[House Report 118-501]
[From the U.S. Government Publishing Office]


118th Congress }                                          { Report 
                        HOUSE OF REPRESENTATIVES
  2d Session   }                                          { 118-501

======================================================================
 
               DEPLOYING AMERICAN BLOCKCHAINS ACT OF 2023

                                _______
                                

  May 10, 2024.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mrs. Rodgers of Washington, from the Committee on Energy and Commerce, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 6572]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 6572) to direct the Secretary of Commerce to 
take actions necessary and appropriate to promote the 
competitiveness of the United States related to the deployment, 
use, application, and competitiveness of blockchain technology 
or other distributed ledger technology, and for other purposes, 
having considered the same, reports favorably thereon with an 
amendment and recommends that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     4
Background and Need for Legislation..............................     5
Committee Action.................................................     8
Committee Votes..................................................     9
Oversight Findings and Recommendations...........................    11
New Budget Authority, Entitlement Authority, and Tax Expenditures    11
Congressional Budget Office Estimate.............................    11
Federal Mandates Statement.......................................    11
Statement of General Performance Goals and Objectives............    11
Duplication of Federal Programs..................................    11
Related Committee and Subcommittee Hearings......................    11
Committee Cost Estimate..........................................    12
Earmark, Limited Tax Benefits, and Limited Tariff Benefits.......    12
Advisory Committee Statement.....................................    12
Applicability to Legislative Branch..............................    12
Section-by-Section Analysis of the Legislation...................    12
Changes in Existing Law Made by the Bill, as Reported............    14

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Deploying American Blockchains Act of 
2023''.

SEC. 2. DEFINITIONS.

  In this Act:
          (1) Blockchain technology or other distributed ledger 
        technology.--The term ``blockchain technology or other 
        distributed ledger technology'' means a distributed digital 
        database where data is--
                  (A) shared across a network of computers to create a 
                ledger of verified information among network 
                participants;
                  (B) linked using cryptography to maintain the 
                integrity of the ledger and to execute other functions; 
                and
                  (C) distributed among network participants in an 
                automated fashion to concurrently update network 
                participants on the state of the ledger and other 
                functions.
          (2) Covered nongovernmental representatives.--The term 
        ``covered nongovernmental representatives'' means 
        representatives as specified in the second sentence of section 
        135(b)(1) of the Trade Act of 1974 (19 U.S.C. 2155(b)(1)), 
        except that such term does not include representatives of non-
        Federal governments.
          (3) Secretary.--The term ``Secretary'' means the Secretary of 
        Commerce.
          (4) State.--The term ``State'' means each of the several 
        States, the District of Columbia, each commonwealth, territory, 
        or possession of the United States, and each federally 
        recognized Indian Tribe.
          (5) Token.--The term ``token'' means a transferable, digital 
        representation of information recorded on blockchain technology 
        or other distributed ledger technology.
          (6) Tokenization.--The term ``tokenization'' means the 
        process of creating a token.

SEC. 3. DEPARTMENT OF COMMERCE LEADERSHIP ON BLOCKCHAIN.

