Crypto Regulation Task Force to Be Established in Hawaii

Key Points

• Two Hawaii Senate committees have voted in favor of the creation of a crypto task force.
• The task force will “create a master plan to explore the use and regulation of blockchain and cryptocurrency.”
• The task force will be required to submit its findings to the Hawaii Senate in 2024.

Two committees operating within the Hawaii Senate, the Commerce and Consumer Protection (CPN) and Ways and Means (WAM) committees, have voted in support of the establishment of a Blockchain and Cryptocurrency Task Force.

In a letter made public this Tuesday that was sent to the President of Hawaii’s Senate on March 3, the chairs of the CPN and WAM committees asked for the creation of the crypto task force, as initially proposed in bill SB2695.

Bill SB2695, which is referenced in the letter to the Hawaii Senate President and titled “A BILL FOR AN ACT RELATING TO CRYPTOCURRENCY,” calls for the creation of a crypto task force within the Department of Budget and Finance.

Committee motivations

According to the CPN and WAM committee chairs’ letter to the President of the Hawaii Senate, the committees “find that, despite the emerging growth and popularity of digital currency, there is little regulation of the industry.”

Accordingly, the letter continues, “as there is vast potential for both the use and regulation of blockchain technology and cryptocurrency, it is in the interests of the State and its consumers to determine whether or how to regulate and provide oversight to the cryptocurrency industry.”

The letter explains that the aim of the task force will be “to create a master plan to explore the use and regulation of blockchain and cryptocurrency.”

Last month, US Treasury Secretary Janet Yellen said that crypto regulations should support responsible innovation whilst also mitigating risks.

Her remarks came after US President Joe Biden signed an executive order to strengthen cryptocurrency regulatory measures.

Next steps

According to the letter from the CPN and WAM chairs to Hawaii’s Senate President, upon its creation, the task force will “review data and other aspects of the blockchain and cryptocurrency industry throughout the country, including but not limited to the development of a plan to expand blockchain adoption in both the private and public sectors.”

According to bill SB2695, which initially proposed the creation of a crypto task force, there will be eleven members in any such task force. This will include representatives from a blockchain payments company, a crypto exchange and from crypto industry trade group, to be appointed by the governor.

The task force will be required to submit a report to the Hawaii Senate Legislature at least 20 days before the start of the Regular Session of 2024, after which the task force will be dissolved.