Two new bills were passed in the House of Representatives and are now being discussed in the U.S. Senate. The proposals concern the adoption of blockchain technology and its role in consumer protection.
Congressmen emphasized the importance for the U.S. to lead the way in the technology and to keep up with the competition.
In addition, a general adoption of cryptocurrencies to modernize the existing payment system is being negotiated.
Two bills concerning blockchain-technology and the crypto industry were passed by a vote in the House of Representatives. The two drafts were submitted by Congressman Darren Soto and will next be debated in the U.S.-Senate. As a new part of the Consumer Safety Technology Act (HR 8128), they are intended to help finding ways for improving the U.S. payment infrastructure.
Blockchain-technology used in consumer protection
The two bills are the Blockchain Innovation Act and the Digital Taxonomy Act. The merger of these two drafts in HR 8128 is to be investigated at the beginning of next month for artificial intelligence applications. This will be done via the Consumer Product Safety Commission. The aim is to use block chain technology to take steps for protecting the public from fraudulent and malicious projects.
In the Blockchain Innovation Act the Federal Trade Commission (FTC) would be assigned by the task of identifying and stopping fraudulent trade in digital assets. To this end, the FTC would prepare a report that would show how blockchain-technology could be applied to consumer protection. This concerns both the public and the private sector.
The Digital Taxonomy Act, which deals with the digital economy, contains definitions of terms such as „digital asset“ or „digital unit“. This Act also focuses on combating fraudulent activities on the Internet. It also emphasizes the importance of blockchain-technology and digital tokens for American innovation.
Further the FTC is called upon to give its approval in order to ensure that the U.S. leads the way in technology and at the same time curbs illegal activities. Congressman Darren Soto addresses the importance of the U.S. role in this area:
„Blockchain technology has an incredible amount of potential for innovation and economic growth. I believe our government needs to support that growth … As lawmakers, it’s our duty to ensure the United States continues to lead in blockchain technology. The Digital Taxonomy Act adds greater jurisdictional clarity for a strong digital asset market in the United States.“
Soto also supported the U.S. Compete Act HR 8132, which was newly passed and aims to promote new technologies including blockchain-technology.
Congressmen want to modernize the payment system through cryptocurrency adoption
The congress also discussed the active use of cryptocurrencies by renewing the existing payment system. To this end, the U.S. Office of the Comptroller of the Currency (OCC) has proposed changes that have been considered by Congress. Recently, the OCC has increasingly supported the expansion of cryptocurrencies in the traditional financial system.
CEO Everett K. Sands advocated the adoption of cryptocurrencies such as Bitcoin and blockchain-technology in payments. His proposal was communicated by Congressman French Hill. He said that the U.S. needed crypto-adoption in light of the current reforms to modernize the payment system.
Congressman Soto declared it to be the main task for the legislators to ensure that the U.S. does not fall behind in the competition. He ended his press release with the following words:
„Hearing the opinion of regulators is an important first step to encouraging regulatory clarity with the aims of promoting innovation and maximizing the potential of virtual currencies for the U.S. economy.“
The bills supported by Soto will now be discussed in the U.S.-Senate, along with the proposal to use artificial intelligence in consumer protection, which was added by representative Jerry McNerney.