On 29 September 2020, the Digital Taxonomy Act and Blockchain Innovation Act bills passed the U.S. House of Representatives. The two bipartisan bills were introduced by Congressman Darren Soto of Florida and will be incorporated into the Consumer Safety Technology Act, if passed by the Senate. Soto was also a co-sponsor of the COMPETE Act that passed yesterday, a bill on emerging technology.
The Blockchain Innovation Act requires the Secretary of Commerce, in consultation with the Federal Trade Commission (FTC), to study blockchain technology and its use in consumer protection. The study would explore how blockchain can be used commercially, including the benefits and risks for consumer protection and its ability to reduce fraud, amongst others. Congress will also need to receive a report on this study. The bill’s ultimate goal is to form a ‘Blockchain Center of Excellence’ within the Department of Commerce.
The Digital Taxonomy Act will authorize the FTC to prevent deceptive and unfair practices relating to digital tokens. Congress will need to receive a report on the FTC’s actions. Notably, the report must include recommendations for legislation that would help protect consumers from deceptive practices in the sector and promote the United States’ global competitiveness. The FTC will receive $25 million for each fiscal year between 2020 and 2024 for this purpose.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
