US lawmaker calls for clear regulations of blockchain industry

Getting your Trinity Audio player ready...

A U.S. lawmaker believes that blockchain technology and cryptocurrencies are the key to global competitiveness and wants the country to implement enabling regulations for the industry. Warren Davidson urged the U.S. government not to allow fear and uncertainty to dictate its stand when it came to blockchain. He expressed his belief that blockchain could especially benefit manufacturers, creating more jobs at a time when automation has robbed many of their jobs.

In an op-ed published by the Wall Street Journal, Davidson pointed out that the U.S. has lagged behind its peers in blockchain integration due to its slow progress in formulating regulations. As a result, blockchain companies are relocating to Europe and Asia, where the regulators have been welcoming, and the U.S. will feel the effects of this migrations in due time.

He stated, “American entrepreneurs dominate the global economy because the take risks to innovate existing products and services. If we allow fear to stifle their efforts, we risk surrendering global superiority and sacrificing improvements in quality of living—just to preserve the status quo.”

Davidson, who is a member of the House of Representatives for Ohio’s 8th congressional district, was responding to a WSJ report that claimed Americans were losing their jobs to automation.

In his op-ed, Davidson stated that blockchain is set to benefit the American people, but the regulators have to play their part for this to happen. He believes that while some projects like Libra must be treated with caution, he finds his colleagues’ fear of blockchain and cryptocurrency ‘shortsighted.’

In additional comments to Cointelegraph, he explained why he believes blockchain is the future, stating, “From improving capital formation, supply chain logistics, reinventing shop floor operations, product identification and traceability, U.S. manufacturers could stand to harness the power of blockchain to unleash incredible innovation and manufacturing growth.”

Davidson’s plea to his fellow lawmakers comes at a time when other global powers are delving into blockchain. Xi Jinping’s blockchain push has grabbed the headlines, and with China also working on a state-backed digital currency, the U.S. has a long way to go if it’s to catch up with its peers.