US passes consumer safety tech act to evaluate blockchain

While cryptocurrencies still dominate the headlines, there are also interesting developments on the consumer front for blockchain and distributed ledger technologies (DLT).

One such development is the recent passing in the US legislature of the Consumer Safety Technology Act, by a healthy majority of 325-103.

The Act requires the office of the Secretary of Commerce, with the Federal Trade Commission (FTC), to research and prepare a report on the use of blockchain technology and digital tokens, and the potential benefits of these technologies in limiting fraud, unfair and deceptive acts and practices.

The scope would include the likes of trends in the commercial use of and investment in blockchain technology, best practices in facilitating public-private partnerships in blockchain technology, potential benefits and risks of blockchain technology for consumer protection and how blockchain technology can be used by industry and consumers to reduce fraud and increase the security of commercial transactions.

It would also include an examination of how Federal regulation of blockchain and DLT could provide greater clarity to encourage domestic innovation.

The passing of the act is seen as recognition of the increasing adoption of blockchain and DLT in business, and its potential to increase transparency and confidence for consumers and businesses alike.

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