The Register of Copyrights is currently appointed by the Librarian of Congress. Should H.R.1695 become law, the Register of Copyrights would no longer be appointed by the Librarian of Congress, who is the head of Library of Congress.

This does undermine the current authority of the Library of Congress.

EDIT: Adding reference to H.R.1695 which passed the House, but stalled in Senate.

https://www.congress.gov/bill/115th-congress/house-bill/1695