With more than 1.5 million Pennsylvanians owning cryptocurrencies, the state should develop clear regulatory guidelines for blockchain technology and digital assets, said State Rep. Torren Ecker (R-193), who plans to introduce legislation that would provide such certainty.
“Without defined rules, Pennsylvania risks falling behind other states and countries actively supporting blockchain development,” Ecker wrote in a May 28 editorial for the House Republican Caucus. “Ambiguity in current regulations hampers entrepreneurs, developers, and investors from fully embracing blockchain’s potential.”
Consumers also remain vulnerable as they’re uncertain about their rights and protections, he added.
To address the challenge, Ecker said he plans to introduce the Blockchain Basics Act, which would establish clear guidelines for blockchain technology — which are databases that maintain a growing list of records, called blocks — and cryptocurrency activities, helping to foster innovation, protect consumers, and maintain the state’s competitive edge.
The bill will mirror the federal Financial Innovation and Technology (FIT21) Act, which gained bipartisan support in the U.S. House of Representatives last year before stalling in the U.S. Senate, said Ecker.
“The Blockchain Basics Act ensures practical benefits for both citizens and businesses,” he wrote.
Specifically, Ecker said his bill would enable individuals and businesses to accept digital assets as payment for goods and services, securely store digital assets, and participate freely in blockchain activities without needing special licenses.
“This clarity and accessibility will empower Pennsylvanians to safely and confidently engage in the digital economy,” wrote the lawmaker.
Ecker thinks that establishing clear regulatory standards in the state will attract investment, encourage innovation, and position the commonwealth as a global leader in blockchain technology.
“Businesses and innovators thrive in environments with predictable and fair regulations,” according to his post. “Pennsylvania has a unique opportunity to set a nationwide example by proactively addressing regulatory uncertainty. Now is the time to act decisively.”
At press time, Ecker had not officially introduced the Blockchain Basics Act, according to the Pennsylvania House of Representatives’ legislative site.