Month: July 2018

Token Alliance Issues First Edition of Comprehensive Set of Guidelines for the Token Ecosystem

by Chamber

Token Alliance Issues First Edition of Comprehensive Set of Guidelines for the Token Ecosystem

Chamber of Digital Commerce Initiative Releases Report to Provide Policymakers & Practitioners Tools to Navigate Token Landscape  

Washington, D.C., July 30, 2018 – The Chamber of Digital Commerce’s Token Alliance today released the first edition of a comprehensive set of guidelines to help shape the responsible growth of the token and initial coin offering (ICO) markets. “Understanding Digital Tokens: Market Overviews & Guidelines for Policymakers & Practitioners” is a collaborative report to be used as a resource among industry innovators, investors and policymakers. This first installment addresses so-called “utility tokens,” an aspect of the token economy fighting to be recognized.

“These industry-developed principles are an important tool for responsible growth and smart regulation that strikes the right balance between protecting investors while allowing for innovation in this new technological frontier,” said Paul Atkins, CEO of Patomak Global Partners and former SEC Commissioner. “We think it is important to explain the unique attributes of blockchain-based digital assets, which are not all strictly investment based, and provide guidance to consumers, regulators and the industry.”

The report features three parts:

  • Regulatory Overview: A comprehensive understanding of the regulatory environment and securities law as it relates to tokens in the United States, Canada, Australia, the United Kingdom, and Gibraltar.
  • Principles and Guidelines for Utility Tokens: Industry developed principles for token sponsors and trading platforms to promote sound business practices and minimize unintentional regulatory risk.
  • Token Economic Landscape: An in-depth look into the growth and evolution of the global token landscape, with economic data and statistics.

“The Token Alliance is taking a positive and proactive approach towards working with regulators, which could ultimately create unprecedented opportunities for investment, innovation and jobs,” said Dr. James Newsome, Founding Partner of Delta Strategy Group, former Chairman of the CFTC and Co-Chair of the Token Alliance. “This report will serve as an important resource for policymakers seeking to educate themselves and engage in meaningful industry dialogue.”

According to the report, in 2017, startups raised more than $7.3 billion via token issuances, up from $100 million in 2016 – the industry is expected to grow dramatically as cryptocurrency adoption becomes more prevalent and reaches the mainstream.

“We applaud our members who have worked together to form this critical stepping stone on responsible oversight and governance for the token economy,” said Perianne Boring, Founder and President of the Chamber of Digital Commerce. “It is a strong step towards self governance and a powerful tool to help builders and investors create a responsible and successful industry.”

The Token Alliance is an initiative formed by the Chamber of Digital Commerce with more than 350 global participants, including blockchain and token experts, technologists, economists, former regulators, and practitioners from over 20 law firms.

Built on an open-source foundation, the Token Alliance guidelines are based on the current regulatory state of affairs and will likely evolve over time. This is just a first step – the Token Alliance anticipates additions to these guidelines to address other important aspects of the token economy.  All those dedicated to supporting and growing this thriving community are invited to join the conversation and provide feedback to this report on GitHub.

About the Chamber of Digital Commerce

The Chamber of Digital Commerce is the world’s largest trade association representing the digital asset and blockchain industry. Headquartered in Washington, D.C., the Chamber is the founder of the Token Alliance, Blockchain Intellectual Property Council, Smart Contracts Alliance, Blockchain Alliance, Global Blockchain Forum and many other key industry initiatives.  For more information, please visit: DigitalChamber.org, and follow us on: @ChamberDigital.

Media Contacts:

Jon Temerlies

+1-413-241-0404

chamber@edelman.com

Marie Knowles

+1-202-422-2589

marie@digitalchamber.org

 

Introducing: “Understanding Digital Tokens: Market Overviews & Guidelines for Policymakers & Practitioners.”

by Chamber

Introducing “Understanding Digital Tokens: Market Overviews and Proposed Guidelines for Policymakers and Practitioners”

Introducing: “Understanding Digital Tokens: Market Overviews & Guidelines for Policymakers & Practitioners.”
An Initial Step Toward Self-Regulation

By Perianne Boring and Amy Davine Kim

One of the most striking developments in the blockchain ecosystem is the emergence of token technology platforms, their transformative potential, and the multi-billion dollars in capital they generate.  This is just one unique facet among the many transformative and positive possibilities that blockchain technology represents for government, businesses, and consumers.  Blockchain technology will improve many aspects of our lives, much of which will be fueled through the distribution and use of digital tokens.

