Lawmakers often borrow language from other jurisdictions when creating new laws and regulations. It is far more efficient to borrow and tweak than to create from scratch. But blockchain technology is advancing so quickly, laws are being adopted without standardized terms. This slows down lawmaking, creates confusion amongst policymakers, industry, and consumers, and generally leads to more frustration. The Blockchain Legislative Definitions (BLD) Project (read project report here) is a repository of terms used by state authorities. By focusing on terms, instead of just tracking laws and regulations, the BLD Project provides policymakers a unique and valuable resource to better understand the evolving regulatory landscape.
The Need for Standardized Language
The lack of standardized language in blockchain-related laws presents significant challenges in interpreting and informing better rules. Fragmented terminology can lead to confusion, inconsistencies, and legal uncertainties. The BLD Project highlights disjointed language across various pieces of legislation to aiding in the creation of more effective and cohesive laws. The BLD Project also serves as a tool in the Center’s Government Training program on blockchain for State legislators, agencies, and employees.
Challenges Highlighted by the BLD Project
During the research conducted from May to August 2023, several challenges emerged, underscoring the necessity of the BLD repository:
Fragmented Data and Formats
The data was often fragmented and presented in varying formats, complicating the process of compiling a comprehensive repository.
Sparse Legislation
Legislation specific to blockchain and cryptocurrencies is relatively scarce and often embedded within broader laws, making it difficult to extract relevant information.
Ambiguity and Rapid Changes
The rapidly evolving nature of blockchain technology and related laws adds to the complexity, as regulations frequently undergo updates and revisions.
Inaccessible Information
Valuable data is often behind paywalls or buried within complex legislative websites, hindering access to critical information.
The BLD Repository: A Valuable Resource
Despite these challenges, the BLD repository stands as a robust compilation of legislative information across various domains, including finance, tax, and privacy. For government agencies and policymakers, it serves as a training tool, enabling analysis of regulatory trends, identification of gaps, and formulation of data-driven policy recommendations. By facilitating a deeper understanding of existing regulations and best practices from other jurisdictions, the BLD repository contributes to more informed and effective lawmaking.
Moving Forward: Expanding the BLD Repository
The Center plans to expand and refine the BLD repository to advance knowledge sharing, fuel thoughtful discourse, and shape a robust regulatory framework that harnesses the transformative potential of blockchain technology for social good.
For policymakers and legal professionals, the BLD Project is an indispensable resource that supports the development of coherent and effective blockchain legislation. By engaging with this repository, you can contribute to the advancement of a stable regulatory framework that fosters innovation while ensuring compliance and protecting public interests.
We invite you to explore the BLD repository and join us in this critical endeavor. Your insights, feedback, and contributions are invaluable in refining this tool and promoting informed policy discussions. Please share this post to spread awareness and encourage collaboration among your peers.
Together, we can shape the future of blockchain regulation.
