<enum>I</enum><header>Definitions; rulemaking</header><section id="id90ef478d1de44dd1b17817fee0157e72"><enum>101.</enum><header>Definitions under the Commodity Exchange Act</header><subsection id="idde2dd1c8862d4d8ca331dbc7f6f89337"><enum>(a)</enum><header>In general</header><text>Section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>) is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="id999f4ae701fb4a1085e2b34413597e10"><enum>(1)</enum><text>by redesignating paragraphs (3), (4), (5) through (14), (15), (16) through (34), (35) through (39), and (40) through (51) as paragraphs (5), (6), (11) through (20), (24), (31) through (49), (51) through (55), and (57) through (68), respectively;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id69353d745c3249bd936f6d77f6a63c96"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after paragraph (2) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idf936e2a047e248a9a627c5306efec7de"><paragraph id="idc87b6742ac3f4501a587753c1eb4c016"><enum>(3)</enum><header>Associated person of a digital commodity broker</header><subparagraph id="id288f4cb244514166b75768c662a736e3"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the term <term>associated person of a digital commodity broker</term> means a person who is associated with a digital commodity broker as a partner, officer, employee, or agent (or any person occupying a similar status or performing similar functions) in any capacity that involves—</text><clause id="idb86d0e385a8340088627d4b4f815c463"><enum>(i)</enum><text>the solicitation or acceptance of an order for the purchase or sale of a digital commodity; or</text></clause><clause id="ide9942cb1055245378d24ee96c79ff5f2"><enum>(ii)</enum><text>the supervision of any person engaged in the solicitation or acceptance of an order for the purchase or sale of a digital commodity.</text></clause></subparagraph><subparagraph id="id2559600104a24697a057dee03b855bb1"><enum>(B)</enum><header>Exclusion</header><text>The term <term>associated person of a digital commodity broker</term> does not include any person associated with a digital commodity broker the functions of which are solely clerical or ministerial.</text></subparagraph></paragraph><paragraph id="id425bf8ac74fd42799dbea2d119d8abb3"><enum>(4)</enum><header>Associated person of a digital commodity dealer</header><subparagraph id="id8fb2f904cef94186b30ec78dbcd86be3"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the term <term>associated person of a digital commodity dealer</term> means a person who is associated with a digital commodity dealer as a partner, officer, employee, or agent (or any person occupying a similar status or performing similar functions) in any capacity that involves—</text><clause id="idee1e772bfa0242c59ec9b73bc6c766c4"><enum>(i)</enum><text>the solicitation or acceptance of a contract for the purchase or sale of a digital commodity; or</text></clause><clause id="idd036884ef9094140921bee5fe52e80c2"><enum>(ii)</enum><text>the supervision of any person engaged in the solicitation or acceptance of a contract for the purchase or sale of a digital commodity.</text></clause></subparagraph><subparagraph id="id91b58c9375614bac8c47a13b8e6e9eaa"><enum>(B)</enum><header>Exclusion</header><text>The term <term>associated person of a digital commodity dealer</term> does not include any person associated with a digital commodity dealer the functions of which are solely clerical or ministerial.</text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8acc941802c24ffc964c3500d32afa2f"><enum>(3)</enum><text>by inserting after paragraph (6) (as so redesignated) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id3b1f5ce43d304572a54093eb08b17d1b"><paragraph id="idb287b46aacf14047b517e8f0a7f11904"><enum>(7)</enum><header>Blockchain</header><text>The term <term>blockchain</term> means technology—</text><subparagraph id="idfd5976e2dcc8451d92f551753cad3a5e"><enum>(A)</enum><text>through which data is shared across a network that creates a public blockchain of verified transactions or information among network participants; and</text></subparagraph><subparagraph id="idb55269d2c7e7421a9fbd8e2b16756cf3"><enum>(B)</enum><text>in which cryptography is used to link the data described in subparagraph (A)—</text><clause id="idd868a1a8a0e341f0af308c109add8633"><enum>(i)</enum><text>to maintain the integrity of the blockchain described in that subparagraph; and</text></clause><clause id="id62bf4e649ba744e185e3b4d0ecf9f97c"><enum>(ii)</enum><text>to execute other functions. </text></clause></subparagraph></paragraph><paragraph commented="no" id="id9894e3054b78429d8d2f06ce43f39335"><enum>(8)</enum><header>Blockchain application</header><text>The term <term>blockchain application</term> means any executable software that is deployed to and maintained on a blockchain and composed of a blockchain protocol, including a smart contract or any network of smart contracts, or other similar technology.</text></paragraph><paragraph commented="no" id="id471299a7bb8249afa29afeb71be1ac95"><enum>(9)</enum><header>Blockchain protocol</header><text>The term <term>blockchain protocol</term> means publicly available source code of a blockchain or blockchain application that is executed by the network participants of a blockchain to facilitate its functioning, or other similar technology.</text></paragraph><paragraph commented="no" id="idafb3cbb5232f49be90a8b619ba3010c4"><enum>(10)</enum><header>Blockchain system</header><text>The term <term>blockchain system</term> means any blockchain, blockchain application, or network of blockchain applications, together with its blockchain protocol.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id22a4c2a114344b51a76f280a8cb4f3c0"><enum>(4)</enum><text display-inline="yes-display-inline">by inserting after paragraph (20) (as so redesignated) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id6f88493d7d404f52870832adaf194aa4"><paragraph commented="no" id="id4ca5b6dc4e0e47fa98817034d3c0d019"><enum>(21)</enum><header>Decentralized finance messaging system</header><subparagraph commented="no" id="idbddb2fdf766d4bb1b069fa2699b4e475"><enum>(A)</enum><header>In general</header><text>The term <term>decentralized finance messaging system</term> means a software application that provides a user with the ability to create or submit an instruction, communication, or message to a decentralized finance trading protocol.</text></subparagraph><subparagraph commented="no" id="id01ef8b0f460948779dd24304a9b7dcee"><enum>(B)</enum><header>Additional requirements</header><text>The term <term>decentralized finance messaging system</term> does not include any system that provides any person other than the user with—</text><clause commented="no" id="iddccdf626a9e145e3930acd276955c7bf"><enum>(i)</enum><text>control over the funds of the user; or</text></clause><clause commented="no" id="id2d4fa0f78d604c9793ec0501b438d914"><enum>(ii)</enum><text>the authority to execute any of the transactions of the user.</text></clause></subparagraph></paragraph><paragraph commented="no" id="id43f1507b7bf74f50a943cb546194e304"><enum>(22)</enum><header>Decentralized finance trading protocol</header><subparagraph commented="no" id="id08002240a4a042adb0fc865abc1a3d10"><enum>(A)</enum><header>In general</header><text>The term <term>decentralized finance trading protocol</term> means a blockchain system through which multiple participants can execute a financial transaction—</text><clause commented="no" id="id098dd0a30f934236bf3c38c8f3713872"><enum>(i)</enum><text>in accordance with an automated rule or algorithm that is predetermined and nondiscretionary; and</text></clause><clause commented="no" id="id791ba705e2e344d7accb4ad1d7158537"><enum>(ii)</enum><text>without reliance on a person other than the user to maintain custody or control of any digital assets subject to the financial transaction.</text></clause></subparagraph><subparagraph commented="no" id="id150dc7dd855543c285ab5223f080db12"><enum>(B)</enum><header>Exclusions</header><clause commented="no" id="id9dc98896034f41ae9760afc2961ecac7"><enum>(i)</enum><header>In general</header><text>The term <term>decentralized finance trading protocol</term> does not include a blockchain system if—</text><subclause commented="no" id="idc0050d98c6fe489c9bded8b0d99e5799"><enum>(I)</enum><text>a person or group of persons under common control or acting pursuant to an agreement to act in concert has the authority, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise, to control or materially alter the functionality, operation, or rules of consensus or agreement of the blockchain system;</text></subclause><subclause commented="no" id="idfd54f0df35844169826a87abfbfe227e"><enum>(II)</enum><text>the blockchain system does not operate, execute, and enforce its operations and transactions based solely on pre-established, transparent rules encoded directly within the source code of the blockchain system; or</text></subclause><subclause id="id63a81d924a8245fc8da0f049053166d1"><enum>(III)</enum><text>a person or group of persons under common control has the unilateral authority, via operation of the blockchain system, to restrict, censor, or prohibit the use of the blockchain system, including any applicable system-based user activity.</text></subclause></clause><clause commented="no" id="idb48ab450cf7742f9927492846d2e602f"><enum>(ii)</enum><header>Special rule</header><text>For purposes of clause (i), a decentralized governance system shall not be considered to be a person or a group of persons under common control or acting pursuant to an agreement to act in concert.</text></clause></subparagraph></paragraph><paragraph commented="no" id="id2ea34f5c112e45fea64a63cbb0d7b191"><enum>(23)</enum><header>Decentralized governance system</header><subparagraph commented="no" id="ida3a2c71beef14cdf8668aaeaf4bbc935"><enum>(A)</enum><header>In general</header><text>The term <term>decentralized governance system</term> means, with respect to a blockchain system, any transparent, rules-based system permitting persons to form consensus or reach agreement in the development, provision, publication, maintenance, or administration of such blockchain system, in which participation is not limited to, or under the effective control of, any person or group of persons under common control (within the meaning of section 104(b) of the Digital Asset Market Clarity Act of 2026).</text></subparagraph><subparagraph commented="no" id="id216c7b6aace14fb985a8c50ed9d42164"><enum>(B)</enum><header>Relationship of persons to decentralized governance systems</header><text>With respect to a decentralized governance system, the decentralized governance system and any persons participating in the decentralized governance system shall be treated as separate persons unless such persons are under common control or acting pursuant to an agreement to act in concert.</text></subparagraph><subparagraph commented="no" id="id8f52e9f6d6f647acb7f737f276dff0dd"><enum>(C)</enum><header>Legal entities for decentralized governance systems</header><clause commented="no" display-inline="no-display-inline" id="idc5a9623701a14db791a7b5e8035ac654"><enum>(i)</enum><header>In general</header><text>The term <term>decentralized governance system</term> shall include a legal entity, including a decentralized unincorporated nonprofit association or other entity created pursuant to State law, used to implement the rules-based system described in subparagraph (A), provided that the legal entity does not operate pursuant to centralized management.</text></clause><clause commented="no" display-inline="no-display-inline" id="idab0daf03ba004ac5a3c83401b9c9fa52"><enum>(ii)</enum><header>Effect of certain delegations</header><text display-inline="yes-display-inline">For the purposes of this subparagraph, the delegation of ministerial or administrative authority at the direction of the participants in a decentralized governance system shall not be construed to be centralized management.</text></clause></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph><paragraph id="idb1340a3febe84377937988c370cd39f2"><enum>(5)</enum><text>by inserting after paragraph (24) (as so redesignated) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id016223cee8284279a9be689f397807c2"><paragraph id="id5ae6a4c004ea479698b3832f9f43791a"><enum>(25)</enum><header>Digital asset</header><text>The term <term>digital asset</term> means any digital representation of value which is recorded on a cryptographically secured blockchain.</text></paragraph><paragraph commented="no" id="idedf67570f9e145a59da82da8b641105f"><enum>(26)</enum><header>Digital asset custodian</header><text>The term <term>digital asset custodian</term> means a person who, as a regular business, holds, maintains, or safeguards digital assets for others.</text></paragraph><paragraph id="idfa9481ad05194d7d8a04f5189a27adbc"><enum>(27)</enum><header>Digital commodity</header><subparagraph id="id4a4a06b0018345aba75644cc89472967"><enum>(A)</enum><header>In general</header><text>The term <term>digital commodity</term> means any fungible digital asset that can be exclusively possessed and transferred, person to person, without necessary reliance on an intermediary, and is recorded on a blockchain.</text></subparagraph><subparagraph id="id29554999b867429da7a7f4b6f8e39397"><enum>(B)</enum><header>Network tokens</header><text>The term <term>digital commodity</term> includes a network token (as defined in section 4B(a) of the Securities Act of 1933) unless the network token is excluded from the definition under clauses (iii) through (vii) of subparagraph (D).</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idcc156f663f704627a391646c1cc469f8"><enum>(C)</enum><header display-inline="yes-display-inline">Meme coins</header><clause commented="no" display-inline="no-display-inline" id="ide88fd166e292477daffdbe6571391d7d"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>digital commodity</term> includes a meme coin unless the meme coin is excluded from the definition under subparagraph (D).</text></clause><clause commented="no" display-inline="no-display-inline" id="iddf68a4078ac347138bd9bd50f381800a"><enum>(ii)</enum><header>Definition</header><text display-inline="yes-display-inline">For the purposes of this paragraph, the term <term>meme coin</term> means a digital asset inspired by an internet meme, character, current event, or trend for which the promoter seeks to attract an enthusiastic online community to purchase and engage in trading of the digital asset primarily for speculative purposes.</text></clause><clause commented="no" display-inline="no-display-inline" id="ideceeb129f2f248f8aa621902f4a21ced"><enum>(iii)</enum><header>Exclusions</header><text display-inline="yes-display-inline">The Commission, by rule or regulation, may exclude from the term <term>meme coin</term> any digital asset or class of digital assets if the Commission determines that the rule or regulation will effectuate the purposes of this Act.</text></clause></subparagraph><subparagraph id="id33fb0bf1f17c4ce4b619c9b7e653086e"><enum>(D)</enum><header>Exclusions</header><text>The term <term>digital commodity</term> does not include any of the following:</text><clause commented="no" id="id7ac02de6d7274897b98b606938c21c52"><enum>(i)</enum><header>Security</header><text>Any security.</text></clause><clause id="id006e3f01cf694e8c8bd4c67d4c74c572"><enum>(ii)</enum><header>Security derivative</header><text>A digital asset that, based on its terms and other characteristics, is, represents, or is functionally equivalent to an agreement, contract, or transaction that is—</text><subclause id="id87c707df971b4a4a8f1c7bdf09969d82"><enum>(I)</enum><text>a security future (as defined in section 2(a) of the Securities Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/15/77b">15 U.S.C. 77b(a)</external-xref>));</text></subclause><subclause id="id2395d6a8234a4b148fe74d601f363172"><enum>(II)</enum><text>a security-based swap; or</text></subclause><subclause id="id98f99a4c8bc347bf8db6dcad718c89e0"><enum>(III)</enum><text>a put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof) (within the meaning of section 2(a)(1) of the Securities Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/15/77b">15 U.S.C. 77b(a)(1)</external-xref>)).</text></subclause></clause><clause id="id90147747596e4f8886a98f6684a7416c"><enum>(iii)</enum><header>Permitted payment stablecoin</header><text>A payment stablecoin (as defined in section 2 of the GENIUS Act (<external-xref legal-doc="public-law" parsable-cite="pl/119/27">Public Law 119–27</external-xref>; 139 Stat. 419)) that is issued by a permitted payment stablecoin issuer (as defined in that section).</text></clause><clause id="ide69f67c3826742118cb44ab8e35c0df7"><enum>(iv)</enum><header>Banking deposit</header><subclause id="id0596c428de004b3384bbe22d72642d38"><enum>(I)</enum><text>A deposit (as defined in section 3 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>)), regardless of the technology used to record the deposit.</text></subclause><subclause id="id1d662b8503fc47499ef93b1c49445193"><enum>(II)</enum><text>An account (as defined in section 101 of the Federal Credit Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1752">12 U.S.C. 1752</external-xref>)), regardless of the technology used to record the account.</text></subclause></clause><clause id="id41a912e0f19b4661a1202c7f693e5f5c"><enum>(v)</enum><header>Commodity</header><text>A digital asset that references, represents an interest in, or is functionally equivalent to—</text><subclause commented="no" id="id9a33fba36fd44879ad494055e4d65aff"><enum>(I)</enum><text>an agricultural commodity; </text></subclause><subclause id="id52bf48dda95f4b769b7dfa70e0bc6d18"><enum>(II)</enum><text>an excluded commodity, other than a security; or</text></subclause><subclause id="id14771b2f51a8403b9d0b1aab2a47f1e3"><enum>(III)</enum><text>an exempt commodity, other than the digital commodity itself, as shall be further defined by the Commission.</text></subclause></clause><clause id="iddb137ade34c747759aedabac1613f3d3"><enum>(vi)</enum><header>Commodity derivative</header><text>A digital asset that, based on its terms and other characteristics, is, represents, or is functionally equivalent to an agreement, contract, or transaction that is—</text><subclause id="idf0094b18ef6948a6801def6a2afa197d"><enum>(I)</enum><text>a contract of sale of a commodity for future delivery or an option thereon;</text></subclause><subclause id="ide18cc8d5e6994f1882aaa064b86d7612"><enum>(II)</enum><text>a security futures product;</text></subclause><subclause id="id7a5e2b442a1a444f9e651a5c0fc518ee"><enum>(III)</enum><text>a swap;</text></subclause><subclause id="id40014f968da142d3908b076fa3ba7496"><enum>(IV)</enum><text>an agreement, contract, or transaction described in subparagraph (C)(i) or (D)(i) of section 2(c)(2);</text></subclause><subclause id="id6e503fc6350544c08efa7fc071a23538"><enum>(V)</enum><text>a commodity option authorized under section 4c; or</text></subclause><subclause id="idd929618f957b4be190d1688c8ea71155"><enum>(VI)</enum><text>a leverage transaction authorized under section 19.</text></subclause></clause><clause id="idfc2ee11e8f6e4990a2d70d59df175647"><enum>(vii)</enum><header>Pooled investment vehicle</header><subclause id="idf96be74aa3304e24bbd95d001f43b5a1"><enum>(I)</enum><header>In general</header><text>A digital asset not described in clause (i) that, based on its terms and other characteristics, is, represents, or is functionally equivalent to an interest in—</text><item id="id6c66709cda69488ab23c2d5e422f2dd2"><enum>(aa)</enum><text>a commodity pool; or</text></item><item id="iddfc8555b42824b03b2e0ef07330ccf62"><enum>(bb)</enum><text>a pooled investment vehicle.</text></item></subclause><subclause id="iddbcb572351434b46a96fbb3e2a2732c6"><enum>(II)</enum><header>Pooled investment vehicle defined</header><text>In this clause, the term <term>pooled investment vehicle</term> means—</text><item id="id89c71324815748f7a31d71653e2cfa29"><enum>(aa)</enum><text>any investment company (as defined in section 3(a) of the Investment Company Act of 1940 (<external-xref legal-doc="usc" parsable-cite="usc/15/80a-3">15 U.S.C. 80a–3(a)</external-xref>));</text></item><item commented="no" id="id94cef77917d94b1bb2a97e752228b8ec"><enum>(bb)</enum><text>any company (as defined in section 2 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/15/80a-2">15 U.S.C. 80a–2</external-xref>)) that would be an investment company under section 3(a) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/15/80a-3">15 U.S.C. 80a–3(a)</external-xref>), but for the exclusions provided from that definition by section 3(c) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/15/80a-3">15 U.S.C. 80a–3(c)</external-xref>), if for purposes of this subclause the company were assumed to be an issuer (as defined in section 2 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/15/80a-2">15 U.S.C. 80a–2</external-xref>)); or</text></item><item commented="no" id="id1a726ae77a594ce99417a53cbcdf9827"><enum>(cc)</enum><text>any entity or person that is not an investment company but holds or will hold assets other than securities.</text></item></subclause></clause><clause id="id490f0dfee61e40d88d03a3af39079e68"><enum>(viii)</enum><header>Good, collectible, and other noncommodity digital asset</header><subclause commented="no" display-inline="no-display-inline" id="id85817db1a05340459d6741bba0f72b20"><enum>(I)</enum><header>In general</header><text display-inline="yes-display-inline">A digital asset that has value, utility, or significance beyond its mere existence as a digital asset, including the digital equivalent of a tangible or intangible good or a nonfungible token (as defined in section 602(a) of the Digital Asset Market Clarity Act of 2026), such as—</text><item id="iddeedd87990fc472b8f00c644c6e532df"><enum>(aa)</enum><text>a work of art, a musical composition, a literary work, or other intellectual property;</text></item><item id="idd0fb571ae18a47469c60892925737d1b"><enum>(bb)</enum><text>collectibles, merchandise, virtual land, and in-game or in-application assets;</text></item><item id="id11357a8c138e49bfbc769b8133f412a7"><enum>(cc)</enum><text>affinity, rewards, or loyalty points, including airline miles or credit card points; or</text></item><item id="id75a18c3e889c45c8b92d2c7c6bf27738"><enum>(dd)</enum><text>rights, licenses, and tickets.</text></item></subclause><subclause id="ide88caf6c5a24428fa81a31e9bd37a2d3"><enum>(II)</enum><header>Exception</header><text>The Commission may determine, by rule or regulation or order, that a good, collectible, or other noncommodity digital asset or class of goods, collectibles, or other noncommodity digital assets is traded in such a manner or form that the asset or class of assets should be considered a digital commodity, such as a mass-minted series of items with substantially similar or nearly identical traits that are marketed or sold interchangeably and are primarily speculative in nature.</text></subclause></clause></subparagraph></paragraph><paragraph id="id6073bf4703c241069db037c68f4efd30"><enum>(28)</enum><header>Digital commodity broker</header><subparagraph id="id153584eb0c634086ad9f45d7c3ceadf2"><enum>(A)</enum><header>In general</header><text>The term <term>digital commodity broker</term> means any person who—</text><clause commented="no" display-inline="no-display-inline" id="idd5835460cf704d2cbe71cc38571c928e"><enum>(i)</enum><text display-inline="yes-display-inline">as a regular business, in a digital commodity cash or spot market—</text><subclause id="id147d79bcde494aef8745664d44d3a09e"><enum/></subclause><subclause commented="no" display-inline="yes-display-inline" id="id2ee6716394844feeaa32119c51c98a19"><enum>(I)</enum><item commented="no" display-inline="yes-display-inline" id="id637f6fcac46540e98a8cc8d7352326f2"><enum>(aa)</enum><text>solicits or accepts an order from a person who is not an eligible contract participant for the purchase or sale of a unit of a digital commodity; and</text></item><item commented="no" display-inline="no-display-inline" id="idfe9bd65ecc164195a3f978280c7e36ed" indent="up1"><enum>(bb)</enum><text display-inline="yes-display-inline">in conjunction with the activity described in item (aa), accepts or maintains control over the funds or other property or assets of the person or the execution of the transaction; </text></item></subclause><subclause id="idb4515eb004044c9482aab1be2268aa80"><enum>(II)</enum><text>solicits or accepts an order from a person who is not an eligible contract participant on behalf of a digital commodity dealer for the purchase or sale of a unit of a digital commodity; or</text></subclause><subclause id="idbd8cf2213bd745fe99f8148863fa6746"><enum>(III)</enum><text>solicits or accepts an order from a person who is not an eligible contract participant for the purchase or sale of a unit of a digital commodity on or subject to the rules of a registered digital commodity exchange; or</text></subclause></clause><clause id="id519ee848ff6e4162b061dd96650d14ac"><enum>(ii)</enum><text>is registered with the Commission as a digital commodity broker.</text></clause></subparagraph><subparagraph id="idd597288530c64c7ca6980b0443951ee4"><enum>(B)</enum><header>Exceptions</header><text>The term <term>digital commodity broker</term> does not include a person solely because the person—</text><clause id="idb3e41eb0b59c4042899e7db82a1071c8"><enum>(i)</enum><text>enters into 1 or more digital commodity transactions that are attributable or solely incidental to making, sending, receiving, or facilitating payments, whether involving a payment service provider or on a peer-to-peer basis; or</text></clause><clause id="id3fd190826e1249999b2714d950f45652"><enum>(ii)</enum><text>is a bank (as defined in section 3(a) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)</external-xref>)) engaging in certain banking activities with respect to a digital commodity in the same or a similar manner as a bank is excluded from the definition of a broker under section 3(a)(4) of that Act (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)(4)</external-xref>), as determined by the Commission.</text></clause></subparagraph><subparagraph commented="no" id="idc59f350312424eec8de371e7fe166d4b"><enum>(C)</enum><header>Further definition</header><text>The Commission, by rule or regulation, may exclude from the term <term>digital commodity broker</term> any person or class of persons if the Commission determines that the rule or regulation is in the public interest and will effectuate the purposes of this Act.</text></subparagraph></paragraph><paragraph id="idaf659c3196464ffcbf4f3faca643ebaf"><enum>(29)</enum><header>Digital commodity dealer</header><subparagraph id="id8766a58d36d446e489ffb88c84995d4c"><enum>(A)</enum><header>In general</header><text>The term <term>digital commodity dealer</term> means any person who—</text><clause id="id96e77b3ab5e34186afd69b144b878de2"><enum>(i)</enum><text>as a regular business, in a spot or cash digital commodity market, enters into, or offers to enter into, a purchase or sale of a unit of a digital commodity—</text><subclause commented="no" id="id927d8505eded4319aa28581d9fa2de1e"><enum>(I)</enum><text>with a counterparty that is not an eligible contract participant; and</text></subclause><subclause commented="no" id="id025a53e2b441429e997326d59629b25f"><enum>(II)</enum><text>not on or through a registered digital commodity exchange or decentralized finance trading protocol; or</text></subclause></clause><clause id="id03925ee6b4914d34bf1781f4d1b90f67"><enum>(ii)</enum><text>is registered with the Commission as a digital commodity dealer.</text></clause></subparagraph><subparagraph id="id9660fe5f759e4dbb88deb16f6fcab978"><enum>(B)</enum><header>Exception</header><text>The term <term>digital commodity dealer</term> does not include a person solely because the person—</text><clause id="id863df78d4850404b9534ee535114a62c"><enum>(i)</enum><text>enters into 1 or more digital commodity transactions that are attributable or solely incidental to making, sending, receiving, or facilitating payments, whether involving a payment service provider or on a peer-to-peer basis; or</text></clause><clause id="id4dc0bc94730f4b97b779eb0a4ec19b93"><enum>(ii)</enum><text>is a bank (as defined in section 3(a) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)</external-xref>)) engaging in certain banking activities with respect to a digital commodity in the same or a similar manner as a bank is excluded from the definition of a dealer under section 3(a)(5) of that Act (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)(5)</external-xref>), as determined by the Commission.</text></clause></subparagraph><subparagraph commented="no" id="id0add3c5b621945f4a753c8b9607ef1f2"><enum>(C)</enum><header>Further definition</header><text>The Commission, by rule or regulation, may exclude from the term <term>digital commodity dealer</term> any person or class of persons if the Commission determines that the rule or regulation is in the public interest and will effectuate the purposes of this Act.</text></subparagraph></paragraph><paragraph id="idad379650d9b84e9382f2bf53381ed55f"><enum>(30)</enum><header>Digital commodity exchange</header><text>The term <term>digital commodity exchange</term> means a trading facility that offers or seeks to offer a cash or spot market in at least 1 digital commodity.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idd746c1f11bb44cc49f10bf0162632fb5"><enum>(6)</enum><text>by inserting after paragraph (49) (as so redesignated) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id83ef780625a04f5db984db87c5447f6f"><paragraph id="id0cc986ba5c2442869c660b848aca83d2"><enum>(50)</enum><header>Mixed digital asset transaction</header><text>The term <term>mixed digital asset transaction</term> means a transaction in which a digital commodity is traded for a security.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idf230acc699d2473586f9f160e18124c1"><enum>(7)</enum><text>by inserting after paragraph (55) (as so redesignated) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idb7fdb24c7b64424d87c82d647a870625"><paragraph id="id317a5cc3764e4e90aa080022b8053008"><enum>(56)</enum><header>Qualified digital asset custodian</header><subparagraph commented="no" display-inline="no-display-inline" id="id7181b89551804326b6c4f7ee9515cd04"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>qualified digital asset custodian</term> means a digital asset custodian that—</text><clause id="id1e5bdba7f1564017a580db3811aaafc9"><enum>(i)</enum><text>holds digital assets on behalf of a person registered under this Act or a customer of a person registered under this Act; and</text></clause><clause id="ide219e967e1c344aaaf76af150b4fb045"><enum>(ii)</enum><text>is in compliance with subparagraphs (B) though (D).</text></clause></subparagraph><subparagraph id="ide6936d92dbc347dda3e5c0258e1fedb7"><enum>(B)</enum><header>Supervision requirement</header><text>A digital asset custodian is in compliance with this subparagraph if the digital asset custodian is subject to—</text><clause id="id3f12e44ec30b4f0bbc7208b9e6e0f185"><enum>(i)</enum><text>supervision and examination for custody and safekeeping of digital assets by an appropriate Federal banking agency, the National Credit Union Administration, the Commission, or the Securities and Exchange Commission; or</text></clause><clause id="id00ba7e1b6e9f409eaf240cf4e90d661a"><enum>(ii)</enum><text>adequate supervision and appropriate regulation for custody and safekeeping of digital assets by—</text><subclause id="id902ef6d140324159ac7883b3dd4c70fa"><enum>(I)</enum><text>a State bank supervisor (as defined in section 3 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>));</text></subclause><subclause id="id85bcba1de1004ac190fae0b687f173d9"><enum>(II)</enum><text>a State officer, agency, or other entity that has primary regulatory authority over nondepository State trust companies;</text></subclause><subclause id="id5eee5c4c3c6245eb90b97d698625b2ef"><enum>(III)</enum><text>a State credit union supervisor (as defined in section 6003 of the Anti-Money Laundering Act of 2020 (<external-xref legal-doc="usc" parsable-cite="usc/31/5311">31 U.S.C. 5311</external-xref> note; division F of <external-xref legal-doc="public-law" parsable-cite="pl/116/283">Public Law 116–283</external-xref>)); or</text></subclause><subclause id="ida122ae204a4a4f4096fd298e7e107543"><enum>(IV)</enum><text>an appropriate foreign governmental authority in the home country of the digital asset custodian.</text></subclause></clause></subparagraph><subparagraph id="ida7b00cab995e49f1bf2e1f753eed54da"><enum>(C)</enum><header>Other requirements</header><text>A digital asset custodian is in compliance with this subparagraph if the following requirements are met:</text><clause id="idb238b36735d44fc7996de9296a968434"><enum>(i)</enum><header>Not otherwise prohibited</header><text>The digital asset custodian has not been prohibited by the applicable supervisor described in subparagraph (B) from engaging in an activity with respect to the custody and safekeeping of digital assets.</text></clause><clause id="id88109102da364df2ac5b8d7368b5f333"><enum>(ii)</enum><header>Information sharing</header><subclause id="ida481981c6b0642719587daff5748ca18"><enum>(I)</enum><header>In general</header><text>The digital asset custodian shares information with the Commission on request and complies with such requirements for periodic sharing of information regarding customer accounts that the digital asset custodian holds on behalf of an entity registered with the Commission as the Commission determines by rule are reasonably necessary to effectuate any of the provisions, or to accomplish any of the purposes, of this Act.</text></subclause><subclause id="id1467bdcf639f429e9a9bb6ec0dac575b"><enum>(II)</enum><header>Provision of information</header><text>If the digital asset custodian is subject to regulation and examination by an appropriate Federal banking agency, the digital asset custodian may satisfy any information request described in subclause (I) by providing the Commission with a detailed listing, in writing, of the digital assets of a customer in the custody of, or use by, the digital asset custodian.</text></subclause></clause></subparagraph><subparagraph id="id147899ff46b448a9a6f66ef3b2d7006c"><enum>(D)</enum><header>Rulemaking</header><clause id="id42bd55a9b71b4e51843809fad631c9df"><enum>(i)</enum><header>In general</header><text>The Commission shall prescribe rules to permit a person registered with the Commission to be a qualified digital asset custodian.</text></clause><clause id="id1a4d82ba1ef549b1a233e23c9c41f15a"><enum>(ii)</enum><header>Content</header><text>In prescribing the rules under clause (i), to be a qualified digital asset custodian, the Commission shall require a person registered with the Commission—</text><subclause id="ide482a08f9bcd4b6e8a21a6994c14d948"><enum>(I)</enum><text>to implement requirements consistent with the requirements described in subparagraph (E)(i);</text></subclause><subclause id="id055fed0b77f34510b259051d675d87d1"><enum>(II)</enum><text>to establish sufficient system safeguards;</text></subclause><subclause id="idc5fa3323d554413fb9884fa00ccae561"><enum>(III)</enum><text>to prevent or mitigate conflicts of interest, as appropriate; and</text></subclause><subclause id="id6c5c372ec8804d50af51137d71062aaf"><enum>(IV)</enum><text>to establish separate governance arrangements for the custodial function of the entity.</text></subclause></clause></subparagraph><subparagraph id="id9bd90073b4df4d558afaea9138fb848b"><enum>(E)</enum><header>Adequate supervision and appropriate regulation</header><clause id="id329af1b9798947f99193596b5c0e4614"><enum>(i)</enum><header>In general</header><text>For purposes of subparagraph (B), the terms <quote>adequate supervision</quote> and <quote>appropriate regulation</quote> mean such minimum standards for supervision and regulation as are reasonably necessary to protect the digital assets held by a person registered under this Act, including standards relating to the licensing, examination, and supervisory processes that require the person to, at a minimum—</text><subclause id="idd333aa7ec40647a28de1b6fda2294ecc"><enum>(I)</enum><text>receive a review and evaluation of ownership, character and fitness, conflicts of interest, business model, financial statements, funding resources, and policies and procedures of the digital asset custodian;</text></subclause><subclause id="idd6983036be1b46ad8e7fa7d0178498a0"><enum>(II)</enum><text>hold capital sufficient to conduct an orderly wind-down and resolution of the digital asset custodian;</text></subclause><subclause id="id8438ae90a6be4564b770f7edb8d289ee"><enum>(III)</enum><text>protect customer assets;</text></subclause><subclause id="ided6acf3fcf7d43d0ac6b9af29476ad50"><enum>(IV)</enum><text>establish and maintain books and records regarding the business of the digital asset custodian;</text></subclause><subclause id="id014fd4c41d92461395d11824a6d7407a"><enum>(V)</enum><text>submit financial statements and audited financial statements to the applicable supervisor described in subparagraph (B);</text></subclause><subclause id="idf3721f9fc4d947f59be23db3b8db04ab"><enum>(VI)</enum><text>provide disclosures to the applicable supervisor described in subparagraph (B) regarding actions, proceedings, and other items as determined by the supervisor;</text></subclause><subclause id="idbb3998bb41b446a6a789315190e46f6d"><enum>(VII)</enum><text>maintain and enforce policies and procedures for compliance with applicable State and Federal laws, including those related to anti-money laundering and cybersecurity;</text></subclause><subclause id="id3297096a36d7490c9dc14618a9bd0984"><enum>(VIII)</enum><text>establish a business continuity plan to ensure functionality in cases of disruption; and</text></subclause><subclause id="id608868d375114eb1b212603997dc2d65"><enum>(IX)</enum><text>establish policies and procedures to resolve complaints.</text></subclause></clause><clause id="idb8a256991a6f4d8bbe857d65f0c96601"><enum>(ii)</enum><header>Rulemaking with respect to definitions</header><subclause id="id5e59a8019710421c806a8795ddd2d93f"><enum>(I)</enum><header>In general</header><text>For purposes of this paragraph, the Commission shall, by rule, further define the terms <quote>adequate supervision</quote> and <quote>appropriate regulation</quote> as necessary and appropriate for the protection of customers, and consistent with the purposes of this Act.</text></subclause><subclause id="id40e6d66536354e9290cadfcfd85e5617"><enum>(II)</enum><header>Existing digital asset custodians</header><text>A State depository institution or a trust company operating as a digital asset custodian before the effective date of a rulemaking under subclause (I) is deemed subject to adequate supervision and appropriate regulation if—</text><item id="id9203c03de0a64e9aa36e86af15e3b613"><enum>(aa)</enum><text>the State depository institution or trust company is expressly permitted by a State bank supervisor to engage in the custody and safekeeping of digital assets;</text></item><item id="idbcfa172a414247be9e41d7e90bd6a045"><enum>(bb)</enum><text>the State bank supervisor has established licensing, examination, and supervisory processes that require the State depository institution or trust company to, at a minimum, meet the conditions described in subclauses (I) through (IX) of clause (i); and</text></item><item id="id2a6e6a0af6f54b3c901d9b57e746457e"><enum>(cc)</enum><text>the State depository institution or trust company is in good standing with its State bank supervisor.