Legislation was enacted in 2019 providing that an electronic record may not be denied legal effect because it is generated or stored using distributed ledger technology. Distributed ledger technology means any distributed ledger protocol and supporting infrastructure, including blockchain, that uses a distributed, decentralized, shared, and replicated ledger. Blockchain means a cryptographically secured, chronological, and decentralized consensus ledger or consensus database maintained via Internet, peer-to-peer network, or other similar interaction.
The Washington blockchain work group (work group) is established. The purpose of the work group is to examine various potential applications of and policies for blockchain technology to help attract and support employees and new businesses.
The work group is composed of one Senator from each of the two largest caucuses of the Senate, one Representative from each of the two largest caucuses of The House of Representatives, the Director of the Department of Commerce or the Director's designee, and other industry experts and members from associations, including:
The State Auditor, the Secretary of State, and the directors of the following state agencies, or their designees, are specified as ex officio members of the work group: the Department of Financial Institutions, Washington Technology Solutions, the Department of Agriculture, the Office of the Insurance Commissioner, the Department of Ecology, the Department of Revenue, and the Health Care Authority.
In addition, individuals representing other sectors may be invited to participate in the work group in an advisory capacity. Individuals participating in an advisory capacity are not members of the work group.
The work group shall hold its first meeting by December 1, 2022. A public comment period must be provided at every work group meeting.
The work group is required to submit a report to the Governor and the Legislature by December 1, 2023, on recommended policies that will facilitate the development of blockchain applications and the sector overall, grow the related workforce, evaluate environmental advantages and concerns, make Washington a favorable place to do business, address racial equity considerations, and improve the lives of Washington residents.
The substitute bill makes the following changes to the original bill:
(In support) Blockchain is a transformative technology, already being used across many sectors. This bill will help harvest the advantages of blockchain technology. This work group is an important step to growing Washington's blockchain sector. Washington should be the global hub for blockchain technologies, and Washington has the engineering talent. Creating uniform blockchain policies allows the state to act in coordination with other states. This bill will improve coordination between disparate groups, such as regulators and innovators, to develop the blockchain sector in Washington and identify use cases that would be beneficial to the state. The work group will help support innovative businesses that provide better paying jobs. Blockchain is good for diversity, economic opportunity, and transparency. The work group should include a labor group that has experience building and maintaining digital infrastructure. Labor groups should have input in the work group, because changes in business practices change employee involvement. Washington should introduce laws that allow innovations in currency. Cryptocurrencies use a lot of energy to sustain their product, so Washington should build an environmentally responsible blockchain sector. Data centers hosting data in Washington have assets that other states do not, such as a nearby vibrant tech sector.
(Opposed) None.
(Other) The Office of the Lieutenant Governor does not currently have the capacity to take on the work of staffing this work group.