LONDON (Bywire News) - Blockchain technologies and digital currencies took a major step closer to the mainstream as key legislation passed the House of Representatives. Two bills will now be considered by the Senate before becoming law.
The bill involves an update to the Consumer Safety Technology Act which includes both the Digital Taxonomy Act and the Blockchain Innovation Act and the Digital Taxonomy Act. The aim of the new laws is to bring some welcome certainty into the legal environment governing the blockchain.
The Digital Taxonomy Act introduced new terms such as digital assets and units into US law for the first time and gives the Federal Trade Commission oversight to prevent unfair practices.
The blockchain Innovation Act requires the Federal Trade Commission to publish a report into the role of the blockchain in consumer protection.
The bills were authored by Congressman Darren Soto who welcomed their passage as helping the United States take a lead role in emerging blockchain industries.
The bills come at a time when there has been growing pressure from all sides to provide greater regulation of blockchain and digital assets around the world. Governments are keen to introduce standardised regulation which helps them provide oversight of the emerging blockchain sectors.
With all of these efforts, legislators are seeking to strike a balance between protecting customers while avoiding any regulation which stifles innovation. Here in the UK, for example, the FCA has introduced a regulatory sandbox designed to test innovative blockchain technologies in a safe environment. The program has already resulted in the watchdog authorising a number of emerging blockchain technologies.
(Written by Tom Cropper, Edited by Klaudia Fior)