With the US election approaching, can blockchain profit from it?

With less than a week to go before the US election, the world is paying close attention. Whether you care about it or not, both candidates seem to have endless topics to talk about, from fiscal policy to social policy.

So how do they view blockchain? Just like playing a game of Bingo, the word blockchain is at the center of the entire square. Without this word, you can't win. Compared with the past few years, the importance of blockchain is increasing day by day and it has become more significant.

In fact, neither candidate has made any official speeches on blockchain technology, so the industry has begun to speculate on what the two candidates can do for blockchain after taking office.

Some experts said they don't expect the new president to make any changes on this issue, no matter who ends up in the White House.

Percy Venegas from the academic research platform EconomyMonitor.com said that the federal government is still in the research and exploration stage of blockchain and there will be no changes after the election.

As the Federal Reserve works on monetary policy reforms and the Department of Homeland Security seeks Internet of Things (IoT) security tools, both departments have invested heavily in blockchain startups.

Some experts also believe that the direction of blockchain development depends on the final candidate for the US president.

Ira Schaefer from the international law firm Hogan Lovells said that Donald Trump has suggested that he would complete various government projects earlier in order to reduce budgets. Blockchain and smart contracts can reduce paperwork and speed up the completion of projects.

I can already imagine Mr. Trump promoting blockchain and smart contracts. These technologies can be used in government contracts, especially those involving small and medium-sized enterprises.

These technologies can reduce government expenditures by lowering contracting costs, while also speeding up construction progress and bringing project completion dates forward.

Schaefer added that the blockchain’s transaction records are transparent and immutable, so Hillary Clinton could also benefit from the technology, as she advocates for providing government services to people in need, and blockchain can record relevant information.

Mrs. Clinton can definitely use blockchain to protect the rights of the people. There are cases where corrupt lawyers forge documents to defraud poor people of their properties. Therefore, using blockchain to register property rights and other contracts can prevent such fraud cases from happening frequently, and Mrs. Clinton will definitely support this.

In less than a week, the answer will be revealed. However, in the meantime, the U.S. Office of the Comptroller of the Currency (OCC) has taken action. At the end of last month, the OCC released a report planning to establish an innovation office responsible for implementing an innovative technology framework for regulating innovative technologies such as blockchain. The ultimate goal of this innovation framework is to understand and respond to these emerging technologies involving banking reforms.

David Horton, head of digital innovation at Synechron, a global financial and technology consulting firm, said the OCC's creation of an innovation office demonstrates regulators' interest in blockchain and their awareness of the industry's regulatory challenges that need to be addressed.

Over the past six months, all major regulators (including the Securities and Exchange Commission and the Commodity Futures Trading Commission) have expressed support for innovative technologies and blockchain, providing a relaxed regulatory environment. In fact, most regulators believe that blockchain has the potential to improve the transparency of their projects, such as the Combined Audit Trail (CAT) proposed by the Securities and Exchange Commission. Since the last global economic crisis, not only banks, but also regulators have been under great pressure. They realize that once some important financial institutions (SIFIs) face bankruptcy, people always hope that they can step up and do something.

Horton said blockchain can provide a solution for the Faster Payments Task Force Roster (FPTF), establishing automated exchanges and enabling rapid transfer of funds. At the same time, regulators also need to face pressure from banks to avoid becoming a stumbling block to the innovative development of the banking industry.

The OCC’s Office of Innovation is scheduled to be officially established in the first quarter of next year, by which time the new president will have moved into the White House.