The U.S. House Committee on Energy and Commerce recently supported a motion that would incorporate elements of the Digital Taxonomy Act and the Blockchain Innovation Act into new legislation as part of the upcoming Consumer Safety Technology Act. The move gives blockchain technology legal parity in the act alongside artificial intelligence. It further creates obligations for the Federal Trade Commission and the Department of Commerce to examine and reduce future possible consumer risks.
The law will tackle deceptive practices in cryptocurrency.
In particular, the proposed law will look to identify and tackle “deceptive practices” in the crypto sector, including the sale of misleading or valueless digital tokens. There would also be an examination of how blockchain tech could help the government tackle fraud more generally, and how the technology can be used to uncover deceptive practices in other industries. Representative Darren Soto said the proposed bill would lead to a new Blockchain Center for Excellence within the Department of Commerce.
“I believe our government needs to support that growth, establish light-touch regulations to ensure certainty, protect innovation, stop fraud, and enable its appropriate use for government, business, and consumers,” the representative said.
This is the furthest any blockchain legislation has come so far in the U.S. Congress.
At its current stage of progress, the proposed bill is the furthest any blockchain legislation has come thus far in the U.S. Congress. It follows on from remarks by the government antitrust boss, who said that blockchain tech could be the answer to preventing new market monopolies from forming in the future. The proposed bill shows an increasing awareness and respect for the blockchain tech and cryptocurrency in Washington. If the law is passed as proposed, it could spark further legislation in the U.S. and could lead to a more defined legal framework for digital currency and blockchain companies in the future, reported Sahil Kohli.