US House Passes H.R. 1664: The Deploying American Blockchains Act

TLDR

• The Deploying American Blackchains Act, aka H.R. 1664, has passed the House and is now headed to the Senate.
• The act will grant the Secretary of Commerce, Howard Lutnick, authority over all matters related to blockchain.
• The goal is to provide clarity and avoid spreading unnecessary regulations across multiple agencies, while also promoting technology in both the private and public sectors.

Blockchain technology has often been described as the future of innovation, but until now, the US approach to harnessing its potential has been, to say the least, inconsistent. Things might be about to change with the Deploying American Blockchains Act (H.R. 1664).

It just passed the House with bipartisan support. If you’ve been trying to figure out how America plans to play catch-up (or even outpace) global blockchain leaders like the UAE, you’re in the right place.

Here’s the plan laid out by the bill to tackle the future of blockchain innovation, and why it’s crucial for the US to take distributed ledger technology (DLT) seriously — starting now. Let’s get after it.

What Exactly is the Deploying American Blockchains Act?

At its core, H.R. 1664 represents a shift from fragmented and passive agency-led efforts to centralized (probably not the best word choice for a crypto site, but that’s the best word to use here), proactive federal support for blockchain innovation. 

The legislation mandates the Department of Commerce (headed by Secretary Howard Lutnick) to take the lead on all things blockchain. That name may sound familiar. It should. We’ve written about him before. He’s part-owner of Tether, and to say he’s pro-crypto is an understatement.

Key objectives of the act include:

• Creating strategies to promote widespread blockchain adoption in the public and private sectors.
• Optimizing global competitiveness by setting technical standards and aligning federal regulations.
• Reducing regulatory hurdles that slow startups and businesses leveraging blockchain.
• Fostering public-private partnerships to explore blockchain applications, spanning industries like digital identity systems, supply chain tracking, and next-gen financial services.

For the first time, federal agencies will be required to align efforts, issue strategic guidance, and support open-source blockchain infrastructure. Essentially, this act could serve as the catalyst that brings blockchain to the forefront of US policy-making.

That was quite the info dump. Let’s break it down piece by piece. 

Translation? Long version incoming.

Why Does H.R. 1664 Matter?

Blockchain technology isn’t just about cryptocurrencies anymore. It’s revolutionizing industries ranging from healthcare to logistics — which is what the OGs have been screaming about for years — but now people are listening. Here’s why H.R. 1664 is so significant:

1. Streamlining Innovation 

Before this act, the US approach to blockchain was…not great. By tasking the Department of Commerce with leadership, the legislation provides a unified direction to accelerate adoption.

2. Leveling the Global Playing Field 

Countries like the UAE and Singapore have aggressively pushed blockchain initiatives, giving them a global edge. The US, on the other hand, has been bogged down by overlapping jurisdictions and regulatory uncertainty. H.R. 1664 helps position the US as a serious contender in the blockchain arena.

3. Supporting Entrepreneurs and Startups 

Founders and industry leaders have long complained about unclear regulations that push talent and investments overseas. That’s a nice way of putting it. The truth is a little more sinister. This bill cuts through that fog, offering clarity and support that could reinvigorate the startup landscape in the blockchain space.

How Does the Deploying American Blockchains Act Work?

The act sets a clear roadmap for how federal agencies and businesses will approach blockchain growth. Here are some notable elements:

Federal Leadership 

The Secretary of Commerce is directed to spearhead blockchain efforts. From defining technical standards to coordinating inter-agency efforts, the Department of Commerce is now the chief architect of US blockchain policy.

Public-Private Partnerships 

By encouraging collaboration between government agencies and private enterprises, the act aims to drive research, workforce development, and blockchain applications across various sectors.

Regulatory Alignment 

For too long, businesses have faced the challenge of navigating inconsistent rules across agencies. The act opens the door for unified regulatory clarity by resolving overlapping jurisdictions.

A Broader Mission Beyond Crypto

One of the most exciting aspects of this legislation is its recognition that blockchain’s applications extend far beyond cryptocurrencies. The act prioritizes use cases like:

• Digital Identity Systems – Think seamless, secure, and fraud-proof identification processes for individuals and businesses. This will be especially beneficial in sectors like healthcare.
• Supply Chain Management – Blockchain enables real-time product tracking and enhances transparency in the global supply chain. Imagine buying a cup of coffee and knowing every step your beans took before landing in your cup. That’s the tip of the iceberg.
• Next-Gen Financial Services – Say goodbye to delays and paperwork. Blockchain-powered financial services mean faster settlements, lower fees, and better accessibility. This one is our personal favorite. We didn’t get into this game to stay poor…

What Does It Mean for Users?

Whether you’re a business owner, tech enthusiast, crypto investor, or someone who just wants the US to win the blockchain race, there are big implications here:

• For Entrepreneurs – If you’ve been eyeing blockchain as a growth area but felt held back by red tape, the Deploying American Blockchains Act could be an in. Federal support means more resources and fewer barriers to bringing your ideas to life.
• For the Average Consumer – The trickle-down benefits include more secure and efficient systems for everything from online shopping to healthcare, thanks to blockchain’s unique ability to prevent fraud and enhance transparency.

A Bold Step Toward Blockchain Leadership

The bill was introduced by Representative Kat Cammack, a republican from Florida. Here’s what she had to say.

“Blockchain is an evolving technology that is changing daily. Understanding the power of blockchain is critical.” Source 

For too long, the US has played catch-up in the blockchain space. With this act, the nation is taking its first cohesive step toward a blockchain-powered future, one that promotes innovation, strengthens economic resilience, and places America firmly on the global stage as a leader in blockchain.

We’re ushering in a new chapter for US tech policy, one where the government takes a leading role in blockchain innovation.