This law set up procedures for the Department of Commerce to license radio transmitters, which initially consisted primarily of maritime and amateur stations. The broadcasting of news and entertainment to the general public, which began to be developed early 1920s, was not foreseen by this legislation.

The first Commerce Department regulations specifically addressing broadcasting were adopted on December 1, 1921, when two wavelengths were set aside for stations making broadcasts intended for a general audience: 360 meters (833 kHz)