[House Report 119-70]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 119-70
======================================================================
DEPLOYING AMERICAN BLOCKCHAINS ACT OF 2025
_______
April 24, 2025.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Guthrie, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
[To accompany H.R. 1664]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 1664) 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 without
amendment and recommends that the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 1
Background and Need for Legislation.............................. 2
Committee Action................................................. 5
Committee Votes.................................................. 6
Oversight Findings and Recommendations........................... 6
New Budget Authority, Entitlement Authority, and Tax Expenditures 6
Congressional Budget Office Estimate............................. 6
Federal Mandates Statement....................................... 6
Statement of General Performance Goals and Objectives............ 6
Duplication of Federal Programs.................................. 7
Related Committee and Subcommittee Hearings...................... 7
Committee Cost Estimate.......................................... 7
Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 8
Advisory Committee Statement..................................... 8
Applicability to Legislative Branch.............................. 8
Section-by-Section Analysis of the Legislation................... 8
Changes in Existing Law Made by the Bill, as Reported............ 9
PURPOSE AND SUMMARY
H.R. 1664, the Deploying American Blockchains Act of 2025,
was introduced by Representative Cammack on February 27, 2025,
and was referred to the Committee on Energy and Commerce. H.R.
1664 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.
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\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\
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\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 Ticket 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-
collectible-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\
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\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.
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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 coretechnologies.''\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, DigiChina, Stanford University (December
2021). https://digichina.stanford.edu/work/translation-14th-five-year-
plan-for-national-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\Mikk Raud and Eli MacKinnon, China's Digital Current and
Blockchain Network: Disparate Projects of Two Sides of the Same Coin?,
DigiChina, Stanford University (March 8, 2022) https://
digichina.stanford.edu/work/chinas-digital-currency-and-blockchain-
network-disparate-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\
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\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_7eba1016ef5a4d98979b0167f38e4
b35.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 Former Chair Cathy McMorris 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 on December 27, 2020.
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\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%22search
%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\
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\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\
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\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\
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\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.
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\34\Electric Capital, Developer Report (October 1, 2023), https://
www.developerreport.com/
developer-report-geography.
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H.R. 1664, 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 April 8, 2025, the full Committee on Energy and Commerce
met in open markup session and ordered H.R. 1664, without
amendment, favorably reported to the House by a voice vote.
COMMITTEE VOTES
Clause 3(b) of rule XIII requires the Committee to list the
recorded votes on the motion to report legislation and
amendments thereto. There were no record votes taken in
connection with ordering H.R. 1664 reported.
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. 1664 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. 1664 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. 1664:
On February 1, 2023, the Subcommittee on
Innovation, Data, and Commerce held a hearing entitled
``Economic Danger Zone: How America Competes to Win the
Future Versus China.'' The Subcommittee received
testimony from:
Brandon Pugh, Policy and
Resident Senior Fellow, R Street Institute;
Jeff Farrah, Executive Director,
Autonomous Vehicle Industry Association;
Samm Sacks, Cyber Policy Fellow,
International Security Program, New America;
and
Marc Jarsulic, Senior Fellow and
Chief Economist, Center for American Progress.
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.'' 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 titled
``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.
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. 1664 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 2025''.
Section 2. Definitions
Section 2 defines key terms throughout the legislation.
Section 3. Department of Commerce leadership on blockchain
Section 3 designates the Secretary of Commerce to serve as
a 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.
Section 3 states that the Secretary shall 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 the
establishment of a ``Blockchain Deployment Program'' at the
Department of Commerce and an advisory committee 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.
Section 3 states that the Secretary shall, on an ongoing
basis, facilitate and support the development of a compendium
of identified or recommended guidelines or best practices for
the deployment of 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, and quantify the value and potential cost savings
associated with adoption.
Section 3 states that, in carrying out the section, the
Secretary shall consult regularly with stakeholders,
collaborate with private-sector stakeholder to identify
approaches to the deployment of blockchains, make public
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.
Section 3 states that nothing in the section 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.
Section 3 states that in implementing the section, 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
Section 4 states that 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.