Yet, the versatility of tokens has proved a challenge for U.S. regulators. The sheer number of unique characteristics that tokens may represent means that much work remains to be done to understand their potential and functionality. A digital token can be a security, a currency, a commodity, property, or even a hybrid of these characteristics. Some have even suggested that a token may initially represent one functionality, such as a security, and then shift and represent another, such as a commodity. When it comes to the regulatory treatment of a token, this very versatility can be baffling at best.  The fact that other countries are recognizing the potential of this technology, and developing regulatory systems to welcome it, renders the problem more urgent.

Today, we’re pleased to announce that the Chamber of Digital Commerce’s Token Alliance is releasing the first installment of a comprehensive set of token and ICO guidelines in its report “Understanding Digital Tokens: Market Overviews & Guidelines for Policymakers & Practitioners.” Under the leadership of former SEC commissioner Paul Atkins and former CFTC Commissioner and Chair James Newsome, the project brings together 350+ industry technologists, economists, executives, lawyers and others worldwide within the Token Alliance. The project addresses some of the ideas that are quickly coming into focus for the blockchain industry — including the notion of self-governance for token sponsors and token trading platforms.

This report now equips our industry with the first set of proper tools to have meaningful, informed, and actionable dialogue to support a well-informed approach for this transformative industry.

Specifically, this installment of the project:

  • Provides guidelines for Token Sponsors and Token Trading Platforms for the generation and distribution of digital tokens to enable responsible governance and help to minimize fraud in the industry.
  • Contains overviews of the laws impacting digital tokens from five countries (with more to be added in later editions).
  • Provides a comprehensive market overview and trends analysis of the token economy.

We’re pleased to share with you today the most widely subscribed token governance project ever developed in the industry, designed to be the first in a series and a resource both for industry and governments.

Comments or Suggestions? 

Built on an open-source foundation, the Token Alliance guidelines are based on the current regulatory state of affairs and will likely evolve over time. This is just a first step – we anticipate additions to these guidelines to address other important aspects of the token economy.  All those dedicated to supporting and growing this thriving community, are invited to join the conversation and provide feedback to this white paper on GitHub.

The Chamber is Turning 4!

by Chamber

The Chamber is Turning 4!

 

This summer, the Chamber of Digital Commerce turns four as the world’s largest trade association representing more than 200 of the most exciting and inventive companies in the digital asset and blockchain industry. We’re proud of the work we’ve accomplished, the relationships we’ve created, and the overall growth and transformation we’ve seen across the blockchain ecosystem.

In July 2014, when we first opened our doors, the sentiment surrounding bitcoin and blockchain technology was that of fear, anxiety, and skepticism. At the time, few in Washington, D.C. understood the key functions and benefits of blockchain. And it was clear that a strong and unified voice was required to move the industry forward.

 

The following are 10 top accomplishments since inception:

 

July 19, 2014: Launched the Chamber of Digital Commerce

The Chamber launched with 15 founding members, becoming the first and only trade association in Washington, DC solely focused on representing the blockchain technology ecosystem. The launch took place just two days after New York issued its controversial “BitLicense” proposal, solidifying the importance of having full-time, policy advocates working with government.

 

Hosted Congressional Blockchain Education Day

The Chamber has hosted two Congressional “fly-ins” to date where more than 70 Chamber members held meetings with over 100 Congressional offices to share the promise and realities of blockchain technology.

CoinDesk: Mr. Blockchain Goes to Washington

 

October 22, 2015: Launched the Blockchain Alliance

The Blockchain Alliance is a public-private forum to address public safety concerns about digital currencies and combat criminal activity on the blockchain. The Blockchain Alliance is credited for coordinating with more than 100 law enforcement agencies and training their agents about the blockchain. Many thanks to Chamber Advisory Board member Jason Weinstein for spearheading this initiative.

