Blockchain is a catalyst for innovation

Innovation has always been the lifeblood of economic growth in the United States. Currently, a leading force that is driving American innovation is blockchain technology. Originally developed to support cryptocurrencies, blockchain has evolved into a foundational tool for businesses of all sizes across many industries. As a small business owner in the Cape Region, I have leveraged blockchain in numerous regards to bolster my businesses’ operations. 

The core of blockchain’s appeal is its ability to create trust, which is important in the complex digital world that we now live in. As a decentralized ledger, blockchain replaces intermediaries, allowing for peer-to-peer transactions that are secure, transparent and nearly instantaneous. These features will especially benefit the finance and healthcare sectors where trust and security are paramount. In finance, decentralized finance platforms are revolutionizing how people borrow, lend and trade assets. In healthcare, blockchain can be used to securely share medical records between providers, ensuring that sensitive information is both accessible and protected from tampering.

In the small business realm, blockchain’s transparency can go long ways in encouraging accountability, which is crucial in industries where traceability is vital. The immutable ledger provided by blockchain allows companies to track goods in real time through all stages of the supply chain. This level of transparency ensures that products are authentic, ethically sourced, and in compliance with regulatory standards. As an interior designer, heightened transparency will help ensure my clients that they are receiving the brands and sourcing they desire. 

American companies are at the forefront of blockchain research and development, with Silicon Valley and Wall Street alike investing heavily in blockchain technology. While this investment is helping continue our innovative tradition, we must foster an environment that encourages blockchain. In practice, this means implementing a regulatory framework that protects consumers and prevents fraud while allowing for experimentation and growth. Clear regulations around cryptocurrencies, blockchain-based businesses and data privacy will help ensure that the U.S. remains an attractive destination for blockchain entrepreneurs and investors.

Last Congress made huge strides by introducing H.R. 4763, FIT21 which represents this buy-in to blockchain. This bill, which reached across the aisle to pass the House, brings clarity to blockchain by legally defining what a decentralized network is. Through this sense of clarity, digital assets will have a ramp to transition from security investments to commodities, and will be mainstreamed by delineating the oversight roles for both the Securities and Exchange Commission and the Commodity Futures Trading Commission. The bill calls for interagency cooperation to create fair rules for the industry while also protecting consumers in this blossoming market. The reintroduction and passage of this legislation for the 119th Congress will help encourage investment in American digital asset companies and could give the United States a competitive edge in digital innovation moving forward.

Unfortunately, it was not all smooth sailing for blockchain in Washington. Last Congress, S. 2669, the Digital Asset Anti-Money Laundering Act of 2023, was introduced. It was a direct attack on everyday crypto users. The bill would mandate those who maintain public blockchain networks to register as a financial institution, similar to a bank. They would be required to record the personal information of every single user on the network and create an internal mechanism that would be able to freeze any transaction if it is remotely suspected of being related to criminal activity. This bill is diametrically opposed to American values, and would undermine key components of what makes blockchain a unique innovation.

Put simply, blockchain is a catalyst for American innovation. By fostering transparency and decentralization, blockchain is unleashing a wave of economic activity that could transform the digital economy of the United States. As long as we continue to nurture this technology with thoughtful regulation, and investment in education and infrastructure, the future of blockchain innovation in America looks incredibly bright.