US Congress Agency Suggests Key Policy Options For Blockchains

As requested by the United States Congress, the U.S Government Accountability Office (GAO) has laid out four policy options that should help policymakers implement blockchain technology. These policies shall also aid in improving opportunities and restricting the number of challenges of doing so.

GAO also acknowledged the potential for blockchain technology to improve a variety of both financial and non-financial applications, despite the potential to introduce new challenges while attempting to resolve issues native to the traditional financial system, according to their assessment released on the 24th of March.

As per the assessment, “A blockchain might both increase the speed of a title registry system and lower the cost of title insurance by making title registration simpler and more trustworthy.”

According to GAO, challenges around legal and regulatory uncertainty, as well as regulatory arbitrage, can be addressed through the implementation of an oversight policy. In addition, the GAO also recommended educating policymakers of the benefits and costs of incorporating various blockchain technologies.

The remaining policy option recommended by GAO to ease the decision-making process involved in mainstream blockchain implementation is establishing internationally recognized standards around the interoperability and data security of blockchain technology.

While policymakers such as federal agencies, Congress, academic and research institutions, state and local governments, and the broader industry have the right to maintain the status quo, the four policy options mentioned in the GAO’s assessment could help policymakers reach a quicker consensus on how to implement blockchain technologies.