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.)

Rotorcraft Operations Transparency and Oversight Reform Act or the ROTOR Act This bill addresses aviation safety by increasing requirements for aircraft tracking and communication using Automatic Dependent Surveillance-Broadcast (ADS-B) technology and expanding oversight. As background, ADS-B for broadcasting (Out) and receiving (In) transmits information (e.g., location and weather information) between aircraft and air traffic control. Under the bill, aircraft must generally operate with ADS-B In equipment to provide the aircraft with location information of other aircraft and traffic advisories. Current law does not require this equipment. Current Federal Aviation Administration (FAA) regulations allow aircraft performing a sensitive government mission to be excepted from requirements for using ADS-B Out equipment. This bill limits which flights may be considered sensitive government missions (e.g., not training flights) and requires additional reporting and notifications for the exception. The Government Accountability Office must review the use of the ADS-B Out exception and the Office of the Inspector General (OIG) of the Department of Transportation must annually audit FAA oversight of operations that use the exception. Further, the bill repeals a 2025 law that exempts certain military helicopters from the ADS-B Out requirements for the Washington, DC, metropolitan area. The bill also requires the OIG of the Army to audit the Army’s coordination with the FAA, the FAA to establish an office to coordinate airspace usage of military aircraft and review the safety of flight operations and routes around airports, and the FAA to enter into memoranda of understanding with military agencies for safety information sharing.

The Breaking the Gridlock Act (HR 1834) contains multiple provisions addressing diverse policy areas. It creates a congressional time capsule to be buried in 2026 and opened in 2276, establishes standard procedures for fire suppression cost share agreements between federal agencies and local fire departments, and requires a strategy to counter Boko Haram threats in Nigeria. The bill also amends funding for the Udall Foundation, prohibits the transfer of sensitive personal data to foreign adversaries, and mandates federal agencies to purchase domestically made U.S. flags. Additionally, it includes appropriations for various government programs and veterans' benefits.

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.