Technology (Emerging 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.

HR 3220 establishes a "quantum sandbox" program to accelerate near-term quantum technology applications. The bill requires the Commerce Secretary, working with NIST, to create a public-private partnership focused on developing and testing quantum computing, communication, and sensing solutions that can be deployed within 24 months. This program will engage industry groups, national labs, and research centers to break down barriers to accessing quantum hardware for practical uses. The goal is to deliver tangible benefits to U.S. businesses and consumers through faster innovation in quantum applications.

HR 3259, the Post Quantum Cybersecurity Standards Act, requires the National Institute of Standards and Technology (NIST) to promote the voluntary adoption of quantum-resistant encryption standards. It directly affects critical infrastructure operators and digital infrastructure providers deemed high-risk for quantum-related cyber threats. Key provisions include NIST disseminating public guidance, offering technical assistance, and establishing a grant program to help these entities adopt new encryption standards and address vulnerabilities. The bill mandates collaboration with Homeland Security and sector-specific agencies but does not mandate compliance or create new regulatory requirements.

HR 4374, the American Homeowner Crypto Modernization Act of 2025, requires federal housing agencies (HUD, USDA, VA, and FHFA) to update mortgage underwriting systems within 24 months to mandate that lenders consider the value of cryptocurrency held in exchange-linked brokerage accounts when evaluating borrower credit. This directly affects homeowners and borrowers seeking mortgages who hold digital assets, as their crypto holdings would now be included in credit assessments. The key mechanism is amending automated underwriting programs to treat cryptocurrency in brokerage accounts similarly to traditional financial assets during loan approval. The bill focuses on updating existing mortgage evaluation processes, not regulating cryptocurrency itself.

HR 7363, the ICE Out of Our Faces Act, prohibits U.S. Customs and Border Protection (CBP) and U.S. Immigration and Customs Enforcement (ICE) officers from using facial recognition, voice recognition, or other biometric surveillance technology for immigration enforcement. It directly affects CBP and ICE officers, including those deputized under Section 287(g), by banning the acquisition, possession, or use of such technology within the U.S. The bill requires immediate deletion of all existing biometric data collected by these agencies within 30 days of enactment and makes illegally obtained data inadmissible in court. Individuals harmed by violations can sue the federal government for damages, while officers violating the law face retraining, suspension, or termination.

HR 1188 establishes a federal grant program to help state and local law enforcement agencies purchase body-worn cameras and implement camera programs. To qualify for funding, agencies must adopt public policies on camera use, secure data storage, privacy protections, and strict limits on facial recognition technology (requiring judicial authorization for its use). The bill mandates collecting and reporting demographic data on use-of-force incidents (by race, gender, etc.) and prohibits sharing footage without legal justification. It allocates $30 million annually for fiscal years 2026-2028, with requirements for public policy access, data security, and annual reporting to the federal government.

The Quantum LEAP Act of 2025 establishes a 12-member Commission on American Quantum Information Science and Technology Dominance to examine U.S. quantum technology developments and recommend policies. The Commission will review global competitiveness, national security implications, workforce needs, and commercialization barriers in quantum information science, coordinating with agencies like the Department of Energy, National Institute of Standards and Technology, and Department of Defense. It must submit an interim report within one year and a final report within two years of its establishment, outlining recommendations for maintaining U.S. leadership. This bill directly affects federal agencies, quantum industry stakeholders, and national security planning by creating a structured process to assess and guide quantum technology strategy.

This bill allows borrowers to count digital assets (like cryptocurrency) held in secure custody as part of their mortgage reserves, without converting them to U.S. dollars. It directly affects borrowers with digital assets and requires Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) to adjust their risk assessments for these assets. Key provisions include applying adjustments for market volatility and asset concentration, requiring periodic reviews of risk models, and mandating board and agency approval before implementing assessment methods. The bill defines "digital assets" to exclude non-fungible items like collectibles and specifies secure custody requirements for inclusion.

HR 6968, the *Immersive Technology for the American Workforce Act of 2025*, provides $50 million annually (2026-2035) for federal grants to fund training programs using virtual reality, augmented reality, and similar immersive technologies. The bill directly affects eligible entities like community colleges, industry partnerships, and career schools that create career pathways for workers in high-demand fields, including veterans, individuals with disabilities, and those in rural areas or declining industries. Key provisions require grantees to align programs with state workforce plans, report on participant outcomes, and prioritize partnerships with employers hiring program graduates. The law aims to expand access to tech-enhanced training for economic self-sufficiency, with grants lasting up to 5 years and requiring public sharing of best practices.

S 2855, the *Immersive Technology for the American Workforce Act of 2025*, provides $50 million annually (2026-2035) to fund grants for workforce training programs using virtual reality (VR), augmented reality (AR), and similar immersive technologies. Eligible entities - including community colleges, career schools, and industry partnerships - can apply for 5-year grants to create career pathways that train workers for in-demand jobs, with priority given to programs serving veterans, rural communities, people with employment barriers (meeting ADA standards), and industries facing workforce shifts. The bill requires grantees to report on program outcomes, including participant success rates and employer needs, and mandates the Department of Labor to publish best practices for using immersive tech in training. It directly affects workers seeking new skills, training providers, and employers needing qualified staff in growing sectors.