The House of Representatives of the US Congress has passed a bill to research and regulate the blockchain and cryptocurrency industry, as well as to protect the safety of users.
The Law on Ensuring Technological Safety and Consumer Protection (
Consumer Safety Technology Act) aims to both protect consumer rights and thoroughly research the blockchain and digital currencies industry with a view to their further regulation. According to this law, the US Consumer Product Safety Commission should launch a pilot project to study the use cases of artificial intelligence (AI) in trade, as well as assess the associated risks.
The law includes the Blockchain Innovation Act and some portions of the Digital Taxonomy Act related to blockchain and cryptocurrencies. They imply that the Secretary of Commerce and the US Federal Trade Commission (FTC) should start exploring blockchain technology and digital tokens.
In addition, the department should analyze how to prevent the use of cryptocurrencies to commit fraud and other illegal activities. Subsequently, the FTC must prepare a progress report. Both bills are aimed at curbing illegal activities related to digital currencies by individuals and “unscrupulous” firms.
The bill was passed by the 117th convocation of Congress, receiving 325 votes in favor and 103 votes against. It was previously adopted by the House of Representatives in September 2020 during the Trump administration, after which it was transferred to the Committee on Trade, Science and Transport. However, the proposal was subsequently rejected in the Senate. The Blockchain Innovation Act and the Digital Taxonomy Act were first introduced to the US Congress in 2019, but they did not receive support at the time. Congressman Darren Soto (Darren Soto) said the need to protect users from the instability of the cryptocurrency market and criminal activity.
“Given the high volatility of the cryptocurrency market, the use of ransomware, recent hacker attacks like the Colonial Pipeline and tax evasion, this bill is vital. However, it should be borne in mind that new technologies, including AI, blockchain and cryptocurrencies, are playing an increasingly important role in our daily life. Therefore, they can become the “engine” of the economy of the 21st century, ”Soto said.
Note that the authorities of the state of Nebraska are already ready to study the use of blockchain in agriculture. In addition, this state has moved to the final stage of consideration of a bill, according to which local banks will be allowed to provide cryptocurrency services.
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