In a major development, the United States House of Representatives recently passed the Digital Taxonomy Act and Blockchain Innovation Act on Sep 29. These statutory plans are part of the Consumer Safety Technology Act — Bill HR 8128, introduced by Rep. Darren Soto. The bill has now been forwarded to the Senate for final approval.
Digital Taxonomy Act and Blockchain Innovation Act – What Is it?
The Digital Taxonomy Act contains the legislation for safeguarding people against illicit projects and using blockchain to counter fraud, owing to blockchain’s immutability and secure record-keeping. If approved, the Federal Trade Commission (FTC) would be tasked to regulate the blockchain against fraud and malpractices involving digital assets.
They will also be required to produce a detailed activity and performance report for the House Committee on Energy and Commerce, as well as the Senate-based Committee on Commerce, Science, and Transportation. It would contain the steps and efforts taken by FTC to combat blockchain fraud.
Similarly, the Blockchain Innovation Act requires the Secretary of Commerce to consult with the FTC and other agencies to outline the advantage of using blockchain technology against fraud and manipulation. Furthermore, it asks them to find best practices to foster public and private partnerships in the blockchain arena.
Importance and Future Implications
The bill’s importance can be gauged by the fact that governments now consider blockchain as a useful technology to be adopted and regulated, rather than banned outright or censored. It would also help the United States in remaining competitive with the rest of the world in this emerging field.
Currently, research and development in the blockchain field have been hampered by the regulatory uncertainty. The investors and developer teams have approached the space cautiously in the past due to the risk of legal fallout and government censorship. With that in mind, clear regulations would certainly help in that regard while also promoting activity in this area.
The bill’s approval can further pave the way for a common understanding of the technology around government circles and even provision of funding for such projects. Regardless of the outcome, it’s a positive step in the right direction, considering the fact that the subject of blockchain was considered taboo not long ago.