  (a) Function of Secretary.--The Secretary shall serve as the 
principal advisor to the President for policy pertaining to the 
deployment, use, application, and competitiveness of blockchain 
technology or other distributed ledger technology, applications built 
on blockchain technology or other distributed ledger technology, 
tokens, and tokenization.
  (b) Activities.--The Secretary shall take actions necessary and 
appropriate to support the leadership of the United States with respect 
to the deployment, use, application, and competitiveness of blockchain 
technology or other distributed ledger technology, applications built 
on blockchain technology or other distributed ledger technology, 
tokens, and tokenization, including by--
          (1) developing policies and recommendations on issues and 
        risks related to the deployment, use, application, and 
        competitiveness of blockchain technology or other distributed 
        ledger technology, applications built on blockchain technology 
        or other distributed ledger technology, tokens, and 
        tokenization, including the issues of decentralized identity, 
        cybersecurity, key storage and security systems, artificial 
        intelligence, fraud reduction, regulatory compliance, e-
        commerce, health care applications, and supply chain 
        resiliency;
          (2) supporting and promoting the stability, maintenance, 
        improvement, and security of blockchain technology or other 
        distributed ledger technology, applications built on blockchain 
        technology or other distributed ledger technology, tokens, and 
        tokenization;
          (3) helping to promote the leadership of the United States 
        with respect to the deployment, use, application, and 
        competitiveness of blockchain technology or other distributed 
        ledger technology, applications built on blockchain technology 
        or other distributed ledger technology, tokens, and 
        tokenization through the establishment of a Blockchain 
        Deployment Program in the Department of Commerce;
          (4) promoting the national security and economic security of 
        the United States with respect to blockchain technology or 
        other distributed ledger technology, applications built on 
        blockchain technology or other distributed ledger technology, 
        tokens, and tokenization;
          (5) supporting engagement with the public to promote the best 
        practices described in subsection (c);
          (6) considering policies and programs to encourage and 
        improve coordination among Federal agencies with respect to the 
        deployment of blockchain technology or other distributed ledger 
        technology, applications built on blockchain technology or 
        other distributed ledger technology, tokens, and tokenization;
          (7) examining--
                  (A) how Federal agencies can benefit from utilizing 
                blockchain technology or other distributed ledger 
                technology, applications built on blockchain technology 
                or other distributed ledger technology, tokens, and 
                tokenization;
                  (B) the current use by Federal agencies of blockchain 
                technology or other distributed ledger technology, 
                applications built on blockchain technology or other 
                distributed ledger technology, tokens, and 
                tokenization;
                  (C) the current and future preparedness and ability 
                of Federal agencies to adopt blockchain technology or 
                other distributed ledger technology, applications built 
                on blockchain technology or other distributed ledger 
                technology, tokens, and tokenization; and
                  (D) additional security measures Federal agencies may 
                need to take to--
                          (i) safely and securely use blockchain 
                        technology or other distributed ledger 
                        technology, applications built on blockchain 
                        technology or other distributed ledger 
                        technology, tokens, and tokenization, including 
                        to ensure the security of critical 
                        infrastructure; and
                          (ii) enhance the resiliency of Federal 
                        systems against cyber threats to blockchain 
                        technology or other distributed ledger 
                        technology, applications built on blockchain 
                        technology or other distributed ledger 
                        technology, tokens, and tokenization;
          (8) supporting coordination of the activities of the Federal 
        Government related to the security of blockchain technology and 
        other distributed ledger technology, applications built on 
        blockchain technology or other distributed ledger technology, 
        tokens, and tokenization; and
          (9) not later than 180 days after the date of the enactment 
        of this Act, establishing advisory committees to support the 
        adoption of blockchain technology or other distributed ledger 
        technology, applications built on blockchain technology or 
        other distributed ledger technology, tokens, and tokenization, 
        the membership of which shall include--
                  (A) the Secretary;
                  (B) representatives of Federal agencies (as 
                determined necessary by the Secretary); and
                  (C) nongovernmental stakeholders with expertise 
                related to blockchain technology or other distributed 
                ledger technology, including--
                          (i) blockchain technology or other 
                        distributed ledger technology infrastructure 
                        operators, suppliers, service providers, and 
                        vendors;
                          (ii) application developers building on 
                        blockchain technology or other distributed 
                        ledger technology;
