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 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.

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.

The TAKE IT DOWN Act requires major social media platforms and websites hosting user-generated content to establish a 48-hour removal process for nonconsensual intimate visual depictions (including deepfakes) upon verified request. It defines "nonconsensual intimate visual depictions" as images or videos of identifiable people shared without consent, with criminal penalties for sharing such content with intent to cause harm. The law exempts law enforcement activities, medical purposes, and content shared for legitimate educational reasons. Platforms must remove these materials quickly but are protected from liability if they act in good faith. This law directly affects social media companies and individuals whose intimate images are shared without consent.

HR 859 requires manufacturers to clearly state before purchase whether internet-connected consumer devices (like smart speakers or home monitors) contain a camera or microphone. It directly affects device manufacturers, excluding phones, laptops, and dedicated cameras (which consumers reasonably expect to have such features). The Federal Trade Commission enforces this as an unfair/deceptive practice under existing law, with guidance issued within 180 days of enactment. The law applies only to devices made after the FTC issues its guidance, not older models.

HRES 294 is a procedural resolution that sets rules for the House to debate and vote on four specific legislative items. It enables consideration of two disapproval resolutions targeting Consumer Financial Protection Bureau rules (one on overdraft fees for large banks, another on digital payment app regulations), a bill limiting court injunctions (H.R. 1526), and a voting rights bill requiring citizenship proof for federal elections (H.R. 22). The resolution waives objections to these items and specifies debate time and amendment procedures. It does not change policy itself but streamlines the process for the House to act on these proposals. This is a procedural step, not a substantive policy change.

This bill requires the Department of Homeland Security (DHS) to create a new department-wide policy and process to protect sensitive research and development projects from unauthorized access or disclosure during acquisitions. It directly affects DHS research programs by mandating specific security safeguards for their work. Key provisions include requiring DHS to develop this policy within one year, submit a GAO report on compliance with existing national security guidelines (NSPM-33), and provide a congressional briefing on implementing the new security framework. The bill focuses on establishing concrete security protocols for DHS research, not on funding or broader policy changes.