Major steps have been taken in an attempt for the Senate to regulate cryptocurrency as more and more people turn to the decentralized currency. As of September of 2020, new legislation on the rules governing blockchain technology and digital currency has been passed to the U.S House of Representatives and will then be considered by the Senate before becoming passed as law.
This new legislation is coming from the Energy and Commerce Committee and will be updating the Consumer Safety Technology Act which will now include the Digital Taxonomy Act and the Blockchain Innovation Act. The major theme of these acts is really about regulating cryptocurrency so that it is safer for everyone to use.
The Digital Taxonomy Act was originally introduced in April of 2019 and it requires that the Federal Trade Commission develop plans in order to prevent any unfair or deceptive practices involving digital currency or cryptocurrency from happening. The update to the act provides definitions for the terms “digital asset” and “digital unit” and would require that the Federal Trade Commission work on preventing deceptive practices specifically involving those two.
The Blockchain Innovation Act was originally introduced in September of 2020 and it would require that the Department of Commerce consult with the Federal Trade Commission and any other relevant agencies to study the potential applications of blockchain technology. The upgrade to the act would make the Federal Trade Commission put together a report on the role blockchain holds in consumer protection.
The updating of these two acts is extremely major as they work to help make cryptocurrency safer. But their main contribution is to the Consumer Safety Technology Act as it will allow the Consumer Product and Safety Commission to consult with data scientists and product manufacturers to test out artificial intelligence in a pilot program.
The pilot program would test out different processes such as tracking trends in injuries involving consumer products, identifying consumer product hazards, monitoring the sale of recalled consumer products, and identifying consumer products that do not reach specified safety requirements