Blockchain Solutions for Small Businesses Act
This bill requires the Small Business Administration to study the current and potential uses of blockchain technology (i.e., the technology that supports digital currencies such as Bitcoin) in making loans to qualified small businesses.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6597 Introduced in House (IH)]
<DOC>
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.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Small Business.
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