The Consumer Safety Technology Act was passed by the House of Representatives. This is an important document for the US blockchain market.
The Consumer Safety Technology Act in the USA
The Consumer Safety Technology Act focuses on consumer protection, but also covers digital token and blockchain analyzes. The act has already been passed by politicians and within only a week of its introduction into the legislative circulation. 325 congressmen were in favor, while 103 were against.
Does this mean that the new law will come into force? It is not known, because the Donald Trump administration has already worked on similar regulations. They were voted in the House of Representatives in September 2020, but then the bill was referred to the Trade, Science and Transport Committee and then rejected in the Senate.
California 9th District Democrat Jerry McNerney promoted the new bill he was working on with Democrat Darren Soto and Republicans Warren Davidson, Van Taylor, Michael Burgess and Brett Guthrie.
New law in practice
The draft law calls, inter alia, on the Consumer Product Safety Commission to implement a pilot artificial intelligence program to support analyzes in the field of consumer safety. These are to identify the risks associated with consumer products.
In addition, he calls on the Secretary of Trade and the Federal Trade Commission (FTC) to “Research and reporting on the use of blockchain technology and digital tokens.”
The act also includes provisions on blockchain innovation and taxonomy of digital assets. Under the new law, the FTC would create reports on “Fraudulent or fraudulent activities or practices in transactions involving digital tokens”.
Soto first introduced the latter concept in April 2019, but did not receive a single vote of support at the time, so his vision collapsed.
The regulations are designed to stop cryptocurrency fraudulent activities by individuals and companies.
– When we look at market volatility, the use of cryptocurrencies in ransomware attacks (blocking access to data stored on a given device) and recent attacks such as the one on the Colonial Pipeline and tax evasion, it is very important that we address this topic Soto said.
The US has long been thinking about regulating the cryptocurrency and blockchain market. The problem is that so far the creation of new laws in this area has been quite slow and ineffective. Maybe the new legislative process will change this state of affairs?