</text></item></subclause><subclause id="id41a8a4d956004e668e74de752c96dd27"><enum>(III)</enum><header>Transition period for certain custodians</header><text>In implementing the rulemaking under subclause (I), the Commission shall provide a transition period of not less than 2 years for any State depository institution or trust company that is deemed subject to adequate supervision and appropriate regulation under subclause (II) on the effective date of the rulemaking.</text></subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id682e27b975f442c4b68360564e1cec46"><enum>(F)</enum><header>Authority to temporarily suspend standards</header><text display-inline="yes-display-inline">The Commission may, by rule or order, temporarily suspend, in whole or in part, any requirement imposed under, or any standard referred to in, this section, or any requirement to utilize a qualified digital asset custodian, if the Commission determines that the suspension would be consistent with the public interest and the purposes of this Act.</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="id710eee08f6a4462c81bcbc4bfbf514ac"><enum>(8)</enum><text>in paragraph (57) (as so redesignated)—</text><subparagraph id="id86839e1c82d24c3da4d2528239ef564b"><enum>(A)</enum><text>in subparagraph (E), by striking <quote>and</quote> at the end;</text></subparagraph><subparagraph id="id043dcc1155db4e579b7c53629b1d97f2"><enum>(B)</enum><text>in subparagraph (F), by striking the period at the end and inserting <quote>; and</quote>; and</text></subparagraph><subparagraph id="id5bb9dfd8c3f84902ba0f6e83401eb9c3"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idbde7edf7735348b7a83ba63100228ac0"><subparagraph id="id047d731c2cb742ac8c38fdb3454f2302"><enum>(G)</enum><text>a digital commodity exchange registered under section 5i.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="id67f87ed6096a4708b7af0b50fc025baf"><enum>(b)</enum><header>Conforming amendments</header><paragraph commented="no" id="id881C56783C894111B75E51F7E2B1F7A1"><enum>(1)</enum><text>Section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>) is amended—</text><subparagraph commented="no" id="idCD6A4F7312B2424BA72354F8DDC9A41F"><enum>(A)</enum><text>in paragraph (32)(A) (as redesignated by subsection (a)(1)), in the matter preceding clause (i), by striking <quote>(18)(A)</quote> and inserting <quote>(33)(A)</quote>; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id9AD543B877D54868BE560C7360EF7757"><enum>(B)</enum><text>in paragraph (33)(A)(vii)(III)(aa) (as redesignated by subsection (a)(1)), by striking <quote>(17)(A)</quote> and inserting <quote>(32)(A)</quote>.</text></subparagraph></paragraph><paragraph commented="no" id="id4335F697D27145E09EA8A0855D4E4A05"><enum>(2)</enum><text>Section 4(c)(1)(A)(i)(I) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6">7 U.S.C. 6(c)(1)(A)(i)(I)</external-xref>) is amended by striking <quote>paragraphs (2), (3), (4), (5), and (7), paragraph (18)(A)(vii)(III), paragraphs (23), (24), (31), (32), (38), (39), (41), (42), (46), (47), (48), and (49) of section 1a</quote> and inserting <quote>paragraphs (2), (5), (6), (11), (13), (33)(A)(vii)(III), (38), (39), (46), (47), (54), (55), (58), (59), (63), (64), (65), and (66) of section 1a</quote>.</text></paragraph><paragraph commented="no" id="idCAA67E1C52EA4D5394D3ECEC614D7EB0"><enum>(3)</enum><text>Section 4q(a)(1) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6q">7 U.S.C. 6q(a)(1)</external-xref>) is amended by striking <quote>1a(9)</quote> and inserting <quote>1a(15)</quote>.</text></paragraph><paragraph id="id68ee4dfd455c47e0b787d4c6b380f6b8"><enum>(4)</enum><text>Section 4s of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6s">7 U.S.C. 6s</external-xref>) is amended—</text><subparagraph id="idf80bdd065cbb4dc19bfb34f46f820c61"><enum>(A)</enum><text>in subsection (f)(1)(D), by striking <quote>1a(47)(A)(v)</quote> and inserting <quote>1a(64)(A)(v)</quote>; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id887b9be25ba34ac292249a77b48a0d42"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (h)(5)(A)(i), in the matter preceding subclause (I), by striking <quote>1a(18) of this Act</quote> and inserting <quote>1a(33)</quote>.</text></subparagraph></paragraph><paragraph id="id5daa0da061094c938803cfbe62153376"><enum>(5)</enum><text>Section 4t(b)(1)(C) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6t">7 U.S.C. 6t(b)(1)(C)</external-xref>) is amended by striking <quote>1a(47)(A)(v)),</quote> and inserting <quote>1a(64)(A)(v)),</quote>.</text></paragraph><paragraph commented="no" id="id9E74183F596743F685420CE6976AEFEA"><enum>(6)</enum><text>Section 5 of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/7">7 U.S.C. 7</external-xref>) is amended—</text><subparagraph commented="no" id="id635C44CCFC6D414B9CF488EA2BBAC392"><enum>(A)</enum><text>in subsection (d)(23), by striking <quote>1a(47)(A)(v)</quote> and inserting <quote>1a(64)(A)(v)</quote>; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6FFA56956FD240CE9FE98087AAE980C1"><enum>(B)</enum><text>in subsection (e)(1), by striking <quote>1a(9)</quote> and inserting <quote>1a(15)</quote>.</text></subparagraph></paragraph><paragraph id="id2734e2cb8c01444dbbeb6a2458c8df0b"><enum>(7)</enum><text>Section 5b(k)(3)(A) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/7a-1">7 U.S.C. 7a–1(k)(3)(A)</external-xref>) is amended by striking <quote>1a(47)(A)(v))</quote> and inserting <quote>1a(64)(A)(v))</quote>.</text></paragraph><paragraph id="idc782be895f9a407b8f1346395c7a2e1d"><enum>(8)</enum><text>Section 5h(f)(10)(A)(iii) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/7b-3">7 U.S.C. 7b–3(f)(10)(A)(iii)</external-xref>) is amended by striking <quote>1a(47)(A)(v)</quote> and inserting <quote>1a(64)(A)(v)</quote>.</text></paragraph><paragraph id="id3bcafefe400148c2ac8e5a89473c73db"><enum>(9)</enum><text>Section 21(f)(4)(C) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/24a">7 U.S.C. 24a(f)(4)(C)</external-xref>) is amended by striking <quote>1a(48)</quote> and inserting <quote>1a(65)</quote>.</text></paragraph><paragraph id="id5eb3557990c74b4a86fafe04247be68d"><enum>(10)</enum><text>Section 5(e) of the Securities Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/15/77e">15 U.S.C. 77e(e)</external-xref>) is amended by striking <quote>section 1a(18) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a(18)</external-xref>)</quote> and inserting <quote>section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>)</quote>.</text></paragraph><paragraph commented="no" id="id238A2D8317CB488B964D992E98A0B888"><enum>(11)</enum><text>Section 3C(g)(3)(A)(v) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c-3">15 U.S.C. 78c–3(g)(3)(A)(v)</external-xref>) is amended by striking <quote>section 1a(10) of the Commodity Exchange Act;</quote> and inserting <quote>section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>);</quote>.</text></paragraph><paragraph commented="no" id="id5AA1F3C5242846A6890C5F5296B4844B"><enum>(12)</enum><text>Section 6(g)(5)(B)(i) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78f">15 U.S.C. 78f(g)(5)(B)(i)</external-xref>) is amended—</text><subparagraph commented="no" id="idCB35C76392684F19B9C935B6086CB35B"><enum>(A)</enum><text>in subclause (I), by striking <quote>section 1a(18)(B)(ii) of the Commodity Exchange Act</quote> and inserting <quote>subparagraph (B)(ii) of section 1a(33) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a(33)</external-xref>)</quote>; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idEBD3DC0877F34841A8060D318DEE9D3B"><enum>(B)</enum><text>in subclause (II), by striking <quote>such section 1a(18))</quote> and inserting <quote>that section)</quote>.</text></subparagraph></paragraph><paragraph id="idf68a962962ba4a4ab9da314c4ca89642"><enum>(13)</enum><text>Section 15F(h)(5)(A)(i) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78o-10">15 U.S.C. 78o–10(h)(5)(A)(i)</external-xref>) is amended, in the matter preceding subclause (I), by striking <quote>1a(18)</quote> and inserting <quote>1a(33)</quote>.</text></paragraph><paragraph id="idfba43397af1244fbba029fd5892a0135"><enum>(14)</enum><text>Section 712 of the Wall Street Transparency and Accountability Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/15/8302">15 U.S.C. 8302</external-xref>) is amended—</text><subparagraph id="id606661d094a647e7a1b504cb1ea2619e"><enum>(A)</enum><text>in subsection (a)(8), by striking <quote>1a(47)(D)</quote> each place it appears and inserting <quote>1a(64)(D)</quote>; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idcd49fd3fcacf4ff99bb1fd157be3dcec"><enum>(B)</enum><text>in subsection (d)(1), by striking <quote>1a(47)(A)(v)</quote> each place it appears and inserting <quote>1a(64)(A)(v)</quote>.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id02C2E7B662704725AD0250F4F97253EF"><enum>(15)</enum><text>Section 752(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (<external-xref legal-doc="usc" parsable-cite="usc/15/8325">15 U.S.C. 8325(a)</external-xref>) is amended by striking <quote>section 1a(39) of the Commodity Exchange Act),</quote> and inserting <quote>section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>)),</quote>.</text></paragraph><paragraph id="id35fbb90527164af28609349435cbe141"><enum>(16)</enum><text>Section 403 of the Legal Certainty for Bank Products Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/7/27a">7 U.S.C. 27a</external-xref>) is amended—</text><subparagraph id="id8ae5b9fa1f5b45a18693966799fb146f"><enum>(A)</enum><text>in subsection (a)(2), by striking <quote>1a(47)(A)(v)</quote> and inserting <quote>1a(64)(A)(v)</quote>; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0e57d15a881c46509e6256014da1c33e"><enum>(B)</enum><text>in each of subsections (b)(1) and (c)(2), by striking <quote>1a(47)</quote> and inserting <quote>1a(64)</quote>.</text></subparagraph></paragraph></subsection></section><section id="id5309a458366f4882be851f2d696c096d"><enum>102.</enum><header>Definitions under this Act</header><text display-inline="no-display-inline">In this Act, the terms <term>blockchain</term>, <term>decentralized finance messaging system</term>, <term>decentralized finance trading protocol</term>, <term>decentralized governance system</term>, <term>digital asset</term>, <term>digital commodity</term>, <term>digital commodity broker</term>, <term>digital commodity dealer</term>, <term>digital commodity exchange</term>, and <term>mixed digital asset transaction</term> have the meanings given those terms, respectively, in section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>).</text></section><section id="idf29b1d42f4e14bd9aa6a672aafc3fa0b"><enum>103.</enum><header>Rulemakings</header><subsection id="id884147c5ea2b40f2a3d5b5c553455034"><enum>(a)</enum><header>Definitions</header><text>The Commodity Futures Trading Commission shall issue rules to further define the terms <term>associated person of a digital commodity broker</term>, <term>associated person of a digital commodity dealer</term>, <term>blockchain</term>, <term>blockchain application</term>, <term>blockchain protocol</term>, <term>blockchain system</term>, <term>decentralized finance messaging system</term>, <term>decentralized finance trading protocol</term>, <term>decentralized governance system</term>, and <term>digital commodity</term>(as defined in section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>)).</text></subsection><subsection commented="no" id="idc69eb545358f49348deb94f619275775"><enum>(b)</enum><header>Joint rulemaking for exchanges and intermediaries</header><text>The Commodity Futures Trading Commission and the Securities and Exchange Commission shall jointly issue rules to exempt persons dually registered with the Commodity Futures Trading Commission and the Securities and Exchange Commission from duplicative, conflicting, or unduly burdensome provisions of this Act, the securities laws (as defined in section 3(a) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)</external-xref>)), and the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1">7 U.S.C. 1 et seq.</external-xref>), and the rules under those Acts, to the extent that the exemption would—</text><paragraph commented="no" display-inline="no-display-inline" id="iddd0cc3515bc24e9a9f4193cdc5387ed0"><enum>(1)</enum><text display-inline="yes-display-inline">foster the development of fair and orderly markets in digital assets;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id210f5c7a53fe45abb7346e936f1f194e"><enum>(2)</enum><text display-inline="yes-display-inline">be necessary or appropriate for the protection of customers; and </text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0e9af24a31cd4001b04b90a656b0bdc2"><enum>(3)</enum><text display-inline="yes-display-inline">be consistent with the protection of investors.</text></paragraph></subsection><subsection commented="no" id="idd586c5d04e4b4f808ffb47085b441c41"><enum>(c)</enum><header>Joint rulemaking for mixed digital asset transactions</header><text>The Commodity Futures Trading Commission and the Securities and Exchange Commission shall jointly issue rules applicable to mixed digital asset transactions under this Act and the amendments made by this Act, including by further defining such term.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="idcba8b278605642499fc6844ec7479417"><enum>(d)</enum><header>Joint rulemaking, procedures, or guidance for delisting</header><text>Not later than 180 days after the date of enactment of this Act, the Commodity Futures Trading Commission and the Securities and Exchange Commission (referred to in this subsection as the <term>Commissions</term>) shall jointly issue rules, procedures, or guidance (as determined appropriate by the Commissions) regarding the process to delist an asset for trading under section 104 if the Commissions determine that the listing is inconsistent with the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1">7 U.S.C. 1 et seq.</external-xref>), the securities laws (as defined in section 3(a) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)</external-xref>)) (including regulations under those laws), or this Act. </text></subsection><subsection commented="no" id="id0072680a7dcd4fabab92ac4c9976a02f"><enum>(e)</enum><header>Joint rules for portfolio margining determinations</header><paragraph commented="no" id="idb84e266bf0724a94b80ee709791297a4"><enum>(1)</enum><header>In general</header><text>Not later than 360 days after the date of enactment of this Act, the Commodity Futures Trading Commission and the Securities and Exchange Commission shall jointly issue rules with respect to margin, customer protection, segregation, or other requirements as necessary to facilitate portfolio margining of securities (including related extensions of credit), security-based swaps, contracts for future delivery, options on a contract for future delivery, swaps, and digital commodities, or any subset thereof, in—</text><subparagraph commented="no" id="idafb164f409e5491cb729e74ce16c9913"><enum>(A)</enum><text>a securities account carried by a registered broker or dealer or a security-based swap account carried by a registered security-based swap dealer;</text></subparagraph><subparagraph commented="no" id="id9c373f1584ae4977a558773153821e5e"><enum>(B)</enum><text>a futures or cleared swap account carried by a registered futures commission merchant (as defined in section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>));</text></subparagraph><subparagraph commented="no" id="id59780bd08b6a4daeaefbdcfc5cb2b126"><enum>(C)</enum><text>a swap account carried by a swap dealer; or</text></subparagraph><subparagraph commented="no" id="idbe4dbec9e8e64237b56dbf7aae496fcb"><enum>(D)</enum><text>a digital commodity account carried by a registered digital commodity broker or digital commodity dealer that is also registered in such other capacity as is necessary to also carry the other customer or counterparty positions being held in the account.</text></subparagraph></paragraph><paragraph commented="no" id="id53b6b3d9a952465aa1a9f93c4012fb5d"><enum>(2)</enum><header>Requirements</header><text>With respect to a joint rulemaking described in paragraph (1)—</text><subparagraph commented="no" id="id1959c6a035c64b96ae9095c1f3ca86ce"><enum>(A)</enum><text>the joint rule shall be in the public interest and provide for the appropriate protection of customers;</text></subparagraph><subparagraph commented="no" id="id24bea871fa4a445e889db854e54a2c18"><enum>(B)</enum><text>the Commodity Futures Trading Commission and the Securities and Exchange Commission shall consider the public interest of the joint rule through the solicitation of public comments; and</text></subparagraph><subparagraph commented="no" id="id82d65d54f11f474292128b375d0be661"><enum>(C)</enum><text>the Commodity Futures Trading Commission and the Securities and Exchange Commission shall consult with other relevant foreign or domestic regulators, including the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency, as appropriate.</text></subparagraph></paragraph></subsection><subsection commented="no" id="id61c6355b09134abd98683e589ea41771"><enum>(f)</enum><header>Conflicts of interest rulemaking</header><paragraph commented="no" id="id990a20db3942407db7262d3e1c2e9287"><enum>(1)</enum><header>Rulemaking</header><text>Not later than 17 months after the date of enactment of this Act, the Commodity Futures Trading Commission shall issue rules establishing requirements for the identification, mitigation, and resolution of conflicts of interest among and across registered entities (as defined in section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>)) and persons required to be registered with the Commodity Futures Trading Commission, including conflicts of interest related to vertically integrated market structures.</text></paragraph><paragraph commented="no" id="id27b39c2bb7f44a5e8057315fc8c8b6e5"><enum>(2)</enum><header>Minimum standards</header><text>The rules issued under paragraph (1) shall, at a minimum—</text><subparagraph commented="no" id="id2a2d7b783c94478886adb64560937777"><enum>(A)</enum><text>establish governance, personnel, and financial resource separation among affiliated entities that perform distinct regulated functions;</text></subparagraph><subparagraph commented="no" id="id0c6dcd2e82544104a27933a754756cf3"><enum>(B)</enum><text>prohibit trading facilities or intermediaries from acting as counterparties to customer transactions or otherwise engaging in self-dealing, except as provided in section 5i(b)(2)(B) of the Commodity Exchange Act;</text></subparagraph><subparagraph commented="no" id="id39bdacd9f33842719d5b560f27688be2"><enum>(C)</enum><text>require appropriate safeguards for custody and use of customer assets to prevent conflicts arising from commingling or misuse;</text></subparagraph><subparagraph commented="no" id="idad92b00c50ac4f87a1dfb8d04dab3316"><enum>(D)</enum><text>mandate disclosure and management of material conflicts, including those involving affiliated entities or proprietary trading; and</text></subparagraph><subparagraph commented="no" id="ida8e4e05433a247108f434514b61fa933"><enum>(E)</enum><text>ensure independent oversight and decision-making in market operations and compliance.</text></subparagraph></paragraph></subsection></section><section id="ide0263e84e71c4590a42fcbe86af6916f"><enum>104.</enum><header>Expeditied registration for digital commodity exchanges, brokers, and dealers; provisional status</header><subsection id="id2749e1a4a04545b9905d9a75bc14e5ca"><enum>(a)</enum><header>Registration</header><paragraph id="id706d2f09f6d04b559c2244422145d80c"><enum>(1)</enum><header>In general</header><text>Unless exempted from registration, a person shall not act as a digital commodity exchange, digital commodity broker, or digital commodity dealer after the end of the 90-day period beginning on the date the process described in paragraph (2) is adopted by the Commodity Futures Trading Commission, unless, as the case may be, the person is registered as a—</text><subparagraph id="idb0007cc83f8f4abc90431fd2b7a5d838"><enum>(A)</enum><text>digital commodity exchange pursuant to section 5i of the Commodity Exchange Act;</text></subparagraph><subparagraph id="id158b27bb7d484d8ab07d1ed5c897ab43"><enum>(B)</enum><text>digital commodity broker pursuant to section 4u of the Commodity Exchange Act; or</text></subparagraph><subparagraph id="idce06d87053924622bd281ca688b843c3"><enum>(C)</enum><text>digital commodity dealer pursuant to section 4u of the Commodity Exchange Act.</text></subparagraph></paragraph><paragraph id="id8ce8ba081a16426eb4eea866b5e158eb"><enum>(2)</enum><header>Expedited process</header><text>Not later than 180 days after the date of enactment of this Act, the Commodity Futures Trading Commission shall adopt, by rule, regulation, or order, a process for expedited registration of persons required to be registered pursuant to paragraph (1).</text></paragraph></subsection><subsection id="idba1c4f080ed5406b82c4bcb7ae70c890"><enum>(b)</enum><header>Provisional status</header><paragraph id="id25838c1f54194adb81a10456642eca7c"><enum>(1)</enum><header>In general</header><text>A person who is registered in accordance with subsection (a) shall be in provisional status until—</text><subparagraph id="idf1c8221ac63f4effa9ce2b07c2812482"><enum>(A)</enum><text>in the case of a digital commodity broker or digital commodity dealer, the date that is 270 days after the final effective date of the rulemakings required under section 4u of the Commodity Exchange Act; or</text></subparagraph><subparagraph id="idda8a1bb5d1554cf88cadfda4d77bcc98"><enum>(B)</enum><text>in the case of a digital commodity exchange, the date that is 270 days after the final effective date of the rulemakings required under section 5i of such Act.</text></subparagraph></paragraph><paragraph id="idaf834f6a5d0a4dcca36a38fd827bbfac"><enum>(2)</enum><header>Payment of fees</header><text>A person in provisional status shall pay all fees required of persons registered with the Commodity Futures Trading Commission under section 8e of the Commodity Exchange Act.</text></paragraph></subsection><subsection id="ida95244a3b76040ab986fa4dd1a492cc4"><enum>(c)</enum><header>Operations prior to regulations</header><paragraph id="ida3559aaa04354949b18e1d76317df03f"><enum>(1)</enum><header>Requirements</header><text>A person in provisional status pursuant to subsection (b) shall be subject to the requirements of this section and the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1">7 U.S.C. 1 et seq.</external-xref>) and any rules or regulations promulgated under this section or that Act, as applicable.</text></paragraph><paragraph id="id80dab1ebe55840c4a36a1587ed225fe7"><enum>(2)</enum><header>Listings</header><subparagraph id="id40cf995aabbf4cdfbb3a5c02eb9c3fcc"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), a person in provisional status pursuant to subsection (b) may continue to offer, solicit, trade, facilitate, execute, clear, report, or otherwise deal in any digital asset offered on or through the facilities of the person before the date of registration under this section, until such time as the rulemaking on definitions required under section 103(a) is effective.</text></subparagraph><subparagraph id="id7966eda2bb014c198650f0b4080dd4a2"><enum>(B)</enum><header>Delisting</header><text>Before the effective date of the rulemaking on definitions under section 103(a), a person in provisional status pursuant to subsection (b) shall cease offering, soliciting, trading, facilitating, executing, clearing, reporting, or otherwise dealing in any digital asset required to be delisted pursuant to a joint delisting process established under section 103(e).</text></subparagraph></paragraph><paragraph commented="no" id="idb9a684d216354869a4cee0d873159f0b"><enum>(3)</enum><header>Exemptive authority</header><text>In order to promote responsible innovation and fair competition, or protect customers, the Commodity Futures Trading Commission may exempt any persons or class of persons in provisional status pursuant to subsection (b) from any requirements of this section or the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1">7 U.S.C. 1 et seq.</external-xref>) or any rules or regulations promulgated under this section or that Act, as applicable.</text></paragraph></subsection><subsection id="idd82ce3de39f4498f8957c55ed3522f0b"><enum>(d)</enum><header>Customer disclosure before registration</header><paragraph id="idc9ebd8a796ab4bfc968c89ca40d60a81"><enum>(1)</enum><header>In general</header><text>Beginning 30 days after the date of enactment of this Act, any person acting as a digital commodity exchange, digital commodity broker, or digital commodity dealer shall disclose to the customers of the person so acting, in the disclosure documents, offering documents, and promotional material of the person so acting, in a prominent manner, that the person is not registered with or regulated by the Commodity Futures Trading Commission.</text></paragraph><paragraph id="id88ec83dd25874cca8e45a74d8b7130a2"><enum>(2)</enum><header>Exception</header><text>Paragraph (1) shall not apply to any person who registers pursuant to subsection (a).</text></paragraph></subsection></section><section id="idf291dd657e1c4ea1befeea43bbc7c0fa"><enum>105.</enum><header>Commodity Exchange Act savings provisions</header><subsection id="id3eb62c3d904545acabe1cc5da1fae3dd"><enum>(a)</enum><header>In general</header><text>Nothing in this Act or any amendment made by this Act shall affect or apply to, or be interpreted to affect or apply to—</text><paragraph id="id206c4bf690aa4b25a17949d4d9e9f73d"><enum>(1)</enum><text>any agreement, contract, or transaction that is subject to the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a et seq.</external-xref>) as—</text><subparagraph id="idd35fa3e387b841208321ed7ad873e954"><enum>(A)</enum><text>a contract of sale of a commodity for future delivery or an option on such a contract (as those terms are defined in section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>));</text></subparagraph><subparagraph id="id0f96bdf43f7c416dac2e88f3ca14132d"><enum>(B)</enum><text>a swap (as defined in that section);</text></subparagraph><subparagraph id="id9003caa446f349f896c3785df6a9b0ca"><enum>(C)</enum><text>a security futures product (as defined in that section);</text></subparagraph><subparagraph id="id12f39fb7d03a47b89f903db817c846f9"><enum>(D)</enum><text>an option authorized under section 4c of that Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6c">7 U.S.C. 6c</external-xref>);</text></subparagraph><subparagraph id="iddb25706ec65a4c04947be7e2b281f32d"><enum>(E)</enum><text>an agreement, contract, or transaction described in section 2(c)(2)(C)(i) of that Act (<external-xref legal-doc="usc" parsable-cite="usc/7/2">7 U.S.C. 2(c)(2)(C)(i)</external-xref>); or</text></subparagraph><subparagraph id="id73c6042c81ae455c84dc032bd88cb5ee"><enum>(F)</enum><text>a leverage transaction authorized under section 19 of that Act (<external-xref legal-doc="usc" parsable-cite="usc/7/23">7 U.S.C. 23</external-xref>); or</text></subparagraph></paragraph><paragraph id="idda836fd955bc449398c0606573da2a22"><enum>(2)</enum><text>the activities of any person with respect to any agreement, contract, or transaction described in paragraph (1).</text></paragraph></subsection><subsection id="id610de8e518a44e65a5629f9ceee70550"><enum>(b)</enum><header>Prohibitions on spot digital commodity entities</header><text>Nothing in this Act authorizes, or shall be interpreted to authorize, a digital commodity exchange, digital commodity broker, or digital commodity dealer to engage in any activities involving any transaction, contract, or agreement described in subsection (a)(1), solely by virtue of being registered as a digital commodity exchange, digital commodity broker, or digital commodity dealer.</text></subsection><subsection id="id8c05d95ae8184c0b92fcd42e9acb9e16"><enum>(c)</enum><header>Effect</header><text>An agreement, contract, or transaction described in subsection (a)(1) shall not be regulated as a digital commodity agreement, contract, or transaction solely because it is issued, recorded, represented, or transferred on a blockchain or other similar technology.</text></subsection></section><section id="id52d78a886972448eb4e63f167c901c96"><enum>106.</enum><header>Administrative requirements</header><text display-inline="no-display-inline">Section 4c(a) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6c">7 U.S.C. 6c(a)</external-xref>) is amended—</text><paragraph id="id04840494d7364b699a775ebcde218439"><enum>(1)</enum><text>in paragraph (3)—</text><subparagraph id="id19aeee6e563c4e6791eacf84bf94d880"><enum>(A)</enum><text>in subparagraph (B), by striking <quote>or</quote> at the end;</text></subparagraph><subparagraph id="idadfc91003bc4423f985e39e17a157fbc"><enum>(B)</enum><text>in subparagraph (C), by striking the period and inserting <quote>; or</quote>; and</text></subparagraph><subparagraph id="id8b477b3bbf6940358cea82abdaee9b63"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8f74867468dc4bcc812f442e7eab7362"><subparagraph id="id5e0cf303362a41dd8608e9c2b092859b"><enum>(D)</enum><text>a contract of sale of a digital commodity.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="idb329dfed78b944cda54a8f6c03236dff"><enum>(2)</enum><text>in paragraph (4)—</text><subparagraph id="id1142520c01f94f77b74d01496c37aa06"><enum>(A)</enum><text>in subparagraph (A)—</text><clause id="idcff92292afb94c66bc3a701d488a6127"><enum>(i)</enum><text>in clause (ii), by striking <quote>or</quote> at the end;</text></clause><clause id="id2e4bb2053bd4485da9b3b2a622873063"><enum>(ii)</enum><text>in clause (iii), by striking the period and inserting <quote>; or</quote>; and</text></clause><clause id="id269a2a15ddc245e6ae780f33ecc4a65d"><enum>(iii)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id2fee2944237c484ba390ea88bb7bd377"><clause id="idd48395107c044f4f803bb62ef2c01de9"><enum>(iv)</enum><text>a contract of sale of a digital commodity.</text></clause><after-quoted-block>;</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="id9bbce1434c9542f5a15d995f25587e7d"><enum>(B)</enum><text>in subparagraph (B)—</text><clause id="id26684e5dfa404f73a28ea4732970244d"><enum>(i)</enum><text>in clause (ii), by striking <quote>or</quote> at the end;</text></clause><clause id="id007dc69d03d340eb99b74a1ba24c2a7c"><enum>(ii)</enum><text>in clause (iii), by striking the period and inserting <quote>; or</quote>; and</text></clause><clause id="idbb76f79325fc40639f043ce9d493aab7"><enum>(iii)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8f2bd79362e44a0181a0189feff553d3"><clause id="idb010708d70d64a66a99315965468c95c"><enum>(iv)</enum><text>a contract of sale of a digital commodity.</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="id58e24199058742bbab17e39aff6a77b6"><enum>(C)</enum><text>in subparagraph (C)—</text><clause id="idc4606530365548a0b52e75eda02c4f4b"><enum>(i)</enum><text>by redesignating clauses (i) through (iii) as subclauses (I) through (III), respectively, and indenting appropriately;</text></clause><clause commented="no" display-inline="no-display-inline" id="ida09999bc8b6346f280fbf517070cf726"><enum>(ii)</enum><text>in the matter preceding subclause (I) (as so redesignated), by striking <quote>It shall</quote> and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="ide056af7a85e4432f8c3f88204b793803"><clause commented="no" display-inline="no-display-inline" id="iddacdee536b13423b96f86e21b35b0acb"><enum>(i)</enum><header>In general</header><text>It shall</text></clause><after-quoted-block>;</after-quoted-block></quoted-block></clause><clause commented="no" display-inline="no-display-inline" id="id417923067b224a6eb9e110383eb0e455"><enum>(iii)</enum><text>in clause (i) (as so designated)—</text><subclause id="id47ec0c7684074b2589fe5760061084d9"><enum>(I)</enum><text>in subclause (II), by striking <quote>or</quote> at the end; and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="ide902082a781d4613a609aaa655c6f87f"><enum>(II)</enum><text>in subclause (III), by striking <quote>a swap, provided, however, that nothing</quote> and inserting the following: “a swap; or</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8691247291324db48643f9fc9e4359a5"><subclause commented="no" display-inline="no-display-inline" id="id79c00128ad144bdab1e800dd5afaa081"><enum>(IV)</enum><text>a contract of sale of a digital commodity.</text></subclause><clause commented="no" display-inline="no-display-inline" id="idaa39c437f4234573a4ddb28d4328f2f8"><enum>(ii)</enum><header>Effect</header><text display-inline="yes-display-inline">Nothing</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></subclause></clause><clause commented="no" display-inline="no-display-inline" id="id47bf7aa848c3414799815027909c6900"><enum>(iv)</enum><text>in clause (ii) (as so designated), by striking <quote>clauses (i), (ii), or (iii)</quote> and inserting <quote>any of subclauses (I) through (IV) of clause (i)</quote>.</text></clause></subparagraph></paragraph></section><section id="id04f2fa0d0abd44bbbc386759c632ff23"><enum>107.</enum><header>International cooperation</header><text display-inline="no-display-inline">In order to promote greater consistency in effective and consistent global regulation of digital commodities, the Commodity Futures Trading Commission, as appropriate—</text><paragraph id="ida66b591bfe1c42848b7a3dfa850adcc7"><enum>(1)</enum><text>shall consult and coordinate with foreign regulatory authorities on the application of consistent international standards with respect to the regulation of digital commodities; and</text></paragraph><paragraph id="idc825ec40975b4eac972963fb5267266c"><enum>(2)</enum><text>may enter into such information-sharing arrangements as are determined necessary or appropriate for the protection of investors, customers, and users of digital commodities.</text></paragraph></section><section commented="no" id="idd3089a8613b64578a339236dc0280fed"><enum>108.</enum><header>Implementation</header><subsection commented="no" id="id21a380ec45654e4092b3266ba869a827"><enum>(a)</enum><header>Global rulemaking timeframe</header><text>Unless otherwise provided in this Act or an amendment made by this Act, the Commodity Futures Trading Commission and the Securities and Exchange Commission, or both, shall individually, and jointly where required, promulgate rules and regulations required of each Commission under this Act or an amendment made by this Act not later than 17 months after the date of enactment of this Act.</text></subsection><subsection commented="no" id="id419aeb6ceb254b1998f4ca08f6312c7c"><enum>(b)</enum><header>Rules and registration before final effective dates</header><paragraph commented="no" id="id956de7085b9c41528951b80f0f017fe3"><enum>(1)</enum><header>In general</header><text>In order to prepare for the implementation of this Act and the amendments made by this Act, the Commodity Futures Trading Commission and the Securities and Exchange Commission may, before any effective date provided in this Act or an amendment made by this Act—</text><subparagraph commented="no" id="idef4b4ec3df474b43bd680616a76e1afc"><enum>(A)</enum><text>promulgate rules, regulations, or orders permitted or required by this Act or the amendments made by this Act;</text></subparagraph><subparagraph commented="no" id="idb882f87f921b4d79a0b5466330d06805"><enum>(B)</enum><text>conduct studies and prepare reports and recommendations required by this Act or the amendments made by this Act;</text></subparagraph><subparagraph commented="no" id="id1c5062872dd34fe7bad23fb793d1e97a"><enum>(C)</enum><text>register persons under this Act or the amendments made by this Act; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idb2343e27e47749399587fe26a0ad292b"><enum>(D)</enum><text>exempt persons, agreements, contracts, or transactions from provisions of this Act or the amendments made by this Act, in accordance with this Act or those amendments.</text></subparagraph></paragraph><paragraph commented="no" id="id9eeae0dffad345398a9b78395415ad89"><enum>(2)</enum><header>Limitation on effectiveness</header><text>An action by the Commodity Futures Trading Commission or the Securities and Exchange Commission under paragraph (1) shall not become effective before the effective date otherwise applicable to the action under this Act or the amendments made by this Act.</text></paragraph></subsection><subsection commented="no" id="id512b690d93b34410b2352151af14ede7"><enum>(c)</enum><header>Sense of Congress</header><text>It is the sense of Congress that prior to implementation of this Act the Commodity Futures Trading Commission—</text><paragraph commented="no" id="id7a71c1a90eb74feebdcca427c5a8578a"><enum>(1)</enum><text>be fully constituted as described in section 2(a)(2) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/2">7 U.S.C. 2(a)(2)</external-xref>) to carry out all existing responsibilities and those directed by this Act, with not fewer than 2 of the Commissioners nominated, prior to such appointments, following consultation and coordination with the ranking minority member of the Committee on Agriculture, Nutrition, and Forestry of the Senate; and</text></paragraph><paragraph commented="no" id="id7e48a53e4f304e7eb8b2789a52edfa05"><enum>(2)</enum><text>be appropriately staffed to ensure sufficient regulatory capacity, expertise, and enforcement readiness necessary to implement this Act and the amendments made by this Act.</text></paragraph></subsection></section><section id="id83b6e0b292fb4150b65ba7d6a09e99d2"><enum>109.</enum><header>Effective date</header><subsection commented="no" display-inline="no-display-inline" id="id1e6ea6ee8d254b539c43bd028fffe8d7"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in subsection (b) and as otherwise provided in this Act or an amendment made by this Act, this Act and the amendments made by this Act shall take effect on the date that is 17 months after the date of enactment of this Act.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="id6d354ee0538d4162836bb5bcec92cca6"><enum>(b)</enum><header>Rulemaking provisions</header><text display-inline="yes-display-inline">To the extent that a provision of this Act or an amendment made by this Act requires a rulemaking, the provision shall take effect on the later of—</text><paragraph id="idfcb3bb33357846bca59e11ca10940118"><enum>(1)</enum><text>17 months after the date of enactment of this Act; and</text></paragraph><paragraph id="ida67243f73bef4cfea51832c957ee0f67"><enum>(2)</enum><text>120 days after the publication in the Federal Register of the final rule implementing the provision.</text></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" section-type="subsequent-section" id="idb8a883a4da0940a3a18d954f86c8eb91"><enum>110.</enum><header>Sense of Congress</header><text display-inline="no-display-inline">It is the sense of Congress that nothing in this Act or any amendment made by this Act should be interpreted to authorize any entity to regulate any commodity, other than a digital commodity, on any spot market.</text></section>

