Three key bills have been rescheduled for a hearing on July 13 that will address blockchain, digital privacy, and digital innovation within government.
The Massachusetts Senate announced on July 5 that it will combine multiple hearings on blockchain, digital assets, and digital privacy into a single session on July 13, highlighting the growing importance of these topics in the state.
During the four-hour hearing, the “Committee on Advanced Information Technology, Internet and Cybersecurity” will discuss notable bills, each of which has a significant impact on the state’s approach to digital technology, blockchain and cryptocurrency.
Launch of a pilot program for digital innovation in the public sector
The proposed laws include “An Act Creating a Pilot Program to Explore Digital Innovations in Government.” The bill proposes a groundbreaking pilot program to be implemented by the Massachusetts Technology Partnership to explore the use of blockchain technology to securely store and access real estate records.
In an era of digital transformation and increasing global regulation of cryptocurrencies in the United States, the proposed legislation represents a significant step forward in incorporating blockchain into government operations.
Establishment of a dedicated blockchain and cryptocurrency committee
In addition, an important bill being considered by the Joint Session is the “Bill to Establish a Special Committee on Blockchain and Cryptocurrency.” The bill was introduced on January 19 and aims to explore the impact and potential uses of blockchain technology within the government framework.
With input from a wide range of stakeholders, the commission will be charged with studying the feasibility of using blockchain technology in state and local government, the potential impact on state revenues due to the proliferation of cryptocurrencies, and recommendations for government agencies to accept cryptocurrencies as a method of payment, among other considerations.
Additionally, the committee is reviewing whether existing definitions of blockchain are adequate in the context of enforceable laws, the desirability of government and business consultation (focusing on industries such as cannabis retail stores), and the potential need to regulate energy consumption associated with blockchain operations.
The committee will also be tasked with identifying best practices for leveraging blockchain technology for the benefit of the Commonwealth, determining which state entities should be responsible for enforcing blockchain regulations, and other blockchain-related topics as recommended by the committee.
Under the terms of the bill, the commission is to report its findings within one year of its creation to foster a positive environment for blockchain technology in Massachusetts. The report will provide a comprehensive master plan of recommendations designed to promote the appropriate expansion of blockchain technology in the Commonwealth.
Protect private online communications and activities
The last bill on the agenda is the "Protecting Private Electronic Communications, Browsing, and Other Activities Act." The legislation seeks to provide strong protections for private electronic communications and browsing activities from government intrusion.
For example, it proposes making it illegal for government agencies, law enforcement agencies or public officials to obtain reverse location or reverse keyword requests, which can violate personal privacy by often forcing the disclosure of anonymous individuals’ records or tracking of unidentified electronic devices.
The bill also outlines strict rules for cell site simulators and devices used to locate or track electronic devices, limiting their use to specific scenarios and ensuring strict protections for the privacy of non-targets.
The combination of these bills represents a significant step forward in Massachusetts’ approach to regulating digital technology, particularly blockchain and cryptocurrency. By promoting innovation and protecting citizens’ privacy, the state seeks to strike a balance between leveraging emerging technologies and protecting individual rights.
While the outcome of these hearings has yet to be determined, the potential for precedent-setting decisions is clear. The General Assembly’s discussions and decisions could have significant implications for Massachusetts and could set a benchmark for blockchain and cryptocurrency regulation nationwide.
