Pieces of House Legislation Would Allow Regulators to Research Blockchain, Supporters Say

Rep. Austin Scott (R-Ga.) has sponsored a bill that would bring about exceptions to gift rules to allow regulators to enjoy admission to blockchain, data, analysis or additional computerized infrastructure outlined by innovators in the private sector, as long as choices are made competitively. (photo credit: austinscott.house.gov)

A year has passed since bureaucrats stated that rigid procurement regulations could keep regulators from collaborating jointly with financial technology companies, but no lawmaking resolution is planned to fix what several find to be a bad situation, according to Roll Call.

Two House pieces of legislation would make sure that the Securities and Exchange Commission and the Commodity Futures Trading Commission could stay away from violating those regulations and get means of entry to technologies made by industry nonetheless. Both bills are supported on a bipartisan basis, but with the nation focused on dealing with COVID-19, neither is expected to pass any time soon.

Fintech observers are cheering for these pieces of legislation and other ideas to better line up officials’ technological means with an industry that wants to advance.

Federal statute bans government organizations from taking free personal possessions or aid such as technology that may assist them in overseeing the market. Such admission is considered a method for the government organization to bump up its allocation. This has resulted in some members of Congress sponsoring legislation that would allow government organizations that regulate to get entry onto platforms like those utilized in fintech.