Congress orders agencies to study AI and blockchain for consumer protection
H.R. 1770 — Consumer Safety Technology Act · Filed by Darren Soto (D-FL) · 3 cosponsors · Introduced Mar 3, 2025 · Passed chamber
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What it does
This bill directs three federal agencies to explore and study emerging technologies in consumer protection: the Consumer Product Safety Commission must pilot artificial intelligence tools to track product hazards and monitor recalled items; the Commerce Department must study how blockchain technology could prevent fraud; and the Federal Trade Commission must report on its enforcement actions against deceptive token (cryptocurrency) schemes and recommend legislative improvements. No new enforcement powers or restrictions are created—only studies and a pilot program.
Why we flagged it
The bill's operative mechanism is directive—it mandates three separate studies and one pilot program, all aimed at understanding how emerging technologies (AI, blockchain, tokens) can improve consumer protection. It is not a regulatory change, appropriation, or enforcement action, but rather an investigative and exploratory mandate.
What the text implies
- The blockchain study may recommend regulatory changes that favor cryptocurrency and token projects over consumer protections, depending on how Commerce Department frames 'innovation' versus 'fraud prevention.'
- The FTC token report could become the basis for future legislation that either strengthens consumer protections or creates safe harbors for token issuers—the bill does not predetermine the outcome.
The full analysis lists 4 implications of this text.
Who stands to gain
AI software and data analytics vendors (potential CPSC contractors); Blockchain technology companies and cryptocurrency platforms (if Commerce study recommends favorable; Consulting firms hired to conduct studies