Congress Grapples With Blockchain, Cryptocurrency Rules

As the use of blockchain networks and cryptocurrencies like Bitcoin has become more widespread, Congress has taken an increasing interest in the regulatory oversight of the blockchain and cryptocurrency ecosystem.

After holding a hearing in February on the matter, the Senate Banking Committee revisited the issue with another hearing during the final week of lawmakers’ fall session. Chairman Mike Crapo (R-ID) summed up the situation in his opening statement:

“While the technologies underpinning cryptocurrencies have the ability to transform the composition of, and ability to access, capital and the financial system, much of the recent news about cryptocurrencies has been negative, focusing on enforcement actions, hacks on international exchanges, and concerns raised by various regulators and market participants.”

Ranking Member Sherrod Brown (D-OH) added:

“With a decade of experience, much of the irrational exuberance around cryptocurrencies and blockchain technology has subsided, and we have an opportunity to set more realistic expectations for how these innovations might be used to promote a fairer and more competitive economy.”

Over on the other side of the Capitol, House lawmakers are offering legislation to that end.

The Blockchain Promotion Act ― introduced by Reps. Brett Guthrie’s (R-KY) and Doris Matsui (D-CA) ― would establish a working group of relevant federal agencies, blockchain researchers, and consumer advocacy groups that’d spend one year developing a common definition of “blockchain technology” and its potential applications.

The Blockchain Regulatory Certainty Act, offered by Rep. Tom Emmer (R-MN), would create a “safe harbor” from federal and state money transmitter registration requirements for blockchain developers or service providers that don’t handle consumer funds and focus on validating a blockchain network’s integrity.

Tell your reps what you think of blockchain regulation and share your thoughts below!

— Eric Revell

(Photo Credit: iStock.com / WLDavies)