Blockchain in the Crosshairs: How Congressional Privacy Proposals Threaten Innovation

Vignesh Karunanidhi
Blockchain in the Crosshairs: How Congressional Privacy Proposals Threaten Innovation
Source: TechSpot

Blockchain has attained global adoption over the years. The remarkable technology has also made its way to the incorporation of various realms and even government offices. Even though the technology has been around for a few years, lawmakers are constantly failing to identify its true potential and true nature.

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Congress is looking to consider comprehensive data privacy legislation. However, the worrying factor is that these laws can likely tamper with the growth of decentralized technologies like blockchains.

Source: CFO Magazine

Blockchain growth could be affected unless revisions made

The 118th Congress has conducted numerous hearings on data privacy, and it is imperative for policymakers to weigh the potential consequences of their proposals on technological advancement.

One of the recent data privacy bills, the American Data Privacy Protection Act (ADPPA), basically controls how companies collect, process, and transfer user data. Even though the bill is a mature one that is envisioned for consumer power, it fails to take into consideration blockchain technology.

Also read: Texas Takes a Stand for Bitcoin Rights with Introduction of New Bill

Source: McKinsey

The difficulty with similar bills is that they are well adapted to centralized companies and not decentralized frameworks. However, there is a way to minimize the one-size-fits-all approach. This can be attained through a sectoral approach where lawmakers can frame the laws depending on different situations. This could potentially provide room for blockchain to grow.