Reuters: Group formed to help with U.S. digital currency probes

March 3, 2016: Hosted the inaugural DC Blockchain Summit

The Chamber hosted the inaugural DC Blockchain Summit in conjunction with Georgetown University’s Center for Financial Markets and Policy. Since its inception, the Summit has continued to grow its attendance and influence as the industry’s premier policy event in Washington, DC every year for the past 4 years.

 

March 16, 2016: Testified before the U.S. Congress, resulting in the passage of House Resolution 835

The Chamber’s Chairman, Matthew Roszak, testified before the U.S. House of Representatives Energy and Commerce Committee in a hearing entitled “Disrupter Series: Digital Currency and Blockchain.” This hearing led to the passage of Res 836, establishing supportive language for blockchain technology in the Congressional Record.

“Whereas blockchain technology with the appropriate protections has the potential to fundamentally change the manner in which trust and security are established in online transactions through various potential applications in sectors including financial services, payments, health care, energy, property management, and intellectual property management….”  : Now, therefore, be it Resolved, 

 

June 3, 2016: Facilitated blockchain discussions with Federal Reserve Chair Janet Yellen

The Chamber helped organize blockchain training and education for more than 90 central bank heads at the Federal Reserve’s annual meeting with The World Bank and the International Monetary Fund. The event included an opportunity for Chamber members to hear private remarks from Chair Janet Yellen. Prior to this day, Chair Yellen had never spoken publicly about blockchain and we were the first to receive her thoughts!

Wall Street Journal: Blockchain Technology Gets a Hearing Inside the Fed’s Headquarters

 

July 7, 2016: Supported North Carolina in the passage of the nation’s first “blockchain-friendly” bill.

North Carolina Governor Pat McCrory’s signature on marked a historical moment for state regulation of blockchain technology. The bill’s passage was the result of 16+ months of deliberations between the North Carolina Commissioner of Banks, the General Assembly and the Chamber. The Act updates the state’s existing laws to include a defined “virtual currency” term, and clarifies which activity using virtual currency triggers licensure. The bill ensures virtual currency miners and blockchain software providers, including smart contracts platforms, colored coins, smart property, multi-signature software, and non-hosted, non-custodial wallets, will not require a license.

 

October 1-5, 2017: Led first-ever Certified Trade Mission Supporting Blockchain

The trade mission included a delegation of 15 Chamber members and was coordinated in collaboration with the U.S. Department of Commerce. Visiting key stakeholders in the United Arab Emirates, the mission was prompted in part by the “Dubai Blockchain Strategy,” a vision to make Dubai the first blockchain-powered government in the world by 2020.

Chamber leadership meets with Rashed Al Balooshi, CEO, Abu Dhabi Securities Exchange; the Honorable Barbara Leaf, US Ambassador to the UAE; Fatima Al Jaber, Board Member, Al Jaber Group

 

December 19, 2017: Launched The Foundation of the Chamber of Digital Commerce.

The Foundation is a non-profit charitable organization that sponsors and supports research and educational activities to promote the acceptance and use of digital assets and blockchain technologies.

July 31, 2018: Reached 200 Members!

The Chamber of Digital Commerce has proudly retained a 100 percent growth rate every year since inception. Today, we are the largest blockchain trade organization in the world!

 

Chamber Welcomes New Executive Committee Members

by Chamber

Chamber Welcomes New Executive Committee Members

Five leading financial services and blockchain technology innovation firms – BitPay,  Civic, DocuSign, Nexus and SALT – have joined the Chamber’s Executive Committee and play an integral role in helping to shape and drive the mission of the organization.

“These  innovative  companies are  reimagining financial  services and redefining  the way consumers and businesses  participate in the emerging blockchain-based  economy. We welcome their perspective and expertise  as we continue in our work to advocate for the power  and future of blockchain,” said Perianne Boring, founder and president, Chamber of Digital Commerce.

