Author: Chamber

Big News for Blockchain Policy: U.S. Congressmen Support Blockchain Innovation & Regulatory Clarity

by Chamber

Big News for Blockchain Policy:
U.S. Congressmen Support Blockchain Innovation & Regulatory Clarity

October 3, 2018

Big News for Blockchain Policy: U.S. Congressmen Support Blockchain Innovation & Regulatory Clarity

By Chamber of Digital Commerce

Last week garnered unprecedented support for blockchain technology in the U.S. Congress, with significant progress in growing the Blockchain Caucus leadership and in taking steps to clarify the laws impacting use of the technology. Specifically, two resolutions were introduced to foster broad support for light touch regulation of blockchain and digital currency activity. Three bills were proposed to help alleviate uncertainty surrounding application of certain tax treatment, exclusions from money transmitter registration and licensing, and clarification around smart contracts.  Finally, 15 Members of Congress wrote to SEC Chairman Jay Clayton requesting further clarification on the treatment of digital tokens under securities laws.

These Congressional efforts (below) demonstrate that education and advocacy is creating true blockchain champions in government and is broadening the understanding and determination of more Members of Congress to promote real policy solutions for our industry. But, more needs to be done. We continue to advocate in Washington, DC and beyond to ensure that this momentum translates into the implementation of blockchain-friendly policies for industry.

The Latest Blockchain Developments from Capitol Hill:

 

    • The leadership of the Congressional Blockchain Caucus is growing. Bill Foster (D-IL) and Rep. Tom Emmer (R-MN) have joined Rep. David Schweikert (R-AZ) and Rep. Jared Polis (D-CO) as co-chairs of the Caucus.  We look forward to more visionary support from these leaders in the coming months.
      • Tom Emmer introduced three pieces of legislation: (1) H. Res. 1102, a resolution that supports blockchain and digital currencies; (2) H.R. 6974, a bill clarifying that certain non-controlling service providers are exempt from federal money transmitter licensing and registration requirements; and (3) H.R. 6973, a bill protecting taxpayers who have received forked convertible virtual currency from IRS penalties until the IRS can provide clearer guidance on these types of gains. Congressman Emmer is clearly making strides in his new role as a co-chair of the Congressional Blockchain Caucus. In case you missed it, he gave an inspiring speech calling for a light touch to regulation at our DC Blockchain Summit earlier this year.
        • David Schweikert introduced two pieces of legislation. H. Res. 1108, a resolution recognizing blockchain as a technology with “incredible potential that must be nurtured through support for research and development, and a thoughtful and innovation-friendly regulatory approach.” It summarizes the potential promise of blockchain to government, businesses, and consumers and outlines the industries and areas that stand to benefit from it, including education, identity, and cybersecurity. H.R. 7002 seeks to amend the E-SIGN Act to confirm the applicability of blockchain and smart contracts within laws governing electronic records and signatures. It pursues remedying the problem of a developing patchwork of state legislation addressing the use of blockchain and smart contract technology in electronic signatures and records. We have been vocal on this issue for quite some time. (Our most recent white paper, “Smart Contracts: Is the Law Ready?,” discusses our position in greater detail and was also published last week.) Congressman Schweikert has been a steadfast leader in Congress on these issues (watch him talk about the amazing potential of blockchain technology at our DC Blockchain Summit!), and we look forward to further collaboration to support industry-related topics.
          • Over the past year, the Congressional Blockchain Caucus convened a series of the roundtables with industry leaders covering: (1) digital identity; (2) payments; and (3) supply chain. The series resulted in a reportentitled, “Understanding Blockchain’s Promise for Government,” published in consultation with the Caucus outlining the findings made during the roundtables.
            • Ted Budd (R-NC), along with 14 other members of Congress, sent a letter to SEC Chairman Clayton asking for more regulatory clarity for the token industry. The letter requests that the SEC elaborate on the criteria used to determine when offers and sales of digital tokens should properly be considered “investment contracts,” and to confirm that digital tokens originally sold as investment contracts can become non-securities. The letter also requests confirmation regarding statements made in SEC Director of Corporation Finance Bill Hinman’s June 2018 speech “When Howey Met Gary (Plastic)” (and expresses appreciation for statements made by SEC Commissioner Hester Peirce in her speech Motherhood and Humble Pie). Finally, the letter seeks more information about the various tools the SEC has to provide further guidance to innovators.
              • Warren Davidson (R-OH) hosted a forum on the regulation of digital currencies and initial coin offerings (ICOs). During the event, he discussed the legislation that he has been developing, which may include preemption provisions for state licensing requirements for entities such as token trading platforms. During the forum, Paul Atkins, former SEC Commissioner, CEO of Patomak Global Partners, and Co-Chair of the Chamber’s Token Alliance, while discussing the state licensing preemption provisions said, “[w]e have 50 states here, and those states have many different people who have interests in securities markets.”