                          (iii) developers and organizations supporting 
                        the advancement and deployment of public 
                        blockchain technology or other distributed 
                        ledger technology;
                          (iv) subject matter experts representing 
                        industrial sectors that can benefit from 
                        blockchain technology or other distributed 
                        ledger technology;
                          (v) small, medium, and large businesses;
                          (vi) think tanks and academia;
                          (vii) nonprofit organizations and consumer 
                        groups;
                          (viii) cybersecurity experts;
                          (ix) rural stakeholders;
                          (x) covered nongovernmental representatives;
                          (xi) artists and the content creator 
                        community; and
                          (xii) other stakeholders with relevant 
                        expertise (as determined necessary by the 
                        Secretary).
  (c) Best Practices.--The Secretary shall, on an ongoing basis, 
facilitate and support the development and dissemination of best 
practices with respect to blockchain technology or other distributed 
ledger technology, applications built on blockchain technology or other 
distributed ledger technology, tokens, and tokenization that--
          (1) support the private sector, the public sector, and 
        public-private partnerships in the deployment of technologies 
        needed to advance the capabilities of blockchain technology or 
        other distributed ledger technology, applications built on 
        blockchain technology or other distributed ledger technology, 
        tokens, and tokenization;
          (2) support the interoperability of blockchain technology or 
        other distributed ledger technology, applications built on 
        blockchain technology or other distributed ledger technology, 
        tokens, and tokenization;
          (3) support operations, including hashing and key storage and 
        security systems, that form the foundation of blockchain 
        technology or other distributed ledger technology, applications 
        built on blockchain technology or other distributed ledger 
        technology, tokens, and tokenization;
          (4) reduce cybersecurity and other risks that may compromise 
        blockchain technology or other distributed ledger technology, 
        applications built on blockchain technology or other 
        distributed ledger technology, tokens, and tokenization;
          (5) reduce uncertainty and risks in the use of blockchain 
        technology or other distributed ledger technology, applications 
        built on blockchain technology or other distributed ledger 
        technology, tokens, and tokenization; and
          (6) quantify the value and potential cost savings associated 
        with adoption of blockchain technology or other distributed 
        ledger technology, applications built on blockchain technology 
        or other distributed ledger technology, tokens, and 
        tokenization, including through comparative analyses of 
        competing and existing technologies within specific industry 
        applications.
  (d) Additional Requirements.--In carrying out this section, the 
Secretary shall--
          (1) consult closely and regularly with stakeholders, 
        including private sector individuals and entities, and 
        incorporate industry expertise;
          (2) collaborate with private sector stakeholders to identify 
        prioritized, flexible, repeatable, performance-based, and cost-
        effective approaches to the deployment of blockchain technology 
        or other distributed ledger technology, applications built on 
        blockchain technology or other distributed ledger technology, 
        tokens, and tokenization;
          (3) disseminate research and information pertaining to the 
        use of, and marketplace for, blockchain technology or other 
        distributed ledger technology, applications built on blockchain 
        technology or other distributed ledger technology, tokens, and 
        tokenization;
          (4) develop standardized terminology for, and promote common 
        understanding of, blockchain technology or other distributed 
        ledger technology, applications built on blockchain technology 
        or other distributed ledger technology, tokens, and 
        tokenization;
          (5) ensure the best practices described in subsection (c) 
        facilitate the ease of use of blockchain technology or other 
        distributed ledger technology, applications built on blockchain 
        technology or other distributed ledger technology, tokens, and 
        tokenization;
          (6) support open-source infrastructure, data management, and 
        authentication activities with respect to blockchain technology 
        or other distributed ledger technology, applications built on 
        blockchain technology or other distributed ledger technology, 
        tokens, and tokenization; and
          (7) consider the needs and interests of both the private and 
        public sector, including small businesses and Federal, State, 
        and local governments.
  (e) Rules of Construction.--Nothing in this section may be construed 
to--
          (1) require a private entity to share information with the 
        Secretary;
          (2) require a private entity to request assistance from the 
        Secretary;
          (3) require a private entity to implement any measure or 
        recommendation suggested by the Secretary in response to a 
        request by the private entity; or
          (4) require the adoption of the best practices described in 
        subsection (c).
  (f) Consultation.--In implementing this section, the Secretary may, 
as appropriate, consult with the heads of relevant Federal agencies.
  (g) Termination of Program.--The Blockchain Deployment Program 
established pursuant to subsection (b)(3) shall terminate on the date 
that is 7 years after the date of the enactment of this Act.

