[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1870 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                S. 1870

To amend the Commodity Exchange Act to prohibit interference in United 
 States digital commodity markets by entities organized or established 
            in a foreign adversary, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 7, 2023

    Mr. Tuberville (for himself and Mrs. Gillibrand) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
To amend the Commodity Exchange Act to prohibit interference in United 
 States digital commodity markets by entities organized or established 
            in a foreign adversary, 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 ``Prohibiting Foreign Adversary 
Interference in Cryptocurrency Markets Act''.

SEC. 2. PROHIBITION ON REGISTRATION OF FOREIGN ADVERSARY-AFFILIATED 
              DIGITAL COMMODITY PLATFORMS.

    Section 4(b) of the Commodity Exchange Act (7 U.S.C. 6(b)) is 
amended by adding at the end the following:
            ``(3) Prohibition on registration of foreign adversary-
        affiliated digital commodity platforms.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Covered entity.--The term `covered 
                        entity' means--
                                    ``(I) an entity that is established 
                                or organized under the laws of, or the 
                                principal place of business of which is 
                                located in, a foreign adversary; or
                                    ``(II) any subsidiary owned (in 
                                whole or in part) or operated by an 
                                entity described in subclause (I).
                            ``(ii) Digital commodity.--
                                    ``(I) In general.--The term 
                                `digital commodity' means a fungible 
                                digital form of personal property that 
                                can be possessed and transferred 
                                person-to-person without necessary 
                                reliance on an intermediary.
                                    ``(II) Inclusions.--The term 
                                `digital commodity' includes property 
                                commonly known as cryptocurrency or 
                                virtual currency.
                                    ``(III) Exclusions.--The term 
                                `digital commodity' does not include--
                                            ``(aa) an interest in a 
                                        physical commodity;
                                            ``(bb) a security;
                                            ``(cc) a digital form of 
                                        currency backed by the full 
                                        faith and credit of the United 
                                        States; or
                                            ``(dd) any other instrument 
                                        that the Commission determines 
                                        not to be a digital commodity.
                            ``(iii) Digital commodity broker.--
                                    ``(I) In general.--The term 
                                `digital commodity broker' means a 
                                person that is engaged, as an 
                                identifiable business, in--
                                            ``(aa) soliciting or 
                                        accepting orders on behalf of 
                                        another person for a digital 
                                        commodity trade;
                                            ``(bb) accepting digital 
                                        commodities from another person 
                                        for the purpose of entering 
                                        into digital commodity trades;
                                            ``(cc) arranging digital 
                                        commodity trades on behalf of 
                                        another person; or
                                            ``(dd) a similar activity, 
                                        as determined by the 
                                        Commission.
                                    ``(II) Exclusion.--The term 
                                `digital commodity broker' does not 
                                include a person solely because that 
                                person validates digital commodity 
                                transactions.
                            ``(iv) Digital commodity custodian.--The 
                        term `digital commodity custodian' means a 
                        person that, as an identifiable business, 
                        maintains possession, custody, or control over 
                        digital commodities on behalf of another 
                        person.
                            ``(v) Digital commodity dealer.--
                                    ``(I) In general.--The term 
                                `digital commodity dealer' means a 
                                person that--
                                            ``(aa) has an identifiable 
                                        business of dealing in a 
                                        digital commodity as principal 
                                        for its own account;
                                            ``(bb) makes a market in a 
                                        digital commodity;
                                            ``(cc) holds itself out as 
                                        a dealer in a digital 
                                        commodity;
                                            ``(dd) has as an 
                                        identifiable business of buying 
                                        or selling digital commodities 
                                        for conversion into other 
                                        digital commodities, currency, 
                                        or other consideration;
                                            ``(ee) has as an 
                                        identifiable business of 
                                        accepting digital commodities 
                                        from another person (referred 
                                        to in this item as a 
                                        `depositor') with an obligation 
                                        to return the digital 
                                        commodities, consideration 
                                        linked to the digital 
                                        commodities, or both to the 
                                        depositor; or
                                            ``(ff) engages in a similar 
                                        activity, as determined by the 
                                        Commission.
                                    ``(II) Exclusion.--The term 
                                `digital commodity dealer' does not 
                                include a person solely because that 
                                person validates digital commodity 
                                transactions.
                            ``(vi) Digital commodity platform.--The 
                        term `digital commodity platform' means a 
                        person that is 1 or more of the following:
                                    ``(I) A digital commodity broker.
                                    ``(II) A digital commodity 
                                custodian.
                                    ``(III) A digital commodity dealer.
                                    ``(IV) A digital commodity trading 
                                facility.
                            ``(vii) Digital commodity trade.--
                                    ``(I) In general.--The term 
                                `digital commodity trade' means a 
                                purchase or sale of a digital commodity 
                                in exchange for--
                                            ``(aa) another digital 
                                        commodity; or
                                            ``(bb) any other 
                                        consideration.
                                    ``(II) Inclusions.--The term 
                                `digital commodity trade' includes--
                                            ``(aa) an offer to enter 
                                        into a purchase or sale 
                                        described in subclause (I); and
                                            ``(bb) a loan of a digital 
                                        commodity, an offer to enter 
                                        into a loan of a digital 
                                        commodity, or a similar 
                                        activity, as determined by the 
                                        Commission.
                            ``(viii) Digital commodity trading 
                        facility.--
                                    ``(I) In general.--The term 
                                `digital commodity trading facility' 
                                means a trading facility that 
                                facilitates the execution or trading of 
                                digital commodity trades between 
                                persons.
                                    ``(II) Exclusion.--The term 
                                `digital commodity trading facility' 
                                does not include a person solely 
                                because that person validates digital 
                                commodity transactions.
                            ``(ix) Foreign adversary.--The term 
                        `foreign adversary' means--
                                    ``(I) the People's Republic of 
                                China, including the Hong Kong Special 
                                Administrative Region and Macao Special 
                                Administrative Region;
                                    ``(II) the Republic of Cuba;
                                    ``(III) the Islamic Republic of 
                                Iran;
                                    ``(IV) the Democratic People's 
                                Republic of Korea;
                                    ``(V) the Russian Federation; and
                                    ``(VI) the Bolivarian Republic of 
                                Venezuela under the regime of Nicolas 
                                Maduro Moros.
                    ``(B) Prohibition on registration.--The Commission 
                shall not register under this Act a digital commodity 
                platform that is owned (in whole or in part) by a 
                covered entity.
                    ``(C) Revocation of registration.--The Commission 
                shall revoke the registration under this Act of a 
                digital commodity platform if a covered entity acquires 
                all or any part of the ownership of the digital 
                commodity platform.''.
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