Read the press release

Chamber of Digital Commerce Announces New Executive Committee Members

by Chamber

Newsroom

Chamber of Digital Commerce Announces
New Executive Committee Members

Washington, D.C., July 16, 2018 — The Chamber of Digital Commerce, the world’s leading blockchain trade association, announced today the addition of new members to its Executive Committee. Five leading financial services and blockchain technology innovation firms – BitPay, Civic, DocuSign, Nexus and SALT – will play an integral role in helping to shape and drive the mission of the organization.

“We’re pleased to welcome the new member companies to the Chamber,” said Perianne Boring, founder and president, Chamber of Digital Commerce. “These innovative companies are reimagining financial services and redefining the way consumers and businesses participate in the emerging blockchain-based economy. We welcome their perspective and expertise as we continue in our work to advocate for the power and future of blockchain.”

Statements from New Members

BitPay

“As one of the oldest cryptocurrency companies, BitPay’s goal is to make it easy for businesses to accept cryptocurrency,” said Stephen Pair, chief executive officer, BitPay. “We started in 2011 with a merchant processing solution and today offer a cross-border payment solution for businesses who need to send and receive international payments directly and more economically than traditional bank wires.  As a Chamber member, we want to support efforts to promote acceptance and education of cryptocurrency benefits to businesses globally.”

Civic

“Civic is solving one of the biggest challenges in our modern world: how do you securely prove your identity for both online and physical services? Personal data is increasingly vulnerable to data breaches, and many people still lack access to basic identification documents. Our digital identity ecosystem expands access to identity verification, empowering more businesses and individuals to interact efficiency, safely, and securely in the world,” Vinny Lingham, CEO and co-founder, Civic. “As Chamber of Digital Commerce members, we look forward to continue working with the community to break down adoption barriers, shape the emerging blockchain industry, and preserve incentives for innovation.”

DocuSign

“As longstanding proponents of legislation and regulation that put proper guardrails in place to speed digital business, DocuSign is pleased to unite forces with the Chamber of Digital Commerce to work with Washington around digital assets and blockchain-based technologies,” said Reggie Davis, general counsel, DocuSign. “We look forward to bringing our 15 years of leadership in electronic signature and our expertise on modernizing the System of Agreement to this promising arena.”

Nexus

“Nexus is committed to improving the world by connecting people through advanced distributed ledger technology and peer to peer networking. By collaborating with other organizations as part of the Chamber of Digital Commerce, Nexus can help aid the collective mission of supporting regulatory structure, through advancing education and innovation in the blockchain space,” said Ajay Ahuja, chief executive officer, The Nexus Embassy. “It’s exciting to see so many organizations come together to grow this industry and promote the principles of decentralization, transparency and empowerment.”

SALT

“SALT Blockchain Financial Technology launched the first platform to offer membership-based borrowing, allowing people to leverage cryptocurrencies for cash loans while simultaneously giving financial institutions and investors a way to become indirectly involved with this new asset class,” said Shawn Owen, president & CEO, SALT Blockchain Financial Technology. “We are honored to join the list of top tier businesses supporting these important industry efforts. In the coming months and years we must come together to advance informed legislation driving innovation while protecting consumer and investor interests.”

About the Chamber of Digital Commerce

The Chamber of Digital Commerce is the world’s largest trade association representing the digital asset and blockchain industry. Headquartered in Washington, D.C., the Chamber is the founder of the Token Alliance, Blockchain Intellectual Property Council, Smart Contracts Alliance, Blockchain Alliance, Global Blockchain Forum and many other key industry initiatives.  For more information, please visit: DigitalChamber.org, and follow us on: @ChamberDigital.