SEC. 4. REPORT TO CONGRESS.

  Not later than 2 years after the date of the enactment of this Act, 
and annually thereafter, the Secretary shall make public on the website 
of the Department of Commerce and submit to the Committee on Energy and 
Commerce of the House of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate a report that includes--
          (1) a description of the activities of the Secretary under 
        this Act during the preceding year;
          (2) any recommendations by the Secretary for additional 
        legislation to strengthen the competitiveness of the United 
        States with respect to blockchain technology or other 
        distributed ledger technology, applications built on blockchain 
        technology or other distributed ledger technology, tokens, and 
        tokenization; and
          (3) a description of any emerging risks and long-term trends 
        with respect to blockchain technology or other distributed 
        ledger technology, applications built on blockchain technology 
        or other distributed ledger technology, tokens, and 
        tokenization.

                          PURPOSE AND SUMMARY

    The legislation would direct the Secretary of Commerce to 
take actions necessary and appropriate to promote the 
competitiveness of the United States related to the deployment, 
use, application, and competitiveness of blockchain technology 
or other distributed ledger technology, and for other purposes.

                  BACKGROUND AND NEED FOR LEGISLATION

    Blockchains, a subset of distributed ledger technology, are 
an emerging general-purpose technology with many possible 
applications. Through various design approaches, blockchains 
can be used to track products through a supply chain,\1\ give 
Americans increased control over their data and digital 
identity,\2\ and assist in the auditing of companies.\3\ 
Congress is working to promote the competitiveness of the 
United States with regard to blockchain technologies.
---------------------------------------------------------------------------
    \1\Vishal Gaur and Abhinav Gaiha, Building a Transparent Supply 
Chain, Harvard Business Review (June 2020), https://hbr.org/2020/05/
building-a-transparent-supply-chain.
    \2\Gregory Rocco, Decentralized Identity and Web3, SpruceID (August 
5, 2022) https://blog.spruceid.com/decentralized-identity-and-web3/.
    \3\CoinDesk, Paul Brody Discusses Fidelity Digital Assets Utilizing 
EY's Blockchain Analytics Tool, CoinDesk (October 17, 2023), https://
www.coindesk.com/video/paul-brody-discusses-fidelity-digital-assets-
utilizing-eys-blockchain-analytics-tool/.
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    One unique aspect of blockchains is the use of tokens. A 
token is a transferrable, digital representation of information 
recorded on blockchain technology or other distributed ledger 
technology. As a general-purpose container of information, 
tokens are used to represent all types of information, 
including collectibles like a digital baseball card,\4\ a 
ticket to a live event,\5\ or even a state-issued driver's 
license.\6\
---------------------------------------------------------------------------
    \4\Henry Palattella, Topps to release Baseball NFT Collection, 
Major League Baseball (April 26, 2022) https://www.mlb.com/news/topps-
baseball-nft-collection.
    \5\Live Nation Entertainment, Live Nation Unveils Live Stubs 
Digital Collectible NFT Sticket Stubs, Minting First Ever Set for the 
Swedeish House Mafia: Paradise Again Tour, (October 29, 2021), https://
www.livenationentertainment.com/2021/10/live-nation-unveils-live-stubs-
digital-col lectible-nft-ticket-stubs-minting-first-ever-set-for-the-
swedish-house-mafia-paradise-again-tour/.
    \6\Elissa Maercklein, Credible: Introducing Mobile Driver's 
Licenses, SpruceID (December 8, 2022) https://blog.spruceid.com/
credible-introducing-mobile-drivers-licenses/.
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    Today, many of the challenges facing the United States are 
digital and technological, with the leading countries writing 
technical standards for those lagging behind. It is critical 
that America--not China-- set the rules of the road for the 
technologies of tomorrow. In a March 2023 report titled ``The 
New American Foreign Policy of Technology,'' the German 
Marshall Fund stated that ``U.S. leadership is needed to ensure 
that nationalist and authoritarian forces do not fill the 
resulting structural vacuum in an increasingly digital 
world.''\7\
---------------------------------------------------------------------------
    \7\Karen Kornbluh and Julia Trehu, The New American Foreign Policy 
of Technology, the German Marshall Fund of the United States (March 13, 
2023), https://www.gmfus.org/news/new-american-foreign-policy-
technology.
---------------------------------------------------------------------------
    Blockchains are a central component of the Chinese 
Communist Party's (CCP's) strategy to undermine the U.S.-led 
global order. In remarks to the Political Bureau of the Central 
Committee of the CCP in 2019, President Xi remarked, ``We must 
take the blockchain as an important breakthrough for 
independent innovation of core technologies.''\8\ In its 14th 
Five-Year plan, the CCP's Central Commission for Cybersecurity 
and Information makes clear its goal to become the global 
leader in the digital economy by 2025.\9\ In 2019, the CCP 
established the Blockchain-based Service Network (BSN),\10\ a 
low-cost blockchain infrastructure layer closely tied with the 
CCP's Digital Yuan project and described as ``the backbone of a 
potential new phase of the global internet.''\11\ Services 
provided by BSN, such as the Interchain Communications Hub, Key 
Trust Mode, and Oracles Services, enabled the BSN to mediate 
and observe user activity on-chain.\12\ According to the BSN 
Introduction Whitepaper, ``[a]ll matters of the BSN, including 
regulatory design, technical standards, development and 
operations management, business models and pricing are 
determined by the BSN Development Association.''\13\ The BSN 
Development Association is composed of government agencies like 
the State Information Center of China and sanctioned entities 
such as China Mobile Communications.\14\ The BSN Secretary 
General, stated that they were building a global blockchain 
network where ``China controls the rights to internet 
access.''\15\
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    \8\Brandon Stewart, China Embracing Blockchain Technology While The 
US Struggles With Libra, readBTC, October 27, 2019. https://
www.readbtc.com/stories/china-embracing-blockchain-technology-libra-