Chamber of Digital Commerce Releases “Smart Contracts: Is the Law Ready?” White Paper

by Chamber

Chamber of Digital Commerce Releases “Smart Contracts: Is the Law Ready?” White Paper 

Smart Contract Alliance Clears Up Misconceptions About Enforceability of “Smart Legal Contracts”

Washington, D.C., September 27, 2018 – The Chamber of Digital Commerce, the world’s leading blockchain trade association, today released “Smart Contracts: Is the Law Ready?” Developed by the Smart Contracts Alliance, an initiative of the Chamber of Digital Commerce, the paper shares insights from legal experts on how current laws in the United States and abroad are applicable to the technology. The white paper breaks important ground analyzing the applicability and enforceability of laws governing smart contracts.

Smart contracts are not necessarily legal contracts. They are pre-determined computer code executed using blockchain technology through an established set of parameters. Among the many benefits of smart contracts are the potential for greater operational efficiencies through automation, decreased need for manual processes, and enhanced cost savings, to name a few. For business to realize these benefits, the enforceability of smart contracts is critical. This white paper establishes a foundational legal basis for the enforceability of smart contracts and is an essential step toward increasing the adoption of this transformative technology.

“There is still misunderstanding surrounding the use of smart contracts technology, particularly when it comes applicability of existing law,” said Perianne Boring, Founder and President, Chamber of Digital Commerce. “This in-depth examination is the culmination of more than a year of research from the Smart Contracts Alliance, and aims to further empower innovators and businesses with the legal knowledge to realize this technology’s enormous potential.”

The paper is comprised of the following sections:

  • Smart Contracts Lexicon – a glossary that sets a common ground for practitioners in an industry where formal definitions are lacking.
  • Legal Challenges Associated with the Formation, Modification, and Enforcement of Smart Legal Contracts – an application of traditional concepts of contract law to smart contracts..
  • Smart Contracts, Blockchain, and Commercial Law – an analysis of the applicability of U.S. laws using blockchain and smart contract technology in securing electronic signatures and records.
  • The U.C.C. and State Law Issues in Smart Contracts – an in-depth look at Article 9 of the Uniform Commercial Code and the perfection of security interests on a blockchain.

The Smart Contracts Alliance is an initiative of the Chamber of Digital Commerce, and is comprised of more than 360 experts in the blockchain and legal space. “Smart Contracts: Is the Law Ready?” is now available at digitalchamber.org.

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 @DigitalChamber.

Media Contacts:

Jennifer Darland
+1-443-617-4371
chamber@edelman.com

Marie Knowles
+1-202-656-8037
marie@digitalchamber.org

Diving Into Smart Contracts

by Chamber

Diving into Smart Contracts

Can Smart Contracts Be Used to Develop & Negotiate Legal Contracts? Will They Hold Up in Court?
The Chamber’s Smart Contracts Alliance Releases Legal Examination into the Technology

By Amy Kim & Paul Brigner

Smart contract technology has the promise to transform the way in which we interact in innumerable ways. The ability to facilitate actions based on pre-programmed delivery terms and established price parameters offers significant economic potential due to their frictionless nature – both for personnel, time and, ultimately, money.  A seemingly limitless number of transactions can take place through smart contracts.  This concept is what motivates much of the excitement surrounding blockchain technology.

Despite their name, smart contracts may not be legal contracts; rather, they are computer code that can be used to create “smart legal contracts.”  Smart contract use cases span a variety of industries and could lead to significant economic efficiencies by eliminating the intermediaries required for many transaction types and can enable multiple automated functions.

In 2016, the Chamber of Digital Commerce launched the Smart Contracts Alliance, bringing together thought leaders and innovators from across the technology, legal and financial services industries to help educate and shape policy for smart contracts moving forward.  The Smart Contracts Alliance published its first white paper, “Smart Contracts: 12 Use Case Cases for Business & Beyond,” describing the potential applications of smart contract technology across various industries to convey the importance of this technology.

Now, under the leadership of co-chairs Mark Smith of Symbiont, Ronald Smith of Norton Rose Fulbright, and Jordan Earls of QTUM, the Smart Contracts Alliance is introducing its second comprehensive white paper, “SMART CONTRACTS: Is the Law Ready?”

The white paper breaks important ground analyzing the enforceability of laws governing smart contracts, including those governing electronic signatures and records. This paper assesses several legal regimes to answer the question of enforceability, to better understand whether smart contracts can in fact be used in legal contracts, and if so, whether they hold up in a court of law. The Chamber presents the white paper as a resource to industry, government, and the public. The Smart Contracts Alliance – which takes the position that existing laws provide an unquestionable legal basis for smart contract technology executing the terms of a legal contract – will continue to expand its knowledge on issues relating to smart contracts and, in so doing, and promote the adoption of smart contracts through education and advocacy efforts.

