the end of 116th Congress, they will have to be reintroduced in 117th Congress and receive funding through appropriation legislation where needed.
The bipartisan American COMPETE Act passed the House of Representatives along with the Consumer Safety Technology Act, and seeks to maintain the competitiveness of the United States in cutting-edge technology vis-à-vis China. The law is made up of eight individual bills, previously introduced, which address technological issues such as 3D printing, the Internet of Things, artificial intelligence and blockchain technology. The blockchain technology section incorporates the Advancing Blockchain Act (HR 6938) introduced earlier. This bill requires the Commerce Department to study and report on the impact of blockchain technology on U.S. businesses and industries that are developing and using blockchains, public-private partnerships promoting blockchains, federal agencies affirming jurisdiction over these industries and the risks and trends of blockchain technology. Upon approval by the House, the American COMPETE Act was referred to the Senate Committee on Commerce, Science and Transportation, where it currently remains.
The end of September also saw the introduction of the DCEA and the reintroduction of the Blockchain Records and Transactions Act of 2020 in the House of Representatives. The DCEA would create a national regulatory framework for the CFTC to regulate digital commodity trading, thereby simplifying the spot market for digital assets and anticipating existing licensing requirements for state money transmitters for digital commodity exchanges. For digital commodity exchanges that choose to participate in the voluntary CFTC regime, this would have the effect of reducing the regulatory burden. The DCEA would also have an impact on how new digital commodities are marketed by clarifying the CFTC and SEC jurisdictional lines and reforming the process for determining whether digital commodities should be made available for public trade.
The introduction of the DCEA served as an indicator, allowing for public review of the proposed framework and an opportunity to provide feedback to the sponsors of the bill. An updated version is expected to be reintroduced during 117th Congress in the House Agriculture Committee and undergo a commission markup process before potentially proceeding to the House floor. However, even with House approval, getting Senate approval for the legislation will remain an obstacle. Likewise, the Blockchain Records and Transactions Act is expected to be reintroduced in 117th Congress and work its way through the Chamber’s Energy and Commerce Commission. The bill was previously introduced in 115th Congress, however, failed to gain ground.
The House’s passage of the Blockchain Innovation Act, the Digital Taxonomy Act, and the America COMPETE Act, as well as the introduction of the DCEA and the Blockchain Records and Transactions Act, represent a push of the late session to build legislative momentum on issues related to blockchain and cryptocurrency. in 117th Congress. As is often the case, making legislative progress in the Senate is a challenge, and as these and other related bills are reintroduced in the next House of Congress, the problem will be the Senate’s willingness to address them. Rapid developments in the sector, wider adoption by consumers and businesses, and increased engagement between the private sector and policy makers will help present this case to lawmakers.
