With just under a week before the U.S. election, the world is watching. Policies ranging from fiscal to social are all on the line, with each candidate having something to say — whether you agree with it or not.
But what about blockchain? Quite likely your “Debate Bingo Card” did not have a square with the word floating in the middle. At the same time, the topic is one that is more important and relevant than ever, compared to years past.
Neither candidate has really made any complete announcements related to blockchain technology. As a result, those close to the industry are left to speculate as to how or what each candidate would do for blockchain once in office.
Some experts say they anticipate no change, no matter who moves into the White House.
Percy Venegas of EconomyMonitor.com, which performs academic research and competitive intelligence, said that, while the federal government is running exploratory initiatives related to blockchain, it will keep doing so no matter who wins the election.
“This includes initiatives by the Federal Reserve in matters related to monetary policy and from the Department of Homeland Security in security for Internet of Things — where they have active investments into startups, among others,” said Venegas.
Other experts say that blockchain’s course could indeed change depending on who wins.
Ira Schaefer of Hogan Lovells said that, because Donald Trump has indicated a penchant for completing projects under budget and ahead of schedule, blockchain and smart contracts have the potential to reduce paperwork and speed up the contract process. “I can visualize Mr. Trump advocating for blockchain and smart contracts for government contracts, particularly for those involving small businesses,” said Schaefer. “This would reduce the costs of contracting and therefore reduce the cost to the government, and it would speed up the contract process, making it possible to complete projects early.”
On the other hand, Schaefer said that, because the use of a blockchain provides an immutable record of transactions and provides transparency since the record is shared, blockchain may help Hillary Clinton’s policies for continuing her record of providing government services for those in need. “I can visualize Mrs. Clinton adopting the blockchain to protect those that are underserved by lawyers,” said Schaefer. “For example, there have been cases of poor people being cheated out of their homes by the fraudulent recording of forged deeds. An initiative to fund the local recording of deeds on the blockchain to prevent this type of fraud is something Mrs. Clinton would get behind.”
In less than a week, that will be decided. However, in the interim, the Office of the Comptroller of the Currency (OCC) has plans for establishing an office deliberately responsible for overseeing innovation and implementation of a formal framework — specifically involving blockchain — to improve the ability to identify and respond to related technology and innovation involving the federal banking system. That’s according to a report released earlier this week, “Recommendations and Decisions for Implementing a Responsible Innovation Framework.”
David Horton, head of digital innovation at Synechron, said the OCC’s movement to set up this office demonstrates that regulators are highly interested in blockchain and recognize that there may indeed be need for addressing regulatory challenges related to businesses.
“Over the last six months, all major regulators (SEC, CFTC, etc.) have shown support for innovation and blockchain, making the regulatory environment favorable,” said Horton. “In fact, many regulators see an opportunity for blockchain to increase transparency needed for initiatives like a consolidated audit trail (CAT). After the global financial crisis, in addition to banks, regulators are feeling more pressure. They feel, if a systemically important financial institution (SIFI) melts down, all eyes will be on them.”
Horton said that blockchain could be the answer to initiatives like the Faster Payments Task Force, asking the industry for faster ways of doing ACH and transfers of funds. Of course, there is also considerable pressure on regulators from the banks themselves to keep up with the pace of innovation and to dispel opinions that the regulator is responsible for “holding back” the industry.
The office is slated to open in the first quarter of next year, which is the same time that a new president will move into that big white home on Pennsylvania Avenue.
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