House Subcommittee Considers Recent Developments in Digital Currency and Blockchain Technology (with Delta Strategy Group Summary)

The House Subcommittee on Commerce, Manufacturing and Trade explored developments in "disruptive" digital currencies and blockchain technology.

According to a hearing summary prepared by Delta Strategy Group: (i) many witnesses indicated that enhanced cybersecurity protections and proper disclosure procedures will make digital currencies and blockchain technology safer for adoption and consumer use; (ii) some witnesses said that blockchain technology will make financial transactions faster, safer and cheaper (also, they stated that this technology will increase access to the financial system and will make micro and macro transactions more efficient); and (iii) all witnesses agreed that regulators must not hinder innovation, while stressing the need for greater customer protection.

The Executive Director of Coin Center, Jerry Brito, stated that Bitcoin's greatest challenge is regulatory uncertainty:

"If we think back again to the early Internet, it was not until the government made it clear that it would pursue a light­-touch regulatory approach that Internet innovation really took off. Bitcoin today is in need of a similar commitment from government."

Hearing witnesses included:

• John A. Beccia III, General Counsel and Chief Compliance Officer, Circle Internet Financial (on behalf of the Electronic Transactions Association);

• Jerry Brito, Executive Director, Coin Center;

• Jerry Cuomo, Vice President, Blockchain Technologies, IBM;

• Matthew Roszak, Chairman, Chamber of Digital Commerce, and Co-Founder, Bloq;

• Paul Snow, Chief Architect, Co-Founder, Factom;

• Juan Suarez, Counsel, Coinbase; and

• Dana Syracuse, Counsel, BuckleySandler LLP.