Overview
Title
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.
ELI5 AI
H.R. 6572 is a plan to help the United States be really good at using new technology called blockchain, which is like a digital box of secrets that keeps everything super safe. The bill asks a special person to make sure everyone works well together and to give Congress updates on how things are going.
Summary AI
H.R. 6572, titled the “Deploying American Blockchains Act of 2023,” instructs the Secretary of Commerce to promote the U.S.'s competitiveness in blockchain and distributed ledger technology. The bill outlines responsibilities for developing policies, encouraging best practices, and supporting collaboration among federal agencies and private stakeholders to boost blockchain application and security. It also requires establishing a Blockchain Deployment Program and demands regular reporting to Congress on progress and recommendations. This program is set to terminate seven years after the bill's enactment.
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AnalysisAI
The proposed legislation titled the "Deploying American Blockchains Act of 2023" aims to enhance the United States' position in the rapidly evolving field of blockchain and distributed ledger technology. Introduced in the House of Representatives in December 2023, this bill directs the Secretary of Commerce to undertake various initiatives to bolster the nation's competitiveness in blockchain technology applications.
General Summary of the Bill
The bill assigns the Secretary of Commerce as the principal advisor to the President on blockchain-related policies. It emphasizes the need for the U.S. to take a leadership role in deploying and using blockchain technology to maintain competitiveness. The Secretary is tasked with developing policies, establishing programs, and coordinating with public and private sectors to support blockchain adoption. The bill includes plans to create advisory committees with a range of stakeholders and mandates an annual report to Congress on activities and progress related to blockchain technology.
Summary of Significant Issues
One of the standout issues with this bill is its broad and sometimes vague definitions, particularly concerning "blockchain technology or other distributed ledger technology." This lack of clarity could lead to regulatory gaps as new technologies emerge. The extensive role assigned to the Secretary of Commerce may also risk overreach, with broad responsibilities potentially leading to government encroachment in the tech sector. Furthermore, the bill uses repetitive and verbose language, which might hinder understanding and lead to misinterpretation.
In terms of stakeholder implications, while the bill includes various industry and non-governmental stakeholders in its advisory councils, the criteria for these selections remain undefined. This could lead to concerns about favoritism or bias. The bill's broad focus on enhancing U.S. competitiveness also lacks clear objectives, which might result in policy recommendations that do not fully align with national interests.
Public Impact
For the general public, this bill signifies an increased governmental focus on supporting and potentially regulating blockchain technologies. If implemented effectively, the initiatives could foster innovation and economic growth in the tech industry, creating jobs and enhancing service delivery in sectors such as healthcare and supply chain management.
Conversely, without clear limitations, there is a risk of government overreach into technological innovation, potentially stifling the very entrepreneurship and flexibility that drive the sector. The costs associated with implementing and managing the planned programs also raise potential issues of financial oversight.
Stakeholders Impact
The potential benefits for blockchain developers and companies are significant, as the bill proposes to create programs and policies that support the technology's deployment and competitiveness. This could lead to more opportunities for businesses, academic researchers, and non-profits working in blockchain.
However, the absence of specific criteria for stakeholder participation in advisory committees may create an uneven playing field, favoring larger corporations with more resources to engage effectively. Small and medium-sized enterprises or underrepresented groups might find it challenging to have their voices heard.
Broadly, while the Act aims to position the United States as a leader in blockchain technology, it must address these significant issues to ensure that it supports a diverse range of stakeholders and aligns with broader public interests.
Issues
The definition of 'blockchain technology or other distributed ledger technology' in Section 2 might lead to ambiguity, as it does not account for the continuous development of new types of distributed ledgers that could fall outside current implementations, potentially leading to legal or regulatory gaps.
The role and powers of the Secretary in Section 3 are broad, potentially leading to overreach without clearer limitations or specifications on actions, which could raise concerns about governmental overextension into the technology sector.
Section 3 uses overly verbose language when discussing 'blockchain technology or other distributed ledger technology, applications built on blockchain technology or other distributed ledger technology, tokens, and tokenization,' which could hinder understanding and lead to misinterpretation.
The definition of 'State' in Section 2 includes various entities such as Indian Tribes and territories, but does not clarify the implications for their jurisdiction or participation, potentially leading to confusion or oversight of specific legal considerations.
The broad use of the term 'competitiveness of the United States' in Section 4 does not provide clear objectives, leaving room for interpretation, which may result in actions or recommendations that favor certain groups or lack alignment with broader national interests.
The Secretary's reporting obligations regarding 'emerging risks and long-term trends' in Section 4 could benefit from more specific examples or criteria, as the vague language currently presents challenges in ensuring accountability and comprehensiveness.
The lack of defined budget or financial limitations for preparing the Secretary's report in Section 4 could potentially lead to unchecked spending, raising financial oversight concerns.
The lack of specificity in Section 3, points (b)(6) and (b)(7), on specific actions or outcomes for Federal agency coordination and examination could lead to ambiguity in implementation, raising concerns about effective and efficient government operations.
The termination clause of the Blockchain Deployment Program in Section 3(g) does not specify an evaluation or review process for program effectiveness before termination, which may result in prematurely ending a potentially beneficial initiative without understanding its impact.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The section states that the official short title of this legislation is the “Deploying American Blockchains Act of 2023”.
2. Definitions Read Opens in new tab
Summary AI
The section provides definitions for terms used in the Act, including "blockchain technology," which is a secure and shared digital database; "covered nongovernmental representatives," who are certain representatives involved in trade discussions but not from governments; "Secretary," referring to the Secretary of Commerce; "State," which includes U.S. states, territories, and Indian Tribes; and "token" and "tokenization," which relate to digital items created and recorded through blockchain.
3. Department of Commerce leadership on blockchain Read Opens in new tab
Summary AI
The section outlines the role of the Secretary of Commerce in advising the President and supporting the U.S. leadership in blockchain technology. It details activities like developing policies, promoting U.S. leadership, and establishing advisory committees, while emphasizing collaboration with various stakeholders and maintaining security.
4. Report to Congress Read Opens in new tab
Summary AI
The Secretary is required to publicly share on the Department of Commerce's website and submit to certain Congressional committees a yearly report that details their activities under this Act, offers any suggestions for new laws to enhance U.S. competitiveness in blockchain and related technologies, and discusses any emerging risks and trends in these fields.