The Hawaii Senate has formed a task force to regulate the cryptocurrency and blockchain industries. The task force will report back with findings and possible legislation to the State Capitol. The Hawaii Senate approved a proposal creating a task force that would develop a strategy for increasing blockchain adoption in both the commercial and public sectors.
Hawaii Senate moves in for favorable crypto regulation
The Hawaii State Legislature’s Commerce and Consumer Protection (CPN) and Ways and Means (WAM) committees have given their approval for the formation of a specialized task force to look into the use and control of the crypto ecosystem.
In 2020, the Hawaii State authorized cryptocurrency exchange companies to engage with consumers in Hawaii under a two-year test program. As reported by Cryptopolitan, the state of Hawaii launched a pilot project that involves numerous government agencies, including the Hawaii Technology Development Corporation, the Department of Commerce and Consumer Affairs, and the Division of Financial Institutions (DFI). The Senate Bill authoring arm (Hawaii Senate) supported the pilot deployment.
In support of the creation of a “Blockchain and Cryptocurrency Task Force,” legislative members Donovan Dela Cruz and Roz Baker, who sponsored bill SB2695, wrote in a letter addressed to Hawaii Senate President Ron Kouchi.
The Hawaii Senate sponsored SB2695, titled “A BILL FOR AN ACT RELATING TO CRYPTOCURRENCY,” which sought to establish a department-level task force in the Department of Budget and Finance to research and compile worldwide data on crypto and blockchain.
According to the Hawaii Senate bill, the task force will include prominent figures from throughout the state. The following are some of the proposed heads: three members of the Hawaii Senate and three representatives from the House of Representatives.
These representatives will get appointed by the president of the Hawaii Senate and the speaker of the House of Representatives. In addition, regulators expect that no more than four members will belong to the same political party.
Furthermore, the president of the Hawaii Senate and speaker of the House of Representatives must elect one member to serve as chairperson of the task force. The executive order establishing the task force also specifies that 11 members will get appointed by the governor, including representatives from a blockchain payments solution firm, a cryptocurrency exchange, and a cryptocurrency association.
According to Kouchi’s letter, the task force in question would provide findings and possible legislation back to the State Capitol following discussions. The actions are in response to efforts to develop a strategy for increasing blockchain adoption in both the business and public sectors.
Hawaii sets the pace for a productive crypto environment
The world recognizes Hawaii for its sparkling 750 miles of beach dotted with volcanoes, its ancient culture, which includes icons like the hula dance and lu’aus, as well as delicious cuisine that gave us poke bowls. The archipelago of eight main islands surrounded by 129 minor ones in the middle of the Pacific Ocean attempts to create an optimum climate for cryptocurrency to flourish. The economic addition adds to investors’ enthusiasm for Hawaii.
According to the institution’s letter, the Hawaii Senate Committees discovered that there is little industry regulation despite the increasing popularity and use of digital currency. As such, there is a lot of potential for both the application and regulation of blockchain technology and cryptocurrency. It is in the best interests of the Hawaii State and its consumers to examine how to regulate and give oversight to the cryptocurrency industry.
The letter noted the enormous promise for both blockchain technology and cryptocurrency and urged members to advocate for these regulatory priorities.
This measure establishes a task force to create a master plan to explore the use and regulation of blockchain and cryptocurrency.
Hawaii Senate Letter.
After signing, the blockchain and cryptocurrency task force must submit a preliminary report on its findings and suggestions at least 20 days before convening the next session in 2023. Hawaii’s top bank regulator announced a proposal in late 2021 to legalize crypto exchanges on the islands.
Iris Ikeda, the financial institutions’ commissioner for the Hawaii Department of Commerce and Consumer Affairs, drafted and proposed legislation that would allow cryptocurrency firms to operate in Hawaii. Soon after, the Hawaii Senate introduced a bill-focused crypto and blockchain regulation task force.
Hawaii’s stance on the crypto business will benefit its citizens and worldwide cryptocurrency investors.