Blockchain Industry News

On March 28, 2019, Representative Alan Clemmons, from South Carolina, filed the Blockchain Industry Empowerment Act of 2019. In the bill, the representative defines digital currency by acknowledging that individuals have the right to use digital assets. The purpose of the bill is to “establish [the] state as an incubator for tech industries seeking to develop innovation by using blockchain technology.” This legislation, one of first of its kind to appear at the state or federal level, was referred to the House Ways and Means Committee. In support of this bill, Senator Tom Davis filed a similar bill in the state Senate.

South Carolina Legislators are making an effort to position the state as a leader in the financial technology sector, specifically with regard to Blockchain and cryptocurrency technologies. Included in the bill is title 34 which creates “the financial technology sandbox for the testing of financial products and services in South Carolina.”

In December 2018, Wyoming passed the Financial Technology Sandbox Act to encourage innovation in the state. The Wyoming bill states that “Financial technology is undergoing a transformational period” and that “existing legal frameworks are restricting financial technology innovation because these frameworks were largely established at a time when technology was not a fundamental component of financial products and services.” Ultimately the bill seeks a flexible regulatory period and a welcoming business environment to encourage innovation. Representative Clemmons’ bill also calls for a financial technology sandbox.

Behind the effort to promote economic growth through the financial technology sector in South Carolina is Dennis Fassuliotis, executive director of Palmettochain Inc. Fassuliotis sees the passing of the South Carolina bill as critically important in defining South Carolina’s ability to grow economically and foster innovation.