Hawaii 2022 Regular Session

Hawaii Senate Bill SCR31 Compare Versions

Only one version of the bill is available at this time.

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1	1	THE SENATE S.C.R. NO. 31 THIRTY-FIRST LEGISLATURE, 2022 STATE OF HAWAII SENATE CONCURRENT RESOLUTION requesting the department of commerce and consumer affairs to create a task force to study the APPROVAL of blockchain technology and cryptocurrency in the state.
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3	3	THE SENATE S.C.R. NO. 31
4	4	THIRTY-FIRST LEGISLATURE, 2022
5	5	STATE OF HAWAII
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7	7	THE SENATE
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9	9	S.C.R. NO.
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11	11	31
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13	13	THIRTY-FIRST LEGISLATURE, 2022
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17	17	STATE OF HAWAII
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29	29	SENATE CONCURRENT
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31	31	RESOLUTION
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37	37	requesting the department of commerce and consumer affairs to create a task force to study the APPROVAL of blockchain technology and cryptocurrency in the state.
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43	43	WHEREAS, there is a vast potential for blockchain technology to drastically change and improve the State's public sector operations and private industry capabilities; and WHEREAS, blockchain is a decentralized distributed ledger technology that allows the creation, validation, and encrypted transaction of digital assets to happen and be recorded in an incorruptible way; and WHEREAS, blockchain allows peer-to-peer and business-to-business transactions to be completed without the need for a third party, often a bank or a financial intermediary such as the Depository Trust and Clearing Corporation, effectively reducing transaction costs; and WHEREAS, recording transactions through blockchain technology virtually eliminates human error and protects data from possible tampering; and WHEREAS, the global blockchain market is expected to be worth $42,000,000,000 by 2024; the central banks of the major western countries are currently developing blockchain-based digital currencies; and ninety percent of major North American and European banks are exploring blockchain solutions; and WHEREAS, the distributed ledger format utilized by blockchain technology can be leveraged to support an array of government and public-sector applications, including land registration, identity management, supply chain traceability, health care, corporate registration, taxation, voting, digital currency and payments, and legal entities management; and WHEREAS, blockchain technology can also protect data; streamline processes; and reduce fraud, waste, and abuse while simultaneously increasing public trust and governmental accountability; and WHEREAS, a hyperconnected government that utilizes blockchain technology would reduce corruption and enable unprecedented transparency and efficiency where services are tailored to an individual's needs; and WHEREAS, the adoption of blockchain technology requires an educated and thorough approach so that the implementation of blockchain technology in the State does not impede innovation and growth; and WHEREAS, Hawaii also has yet to determine whether or how to regulate and provide oversight to the cryptocurrency industry in the State; now, therefore, BE IT RESOLVED by the Senate of the Thirty-first Legislature of the State of Hawaii, Regular Session of 2022, the House of Representatives concurring, that the Department of Commerce and Consumer Affairs is requested to create a task force to study the approval of blockchain technology and cryptocurrency in the State; and BE IT FURTHER RESOLVED that the task force is requested to consist of the following members: (1) A representative from the Department of Commerce and Consumer Affairs' Division of Financial Institutions, to serve as chair of the task force; (2) The Director of Finance or the Director's designee; (3) Three members of the Senate to be appointed by the President of the Senate; provided that not more than two of the members are of the same political party; (4) Three members of the House of Representatives to be appointed by the Speaker of the House of Representatives; provided that not more than two of the members are of the same political party; (5) A professor from the University of Hawaii with expertise regarding blockchain; (6) A president or chief financial officer of a Hawaii-based cryptocurrency company; (7) A representative from a Hawaii-based bank or financial institution; (8) A representative of a Hawaii-based cryptocurrency exchange; (9) A representative of a Hawaii-based company with a focus on non-transactional blockchains; (10) A representative of a Hawaii-based blockchain payments solution company; (11) A representative of a company with a business model that uses blockchain for non-cryptocurrency transaction purposes; (12) A representative of a blockchain or cryptocurrency association; and (13) A member of the public; and BE IT FURTHER RESOLVED that the task force is requested to: (1) Review data on the scope of blockchain and cryptocurrency use throughout the country; (2) Review other aspects of the blockchain and cryptocurrency industry, including but not limited to the development of a plan to expand blockchain adoption in both the private and public sectors; and (3) Compile an overview of potential legislation; and BE IT FURTHER RESOLVED that the task force is requested to submit a report of its findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2023, regarding the approval of blockchain technology and cryptocurrency in the State; and BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of Commerce and Consumer Affairs, Director of Finance, Commissioner of Financial Institutions, and President of the University of Hawaii System. OFFERED BY: _____________________________ Report Title: Blockchain; Cryptocurrency; Study; Task Force
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45	45	WHEREAS, there is a vast potential for blockchain technology to drastically change and improve the State's public sector operations and private industry capabilities; and
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49	49	WHEREAS, blockchain is a decentralized distributed ledger technology that allows the creation, validation, and encrypted transaction of digital assets to happen and be recorded in an incorruptible way; and
