Technology

# Summary of Digital Commodities and Blockchain Technology Regulatory Framework This comprehensive legislation establishes a new regulatory framework specifically for digital commodities and blockchain technology, creating a balanced approach that protects investors while fostering innovation. ## Key Components 1. **New Regulatory Structure**: - Creates new categories for digital commodity exchanges, brokers, and dealers under the Commodity Futures Trading Commission (CFTC) - Establishes "qualified digital asset custodians" as a new regulatory category - Defines "mature blockchain systems" with special regulatory treatment 2. **Core Requirements**: - Mandates segregation of customer assets and strict custody requirements - Requires robust risk management systems - Sets capital requirements for digital commodity brokers and dealers - Establishes new disclosure and reporting obligations - Defines "blockchain control persons" with special restrictions on selling digital commodities 3. **Innovation-Focused Provisions**: - Creates a "Strategic Hub for Innovation and Financial Technology" (FinHub) at the SEC - Establishes "LabCFTC" as a dedicated innovation lab within the CFTC - Provides exemptions for SEC-registered entities from certain CFTC requirements - Includes provisions for expedited hiring of digital commodities experts 4. **Studies and Research**: - Mandates studies on decentralized finance (DeFi) - Requires a study on non-fungible tokens (NFTs) - Directs a study on financial literacy among digital commodity holders - Requires a study on tokenized securities and derivatives 5. **Exclusions**: - Excludes decentralized finance activities from regulation - Excludes certain blockchain-related activities from regulatory requirements The legislation aims to create a functional regulatory framework that acknowledges the unique benefits and risks of digital commodities while ensuring investor protection, preventing market manipulation, and promoting the responsible development of this emerging technology within the United States. It seeks to prevent the shift of digital commodity development to less regulated countries by establishing a clear, balanced regulatory path.

The KIDS Act (HR 7757) requires online platforms to implement age verification measures and safety features to protect minors from harmful content and interactions. It mandates platforms to provide parental control tools, limit design features that encourage compulsive use, and prevent access to illegal products like drugs or alcohol. The bill also requires platforms to establish reporting mechanisms for harms to minors and disclose when chatbots are artificial intelligence systems. The law applies to social media platforms, video games, and chatbot providers that meet the definition of a "covered platform" under the bill.

HR 915, the Small Business Technological Act of 2025, expands the use of Small Business Administration (SBA) Section 7(a) loans to cover business software, cloud computing services, and AI-powered tools that handle payroll, HR, sales, billing, accounting, and inventory management. It directly affects small businesses seeking loans for operational technology upgrades, allowing them to use SBA funds for these specific tech services without changing existing loan purposes. The bill amends the Small Business Act to explicitly permit these uses under Section 7(a), clarifying that existing loans for similar purposes before the law's enactment remain valid. It does not expand loan use for research, development, or working capital beyond current definitions.

The Secure America Act appropriates billions of dollars to U.S. Customs and Border Protection and Immigration and Customs Enforcement for fiscal year 2026 to expand staffing and operations. These funds are specifically designated for hiring agents to conduct functions other than immigration enforcement and customs duties, as well as for purchasing new technology to combat drug trafficking and improve border surveillance. The legislation includes restrictions that prohibit using the money to recruit processing coordinators after October 2028 and bans the deployment of untested autonomous surveillance towers. A portion of the funding is also set aside to hire investigators and analysts dedicated to identifying and rescuing victims of child sexual exploitation.

HR 1681 creates an interagency strike force to speed up reviews of broadband infrastructure permits on federal lands. The strike force, made up of officials from Commerce, Agriculture, and Interior departments, will set goals and monitor agencies like the Bureau of Land Management and Forest Service to prioritize these reviews. It directly affects telecom companies seeking permits to install equipment and federal land agencies managing public lands and National Forest System areas. The bill aims to reduce delays in broadband deployment by making the approval process more efficient, without changing land use rules.

Homeowner Energy Freedom Act This bill repeals the Department of Energy's (1) high-efficiency electric home rebate program for certain electrification projects in low- or moderate-income households, (2) state-based home energy efficiency contractor training grants, and (3) assistance for states and local governments to adopt specified building energy codes. It also rescinds any unobligated balances available for the rebates or adopting the building energy codes. (The unobligated balances for the contractor training grants were previously rescinded by the 2025 reconciliation act.)

The Undersea Cable Protection Act of 2025 prohibits the National Marine Sanctuaries Act from requiring additional authorizations for undersea fiber optic cables that already have federal or state permits. It directly affects cable operators who have obtained licenses, leases, or permits from any federal or state agency for cable installation or maintenance in national marine sanctuaries. The bill prevents the Secretary from blocking or demanding new permits for these cables once they have valid existing authorization. This simplifies regulatory processes by eliminating redundant federal oversight for cables already approved by other agencies.

HR 5764, the "AI for Main Street Act," amends the Small Business Act to require the Small Business Administration (SBA) to provide guidance and training to small business concerns on using artificial intelligence. It directly affects small businesses by adding new SBA responsibilities to help them evaluate AI for operations, including best practices, cybersecurity, data protection, regulatory compliance, and customer trust. Key provisions mandate the SBA to offer information, training, and outreach on incorporating AI into business processes, such as planning for unexpected circumstances. The bill does not authorize new funding for these activities. It defines "artificial intelligence" using the existing term from the National AI Initiative Act.

HR 2683, the Remote Access Security Act, amends the Export Control Reform Act of 2018 to regulate how foreign entities remotely access U.S.-controlled technology. It defines "remote access" as foreign persons accessing U.S. items (like sensitive technology) via internet or cloud services from outside the item's physical location. The bill updates existing export control rules to include remote access as a regulated activity, requiring oversight similar to physical exports or in-country transfers. This primarily affects foreign companies, cloud providers, and technology firms handling U.S.-jurisdiction items.

HR 2659 creates a federal task force to address cyber threats from China's state-sponsored actors, specifically targeting groups like Volt Typhoon identified in a 2024 CISA advisory. The task force, led by CISA and FBI directors, coordinates federal agencies responsible for critical infrastructure security to detect and respond to cyberattacks. It must produce annual reports - including classified assessments of infrastructure risks and recommendations - to Congress within 540 days of formation and for five years after. These reports will guide federal efforts to protect critical infrastructure (like energy grids and transportation systems) and inform owners/operators through a public awareness campaign.