ARTICLE
28 June 2021

Blockchain & Consumer Protection Bill Passes House With Strong Bi-Partisan Support

FK
Frankfurt Kurnit Klein & Selz

Contributor

Frankfurt Kurnit provides high quality legal services to clients in many industries and disciplines worldwide. With leading practices in entertainment, advertising, IP, technology, litigation, corporate, estate planning, charitable organizations, professional responsibility and other areas — Frankfurt Kurnit helps clients face challenging legal issues and meet their goals with efficient solutions.
The "Consumer Safety Technology Act" (H.R. 3723), sponsored by Rep. Jerry McNerney (D-CA), recently passed the House. The final vote tally was 325-103.
United States Technology

The "Consumer Safety Technology Act” (H.R. 3723), sponsored by Rep. Jerry McNerney (D-CA), recently passed the House. The final vote tally was 325-103.

The Act would require the Secretary of Commerce, in conjunction with the Federal Trade Commission (FTC), to study and report on the use of blockchain technology and digital tokens and the potential benefits of blockchain technology for limiting fraud and other unfair and deceptive acts and practices, including:

  • trends in the commercial use of and investment in blockchain technology;
  • best practices in facilitating public-private partnerships in blockchain technology;
  • potential benefits and risks of blockchain technology for consumer protection;
  • how blockchain technology can be used by industry and consumers to reduce fraud and increase the security of commercial transactions;
  • areas in Federal regulation of blockchain technology that greater clarity would encourage domestic innovation; and
  • any other relevant observations or recommendations related to blockchain technology and consumer protection.

If enacted into law, the Act would also require the FTC, within one year after enactment, to issue a public report on:

  • any actions taken by the FTC relating to unfair or deceptive acts or practices in transactions relating to digital tokens;
  • the FTC's other efforts to prevent unfair or deceptive acts or practices relating to digital tokens; and
  • any recommendations by the FTC for legislation that would improve the ability of the FTC and other relevant Federal agencies—
    • to further protect consumers from unfair or deceptive acts or practices in the digital token marketplace; and
    • to promote competition and promote innovation in the global digital token sector.

As this bill moves to the Senate, it should serve as an important reminder that as blockchain technology and digital tokens become ubiquitous in the industry, greater regulatory attention is likely to follow.

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More