Jurat Comments on Responsible Development of Digital Assets

Law

Jurat’s CEO, Mike Kanovitz, recently filed comments with the U.S. Department of Commerce discussing the responsible development of digital assets.

“I am attaching a pdf of the comments by Jurat Blockchain, a U.S.-based provider of decentralized legal enforcement solutions in the digital asset space.

In summary, to successfully implement the Executive Order’s policy initiatives Treasury must first address the root causes of lawlessness plaguing blockchain consumers and businesses. These include a lack of access to official courts (which prevents users from protecting their own legal rights and regulators from enforcing policy), the inability to reverse illegal or mistaken transactions, and an overbroad application of the “code is law” architecture that needlessly burdens the legitimate exercise of governmental authority. 

Technological solutions are available to address each of these problems, specifically, decentralized methods to enforce the law directly via court-order blockchain transactions. While the technology would benefit both blockchain users and government regulators, industry adoption has lagged because operators externalize the costs of blockchain-based crime, much as a factory might treat the air pollution it generates. Thoughtful regulation is needed to address this market failure.

We propose that Treasury require minimum standards for U.S. based operators to ensure that on-chain legal enforcement is available on any network in which they participate as well as through any smart contract-based services they provide. In particular, blockchain networks and other decentralized services must include protocols to implement the judgments of state and federal courts in like manner as centralized providers do (for example, banks or other custodians). These protocols must include the ability to remedy the effects of illegal or mistaken transactions and to enforce other legal requirements as adjudicated by a court. 

By creating these minimum standards, Treasury will speed mass adoption and cement a leadership role for the United States in the future of blockchain. It will also leverage the power of private enforcement to advance its policy goals. Without such standards, however, it will be impossible to fulsomely enforce the law in decentralized environments and this will deprive all other policy initiatives of the effectiveness that the Executive Order envisions.”

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Blockchain,Crypto
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