US Senate to look at cryptocurrency bill to improve payments

US Senate to look at cryptocurrency bill to improve payments

By Benson Toti - min read

The Digital Taxonomy Act and the Blockchain Innovation were part of the Consumer Safety Technology Act

The Blockchain Innovation Act and the Digital Taxonomy Act, two bills on the blockchain and crypto industry introduced by Representative Darren Soto, have been approved by a voice vote in the House of Representatives.

The two acts were packaged into the Consumer Safety Technology Act (HR 8128), a bill that directs the Consumer Product Safety Commission to explore applications for artificial intelligence (AI) earlier this month. If it is passed, this bill will be taking the next steps forward in protecting the public against malicious projects while using blockchain technology to detect fraud.

The Federal Trade Commission (FTC) is directed by the Digital Taxonomy Act. The FTC is a consumer protection agency that will train staff and allocate resources to identify and shield the public against any “deceptive acts or practices” that involve the use of digital tokens.

The Digital Taxonomy Act also mandates that the FTC produce a report for the House Committee on Energy and Commerce and the Committee on Commerce, Science, and Transportation. The report will illustrate its efforts to fight deceptive acts online as well as provide a layout of the actions it has taken thus far.

Furthermore, the act states that digital tokens and blockchain technology are important for American innovation, and requests that the FTC provide their feedback to ensure the US remains competitive while simultaneously limiting abuse.

In a press release, Representative Soto emphasised the need for the US to remain a leader in the development of blockchain and other related technologies.

“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.”

The Blockchain Innovation Act, which is also rolled into HR 8128, takes a similar approach to consumer protection. It requires that the Secretary of Commerce consults with the FTC and other agencies to produce a report that details the benefits of using blockchain technology to fight fraud.

In addition, the Act asks the Secretary to find the “best practices in facilitating public-private partnerships in blockchain technology” as well as ways where “greater clarity would encourage domestic innovation”.

“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,” Soto concluded at the end of the press release.