The Smart Contracts Alliance co-chairs conclude the white paper’s Foreword by saying:

This white paper explains that, under legislation of some jurisdictions, smart contracts are likely to be regarded as “electronic agents,” with enabling consequences in terms of legal or contractual effect. Where might we see the deployment of electronic agents? Artificial Intelligence (AI) is, at the moment, probably the most talked about developing technology. Put AI machine learning in combination with electronic agents such as smart contracts and you have functionality that can autonomously decide and then automatically perform, without the need for human intervention. Realizing business efficiencies, transforming business processes, enabling peer-to-peer interactions, and de-risking aspects of established commercial transactions — the potential of smart contracts is enormous…

The white paper offers a universal lexicon and a deep dive in Chapter One into when smart contracts can constitute legally binding contracts, including what are the required elements in both common law and civil code; their various models and associated nuances; applicable law; governance, enforcement mechanisms, and scope of liability. The paper concludes in Chapter Two that smart contracts may act as legally binding electronic agents under U.S. e-commerce legislation (ESIGN and UETA) using electronic records and signatures. Finally, the paper analyzes in Chapter Three the potential use of smart contracts in securitization procedures, security interests and their perfection under the UCC; various categories of blockchain-based assets for UCC purposes; and the issues associated with the use of wallets through an intermediary.

The paper was written by leading legal and smart contracts experts, including: Miren Aparicio Bijuesca of The World Bank; Joshua Boehm of Perkins Coie; Jenny Cieplak of Crowell & Moring; Fred Fedynyshyn of Perkins Coie; Patricia Fry of University of Missouri-Columbia School of Law; Phillip H. Griffin of Wells Fargo; Dax Hansen of Perkins Coie; Sean Murphy of Norton Rose Fulbright; Mark Radcliffe of DLA Piper; Margo Tank of DLA Piper; and David Whitaker of DLA Piper. A special thank you to those who dedicated their time to pull the paper together.

The Smart Contracts Alliance white paper, as viewed through a legal lens by renowned thought leaders in the blockchain ecosystem, is an essential step toward increasing the adoption of this transformative technology.

Is the law ready? Is enterprise ready? Are you ready?

Dive in.

Chamber of Digital Commerce Expands its Policy Department to Drive Blockchain Initiatives

by Chamber

Newsroom

Chamber of Digital Commerce Expands its Policy Department

to Drive Blockchain Initiatives

Washington, D.C., August 27, 2018 — The Chamber of Digital Commerce, the world’s leading blockchain trade association, announced today the expansion of its Policy department with the promotion of Amy Davine Kim to the role of Chief Policy Officer and the hire of Paul Brigner as Director of Technology Policy.

Previously the Chamber’s Global Policy Director and General Counsel, Kim will continue to shape the Chamber’s public dialogue and deliver solutions to address important legislative and regulatory needs in the blockchain and digital assets space. She will lead the growing policy and legal team responsible for shaping global, national, and state-specific public policy efforts for the blockchain industry.

As a member of the policy team, Brigner will lead a number of special initiatives at the Chamber, including working groups addressing smart contracts, intellectual property, and accounting.  He joins the Chamber from Georgetown University where he served as Managing Director of the Blockchain Technology and Ecosystem Design Research Center and will continue to serve as an advisor to that group to promote blockchain research for the industry.

“We’re pleased to announce the expansion of the Chamber of Digital Commerce’s leadership team with these two new roles,” said Perianne Boring, Founder and President of the Chamber of Digital Commerce. “Amy and Paul bring tremendous wealth of knowledge and extensive policy experience from across the blockchain, financial services, and technology sectors. Their expertise will be invaluable as we continue to develop a sophisticated policy platform to aggressively promote the blockchain ecosystem.”

Prior to joining the Chamber, Kim served as counsel at leading law firms advising financial institutions, blockchain-based companies, marketplace lenders, investors, and innovators regarding financial services compliance obligations. She has advised financial institutions on the Bank Secrecy Act and anti-money laundering requirements, state money transmitter laws, sanctions compliance, and related consumer financial protection laws. She also advised companies on cross-border, anti-bribery, and trade-related compliance matters, and advised investors in their investments in hedge, private equity, and real estate funds.

Prior to his role at Georgetown University, Brigner was the North American Bureau Director at the Internet Society where he managed projects and activities across its functional and programmatic areas in the United States and Canada. He also served as the Senior Vice President and Chief Technology Policy Officer for the Motion Picture Association of America and the Executive Director, Internet and Technology Policy for Verizon, where he held numerous management positions.

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

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.