119 S4064 PCS: Digital Commodity Intermediaries Act U.S. Senate 2026-03-11 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

Short title; table of contents

(a)

Short title

This Act may be cited as the

Digital Commodity Intermediaries Act

.(b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—Definitions; rulemaking

Sec. 101. Definitions under the Commodity Exchange Act.

Sec. 102. Definitions under this Act.

Sec. 103. Rulemakings.

Sec. 104. Expeditied registration for digital commodity exchanges, brokers, and dealers; provisional status.

Sec. 105. Commodity Exchange Act savings provisions.

Sec. 106. Administrative requirements.

Sec. 107. International cooperation.

Sec. 108. Implementation.

Sec. 109. Effective date.

Sec. 110. Sense of Congress.

TITLE II—Registration for digital commodity intermediaries at the Commodity Futures Trading Commission

Sec. 201. Commission jurisdiction over digital commodity transactions.

Sec. 202. Requiring Futures Commission merchants to use qualified digital asset custodians.

Sec. 203. Trading certification and approval for digital commodities.

Sec. 204. Registration of digital commodity exchanges.

Sec. 205. Registration and regulation of digital commodity brokers and dealers.

Sec. 206. Registration of associated persons.

Sec. 207. Software developer protections.

Sec. 208. Portfolio margining.

Sec. 209. Clarification on customer property.

Sec. 210. Resources for implementation.

Sec. 211. Digital commodity retail advocate.

Sec. 212. Report.

