Following President Biden’s executive order earlier in the month, US government agencies have started coming up with their suggestions regarding policies to govern the blockchain and crypto space.
Highlights Of The Recommendation
The US government accountability office (GAO) is the latest to make its recommendations. The US GAO has developed four options for the blockchain and crypto space. The options contain solutions to the current issues affecting the US blockchain and crypto space and how the government can utilize this new technology.
According to the GAO recommendation, blockchain technology can enhance various FinTech and non-FinTech apps. It further states that blockchain technology would help resolve current financial infrastructure issues.
Part of the report from the US GAO reads, “a blockchain simplifies title registration and makes it more trustworthy. Thus, increasing the speed of this title registry system and lowering its insurance costs. Furthermore, it simplifies access to various documents and other details of title registration and ownership transfer.”
Some of the challenges cited in the GAO report include legal compliance, data reliability, and inconsistent benefits. The report also contained a flow chart that details the implementation of blockchain technology in various federal and state parastatals.
Beyond Conventional Implementation
The GAO report claimed that its four recommendations would make it easy for the authorities to decide how to use blockchain technology. Their recommendations don’t include the typical applications of blockchain. Instead, they include implementations like proper uses, oversight, educational materials, and standards.
According to the report, setting standards involves solving data security and interoperability issues, establishing standards recognized worldwide, and implementing a consensus process. GAO recommends a better spread of knowledge to tackle issues of inadequate understanding of how blockchain works.
While it remarked that oversight policy could help tackle legal and regulatory confusion issues. Regarding fair usage, GAO discusses solutions to financial systems risks, costs, and undefined benefits.
The report also claims that the CFTC lacks the authority to partner with non-governmental agencies regarding blockchain and crypto deployment. Part of the conclusion in the report remarked that some users might likely not benefit from this technology because there is no clarity regarding legal or regularity crypto policies.
Blockchain And Crypto Adoption Keeps Spreading Across American States
Nevertheless, most American states are now enabling traditional banks to provide crypto-related services for their clients. A recent example is the state of Virginia. Virginia’s legislature approved a bill that states that “a bank must have 25 appropriate measures in place before offering crypto-related services for its clients. The measures are necessary to enable these banks to abide by the appropriate rules and manage risks effectively.”
Virginia’s legislators approved the bill unanimously and have passed it to the state governor for him to sign the bill into law. Similarly, legislators in the state of Austin recently passed two crypto and blockchain-related bill proposals. Part of the proposal is the approval of cryptos for payment of services across the state.