struggles.
    \9\Rogier Creemers, et. Al., Translation: 14th Five-Year Plan for 
National Informatization
(December 2021). https://digichina.stanford.edu/work/translation-14th-
five-year-plan-for-na tional-informatization-dec-2021/.
    \10\Ledger Insights, China's national blockchain infrastructure 
takes shape (December 2, 2019) https://www.ledgerinsights.com/chinas-
national-blockchain-infrastructure-bsn/.
    \11\https://digichina.stanford.edu/work/chinas-digital-currency-
and-blockchain-network-dis parate-projects-or-two-sides-of-the-same-
coin/.
    \12\Blockchain-based Service Network, Blockchain-based Service 
Network User Manual version 1.8.5, (February 8, 2023) https://
www.bsnbase.io/static/tmpFile/bzsc/index.html.
    \13\Blockchain-based Service Network Development Association, 
Blockchain-based Service Network Introductory White Paper (February 5, 
2020), https://bsnbase.io/static/tmpFile/BSNIntroductionWhitepaper.pdf.
    \14\Supra Note 13; Executive Order 14032, Addressing the Threat 
From Securities Investments That Finance Certain Companies of the 
People's Republic of China, (June 3, 2021) https://ofac.treasury.gov/
media/99111/download?inline.
    \15\24 minute mark, ``How Blockchain Technology and BSN Support 
Fintech Development,'' YouTube, November 4, 2020. https://
www.youtube.com/watch?v=k9Gtq-j_3U.
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    On December 19, 2023, the Ministry of Industry and 
Information Technology of the People's Republic of China 
released ``Reply to Proposal No. 02969 of the First Session of 
the 14th Chinese People's Political Consultive Conference 
(CPPCC) National Committee.''\16\ This statement outlines the 
Ministry's previous work and future plans to ``seize the 
opportunity to seize Web3.0.''\17\ Previous work of the 
Ministry includes continuously optimizing the policy 
environment, deepening technical expertise, accelerating pilots 
of blockchain applications in 16 characteristic fields, and 
promoting the establishment of a blockchain technical standards 
committee.\18\ Future plans of the Ministry include developing 
a national strategy document for blockchain development, to 
strengthen research into the core technologies that underpin 
blockchains, leadership in the development of international 
blockchain standards, and to improve the public's understanding 
of blockchain technology by promoting application pilots such 
as distributed digital identity.\19\
---------------------------------------------------------------------------
    \16\Ministry of Industry and Information Technology of the People's 
Republic of China, Reply to Proposal No. 02969 of the First Session of 
the 14th CPPCC National Committee (December 12, 2023), https://
www.miit.gov.cn/zwgk/jytafwgk/art/2023/art_7eba1016ef5a4d98979b0167f38 
e4b35.html.
    \17\Ibid.
    \18\Ibid.
    \19\Ibid.
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    The Committee on Energy and Commerce plays a vital role in 
advancing American competitiveness and global technological 
leadership. In March 2016, the Subcommittee on Commerce, 
Manufacturing, and Trade held one of the first hearings on 
blockchains. The title of that hearing was ``Disruptor Series: 
Digital Currency and Blockchain Technology.''\20\ Other efforts 
followed over the years, which culminated in the inclusion of 
legislation championed by Rep. Brett Guthrie\21\ and Rep. 
Darren Soto\22\ in Chair Rodgers' bipartisan legislation with 
then-Rep. Bobby Rush, known as the American COMPETE Act.\23\ 
That legislation became Title XV of the ``Consolidated 
Appropriations Act, 2021''\24\ and was signed into law in on 
December 27, 2020.
---------------------------------------------------------------------------
    \20\Committee on Energy and Commerce, Disrupter Series: Digital 
Currency and Blockchain Technology, (March 16, 2016), https://
docs.house.gov/Committee/Calendar/ByEvent.aspx?
EventID=104677.
    \21\H.R. 6938, Advancing Block Chain Act (116th Congress), https://
www.congress.gov/bill/116th-congress/house-bill/
6938?q=%7B%22search%22%3A%5B%22%22%5D%7D&s=1&r=5.
    \22\H.R. 8153 Blockchain Innovation Act (116th Congress), https://
www.congress.gov/bill/116th-congress/house-bill/8153/
text?s=2&r=5&q=%7B%22search%22%3A%5B%22%22%5D%7D.
    \23\H.R. 8132, American Competitiveness of a More Productive 
Emerging Tech Economy Act (116th Congress), https://www.congress.gov/
bill/116th-congress/house-bill/8132?q=%7B%22 
search%22%3A%5B%22%22%5D%7D&s=3&r=3.
    \24\Consolidated Appropriations Act, 2021, Public Law 116-260 (Dec. 
27, 2020), https://www.congress.gov/116/plaws/publ260/PLAW-
116publ260.pdf.
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    The American COMPETE Act required the Department of 
Commerce to study and report on emerging technologies like 
blockchain.\25\ The reports, completed in August 2023, included 
nine outstanding challenges and recommendations on ``. . . how 
the U.S. Federal Government can ensure that the technology 
develops in the service of U.S. values.''\26\ The report 
further described numerous applications for blockchain 
technology such as supply chains, personal data and identity 
management, loyalty programs, and fraud reduction, to name a 
few.\27\
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    \25\Ibid.
    \26\National Institute of Standards and Technology, American 
Competitiveness of a More Productive Emerging Tech Economy Act (The 
American COMPETE Act) (July 2023) (NIST GCR 23-039).
    \27\Ibid.
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    In September 2022, the Department of Commerce completed a 
report titled ``Responsible Advancement of U.S. Competitiveness 
in Digital Assets.''\28\ This report noted ``[o]utside of 
explicit financial use cases, the ability to tokenize many 
different types of assets could lead to a world in which many 
physical assets (i.e. objects) have a digital counterpart, thus 
opening the door to numerous use cases for tracking and 
recording actions on those assets.''\29\ The report states that 
``U.S. competitiveness in this space could be important to 
continued U.S. economic leadership.''\30\
---------------------------------------------------------------------------
    \28\U.S. Department of Commerce, Responsible Advancement of U.S. 
Competitiveness in Digital Assets (September 1, 2022), https://
www.commerce.gov/sites/default/files/2022-09/Digital-Asset-
Competitiveness-Report.pdf.
    \29\Ibid, 2.
    \30\Ibid, 2.
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    These two blockchain reports from the Department of 
Commerce underline the agency's mission:

