A state of emergency is still in effect in California, where at least three people have died from severe weather, with more on the way. The intense rainfall that has caused a year’s worth of rain in two days has been attributed to climate change by many climate scientists.

Climate change impacts continue to buzz around in the media; however, one piece of technology that can help solve climate change is currently undergoing significant regulation, seemingly unnoticed by the general public.

The one technology? Blockchain, which has been described as a technology that lets users “store data in blocks linked together via cryptography,” rather than conventional computer security.

Blockchain technology could be a key part of the government’s push to reduce carbon emissions to net zero by 2050. However, regulation of cryptocurrency and, subsequently, blockchain technology is set to be a major battle in 2024.

There will be both threats and opportunities for crypto as it goes to the moon and beyond, which is why the new book, “Blockchain with American Character” by Todd White and Ralph Benko, is more important than ever. In it, the authors offer 10 key policy changes that could help blockchain thrive and ultimately unlock its potential as a climate solution. 

As President Biden hits the campaign trail, he’ll no doubt talk with voters about his biggest climate achievement, passing the Inflation Reduction Act. This legislation requires manufacturing transparency across the entire economy as a means of providing more information about how “green” our manufacturing really is.

While this may seem simple, it has been difficult to verify the details. Providing transparency in manufacturing is an uphill battle that companies have been fighting for decades. Now, with increased regulation, the problem is proving costly. Blockchain can solve this. 

Have you ever looked at a product in the supermarket labeled as, “sustainably sourced” and wondered if this was a gimmick or if there’s a real way to verify these claims?

Blockchain technology can answer this question. Information ranging from the exact mine that a material comes from to the amount of miles a chicken ran in their lifetime can be tracked using blockchain. In the past, information like this has been hard to come by, but with modern day technology, consumers will soon have all this information at their fingertips.

Blockchain technology offers an innovative way for companies to be more intentional about sourcing materials in an environmentally sustainable way. It can also provide transparency into the supply chain to help companies better optimize their business practices. 

This isn’t theoretical. Blockchain is already used to track the sourcing of coffee beans, the harvesting practices involved in chocolate making, the fishing companies that claim to catch “dolphin-safe” tuna, and even the authenticity of real Italian cheese. And now with the future of AI automations for green energy permitting, we could use blockchain in countless ways. 

While blockchain is already being used in environmentally sustainable practices, the IRS seems keen on stomping out the flame of this decentralized technology by imposing onerous new regulation on the technology.

In a letter to the Treasury Department, a bipartisan group of U.S. lawmakers said the IRS’ proposed rule will “inhibit innovation and harm the digital asset ecosystem, if finalized in its current form,” calling the IRS move “dangerous improper overreach.” 

Late last year, the chair of the House Financial Services Committee, Patrick McHenry, R-N.C., made crypto his top priority. This came after the Treasury Department’s proposed new rule to change the way cryptocurrency and by proxy, the blockchain technology upon which cryptocurrency is based, are regulated. 

Of course, among the threats of bad legislation, come opportunities for creating non-burdensome rules and regulations. Providing clear guardrails to help innovators use blockchain, will promote a new wave of creative problem solving. All of these innovative and entrepreneurial uses of technology could continue to thrive in a regulatory environment that provides clear bumpers for greenlighting the future of blockchain. 

It can be so easy to focus on the looming threats that we forget to see the opportunities ahead of us. There are many ways in which congress can act to ensure that blockchain is able to survive even the worst proposed rules that any agency can come up with. 

Much like how the Inflation Reduction Act still hasn’t reduced inflation, a year after its enactment, the Biden administration continues to pay lip service to climate change activists while actively harming innovative technologies that can help consumers make environmentally sound decisions. 

We should be optimistic about the future and support less-invasive regulatory policies. Hopefully 2024 will bring new opportunities and prosperity for all.

Charity Williamson is Virginia State Director of the Capitalist League.