Congressional Blockchain Caucus Looking Beyond Bitcoin, Co-Chairs Say
The Congressional Blockchain Caucus is aiming to raise awareness on Capitol Hill about the blockchain distributed database technology in a way that highlights the full spectrum of the technology's potential applications, said co-chairmen Jared Polis, D-Colo., and David Schweikert, R-Ariz. Polis and then-House Monetary Policy Subcommittee Vice Chairman Mick Mulvaney, R-S.C., formed the CBC in September (see 1609260038). Schweikert replaced Mulvaney as caucus co-chairman in February when Mulvaney became Office of Management and Budget director (see 1702100058).
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Blockchain is “not just about” its most visible role as a distribution vehicle for bitcoin and other virtual currencies, though the CBC does also focus on that role, Schweikert said Thursday during a Chamber of Digital Commerce (CDC) event. Stakeholders previously urged lawmakers not to lump in all blockchain-based technologies with virtual currencies given federal agencies' and states' increasing interest in regulating virtual currency businesses as money transmission services (see 1509180061 and 1701090041).
The CBC hopes it can become a resource for lawmakers so they learn “how not to screw up” the environment for blockchain technologies to innovate, since they sometimes realize after pre-emptively regulating that “we've built a barrier for the next great idea,” Schweikert said. The caucus can be part of the federal government's “convening role” in bringing together blockchain experts “on standards setting and other activities,” Polis said. It's important for Congress to “weigh in” instead of leaving it entirely up to federal agencies because regulatory bounds would otherwise be determined by “who is best at fighting for their fiefdom,” Polis said.
The group is “very interested in helping facilitate the deployment of blockchain technologies” across federal agencies, Polis said. CDC President Perianne Boring noted hopeful signs for increasing federal government adoption of blockchain, including Mulvaney's move to OMB. She noted IBM's recently announced two-year research agreement with the Food and Drug Administration on scaling health data using blockchain technology and the Department of Homeland Security's awarding of research grants to four blockchain companies on identity management solutions. The Trump administration sees blockchain technology as an important part of the U.S. economy, said Mark Calabria, Vice President Mike Pence's chief economist, in a Wednesday speech at the CDC event.
Federal agencies' potential adoption of blockchain technologies could lead to more “elegant” government regulation, Schweikert said. Blockchain's inherent crowdsourcing of data produces a transparent flow of information that has the potential to lead to “more elegant” government regulation across a range of agencies, he said.
The state government separately said Wednesday its Illinois Blockchain Initiative is more actively exploring ways to connect the state's infrastructure using the technology. IBI formed in November to explore government use cases for blockchain but is now formally considering a range of pilot uses for the technology, said IBI Business Liaison Jennifer O'Rourke. Potential tests include tracking Illinois' healthcare registries and the state's college credit tracking system, she said. Illinois' Department of Financial and Professional Regulation said Thursday it joined blockchain consortium R3, which is working on blockchain-based technologies aimed at the financial industry.