Massachusetts bill for special blockchain commission to assess government usage

Two bills related to crypto were introduced to the Massachusetts House of Representatives connected Jan. 19. The archetypal related to a caller “special committee connected blockchain” and the 2nd connected “protecting consumers successful cryptocurrency exchanges.”

Given the caller publicity received done the FTX collapse, it is unsurprising that officials would look to adhd other user protection. The instauration of a ‘special commission’ connected blockchain could besides beryllium a bullish indicator for the citizens of Massachusetts, providing the committee receives capable accusation to analyze.

Massachusetts Special Commission connected crypto

Special Commission

Massachusetts Representatives Josh S. Cutler and Kate Lipper-Garabedian submitted the measure entitled “An Act establishing a peculiar committee connected blockchain and cryptocurrency” connected Jan. 19 to make a steering radical wrong the Massachusetts House to look astatine blockchain technology.

“For the purposes of making an probe comparative to blockchain exertion to make a maestro program of recommendations for fostering the due enlargement of blockchain exertion successful the Commonwealth.”

The committee is planned to incorporate 25 members, including the House Speaker, the number leader, and the president of the Senate, suggesting, if passed, the committee is to beryllium taken seriously.

The committee is designed to absorption connected respective cardinal areas

• The feasibility, validity, admissibility, and risks related to utilizing blockchain exertion for authorities usage wrong Massachusetts.
• Whether its explanation of blockchain is capable concerning enforceable laws.
• The imaginable interaction connected the Massachusetts authorities revenues of integer assets and cryptocurrencies.
• Government and concern advisory availability, with a absorption connected cannabis retail stores.
• How vigor depletion whitethorn request to beryllium regulated.
• Any further user protections required for retail users of crypto.
• “Best practices for enabling blockchain exertion to payment the commonwealth.”
• Which authorities entities should beryllium liable for the enforcement of blockchain regulations.
• Any different blockchain-related taxable suggested by the commission.

“The committee shall instrumentality input from a wide scope of stakeholders with a divers scope of interests affected by authorities policies governing emerging technologies, privacy, business, finance, the courts, the ineligible community, and authorities and section government.”

According to the bill, the committee volition study its findings wrong 1 twelvemonth of the authorization arsenic it looks to “foster a affirmative blockchain exertion environment.”

Consumer protection

A further measure was filled with the rubric “An Act protecting consumers successful cryptocurrency exchanges.” The measure was submitted by Representative Susan L. Moran to “protect” consumers engaging with crypto exchanges.

The measure is directed astatine businesses that connection crypto trading oregon conversion operating successful the authorities of Massachusetts oregon with Massachusetts customers.

However, fixed the circumstantial wording of the bill, the caller rules should not use to Decentralized Exchanges (DEXs) wrong Massachusetts. The measure describes a Massachusetts lawsuit arsenic “a idiosyncratic who uses a virtual currency speech work whose accusation connected grounds with oregon disposable to said speech work indicates a Massachusetts location address.”

Therefore, immoderate tract capable to run wrong the U.S. without immoderate KYC requirements would not beryllium affected.

A captious facet of the measure is the request for crypto exchanges operating successful the authorities of Massachusetts to wage the authorities an yearly “Registration fee” of 5% of gross revenues.

Further, businesses indispensable clasp immoderate advertizing materials utilized to beforehand crypto for nary little than 7 years. All selling indispensable besides see the business’s ineligible sanction and confirmation of its registration to run a cryptocurrency business.

To effort to combat incidents specified arsenic the FTX illness reoccurring, the measure besides requires businesses to “disclose successful clear, conspicuous penning each worldly risks to the idiosyncratic associated with the peculiar virtual currency concern activities successful which it engages.”

Virtual Currency Insurance Fund

The measure besides introduced the conception of a Virtual Currency Insurance Fund to support customers against fraud. The security excavation volition beryllium funded done payments related to immoderate violations of the recently projected regulations. Each usurpation shall travel with a good of up to $5,000 per violation.

Customers volition beryllium capable to person grants from the money if they person crypto assets held with an speech “that is incapable to conscionable immoderate monetary obligations to immoderate of its customers.”

The station Massachusetts measure for peculiar blockchain committee to measure authorities usage appeared archetypal connected CryptoSlate.