<enum>I</enum><header>Definitions; rulemaking</header><section id="id90ef478d1de44dd1b17817fee0157e72"><enum>101.</enum><header>Definitions under the Commodity Exchange Act</header><subsection id="idde2dd1c8862d4d8ca331dbc7f6f89337"><enum>(a)</enum><header>In general</header><text>Section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>) is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="id999f4ae701fb4a1085e2b34413597e10"><enum>(1)</enum><text>by redesignating paragraphs (3), (4), (5) through (14), (15), (16) through (34), (35) through (39), and (40) through (51) as paragraphs (5), (6), (11) through (20), (24), (31) through (49), (51) through (55), and (57) through (68), respectively;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id69353d745c3249bd936f6d77f6a63c96"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after paragraph (2) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idf936e2a047e248a9a627c5306efec7de"><paragraph id="idc87b6742ac3f4501a587753c1eb4c016"><enum>(3)</enum><header>Associated person of a digital commodity broker</header><subparagraph id="id288f4cb244514166b75768c662a736e3"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the term <term>associated person of a digital commodity broker</term> means a person who is associated with a digital commodity broker as a partner, officer, employee, or agent (or any person occupying a similar status or performing similar functions) in any capacity that involves—</text><clause id="idb86d0e385a8340088627d4b4f815c463"><enum>(i)</enum><text>the solicitation or acceptance of an order for the purchase or sale of a digital commodity; or</text></clause><clause id="ide9942cb1055245378d24ee96c79ff5f2"><enum>(ii)</enum><text>the supervision of any person engaged in the solicitation or acceptance of an order for the purchase or sale of a digital commodity.</text></clause></subparagraph><subparagraph id="id2559600104a24697a057dee03b855bb1"><enum>(B)</enum><header>Exclusion</header><text>The term <term>associated person of a digital commodity broker</term> does not include any person associated with a digital commodity broker the functions of which are solely clerical or ministerial.</text></subparagraph></paragraph><paragraph id="id425bf8ac74fd42799dbea2d119d8abb3"><enum>(4)</enum><header>Associated person of a digital commodity dealer</header><subparagraph id="id8fb2f904cef94186b30ec78dbcd86be3"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the term <term>associated person of a digital commodity dealer</term> means a person who is associated with a digital commodity dealer as a partner, officer, employee, or agent (or any person occupying a similar status or performing similar functions) in any capacity that involves—</text><clause id="idee1e772bfa0242c59ec9b73bc6c766c4"><enum>(i)</enum><text>the solicitation or acceptance of a contract for the purchase or sale of a digital commodity; or</text></clause><clause id="idd036884ef9094140921bee5fe52e80c2"><enum>(ii)</enum><text>the supervision of any person engaged in the solicitation or acceptance of a contract for the purchase or sale of a digital commodity.</text></clause></subparagraph><subparagraph id="id91b58c9375614bac8c47a13b8e6e9eaa"><enum>(B)</enum><header>Exclusion</header><text>The term <term>associated person of a digital commodity dealer</term> does not include any person associated with a digital commodity dealer the functions of which are solely clerical or ministerial.</text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8acc941802c24ffc964c3500d32afa2f"><enum>(3)</enum><text>by inserting after paragraph (6) (as so redesignated) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id3b1f5ce43d304572a54093eb08b17d1b"><paragraph id="idb287b46aacf14047b517e8f0a7f11904"><enum>(7)</enum><header>Blockchain</header><text>The term <term>blockchain</term> means technology—</text><subparagraph id="idfd5976e2dcc8451d92f551753cad3a5e"><enum>(A)</enum><text>through which data is shared across a network that creates a public blockchain of verified transactions or information among network participants; and</text></subparagraph><subparagraph id="idb55269d2c7e7421a9fbd8e2b16756cf3"><enum>(B)</enum><text>in which cryptography is used to link the data described in subparagraph (A)—</text><clause id="idd868a1a8a0e341f0af308c109add8633"><enum>(i)</enum><text>to maintain the integrity of the blockchain described in that subparagraph; and</text></clause><clause id="id62bf4e649ba744e185e3b4d0ecf9f97c"><enum>(ii)</enum><text>to execute other functions. </text></clause></subparagraph></paragraph><paragraph commented="no" id="id9894e3054b78429d8d2f06ce43f39335"><enum>(8)</enum><header>Blockchain application</header><text>The term <term>blockchain application</term> means any executable software that is deployed to and maintained on a blockchain and composed of a blockchain protocol, including a smart contract or any network of smart contracts, or other similar technology.</text></paragraph><paragraph commented="no" id="id471299a7bb8249afa29afeb71be1ac95"><enum>(9)</enum><header>Blockchain protocol</header><text>The term <term>blockchain protocol</term> means publicly available source code of a blockchain or blockchain application that is executed by the network participants of a blockchain to facilitate its functioning, or other similar technology.</text></paragraph><paragraph commented="no" id="idafb3cbb5232f49be90a8b619ba3010c4"><enum>(10)</enum><header>Blockchain system</header><text>The term <term>blockchain system</term> means any blockchain, blockchain application, or network of blockchain applications, together with its blockchain protocol.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id22a4c2a114344b51a76f280a8cb4f3c0"><enum>(4)</enum><text display-inline="yes-display-inline">by inserting after paragraph (20) (as so redesignated) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id6f88493d7d404f52870832adaf194aa4"><paragraph commented="no" id="id4ca5b6dc4e0e47fa98817034d3c0d019"><enum>(21)</enum><header>Decentralized finance messaging system</header><subparagraph commented="no" id="idbddb2fdf766d4bb1b069fa2699b4e475"><enum>(A)</enum><header>In general</header><text>The term <term>decentralized finance messaging system</term> means a software application that provides a user with the ability to create or submit an instruction, communication, or message to a decentralized finance trading protocol.</text></subparagraph><subparagraph commented="no" id="id01ef8b0f460948779dd24304a9b7dcee"><enum>(B)</enum><header>Additional requirements</header><text>The term <term>decentralized finance messaging system</term> does not include any system that provides any person other than the user with—</text><clause commented="no" id="iddccdf626a9e145e3930acd276955c7bf"><enum>(i)</enum><text>control over the funds of the user; or</text></clause><clause commented="no" id="id2d4fa0f78d604c9793ec0501b438d914"><enum>(ii)</enum><text>the authority to execute any of the transactions of the user.</text></clause></subparagraph></paragraph><paragraph commented="no" id="id43f1507b7bf74f50a943cb546194e304"><enum>(22)</enum><header>Decentralized finance trading protocol</header><subparagraph commented="no" id="id08002240a4a042adb0fc865abc1a3d10"><enum>(A)</enum><header>In general</header><text>The term <term>decentralized finance trading protocol</term> means a blockchain system through which multiple participants can execute a financial transaction—</text><clause commented="no" id="id098dd0a30f934236bf3c38c8f3713872"><enum>(i)</enum><text>in accordance with an automated rule or algorithm that is predetermined and nondiscretionary; and</text></clause><clause commented="no" id="id791ba705e2e344d7accb4ad1d7158537"><enum>(ii)</enum><text>without reliance on a person other than the user to maintain custody or control of any digital assets subject to the financial transaction.</text></clause></subparagraph><subparagraph commented="no" id="id150dc7dd855543c285ab5223f080db12"><enum>(B)</enum><header>Exclusions</header><clause commented="no" id="id9dc98896034f41ae9760afc2961ecac7"><enum>(i)</enum><header>In general</header><text>The term <term>decentralized finance trading protocol</term> does not include a blockchain system if—</text><subclause commented="no" id="idc0050d98c6fe489c9bded8b0d99e5799"><enum>(I)</enum><text>a person or group of persons under common control or acting pursuant to an agreement to act in concert has the authority, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise, to control or materially alter the functionality, operation, or rules of consensus or agreement of the blockchain system;</text></subclause><subclause commented="no" id="idfd54f0df35844169826a87abfbfe227e"><enum>(II)</enum><text>the blockchain system does not operate, execute, and enforce its operations and transactions based solely on pre-established, transparent rules encoded directly within the source code of the blockchain system; or</text></subclause><subclause id="id63a81d924a8245fc8da0f049053166d1"><enum>(III)</enum><text>a person or group of persons under common control has the unilateral authority, via operation of the blockchain system, to restrict, censor, or prohibit the use of the blockchain system, including any applicable system-based user activity.</text></subclause></clause><clause commented="no" id="idb48ab450cf7742f9927492846d2e602f"><enum>(ii)</enum><header>Special rule</header><text>For purposes of clause (i), a decentralized governance system shall not be considered to be a person or a group of persons under common control or acting pursuant to an agreement to act in concert.</text></clause></subparagraph></paragraph><paragraph commented="no" id="id2ea34f5c112e45fea64a63cbb0d7b191"><enum>(23)</enum><header>Decentralized governance system</header><subparagraph commented="no" id="ida3a2c71beef14cdf8668aaeaf4bbc935"><enum>(A)</enum><header>In general</header><text>The term <term>decentralized governance system</term> means, with respect to a blockchain system, any transparent, rules-based system permitting persons to form consensus or reach agreement in the development, provision, publication, maintenance, or administration of such blockchain system, in which participation is not limited to, or under the effective control of, any person or group of persons under common control (within the meaning of section 104(b) of the Digital Asset Market Clarity Act of 2026).</text></subparagraph><subparagraph commented="no" id="id216c7b6aace14fb985a8c50ed9d42164"><enum>(B)</enum><header>Relationship of persons to decentralized governance systems</header><text>With respect to a decentralized governance system, the decentralized governance system and any persons participating in the decentralized governance system shall be treated as separate persons unless such persons are under common control or acting pursuant to an agreement to act in concert.</text></subparagraph><subparagraph commented="no" id="id8f52e9f6d6f647acb7f737f276dff0dd"><enum>(C)</enum><header>Legal entities for decentralized governance systems</header><clause commented="no" display-inline="no-display-inline" id="idc5a9623701a14db791a7b5e8035ac654"><enum>(i)</enum><header>In general</header><text>The term <term>decentralized governance system</term> shall include a legal entity, including a decentralized unincorporated nonprofit association or other entity created pursuant to State law, used to implement the rules-based system described in subparagraph (A), provided that the legal entity does not operate pursuant to centralized management.</text></clause><clause commented="no" display-inline="no-display-inline" id="idab0daf03ba004ac5a3c83401b9c9fa52"><enum>(ii)</enum><header>Effect of certain delegations</header><text display-inline="yes-display-inline">For the purposes of this subparagraph, the delegation of ministerial or administrative authority at the direction of the participants in a decentralized governance system shall not be construed to be centralized management.</text></clause></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph><paragraph id="idb1340a3febe84377937988c370cd39f2"><enum>(5)</enum><text>by inserting after paragraph (24) (as so redesignated) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id016223cee8284279a9be689f397807c2"><paragraph id="id5ae6a4c004ea479698b3832f9f43791a"><enum>(25)</enum><header>Digital asset</header><text>The term <term>digital asset</term> means any digital representation of value which is recorded on a cryptographically secured blockchain.</text></paragraph><paragraph commented="no" id="idedf67570f9e145a59da82da8b641105f"><enum>(26)</enum><header>Digital asset custodian</header><text>The term <term>digital asset custodian</term> means a person who, as a regular business, holds, maintains, or safeguards digital assets for others.</text></paragraph><paragraph id="idfa9481ad05194d7d8a04f5189a27adbc"><enum>(27)</enum><header>Digital commodity</header><subparagraph id="id4a4a06b0018345aba75644cc89472967"><enum>(A)</enum><header>In general</header><text>The term <term>digital commodity</term> means any fungible digital asset that can be exclusively possessed and transferred, person to person, without necessary reliance on an intermediary, and is recorded on a blockchain.</text></subparagraph><subparagraph id="id29554999b867429da7a7f4b6f8e39397"><enum>(B)</enum><header>Network tokens</header><text>The term <term>digital commodity</term> includes a network token (as defined in section 4B(a) of the Securities Act of 1933) unless the network token is excluded from the definition under clauses (iii) through (vii) of subparagraph (D).</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idcc156f663f704627a391646c1cc469f8"><enum>(C)</enum><header display-inline="yes-display-inline">Meme coins</header><clause commented="no" display-inline="no-display-inline" id="ide88fd166e292477daffdbe6571391d7d"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>digital commodity</term> includes a meme coin unless the meme coin is excluded from the definition under subparagraph (D).</text></clause><clause commented="no" display-inline="no-display-inline" id="iddf68a4078ac347138bd9bd50f381800a"><enum>(ii)</enum><header>Definition</header><text display-inline="yes-display-inline">For the purposes of this paragraph, the term <term>meme coin</term> means a digital asset inspired by an internet meme, character, current event, or trend for which the promoter seeks to attract an enthusiastic online community to purchase and engage in trading of the digital asset primarily for speculative purposes.</text></clause><clause commented="no" display-inline="no-display-inline" id="ideceeb129f2f248f8aa621902f4a21ced"><enum>(iii)</enum><header>Exclusions</header><text display-inline="yes-display-inline">The Commission, by rule or regulation, may exclude from the term <term>meme coin</term> any digital asset or class of digital assets if the Commission determines that the rule or regulation will effectuate the purposes of this Act.</text></clause></subparagraph><subparagraph id="id33fb0bf1f17c4ce4b619c9b7e653086e"><enum>(D)</enum><header>Exclusions</header><text>The term <term>digital commodity</term> does not include any of the following:</text><clause commented="no" id="id7ac02de6d7274897b98b606938c21c52"><enum>(i)</enum><header>Security</header><text>Any security.</text></clause><clause id="id006e3f01cf694e8c8bd4c67d4c74c572"><enum>(ii)</enum><header>Security derivative</header><text>A digital asset that, based on its terms and other characteristics, is, represents, or is functionally equivalent to an agreement, contract, or transaction that is—</text><subclause id="id87c707df971b4a4a8f1c7bdf09969d82"><enum>(I)</enum><text>a security future (as defined in section 2(a) of the Securities Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/15/77b">15 U.S.C. 77b(a)</external-xref>));</text></subclause><subclause id="id2395d6a8234a4b148fe74d601f363172"><enum>(II)</enum><text>a security-based swap; or</text></subclause><subclause id="id98f99a4c8bc347bf8db6dcad718c89e0"><enum>(III)</enum><text>a put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof) (within the meaning of section 2(a)(1) of the Securities Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/15/77b">15 U.S.C. 77b(a)(1)</external-xref>)).</text></subclause></clause><clause id="id90147747596e4f8886a98f6684a7416c"><enum>(iii)</enum><header>Permitted payment stablecoin</header><text>A payment stablecoin (as defined in section 2 of the GENIUS Act (<external-xref legal-doc="public-law" parsable-cite="pl/119/27">Public Law 119–27</external-xref>; 139 Stat. 419)) that is issued by a permitted payment stablecoin issuer (as defined in that section).</text></clause><clause id="ide69f67c3826742118cb44ab8e35c0df7"><enum>(iv)</enum><header>Banking deposit</header><subclause id="id0596c428de004b3384bbe22d72642d38"><enum>(I)</enum><text>A deposit (as defined in section 3 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>)), regardless of the technology used to record the deposit.</text></subclause><subclause id="id1d662b8503fc47499ef93b1c49445193"><enum>(II)</enum><text>An account (as defined in section 101 of the Federal Credit Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1752">12 U.S.C. 1752</external-xref>)), regardless of the technology used to record the account.</text></subclause></clause><clause id="id41a912e0f19b4661a1202c7f693e5f5c"><enum>(v)</enum><header>Commodity</header><text>A digital asset that references, represents an interest in, or is functionally equivalent to—</text><subclause commented="no" id="id9a33fba36fd44879ad494055e4d65aff"><enum>(I)</enum><text>an agricultural commodity; </text></subclause><subclause id="id52bf48dda95f4b769b7dfa70e0bc6d18"><enum>(II)</enum><text>an excluded commodity, other than a security; or</text></subclause><subclause id="id14771b2f51a8403b9d0b1aab2a47f1e3"><enum>(III)</enum><text>an exempt commodity, other than the digital commodity itself, as shall be further defined by the Commission.</text></subclause></clause><clause id="iddb137ade34c747759aedabac1613f3d3"><enum>(vi)</enum><header>Commodity derivative</header><text>A digital asset that, based on its terms and other characteristics, is, represents, or is functionally equivalent to an agreement, contract, or transaction that is—</text><subclause id="idf0094b18ef6948a6801def6a2afa197d"><enum>(I)</enum><text>a contract of sale of a commodity for future delivery or an option thereon;</text></subclause><subclause id="ide18cc8d5e6994f1882aaa064b86d7612"><enum>(II)</enum><text>a security futures product;</text></subclause><subclause id="id7a5e2b442a1a444f9e651a5c0fc518ee"><enum>(III)</enum><text>a swap;</text></subclause><subclause id="id40014f968da142d3908b076fa3ba7496"><enum>(IV)</enum><text>an agreement, contract, or transaction described in subparagraph (C)(i) or (D)(i) of section 2(c)(2);</text></subclause><subclause id="id6e503fc6350544c08efa7fc071a23538"><enum>(V)</enum><text>a commodity option authorized under section 4c; or</text></subclause><subclause id="idd929618f957b4be190d1688c8ea71155"><enum>(VI)</enum><text>a leverage transaction authorized under section 19.</text></subclause></clause><clause id="idfc2ee11e8f6e4990a2d70d59df175647"><enum>(vii)</enum><header>Pooled investment vehicle</header><subclause id="idf96be74aa3304e24bbd95d001f43b5a1"><enum>(I)</enum><header>In general</header><text>A digital asset not described in clause (i) that, based on its terms and other characteristics, is, represents, or is functionally equivalent to an interest in—</text><item id="id6c66709cda69488ab23c2d5e422f2dd2"><enum>(aa)</enum><text>a commodity pool; or</text></item><item id="iddfc8555b42824b03b2e0ef07330ccf62"><enum>(bb)</enum><text>a pooled investment vehicle.</text></item></subclause><subclause id="iddbcb572351434b46a96fbb3e2a2732c6"><enum>(II)</enum><header>Pooled investment vehicle defined</header><text>In this clause, the term <term>pooled investment vehicle</term> means—</text><item id="id89c71324815748f7a31d71653e2cfa29"><enum>(aa)</enum><text>any investment company (as defined in section 3(a) of the Investment Company Act of 1940 (<external-xref legal-doc="usc" parsable-cite="usc/15/80a-3">15 U.S.C. 80a–3(a)</external-xref>));</text></item><item commented="no" id="id94cef77917d94b1bb2a97e752228b8ec"><enum>(bb)</enum><text>any company (as defined in section 2 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/15/80a-2">15 U.S.C. 80a–2</external-xref>)) that would be an investment company under section 3(a) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/15/80a-3">15 U.S.C. 80a–3(a)</external-xref>), but for the exclusions provided from that definition by section 3(c) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/15/80a-3">15 U.S.C. 80a–3(c)</external-xref>), if for purposes of this subclause the company were assumed to be an issuer (as defined in section 2 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/15/80a-2">15 U.S.C. 80a–2</external-xref>)); or</text></item><item commented="no" id="id1a726ae77a594ce99417a53cbcdf9827"><enum>(cc)</enum><text>any entity or person that is not an investment company but holds or will hold assets other than securities.</text></item></subclause></clause><clause id="id490f0dfee61e40d88d03a3af39079e68"><enum>(viii)</enum><header>Good, collectible, and other noncommodity digital asset</header><subclause commented="no" display-inline="no-display-inline" id="id85817db1a05340459d6741bba0f72b20"><enum>(I)</enum><header>In general</header><text display-inline="yes-display-inline">A digital asset that has value, utility, or significance beyond its mere existence as a digital asset, including the digital equivalent of a tangible or intangible good or a nonfungible token (as defined in section 602(a) of the Digital Asset Market Clarity Act of 2026), such as—</text><item id="iddeedd87990fc472b8f00c644c6e532df"><enum>(aa)</enum><text>a work of art, a musical composition, a literary work, or other intellectual property;</text></item><item id="idd0fb571ae18a47469c60892925737d1b"><enum>(bb)</enum><text>collectibles, merchandise, virtual land, and in-game or in-application assets;</text></item><item id="id11357a8c138e49bfbc769b8133f412a7"><enum>(cc)</enum><text>affinity, rewards, or loyalty points, including airline miles or credit card points; or</text></item><item id="id75a18c3e889c45c8b92d2c7c6bf27738"><enum>(dd)</enum><text>rights, licenses, and tickets.</text></item></subclause><subclause id="ide88caf6c5a24428fa81a31e9bd37a2d3"><enum>(II)</enum><header>Exception</header><text>The Commission may determine, by rule or regulation or order, that a good, collectible, or other noncommodity digital asset or class of goods, collectibles, or other noncommodity digital assets is traded in such a manner or form that the asset or class of assets should be considered a digital commodity, such as a mass-minted series of items with substantially similar or nearly identical traits that are marketed or sold interchangeably and are primarily speculative in nature.</text></subclause></clause></subparagraph></paragraph><paragraph id="id6073bf4703c241069db037c68f4efd30"><enum>(28)</enum><header>Digital commodity broker</header><subparagraph id="id153584eb0c634086ad9f45d7c3ceadf2"><enum>(A)</enum><header>In general</header><text>The term <term>digital commodity broker</term> means any person who—</text><clause commented="no" display-inline="no-display-inline" id="idd5835460cf704d2cbe71cc38571c928e"><enum>(i)</enum><text display-inline="yes-display-inline">as a regular business, in a digital commodity cash or spot market—</text><subclause id="id147d79bcde494aef8745664d44d3a09e"><enum/></subclause><subclause commented="no" display-inline="yes-display-inline" id="id2ee6716394844feeaa32119c51c98a19"><enum>(I)</enum><item commented="no" display-inline="yes-display-inline" id="id637f6fcac46540e98a8cc8d7352326f2"><enum>(aa)</enum><text>solicits or accepts an order from a person who is not an eligible contract participant for the purchase or sale of a unit of a digital commodity; and</text></item><item commented="no" display-inline="no-display-inline" id="idfe9bd65ecc164195a3f978280c7e36ed" indent="up1"><enum>(bb)</enum><text display-inline="yes-display-inline">in conjunction with the activity described in item (aa), accepts or maintains control over the funds or other property or assets of the person or the execution of the transaction; </text></item></subclause><subclause id="idb4515eb004044c9482aab1be2268aa80"><enum>(II)</enum><text>solicits or accepts an order from a person who is not an eligible contract participant on behalf of a digital commodity dealer for the purchase or sale of a unit of a digital commodity; or</text></subclause><subclause id="idbd8cf2213bd745fe99f8148863fa6746"><enum>(III)</enum><text>solicits or accepts an order from a person who is not an eligible contract participant for the purchase or sale of a unit of a digital commodity on or subject to the rules of a registered digital commodity exchange; or</text></subclause></clause><clause id="id519ee848ff6e4162b061dd96650d14ac"><enum>(ii)</enum><text>is registered with the Commission as a digital commodity broker.</text></clause></subparagraph><subparagraph id="idd597288530c64c7ca6980b0443951ee4"><enum>(B)</enum><header>Exceptions</header><text>The term <term>digital commodity broker</term> does not include a person solely because the person—</text><clause id="idb3e41eb0b59c4042899e7db82a1071c8"><enum>(i)</enum><text>enters into 1 or more digital commodity transactions that are attributable or solely incidental to making, sending, receiving, or facilitating payments, whether involving a payment service provider or on a peer-to-peer basis; or</text></clause><clause id="id3fd190826e1249999b2714d950f45652"><enum>(ii)</enum><text>is a bank (as defined in section 3(a) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)</external-xref>)) engaging in certain banking activities with respect to a digital commodity in the same or a similar manner as a bank is excluded from the definition of a broker under section 3(a)(4) of that Act (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)(4)</external-xref>), as determined by the Commission.</text></clause></subparagraph><subparagraph commented="no" id="idc59f350312424eec8de371e7fe166d4b"><enum>(C)</enum><header>Further definition</header><text>The Commission, by rule or regulation, may exclude from the term <term>digital commodity broker</term> any person or class of persons if the Commission determines that the rule or regulation is in the public interest and will effectuate the purposes of this Act.</text></subparagraph></paragraph><paragraph id="idaf659c3196464ffcbf4f3faca643ebaf"><enum>(29)</enum><header>Digital commodity dealer</header><subparagraph id="id8766a58d36d446e489ffb88c84995d4c"><enum>(A)</enum><header>In general</header><text>The term <term>digital commodity dealer</term> means any person who—</text><clause id="id96e77b3ab5e34186afd69b144b878de2"><enum>(i)</enum><text>as a regular business, in a spot or cash digital commodity market, enters into, or offers to enter into, a purchase or sale of a unit of a digital commodity—</text><subclause commented="no" id="id927d8505eded4319aa28581d9fa2de1e"><enum>(I)</enum><text>with a counterparty that is not an eligible contract participant; and</text></subclause><subclause commented="no" id="id025a53e2b441429e997326d59629b25f"><enum>(II)</enum><text>not on or through a registered digital commodity exchange or decentralized finance trading protocol; or</text></subclause></clause><clause id="id03925ee6b4914d34bf1781f4d1b90f67"><enum>(ii)</enum><text>is registered with the Commission as a digital commodity dealer.</text></clause></subparagraph><subparagraph id="id9660fe5f759e4dbb88deb16f6fcab978"><enum>(B)</enum><header>Exception</header><text>The term <term>digital commodity dealer</term> does not include a person solely because the person—</text><clause id="id863df78d4850404b9534ee535114a62c"><enum>(i)</enum><text>enters into 1 or more digital commodity transactions that are attributable or solely incidental to making, sending, receiving, or facilitating payments, whether involving a payment service provider or on a peer-to-peer basis; or</text></clause><clause id="id4dc0bc94730f4b97b779eb0a4ec19b93"><enum>(ii)</enum><text>is a bank (as defined in section 3(a) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)</external-xref>)) engaging in certain banking activities with respect to a digital commodity in the same or a similar manner as a bank is excluded from the definition of a dealer under section 3(a)(5) of that Act (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)(5)</external-xref>), as determined by the Commission.</text></clause></subparagraph><subparagraph commented="no" id="id0add3c5b621945f4a753c8b9607ef1f2"><enum>(C)</enum><header>Further definition</header><text>The Commission, by rule or regulation, may exclude from the term <term>digital commodity dealer</term> any person or class of persons if the Commission determines that the rule or regulation is in the public interest and will effectuate the purposes of this Act.</text></subparagraph></paragraph><paragraph id="idad379650d9b84e9382f2bf53381ed55f"><enum>(30)</enum><header>Digital commodity exchange</header><text>The term <term>digital commodity exchange</term> means a trading facility that offers or seeks to offer a cash or spot market in at least 1 digital commodity.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idd746c1f11bb44cc49f10bf0162632fb5"><enum>(6)</enum><text>by inserting after paragraph (49) (as so redesignated) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id83ef780625a04f5db984db87c5447f6f"><paragraph id="id0cc986ba5c2442869c660b848aca83d2"><enum>(50)</enum><header>Mixed digital asset transaction</header><text>The term <term>mixed digital asset transaction</term> means a transaction in which a digital commodity is traded for a security.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idf230acc699d2473586f9f160e18124c1"><enum>(7)</enum><text>by inserting after paragraph (55) (as so redesignated) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idb7fdb24c7b64424d87c82d647a870625"><paragraph id="id317a5cc3764e4e90aa080022b8053008"><enum>(56)</enum><header>Qualified digital asset custodian</header><subparagraph commented="no" display-inline="no-display-inline" id="id7181b89551804326b6c4f7ee9515cd04"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>qualified digital asset custodian</term> means a digital asset custodian that—</text><clause id="id1e5bdba7f1564017a580db3811aaafc9"><enum>(i)</enum><text>holds digital assets on behalf of a person registered under this Act or a customer of a person registered under this Act; and</text></clause><clause id="ide219e967e1c344aaaf76af150b4fb045"><enum>(ii)</enum><text>is in compliance with subparagraphs (B) though (D).</text></clause></subparagraph><subparagraph id="ide6936d92dbc347dda3e5c0258e1fedb7"><enum>(B)</enum><header>Supervision requirement</header><text>A digital asset custodian is in compliance with this subparagraph if the digital asset custodian is subject to—</text><clause id="id3f12e44ec30b4f0bbc7208b9e6e0f185"><enum>(i)</enum><text>supervision and examination for custody and safekeeping of digital assets by an appropriate Federal banking agency, the National Credit Union Administration, the Commission, or the Securities and Exchange Commission; or</text></clause><clause id="id00ba7e1b6e9f409eaf240cf4e90d661a"><enum>(ii)</enum><text>adequate supervision and appropriate regulation for custody and safekeeping of digital assets by—</text><subclause id="id902ef6d140324159ac7883b3dd4c70fa"><enum>(I)</enum><text>a State bank supervisor (as defined in section 3 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>));</text></subclause><subclause id="id85bcba1de1004ac190fae0b687f173d9"><enum>(II)</enum><text>a State officer, agency, or other entity that has primary regulatory authority over nondepository State trust companies;</text></subclause><subclause id="id5eee5c4c3c6245eb90b97d698625b2ef"><enum>(III)</enum><text>a State credit union supervisor (as defined in section 6003 of the Anti-Money Laundering Act of 2020 (<external-xref legal-doc="usc" parsable-cite="usc/31/5311">31 U.S.C. 5311</external-xref> note; division F of <external-xref legal-doc="public-law" parsable-cite="pl/116/283">Public Law 116–283</external-xref>)); or</text></subclause><subclause id="ida122ae204a4a4f4096fd298e7e107543"><enum>(IV)</enum><text>an appropriate foreign governmental authority in the home country of the digital asset custodian.</text></subclause></clause></subparagraph><subparagraph id="ida7b00cab995e49f1bf2e1f753eed54da"><enum>(C)</enum><header>Other requirements</header><text>A digital asset custodian is in compliance with this subparagraph if the following requirements are met:</text><clause id="idb238b36735d44fc7996de9296a968434"><enum>(i)</enum><header>Not otherwise prohibited</header><text>The digital asset custodian has not been prohibited by the applicable supervisor described in subparagraph (B) from engaging in an activity with respect to the custody and safekeeping of digital assets.</text></clause><clause id="id88109102da364df2ac5b8d7368b5f333"><enum>(ii)</enum><header>Information sharing</header><subclause id="ida481981c6b0642719587daff5748ca18"><enum>(I)</enum><header>In general</header><text>The digital asset custodian shares information with the Commission on request and complies with such requirements for periodic sharing of information regarding customer accounts that the digital asset custodian holds on behalf of an entity registered with the Commission as the Commission determines by rule are reasonably necessary to effectuate any of the provisions, or to accomplish any of the purposes, of this Act.</text></subclause><subclause id="id1467bdcf639f429e9a9bb6ec0dac575b"><enum>(II)</enum><header>Provision of information</header><text>If the digital asset custodian is subject to regulation and examination by an appropriate Federal banking agency, the digital asset custodian may satisfy any information request described in subclause (I) by providing the Commission with a detailed listing, in writing, of the digital assets of a customer in the custody of, or use by, the digital asset custodian.</text></subclause></clause></subparagraph><subparagraph id="id147899ff46b448a9a6f66ef3b2d7006c"><enum>(D)</enum><header>Rulemaking</header><clause id="id42bd55a9b71b4e51843809fad631c9df"><enum>(i)</enum><header>In general</header><text>The Commission shall prescribe rules to permit a person registered with the Commission to be a qualified digital asset custodian.</text></clause><clause id="id1a4d82ba1ef549b1a233e23c9c41f15a"><enum>(ii)</enum><header>Content</header><text>In prescribing the rules under clause (i), to be a qualified digital asset custodian, the Commission shall require a person registered with the Commission—</text><subclause id="ide482a08f9bcd4b6e8a21a6994c14d948"><enum>(I)</enum><text>to implement requirements consistent with the requirements described in subparagraph (E)(i);</text></subclause><subclause id="id055fed0b77f34510b259051d675d87d1"><enum>(II)</enum><text>to establish sufficient system safeguards;</text></subclause><subclause id="idc5fa3323d554413fb9884fa00ccae561"><enum>(III)</enum><text>to prevent or mitigate conflicts of interest, as appropriate; and</text></subclause><subclause id="id6c5c372ec8804d50af51137d71062aaf"><enum>(IV)</enum><text>to establish separate governance arrangements for the custodial function of the entity.</text></subclause></clause></subparagraph><subparagraph id="id9bd90073b4df4d558afaea9138fb848b"><enum>(E)</enum><header>Adequate supervision and appropriate regulation</header><clause id="id329af1b9798947f99193596b5c0e4614"><enum>(i)</enum><header>In general</header><text>For purposes of subparagraph (B), the terms <quote>adequate supervision</quote> and <quote>appropriate regulation</quote> mean such minimum standards for supervision and regulation as are reasonably necessary to protect the digital assets held by a person registered under this Act, including standards relating to the licensing, examination, and supervisory processes that require the person to, at a minimum—</text><subclause id="idd333aa7ec40647a28de1b6fda2294ecc"><enum>(I)</enum><text>receive a review and evaluation of ownership, character and fitness, conflicts of interest, business model, financial statements, funding resources, and policies and procedures of the digital asset custodian;</text></subclause><subclause id="idd6983036be1b46ad8e7fa7d0178498a0"><enum>(II)</enum><text>hold capital sufficient to conduct an orderly wind-down and resolution of the digital asset custodian;</text></subclause><subclause id="id8438ae90a6be4564b770f7edb8d289ee"><enum>(III)</enum><text>protect customer assets;</text></subclause><subclause id="ided6acf3fcf7d43d0ac6b9af29476ad50"><enum>(IV)</enum><text>establish and maintain books and records regarding the business of the digital asset custodian;</text></subclause><subclause id="id014fd4c41d92461395d11824a6d7407a"><enum>(V)</enum><text>submit financial statements and audited financial statements to the applicable supervisor described in subparagraph (B);</text></subclause><subclause id="idf3721f9fc4d947f59be23db3b8db04ab"><enum>(VI)</enum><text>provide disclosures to the applicable supervisor described in subparagraph (B) regarding actions, proceedings, and other items as determined by the supervisor;</text></subclause><subclause id="idbb3998bb41b446a6a789315190e46f6d"><enum>(VII)</enum><text>maintain and enforce policies and procedures for compliance with applicable State and Federal laws, including those related to anti-money laundering and cybersecurity;</text></subclause><subclause id="id3297096a36d7490c9dc14618a9bd0984"><enum>(VIII)</enum><text>establish a business continuity plan to ensure functionality in cases of disruption; and</text></subclause><subclause id="id608868d375114eb1b212603997dc2d65"><enum>(IX)</enum><text>establish policies and procedures to resolve complaints.</text></subclause></clause><clause id="idb8a256991a6f4d8bbe857d65f0c96601"><enum>(ii)</enum><header>Rulemaking with respect to definitions</header><subclause id="id5e59a8019710421c806a8795ddd2d93f"><enum>(I)</enum><header>In general</header><text>For purposes of this paragraph, the Commission shall, by rule, further define the terms <quote>adequate supervision</quote> and <quote>appropriate regulation</quote> as necessary and appropriate for the protection of customers, and consistent with the purposes of this Act.</text></subclause><subclause id="id40e6d66536354e9290cadfcfd85e5617"><enum>(II)</enum><header>Existing digital asset custodians</header><text>A State depository institution or a trust company operating as a digital asset custodian before the effective date of a rulemaking under subclause (I) is deemed subject to adequate supervision and appropriate regulation if—</text><item id="id9203c03de0a64e9aa36e86af15e3b613"><enum>(aa)</enum><text>the State depository institution or trust company is expressly permitted by a State bank supervisor to engage in the custody and safekeeping of digital assets;</text></item><item id="idbcfa172a414247be9e41d7e90bd6a045"><enum>(bb)</enum><text>the State bank supervisor has established licensing, examination, and supervisory processes that require the State depository institution or trust company to, at a minimum, meet the conditions described in subclauses (I) through (IX) of clause (i); and</text></item><item id="id2a6e6a0af6f54b3c901d9b57e746457e"><enum>(cc)</enum><text>the State depository institution or trust company is in good standing with its State bank supervisor.