Without stronger federal action, the United States will continue to fall behind in the rapidly growing digital economy. Just as importantly, it needs to develop clear regulatory principles around blockchain technology to remain competitive. Blockchain's potential to reduce transaction costs, enable instant settlements, and drive financial innovation positions it as a key component of the future economy. Meanwhile, other countries are fiercely competing for the very same blockchain innovators. The U.S. is losing these startups and high-tech jobs abroad due to regulatory uncertainty.
Moreover, there is the possibility using blockchain technology that transaction costs could be nearly eliminated, making even larger impacts across industries. By cutting out the middlemen and reducing bureaucratic hurdles, blockchain technology can help simplify transactions, saving time and money.
Instant settlements Another major benefit of blockchain is instant settlements. Traditional finance has a lot of times ways to settle things, but through blockchain you can settle those in seconds or minutes, which enhances liquidity and efficiency.
Second, blockchain technology is clearly a powerful catalyst for financial innovation, creating tremendous opportunities for the development of new products and services. Its decentralized and transparent nature fosters experimentation and breeding of new solutions. By embracing blockchain, the U.S. has an opportunity to be proactive in modernizing its financial infrastructure.
Sixty-five million Americans own or use cryptocurrency, a clear signal that blockchain-based technologies are already capturing the public imagination. The extensive participation highlights the need for clear and consistently applied rules of the road that protect consumers while encouraging innovation to continue in responsible ways.
Other countries such as Singapore, the UAE, Switzerland, Hong Kong, and Germany have gone all in on promoting blockchain innovation. These countries are pulling blockchain companies away from the U.S. with unambiguous policies and certainty. They’re providing investment incentives, making it a competitive race for this new technology.
Without a clearer framework regulating blockchain, the U.S. is at a major competitive disadvantage in this new technology and industry. The lack of clear rules is driving blockchain startups and high-tech jobs overseas, hindering the country's ability to capitalize on the technology's potential.
Either way, Michigan’s congressional delegation has the unique opportunity to lead on this issue and be at the forefront of the blockchain revolution. If the appropriate policy framework and community support are provided, Michigan is well poised to be ground zero for blockchain innovation and surrounding sectors’ investment and talent.
States such as Michigan are already betting big on blockchain’s future, but their head start is jeopardized without support from the federal government. A more thoughtfully coordinated approach between state and federal governments is key. Together, this partnership will help to continue the responsible development and application of blockchain technology.
That’s why enacting the Financial Innovation and Technology for the 21st Century Act (FIT21) is so important. It will play a critical role in maintaining America’s leadership in financial technology. This legislation would establish a predictable regulatory environment for blockchain, while making sure that businesses have the ability to succeed here in the U.S.
Blockchain technology can help ensure that we don’t lose these startups and high-tech jobs to countries like Canada, Singapore and China. This ecosystem approach can lead to a thriving blockchain economy and position the U.S. as the global leader in this transformative technology, while boosting economic prosperity and innovation.