          The Department of Commerce's mission is to create the 
        conditions for economic growth and opportunity for all 
        communities. Through its 13 bureaus, the Department 
        works to drive U.S. economic competitiveness, 
        strengthen domestic industry, and spur the growth of 
        quality jobs in all communities across the country. The 
        Department serves as the voice of business in the 
        Federal Government, and at the same time, the 
        Department touches and serves every American every 
        day.\31\

    \31\U.S. Department of Commerce, About Commerce, https://
www.commerce.gov/about.
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    Building on its mission statement, the Department of 
Commerce's 2022-2026 Strategic Plan includes Strategic 
Objective 1.2, ``Accelerate the development, commercialization, 
and deployment of critical and emerging technologies.''\32\ The 
objective states that ``[t]o maintain its global leadership, 
the Nation must innovate more and innovate faster than the rest 
of the world'' and that ``[t]he Department will also work 
closely with industry to create the necessary conditions for 
innovation in the public and private sectors.''\33\
---------------------------------------------------------------------------
    \32\U.S. Department of Commerce, Strategic Plan 2022-2026, https://
www.commerce.gov/sites/default/files/2022-03/DOC-Strategic-Plan-
2022%E2%80%932026.pdf.
    \33\Ibid.
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    The U.S. should develop policies that support the 
competitiveness of the United States with regard to blockchain 
technology to ensure China does not control the world's rights 
to access the internet. Despite the dominance of Silicon Valley 
during the early days of the internet, recent reports show that 
the United States is losing market share amongst blockchain 
developers.\34\ Meaningful support for American technological 
leadership depends on open dialogue and collaboration among the 
Federal government, industry, academia, civil society, and 
other engaged stakeholders. The mission of the Department of 
Commerce is to promote American leadership and global 
competitiveness, making it the federal agency best positioned 
agency to promote the growth, development, and deployment of 
blockchains, applications built on blockchains, and tokens.
---------------------------------------------------------------------------
    \34\Electric Capital, Developer Report (October 1, 2023), https://
www.developerreport.com/
developer-report-geography.
---------------------------------------------------------------------------
    H.R. 6572, the Deploying American Blockchains Act ensures 
that the Department of Commerce is taking actions necessary and 
appropriate to promote the competitiveness of the United States 
related to blockchain technologies. It is best to take such 
actions now with our values driving the process, rather than 
allowing our adversaries to set the rules of the road. Congress 
can ensure we lead the next era of American innovation and 
entrepreneurship with a regulatory environment that keeps pace 
with the constantly evolving tech sector.