</text></item></subclause><subclause id="id41a8a4d956004e668e74de752c96dd27"><enum>(III)</enum><header>Transition period for certain custodians</header><text>In implementing the rulemaking under subclause (I), the Commission shall provide a transition period of not less than 2 years for any State depository institution or trust company that is deemed subject to adequate supervision and appropriate regulation under subclause (II) on the effective date of the rulemaking.</text></subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id682e27b975f442c4b68360564e1cec46"><enum>(F)</enum><header>Authority to temporarily suspend standards</header><text display-inline="yes-display-inline">The Commission may, by rule or order, temporarily suspend, in whole or in part, any requirement imposed under, or any standard referred to in, this section, or any requirement to utilize a qualified digital asset custodian, if the Commission determines that the suspension would be consistent with the public interest and the purposes of this Act.</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="id710eee08f6a4462c81bcbc4bfbf514ac"><enum>(8)</enum><text>in paragraph (57) (as so redesignated)—</text><subparagraph id="id86839e1c82d24c3da4d2528239ef564b"><enum>(A)</enum><text>in subparagraph (E), by striking <quote>and</quote> at the end;</text></subparagraph><subparagraph id="id043dcc1155db4e579b7c53629b1d97f2"><enum>(B)</enum><text>in subparagraph (F), by striking the period at the end and inserting <quote>; and</quote>; and</text></subparagraph><subparagraph id="id5bb9dfd8c3f84902ba0f6e83401eb9c3"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idbde7edf7735348b7a83ba63100228ac0"><subparagraph id="id047d731c2cb742ac8c38fdb3454f2302"><enum>(G)</enum><text>a digital commodity exchange registered under section 5i.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="id67f87ed6096a4708b7af0b50fc025baf"><enum>(b)</enum><header>Conforming amendments</header><paragraph commented="no" id="id881C56783C894111B75E51F7E2B1F7A1"><enum>(1)</enum><text>Section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>) is amended—</text><subparagraph commented="no" id="idCD6A4F7312B2424BA72354F8DDC9A41F"><enum>(A)</enum><text>in paragraph (32)(A) (as redesignated by subsection (a)(1)), in the matter preceding clause (i), by striking <quote>(18)(A)</quote> and inserting <quote>(33)(A)</quote>; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id9AD543B877D54868BE560C7360EF7757"><enum>(B)</enum><text>in paragraph (33)(A)(vii)(III)(aa) (as redesignated by subsection (a)(1)), by striking <quote>(17)(A)</quote> and inserting <quote>(32)(A)</quote>.</text></subparagraph></paragraph><paragraph commented="no" id="id4335F697D27145E09EA8A0855D4E4A05"><enum>(2)</enum><text>Section 4(c)(1)(A)(i)(I) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6">7 U.S.C. 6(c)(1)(A)(i)(I)</external-xref>) is amended by striking <quote>paragraphs (2), (3), (4), (5), and (7), paragraph (18)(A)(vii)(III), paragraphs (23), (24), (31), (32), (38), (39), (41), (42), (46), (47), (48), and (49) of section 1a</quote> and inserting <quote>paragraphs (2), (5), (6), (11), (13), (33)(A)(vii)(III), (38), (39), (46), (47), (54), (55), (58), (59), (63), (64), (65), and (66) of section 1a</quote>.</text></paragraph><paragraph commented="no" id="idCAA67E1C52EA4D5394D3ECEC614D7EB0"><enum>(3)</enum><text>Section 4q(a)(1) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6q">7 U.S.C. 6q(a)(1)</external-xref>) is amended by striking <quote>1a(9)</quote> and inserting <quote>1a(15)</quote>.</text></paragraph><paragraph id="id68ee4dfd455c47e0b787d4c6b380f6b8"><enum>(4)</enum><text>Section 4s of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6s">7 U.S.C. 6s</external-xref>) is amended—</text><subparagraph id="idf80bdd065cbb4dc19bfb34f46f820c61"><enum>(A)</enum><text>in subsection (f)(1)(D), by striking <quote>1a(47)(A)(v)</quote> and inserting <quote>1a(64)(A)(v)</quote>; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id887b9be25ba34ac292249a77b48a0d42"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (h)(5)(A)(i), in the matter preceding subclause (I), by striking <quote>1a(18) of this Act</quote> and inserting <quote>1a(33)</quote>.</text></subparagraph></paragraph><paragraph id="id5daa0da061094c938803cfbe62153376"><enum>(5)</enum><text>Section 4t(b)(1)(C) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6t">7 U.S.C. 6t(b)(1)(C)</external-xref>) is amended by striking <quote>1a(47)(A)(v)),</quote> and inserting <quote>1a(64)(A)(v)),</quote>.</text></paragraph><paragraph commented="no" id="id9E74183F596743F685420CE6976AEFEA"><enum>(6)</enum><text>Section 5 of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/7">7 U.S.C. 7</external-xref>) is amended—</text><subparagraph commented="no" id="id635C44CCFC6D414B9CF488EA2BBAC392"><enum>(A)</enum><text>in subsection (d)(23), by striking <quote>1a(47)(A)(v)</quote> and inserting <quote>1a(64)(A)(v)</quote>; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6FFA56956FD240CE9FE98087AAE980C1"><enum>(B)</enum><text>in subsection (e)(1), by striking <quote>1a(9)</quote> and inserting <quote>1a(15)</quote>.</text></subparagraph></paragraph><paragraph id="id2734e2cb8c01444dbbeb6a2458c8df0b"><enum>(7)</enum><text>Section 5b(k)(3)(A) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/7a-1">7 U.S.C. 7a–1(k)(3)(A)</external-xref>) is amended by striking <quote>1a(47)(A)(v))</quote> and inserting <quote>1a(64)(A)(v))</quote>.</text></paragraph><paragraph id="idc782be895f9a407b8f1346395c7a2e1d"><enum>(8)</enum><text>Section 5h(f)(10)(A)(iii) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/7b-3">7 U.S.C. 7b–3(f)(10)(A)(iii)</external-xref>) is amended by striking <quote>1a(47)(A)(v)</quote> and inserting <quote>1a(64)(A)(v)</quote>.</text></paragraph><paragraph id="id3bcafefe400148c2ac8e5a89473c73db"><enum>(9)</enum><text>Section 21(f)(4)(C) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/24a">7 U.S.C. 24a(f)(4)(C)</external-xref>) is amended by striking <quote>1a(48)</quote> and inserting <quote>1a(65)</quote>.</text></paragraph><paragraph id="id5eb3557990c74b4a86fafe04247be68d"><enum>(10)</enum><text>Section 5(e) of the Securities Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/15/77e">15 U.S.C. 77e(e)</external-xref>) is amended by striking <quote>section 1a(18) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a(18)</external-xref>)</quote> and inserting <quote>section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>)</quote>.</text></paragraph><paragraph commented="no" id="id238A2D8317CB488B964D992E98A0B888"><enum>(11)</enum><text>Section 3C(g)(3)(A)(v) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c-3">15 U.S.C. 78c–3(g)(3)(A)(v)</external-xref>) is amended by striking <quote>section 1a(10) of the Commodity Exchange Act;</quote> and inserting <quote>section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>);</quote>.</text></paragraph><paragraph commented="no" id="id5AA1F3C5242846A6890C5F5296B4844B"><enum>(12)</enum><text>Section 6(g)(5)(B)(i) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78f">15 U.S.C. 78f(g)(5)(B)(i)</external-xref>) is amended—</text><subparagraph commented="no" id="idCB35C76392684F19B9C935B6086CB35B"><enum>(A)</enum><text>in subclause (I), by striking <quote>section 1a(18)(B)(ii) of the Commodity Exchange Act</quote> and inserting <quote>subparagraph (B)(ii) of section 1a(33) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a(33)</external-xref>)</quote>; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idEBD3DC0877F34841A8060D318DEE9D3B"><enum>(B)</enum><text>in subclause (II), by striking <quote>such section 1a(18))</quote> and inserting <quote>that section)</quote>.</text></subparagraph></paragraph><paragraph id="idf68a962962ba4a4ab9da314c4ca89642"><enum>(13)</enum><text>Section 15F(h)(5)(A)(i) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78o-10">15 U.S.C. 78o–10(h)(5)(A)(i)</external-xref>) is amended, in the matter preceding subclause (I), by striking <quote>1a(18)</quote> and inserting <quote>1a(33)</quote>.</text></paragraph><paragraph id="idfba43397af1244fbba029fd5892a0135"><enum>(14)</enum><text>Section 712 of the Wall Street Transparency and Accountability Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/15/8302">15 U.S.C. 8302</external-xref>) is amended—</text><subparagraph id="id606661d094a647e7a1b504cb1ea2619e"><enum>(A)</enum><text>in subsection (a)(8), by striking <quote>1a(47)(D)</quote> each place it appears and inserting <quote>1a(64)(D)</quote>; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idcd49fd3fcacf4ff99bb1fd157be3dcec"><enum>(B)</enum><text>in subsection (d)(1), by striking <quote>1a(47)(A)(v)</quote> each place it appears and inserting <quote>1a(64)(A)(v)</quote>.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id02C2E7B662704725AD0250F4F97253EF"><enum>(15)</enum><text>Section 752(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (<external-xref legal-doc="usc" parsable-cite="usc/15/8325">15 U.S.C. 8325(a)</external-xref>) is amended by striking <quote>section 1a(39) of the Commodity Exchange Act),</quote> and inserting <quote>section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>)),</quote>.</text></paragraph><paragraph id="id35fbb90527164af28609349435cbe141"><enum>(16)</enum><text>Section 403 of the Legal Certainty for Bank Products Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/7/27a">7 U.S.C. 27a</external-xref>) is amended—</text><subparagraph id="id8ae5b9fa1f5b45a18693966799fb146f"><enum>(A)</enum><text>in subsection (a)(2), by striking <quote>1a(47)(A)(v)</quote> and inserting <quote>1a(64)(A)(v)</quote>; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0e57d15a881c46509e6256014da1c33e"><enum>(B)</enum><text>in each of subsections (b)(1) and (c)(2), by striking <quote>1a(47)</quote> and inserting <quote>1a(64)</quote>.</text></subparagraph></paragraph></subsection></section><section id="id5309a458366f4882be851f2d696c096d"><enum>102.</enum><header>Definitions under this Act</header><text display-inline="no-display-inline">In this Act, the terms <term>blockchain</term>, <term>decentralized finance messaging system</term>, <term>decentralized finance trading protocol</term>, <term>decentralized governance system</term>, <term>digital asset</term>, <term>digital commodity</term>, <term>digital commodity broker</term>, <term>digital commodity dealer</term>, <term>digital commodity exchange</term>, and <term>mixed digital asset transaction</term> have the meanings given those terms, respectively, in section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>).</text></section><section id="idf29b1d42f4e14bd9aa6a672aafc3fa0b"><enum>103.</enum><header>Rulemakings</header><subsection id="id884147c5ea2b40f2a3d5b5c553455034"><enum>(a)</enum><header>Definitions</header><text>The Commodity Futures Trading Commission shall issue rules to further define the terms <term>associated person of a digital commodity broker</term>, <term>associated person of a digital commodity dealer</term>, <term>blockchain</term>, <term>blockchain application</term>, <term>blockchain protocol</term>, <term>blockchain system</term>, <term>decentralized finance messaging system</term>, <term>decentralized finance trading protocol</term>, <term>decentralized governance system</term>, and <term>digital commodity</term>(as defined in section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>)).</text></subsection><subsection commented="no" id="idc69eb545358f49348deb94f619275775"><enum>(b)</enum><header>Joint rulemaking for exchanges and intermediaries</header><text>The Commodity Futures Trading Commission and the Securities and Exchange Commission shall jointly issue rules to exempt persons dually registered with the Commodity Futures Trading Commission and the Securities and Exchange Commission from duplicative, conflicting, or unduly burdensome provisions of this Act, the securities laws (as defined in section 3(a) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)</external-xref>)), and the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1">7 U.S.C. 1 et seq.</external-xref>), and the rules under those Acts, to the extent that the exemption would—</text><paragraph commented="no" display-inline="no-display-inline" id="iddd0cc3515bc24e9a9f4193cdc5387ed0"><enum>(1)</enum><text display-inline="yes-display-inline">foster the development of fair and orderly markets in digital assets;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id210f5c7a53fe45abb7346e936f1f194e"><enum>(2)</enum><text display-inline="yes-display-inline">be necessary or appropriate for the protection of customers; and </text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0e9af24a31cd4001b04b90a656b0bdc2"><enum>(3)</enum><text display-inline="yes-display-inline">be consistent with the protection of investors.</text></paragraph></subsection><subsection commented="no" id="idd586c5d04e4b4f808ffb47085b441c41"><enum>(c)</enum><header>Joint rulemaking for mixed digital asset transactions</header><text>The Commodity Futures Trading Commission and the Securities and Exchange Commission shall jointly issue rules applicable to mixed digital asset transactions under this Act and the amendments made by this Act, including by further defining such term.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="idcba8b278605642499fc6844ec7479417"><enum>(d)</enum><header>Joint rulemaking, procedures, or guidance for delisting</header><text>Not later than 180 days after the date of enactment of this Act, the Commodity Futures Trading Commission and the Securities and Exchange Commission (referred to in this subsection as the <term>Commissions</term>) shall jointly issue rules, procedures, or guidance (as determined appropriate by the Commissions) regarding the process to delist an asset for trading under section 104 if the Commissions determine that the listing is inconsistent with the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1">7 U.S.C. 1 et seq.</external-xref>), the securities laws (as defined in section 3(a) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)</external-xref>)) (including regulations under those laws), or this Act. </text></subsection><subsection commented="no" id="id0072680a7dcd4fabab92ac4c9976a02f"><enum>(e)</enum><header>Joint rules for portfolio margining determinations</header><paragraph commented="no" id="idb84e266bf0724a94b80ee709791297a4"><enum>(1)</enum><header>In general</header><text>Not later than 360 days after the date of enactment of this Act, the Commodity Futures Trading Commission and the Securities and Exchange Commission shall jointly issue rules with respect to margin, customer protection, segregation, or other requirements as necessary to facilitate portfolio margining of securities (including related extensions of credit), security-based swaps, contracts for future delivery, options on a contract for future delivery, swaps, and digital commodities, or any subset thereof, in—</text><subparagraph commented="no" id="idafb164f409e5491cb729e74ce16c9913"><enum>(A)</enum><text>a securities account carried by a registered broker or dealer or a security-based swap account carried by a registered security-based swap dealer;</text></subparagraph><subparagraph commented="no" id="id9c373f1584ae4977a558773153821e5e"><enum>(B)</enum><text>a futures or cleared swap account carried by a registered futures commission merchant (as defined in section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>));</text></subparagraph><subparagraph commented="no" id="id59780bd08b6a4daeaefbdcfc5cb2b126"><enum>(C)</enum><text>a swap account carried by a swap dealer; or</text></subparagraph><subparagraph commented="no" id="idbe4dbec9e8e64237b56dbf7aae496fcb"><enum>(D)</enum><text>a digital commodity account carried by a registered digital commodity broker or digital commodity dealer that is also registered in such other capacity as is necessary to also carry the other customer or counterparty positions being held in the account.</text></subparagraph></paragraph><paragraph commented="no" id="id53b6b3d9a952465aa1a9f93c4012fb5d"><enum>(2)</enum><header>Requirements</header><text>With respect to a joint rulemaking described in paragraph (1)—</text><subparagraph commented="no" id="id1959c6a035c64b96ae9095c1f3ca86ce"><enum>(A)</enum><text>the joint rule shall be in the public interest and provide for the appropriate protection of customers;</text></subparagraph><subparagraph commented="no" id="id24bea871fa4a445e889db854e54a2c18"><enum>(B)</enum><text>the Commodity Futures Trading Commission and the Securities and Exchange Commission shall consider the public interest of the joint rule through the solicitation of public comments; and</text></subparagraph><subparagraph commented="no" id="id82d65d54f11f474292128b375d0be661"><enum>(C)</enum><text>the Commodity Futures Trading Commission and the Securities and Exchange Commission shall consult with other relevant foreign or domestic regulators, including the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency, as appropriate.</text></subparagraph></paragraph></subsection><subsection commented="no" id="id61c6355b09134abd98683e589ea41771"><enum>(f)</enum><header>Conflicts of interest rulemaking</header><paragraph commented="no" id="id990a20db3942407db7262d3e1c2e9287"><enum>(1)</enum><header>Rulemaking</header><text>Not later than 17 months after the date of enactment of this Act, the Commodity Futures Trading Commission shall issue rules establishing requirements for the identification, mitigation, and resolution of conflicts of interest among and across registered entities (as defined in section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>)) and persons required to be registered with the Commodity Futures Trading Commission, including conflicts of interest related to vertically integrated market structures.</text></paragraph><paragraph commented="no" id="id27b39c2bb7f44a5e8057315fc8c8b6e5"><enum>(2)</enum><header>Minimum standards</header><text>The rules issued under paragraph (1) shall, at a minimum—</text><subparagraph commented="no" id="id2a2d7b783c94478886adb64560937777"><enum>(A)</enum><text>establish governance, personnel, and financial resource separation among affiliated entities that perform distinct regulated functions;</text></subparagraph><subparagraph commented="no" id="id0c6dcd2e82544104a27933a754756cf3"><enum>(B)</enum><text>prohibit trading facilities or intermediaries from acting as counterparties to customer transactions or otherwise engaging in self-dealing, except as provided in section 5i(b)(2)(B) of the Commodity Exchange Act;</text></subparagraph><subparagraph commented="no" id="id39bdacd9f33842719d5b560f27688be2"><enum>(C)</enum><text>require appropriate safeguards for custody and use of customer assets to prevent conflicts arising from commingling or misuse;</text></subparagraph><subparagraph commented="no" id="idad92b00c50ac4f87a1dfb8d04dab3316"><enum>(D)</enum><text>mandate disclosure and management of material conflicts, including those involving affiliated entities or proprietary trading; and</text></subparagraph><subparagraph commented="no" id="ida8e4e05433a247108f434514b61fa933"><enum>(E)</enum><text>ensure independent oversight and decision-making in market operations and compliance.</text></subparagraph></paragraph></subsection></section><section id="ide0263e84e71c4590a42fcbe86af6916f"><enum>104.</enum><header>Expeditied registration for digital commodity exchanges, brokers, and dealers; provisional status</header><subsection id="id2749e1a4a04545b9905d9a75bc14e5ca"><enum>(a)</enum><header>Registration</header><paragraph id="id706d2f09f6d04b559c2244422145d80c"><enum>(1)</enum><header>In general</header><text>Unless exempted from registration, a person shall not act as a digital commodity exchange, digital commodity broker, or digital commodity dealer after the end of the 90-day period beginning on the date the process described in paragraph (2) is adopted by the Commodity Futures Trading Commission, unless, as the case may be, the person is registered as a—</text><subparagraph id="idb0007cc83f8f4abc90431fd2b7a5d838"><enum>(A)</enum><text>digital commodity exchange pursuant to section 5i of the Commodity Exchange Act;</text></subparagraph><subparagraph id="id158b27bb7d484d8ab07d1ed5c897ab43"><enum>(B)</enum><text>digital commodity broker pursuant to section 4u of the Commodity Exchange Act; or</text></subparagraph><subparagraph id="idce06d87053924622bd281ca688b843c3"><enum>(C)</enum><text>digital commodity dealer pursuant to section 4u of the Commodity Exchange Act.</text></subparagraph></paragraph><paragraph id="id8ce8ba081a16426eb4eea866b5e158eb"><enum>(2)</enum><header>Expedited process</header><text>Not later than 180 days after the date of enactment of this Act, the Commodity Futures Trading Commission shall adopt, by rule, regulation, or order, a process for expedited registration of persons required to be registered pursuant to paragraph (1).</text></paragraph></subsection><subsection id="idba1c4f080ed5406b82c4bcb7ae70c890"><enum>(b)</enum><header>Provisional status</header><paragraph id="id25838c1f54194adb81a10456642eca7c"><enum>(1)</enum><header>In general</header><text>A person who is registered in accordance with subsection (a) shall be in provisional status until—</text><subparagraph id="idf1c8221ac63f4effa9ce2b07c2812482"><enum>(A)</enum><text>in the case of a digital commodity broker or digital commodity dealer, the date that is 270 days after the final effective date of the rulemakings required under section 4u of the Commodity Exchange Act; or</text></subparagraph><subparagraph id="idda8a1bb5d1554cf88cadfda4d77bcc98"><enum>(B)</enum><text>in the case of a digital commodity exchange, the date that is 270 days after the final effective date of the rulemakings required under section 5i of such Act.</text></subparagraph></paragraph><paragraph id="idaf834f6a5d0a4dcca36a38fd827bbfac"><enum>(2)</enum><header>Payment of fees</header><text>A person in provisional status shall pay all fees required of persons registered with the Commodity Futures Trading Commission under section 8e of the Commodity Exchange Act.</text></paragraph></subsection><subsection id="ida95244a3b76040ab986fa4dd1a492cc4"><enum>(c)</enum><header>Operations prior to regulations</header><paragraph id="ida3559aaa04354949b18e1d76317df03f"><enum>(1)</enum><header>Requirements</header><text>A person in provisional status pursuant to subsection (b) shall be subject to the requirements of this section and the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1">7 U.S.C. 1 et seq.</external-xref>) and any rules or regulations promulgated under this section or that Act, as applicable.</text></paragraph><paragraph id="id80dab1ebe55840c4a36a1587ed225fe7"><enum>(2)</enum><header>Listings</header><subparagraph id="id40cf995aabbf4cdfbb3a5c02eb9c3fcc"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), a person in provisional status pursuant to subsection (b) may continue to offer, solicit, trade, facilitate, execute, clear, report, or otherwise deal in any digital asset offered on or through the facilities of the person before the date of registration under this section, until such time as the rulemaking on definitions required under section 103(a) is effective.</text></subparagraph><subparagraph id="id7966eda2bb014c198650f0b4080dd4a2"><enum>(B)</enum><header>Delisting</header><text>Before the effective date of the rulemaking on definitions under section 103(a), a person in provisional status pursuant to subsection (b) shall cease offering, soliciting, trading, facilitating, executing, clearing, reporting, or otherwise dealing in any digital asset required to be delisted pursuant to a joint delisting process established under section 103(e).</text></subparagraph></paragraph><paragraph commented="no" id="idb9a684d216354869a4cee0d873159f0b"><enum>(3)</enum><header>Exemptive authority</header><text>In order to promote responsible innovation and fair competition, or protect customers, the Commodity Futures Trading Commission may exempt any persons or class of persons in provisional status pursuant to subsection (b) from any requirements of this section or the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1">7 U.S.C. 1 et seq.</external-xref>) or any rules or regulations promulgated under this section or that Act, as applicable.</text></paragraph></subsection><subsection id="idd82ce3de39f4498f8957c55ed3522f0b"><enum>(d)</enum><header>Customer disclosure before registration</header><paragraph id="idc9ebd8a796ab4bfc968c89ca40d60a81"><enum>(1)</enum><header>In general</header><text>Beginning 30 days after the date of enactment of this Act, any person acting as a digital commodity exchange, digital commodity broker, or digital commodity dealer shall disclose to the customers of the person so acting, in the disclosure documents, offering documents, and promotional material of the person so acting, in a prominent manner, that the person is not registered with or regulated by the Commodity Futures Trading Commission.</text></paragraph><paragraph id="id88ec83dd25874cca8e45a74d8b7130a2"><enum>(2)</enum><header>Exception</header><text>Paragraph (1) shall not apply to any person who registers pursuant to subsection (a).</text></paragraph></subsection></section><section id="idf291dd657e1c4ea1befeea43bbc7c0fa"><enum>105.</enum><header>Commodity Exchange Act savings provisions</header><subsection id="id3eb62c3d904545acabe1cc5da1fae3dd"><enum>(a)</enum><header>In general</header><text>Nothing in this Act or any amendment made by this Act shall affect or apply to, or be interpreted to affect or apply to—</text><paragraph id="id206c4bf690aa4b25a17949d4d9e9f73d"><enum>(1)</enum><text>any agreement, contract, or transaction that is subject to the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a et seq.</external-xref>) as—</text><subparagraph id="idd35fa3e387b841208321ed7ad873e954"><enum>(A)</enum><text>a contract of sale of a commodity for future delivery or an option on such a contract (as those terms are defined in section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>));</text></subparagraph><subparagraph id="id0f96bdf43f7c416dac2e88f3ca14132d"><enum>(B)</enum><text>a swap (as defined in that section);</text></subparagraph><subparagraph id="id9003caa446f349f896c3785df6a9b0ca"><enum>(C)</enum><text>a security futures product (as defined in that section);</text></subparagraph><subparagraph id="id12f39fb7d03a47b89f903db817c846f9"><enum>(D)</enum><text>an option authorized under section 4c of that Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6c">7 U.S.C. 6c</external-xref>);</text></subparagraph><subparagraph id="iddb25706ec65a4c04947be7e2b281f32d"><enum>(E)</enum><text>an agreement, contract, or transaction described in section 2(c)(2)(C)(i) of that Act (<external-xref legal-doc="usc" parsable-cite="usc/7/2">7 U.S.C. 2(c)(2)(C)(i)</external-xref>); or</text></subparagraph><subparagraph id="id73c6042c81ae455c84dc032bd88cb5ee"><enum>(F)</enum><text>a leverage transaction authorized under section 19 of that Act (<external-xref legal-doc="usc" parsable-cite="usc/7/23">7 U.S.C. 23</external-xref>); or</text></subparagraph></paragraph><paragraph id="idda836fd955bc449398c0606573da2a22"><enum>(2)</enum><text>the activities of any person with respect to any agreement, contract, or transaction described in paragraph (1).</text></paragraph></subsection><subsection id="id610de8e518a44e65a5629f9ceee70550"><enum>(b)</enum><header>Prohibitions on spot digital commodity entities</header><text>Nothing in this Act authorizes, or shall be interpreted to authorize, a digital commodity exchange, digital commodity broker, or digital commodity dealer to engage in any activities involving any transaction, contract, or agreement described in subsection (a)(1), solely by virtue of being registered as a digital commodity exchange, digital commodity broker, or digital commodity dealer.</text></subsection><subsection id="id8c05d95ae8184c0b92fcd42e9acb9e16"><enum>(c)</enum><header>Effect</header><text>An agreement, contract, or transaction described in subsection (a)(1) shall not be regulated as a digital commodity agreement, contract, or transaction solely because it is issued, recorded, represented, or transferred on a blockchain or other similar technology.</text></subsection></section><section id="id52d78a886972448eb4e63f167c901c96"><enum>106.</enum><header>Administrative requirements</header><text display-inline="no-display-inline">Section 4c(a) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6c">7 U.S.C. 6c(a)</external-xref>) is amended—</text><paragraph id="id04840494d7364b699a775ebcde218439"><enum>(1)</enum><text>in paragraph (3)—</text><subparagraph id="id19aeee6e563c4e6791eacf84bf94d880"><enum>(A)</enum><text>in subparagraph (B), by striking <quote>or</quote> at the end;</text></subparagraph><subparagraph id="idadfc91003bc4423f985e39e17a157fbc"><enum>(B)</enum><text>in subparagraph (C), by striking the period and inserting <quote>; or</quote>; and</text></subparagraph><subparagraph id="id8b477b3bbf6940358cea82abdaee9b63"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8f74867468dc4bcc812f442e7eab7362"><subparagraph id="id5e0cf303362a41dd8608e9c2b092859b"><enum>(D)</enum><text>a contract of sale of a digital commodity.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="idb329dfed78b944cda54a8f6c03236dff"><enum>(2)</enum><text>in paragraph (4)—</text><subparagraph id="id1142520c01f94f77b74d01496c37aa06"><enum>(A)</enum><text>in subparagraph (A)—</text><clause id="idcff92292afb94c66bc3a701d488a6127"><enum>(i)</enum><text>in clause (ii), by striking <quote>or</quote> at the end;</text></clause><clause id="id2e4bb2053bd4485da9b3b2a622873063"><enum>(ii)</enum><text>in clause (iii), by striking the period and inserting <quote>; or</quote>; and</text></clause><clause id="id269a2a15ddc245e6ae780f33ecc4a65d"><enum>(iii)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id2fee2944237c484ba390ea88bb7bd377"><clause id="idd48395107c044f4f803bb62ef2c01de9"><enum>(iv)</enum><text>a contract of sale of a digital commodity.</text></clause><after-quoted-block>;</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="id9bbce1434c9542f5a15d995f25587e7d"><enum>(B)</enum><text>in subparagraph (B)—</text><clause id="id26684e5dfa404f73a28ea4732970244d"><enum>(i)</enum><text>in clause (ii), by striking <quote>or</quote> at the end;</text></clause><clause id="id007dc69d03d340eb99b74a1ba24c2a7c"><enum>(ii)</enum><text>in clause (iii), by striking the period and inserting <quote>; or</quote>; and</text></clause><clause id="idbb76f79325fc40639f043ce9d493aab7"><enum>(iii)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8f2bd79362e44a0181a0189feff553d3"><clause id="idb010708d70d64a66a99315965468c95c"><enum>(iv)</enum><text>a contract of sale of a digital commodity.</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="id58e24199058742bbab17e39aff6a77b6"><enum>(C)</enum><text>in subparagraph (C)—</text><clause id="idc4606530365548a0b52e75eda02c4f4b"><enum>(i)</enum><text>by redesignating clauses (i) through (iii) as subclauses (I) through (III), respectively, and indenting appropriately;</text></clause><clause commented="no" display-inline="no-display-inline" id="ida09999bc8b6346f280fbf517070cf726"><enum>(ii)</enum><text>in the matter preceding subclause (I) (as so redesignated), by striking <quote>It shall</quote> and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="ide056af7a85e4432f8c3f88204b793803"><clause commented="no" display-inline="no-display-inline" id="iddacdee536b13423b96f86e21b35b0acb"><enum>(i)</enum><header>In general</header><text>It shall</text></clause><after-quoted-block>;</after-quoted-block></quoted-block></clause><clause commented="no" display-inline="no-display-inline" id="id417923067b224a6eb9e110383eb0e455"><enum>(iii)</enum><text>in clause (i) (as so designated)—</text><subclause id="id47ec0c7684074b2589fe5760061084d9"><enum>(I)</enum><text>in subclause (II), by striking <quote>or</quote> at the end; and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="ide902082a781d4613a609aaa655c6f87f"><enum>(II)</enum><text>in subclause (III), by striking <quote>a swap, provided, however, that nothing</quote> and inserting the following: “a swap; or</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8691247291324db48643f9fc9e4359a5"><subclause commented="no" display-inline="no-display-inline" id="id79c00128ad144bdab1e800dd5afaa081"><enum>(IV)</enum><text>a contract of sale of a digital commodity.</text></subclause><clause commented="no" display-inline="no-display-inline" id="idaa39c437f4234573a4ddb28d4328f2f8"><enum>(ii)</enum><header>Effect</header><text display-inline="yes-display-inline">Nothing</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></subclause></clause><clause commented="no" display-inline="no-display-inline" id="id47bf7aa848c3414799815027909c6900"><enum>(iv)</enum><text>in clause (ii) (as so designated), by striking <quote>clauses (i), (ii), or (iii)</quote> and inserting <quote>any of subclauses (I) through (IV) of clause (i)</quote>.</text></clause></subparagraph></paragraph></section><section id="id04f2fa0d0abd44bbbc386759c632ff23"><enum>107.</enum><header>International cooperation</header><text display-inline="no-display-inline">In order to promote greater consistency in effective and consistent global regulation of digital commodities, the Commodity Futures Trading Commission, as appropriate—</text><paragraph id="ida66b591bfe1c42848b7a3dfa850adcc7"><enum>(1)</enum><text>shall consult and coordinate with foreign regulatory authorities on the application of consistent international standards with respect to the regulation of digital commodities; and</text></paragraph><paragraph id="idc825ec40975b4eac972963fb5267266c"><enum>(2)</enum><text>may enter into such information-sharing arrangements as are determined necessary or appropriate for the protection of investors, customers, and users of digital commodities.</text></paragraph></section><section commented="no" id="idd3089a8613b64578a339236dc0280fed"><enum>108.</enum><header>Implementation</header><subsection commented="no" id="id21a380ec45654e4092b3266ba869a827"><enum>(a)</enum><header>Global rulemaking timeframe</header><text>Unless otherwise provided in this Act or an amendment made by this Act, the Commodity Futures Trading Commission and the Securities and Exchange Commission, or both, shall individually, and jointly where required, promulgate rules and regulations required of each Commission under this Act or an amendment made by this Act not later than 17 months after the date of enactment of this Act.</text></subsection><subsection commented="no" id="id419aeb6ceb254b1998f4ca08f6312c7c"><enum>(b)</enum><header>Rules and registration before final effective dates</header><paragraph commented="no" id="id956de7085b9c41528951b80f0f017fe3"><enum>(1)</enum><header>In general</header><text>In order to prepare for the implementation of this Act and the amendments made by this Act, the Commodity Futures Trading Commission and the Securities and Exchange Commission may, before any effective date provided in this Act or an amendment made by this Act—</text><subparagraph commented="no" id="idef4b4ec3df474b43bd680616a76e1afc"><enum>(A)</enum><text>promulgate rules, regulations, or orders permitted or required by this Act or the amendments made by this Act;</text></subparagraph><subparagraph commented="no" id="idb882f87f921b4d79a0b5466330d06805"><enum>(B)</enum><text>conduct studies and prepare reports and recommendations required by this Act or the amendments made by this Act;</text></subparagraph><subparagraph commented="no" id="id1c5062872dd34fe7bad23fb793d1e97a"><enum>(C)</enum><text>register persons under this Act or the amendments made by this Act; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idb2343e27e47749399587fe26a0ad292b"><enum>(D)</enum><text>exempt persons, agreements, contracts, or transactions from provisions of this Act or the amendments made by this Act, in accordance with this Act or those amendments.</text></subparagraph></paragraph><paragraph commented="no" id="id9eeae0dffad345398a9b78395415ad89"><enum>(2)</enum><header>Limitation on effectiveness</header><text>An action by the Commodity Futures Trading Commission or the Securities and Exchange Commission under paragraph (1) shall not become effective before the effective date otherwise applicable to the action under this Act or the amendments made by this Act.</text></paragraph></subsection><subsection commented="no" id="id512b690d93b34410b2352151af14ede7"><enum>(c)</enum><header>Sense of Congress</header><text>It is the sense of Congress that prior to implementation of this Act the Commodity Futures Trading Commission—</text><paragraph commented="no" id="id7a71c1a90eb74feebdcca427c5a8578a"><enum>(1)</enum><text>be fully constituted as described in section 2(a)(2) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/2">7 U.S.C. 2(a)(2)</external-xref>) to carry out all existing responsibilities and those directed by this Act, with not fewer than 2 of the Commissioners nominated, prior to such appointments, following consultation and coordination with the ranking minority member of the Committee on Agriculture, Nutrition, and Forestry of the Senate; and</text></paragraph><paragraph commented="no" id="id7e48a53e4f304e7eb8b2789a52edfa05"><enum>(2)</enum><text>be appropriately staffed to ensure sufficient regulatory capacity, expertise, and enforcement readiness necessary to implement this Act and the amendments made by this Act.</text></paragraph></subsection></section><section id="id83b6e0b292fb4150b65ba7d6a09e99d2"><enum>109.</enum><header>Effective date</header><subsection commented="no" display-inline="no-display-inline" id="id1e6ea6ee8d254b539c43bd028fffe8d7"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in subsection (b) and as otherwise provided in this Act or an amendment made by this Act, this Act and the amendments made by this Act shall take effect on the date that is 17 months after the date of enactment of this Act.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="id6d354ee0538d4162836bb5bcec92cca6"><enum>(b)</enum><header>Rulemaking provisions</header><text display-inline="yes-display-inline">To the extent that a provision of this Act or an amendment made by this Act requires a rulemaking, the provision shall take effect on the later of—</text><paragraph id="idfcb3bb33357846bca59e11ca10940118"><enum>(1)</enum><text>17 months after the date of enactment of this Act; and</text></paragraph><paragraph id="ida67243f73bef4cfea51832c957ee0f67"><enum>(2)</enum><text>120 days after the publication in the Federal Register of the final rule implementing the provision.