US Congress Agency Recommends 4 Policy Options For Blockchain Technology – Cryptovibes.com – Daily Cryptocurrency and FX News
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According to the request of the United States Congress, the U.S. Government Accountability Office (GAO) has already laid out four policy options to enable policymakers to implement blockchain technologies while boosting benefits and minimizing challenges.
GAO strives to help the policymakers, including the federal agencies, Congress, state and local governments, record smooth blockchain implementation. This technology assessment shared by the GAO acknowledged the potential that blockchain technology brings in enhancing various financial and non-financial applications despite highlighting worries about the introduction of new challenges while aiming to resolve the issues that are related to traditional systems:
“A blockchain might both increase the speed of a title registry system and lower the cost of title insurance by making title registration simpler and more trustworthy.”
Nonetheless, some of the challenges that were highlighted in the study include uncertain benefits, legal compliance, and data reliability.
With the published flowchart, GAO strives to help the policymakers including regulators, government agencies, industries, and academic and research institutions to determine the need for blockchain implementation.
The GAO assessment also highlighted different non-financial implementations of blockchain, as seen below.
While the policymakers have a right to maintain the status quo, the GAO recommended four policy options to ease the decision-making procedure that goes behind mainstream blockchain implementation – oversight, standards, educational materials, and appropriate uses.
By setting standards, GAO believes in tackling challenges around data security and interoperability. Some of the considerations include the implementation of consensus mechanisms and establishing internationally recognized standards.
Based on a statement by GAO, an oversight can “help address challenges with legal and regulatory uncertainty and regulatory arbitrage.” Furthermore, the GAO recommends the issuance of educational materials for addressing challenges around the limited understanding and undefined costs and benefits.
The fourth policy option, appropriate uses, talks about minimizing challenges surrounding the risks to the financial networks and undefined benefits and costs. Mentioning the Commodity Futures Trading Commission’s (CFTC) lack of authority to associate with non-governmental entities, the assessment reads:
“Legal or regulatory uncertainty may hinder some potential users from benefitting from the blockchain.”
On March 5, the Senate of Virginia generally approved a bill amendment request that now enables the traditional banks in the area to offer virtual currency custody services. Based on previous reports, the bill was introduced by Delegate Christopher T. Head back in January 2022, saying:
“A bank may provide its customers with virtual currency custody services so long as the bank has 26 adequate protocols in place to effectively manage risks and comply with applicable laws.”
This bill passed Senate with an incredible 39-0 vote and is waiting to get signed into law by the Governor of Virginia Glenn Youngkin.
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