Per the request of the US Congress, the U.S. Authorities Accountability Workplace (GAO), laid out 4 coverage choices to assist policymakers implement blockchain applied sciences whereas enhancing advantages and mitigating challenges.
The know-how assessment shared by the GAO acknowledged the potential of blockchain know-how in enhancing quite a lot of monetary and non-financial purposes regardless of elevating considerations about introducing new challenges whereas attempting to resolve points associated to conventional programs:
“A blockchain may each enhance the velocity of a title registry system and decrease the price of title insurance coverage by making title registration easier and extra reliable.”
Nonetheless, among the challenges highlighted within the research embrace unsure advantages, knowledge reliability and authorized compliance.
With the above flowchart, GAO goals to assist policymakers — together with Congress, federal companies, state and native governments, educational and analysis establishments, and business — decide the requirement of blockchain implementation.
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— U.S. GAO (@USGAO) March 24, 2022
The GAO evaluation additional highlighted varied non-financial implementations of blockchain know-how, as proven under.
Whereas policymakers have the best to keep up the established order, the GAO beneficial 4 coverage choices to ease the decision-making course of that goes behind mainstream blockchain implementation — requirements, oversight, instructional supplies and acceptable makes use of.
With setting requirements, GAO envisions tackling challenges round interoperability and knowledge safety. Some issues embrace implementations of consensus mechanisms and establishing internationally acknowledged requirements.
Based on GAO, an oversight coverage can “assist tackle challenges with authorized and regulatory uncertainty and regulatory arbitrage.” As well as, the GAO recommends the issuance of instructional supplies for addressing challenges round restricted understanding and undefined advantages and prices.
The fourth coverage possibility, acceptable makes use of, talks about mitigating challenges round dangers to the monetary programs and undefined advantages and prices. Highlighting the Commodity Futures Buying and selling Fee’s (CFTC) lack of authority to collaborate with non-governmental entities, the evaluation states:
“Authorized or regulatory uncertainty might hinder some potential customers from benefitting from blockchain.”
Associated: US Virginia Senate permits state banks to supply crypto custody providers
On March 5, the Senate of Virginia unanimously accredited a invoice modification request that now permits conventional banks within the area to offer digital forex custody providers.
As Cointelegraph reported, the invoice was introduced by Delegate Christopher T. Head again in January 2022, stating:
“A financial institution might present its clients with digital forex custody providers as long as the financial institution has 26 ample protocols in place to successfully handle dangers and adjust to relevant legal guidelines.”
The invoice handed Senate with a sweeping 39-0 vote and is ready to be signed into regulation by Governor of Virginia Glenn Youngkin.
