US House Lawmakers Pass Two Key Blockchain Legislation; Bills Headed To Senate
Following a two-week debate in the U.S. Congressional House, the Consumer Technology Act, which covers the Digital Taxonomy Act and the Blockchain Innovation Act, passed on Tuesday. The Act will now head to the Senate for debate.
The Digital Taxonomy Act and the Blockchain Innovation Act were introduced to the House by the Congressional Blockchain Caucus chairperson, Rep. Darren Soto. The two were then rolled into the broader Consumer Technology Act (HR. 8128), a program that mandates the Consumer Product Safety Commission to research and develops artificial intelligence solutions to enhance consumer protection and product safety.
The Soto-backed acts will work under the same goals of consumer protection. The latter aims at using blockchain technologies to fight fraud while the former will protect consumers from cryptocurrency and digital asset scams and fraud. Both bills introduced by Soto aim at enhancing U.S.’ blockchain research and development while keeping consumers safe. Soto wrote in a statement,
“The bill [Digital Taxonomy Act] directs the Federal Trade Commission to produce a report that would detail how the FTC protects consumers from unfair and deceptive acts or practices and provide further recommendations.”
Additionally, the Digital Taxonomy Act, if passed, will authorize additional power to the Federal Trade Commission (FTC) to “prevent unfair or deceptive acts or practices relating to digital tokens and transactions relating to digital tokens.”
The Blockchain Innovation Act, on its part, directs the Department of Commerce (DOC) to carry out a study on how blockchain technologies can be used to enhance trade and commerce – and how to reduce fraud across the commerce industry. The report, conducted in consultation with the FTC, will be submitted to the House Committee on Energy and Commerce and Senate’s Committee on Commerce, Science, and Transportation.
The statement on the passing of the blockchain bills further praised the potential that blockchain offers to commerce and trade in the U.S. Soto said,
“The study mandated by the Blockchain Innovation Act is a starting point meant to give government agencies a chance to make recommendations before any bills pass with a regulatory effect.”
“These recommendations will perform an educational function to Members of Congress and will pave the way for more actionable blockchain-focused legislation.”
The Consumer Technology Act was introduced to the house by Congressman Jerry McEnery (D-CA), referred to the Committee on Energy and Commerce.