                            COMMITTEE ACTION

    On June 7, 2023, the Subcommittee on Innovation, Data, and 
Commerce held a hearing on blockchains. The title of the 
hearing was ``Building Blockchains: Exploring Web3 and Other 
Applications for Distributed Ledger Technologies.'' Witness 
testimony focused on the ways blockchains and other distributed 
ledger technologies are a general-purpose technology with a 
wide array of commercial applications. The Subcommittee 
received testimony from:
           Carla L. Reyes, Associate Professor of Law, 
        SMU Dedman School of Law;
           Hasshi Sudler, Professor and Chief Executive 
        Officer, Villanova University College of Engineering 
        and Internet Think Tank, Inc.;
           Ryan Wyatt, President, Polygon Labs; and,
           Ross Schulman, Senior Fellow, 
        Decentralization, Electronic Frontier Foundation.
    On September 20, 2023, the Subcommittee on Innovation, 
Data, and Commerce held a hearing on multiple bills, including 
draft text of the bill ``To establish a supply chain resiliency 
and crisis response program in the Department of Commerce, and 
for other purposes.'' The title of the hearing was ``Mapping 
America's Supply Chains: Solutions to Unleash Innovation, Boost 
Economic Resilience, and Beat China.'' The Subcommittee 
received testimony from:
           Chris Griswold, Policy Director, American 
        Compass;
           Deena Ghazarian, Founder and Chief Executive 
        Officer, Austere;
           Justin Slaughter, Policy Director, Paradigm; 
        and,
           Scott Paul, President, Alliance for American 
        Manufacturing.
    On November 2, 2023, the Subcommittee on Innovation, Data, 
and Commerce met in open markup session and forwarded the 
discussion draft, without amendment, to the full Committee by a 
voice vote.
    H.R. 6572 was introduced by Rep. Larry Bucshon (IN-08) on 
December 4, 2023, and referred to the Committee on Energy and 
Commerce.
    On December 5 and 6, 2023, the full Committee on Energy and 
Commerce met in open markup session and ordered H.R. 6572, as 
amended, favorably reported to the House by a record vote of 46 
yeas and 0 nays.

                            COMMITTEE VOTES

    Clause 3(b) of rule XIII requires the Committee to list the 
record votes on the motion to report legislation and amendments 
thereto. The following reflects the record votes taken during 
the Committee consideration:


                 OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII, the Committee held hearings and made findings that 
are reflected in this report.

   NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES

    Pursuant to clause 3(c)(2) of rule XIII, the Committee 
finds that H.R. 6572 would result in no new or increased budget 
authority, entitlement authority, or tax expenditures or 
revenues.

                  CONGRESSIONAL BUDGET OFFICE ESTIMATE

    Pursuant to clause 3(c)(3) of rule XIII, at the time this 
report was filed, the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974 was not available.

                       FEDERAL MANDATES STATEMENT

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

         STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    Pursuant to clause 3(c)(4) of rule XIII, the general 
performance goal or objective of this legislation is to direct 
the Secretary of Commerce to take actions necessary and 
appropriate to promote the competitiveness of the United States 
related to the deployment, use, application, and 
competitiveness of blockchains technology or other distributed 
ledger technology.

                    DUPLICATION OF FEDERAL PROGRAMS

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 6572 is known to be duplicative of another Federal 
program, including any program that was included in a report to 
Congress pursuant to section 21 of Public Law 111-139 or the 
most recent Catalog of Federal Domestic Assistance.

              RELATED COMMITTEE AND SUBCOMMITTEE HEARINGS

    Pursuant to clause 3(c)(6) of rule XIII, the following 
related hearings were used to develop or consider H.R. 6572:
           On February 1, 2023, the Subcommittee on 
        Innovation, Data, and Commerce held a hearing titled 
        ``Economic Danger Zone: How America Competes to Win the 
        Future Versus China.'' The hearing focused on the ways 
        the Chinese Communist Party is challenging the United 
        States for global leadership in emerging technologies 
        like AI and blockchain. Witness testimony outlined the 
        ways the CCP has doubled down on its intent to become 
        the global leader in the deployment of emerging 
        technologies and highlighted the urgent need for the 
        United States government to engage and ensure continued 
        American leadership.
           On June 7, 2023, the Subcommittee on 
        Innovation, Data, and Commerce held a hearing titled 
        ``Building Blockchains: Exploring Web3 and Other 
        applications for Distributed Ledger Technologies.'' 
        Witness testimony emphasized that blockchains and 
        distributed ledger technologies are a new foundational 
        technology that provides individuals and businesses new 
        ways to access, record, and validate digital activity. 
        Testimony further outlined the ways blockchains and 
        distributed ledger technology can provide new ways to 
        secure personal information, increase transparency in 
        the marketplace, and eliminate middlemen. The hearing 
        expanded on previous testimony regarding global 
        competitiveness by highlighting the vast number of 
        possible applications for the technology and the ways 
        the United States was ceding its industry leadership.
           On September 20, 2023, the Subcommittee on 
        Innovation, Data, and Commerce held a hearing titled 
        ``Mapping America's Supply Chains: Solutions to Unleash 
        Innovation, Boost Economic Resilience, and Beat 
        China.'' Witness testimony outlined the ways 
        blockchains could be used to make our supply chains 
        more resilient while emphasizing the importance of 
        building this emerging technology in America.

