Bill Text: HI SR26 | 2022 | Regular Session | Introduced

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Bill Title: Requesting The Department Of Commerce And Consumer Affairs To Create A Task Force To Study The Approval Of Blockchain Technology And Cryptocurrency In The State.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2022-03-22 - The committee on EET deferred the measure. [SR26 Detail]

Download: Hawaii-2022-SR26-Introduced.html

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THE SENATE	S.R. NO.	26
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII

SENATE RESOLUTION

 

 

requesting the department of commerce and consumer affairs to create a task force to study the APPROVAL of blockchain technology and cryptocurrency in the state.

 

 

     WHEREAS, there is a vast potential for blockchain technology to drastically change and improve the State's public sector operations and private industry capabilities; and

 

     WHEREAS, blockchain is a decentralized distributed ledger technology that allows the creation, validation, and encrypted transaction of digital assets to happen and be recorded in an incorruptible way; and

 

     WHEREAS, blockchain allows peer-to-peer and business-to-business transactions to be completed without the need for a third party, often a bank or a financial intermediary such as the Depository Trust and Clearing Corporation, effectively reducing transaction costs; and

 

     WHEREAS, recording transactions through blockchain technology virtually eliminates human error and protects data from possible tampering; and

 

     WHEREAS, the global blockchain market is expected to be worth $42,000,000,000 by 2024; the central banks of the major western countries are currently developing blockchain-based digital currencies; and ninety percent of major North American and European banks are exploring blockchain solutions; and

 

     WHEREAS, the distributed ledger format utilized by blockchain technology can be leveraged to support an array of government and public-sector applications, including land registration, identity management, supply chain traceability, health care, corporate registration, taxation, voting, digital currency and payments, and legal entities management; and

 

     WHEREAS, blockchain technology can also protect data; streamline processes; and reduce fraud, waste, and abuse while simultaneously increasing public trust and governmental accountability; and

 

     WHEREAS, a hyperconnected government that utilizes blockchain technology would reduce corruption and enable unprecedented transparency and efficiency where services are tailored to an individual's needs; and

 

     WHEREAS, the adoption of blockchain technology requires an educated and thorough approach so that the implementation of blockchain technology in the State does not impede innovation and growth; and

 

     WHEREAS, Hawaii also has yet to determine whether or how to regulate and provide oversight to the cryptocurrency industry in the State; now, therefore,

 

     BE IT RESOLVED by the Senate of the Thirty-first Legislature of the State of Hawaii, Regular Session of 2022, that the Department of Commerce and Consumer Affairs is requested to create a task force to study the approval of blockchain technology and cryptocurrency in the State; and

 

     BE IT FURTHER RESOLVED that the task force is requested to consist of the following members:

 

     (1)  A representative from the Department of Commerce and Consumer Affairs' Division of Financial Institutions, to serve as chair of the task force;

 

     (2)  The Director of Finance or the Director's designee;

 

     (3)  Three members of the Senate to be appointed by the President of the Senate; provided that not more than two of the members are of the same political party;

 

     (4)  Three members of the House of Representatives to be appointed by the Speaker of the House of Representatives; provided that not more than two of the members are of the same political party;

 

     (5)  A professor from the University of Hawaii with expertise regarding blockchain;

 

     (6)  A president or chief financial officer of a Hawaii-based cryptocurrency company;

 

     (7)  A representative from a Hawaii-based bank or financial institution;

 

     (8)  A representative of a Hawaii-based cryptocurrency exchange;

 

     (9)  A representative of a Hawaii-based company with a focus on non-transactional blockchains;

 

    (10)  A representative of a Hawaii-based blockchain payments solution company;

 

    (11)  A representative of a company with a business model that uses blockchain for non-cryptocurrency transaction purposes;

 

    (12)  A representative of a blockchain or cryptocurrency association; and

 

    (13)  A member of the public; and

 

     BE IT FURTHER RESOLVED that the task force is requested to:

 

     (1)  Review data on the scope of blockchain and cryptocurrency use throughout the country;

 

     (2)  Review other aspects of the blockchain and cryptocurrency industry, including but not limited to the development of a plan to expand blockchain adoption in both the private and public sectors; and

 

     (3)  Compile an overview of potential legislation; and

 

     BE IT FURTHER RESOLVED that the task force is requested to submit a report of its findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2023, regarding the approval of blockchain technology and cryptocurrency in the State; and

 

     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Director of Commerce and Consumer Affairs, Director of Finance, Commissioner of Financial Institutions, and President of the University of Hawaii System.

 

 

 

	OFFERED BY:	_____________________________

Report Title: 

Blockchain; Cryptocurrency; Study; Task Force