</text></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" section-type="subsequent-section" id="idb8a883a4da0940a3a18d954f86c8eb91"><enum>110.</enum><header>Sense of Congress</header><text display-inline="no-display-inline">It is the sense of Congress that nothing in this Act or any amendment made by this Act should be interpreted to authorize any entity to regulate any commodity, other than a digital commodity, on any spot market.</text></section><enum>II</enum><header>Registration for digital commodity intermediaries at the Commodity Futures Trading Commission</header><section id="id2aacaca5f3d44eb589cff788659c05f1"><enum>201.</enum><header>Commission jurisdiction over digital commodity transactions</header><subsection id="idbbc204beb3c34f5b87fedb0f60279853"><enum>(a)</enum><header>Savings clause</header><text>Section 2(a)(1) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/2">7 U.S.C. 2(a)(1)</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id9e19e4ba80604d10a92382550e64bdfa"><subparagraph id="idccab4c4eca154a24b87b953cabe81f11"><enum>(J)</enum><clause commented="no" display-inline="yes-display-inline" id="idf7479ccd7e8b4503bb95bc297cd7bb3e"><enum>(i)</enum><text>Except as expressly provided in this Act, nothing in the <short-title>Digital Commodity Intermediaries Act</short-title> or any amendment made by that Act shall affect or apply to, or be interpreted to affect or apply to—</text><subclause id="idb5fb9cf64cce4eae928f23fbe8a9deb8" indent="up1"><enum>(I)</enum><text>any agreement, contract, or transaction that is subject to this Act as—</text><item id="idf6586d32ba884387832df0c12aa55c16"><enum>(aa)</enum><text>a contract of sale of a commodity for future delivery or an option on such a contract;</text></item><item id="ida135deb8a6a0449ca3933169c13ab63a"><enum>(bb)</enum><text>a swap;</text></item><item id="id412f362aa7934518b0d058dab9083fb0"><enum>(cc)</enum><text>a security futures product;</text></item><item id="id64cb6efdc8fc4e459c3f904c4ea32c76"><enum>(dd)</enum><text>an option authorized under section 4c;</text></item><item id="id4ef130dc9e38495eb212ea9e1a22ebb3"><enum>(ee)</enum><text>an agreement, contract, or transaction described in subparagraph (C)(i) or (D)(i) of subsection (c)(2); or</text></item><item id="id650120de03544a27abc6b29380c3c4a5"><enum>(ff)</enum><text>a leverage transaction authorized under section 19; or</text></item></subclause><subclause id="idbf0bb7d871f04fa283ca9335a67a992e" indent="up1"><enum>(II)</enum><text>the activities of any person with respect to any such agreement, contract, or transaction.</text></subclause></clause><clause id="id40135af6203646f7bb0cb097d7e20897" indent="up1"><enum>(ii)</enum><text>An agreement, contract, or transaction described in clause (i)(I) shall not be regulated as a digital commodity agreement, contract, or transaction solely because it is issued, recorded, represented, or transferred on a blockchain or other similar technology.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id209b3c8770be46c2ac496901a5f7c958"><enum>(b)</enum><header>Limitation on authority over permitted payment stablecoins</header><text>Section 2(c)(1) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/2">7 U.S.C. 2(c)(1)</external-xref>) is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="idfa748527e9e14cbc92d02f0e3889ec29"><enum>(1)</enum><text>in the matter preceding subparagraph (A), by striking <quote>section, 5b, or</quote> and inserting <quote>section 5b or</quote>;</text></paragraph><paragraph id="id31e0a8aad5d047e3a885de2eb3cee04f"><enum>(2)</enum><text>in subparagraph (F), by striking <quote>or</quote> at the end;</text></paragraph><paragraph id="id2aeb4bcfe5574ceaba161015cbbee1a1"><enum>(3)</enum><text>in subparagraph (G), by striking the period and inserting <quote>; or</quote>; and</text></paragraph><paragraph id="idd38e7da0774d41cdbdfbfa6b2666563c"><enum>(4)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id6772ccef6a0c4bac97a219ba18201e8f"><subparagraph commented="no" id="id94ab6202a2be41ef9f3a1236144beb4c"><enum>(H)</enum><text>a payment stablecoin (as defined in section 2 of the GENIUS Act (<external-xref legal-doc="public-law" parsable-cite="pl/119/27">Public Law 119–27</external-xref>; 139 Stat. 419)) that is issued by a permitted payment stablecoin issuer (as defined in that section) (referred to in this subsection as a <term>permitted payment stablecoin</term>).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id6137642d3c954b19b2c49f0135f782f4"><enum>(c)</enum><header>Commission jurisdiction over digital commodity transactions</header><text>Section 2(c)(2) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/2">7 U.S.C. 2(c)(2)</external-xref>) is amended—</text><paragraph id="idbcc897cc33514e51abb04965a2402804"><enum>(1)</enum><text>in subparagraph (D)—</text><subparagraph id="id561d204b040e46c082345bf2acca84c6"><enum>(A)</enum><text>in clause (ii)—</text><clause commented="no" display-inline="no-display-inline" id="id118e4204f0e24236952a11d932462501"><enum>(i)</enum><text display-inline="yes-display-inline">in subclause (I), by inserting after <quote>paragraph (1)</quote> the following: <quote>(other than an agreement, contract, or transaction in a permitted payment stablecoin)</quote>; </text></clause><clause commented="no" display-inline="no-display-inline" id="id21bf6f5c9e4f47d7afb87759afd47ecd"><enum>(ii)</enum><text>by striking subclause (IV); and</text></clause><clause commented="no" display-inline="no-display-inline" id="idee4f7a0dcc0f4f6fa50c51349bc1db0b"><enum>(iii)</enum><text>by redesignating subclause (V) as subclause (IV);</text></clause></subparagraph><subparagraph id="id779927afa96c4d11b27e804fa6c11b65"><enum>(B)</enum><text>by redesignating clause (iv) as clause (v); </text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6df48aad3bd24cb49673096b85284839"><enum>(C)</enum><text display-inline="yes-display-inline">by inserting after clause (iii) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id4d620bba45034543afa6d80ba04256ce"><clause id="id45a2177cc27f4bb8b61a93837f89a755"><enum>(iv)</enum><header>Digital commodities; permitted payment stablecoins</header><text>This subparagraph shall not apply to a contract of sale of a digital commodity or a permitted payment stablecoin that results in actual delivery within 2 days or such other period as the Commission may determine by rule or regulation based upon the typical commercial practice in cash or spot markets for the digital commodity or permitted payment stablecoin involved.</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ida052c0372e4c4e51b3c99a78c620bdad"><enum>(D)</enum><text>by inserting after clause (v) (as so redesignated) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idad5731e218df4d37add225488e67b4f5"><clause id="id934124e2352643d382604b0fff5cd511"><enum>(vi)</enum><header>Retail commodity transaction rulemaking</header><text>The Commission shall, by rule or regulation, establish appropriate conditions, requirements, or limitations with respect to the extension of leverage, margin, or financing in connection with any cash or spot digital commodity agreement, contract, or transaction subject to this subparagraph. </text></clause><clause commented="no" display-inline="no-display-inline" id="id86b3f699dc4e4dc7b68c7d523d0699d1"><enum>(vii)</enum><header display-inline="yes-display-inline">Further rulemaking authority</header><text>In order to promote responsible innovation and fair competition, or protect customers, the Commission may by rule or regulation exempt, either unconditionally or on stated terms or conditions or for stated periods, and either retroactively or prospectively, or both, a digital commodity exchange or a digital commodity broker from the requirements of this subparagraph, if the Commission determines that the exemption would be consistent with the public interest and the purposes of this Act.</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id8f5d608df18d494398495d5f508e6f29"><enum>(2)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idd77f61fa9cba465fb4bb755a19ed91d8"><subparagraph id="id4825d0feb5374b70afa618f38b681418"><enum>(F)</enum><header>Commission jurisdiction with respect to digital commodity transactions</header><clause id="idb2e408231de14eb0b623abda80ded125"><enum>(i)</enum><header>In general</header><text>Subject to sections 6d and 12(e), the Commission shall have exclusive jurisdiction with respect to any account, agreement, contract, or transaction involving a contract of sale of a digital commodity in interstate commerce, including in a digital commodity cash or spot market, that is offered, solicited, traded, facilitated, executed, cleared, reported, or otherwise dealt in—</text><subclause id="idf4b5c6e9d7354afc9961f40079e7a48d"><enum>(I)</enum><text>on or subject to the rules of a registered entity or an entity that is required to be registered as a registered entity; or</text></subclause><subclause id="id8aeb786493d3479b8a46cf18abfb8314"><enum>(II)</enum><text>by any other entity registered, or required to be registered, with the Commission.</text></subclause></clause><clause id="id89a93f64ea5341f1a36a981ba4e872e6"><enum>(ii)</enum><header>Limitations</header><text>Clause (i) shall not apply with respect to—</text><subclause id="id91766d2a649446a8aaae84dead007f3d"><enum>(I)</enum><text>custodial or depository activities for a digital commodity of an entity regulated by—</text><item commented="no" display-inline="no-display-inline" id="id3557e7a84e0e4c719f9ab350c3486640"><enum>(aa)</enum><text display-inline="yes-display-inline">an appropriate Federal banking agency; or </text></item><item commented="no" display-inline="no-display-inline" id="id23de35c0e17b4f8891f19bb2e386c549"><enum>(bb)</enum><text display-inline="yes-display-inline">a State bank supervisor (as defined in section 3 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>));</text></item></subclause><subclause id="id6db7a7b43c2e46d3a0813de23aae3534"><enum>(II)</enum><text>an offer or sale of an investment contract involving a digital commodity or a securities offer or sale involving a digital commodity; or</text></subclause><subclause id="id636cf634a4484a688bf192c01397c290"><enum>(III)</enum><text>a mixed digital asset transaction.</text></subclause></clause></subparagraph><subparagraph id="id2a4b52ba2fc6455fb5b4a92a5296cbdf"><enum>(G)</enum><header>Agreements, contracts, and transactions in stablecoins</header><clause id="id73a083e32f654ebf9042794fe55b572b"><enum>(i)</enum><header>Treatment of permitted payment stablecoins on Commission-registered entities</header><text>Subject to clauses (ii) and (iii), the Commission shall have jurisdiction over a cash or spot agreement, contract, or transaction in a permitted payment stablecoin that is offered, offered to enter into, entered into, executed, solicited, or accepted, or for which the execution of is confirmed—</text><subclause id="id5c87d91c37a04de98036f037cc517b53"><enum>(I)</enum><text>on or subject to the rules of a registered entity; or</text></subclause><subclause id="ida12dfff048dd4971b305012340cafa4c"><enum>(II)</enum><text>by any other entity registered with the Commission.</text></subclause></clause><clause id="id9c1cdc2787c64275ac02bb2802d26cca"><enum>(ii)</enum><header>Permitted payment stablecoin transaction rules</header><text>This Act shall apply to a transaction described in clause (i) only for the purpose of regulating the offer, execution, solicitation, or acceptance of a cash or spot permitted payment stablecoin transaction on a registered entity or by any other entity registered with the Commission, as if the permitted payment stablecoin were a digital commodity.</text></clause><clause id="id01f610cc3814432fba1e25a91ebe8891"><enum>(iii)</enum><header>No authority over permitted payment stablecoins</header><text>Notwithstanding clauses (i) and (ii), the Commission shall not make a rule or regulation, impose a requirement or obligation on a registered entity or other entity registered with the Commission, or impose a requirement or obligation on a permitted payment stablecoin issuer regarding the operation of a permitted payment stablecoin issuer or a permitted payment stablecoin.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection commented="no" id="id2734dbbb8a914eebb3971c99fba94960"><enum>(d)</enum><header>Network tokens and ancillary assets</header><text>Section 2 of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/2">7 U.S.C. 2</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="ida2a1b78509b64aa3b9bac32296c28ce2"><subsection commented="no" id="ide8da6fdac22544ea9f64be2ccb1160e7"><enum>(k)</enum><header>Treatment of secondary market network tokens and certified ancillary assets</header><text>The secondary market offer or sale of a network token (as defined in section 4B(a) of the Securities Act of 1933) other than the offer or sale of an investment contract pursuant to which an ancillary asset is offered or sold by an ancillary asset originator, or an underwriter with respect to an investment contract pursuant to which such ancillary asset was originally sold, shall be considered an offer or sale of a digital commodity.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="ida424863a8ed943bea31fe67479b7cae8"><enum>(e)</enum><header>Conforming amendments</header><paragraph commented="no" id="id7049f9840d514cdc9e2adedf8d303f47"><enum>(1)</enum><text>Paragraph (15) of section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>) (as amended by section 17(f) of the GENIUS Act (<external-xref legal-doc="public-law" parsable-cite="pl/119/27">Public Law 119–27</external-xref>; 139 Stat. 463) and as redesignated by section 101(a)(1)) is amended by striking the second sentence.</text></paragraph><paragraph commented="no" id="id9b2d76cf5a444e44bc99934ffee8f9b0"><enum>(2)</enum><text>Section 2(a)(1)(A) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/2">7 U.S.C. 2(a)(1)(A)</external-xref>) is amended, in the first sentence, by striking <quote>section 19 of this Act</quote> and inserting <quote>subparagraph (F) or (G) of subsection (c)(2) or section 19</quote>.</text></paragraph><paragraph commented="no" id="id2ae4bb8d8a9a4a4f86ac28a0f7f24734"><enum>(3)</enum><text>Section 4(c)(1) of the Commodity Exchange Act (7 U.S.C 6(c)(1)) is amended by adding after subparagraph (B) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id091140cd6f604e92a278a6aad74e22fe"><quoted-block-continuation-text quoted-block-continuation-text-level="subsection">For purposes of this paragraph, an agreement, contract, or transaction that is subject to the jurisdiction of the Commission under any of the amendments made to this Act by the Digital Commodity Intermediaries Act shall be subject to subsection (a).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section><section id="idf750a544e23c4a7b8be2cdb20f27d3e4"><enum>202.</enum><header>Requiring Futures Commission merchants to use qualified digital asset custodians</header><text display-inline="no-display-inline">Section 4d of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6d">7 U.S.C. 6d</external-xref>) is amended—</text><paragraph id="id2154cd9eee2143d686db67114b2e7782"><enum>(1)</enum><text>in subsection (a)(2)—</text><subparagraph id="id9bd9a702854643d9b57bb52e18304ece"><enum>(A)</enum><text>in the first proviso, by striking <quote>any bank or trust company</quote> and inserting <quote>any bank, trust company, or qualified digital asset custodian, as applicable,</quote>; and</text></subparagraph><subparagraph id="id70ce489092f6408a92816ac4db584136"><enum>(B)</enum><text>by inserting <quote>: <proviso><italic>Provided further</italic></proviso>, That any such property that is a digital asset shall be held in a qualified digital asset custodian</quote> before the period at the end; and</text></subparagraph></paragraph><paragraph id="id456c716f2f844753a5053dafddf12b46"><enum>(2)</enum><text>in subsection (f)(3)(A)(i), by striking <quote>any bank or trust company or with a</quote> and inserting <quote>any bank, trust company, qualified digital asset custodian, or</quote>.</text></paragraph></section><section id="id87ab8b7d320e496b9588aebe71973af6"><enum>203.</enum><header>Trading certification and approval for digital commodities</header><text display-inline="no-display-inline">Section 5c of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/7a-2">7 U.S.C. 7a–2</external-xref>) is amended—</text><paragraph id="id01f23e2f3cd9487bad3e0d68eb54f810"><enum>(1)</enum><text>in subsection (a)(1), by striking <quote>5(d) and 5b(c)(2)</quote> and inserting <quote>5(d), 5b(c)(2), and 5i(c)</quote>;</text></paragraph><paragraph id="id9478d3ffcfa74cd18d5b9209b64c4835"><enum>(2)</enum><text>in subsection (b)—</text><subparagraph id="id36eeda61427447e7a7cec6fe614c2929"><enum>(A)</enum><text>in each of paragraphs (1) and (2), by inserting <quote>digital commodity exchange,</quote> before <quote>derivatives</quote>; and</text></subparagraph><subparagraph id="idf3b014ada2de41a3a526b4672a04589b"><enum>(B)</enum><text>in paragraph (3), by inserting <quote>digital commodity exchange,</quote> before <quote>derivatives</quote> each place it appears;</text></subparagraph></paragraph><paragraph id="id3a9a5406729945389aafcb40d0e577b8"><enum>(3)</enum><text>in subsection (c)—</text><subparagraph id="id53dc1e045fa146a3a0ad7a91975922fa"><enum>(A)</enum><text>in paragraph (2), by inserting <quote>or participants</quote> before <quote>(in</quote>;</text></subparagraph><subparagraph id="id6e162bf092004e3ab2a6b9d726174d23"><enum>(B)</enum><text>in paragraph (4)(B), by striking <quote>1a(10)</quote> and inserting <quote>1a(16)</quote>; and</text></subparagraph><subparagraph id="ide057803b41a0409eb9ccfab94c6a708a"><enum>(C)</enum><text>in paragraph (5), by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="ida688c9750f6547769df68fe0dafec9b4"><subparagraph id="idc75da57c88304eb4a73fa262783e092a"><enum>(D)</enum><header>Special rules for digital commodity contracts</header><text>In certifying any new rule or rule amendment, or listing any new contract or instrument, in connection with a contract of sale of a commodity for future delivery, option, swap, or other agreement, contract, or transaction, that is based on or references a digital commodity, a registered entity may make or rely on a certification under subsection (d) for the digital commodity.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id8c4a59843f074473bc45adf528f07d38"><enum>(4)</enum><text>by inserting after subsection (c) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id6b020c0f34014a719c9ba90c5730baea"><subsection id="ida4f0feecfdc2438facce522be0bd1fb8"><enum>(d)</enum><header>Certifications for digital commodity trading</header><paragraph id="id9c45f2b6b0f34f45b4e0a6823f567a09"><enum>(1)</enum><header>In general</header><text>Notwithstanding subsection (c), for the purposes of listing or offering a digital commodity for trading in a digital commodity cash or spot market, an eligible entity shall submit a written certification to the Commission that the digital commodity meets the requirements of this Act (including the regulations prescribed under this Act).</text></paragraph><paragraph id="id64cbe90612094a2ea416897a7db52205"><enum>(2)</enum><header>Contents of the certification</header><text>In making a written certification under this subsection, an eligible entity shall furnish to the Commission an analysis of how the digital commodity meets the requirements of section 5i(c)(3).</text></paragraph><paragraph id="id564b1780968a4bd8b2b1f05ff61c0557"><enum>(3)</enum><header>Modifications</header><subparagraph id="id04f88f8a79bd404295120d33b4ab7b5a"><enum>(A)</enum><header>In general</header><text>An eligible entity shall modify a certification made under paragraph (1) to account for material changes in any information provided in connection with the requirements of section 5i(c)(3).</text></subparagraph><subparagraph id="idf51f488243954a2eaf54ac42234d1004"><enum>(B)</enum><header>Recertification</header><text>Modifications required by this subsection shall be subject to the same disapproval and review process as a new certification under paragraphs (4) and (5).</text></subparagraph></paragraph><paragraph id="ida585e0bcb2f94f6ea00a7af36f2b69ef"><enum>(4)</enum><header>Disapproval</header><subparagraph id="id4ff1493183574f6289949e998c9911a2"><enum>(A)</enum><header>In general</header><text>The written certification described in paragraph (1) shall become effective unless the Commission finds that the listing of the digital commodity is inconsistent with the requirements of this Act or the rules and regulations prescribed under this Act.</text></subparagraph><subparagraph id="id673cd60d0abc4153b0b419fb366658fd"><enum>(B)</enum><header>Analysis required</header><text>The Commission shall include, with any findings referred to in subparagraph (A), a detailed analysis of the factors on which the decision was based.</text></subparagraph><subparagraph id="id369f096a8eed40d296f44a03c9cc5f10"><enum>(C)</enum><header>Public findings</header><text>The Commission shall make public any disapproval decision, and any related findings and analysis, made under this paragraph.</text></subparagraph></paragraph><paragraph id="id44938dc60a7b4de4a9132bafe28c7c6b"><enum>(5)</enum><header>Review</header><subparagraph id="id23b7024c27b640c2bd7f7d8baabff303"><enum>(A)</enum><header>In general</header><text>Unless the Commission makes a disapproval decision under paragraph (4), the written certification described in paragraph (1) shall become effective, pursuant to the certification by the eligible entity and notice of the certification to the public (in a manner determined by the Commission) on the date that is—</text><clause id="id69d764c45f0a48b5a73bb389c21e0ff2"><enum>(i)</enum><text>20 business days after the date the Commission receives the certification (or such shorter period as determined by the Commission by rule or regulation), in the case of a digital commodity that has not been certified under this section or for which a certification is being modified under paragraph (3); or</text></clause><clause id="id50bfa1b5c882448dbeeb93ca7ae5dcf4"><enum>(ii)</enum><text>1 business day after the date the Commission receives the certification (or such shorter period as determined by the Commission by rule or regulation) for any digital commodity that has been certified under this section.</text></clause></subparagraph><subparagraph id="id2a1dccf16cc240f998cfaee6905670d9"><enum>(B)</enum><header>Extensions</header><text>The time for consideration under subparagraph (A) may be extended—</text><clause id="idafb33f4e3bea49b1b02d4f88bb1d5e09"><enum>(i)</enum><text>once, for 30 business days, through written notice to the eligible entity by the Commission—</text><subclause commented="no" display-inline="no-display-inline" id="id6eac97bc125543028d67fd1adf8ccee1"><enum>(I)</enum><text display-inline="yes-display-inline">that there are novel or complex issues that require additional time to analyze;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="idf234bedc9a834c768018d2494726f146"><enum>(II)</enum><text display-inline="yes-display-inline">that the explanation by the submitting eligible entity is inadequate; or </text></subclause><subclause commented="no" display-inline="no-display-inline" id="id6e8c22ff85564304a8fa688fa83fc76b"><enum>(III)</enum><text display-inline="yes-display-inline">of a potential inconsistency with this Act; and</text></subclause></clause><clause id="idc2814eed57d545d7b3dfa559559f4bbd"><enum>(ii)</enum><text>once, for an additional 30 business days, through written notice to the eligible entity from the Commission that includes a description of any issues with the certification, including any—</text><subclause id="id86934d30b5ef4930b800be39fd156989"><enum>(I)</enum><text>novel or complex issues that require additional time to analyze;</text></subclause><subclause id="id9f7396b98eab4d43848d88a671c8f504"><enum>(II)</enum><text>missing information or inadequate explanations; or</text></subclause><subclause id="idb0dd4f1564e4472ab0144afafc8936cc"><enum>(III)</enum><text>potential inconsistencies with this Act.</text></subclause></clause></subparagraph></paragraph><paragraph id="id43018c871c894ff0bc5ab78536ad6f65"><enum>(6)</enum><header>Prior approval before registration</header><subparagraph id="id293c360937664e13978d14db74e886b5"><enum>(A)</enum><header>In general</header><text>A person applying for registration with the Commission for the purposes of listing or offering a digital commodity for trading in a digital commodity cash or spot market may request that the Commission grant prior approval for the person to list or offer the digital commodity on being registered with the Commission.</text></subparagraph><subparagraph id="id0161ed8417b145568536570cf2ce8d95"><enum>(B)</enum><header>Request for prior approval</header><text>A person seeking prior approval under subparagraph (A) shall furnish the Commission with a written certification that the digital commodity meets the requirements of this Act (including the regulations prescribed under this Act) and the information described in paragraph (2).</text></subparagraph><subparagraph id="id9ec9790d9d5649ac821e3dd274bf38d6"><enum>(C)</enum><header>Deadline</header><text>The Commission shall take final action on a request for prior approval not later than 90 business days after submission of the request, unless the person submitting the request agrees to an extension of the time limitation established under this subparagraph.</text></subparagraph><subparagraph id="idddd79cb988be4d9a82e9b36af95d8e0a"><enum>(D)</enum><header>Disapproval</header><clause id="id3ed0530a453d48cc8888fd110d31f2df"><enum>(i)</enum><header>In general</header><text>The Commission shall approve the listing of the digital commodity requested under subparagraph (A) unless the Commission finds that the listing is inconsistent with this Act or the rules and regulations prescribed under this Act.</text></clause><clause id="id9a4fdb8bc42548e088f005d2f6257830"><enum>(ii)</enum><header>Analysis required</header><text>The Commission shall include, with any findings made under clause (i), a detailed analysis of the factors on which the decision is based.</text></clause><clause id="id39c8055c87bf4c6785fc6ede875710df"><enum>(iii)</enum><header>Public findings</header><text>The Commission shall make public any disapproval decision, and any related findings and analysis, made under this subparagraph.</text></clause></subparagraph></paragraph><paragraph id="idab577513180d4e2194d53e4acc61bc10"><enum>(7)</enum><header>Eligible entity defined</header><text>In this subsection, the term <term>eligible entity</term> means a registered entity or group of registered entities acting jointly.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section><section id="id17caff23277b444293006b7eba8b601d"><enum>204.</enum><header>Registration of digital commodity exchanges</header><subsection commented="no" display-inline="no-display-inline" id="id54ae403b909741c4ab4194f67bbad4ac"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Commodity Exchange Act is amended by inserting after section 5h (<external-xref legal-doc="usc" parsable-cite="usc/7/7b-3">7 U.S.C. 7b–3</external-xref>) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id62abdc034cb84947b2fa0dc995e136d4"><section id="idb0de4560d37a403d9df33c64050a0d6b"><enum>5i.<?LEXA-Enum 5i.?></enum><header>Registration of digital commodity exchanges</header><subsection id="id46dbfca89dbe43d5b4d1a42b49f13069"><enum>(a)</enum><header>In general</header><paragraph id="id8fe957e91f0f4c5d82896ebede4080a2"><enum>(1)</enum><header>Registration</header><subparagraph id="idae1bcc76a42f41bfa59dc51002ac0d96"><enum>(A)</enum><header>In general</header><text>A trading facility that offers or seeks to offer a cash or spot market in at least 1 digital commodity shall register with the Commission as a digital commodity exchange.</text></subparagraph><subparagraph id="id6d7d5a7c5ef6487db041a32d31a308e1"><enum>(B)</enum><header>Application</header><clause commented="no" display-inline="no-display-inline" id="idbc1f93df008b4263b3cc9aab126a6f0f"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">A person desiring to register as a digital commodity exchange shall submit to the Commission an application in such form and containing such information as the Commission shall require for the purpose of making the determinations required for approval.</text></clause><clause id="id36be7725479c4ce9848d3e9e6e8f00c2"><enum>(ii)</enum><header>Rulemaking required</header><text>The Commission shall, by rule, prescribe the contents of an application under clause (i), including governance, resources, systems safeguards, surveillance, and conflict management.</text></clause></subparagraph><subparagraph id="idf3295a62138945bbbb3190d778952204"><enum>(C)</enum><header>Exemptions</header><text>A trading facility that offers or seeks to offer a cash or spot market in at least 1 digital commodity shall not be required to register under this section if the trading facility—</text><clause id="iddd370155af194a4b96a7c8b5cd3ff457"><enum>(i)</enum><text>serves only customers in a single State, territory, or possession of the United States; </text></clause><clause id="ide2056d24971e4ab3bd5a78d13add816d"><enum>(ii)</enum><text>permits no more than a de minimis amount of trading activity, as the Commission may determine by rule or regulation, in a digital commodity; or</text></clause><clause id="id8ff0153acd274d048cd6024eeec9fb52"><enum>(iii)</enum><text>is already registered as a designated contract market, provided that the trading facility shall—</text><subclause commented="no" display-inline="no-display-inline" id="id1c62f9cf9f9c46d69908fefa6a4de9d7"><enum>(I)</enum><text display-inline="yes-display-inline">provide reasonable notice to the Commission of its intention to engage in offering a cash or spot market in at least 1 digital commodity; and </text></subclause><subclause commented="no" display-inline="no-display-inline" id="id7c439135cc674b8fbb57077a87cd2eab"><enum>(II)</enum><text display-inline="yes-display-inline">comply with all other provisions of this Act and the rules promulgated thereunder as they apply to a digital commodity exchange.</text></subclause></clause></subparagraph></paragraph><paragraph id="id8d21eafe331f4d83b62c218a687ee723"><enum>(2)</enum><header>Additional registrations</header><subparagraph commented="no" display-inline="no-display-inline" id="id7cf0af09d89e4c41be645a7d9df002ba"><enum>(A)</enum><header>Rules</header><text display-inline="yes-display-inline">In order to foster the development of fair and orderly markets, protect customers, and promote responsible innovation, the Commission shall—</text><clause id="id45fb69f27c8a43ae88b44a7f44a75c38"><enum>(i)</enum><text>prescribe rules to exempt an entity registered with the Commission under more than 1 section of this Act from duplicative, conflicting, or unduly burdensome provisions of this Act and the rules under this Act;</text></clause><clause id="ide27f4de00b3e4eb4a4f26ce7341fbab3"><enum>(ii)</enum><text>prescribe rules establishing requirements for the identification, mitigation, and resolution of conflicts of interest among and across affiliated entities or entities with multiple registrations under this Act, including conflicts of interest related to vertically integrated market structures and their varying responsibilities and activities; and</text></clause><clause id="ide1ad5e10adbc47a88adcfe0a4ff7a68c"><enum>(iii)</enum><text>after an analysis of the risks and benefits, prescribe rules to provide for portfolio margining in accordance with section 103(e) of the <short-title>Digital Commodity Intermediaries Act</short-title>.</text></clause></subparagraph><subparagraph id="id14d4aebfb6ce4001bce31b2978d7f289"><enum>(B)</enum><header>Registration required</header><text>A person required to be registered as a digital commodity exchange under this section shall register with the Commission as such regardless of whether the person is registered with another State or Federal regulator.</text></subparagraph></paragraph></subsection><subsection id="id960e5cfe3b0444298cf3b7ed465076ad"><enum>(b)</enum><header>Trading</header><paragraph id="id50472472f33649138c6d31bb02effc46"><enum>(1)</enum><header>Prohibition on certain trading practices</header><subparagraph id="id732895d7f2a545d696f568999ce4695d"><enum>(A)</enum><header>Contracts designed to defraud or mislead</header><text>Section 4b shall apply to any agreement, contract, or transaction in a digital commodity as if the agreement, contract, or transaction were a contract of sale of a commodity for future delivery.</text></subparagraph><subparagraph id="ida40d400ef842469a999bdbbaac0348cd"><enum>(B)</enum><header>Prohibited transactions</header><text>Section 4c shall apply to any agreement, contract, or transaction in a digital commodity as if the agreement, contract, or transaction were a transaction involving the purchase or sale of a commodity for future delivery.</text></subparagraph><subparagraph id="idf1bcceb5117f4c60b798ed073dc3d468"><enum>(C)</enum><header>Enforcement authority</header><text>Section 4b–1 shall apply to any agreement, contract, or transaction in a digital commodity as if the agreement, contract, or transaction were a contract of sale of a commodity for future delivery.</text></subparagraph></paragraph><paragraph id="id4c8b9be568e14f91aa2a148559abc58a"><enum>(2)</enum><header>Prohibition on acting as a counterparty</header><subparagraph commented="no" display-inline="no-display-inline" id="id2c2e6457324b41b9913b45c5de92fbb5"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">A digital commodity exchange or any affiliate of a digital commodity exchange shall not trade on or subject to the rules of the digital commodity exchange for its own account.</text></subparagraph><subparagraph id="idb6f81cedb9d9451f9b61ccaa10e1b2f1"><enum>(B)</enum><header>Exceptions</header><text>Subject to the limitations described in subparagraph (C), a digital commodity exchange or any affiliate of a digital commodity exchange may trade on the digital commodity exchange for its own account so long as the trading is not solely for the purpose of the profit of the digital commodity exchange, including the following transactions:</text><clause id="id513772a52a644a548fe769a116d47e06"><enum>(i)</enum><header>Customer direction</header><text>A transaction for, or entered into at the direction of, or for the benefit of, an unaffiliated customer.</text></clause><clause id="id824bb76fa9234d32807186a2aa710903"><enum>(ii)</enum><header>Liquidity provision</header><text>A transaction in connection with the provision of liquidity on the digital commodity exchange if conducted pursuant to policies and procedures reasonably designed to limit such activity to the reasonably expected customer demand for liquidity on the digital commodity exchange.</text></clause><clause id="id20a3db5c505a4b2f9fd7ef9f8416c39c"><enum>(iii)</enum><header>Risk-mitigating hedging</header><text>A transaction in connection with risk-mitigating hedging activities that are designed to reduce specific risks to the digital commodity exchange or its affiliate in connection with and related to its digital commodity activities.</text></clause></subparagraph><subparagraph id="ide071f7db3c5f42a5a6810fe4e49ab8ef"><enum>(C)</enum><header>Rulemaking</header><text>The Commission shall adopt rules establishing appropriate conditions, requirements, or other limitations on the use of the exceptions described in subparagraph (B) that are necessary for the protection of customers, the promotion of innovation, or the maintenance of fair, orderly, and efficient markets, which shall require that the digital commodity exchange has put in place adequate protections against conflicts of interest, such as timely and effective disclosure to clients, customers, and counterparties of any material conflict of interest or information barriers reasonably designed to protect against such conflicts of interest.</text></subparagraph><subparagraph id="id8d5cb8acf5aa42ee93bbaec44985cd57"><enum>(D)</enum><header>Notice requirement</header><text>In order for a digital commodity exchange or any affiliate of a digital commodity exchange to engage in trading on the affiliated digital commodity exchange pursuant to subparagraph (B), the digital commodity exchange or affiliate shall provide to the Commission notice that shall enumerate how any proposed activity is consistent with the exceptions described in subparagraph (B) and the purposes of this Act.</text></subparagraph><subparagraph id="id9a18c22225a7449a89f16962bc91e659"><enum>(E)</enum><header>Commission visibility into liquidity provision</header><text>A digital commodity exchange shall report to the Commission such quantitative metrics as the Commission determines, by rule, to be appropriate to provide the Commission with sufficient visibility into the activities of the digital commodity exchange or its affiliates in reliance on subparagraph (B)(ii).</text></subparagraph></paragraph></subsection><subsection id="idcf234288198444db86605dcf1bc445d5"><enum>(c)</enum><header>Core principles for digital commodity exchanges</header><paragraph id="id1fb0f84c63574e94844cc6c17098df1c"><enum>(1)</enum><header>Compliance with core principles</header><subparagraph id="id2d0d0d07617e416c983875f06ba9db6a"><enum>(A)</enum><header>In general</header><text>To be registered, and maintain registration, as a digital commodity exchange, a digital commodity exchange shall comply with—</text><clause id="idddbdd6daf47c4f79a17edb4d4568f03b"><enum>(i)</enum><text>the core principles described in this subsection; and</text></clause><clause id="idfdc6f29b0d4a4a26a6fe2102b599fe6a"><enum>(ii)</enum><text>any requirement that the Commission may impose by rule or regulation pursuant to section 8a(5).</text></clause></subparagraph><subparagraph id="idc51dc3c2fe894144a793d547a3c0cec8"><enum>(B)</enum><header>Reasonable discretion of a digital commodity exchange</header><text display-inline="yes-display-inline">Unless otherwise determined by the Commission by rule or regulation, a digital commodity exchange shall have reasonable discretion in establishing the manner in which the digital commodity exchange complies with the core principles described in this subsection.</text></subparagraph></paragraph><paragraph id="id30af83e7bc9c45d7a2fb2eb09bad98d1"><enum>(2)</enum><header>Compliance with rules</header><text>A digital commodity exchange shall—</text><subparagraph id="ida794a2360f894c0482076333a8622bdc"><enum>(A)</enum><text>establish and enforce compliance with any rule of the digital commodity exchange, including—</text><clause id="id334a8582ce0043e5910c2e06168da62c"><enum>(i)</enum><text>the terms and conditions of the trades traded or processed on or through the digital commodity exchange; and</text></clause><clause id="ide897a77dee0946b3a57ec7cc4b62ae26"><enum>(ii)</enum><text>any limitation on access to the digital commodity exchange;</text></clause></subparagraph><subparagraph id="ida366a6841884487389d37b549a0d7cbb"><enum>(B)</enum><text>establish and enforce trading, trade processing, and participation rules that will deter abuses and have the capacity to detect, investigate, and enforce those rules, including means—</text><clause id="id8f266ff747a34c5f887807cd15851755"><enum>(i)</enum><text>to provide market participants with impartial access to the market; and</text></clause><clause id="idc4e2be908e654ed5b4f916351da8ba8c"><enum>(ii)</enum><text>to capture information that may be used in establishing whether rule violations have occurred; and</text></clause></subparagraph><subparagraph id="id809ae249240b4ded8a7b2eb14a372650"><enum>(C)</enum><text>establish rules governing the operation of the exchange, including rules specifying trading procedures to be used in entering and executing orders traded or posted on the exchange.