Senate Hearing to Discuss Blockchain and Digital Privacy in Massachusetts in July

Three key bills have been rescheduled for a July 13 hearing to address blockchain, digital privacy and digital innovation within government.

The Massachusetts State Senate announced on July 5 that it will combine multiple hearings on blockchain, digital assets, and digital privacy into one session on July 13, underscoring the growing importance of these topics in the state.

During the four-hour hearing, the "Advanced Information Technology, Internet and Cybersecurity Committee" will discuss noteworthy bills, each of which has a significant impact on the state's approach to digital technology, blockchain and cryptocurrencies.

Public Sector Digital Innovation Pilot Program Launched

These proposed laws include "a bill to create a pilot program to explore digital innovations in government". The bill proposes a breakthrough pilot program by the Massachusetts Technology Partnership exploring the use of blockchain technology to securely store and access real estate records.

In an era of digital transformation and increasing global regulation of U.S. cryptocurrencies, the proposed legislation represents a significant step forward in integrating blockchain into government operations.

Establishment of a dedicated blockchain and cryptocurrency committee

Also, an important bill that is being considered by the joint session is the "Bill to Establish a Special Committee on Blockchain and Cryptocurrency." Introduced on Jan. 19, the bill seeks to explore the impact and potential use of blockchain technology within a government framework.

With input from a wide range of stakeholders, the committee will be tasked with examining the feasibility of using blockchain technology in state and local government, the potential impact on state revenue due to the proliferation of cryptocurrencies, and the acceptance of blockchain technology by government agencies suggestion. Cryptocurrency as a payment method, among other considerations.

Additionally, the committee is reviewing the adequacy of existing definitions of blockchain in the context of enforceable laws, the advisability of government and business consultation (focusing on industries such as cannabis retail stores), and regulating energy consumption associated with blockchain operations potential needs.

The committee will also be tasked with identifying best practice in harnessing blockchain technology for the benefit of the Commonwealth, identifying which national entities should be responsible for enforcing blockchain regulations, and other blockchain-related topics recommended by the committee.

Under the terms of the bill, the commission is supposed to report its findings within a year of its establishment to foster a positive environment for blockchain technology in Massachusetts. The report will provide a comprehensive proposed master plan aimed at facilitating the appropriate expansion of blockchain technology across the Commonwealth.

Protect private online communications and activities

The last bill on the agenda is the "Protection of Private Electronic Communications, Browsing and Other Activities Act." The legislation aims to provide strong protection for private electronic communications and browsing activities from government intrusion.

For example, it proposes to make it illegal for government agencies, law enforcement agencies, or public officials to obtain reverse targeting or reverse keyword requests. These requests often force the records of anonymous individuals to be disclosed or track unidentified electronic devices, thereby potentially infringing upon individual privacy.

The bill also outlines strict rules regarding cellular base station simulators and devices used to locate or track electronic devices, limiting their use in specific scenarios and ensuring strict protections for the privacy of non-targets.

The combination of these bills represents a significant step forward in Massachusetts’ efforts to regulate digital technologies, specifically blockchain and cryptocurrencies. By promoting innovation and protecting the privacy of citizens, 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. Discussions and decisions at the General Assembly could have significant implications for the state of Massachusetts and could set a benchmark for blockchain and cryptocurrency regulation nationwide.