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53	53	WHEREAS, blockchain allows peer-to-peer and business-to-business transactions to be completed without the need for a third party, often a bank or a financial intermediary such as the Depository Trust and Clearing Corporation, effectively reducing transaction costs; and
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57	57	WHEREAS, recording transactions through blockchain technology virtually eliminates human error and protects data from possible tampering; and
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61	61	WHEREAS, the global blockchain market is expected to be worth $42,000,000,000 by 2024; the central banks of the major western countries are currently developing blockchain-based digital currencies; and ninety percent of major North American and European banks are exploring blockchain solutions; and
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65	65	WHEREAS, the distributed ledger format utilized by blockchain technology can be leveraged to support an array of government and public-sector applications, including land registration, identity management, supply chain traceability, health care, corporate registration, taxation, voting, digital currency and payments, and legal entities management; and
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69	69	WHEREAS, blockchain technology can also protect data; streamline processes; and reduce fraud, waste, and abuse while simultaneously increasing public trust and governmental accountability; and
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73	73	WHEREAS, a hyperconnected government that utilizes blockchain technology would reduce corruption and enable unprecedented transparency and efficiency where services are tailored to an individual's needs; and
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77	77	WHEREAS, the adoption of blockchain technology requires an educated and thorough approach so that the implementation of blockchain technology in the State does not impede innovation and growth; and
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81	81	WHEREAS, Hawaii also has yet to determine whether or how to regulate and provide oversight to the cryptocurrency industry in the State; now, therefore,
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85	85	BE IT RESOLVED by the Senate of the Thirty-first Legislature of the State of Hawaii, Regular Session of 2022, the House of Representatives concurring, that the Department of Commerce and Consumer Affairs is requested to create a task force to study the approval of blockchain technology and cryptocurrency in the State; and
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89	89	BE IT FURTHER RESOLVED that the task force is requested to consist of the following members:
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93	93	(1) A representative from the Department of Commerce and Consumer Affairs' Division of Financial Institutions, to serve as chair of the task force;
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97	97	(2) The Director of Finance or the Director's designee;
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101	101	(3) Three members of the Senate to be appointed by the President of the Senate; provided that not more than two of the members are of the same political party;
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105	105	(4) Three members of the House of Representatives to be appointed by the Speaker of the House of Representatives; provided that not more than two of the members are of the same political party;
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109	109	(5) A professor from the University of Hawaii with expertise regarding blockchain;
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113	113	(6) A president or chief financial officer of a Hawaii-based cryptocurrency company;
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117	117	(7) A representative from a Hawaii-based bank or financial institution;
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121	121	(8) A representative of a Hawaii-based cryptocurrency exchange;
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125	125	(9) A representative of a Hawaii-based company with a focus on non-transactional blockchains;
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129	129	(10) A representative of a Hawaii-based blockchain payments solution company;
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133	133	(11) A representative of a company with a business model that uses blockchain for non-cryptocurrency transaction purposes;
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137	137	(12) A representative of a blockchain or cryptocurrency association; and
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141	141	(13) A member of the public; and
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145	145	BE IT FURTHER RESOLVED that the task force is requested to:
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149	149	(1) Review data on the scope of blockchain and cryptocurrency use throughout the country;
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153	153	(2) Review other aspects of the blockchain and cryptocurrency industry, including but not limited to the development of a plan to expand blockchain adoption in both the private and public sectors; and
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157	157	(3) Compile an overview of potential legislation; and
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161	161	BE IT FURTHER RESOLVED that the task force is requested to submit a report of its findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2023, regarding the approval of blockchain technology and cryptocurrency in the State; and
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165	165	BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of Commerce and Consumer Affairs, Director of Finance, Commissioner of Financial Institutions, and President of the University of Hawaii System.
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173	173	OFFERED BY: _____________________________
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177	177	OFFERED BY:
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179	179	_____________________________
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185	185	Report Title:
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187	187	Blockchain; Cryptocurrency; Study; Task Force