Sec. 3. National distributed ledger technology R&D strategy
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The Director, or a designee of the Director, shall, in coordination with the National Science and Technology Council, and the heads of such other relevant Federal agencies as the Director considers appropriate and in consultation with such nongovernmental entities as the Director considers appropriate, develop a national strategy for the research and development of distributed ledger technologies and their applications, with a particular focus on applications of public and permissionless distributed ledgers.
In developing the national strategy, the Director shall consider the following: Current efforts and coordination by Federal agencies to invest in the research and development of distributed ledger technologies and their applications, including through programs like the Small Business Innovation Research and Small Business Technology Transfer programs. The potential benefits and risks of applications of distributed ledger technologies across different industry sectors, including their potential to— lower transactions costs and facilitate new types of commercial transactions; protect privacy and increase individuals’ data sovereignty; reduce friction to the interoperability of digital systems; increase the accessibility, auditability, security, efficiency, and transparency of digital services; increase market competition in the provision of digital services; enable dynamic contracting and contract execution through smart contracts; enable participants to collaborate in trustless and disintermediated environments; enable the operations and governance of distributed organizations; and create new ownership models for digital items.
In consideration of the potential risks of applications of distributed ledger technologies under subparagraph (A), the Director shall take into account, where applicable— software vulnerabilities in distributed ledger technologies and smart contracts; limited consumer literacy on engaging with applications of distributed ledger technologies in a secure way; the use of distributed ledger technologies in illicit finance and their use in combating illicit finance; manipulative, deceptive, and fraudulent practices that harm consumers engaging with applications of distributed ledger technologies; the implications of different consensus mechanisms for digital ledgers and governance and accountability mechanisms for applications of distributed ledger technologies, which may include decentralized networks; foreign activities in the development and deployment of distributed ledger technologies and their associated tools and infrastructure; and environmental, sustainability, and economic impacts of the computational resources required for distributed ledger technologies.
Potential uses for distributed ledger technologies that could improve the operations and delivery of services by Federal agencies, taking into account the potential of digital ledger technologies to— improve the efficiency and effectiveness of privacy-preserving data sharing among Federal agencies and with State, local, territorial, and Tribal governments; promote government transparency by improving data sharing with the public; introduce or mitigate risks that may threaten individuals’ rights or access to Federal services; and automate and modernize processes for assessing and ensuring regulatory compliance.
Ways to support public and private sector dialogue on areas of research that could enhance the efficiency, scalability, interoperability, security, and privacy of applications using distributed ledger technologies. The need for increased coordination of the public and private sectors on the development of voluntary standards, including those regarding security, smart contracts, cryptographic protocols, virtual routing and forwarding, interoperability, zero-knowledge proofs, and privacy, for distributed ledger technologies and their applications.
Applications of distributed ledger technologies that could positively benefit society but that receive relatively little private sector investment. The United States position in global leadership and competitiveness across research, development, and deployment of distributed ledger technologies. In carrying out the Director's duties under this section, the Director shall consult with the following: Private industry. Institutions of higher education. Nonprofit organizations, including foundations dedicated to supporting distributed ledger technologies and their applications.
State governments. Such other persons as the Director considers appropriate. The Director shall ensure consultations with the following: Rural and urban stakeholders from across the Nation. Small, medium, and large businesses. Subject matter experts representing multiple industrial sectors. In carrying out this section, the Director shall, for purposes of avoiding duplication of activities, consult, cooperate, and coordinate with the programs and policies of other relevant Federal agencies, including the interagency process outlined in section 3 of Executive Order 14067 (87 Fed. Reg. 14143; relating ensuring responsible development of digital assets).
Not later than 1 year after the date of enactment of this Act, the Director shall submit to the relevant congressional committees and the President a national strategy that includes the following: Priorities for the research and development of distributed ledger technologies and their applications. Plans to support public and private sector investment and partnerships in research and technology development for societally beneficial applications of distributed ledger technologies.
Plans to mitigate the risks of distributed ledger technologies and their applications. An identification of additional resources, administrative action, or legislative action recommended to assist with the implementation of such strategy. The Director shall, as the Director considers necessary, consult with the Director of the Office of Management and Budget and with the heads of such other elements of the Executive Office of the President as the Director considers appropriate, to ensure that the recommendations and priorities with respect to research and development funding, as expressed in the national strategy developed under this section, are incorporated in the development of annual budget requests for Federal research agencies.
There are authorized to be appropriated to the Director $1,000,000 to carry out this section for fiscal years 2022 and 2023.
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- 87 FR 14143
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Sec. 3
National distributed ledger technology R&D strategy
Fed. Reg.87 FR 14143
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