KEY POINTS
- The 'Deploying American Blockchains Act of 2024' gives power to the Commerce Secretary to advise the incoming president on blockchain policy
- The Act directs the Commerce chief to assemble an Advisory Committee that includes industry experts and other stakeholders
- It also requires the development of 'best practices' in deploying blockchain technology, DLT, and other related tech
Congress reached a bipartisan deal to avoid a government shutdown that had significant funding provisions for farmers and disaster relief, but a blockchain measure tucked within the 1,547-page bill may have gone unnoticed.
The bill, which will keep the U.S. government funded until mid-March 2025, includes a "Deploying American Blockchains Act of 2024," which will empower the Commerce Department to make the necessary policy recommendations around blockchain technology.
The stopgap bill, which was opposed by some hardline Republicans, has been dubbed "bloated" by X users who believe opposing GOP lawmakers should have just stood their ground and allowed a shutdown.
What Does the Act Say About Blockchain?
The "Deploying American Blockchains Act" includes definitions and terminology that specifically detail how blockchain technology should be approached. Quite interestingly, blockchain has been included in the stopgap bill's list of items under "emerging technology," which are defined as "critical for the national security or economic security of the United States."
The Act's key provisions include:
- Commerce Department authority – The Commerce Secretary will be the president's "principal advisor" in terms of policy to deploy, use, apply, and gauge the competitiveness of blockchain in the country.
- Advisory Committee – The Secretary will organize an Advisory Committee that will "encourage coordination among Federal agencies with respect to the deployment of blockchain technology or other distributed ledger technology (DLT), applications built on blockchain technology or other distributed ledger technology, tokens, and tokenization," among other duties such as public engagement for policy proposals.
- Expert involvement – The "National Blockchain Deployment Advisory Committee" will include non-governmental experts who have vast experience in blockchain, DLT, and other related technologies around blockchain (such experts may include blockchain operators, suppliers, vendors, developers, industry leaders, and even rural stakeholders).
- Deployment guidelines – The Secretary is also expected to support the development of guidelines or best practices for blockchain technology deployment and other related technologies.
- Regular consultations – The Secretary is expected to "consult closely and regularly" with stakeholders around blockchain, "including private sector individuals and entities, and incorporate industry expertise."
- Awareness campaign – The Secretary should support the development of standardized terminology to promote "common understanding" of blockchain technology.
- Reporting – The Commerce chief will submit reports to respective Congress Committees regarding blockchain technology progress in the country and make recommendations on "additional legislation to strengthen the competitiveness of the United States with respect to blockchain technology," as well as emerging risks and long-term trends around the booming sector.
Why the Act Matters
The Act's provisions are critical in the blockchain and cryptocurrency industry's fight for recognition as a real industry and one that can have a positive impact on the economy.
It also specifically directs a government power to cooperate with stakeholders in the industry and not just rely on existing rules or laws to determine how blockchain should be deployed appropriately, recognizing the importance of industry players and regular users having a voice in the development of blockchain rules.
The Act's inclusion in the bill comes as more lawmakers adopt a balanced approach toward blockchain, digital assets, and the broader crypto space.
For instance, Sen. Tim Scott, who will lead the Senate Banking Committee starting next year, said he believes crypto is "the next wonder of the world."
A number of leading industry players have been asking for new rules for the digital assets space, and a blockchain-focused act may be a step closer to the sector's vision of guiderails that balance consumer protection and innovation.
