CRYPTOCURRENCY COMMISSION S.B. 888 (S-1):
ANALYSIS AS PASSED BY THE SENATE
Senate Bill 888 (Substitute S-1 as passed by the Senate)
Senate Committee: Economic and Small Business Development
House Committee: Financial Services
RATIONALE
Cryptocurrency is an electronic form of exchange that is independent of any central authority, such as a government or a bank. A blockchain is a public and immutable ledger of all cryptocurrency transactions. As of June 2022, there are believed to be roughly 19,000 different cryptocurrencies, and dozens of blockchain platforms, in existence. Some believe that poor monetary policy is a key player in the perpetuation of poverty, and that the welcoming of cryptocurrency in Michigan would make the State attractive to both human and financial capital. Accordingly, it has been suggested that a commission be created to investigate blockchain and cryptocurrency and to recommend further action for cryptocurrency expansion in Michigan.
CONTENT
The bill would enact the "Blockchain and Cryptocurrency Commission Act" to create the "Blockchain and Cryptocurrency Commission" and to prescribe its membership and duties, including the investigation of blockchain and cryptocurrency to develop a master plan of recommendations for fostering an expansion of blockchain technology and the cryptocurrency industry in Michigan.
Membership
Specifically, the bill would create the Blockchain and Cryptocurrency Commission in the Department of Licensing and Regulatory Affairs (LARA). "Blockchain" would mean a mathematically secured, chronological, and decentralized ledger or database. "Cryptocurrency" would mean digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, and that operates independently of a central bank.
The Commission would have to consist of the following members:
-- One individual who was appointed by the Speaker of the House of Representatives.
-- One individual who was appointed by the Minority Leader of the House of Representatives.
-- One individual who was appointed by the Senate Majority Leader.
-- One individual who was appointed by the Senate Minority Leader.
-- The Attorney General or his or her designee.
-- The Directors of the Departments of Treasury and Technology, Management, and Budget, or their respective designees.
-- One individual from a cryptocurrency company that was appointed by the Governor.
-- One individual from a cryptocurrency exchange who was appointed by the Governor.
-- One individual from a company with a business model that used block chain for noncryptocurrency transaction purposes who was appointed by the Governor.
-- Two individuals from institutions of higher education in the State who were appointed by the Governor.
-- One individual who was appointed by the chair of the House of Representatives Financial Services Committee.
-- One individual who was appointed by the chair of the Senate Insurance and Banking Committee.
-- One individual who was appointed by the chair of the House of Representatives Regulatory Reform Committee.
-- One individual who was appointed by the chair of the Senate Regulatory Reform Committee.
The first members of the Commission would have to be appointed wi