                        COMMITTEE COST ESTIMATE

    Pursuant to clause 3(d)(1) of rule XIII, the Committee 
adopts as its own the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974. At the time this report was 
filed, the estimate was not available.

       EARMARK, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS

    Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 6572 contains no earmarks, limited 
tax benefits, or limited tariff benefits.

                      ADVISORY COMMITTEE STATEMENT

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title

    Section 1 provides that the Act may be cited as the 
``Deploying American Blockchains Act of 2023''.

Section 2 Definitions

    Section 2 defines certain terms throughout the legislation 
including blockchain technology or other distributed ledger 
technology, token, and tokenization.
    The term ``blockchain technology or other distributed 
ledger technology'' means a distributed digital database where 
data is shared across a network of computers to create a ledger 
of verified information among network participants, linked 
using cryptography to maintain the integrity of the ledger and 
to execute other functions, and distributed among network 
participants in an automated fashion to update concurrently 
network participants on the state of the ledger and other 
functions.
    The term ``token'' means a transferrable, digital 
representation of information recorded on blockchain technology 
or other distributed ledger technology. The term 
``tokenization'' means the process of creating a token.

Section 3. Department of Commerce leadership on Blockchain

    The Secretary of Commerce shall serve as the principal 
advisor to the President pertaining to the deployment, use, 
application and competitiveness of blockchain technology or 
other distributed ledger technology, applications built on 
blockchain technology or other distributed ledger technology, 
tokens, or tokenization.
    The Secretary shall take actions necessary and appropriate 
to support the leadership of the United States with respect to 
the deployment, use, application, and competitiveness of 
blockchain technology, other distributed ledger technology, 
applications built on blockchain technology or other 
distributed ledger technology, tokens, or tokenization.
    Such activities shall include establishing a Blockchain 
Deployment Program to support American leadership and the 
establishment of advisory committees to support the deployment, 
use, application, and competitiveness of blockchains technology 
or other distributed ledger technology, applications built on 
blockchain technology or other distributed ledger technology, 
tokens, and tokenization.
    The Secretary shall, on an ongoing basis, facilitate and 
support the development and dissemination of best practices 
with respect to blockchain technology or other distributed 
ledger technology, applications built on blockchain technology 
or other distributed ledger technology, tokens, and 
tokenization. Such best practices shall be designed to support 
interoperability, reduce cybersecurity risk, support 
operations, reduce uncertainty, and quantify the value and 
potential cost savings associated with adoption.
    In carrying out Section 3, the Secretary shall consult 
regularly with stakeholders, collaborate with private-sector 
stakeholder to identify approaches to the deployment of 
blockchains, disseminate research and information on the use of 
blockchains, develop standardized terminology, develop best 
practices which ease the use of blockchains, support open-
source infrastructure, and consider the needs of both the 
public and private sector.
    Nothing in Section 3 may be construed to require a private 
entity to share information with, request assistance from, 
implement any measure or recommendation suggested by, or adopt 
the best practices developed by, the Secretary of Commerce.
    In implementing Section 3, the Secretary of Commerce may 
consult with the heads of relevant Federal agencies. The 
Blockchain Deployment Program established in Section 3 shall 
terminate on the date that is 7 years after the date of the 
enactment of this Act.

Section 4. Report to Congress

    Not later than 2 years after the date of the enactment of 
this Act, and annually thereafter, the Secretary of Commerce 
shall make publicly available and submit to the Committee on 
Energy and Commerce of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of the 
Senate a report on the activities of the Secretary under this 
Act for the previous year, any recommendation for additional 
legislation to strengthen American competitiveness with respect 
to blockchains, and a description of any emerging risks and 
long term trends with respect to blockchains.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    This legislation does not amend any existing Federal 
statute.

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