Title: Expressing the sense of the House of Representatives that blockchain has incredible potential that must be nurtured through support for research and development and a thoughtful and innovation-friendly regulatory approach.
Policy area: Finance and Financial Sector

Summary:
Expresses the sense of the House of Representatives that blockchain has incredible potential that must be nurtured through support for future research and development and thoughtful and innovation-friendly regulatory approach.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 1108 Introduced in House (IH)]

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115th CONGRESS
  2d Session
H. RES. 1108

 Expressing the sense of the House of Representatives that blockchain 
  has incredible potential that must be nurtured through support for 
   research and development and a thoughtful and innovation-friendly 
                          regulatory approach.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 28, 2018

 Mr. Schweikert (for himself, Mr. Polis, and Mr. Emmer) submitted the 
following resolution; which was referred to the Committee on Energy and 
   Commerce, and in addition to the Committee on Science, Space, and 
Technology, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                               RESOLUTION


 
 Expressing the sense of the House of Representatives that blockchain 
  has incredible potential that must be nurtured through support for 
   research and development and a thoughtful and innovation-friendly 
                          regulatory approach.

Whereas blockchain refers to software that uses a distributed digital ledger of 
        cryptographically signed transactions that are grouped into blocks, each 
        of which--

    (1) is cryptrographically linked to the previous block after validation 
and undergoing a consensus decision;

    (2) when added as a new block, makes any older blocks more difficult to 
modify; and

    (3) is replicated across all copies of the ledger within the relevant 
network, with any conflicts in such blocks resolved automatically using 
established rules;

Whereas blockchain can--

    (1) reduce transaction costs by removing intermediaries;

    (2) increase the transparency of a transaction;

    (3) reshape value chains;

    (4) improve organizational efficiency through trustworthy 
decentralization;

    (5) provide individuals with greater control over personally 
identifiable information through encryption while conducting transparent, 
secure, and efficient transactions;

    (6) accurately capture asset ownership and location throughout the 
lifetime of an asset, protecting owners and improving tax compliance;

    (7) improve public safety and administration by providing a tamper-
proof audit trail;

    (8) reduce the efficacy of cyber-attacks by storing data in numerous 
distributed copies; and

    (9) improve the quality of public services by providing a better 
customer experience and reducing transaction costs;

Whereas because blockchain is an evolving technology, it requires a framework 
        that facilitates innovation, provides for legal certainty, and respects 
        the principle of technology neutrality while also providing protection 
        for consumers, businesses, investors, society, and the environment;
Whereas uncertainty related to the application of horizontal regulations related 
        to data protection and taxation can inhibit the development of 
        blockchain;
Whereas blockchain has the potential to provide widespread, mainstream 
        improvements in digital services;
Whereas because the risks and challenges of blockchain are not yet known, more 
        research and development is necessary;
Whereas blockchain has many potential applications, including--

    (1) production and peer-to-peer exchange of environmentally friendly 
energy and scalability and flexibility for energy plant operators, 
suppliers, and consumers;

    (2) improvements in the transportation sector, including with respect 
to mobility and logistics, registration and administration of vehicles, 
verification of driving distances, smart insurance, and charging of 
electronic vehicles;

    (3) improvements in the healthcare sector, including improved reporting 
on clinical trials, and digital data exchange controlled by patients;

    (4) supply chain improvements, including improved shipment tracking and 
monitoring, transparency, and compliance with legal and ethical standards;

    (5) improvements in education including degree verification, encrypted 
educational certifications, and credit transfer mechanisms; and

    (6) assistance in protecting control of creative content by copyright 
holders and ensuring copyright holders are compensated for use of the 
content;

Whereas blockchain can allow users to control information about themselves 
        shared on the internet, choosing the appropriate degree of transparency 
        for a particular application;
Whereas blockchain can support the development of a new architecture for digital 
        identities;
Whereas because digital identities are imperative to the future, best practices 
        should be established to ensure that data is secure;
Whereas blockchain is protected by cryptography that replaces third-party 
        intermediaries, validating, safeguarding, and preserving transactions;
Whereas public trust in blockchain is improved by the development and use of 
        open-source protocols and platforms;
Whereas a smart contract is a collection of code and data stored on blockchain 
        that enables the automatic execution of the terms of a contract upon the 
        occurrence of a pre-programmed condition;
Whereas a thorough assessment of the potential uses and the legal implications 
        of smart contracts is necessary;
Whereas it is necessary to closely monitor emerging cyber-threats to ensure the 
        reliability of blockchain platforms;
Whereas the appropriate agencies should develop mechanisms to stress test 
        blockchain applications;
Whereas different blockchain processes and applications can benefit from efforts 
        by organizations like the National Institute of Standards and Technology 
        and the International Organization for Standardization in creating 
        common standards to ensure interoperability and efficiency in working 
        with legacy platforms;
Whereas regulation of blockchain should be innovation friendly and should avoid 
        giving preference to a particular technological approach or business 
        model; and
Whereas digital skill training is necessary to help make full use of the 
        potential of blockchain; Now, therefore, be it
    Resolved, That it is the sense of the House of Representatives that 
blockchain has incredible potential that must be nurtured through 
support for future research and development and a thoughtful and 
innovation-friendly regulatory approach.
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