[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6597 Introduced in House (IH)]

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117th CONGRESS
  2d Session
                                H. R. 6597

 To require the Administrator of the Small Business Administration to 
 conduct a study on the state of blockchain technology and its use in 
              consumer protection, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 3, 2022

Ms. Salazar (for herself, Mr. Khanna, Mrs. Kim of California, Mr. Soto, 
Mr. Budd, Mrs. Cammack, Mr. Donalds, Mr. Waltz, Ms. Tenney, Mr. Emmer, 
 Mr. Rose, Mr. Davidson, Mr. Norman, Mr. Austin Scott of Georgia, Mr. 
    Steil, Mr. Timmons, Mr. Cawthorn, Mr. Steube, and Mrs. Wagner) 
 introduced the following bill; which was referred to the Committee on 
                             Small Business

_______________________________________________________________________

                                 A BILL


 
 To require the Administrator of the Small Business Administration to 
 conduct a study on the state of blockchain technology and its use in 
              consumer protection, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Blockchain Solutions for Small 
Businesses Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Blockchain or distributed ledger technology allows 
        computers connected by a peer-to-peer network to reach 
        agreement over a shared ledger of data. Changes to the shared 
        ledger can only be effected if the majority of the computers in 
        the network verify the validity of the change and agree to its 
        inclusion in the ledger.
            (2) The Connected Commerce Council found that 72 percent of 
        small businesses increased their use of digital tools during 
        the COVID-19 crisis, and 48 percent utilized a new digital 
        tool.
            (3) As small businesses increasingly move their operations 
        online, it is critical that any and all information relevant to 
        the business is protected and secure. Blockchain technology is 
        an additional tool that small businesses can leverage to ensure 
        that the operation is adequately protected from cyberattack.
            (4) Blockchains are decentralized and distributed across 
        peer-to-peer networks that are continually updated and kept in 
        sync. Because these networks are not contained in a central 
        location, they do not have a single point of failure and cannot 
        be changed from a single computer operating within the network. 
        These features of blockchain technology make stealing data or 
        engaging in fraud significantly more difficult.
            (5) Blockchain technology has the ability to bolster trust 
        and efficiency. All participants in the blockchain networks 
        have access to the same information, which is not only 
        immutable but also updated in real time, which means that 
        information sharing and verification is streamlined and 
        accessible to all relevant parties.

SEC. 3. STUDY ON BLOCKCHAIN TECHNOLOGY AND ITS USES AT THE SMALL 
              BUSINESS ADMINISTRATION.

    (a) Study Required.--The Administrator of the Small Business 
Administration, in consultation with any other Federal agency the 
Administrator determines appropriate, shall conduct a study on--
            (1) the current and potential uses of blockchain technology 
        to carry out the requirements of subsections (a) and (b)(2) of 
        section 7 of the Small Business Act (15 U.S.C. 636); and
            (2) the potential uses of blockchain technology to--
                    (A) minimize fraud in the lending programs 
                established under such subsections; and
                    (B) improve the provision of services under such 
                lending programs.
    (b) Elements.--The study required under subsection (a) shall 
include the following:
            (1) An assessment of trends in the use of blockchain 
        technology in the financial sector.
            (2) A description of best practices to facilitate 
        partnerships between private entities and the Administration to 
        use blockchain technology to carry out the requirements of 
        subsections (a) and (b)(2) of section 7 of the Small Business 
        Act (15 U.S.C. 636), minimize fraud in the lending programs 
        established under such subsections, and improve the provision 
        of services under such lending programs.
            (3) With respect to carrying out the requirements of 
        subsections (a) and (b)(2) of section 7 of the Small Business 
        Act (15 U.S.C. 636), a description of--
                    (A) the potential benefits and risks of using 
                blockchain technology;
                    (B) how blockchain technology can be used to 
                maximize efficiency of the Administration; and
                    (C) how blockchain technology can be used to reduce 
                fraud and increase the security of the lending programs 
                established under such subsections.
            (4) Any other relevant information or recommendations 
        related to the use of blockchain technology by the 
        Administrator.
    (c) Report.--Not later than one year after the date of the 
enactment of this Act, the Administrator of the Small Business 
Administration shall submit to the Committee on Small Business of the 
House of Representatives and the Committee on Small Business and 
Entrepreneurship of the Senate a report on the results of the study.
    (d) Blockchain Defined.--In this Act, the term ``blockchain'' means 
a digital ledger or database which is chronological, consensus-based, 
decentralized, and mathematically verified in nature.
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