US Senate Suggests Blockchain Can Enhance National Security

The United States Senate Committee on Armed Services recently recommended exploring Blockchain usage to enhance the country’s national security. The Committee issued a report directing the Department of Defense (DoD) to consider the emerging technology and test its potential applications within the defense sector.

US Senate Military Committee Calls For Blockchain Development

The US Military Senate Committee issued the National Defense Authorization Act (NDAA) for the fiscal year 2025. In the report, the committee authorized next year’s appropriations for military activities of the Department of Defense and military construction.

The NDAA discussed several special interest items, including the “assessment of blockchain technology for supply chain security and other national security uses.”

NDDA acknowledges the vast potential of blockchain technology. Source: Committee on Armed Services

The committee highlighted the vast potential of the technology and its uses for national security, including enhancing the anti-corruption and data manipulation measures in the country:

Blockchain technology has the potential to enhance the cryptographic integrity of the defense supply chain, improve data integrity, and reduce the risk of the manipulation or corruption of certain types of data by near-peer competitors.

Moreover, the US Senate Military Committee believes that data-driven security, transparency, accountability, and auditable supply chains are crucial for improving the US national defense and economic competitiveness.

The NDAA suggested that the US follow the same path as other countries and invest in Blockchain research and technology development. The report states that these measures are important to retain “global leadership in this critical technology.”

Regulatory Clarity Required For Global Leadership And Adoption

The committee directed the Department of Defense to explore using the technology to achieve “national security goals and to create secure, transparent, accountable, and auditable data related to supply chains.”

According to the NDAA, the Secretary of Defense must send a briefing to the committee by April 1, 2025. In the briefing, the Secretary must assess the possible applications of Blockchain technology for supply chain management within the Department of Defense.

The report issued a guideline for the items that must be explored in the document, including the benefits and risks of implementing the emerging technology in supply chain tracking and management.

The secretary is also required to analyze the current state of Blockchain adoption in national security applications within the DOD and the defense industrial base, with estimates for the necessary resources for these activities.

By the deadline, there must be a plan for pilot programs or research and development efforts to explore the use of the technology in the defense sector and an analysis of China and Russia’s usage of Blockchain technology.

Excerpt of the NDAA guidelines to the Secretary of Defense. Source: Committee on Armed Services

Lastly, the briefing should propose recommendations to foster the development of the technology within the DOD and recommendations for “legislative or regulatory actions to incorporate blockchain technology to support supply chain transparency and auditability.”

The suggestions by the US Senate Military Committee highlight the need for clear guidelines to develop the country’s industry. Many politicians have called for a more welcoming regulatory approach in the US to foster the crypto industry successfully.

With the upcoming elections around the corner, these efforts have resulted in the industry being endorsed by several politicians. As reported by Bitcoinist, key US Congress members and industry figures have been vocal about the regulatory challenges that crypto businesses face in the United States.