[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5197 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 5197
To add establish the treatment of managed stablecoins under the
securities laws, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 20, 2019
Ms. Garcia of Texas (for herself and Mr. Gooden) introduced the
following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To add establish the treatment of managed stablecoins under the
securities laws, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Managed Stablecoins are Securities
Act of 2019''.
SEC. 2. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) digital assets, known as managed stablecoins, are
investment contracts and therefore are securities within the
meaning given the term in section 2(a) of the Securities Act of
1933; and
(2) because issuers of managed stablecoins nevertheless
maintain that managed stablecoins are not securities, it is
appropriate for Congress to provide clarity by amending
statutory definitions of the term security to include managed
stablecoins.
SEC. 3. MANAGED STABLECOINS.
(a) Definitions Under the Securities Act of 1933.--Section 2(a) of
the Securities Act of 1933 (15 U.S.C. 77b(a)) is amended--
(1) in paragraph (1)--
(A) by inserting ``, regardless of form'' after
``any of the foregoing''; and
(B) by inserting ``, managed stablecoin,'' after
``national securities exchange relating to foreign
currency''; and
(2) by adding at the end the following:
``(20) The term `managed stablecoin' means a digital asset
that--
``(A) is not a security registered under section
8(a) of the Investment Company Act of 1940; and
``(B) satisfies one or more of the following:
``(i) The market value of such digital
asset is determined, in whole or in significant
part, directly or indirectly, by reference to
the value of a pool or basket of assets,
including digital assets, held, designated, or
managed by one or more persons.
``(ii) One or more holders of such digital
asset, directly or indirectly, are entitled to
obtain consideration or other assets, including
other digital assets and any sovereign currency
of a foreign government or the United States,
in exchange for the digital asset, the amount
of which payment is determined, in whole or in
significant part, directly or indirectly, on
the basis of the value of a pool or basket of
assets, including digital assets, held,
designated, or managed by one or more persons.
``(21) The term `digital asset' means any asset, contract,
agreement or transaction, including a representation of an
economic, proprietary, or access right, that is stored in a
computer-readable form and has or will have a transaction
history that is recorded in a distributed ledger, digital
ledger or other digital data structure. A digital asset may be
a managed stablecoin and a security.''.
(b) Definitions Under the Securities Exchange Act of 1934.--Section
3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c) is
amended--
(1) in paragraph (10)--
(A) by inserting ``, regardless of form'' after
``any of the foregoing'';
(B) by inserting ``, managed stablecoin'' after
``national securities exchange relating to foreign
currency''; and
(C) by inserting ``sovereign'' after ``but shall
not include''; and
(2) by adding at the end the following:
``(81) The term `managed stablecoin' has the meaning given
the term in section 2(a) of the Securities Act of 1933.
``(82) The term `digital asset' has the meaning given the
term in section 2(a) of the Securities Act of 1933.''.
(c) Definitions Under the Investment Company Act of 1940.--Section
2(a) of the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.) is
amended--
(1) in paragraph (36)--
(A) by inserting ``, regardless of form'' after
``any of the foregoing''; and
(B) by inserting ``, managed stablecoin'' after
``national securities exchange relating to foreign
currency''; and
(2) by adding at the end the following:
``(55) The term `managed stablecoin' has the meaning given
the term in section 2(a) of the Securities Act of 1933.
``(56) The term `digital asset' has the meaning given the
term in section 2(a) of the Securities Act of 1933.''.
(d) Definitions Under the Investment Advisers Act of 1940.--Section
202(a) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-1 et seq.)
is amended--
(1) in paragraph (18)--
(A) by inserting ``, regardless of form'' after
``any of the foregoing''; and
(B) by inserting ``, managed stablecoin'' after
``national securities exchange relating to foreign
currency''; and
(2) by adding at the end the following:
``(31) The term `managed stablecoin' has the meaning given
the term in section 2(a) of the Securities Act of 1933.
``(32) The term `digital asset' has the meaning given the
term in section 2(a) of the Securities Act of 1933.''.
(e) SEC Rulemaking.--The Securities and Exchange Commission may
issue rules and regulations to further define the terms ``managed
stablecoin'' and ``digital asset'' as such terms are defined in section
2(a) of the Securities Act of 1933.
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