</text></subparagraph></paragraph><paragraph id="id6ad6a91bd75c43319df63ff5f5c152ff"><enum>(3)</enum><header>Listing standards for digital commodities</header><subparagraph id="ide5af53742c4c4bfa9000178615bc8e3c"><enum>(A)</enum><header>Not readily susceptible to manipulation</header><text>A digital commodity exchange shall permit trading only in a digital commodity that is not readily susceptible to manipulation.</text></subparagraph><subparagraph id="id29ea520d612b4b7aa16ad50d9cacb5d4"><enum>(B)</enum><header>Disclosures to the Securities and Exchange Commission</header><text>A digital commodity exchange shall establish policies and procedures to permit trading in a digital commodity only if—</text><clause id="idd428dcfe31c145a0b0290498cfa82189"><enum>(i)</enum><text>disclosures with respect to the digital commodity required under, as applicable, section 4B of the Securities Act of 1933 have been filed with the Securities and Exchange Commission; or</text></clause><clause id="id0ec8c58ea47249b5a758860a2536c392"><enum>(ii)</enum><text>such other similar information that is related to the ongoing development plan of the blockchain system and is able to be publicly ascertained, as the Commission may, by rule or regulation, require, has been provided to the public.</text></clause></subparagraph><subparagraph id="ide491c8f4ba8c4b1993a01325a90f0c38"><enum>(C)</enum><header>Public information requirements</header><clause id="id5741972a4baf4e45819e864b42b1be0b"><enum>(i)</enum><header>In general</header><text>A digital commodity exchange shall—</text><subclause id="idc1efd626bf91432b8d59817e38d2ecca"><enum>(I)</enum><text>permit trading in a digital commodity only if the digital commodity exchange reasonably determines that the information required by clause (ii) is correct, current, and available to the public; </text></subclause><subclause id="id75b82108499e481e8a675c9be0451b28"><enum>(II)</enum><text>establish policies and procedures to determine that the information provided pursuant to clause (ii) is correct, current, and available to the public; and</text></subclause><subclause id="idac8142b18d9849c9ab19e5da92aff231"><enum>(III)</enum><text>communicate in a fair and balanced manner based on principles of fair dealing and good faith.</text></subclause></clause><clause id="id7a1f6890806d4e2b95a24ffc314b42ba"><enum>(ii)</enum><header>Required information</header><text>With respect to a digital commodity and each blockchain system to which the digital commodity relates for which the digital commodity exchange will make the digital commodity available to the customers of the digital commodity exchange, the information required by this clause is the following:</text><subclause id="id1a6caa22ee014f819ef10d913092fdf2"><enum>(I)</enum><header>Source code</header><text>The source code for any blockchain system to which the digital commodity relates.</text></subclause><subclause id="id7edd88b4e05b45cd99b5fea78c1d8c4f"><enum>(II)</enum><header>Transaction history</header><text>A description of the steps necessary to independently access, search, and verify the transaction history of any blockchain system to which the digital commodity relates, to the extent any such independent access, search, and verification activities are technically feasible with respect to such blockchain system.</text></subclause><subclause id="idc90a1fe526d14c16b00fe4ed6c8871e2"><enum>(III)</enum><header>Digital commodity economics</header><text>A narrative description of the purpose of any blockchain system to which the digital commodity relates and the operation of any such blockchain system, including—</text><item id="ida22bbc77bba74757a05e62f2b796723e"><enum>(aa)</enum><text>information explaining the launch and supply process, including the number of digital assets to be issued in an initial allocation, the total number of digital commodities to be created, the release schedule for the digital commodities, and the total number of digital commodities then outstanding;</text></item><item id="id8a46257e92804c4495bf76d202d8fa23"><enum>(bb)</enum><text>information detailing any applicable consensus mechanism or process for validating transactions, method of generating or mining digital commodities, and any process for burning or destroying digital commodities on the blockchain system;</text></item><item id="id2a2850549f2340afa95473b76c80e245"><enum>(cc)</enum><text>an explanation of governance mechanisms for implementing changes to the blockchain system or forming consensus among holders of the digital commodities; and</text></item><item id="id396e063d94f948a883907e91a96bff4e"><enum>(dd)</enum><text>sufficient information for a third party to create a tool for verifying the transaction history of the digital commodity.</text></item></subclause><subclause id="id216c6428b66e46e6b185dd984b75c83a"><enum>(IV)</enum><header>Trading volume and volatility</header><text>The trading volume and volatility of the digital commodity on the exchange.</text></subclause><subclause id="id4058503b3c49425781c8b71494e973be"><enum>(V)</enum><header>Customer protections</header><item id="id5be6fdf112534ed090a007c76d77b30a"><enum>(aa)</enum><text>Information about the material risks and characteristics of the digital commodity.</text></item><item id="id46675853d59446c697c822fd9d3927f3"><enum>(bb)</enum><text>Any material incentives or conflicts of interest that the digital commodity exchange may have in connection with the listing of the digital commodity.</text></item><item id="idd2f6a999a6354fc7950bfbd0b2c8cae6"><enum>(cc)</enum><text>Information required by the Commission by rule or regulation pertaining to marketing and advertising, including testimonials and endorsements.</text></item></subclause><subclause commented="no" display-inline="no-display-inline" id="id61844b43efa84989bfea4d9e2824fe74"><enum>(VI)</enum><header>Additional information</header><text display-inline="yes-display-inline">Such additional information as the Commission shall determine by rule or regulation to be necessary for a customer to understand the financial and operational risks of a digital commodity, and to be practically feasible to provide.</text></subclause></clause></subparagraph></paragraph><paragraph id="id8ba2be07242f407dbe9985dda7225afa"><enum>(4)</enum><header>Monitoring of trading and trade processing</header><subparagraph id="id84c952e820ea4a71b558fafcade09450"><enum>(A)</enum><header>In general</header><text>A digital commodity exchange shall provide a competitive, open, and efficient market and mechanism for executing transactions that protects the price discovery process of trading on the exchange.</text></subparagraph><subparagraph id="id3327060cff4d4db1b6910e6fe541fc70"><enum>(B)</enum><header>Protection of markets and market participants</header><text>A digital commodity exchange shall establish and enforce rules—</text><clause id="id453db78ddb9a45609058d3c8c1edd743"><enum>(i)</enum><text>to protect markets and market participants from abusive practices committed by any party, including abusive practices committed by a party acting as an agent for a participant; and</text></clause><clause id="id5f97162b270c4eac9d8210550aded68c"><enum>(ii)</enum><text>to promote fair and equitable trading on the exchange.</text></clause></subparagraph><subparagraph id="id1f05b94624494389b936d51e731599cf"><enum>(C)</enum><header>Trading procedures</header><text>A digital commodity exchange shall—</text><clause id="id216376165be247f6b8c49c7a45c77bb9"><enum>(i)</enum><text>establish and enforce rules or terms and conditions defining, or specifications detailing—</text><subclause id="idefb067faa4614ee080346894b35ed0ce"><enum>(I)</enum><text>trading procedures to be used in entering and executing orders traded on or through the facilities of the digital commodity exchange; and</text></subclause><subclause id="id879c1f59fdf040b48911db988168f3d1"><enum>(II)</enum><text>procedures for trade processing of digital commodities on or through the facilities of the digital commodity exchange; and</text></subclause></clause><clause id="ida956f17a828146239dfb41b79dabd325"><enum>(ii)</enum><text>monitor trading in digital commodities to prevent manipulation, price distortion, and disruptions, through surveillance, compliance, and disciplinary practices and procedures, including methods for conducting real-time monitoring of trading and comprehensive and accurate trade reconstructions.</text></clause></subparagraph></paragraph><paragraph id="id7ea42b54cd5846aaa0e33d7283b9c358"><enum>(5)</enum><header>Ability to obtain information</header><text>A digital commodity exchange shall—</text><subparagraph id="idf0a1d44a3ce945b88d4fb543f7799702"><enum>(A)</enum><text>establish and enforce rules that will allow the exchange to obtain any necessary information to perform any of the functions described in this section;</text></subparagraph><subparagraph id="id4fe44d6ad18447c9ae88282d6d92b63a"><enum>(B)</enum><text>provide the information to the Commission on request; and</text></subparagraph><subparagraph id="idc7b9b36b168249e9b204e91371eb2576"><enum>(C)</enum><text>have the capacity to carry out such international information-sharing agreements as the Commission may require.</text></subparagraph></paragraph><paragraph id="idb1060a083be0447796450843d727d49d"><enum>(6)</enum><header>Emergency authority</header><text>A digital commodity exchange shall adopt rules to provide for the exercise of emergency authority, in consultation or cooperation with the Commission or a registered entity, as is necessary and appropriate, including the authority to facilitate the liquidation or transfer of open positions in any digital commodity or to suspend or curtail trading in a digital commodity.</text></paragraph><paragraph id="id5409cc47a397444694ea0f75435aec99"><enum>(7)</enum><header>Timely publication of trading information</header><subparagraph id="id6e9ccd66e5a748699e37ff3841212497"><enum>(A)</enum><header>In general</header><text>A digital commodity exchange shall make public on its website timely information on price, trading volume, and other trading data on digital commodities to the extent prescribed by the Commission by rule or regulation.</text></subparagraph><subparagraph id="ide32699bf091349c4ae03c1e6ee770bce"><enum>(B)</enum><header>Capacity of digital commodity exchange</header><text>A digital commodity exchange shall have the capacity to electronically capture and transmit trade information with respect to transactions executed on the exchange.</text></subparagraph></paragraph><paragraph id="idcaab2e7558fe4245ac93f773adf3a40d"><enum>(8)</enum><header>Recordkeeping and reporting</header><subparagraph id="idf08b9807c99243ae8736ce6092d3c9e3"><enum>(A)</enum><header>In general</header><text>A digital commodity exchange shall—</text><clause id="idefcb324ffba9462eab07d516e4d74b87"><enum>(i)</enum><text>maintain records relating to the business of the digital commodity exchange, including a complete audit trail, in a form and manner acceptable to the Commission for a period of 5 years;</text></clause><clause id="idab9e9c26e1f64cc0bde26a4c5c149b14"><enum>(ii)</enum><text>report to the Commission, in a form and manner acceptable to the Commission, such information as the Commission determines to be necessary or appropriate for the Commission to perform the duties of the Commission under this Act;</text></clause><clause id="id18e5205f904044d89f142aa908e17007"><enum>(iii)</enum><text>keep any such records of digital commodities that relate to a security open to inspection and examination by the Securities and Exchange Commission; and</text></clause><clause id="idd7618c23a59247ce94bcc5fb14ece92b"><enum>(iv)</enum><text>provide to the Commission an annual financial statement certified by an independent public accountant.</text></clause></subparagraph><subparagraph id="ide2d05baaf73b4822b08e291499c2c156"><enum>(B)</enum><header>Providing information</header><text>A digital commodity exchange shall provide to the Commission (including any designee of the Commission) information under subparagraph (A) in such form and at such frequency as is required by the Commission.</text></subparagraph></paragraph><paragraph id="idc79de8a81a1d4671b9139baf36401823"><enum>(9)</enum><header>Antitrust considerations</header><text>Unless necessary or appropriate to achieve the purposes of this Act, a digital commodity exchange shall not—</text><subparagraph id="idbab79d327ca64f4ca5af91807e1cc9c0"><enum>(A)</enum><text>adopt any rules or take any actions that result in any unreasonable restraint of trade; or</text></subparagraph><subparagraph id="id678623cff9934e209a1b53f7f6a7d9e4"><enum>(B)</enum><text>impose any material anticompetitive burden on trading.</text></subparagraph></paragraph><paragraph id="id76d6951d519f4dcbba97e8e9caa73f96"><enum>(10)</enum><header>Conflicts of interest</header><text display-inline="yes-display-inline">A digital commodity exchange shall establish and enforce rules—</text><subparagraph id="idca64cafa9d1a4e8da1e1b8260c462a56"><enum>(A)</enum><text>to minimize conflicts of interest in the decision-making processes of the digital commodity exchange, including conflicts of interest that might potentially bias the judgement or supervision of the digital commodity exchange and contravene the principles of fair and equitable trading;</text></subparagraph><subparagraph id="iddfd510122766414dbf59c6f8f6af6278"><enum>(B)</enum><text>to minimize conflicts of interest that might arise—</text><clause commented="no" display-inline="no-display-inline" id="id94fd0568124648fa81e44ab376198276"><enum>(i)</enum><text display-inline="yes-display-inline">out of transactions or arrangements with affiliates (including affiliates engaging in digital commodity activities); or</text></clause><clause commented="no" display-inline="no-display-inline" id="idac3cc4f8eda74f65ac0702f1489151d1"><enum>(ii)</enum><text display-inline="yes-display-inline">as a result of multiple registrations under this Act; </text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7d3389234d604013bb270a222b1745db"><enum>(C)</enum><text display-inline="yes-display-inline">to establish a process for resolving conflicts of interest referred to in subparagraphs (A) and (B);</text></subparagraph><subparagraph id="id127ab3e97805457bb7e8736c2cb69760"><enum>(D)</enum><text>to require disclosure by the digital commodity exchange of any material incentives or conflicts of interest that the digital commodity exchange is unable to resolve, or prohibit the conditions giving rise to such conflicts of interest not able to be resolved, as the Commission may determine to be appropriate; and</text></subparagraph><subparagraph id="id5f1833f97b6140a5b624e97214204e6e"><enum>(E)</enum><text>relating to such additional matters as the Commission shall determine by rule or regulation to be necessary in the public interest.</text></subparagraph><subparagraph commented="no" id="id78f6e6b9dfeb4684a0a8092962b63d98"><enum>(F)</enum><header>Affiliates</header><text>A digital commodity exchange may permit an affiliated digital commodity broker or digital commodity dealer to facilitate impartial access to the digital commodity exchange, subject to the rules prescribed by the Commission with respect to conflicts of interest regarding transactions or arrangements with affiliates.</text></subparagraph></paragraph><paragraph id="id9511e699c1bd48ff813a3aeab947863a"><enum>(11)</enum><header>Financial resources</header><subparagraph id="idc63c242a60d547e18db6c5bb20fdce50"><enum>(A)</enum><header>In general</header><text>A digital commodity exchange shall have adequate financial, operational, and managerial resources, as shall be determined by the Commission by rule or regulation, to discharge each responsibility of the digital commodity exchange.</text></subparagraph><subparagraph id="id373db6aae3b64ff29a6bc41eda47e30c"><enum>(B)</enum><header>Minimum amount of financial resources</header><text>A digital commodity exchange shall possess financial resources that, at a minimum, exceed the sum of—</text><clause id="idee0119224883424eb5aca03cde074820"><enum>(i)</enum><text>the total amount that would enable the digital commodity exchange to cover the operating costs of the digital commodity exchange for a 1-year period, as calculated on a rolling basis; and</text></clause><clause id="id005726e1f9fc4bac8154cb6f625d3049"><enum>(ii)</enum><text>the total amount necessary to meet the financial obligations of the digital commodity exchange to all customers of the digital commodity exchange.</text></clause></subparagraph><subparagraph id="id9a7fb0cd010545df87ebdefba5539e4c"><enum>(C)</enum><header>Prohibition</header><text>The resources used to meet the requirements under subparagraph (B) shall not include digital commodities originated by the digital commodity exchange or affiliates of the digital commodity exchange.</text></subparagraph></paragraph><paragraph id="id3dd2adbc50c64fa4a6fb8b3e74dcf12d"><enum>(12)</enum><header>Disciplinary procedures</header><text>A digital commodity exchange shall establish and enforce disciplinary procedures that authorize the digital commodity exchange to discipline, suspend, or expel members or market participants that violate the rules of the digital commodity exchange, or similar methods for performing the same functions, including delegation of the functions to third parties.</text></paragraph><paragraph id="id628850eef536460e8255f0b31d2aa05d"><enum>(13)</enum><header>Governance fitness standards</header><subparagraph id="id2f2a40b03b3e407382f5f608a3d212be"><enum>(A)</enum><header>Governance arrangements</header><text>A digital commodity exchange shall establish governance arrangements that are transparent to fulfill public interest requirements.</text></subparagraph><subparagraph id="idb8e67e91075b4f78b2305d92439890b7"><enum>(B)</enum><header>Fitness standards</header><text>A digital commodity exchange shall establish and enforce appropriate fitness standards for—</text><clause id="id5f9079b8f7384b1db64dc354d1a7a805"><enum>(i)</enum><text>officers and directors; </text></clause><clause id="idb367f222fc034e28a0965f57cc754297"><enum>(ii)</enum><text>any individual or entity with direct access to, or control of, customer assets; and</text></clause><clause id="id7422496e9d2e4f68b062b9db2b0f44bc"><enum>(iii)</enum><text>other persons, as determined by the Commission by rule or regulation.</text></clause></subparagraph><subparagraph id="id0372764ca7d24ff8906e8df891f1952b"><enum>(C)</enum><header>Board of directors</header><text>Except as otherwise provided by the Commission by rule, regulation, or order, a digital commodity exchange shall be governed by a board of directors, subject to the following requirements:</text><clause id="idf0fb80b856fd4cf3b2a7ec705bf9a708"><enum>(i)</enum><text>The composition of the board of directors shall be sufficient to maintain appropriate independence, as determined by the Commission.</text></clause><clause id="id50a9f1bb2ecb4a4db9395e8a7bdaf020"><enum>(ii)</enum><text>A digital commodity exchange shall endeavor to recruit individuals to serve on the board of directors from among, and to have the composition of the board reflect, a broad and culturally diverse pool of qualified candidates.</text></clause></subparagraph></paragraph><paragraph id="idef6187944f9c4ce6a91ef09e8589ee88"><enum>(14)</enum><header>System safeguards</header><text>A digital commodity exchange shall—</text><subparagraph id="id33a1660b27fe4038854392279efc2aee"><enum>(A)</enum><text>establish and maintain a program of risk analysis and oversight to identify and minimize sources of operational and security risks (including cybersecurity risks), through the development of appropriate controls and procedures, and automated systems that—</text><clause id="ide7a4c2466cdf4cb1b4e95f993b845ff3"><enum>(i)</enum><text>are reliable and secure; and</text></clause><clause id="id5845867493924e618868e4ad8121d994"><enum>(ii)</enum><text>have adequate scalable capacity;</text></clause></subparagraph><subparagraph id="id2ff672e09cdc4410b061107410f089b7"><enum>(B)</enum><text>establish and maintain emergency procedures, backup resources, and a plan for disaster recovery that allow for—</text><clause id="id8a45357412544d7a9ad8a2abce41350e"><enum>(i)</enum><text>the timely recovery and resumption of operations;</text></clause><clause id="ide76567946d794bf395095cac71390f34"><enum>(ii)</enum><text>the fulfillment of the responsibilities and obligations of the digital commodity exchange; and</text></clause><clause id="id17b81a8906904439874087c420d2f992"><enum>(iii)</enum><text>the appropriate safeguarding and ability to access the private keys or other credentials necessary to transmit digital commodities in the possession, custody, or control of the digital commodity exchange; and</text></clause></subparagraph><subparagraph id="id08b8e2e1765c4029a927d7961f5cddc4"><enum>(C)</enum><text>periodically conduct tests to verify that the backup resources of the digital commodity exchange are sufficient to ensure continued—</text><clause id="id559823d1e8ed45898f89a2a221b376b9"><enum>(i)</enum><text>order processing and trade matching;</text></clause><clause id="id2b0f00880db44ae6bf15d5bfa58fa862"><enum>(ii)</enum><text>price reporting;</text></clause><clause id="id7a13cd86468b4dd59ddc7a094f45ec13"><enum>(iii)</enum><text>market surveillance; </text></clause><clause id="idd01bd38a1e6344e193d0e49bac95687a"><enum>(iv)</enum><text>maintenance of a comprehensive and accurate audit trail; and</text></clause><clause id="id6f93077a103c4d3c866f0990c4acb7dc"><enum>(v)</enum><text>access and ability to transfer digital commodities in the possession, custody, or control of the digital commodity exchange.</text></clause></subparagraph></paragraph><paragraph id="idcbb88a461f8f4b7797bf677904d2fb09"><enum>(15)</enum><header>Risk management procedures</header><text>A digital commodity exchange shall establish robust and professional risk management systems adequate for managing the day-to-day business of the digital commodity exchange.</text></paragraph></subsection><subsection id="ida23f3591923e4fbcafaeb77cb2252efc"><enum>(d)</enum><header>Consumer protection</header><text>The Commission shall adopt rules or regulations imposing customer protection requirements that—</text><paragraph id="idbac42d730798471c8ee819e3a99b775b"><enum>(1)</enum><text>require disclosure by a digital commodity exchange to a customer (other than another digital commodity exchange registered under this section), which shall be updated in a timely manner to reflect material changes, and in accordance with paragraph (5), of—</text><subparagraph id="ide3a8bcab409642159ff7fb970206f783"><enum>(A)</enum><text>the underlying technology of any digital commodity that is listed on the digital commodity exchange;</text></subparagraph><subparagraph id="ida05cdeb919914892af5ede3fa3bfc0ca"><enum>(B)</enum><text>the functionality and utility of any digital commodity that is listed on the digital commodity exchange;</text></subparagraph><subparagraph id="ide0b07a2a31574097854f0d97de04966b"><enum>(C)</enum><text>the governance structure of any digital commodity that is listed on the digital commodity exchange;</text></subparagraph><subparagraph id="id659374426ef847b4beb6652ef11a561d"><enum>(D)</enum><text>the trading volume and volatility of any digital commodity that is listed on the digital commodity exchange;</text></subparagraph><subparagraph id="id5dc33ead4b174af5b53955987b246797"><enum>(E)</enum><text>information about the material risks and characteristics of any applicable digital commodities; and</text></subparagraph><subparagraph id="id29d5a47507c84c21aeb9d6f5bf021251"><enum>(F)</enum><text>any material incentives or conflicts of interest that the digital commodity exchange may have in connection with the listing of any applicable digital commodities;</text></subparagraph></paragraph><paragraph id="id6bab1a78746149cb8fc0dbf91cfd2894"><enum>(2)</enum><text>establish a duty for a digital commodity exchange to communicate in a fair and balanced manner based on principles of fair dealing and good faith;</text></paragraph><paragraph id="idd33a57a3cff44128b639677b6a2568c8"><enum>(3)</enum><text>establish standards governing digital commodity exchange marketing and advertising, including testimonials and endorsements; </text></paragraph><paragraph id="idf121fa3bf8ad4da999c45471446f18cb"><enum>(4)</enum><text>establish such other standards and requirements as the Commission may determine are—</text><subparagraph id="ida2849fed1ab44beb987c5d847885d722"><enum>(A)</enum><text>appropriate for the protection of customers; or</text></subparagraph><subparagraph id="id58e36a15d06a419ca79f501d65a68e43"><enum>(B)</enum><text>otherwise in furtherance of the purposes of this Act; and</text></subparagraph></paragraph><paragraph id="id22cf2a0bab3d4f9aaa1c47de16093a11"><enum>(5)</enum><text>standardize and simplify disclosures under paragraph (1), including requiring that disclosures—</text><subparagraph id="idb9a2907c9b0b43329af6ba6338408733"><enum>(A)</enum><text>be conspicuous;</text></subparagraph><subparagraph id="id1b06ea1a21444d0b87be9d80d23547d0"><enum>(B)</enum><text>use plain language comprehensible to customers; and</text></subparagraph><subparagraph id="id2dbeee0c6e6c41b28308f11c0323bb59"><enum>(C)</enum><text>succinctly explain the information that is required to be communicated to the customer.</text></subparagraph></paragraph></subsection><subsection id="id04e2aa8702494383a477e5b39feb4105"><enum>(e)</enum><header>Information-sharing</header><paragraph commented="no" display-inline="no-display-inline" id="id9a55c01357564a31ab26724afc7a5449"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text>Subject to section 8, and on request, the Commission shall share information collected under subsection (c)(8)(A) with—</text><subparagraph id="id87cbdae3ac9d4fef93286a356c702731"><enum>(A)</enum><text>the Board of Governors of the Federal Reserve System;</text></subparagraph><subparagraph id="idf6801d38f5e74ee8a6ec5fc911386ffd"><enum>(B)</enum><text>the Securities and Exchange Commission;</text></subparagraph><subparagraph id="idba5d591ec8994affa5a4d068c78a92cd"><enum>(C)</enum><text>each appropriate Federal banking agency;</text></subparagraph><subparagraph id="id064e252b282e4bd8b2a0f04941a06a0a"><enum>(D)</enum><text>each appropriate State bank supervisor (as defined in section 3 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>));</text></subparagraph><subparagraph id="id93ea310579d646259e8d08413c9566c7"><enum>(E)</enum><text>the Financial Stability Oversight Council;</text></subparagraph><subparagraph id="id6c1ec2d050034144bd8f1ebcbf176ee9"><enum>(F)</enum><text>the Department of Justice;</text></subparagraph><subparagraph id="id8ec7a609a84c4898b1b099a6cf1b0ce3"><enum>(G)</enum><text>State securities regulators; and</text></subparagraph><subparagraph id="id7d448d6aa75e4902a653e38c944c0669"><enum>(H)</enum><text>any other person that the Commission determines to be appropriate, including—</text><clause id="idccb5cf198811491383b1e422685d94a1"><enum>(i)</enum><text>foreign financial supervisors (including foreign futures authorities);</text></clause><clause id="id75dd6b8a5e5847adb67927927c415f71"><enum>(ii)</enum><text>foreign central banks; and</text></clause><clause id="idebf3ad63b69144aca2d718ab40e5c08d"><enum>(iii)</enum><text>foreign ministries.</text></clause></subparagraph></paragraph><paragraph id="ide767dac0b14e4c9399c3422ec1f5dd25"><enum>(2)</enum><header>Confidentiality agreement</header><text>Before the Commission may share information with any entity described in paragraph (1), the Commission shall receive a written agreement from the entity stating that the entity shall abide by the confidentiality requirements described in section 8 relating to the information on digital commodities that is provided.</text></paragraph></subsection><subsection id="id901e3b9860a54e2797adf0ebe412376e"><enum>(f)</enum><header>Holding of customer assets</header><paragraph commented="no" id="id64198ae00af041e495f347e1ffa54783"><enum>(1)</enum><header>In general</header><text>A digital commodity exchange shall hold customer money, assets, and property in a manner to minimize the risk of loss to the customer or unreasonable delay in customer access to the money, assets, and property of the customer.</text></paragraph><paragraph id="id07c3d9c9859f4260b63e4bf3dd465de4"><enum>(2)</enum><header>Qualified digital asset custodian</header><text>Each digital commodity exchange shall hold in a qualified digital asset custodian each unit of a digital asset that is—</text><subparagraph id="id2a1dae4e5e47418fa74a54603ec84898"><enum>(A)</enum><text>the property of a customer of the digital commodity exchange;</text></subparagraph><subparagraph id="id3c69f6ea66fd411c82752e75f3838ed9"><enum>(B)</enum><text>required to be held by the digital commodity exchange under subsection (c)(11); or</text></subparagraph><subparagraph id="ida717f02a33a54d0e9693e211f36030c8"><enum>(C)</enum><text>otherwise so required by the Commission to reasonably protect customers and customer assets or promote the public interest.</text></subparagraph></paragraph><paragraph id="id3dc33d8d35e549ed89453d98f89923e2"><enum>(3)</enum><header>Segregation of funds</header><subparagraph id="id8c05360ff8384b1c8f965d8720742bee"><enum>(A)</enum><header>In general</header><text>A digital commodity exchange shall treat and deal with all money, assets, and property that is received by the digital commodity exchange, or accrues to a customer as the result of trading in digital commodities, as belonging to the customer.</text></subparagraph><subparagraph id="id22dcf0ff77644660970c5e31f396dc77"><enum>(B)</enum><header>Commingling prohibited</header><text>Money, assets, and property described in subparagraph (A) shall be separately accounted for and shall not be commingled with the funds of the digital commodity exchange or be used to margin, secure, or guarantee any trades or accounts of any customer or person other than the person for whom the same are held.</text></subparagraph><subparagraph id="id0c14aee3d6ac4e5cb02d91c1f35cdeb9"><enum>(C)</enum><header>Exceptions</header><clause id="ida8ed2c9036204762baf5fffe7a39ae9e"><enum>(i)</enum><header>Use of funds</header><subclause id="id0a2bf0fac819447ab3c9597fa0af5a5d"><enum>(I)</enum><header>In general</header><text>Notwithstanding subparagraph (A), money, assets, and property described in subparagraph (A) may, for convenience, be commingled and deposited in the same account or accounts with any bank, trust company, derivatives clearing organization, or qualified digital asset custodian.</text></subclause><subclause id="idf3ed530260d54ef5bbc86345e22a7423"><enum>(II)</enum><header>Withdrawal</header><text>Notwithstanding subparagraph (A), such share of the money, assets, and property described in subparagraph (A) as in the normal course of business shall be necessary to margin, guarantee, secure, transfer, adjust, or settle a contract of sale of a digital commodity with a registered entity may be withdrawn and applied to such purposes, including the payment of commissions, brokerage, interest, taxes, storage, and other charges, lawfully accruing in connection with the contract of sale.</text></subclause></clause><clause id="idef5bb559367948c7ad49a1ae0ad53f3f"><enum>(ii)</enum><header>Commission action</header><text>Notwithstanding subparagraph (A), in accordance with such terms and conditions as the Commission may prescribe by rule, regulation, or order, any money, assets, or property of the customers of a digital commodity exchange may be commingled and deposited in customer accounts with any other money, assets, or property received by the digital commodity exchange and required by the Commission to be separately accounted for and treated and dealt with as belonging to the customer of the digital commodity exchange.</text></clause></subparagraph></paragraph><paragraph id="id6fd52d1782b849fba8e2da3b51a97c9a"><enum>(4)</enum><header>Permitted investments</header><text>Money described in paragraph (3) may be invested in obligations of the United States, in general obligations of any State or of any political subdivision of a State, and in obligations fully guaranteed as to principal and interest by the United States, or in any high-quality liquid asset that the Commission may by rule or regulation prescribe, and such investments shall be made in accordance with such rules and regulations and subject to such conditions as the Commission shall prescribe.</text></paragraph><paragraph id="id31039e7439444ab69b606f1587b35c11"><enum>(5)</enum><header>Customer protection during bankruptcy</header><subparagraph id="id091b17faa1404d81baa5fe54b3297c90"><enum>(A)</enum><header>Customer property</header><text>All assets held on behalf of a customer by a digital commodity exchange, and all money, assets, and property of any customer received by a digital commodity exchange for trading or custody, or to facilitate, margin, guarantee, or secure contracts of sale of a digital commodity (including money, assets, or property accruing to the customer as the result of the transactions), shall be considered customer property for purposes of section 761 of title 11, United States Code.</text></subparagraph><subparagraph id="id174e676efad24a2eb71978843e845ee4"><enum>(B)</enum><header>Transactions</header><text>A transaction involving the sale of a unit of a digital commodity occurring on or subject to the rules of a digital commodity exchange shall be considered a contract for the purchase or sale of a commodity for future delivery, on or subject to the rules of, a contract market or board of trade for purposes of the definition of <quote>commodity contract</quote> in section 761 of title 11, United States Code.</text></subparagraph><subparagraph id="ide5dd7228ec6943cab7835a759091875c"><enum>(C)</enum><header>Exchanges</header><text>A digital commodity exchange shall be considered a futures commission merchant for purposes of section 761 of title 11, United States Code.</text></subparagraph><subparagraph commented="no" id="idbe3c8f5ca5574fb497cfa8f226eb76fb"><enum>(D)</enum><header>Assets removed from segregation</header><text>Assets removed from segregation due to a customer election under paragraph (7) shall not be considered customer property for purposes of section 761 of title 11, United States Code.</text></subparagraph></paragraph><paragraph id="idd5b94f488db34c548e9ffae868678c82"><enum>(6)</enum><header>Misuse of customer property</header><subparagraph id="id2a88bf1acc6d449790cda2f906c0be64"><enum>(A)</enum><header>In general</header><text>It shall be unlawful—</text><clause id="ide95c51b0f30d48e4916681025248a3a2"><enum>(i)</enum><text>for any digital commodity exchange that has received any customer money, assets, or property for custody to dispose of, or use any such money, assets, or property as belonging to the digital commodity exchange or any person other than a customer of the digital asset exchange; or</text></clause><clause id="id605ca0b199d84acb95cb985af53c808c"><enum>(ii)</enum><text>for any other person, including any depository, other digital commodity exchange, or digital asset custodian that has received any customer money, assets, or property for deposit, to hold, dispose of, or use any such money, assets, or property as belonging to the depositing digital commodity exchange or any person other than the customers of the digital commodity exchange.</text></clause></subparagraph><subparagraph id="id632a83d72e4b4afab3b90681e3708f32"><enum>(B)</enum><header>Use further defined</header><text>For purposes of this paragraph, the term <quote>use</quote> with respect to a digital commodity, includes utilizing any unit of a digital asset to participate in a blockchain service (as defined in paragraph (7)(D)) or a decentralized governance system associated with the digital commodity or the blockchain system to which the digital commodity relates in any manner other than that expressly directed by the customer from whom the unit of a digital commodity was received.</text></subparagraph></paragraph><paragraph commented="no" id="id432812262db64610a4e6179814a75d30"><enum>(7)</enum><header>Participation in blockchain services</header><subparagraph commented="no" id="id8c6373e588b34ebbaeb3204dad4cd5f6"><enum>(A)</enum><header>Use of funds</header><text>A digital commodity exchange (or a designee of a digital commodity exchange) may use a unit of a digital commodity belonging to a customer to provide a blockchain service for a blockchain system to which the unit of the digital commodity relates if for each use—</text><clause commented="no" id="id01ceab37b7684e14833de20cacc42b53"><enum>(i)</enum><text>the customer expressly permits the use, in writing, to the digital commodity exchange; and</text></clause><clause commented="no" id="id59104fc176d84c538f3c9c5c4e754087"><enum>(ii)</enum><text>the digital commodity exchange complies with subparagraph (B).</text></clause></subparagraph><subparagraph commented="no" id="id44e99d66e84c40b78c4d6179f02519cc"><enum>(B)</enum><header>Limitations</header><clause commented="no" id="id370dfffaae4341589b7b49bcc257eeb0"><enum>(i)</enum><header>In general</header><text>The Commission shall, by rule, establish notice and written disclosure requirements and any other limitations and rules related to a permission provided under subparagraph (A) or the treatment of customer assets in the event of an insolvency, resolution, or liquidation proceeding, including a description of the manner in which any digital commodity would be treated in an insolvency, resolution, or liquidation proceeding, and how the treatment of digital commodities differs from the treatment of any other assets in the event of an insolvency, resolution, or liquidation proceeding, that are reasonably necessary to protect customers, including eligible contract participants, non-eligible contract participants, and any other class of customers.</text></clause><clause commented="no" id="iddfacae49082e4d388226035f90675421"><enum>(ii)</enum><header>Customer choice</header><text>A digital commodity exchange may not—</text><subclause commented="no" display-inline="no-display-inline" id="id4d692a85d7f2449f9ebc6ea316eab750"><enum>(I)</enum><text display-inline="yes-display-inline">require a customer to provide the permission referred to in subparagraph (A) as a condition of doing business on the exchange; or</text></subclause><subclause id="idf9d09da7d44e404d81793960c6525b28"><enum>(II)</enum><text>penalize a customer for not providing the permission referred to in subparagraph (A).