Chamber Media Contact:

Marie Knowles
+1 202.656.8037
marie@digitalchamber.org

Top Policy Priorities at the Chamber

by Chamber

Top 5 Policy Priorities at the Chamber

As the saying goes “blockchain never sleeps.” It’s the Chamber’s mission to promote the acceptance and use of digital assets and blockchain-based technologies. We do this tirelessly through education, advocacy, and working closely with policymakers, regulatory agencies and industry.  Following are the top five priorities that keep the Chamber team up at night:

 

  • Recognition that blockchain will transform the way we record, track, and transfer anything of value.  Just as the internet transformed the way we share information with each other, with millions of applications running on it to enable such activity, so will blockchain technology revolutionize the way we account for ownership, provenance, and transfers of value or property.  Many other nations have realized this potential – including the United Kingdom, the European Union, Singapore, the United Arab Emirates, and central banks worldwide, to name just a few.  These are significant financial centers – the United States is at risk of falling behind when it focuses solely on enforcement actions against wrongdoers without also supporting innovation that will benefit government, industry, and citizens.  The U.S. government needs a senior official to recognize the importance of this innovation and create policies to enable it to flourish, including incorporating the technology into government programs such as identity management (e.g., passports and visas), social programs (e.g., social security, welfare, and similar programs), and regulatory oversight (by acting as a “node” on a network) – to name a few.

 

  • Streamline Regulatory Oversight.  The virtual currency industry and token trading platforms are subject to a patchwork of state-by-state regulation of money transmitters, that also include federal regulatory oversight through FinCEN and the CFTC, among others.  This state-by-state approach currently does not even allow a company to obtain money transmitter licenses in every state – about a dozen states have not licensed any virtual currency business.   The NY BitLicense, a law specific to virtual currency business activity, just reached a milestone of only eight licenses granted, three years after the law was in the books.  This framework creates significant legal expense and impediments to operations to seek approval in 49 states plus several territories, while still being subject to federal laws.  The industry needs one solution to oversee this industry, not dozens.

 

  • Tokens: Tokens offer an incredible expansion of the way we think of assets by digitizing those assets and offering ways to transfer them in a secure and efficient way. Token sales, also referred to as “Initial Coin Offerings” (ICOs), can raise capital for new companies, or other prospective users a means of participating on a platform. In 2018 alone, there have been more than 270 token sales raising more than $5.7 billion. The Chamber supports policies that protect purchasers and facilitate appropriate disclosures, while promoting innovation through token issuances.

 

  • Anti-Money Laundering and Terrorist Finance: Like any industry and any currency, virtual currency and blockchain technology can be used for incredibly important purposes. However, in some cases, they’re used to engage in unlawful activity. The Chamber believes in modernizing U.S. anti-money laundering (AML) laws while allowing the agencies responsible for enforcement the flexibility to address risks as and when they arise. We also co-founded the Blockchain Alliance to facilitate a dialogue with and serve as a collaborative resource among law enforcement and the blockchain industry.

 

  • Smart Contracts: Blockchain-based computer codes can simplify the way we conduct business, pay bills, and ratify contracts, for example. We at the Chamber are working to promote the use of smart contracts in educating legislators that existing U.S. law – the Electronic Signatures in Global and National Commerce Act (“ESIGN Act”) and the Uniform Electronic Transaction Act (“UETA”) — already provide sufficient legal basis for smart contracts executing terms of a legal contract.  Efforts by states to amend their state UETA laws will not only introduce another confusing patchwork of laws addressing this technology, but risk legal action through the preemptive force of the ESIGN Act.

 

  • Tax:  From paying a simple bill, purchasing a flight or consumer goods, virtual currencies are becoming more commonly used. In 2014, however, the IRS decided it would treat convertible virtual currency as property. That means that every simple transaction (such as buying a cup of coffee) is not only subject to sales tax, but also the calculation of capital gain/loss and investment income tax (with cumbersome reporting requirements included!). This treatment hinders the use of virtual currencies as a method of payment, which in turn, prevents their ability to reach a wide spectrum of potential participants in the financial system. The Chamber supports policies that treat virtual currencies fairly – as an alternative currency rather than as property subject to capital gain or investment income tax.

 

  • Accounting: Businesses that recognize the potential of blockchain technology cannot hold these assets and record it on their books without sorting out the appropriate accounting treatment.  Currently, no accounting standards exist to guide a business on the appropriate treatment of these assets – leaving businesses and their accountants to guess at a reasonable method and issue qualified opinions.   Such opinions can impact a company’s ability to obtain funding or loans, among others.   The Chamber believes that the Federal Accounting Standards Board (FASB) should address the accounting standards for digital currencies.