</text></subclause></clause></subparagraph><subparagraph commented="no" id="id765040897f5a4bbab5ee2e52e9c7dc92"><enum>(C)</enum><header>Requirements</header><text>The Commission may, by rule, modify the requirements of paragraph (2) or (3) to facilitate the use of a unit of a digital commodity belonging to a customer to provide a blockchain service.</text></subparagraph><subparagraph commented="no" id="id5489dfa9d7614b82b96648f69160389d"><enum>(D)</enum><header>Blockchain service defined</header><text>In this paragraph, the term <term>blockchain service</term> means any activity relating to validating transactions on a blockchain system, providing security for a blockchain system, or other similar activity required for the ongoing operation of a blockchain system.</text></subparagraph></paragraph></subsection><subsection id="id88ce6145db0f48beb11b7f8402ee5775"><enum>(g)</enum><header>Market access requirements</header><paragraph id="id836beb0163144236a34b788e6647f57a"><enum>(1)</enum><header>Affiliated commodity brokers</header><text>A registered digital commodity exchange may permit an affiliated digital commodity broker to facilitate impartial access to the digital commodity exchange.</text></paragraph><paragraph id="idcd2a744bc85d4b60b7a26bd0b9cc7b76"><enum>(2)</enum><header>Additional requirements</header><text>The Commission shall, by rule, impose any additional requirements related to the operations and activities of the digital commodity exchange and an affiliated digital commodity broker necessary to protect market participants, promote fair and equitable trading on the digital commodity exchange, provide market participants with impartial access to the market, protect customer funds, and promote responsible innovation.</text></paragraph></subsection><subsection id="id2b56fdd2ae1f40668359ba9530517c5e"><enum>(h)</enum><header>Designation of chief compliance officer</header><paragraph id="id53366b43094b4ab798128936690a5a08"><enum>(1)</enum><header>In general</header><text>A digital commodity exchange shall designate an individual to serve as a chief compliance officer, who shall be solely responsible to the digital commodity exchange and not to any other affiliated entity or other entity regulated under this Act.</text></paragraph><paragraph id="idab6493cd6b204a47b7546692613fce6c"><enum>(2)</enum><header>Duties</header><text>The chief compliance officer of a digital commodity exchange shall—</text><subparagraph id="idbcd18a7ffb3047c0a38bb51ff2f9ab1c"><enum>(A)</enum><text>report directly to the board or to the senior officer of the exchange;</text></subparagraph><subparagraph id="id48931212a3d947368ff672d6f3c2cef1"><enum>(B)</enum><text>review compliance with the core principles in this section;</text></subparagraph><subparagraph id="id817d2d79cdbe40cd8bf4b605db8749f1"><enum>(C)</enum><text>in consultation with the board of the exchange, a body performing a function similar to that of a board, or the senior officer of the exchange, resolve any conflicts of interest that may arise;</text></subparagraph><subparagraph id="idcc7682848bbe4efea250a11cdceacd76"><enum>(D)</enum><text>establish and administer the policies and procedures required to be established pursuant to this section;</text></subparagraph><subparagraph id="id2adbb8a480234445939df384944248b8"><enum>(E)</enum><text>ensure compliance with this Act and the rules and regulations issued under this Act, including rules prescribed by the Commission pursuant to this section; and</text></subparagraph><subparagraph id="id3c9c1620855243d1aaae465cb0c7358a"><enum>(F)</enum><text>establish procedures for the remediation of noncompliance issues found during compliance office reviews, look-backs, internal or external audit findings, self-reported errors, or through validated complaints.</text></subparagraph></paragraph><paragraph id="idcffd083e7a5c476ba5b3d008ca1fd4a8"><enum>(3)</enum><header>Requirements for procedures</header><text>In establishing procedures under paragraph (2)(F), the chief compliance officer shall design the procedures to establish the handling, management response, remediation, retesting, and closing of noncompliance issues.</text></paragraph><paragraph id="idb9bb2df93b4541c3801c1c6dcd3d4af5"><enum>(4)</enum><header>Annual reports</header><subparagraph id="id67172c3f50694ede8ed580e34e1715b5"><enum>(A)</enum><header>In general</header><text>In accordance with rules that shall be prescribed by the Commission, the chief compliance officer of a digital commodity exchange shall annually prepare and sign a report that contains a description of—</text><clause id="idf073b8478a8a493088ed9f4f42daf693"><enum>(i)</enum><text>the compliance of the digital commodity exchange with this Act; and</text></clause><clause id="id10311c6b39fe4f709fd46e95dedca325"><enum>(ii)</enum><text>the policies and procedures, including the code of ethics and conflicts of interest policies, of the digital commodity exchange.</text></clause></subparagraph><subparagraph id="id73e2fcb5f8244b1b950aebe8ad606ae7"><enum>(B)</enum><header>Requirements</header><text>The chief compliance officer shall—</text><clause id="id4a43cd0b225a4c42af10f93b8da9bb3b"><enum>(i)</enum><text>submit each report described in subparagraph (A) with the appropriate financial report of the digital commodity exchange that is required to be submitted to the Commission pursuant to this section; and</text></clause><clause id="id3e1f565391ab46e4894b9e26f6219453"><enum>(ii)</enum><text>include in the report a certification that, under penalty of law, the report is accurate and complete.</text></clause></subparagraph></paragraph></subsection><subsection id="id2c7422f9f8994acdab2f358051e66039"><enum>(i)</enum><header>Appointment of trustee</header><paragraph id="id2ddef395182a4c7ba44bbccaf73f5e67"><enum>(1)</enum><header>In general</header><text>If a proceeding under section 5e results in the suspension or revocation of the registration of a digital commodity exchange, or if a digital commodity exchange withdraws from registration, the Commission, on notice to the digital commodity exchange, may apply to the appropriate United States district court for the judicial district in which the digital commodity exchange is located for the appointment of a trustee.</text></paragraph><paragraph id="id1476bdeea54742489869ec81e047477d"><enum>(2)</enum><header>Assumption of jurisdiction</header><text>If the Commission applies for appointment of a trustee under paragraph (1)—</text><subparagraph id="idc2df2aeb2c7a466dbbdda57cac41ec53"><enum>(A)</enum><text>the court may take exclusive jurisdiction over the digital commodity exchange and the records and assets of the digital commodity exchange, wherever located; and</text></subparagraph><subparagraph id="id182ae625776a418faf16ec286004d119"><enum>(B)</enum><text>if the court takes jurisdiction under subparagraph (A), the court shall appoint the Commission, or a person designated by the Commission, as trustee with power to take possession and continue to operate or terminate the operations of the digital commodity exchange in an orderly manner for the protection of customers, subject to such terms and conditions as the court may prescribe.</text></subparagraph></paragraph></subsection><subsection commented="no" id="id1d99f6e41799421d937e43baf2a2432b"><enum>(j)</enum><header>Exemptions</header><paragraph commented="no" id="id03bcbfd8eb3b4af793be6a7046c40b26"><enum>(1)</enum><header>In general</header><text>In order to promote responsible innovation and fair competition, or protect customers, the Commission may (on its own initiative or on application of the digital commodity exchange) exempt, either unconditionally or on stated terms or conditions or for stated periods and either retroactively or prospectively, or both, a digital commodity exchange from the requirements of this Act, if the Commission determines that—</text><subparagraph commented="no" id="id67b34c91774d45328c7f880617e894d5"><enum>(A)</enum><text>the exemption would be consistent with the public interest and the purposes of this Act; and</text></subparagraph><subparagraph commented="no" id="id2958a0f656e44b87bb0c3becc2c0feab"><enum>(B)</enum><text>the exemption will not have a material adverse effect on the ability of the Commission or the digital commodity exchange to discharge regulatory or self-regulatory duties under this Act.</text></subparagraph></paragraph><paragraph commented="no" id="ideace871fe7c041608888de841f7a5ba8"><enum>(2)</enum><header>Foreign exchanges</header><subparagraph commented="no" display-inline="no-display-inline" id="id441437c86c0641139ddac1233431c6be"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The Commission may exempt, conditionally or unconditionally, a digital commodity exchange from registration under this section if the Commission finds that the digital commodity exchange is subject to comparable, comprehensive supervision and regulation on a consolidated basis by the appropriate governmental authorities in the home country of the digital commodity exchange.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id45c5d7a18c444c4ab91ec903516a5462"><enum>(B)</enum><header>Transition period</header><text>The Commission may exempt a foreign digital commodity exchange from registration under this section for the 2-year period following the date of enactment of this section if—</text><clause commented="no" display-inline="no-display-inline" id="id044e9d1913d041dfaa6721f68dd7ae84"><enum>(i)</enum><text>the foreign digital commodity exchange—</text><subclause commented="no" display-inline="no-display-inline" id="id5609e9e2fe1044cabbba65d072c20188"><enum>(I)</enum><text>keeps the books and records of the foreign digital commodity exchange open to inspection and examination by any representative of the Commission upon reasonable request; and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="id41c156e999554f229b624307c788c336"><enum>(II)</enum><text>reports to the Commission, in a form and manner acceptable to the Commission, such information as the Commission determines to be reasonably necessary or appropriate for the Commission to perform the duties of the Commission under this Act; and</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="id99a1d5c6dd904d8a87527b111d252f60"><enum>(ii)</enum><text display-inline="yes-display-inline">the appropriate government authorities in the home country of the foreign digital commodity exchange—</text><subclause commented="no" display-inline="no-display-inline" id="id0bdb43a9f3794d0f95753196751e74da"><enum>(I)</enum><text display-inline="yes-display-inline">certify that the foreign digital commodity exchange—</text><item commented="no" display-inline="no-display-inline" id="id396b7d14aad344278082c73c84293656"><enum>(aa)</enum><text>is subject to—</text><subitem commented="no" display-inline="no-display-inline" id="id22c5f8e590104c71b42a82e6969961e8"><enum>(AA)</enum><text display-inline="yes-display-inline">supervision and regulation on a consolidated basis by a governmental authority in its home country, including requirements relating to beneficial ownership, control persons, governance, risk management, financial reporting, and market integrity; and</text></subitem><subitem commented="no" display-inline="no-display-inline" id="idf41c8602cb544977a77a1d2e7ae4147a"><enum>(BB)</enum><text display-inline="yes-display-inline">clear and enforceable managerial and supervisory responsibility at the consolidated level; and</text></subitem></item><item commented="no" display-inline="no-display-inline" id="ida86d8af92b3247689597ee381e4c875c"><enum>(bb)</enum><text display-inline="yes-display-inline">is in good standing and not subject to unresolved, material enforcement actions relating to market integrity, customer protection, or financial crime; and</text></item></subclause><subclause commented="no" display-inline="no-display-inline" id="id2f3f4dcf52c24c668d62c89a769a39e8"><enum>(II)</enum><text>enter into a memorandum of understanding with the Commission in which those appropriate government authorities agree to provide to the Commission information regarding the foreign digital commodity exchange that the Commission requests during that 2-year period.</text></subclause></clause></subparagraph><subparagraph id="id651fad0b2b304aa3822cb00e6380b3c1"><enum>(C)</enum><header>Suspension or revocation</header><text>The Commission may suspend or revoke an exemption under subparagraph (B) if the Commission determines that the foreign digital commodity exchange or the appropriate government authority in the home country of the foreign digital commodity exchange fails to substantially comply with the requirements described in subparagraph (B).</text></subparagraph></paragraph></subsection><subsection id="id88084a4e24ec4549addabb6955a0afd7"><enum>(k)</enum><header>Federal preemption</header><paragraph commented="no" display-inline="no-display-inline" id="id91c3d12f11a446318d25bdfb111b8f35"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Commission shall have exclusive jurisdiction over any digital commodity exchange registered under this section with respect to activities and transactions subject to this Act.</text></paragraph><paragraph id="id15c21617e4224c169101e54553fa9e9a"><enum>(2)</enum><header>Preservation of authority</header><text>Nothing in this subsection shall affect the ability of a State or local agency to investigate and bring enforcement actions regarding fraud, deceit, or unfair or deceptive acts or practices.</text></paragraph></subsection><subsection id="id14808b0fcb1c45dd81b9b248d516e54a"><enum>(l)</enum><header>Regulations</header><text>The Commission shall prescribe such rules and regulations as are appropriate for the implementation of this section.</text></subsection><subsection id="idd81a73309fe843529089a5030c41bdaf"><enum>(m)</enum><header>Customer defined</header><text>In this section, the term <term>customer</term> means any person that maintains an account for the trading of digital commodities directly with a digital commodity exchange (other than a person that is owned or controlled, directly or indirectly, by the digital commodity exchange) for its own behalf or on behalf of any other person.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="id26958075e3f64c02ba1899c6e34bf3c0"><enum>(b)</enum><header>Private rights of action</header><text>Section 22 of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/25">7 U.S.C. 25</external-xref>) is amended—</text><paragraph commented="no" id="id29d2cad234b041068f31c4bea7a2d33c"><enum>(1)</enum><text>in subsection (a)(1)—</text><subparagraph commented="no" id="idb204e58945d74e2d9c2dd91e00f5d953"><enum>(A)</enum><text>in subparagraph (B)—</text><clause commented="no" id="idfd46b61d909b4eff896001e561ce7682"><enum>(i)</enum><text>by striking <quote>commodity) or any swap;</quote> and inserting <quote>commodity), any swap, or any digital commodity transaction;</quote>; and</text></clause><clause commented="no" id="id61e4283586dd4086b95b0e62a3d53be8"><enum>(ii)</enum><text>by striking <quote>to make such contract</quote> and all that follows through the semicolon at the end and inserting <quote>to make such contract, any swap, or any digital commodity transaction;</quote>;</text></clause></subparagraph><subparagraph commented="no" id="id34e3fd8a4ce74fdebda11f4f671125f3"><enum>(B)</enum><text>in subparagraph (C), by conforming the margin of clause (iv) to the margin of clauses (i) through (iii); and</text></subparagraph><subparagraph commented="no" id="ida9c0dd0f04fd44e2be0ce2d9b200c9fc"><enum>(C)</enum><text>in subparagraph (D)—</text><clause commented="no" id="idc5b60851178f4c85b975b6b148b044d0"><enum>(i)</enum><text>in the matter preceding clause (i), by striking <quote>subparagraph (B) hereof or swap</quote> and inserting <quote>subparagraph (B), a swap, or a digital commodity</quote>; and</text></clause><clause commented="no" id="id8688cbb98b4d43c7bb932655efdd4c9f"><enum>(ii)</enum><text>in clause (ii), by striking <quote>any such contract or swap</quote> and inserting <quote>any such contract, swap, or digital commodity</quote>; and</text></clause></subparagraph></paragraph><paragraph commented="no" id="id4ca81f8903794ad09036151e76eb10d9"><enum>(2)</enum><text>in subsection (b)(1)(A), by inserting <quote>5i,</quote> after <quote>5h,</quote>.</text></paragraph></subsection></section><section id="id2114e20e3c55456ab85f808d0bbb31f6"><enum>205.</enum><header>Registration and regulation of digital commodity brokers and dealers</header><text display-inline="no-display-inline">The Commodity Exchange Act is amended by inserting after section 4t (<external-xref legal-doc="usc" parsable-cite="usc/7/6t">7 U.S.C. 6t</external-xref>) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idd898760d86dd47d19a0e9109e78dbcc5"><section id="idd5fda91ef5234785bfe92ba5fa4f2779"><enum>4u.<?LEXA-Enum 4u.?></enum><header>Registration and regulation of digital commodity brokers and dealers</header><subsection id="idd69a462f433d48c2815eb604790775c8"><enum>(a)</enum><header>Registration</header><paragraph id="iddcda6349ac044303bc609b527f7311a1"><enum>(1)</enum><header>Requirement</header><text>It shall be unlawful for any person to act as a digital commodity broker or digital commodity dealer unless the person is registered as such with the Commission.</text></paragraph><paragraph id="id804984ce73714121b52893b8b4a26800"><enum>(2)</enum><header>Exemptions</header><text>A person acting as a digital commodity broker or digital commodity dealer shall not be required to register under this section if the person—</text><subparagraph id="idf311d6f62853476bae3ff4abe92c7c24"><enum>(A)</enum><text>engages in no more than a de minimis amount of brokering or dealing activity, as the Commission may determine by rule or regulation, in a digital commodity;</text></subparagraph><subparagraph id="id5b55a7afae124f3e850a92b2601183a6"><enum>(B)</enum><text>serves only customers in a single State or territory; or</text></subparagraph><subparagraph id="ida840ddc9c278497a8cc4452ae63d9f16"><enum>(C)</enum><text>is already registered as a futures commission merchant, provided that the person shall—</text><clause commented="no" display-inline="no-display-inline" id="idf4b42467005240909b45a28f56b262cb"><enum>(i)</enum><text display-inline="yes-display-inline">provide written notice to the Commission and to any self-regulatory organization of which it is a member of its intention to act as a digital commodity broker; and </text></clause><clause commented="no" display-inline="no-display-inline" id="id78590c134b9944859dfbb2fecf777c15"><enum>(ii)</enum><text display-inline="yes-display-inline">comply with all other provisions of this Act and the rules promulgated thereunder and any self-regulatory organization rules as they apply to a digital commodity broker.</text></clause></subparagraph></paragraph><paragraph id="idf9dacc8eeff2423ea0c31de52367e304"><enum>(3)</enum><header>Additional registration</header><subparagraph id="id0e881b3ffed7473faf029653ae2c8618"><enum>(A)</enum><header>Rules</header><text>In order to foster the development of fair and orderly markets, protect customers, and promote responsible innovation, the Commission shall—</text><clause id="id76e2cbc465414cc690fd1a1c690a9f48"><enum>(i)</enum><text>prescribe rules to exempt an entity registered with the Commission under more than 1 section of this Act from duplicative, conflicting, or unduly burdensome provisions of this Act and the rules under this Act;</text></clause><clause id="ide5b2bfd6d7d64d2485a93528a581db75"><enum>(ii)</enum><text>prescribe rules establishing requirements for the identification, mitigation, and resolution of conflicts of interest among and across affiliated entities or entities with multiple registrations under this Act, including conflicts of interest related to vertically integrated market structures and their varying responsibilities and activities; and</text></clause><clause id="id3b962eadb3cd45ee87bf99e567913a3e"><enum>(iii)</enum><text>after an analysis of the risks and benefits, prescribe rules to provide for portfolio margining in accordance with section 103(e) of the <short-title>Digital Commodity Intermediaries Act</short-title>.</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8d33b8067fe14c47a31667024f0bd57c"><enum>(B)</enum><header>Membership in a registered futures association</header><text display-inline="yes-display-inline">Any person required to be registered as a digital commodity broker or digital commodity dealer under this section shall become and remain a member of a registered futures association.</text></subparagraph><subparagraph id="iddb2d393c14fa4105804cf7978b02d8f3"><enum>(C)</enum><header>Harmonization</header><text>In prescribing rules for digital commodity brokers or digital commodity dealers, the Commission shall, to the greatest extent feasible, seek to avoid duplication, inconsistencies, or burdens for a person registered in multiple capacities.</text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id4a8459ce74c9462ba80773976ea46070"><enum>(b)</enum><header>Requirements</header><paragraph id="id2fb36b13bdda4ae8bc8ada707469320f"><enum>(1)</enum><header>In general</header><text>A person shall register as a digital commodity broker or digital commodity dealer by filing a registration application with the Commission.</text></paragraph><paragraph id="id54ac5a45b7b144779686a9379a80328a"><enum>(2)</enum><header>Contents</header><subparagraph id="ida6111af6c0a44a398a4e92e383748b1e"><enum>(A)</enum><header>In general</header><text>The application under paragraph (1) shall be made in such form and manner as is prescribed by the Commission, and shall contain such information as the Commission considers necessary concerning the business in which the applicant is or will be engaged.</text></subparagraph><subparagraph id="idb559b1706abb4ab3aadd0dd6f0a49cb3"><enum>(B)</enum><header>Continual reporting</header><text>A person that is registered as a digital commodity broker or digital commodity dealer shall continue to submit to the Commission reports that contain such information pertaining to the business of the person as the Commission may require.</text></subparagraph></paragraph><paragraph id="idfa1ac6481e834751b898738ab3dd53c3"><enum>(3)</enum><header>Statutory disqualification</header><text>Except to the extent otherwise specifically provided by rule, regulation, or order, it shall be unlawful for a digital commodity broker or digital commodity dealer to permit any person who is associated with a digital commodity broker or a digital commodity dealer and who is subject to a statutory disqualification to effect or be involved in effecting a contract of sale of a digital commodity on behalf of the digital commodity broker or the digital commodity dealer, respectively, if the digital commodity broker or digital commodity dealer, respectively, knew, or in the exercise of reasonable care should have known, of the statutory disqualification.</text></paragraph></subsection><subsection id="id98b37c297b7f4f42a84059b1d4ae251d"><enum>(c)</enum><header>Capital requirements</header><paragraph id="id08b2863406c84a4098c20d34911b7887"><enum>(1)</enum><header>In general</header><text>Each digital commodity broker and digital commodity dealer shall meet such minimum capital requirements as the Commission may prescribe to address the risks associated with digital commodity trading and to ensure that the digital commodity broker or digital commodity dealer, respectively, is able, at all times, to meet and continue to meet the obligations of such a registrant.</text></paragraph><paragraph id="ide06956ec129d42329e11f4064d06bcb7"><enum>(2)</enum><header>Futures commission merchants and other dealers</header><text>Each futures commission merchant, introducing broker, digital commodity broker, digital commodity dealer, broker, and dealer shall maintain sufficient capital to comply with the stricter of any applicable capital requirements to which the futures commission merchant, introducing broker, digital commodity broker, digital commodity dealer, broker, or dealer, respectively, is subject under this Act or the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78a">15 U.S.C. 78a et seq.</external-xref>).</text></paragraph></subsection><subsection id="id524f748a50c24758898205ae3cd3fd20"><enum>(d)</enum><header>Digital commodity trading not readily susceptible to manipulation</header><text>A digital commodity broker or digital commodity dealer may only offer trades in digital commodities that are not readily susceptible to manipulation.</text></subsection><subsection id="ida931ec5e01394be7b2d3dfe30e111e37"><enum>(e)</enum><header>Execution</header><text>The Commission shall prescribe rules and regulations regarding the execution of digital commodity transactions by a digital commodity broker or a digital commodity dealer with or on behalf of customers, which shall address—</text><paragraph id="idf15cab377a894a17bd03701b600dfa52"><enum>(1)</enum><text>fair and objective pricing;</text></paragraph><paragraph id="idf289b6b519ff4514af68138a815f7c0a"><enum>(2)</enum><text>the recording, maintaining, and disclosure of information;</text></paragraph><paragraph id="id59566c2a1bdc4dcfab666a1b016d00c7"><enum>(3)</enum><text>the protection of the price discovery process; and</text></paragraph><paragraph id="idcd11a523a98d4abbaec1f97e53db151c"><enum>(4)</enum><text>requirements specific to digital commodity transactions with or on behalf of a customer who is not an eligible contract participant.</text></paragraph></subsection><subsection id="id4dbab42bf22048e78b3d78584429a466"><enum>(f)</enum><header>Reporting and recordkeeping</header><text>Each digital commodity broker and digital commodity dealer shall—</text><paragraph id="idc9b4690a059147b8987d268b20fa7226"><enum>(1)</enum><text>make such reports as are required by the Commission by rule or regulation regarding the transactions, positions, and financial condition of the digital commodity broker or digital commodity dealer, respectively;</text></paragraph><paragraph id="id6d40c9ce906642d0add508036a14e547"><enum>(2)</enum><text>keep books and records in such form and manner and for such period as shall be prescribed by the Commission by rule or regulation; and</text></paragraph><paragraph id="id75f6100a494c462db5bd2e25ed6dc024"><enum>(3)</enum><text>keep the books and records open to inspection and examination by any representative of the Commission.</text></paragraph></subsection><subsection id="id605dc680d27d492db7db4805c049ef1a"><enum>(g)</enum><header>Daily trading records</header><paragraph id="id68db6962e5314d5d91155e54d2cfbb79"><enum>(1)</enum><header>In general</header><text>Each digital commodity broker and digital commodity dealer shall maintain daily trading records of the transactions of the digital commodity broker or digital commodity dealer, respectively, and all related records (including related forward or derivatives transactions) and recorded communications, including electronic mail, instant messages, and recordings of telephone calls, for such period as the Commission shall require by rule or regulation.</text></paragraph><paragraph id="id97dc8d70736440e28732c69e3cad5238"><enum>(2)</enum><header>Information requirements</header><text>The daily trading records described in paragraph (1) shall include such information as the Commission shall require by rule or regulation.</text></paragraph><paragraph id="ideadacede89254ac18256d253b2b873c4"><enum>(3)</enum><header>Counterparty records</header><text>Each digital commodity broker and digital commodity dealer shall maintain daily trading records for each customer or counterparty in a manner and form that is identifiable with each digital commodity transaction.</text></paragraph><paragraph id="id87afec6106de4576b44d7216a63cfb36"><enum>(4)</enum><header>Audit trail</header><text>Each digital commodity broker and digital commodity dealer shall maintain a complete audit trail for conducting comprehensive and accurate trade reconstructions.</text></paragraph></subsection><subsection id="id37a8da6cb4154bdd8f21e15d74317c17"><enum>(h)</enum><header>Business conduct standards</header><paragraph id="id977a58e88f8948f3a2ee6ba3f7d366f9"><enum>(1)</enum><header>In general</header><text>Each digital commodity broker and digital commodity dealer shall conform with such business conduct standards as the Commission, by rule or regulation, shall prescribe related to—</text><subparagraph id="idf79bae359eb34ccbbaef6137832fecf9"><enum>(A)</enum><text>fraud, manipulation, and other abusive practices involving spot digital commodity transactions (including transactions that are offered but not entered into);</text></subparagraph><subparagraph id="id8d86ca6135d749b2bf2b5eb5f0e3f1d6"><enum>(B)</enum><text>diligent supervision of the business of the registered digital commodity broker or digital commodity dealer, respectively; and</text></subparagraph><subparagraph id="id770d3c0b235644ccba80e6d25e6194ee"><enum>(C)</enum><text>such other matters as the Commission determines appropriate.</text></subparagraph></paragraph><paragraph id="ida0c1906c143540798a6449fc85ecd9c4"><enum>(2)</enum><header>Business conduct requirements</header><text>The Commission shall, by rule, prescribe business conduct requirements that—</text><subparagraph id="id0f289090e4f045539c26abefb7b89b44"><enum>(A)</enum><text>require disclosure by a registered digital commodity broker and registered digital commodity dealer to any counterparty to the transaction (other than an eligible contract participant) of—</text><clause id="iddf398dccd06c4f2b96b686bb9a3021da"><enum>(i)</enum><text>information about the material risks and characteristics of the digital commodity; and</text></clause><clause id="idbc3468aee45942a38f6e4d18a6e17106"><enum>(ii)</enum><text>information about the material risks and characteristics of the transaction;</text></clause></subparagraph><subparagraph id="id205924677b474992b7a53c7e6ad36cb0"><enum>(B)</enum><text>establish a duty for such a digital commodity broker and such a digital commodity dealer to communicate in a fair and balanced manner based on principles of fair dealing and good faith;</text></subparagraph><subparagraph id="id3886517b4ab24898b2e285cc9973d724"><enum>(C)</enum><text>establish standards governing digital commodity broker and digital commodity dealer marketing and advertising, including testimonials and endorsements;</text></subparagraph><subparagraph id="id2f02385edd244bc7a39765228bd7c5d0"><enum>(D)</enum><text>establish a duty for digital commodity brokers and digital commodity dealers to provide fair, transparent, and objective pricing; and</text></subparagraph><subparagraph id="id1ac3112a6c3d47bab7eb8ec9a8c20001"><enum>(E)</enum><text>establish such other standards and requirements as the Commission may determine are appropriate for the protection of customers.</text></subparagraph></paragraph><paragraph id="id67d1cec19403460dbfdc4e58c522aeb9"><enum>(3)</enum><header>Prohibition on fraudulent practices</header><text>It shall be unlawful for a digital commodity broker or digital commodity dealer to—</text><subparagraph id="id576d3e54d66a4564b211df5e39b733c7"><enum>(A)</enum><text>employ any device, scheme, or artifice to defraud any customer or counterparty;</text></subparagraph><subparagraph id="id6e08e69a519843dd835eec938ddbfad3"><enum>(B)</enum><text>engage in any transaction, practice, or course of business that operates as a fraud or deceit on any customer or counterparty; or</text></subparagraph><subparagraph id="id4727bd6290fe40f2a3bdc187c1e6249b"><enum>(C)</enum><text>engage in any act, practice, or course of business that is fraudulent, deceptive, or manipulative.</text></subparagraph></paragraph></subsection><subsection id="id428b13480b214f35b2ad7a0d9d887b4f"><enum>(i)</enum><header>Duties</header><paragraph id="idc3787a97c4fb43c7b3667d4bf2314119"><enum>(1)</enum><header>Risk management procedures</header><text>Each digital commodity broker and digital commodity dealer shall establish robust and professional risk management systems adequate for managing the day-to-day business of the digital commodity broker or digital commodity dealer, respectively.</text></paragraph><paragraph id="id8061e57e43eb4a3ba04ed3fe64abccbb"><enum>(2)</enum><header>Disclosure of general information</header><text>Each digital commodity broker and digital commodity dealer shall disclose to the Commission information concerning—</text><subparagraph id="ide9e5915cc7644e9ca33d1dceee3f4160"><enum>(A)</enum><text>the terms and conditions of the transactions of the digital commodity broker or digital commodity dealer, respectively;</text></subparagraph><subparagraph id="ide52b4d9a96f94cd9842f725dcf45d0ad"><enum>(B)</enum><text>the trading operations, mechanisms, and practices of the digital commodity broker or digital commodity dealer, respectively;</text></subparagraph><subparagraph id="id9f3f6e6b8bdf44ae848786f57b2e14fc"><enum>(C)</enum><text>financial integrity protections relating to the activities of the digital commodity broker or digital commodity dealer, respectively; and</text></subparagraph><subparagraph id="id329d9c554f7f4a13b1d414f2967200cc"><enum>(D)</enum><text>other information relevant to trading in digital commodities by the digital commodity broker or digital commodity dealer, respectively.</text></subparagraph></paragraph><paragraph id="id44e5b50078a1445690f5265dd5505d4b"><enum>(3)</enum><header>Ability to obtain information</header><text>Each digital commodity broker and digital commodity dealer shall—</text><subparagraph id="id905d5db3ee2448ac9843eaa92527a9f5"><enum>(A)</enum><text>establish and enforce internal systems and procedures to obtain any necessary information to perform any of the functions described in this section; and</text></subparagraph><subparagraph id="id87927efe05fb4f0bbaef199a1828e1f4"><enum>(B)</enum><text>provide the information to the Commission, on request.</text></subparagraph></paragraph><paragraph id="ide9339d3075694696a153e5518f839bcb"><enum>(4)</enum><header>Conflicts of interest</header><text>Each digital commodity broker and digital commodity dealer shall establish, maintain, and enforce written policies and procedures reasonably designed, taking into consideration the nature of the business of the person, as a result of multiple registrations under this Act—</text><subparagraph id="id9eab5527973f482b9855356d72b58416"><enum>(A)</enum><text>to establish a process for resolving conflicts of interest;</text></subparagraph><subparagraph id="idd822be9f71af4bd4b647059e181cd9f6"><enum>(B)</enum><text>to require disclosure by a digital commodity broker or digital commodity dealer of any material incentives or conflicts of interest that the digital commodity broker or digital commodity dealer is unable to resolve, as the Commission may determine to be appropriate; and</text></subparagraph><subparagraph id="id0f61d0224f424e80af671210f6d48759"><enum>(C)</enum><text>to address such other issues as the Commission determines by rule or regulation to be necessary in the public interest.</text></subparagraph></paragraph><paragraph id="id920ee4aab3894ef992b3454f84920a88"><enum>(5)</enum><header>Antitrust considerations</header><text>Unless necessary or appropriate to achieve the purposes of this Act, a digital commodity broker or digital commodity dealer shall not—</text><subparagraph id="id1bc0405d36fc4861b184058e7300d20f"><enum>(A)</enum><text>adopt any process or take any action that results in any unreasonable restraint of trade; or</text></subparagraph><subparagraph id="id1d49549ba3204df2a8a40812794642ad"><enum>(B)</enum><text>impose any material anticompetitive burden on trading or clearing.</text></subparagraph></paragraph></subsection><subsection id="idb43bf39af4664622bb9804b6f3921780"><enum>(j)</enum><header>Designation of chief compliance officer</header><paragraph id="idd9e3bf9b4dc74a09a636b8642e9e6ecd"><enum>(1)</enum><header>In general</header><text>Each digital commodity broker and digital commodity dealer shall designate an individual to serve as a chief compliance officer, who shall be solely responsible to the digital commodity broker or digital commodity dealer and not to any other affiliated entity or other entity regulated under this Act.</text></paragraph><paragraph id="id181b0a58574d48828034c619ad1ba573"><enum>(2)</enum><header>Duties</header><text>The chief compliance officer of a registered digital commodity broker or a registered digital commodity dealer shall—</text><subparagraph id="idae48cfb9b6814f828493a1c051ce8b2e"><enum>(A)</enum><text>report directly to the board or to the senior officer of the registered digital commodity broker or registered digital commodity dealer;</text></subparagraph><subparagraph id="id1d6658fecab84431a03943bdc13bed29"><enum>(B)</enum><text>review the compliance of the registered digital commodity broker or registered digital commodity dealer with respect to the registered digital commodity broker and registered digital commodity dealer requirements described in this section;</text></subparagraph><subparagraph id="idede015abd3104e6b8eb3a72867042038"><enum>(C)</enum><text>in consultation with the board of directors, a body performing a function similar to the board, or the senior officer of the organization, resolve any conflicts of interest that may arise;</text></subparagraph><subparagraph id="id0e6ad8811b414996bdf785ab0a14a6e8"><enum>(D)</enum><text>be responsible for administering each policy and procedure that is required to be established pursuant to this section;</text></subparagraph><subparagraph id="id820c318649b04fd680a13456ce2f4d75"><enum>(E)</enum><text>ensure compliance with this Act (including regulations), including each rule prescribed by the Commission under this section;</text></subparagraph><subparagraph id="idfccb42ac412a445ba86608b02976bf07"><enum>(F)</enum><text>establish procedures for the remediation of noncompliance issues identified by the chief compliance officer through any—</text><clause id="idd91c0694513f4ac0821af1fc4c2955cb"><enum>(i)</enum><text>compliance office review;</text></clause><clause id="id24266be2e86d4e1889be6c71da617620"><enum>(ii)</enum><text>look-back;</text></clause><clause id="id7fcc32b8961c4369ab31027fe21ed359"><enum>(iii)</enum><text>internal or external audit finding;</text></clause><clause id="id8b41b70a31d0406f8b32982d8236495a"><enum>(iv)</enum><text>self-reported error; or</text></clause><clause id="ida63a005c179541019e0045547808bcc4"><enum>(v)</enum><text>validated complaint; and</text></clause></subparagraph><subparagraph id="id4ceb5e939bb846fd86d0aad2c572cd87"><enum>(G)</enum><text>establish and follow appropriate procedures for the handling, management response, remediation, retesting, and closing of noncompliance issues.</text></subparagraph></paragraph><paragraph id="id66bc2213daec4c088c4cbc0f5572d52d"><enum>(3)</enum><header>Annual reports</header><subparagraph id="iddf0b25894d274e8aa7aa0bcaae641086"><enum>(A)</enum><header>In general</header><text>In accordance with rules that shall be prescribed by the Commission, the chief compliance officer of a registered digital commodity broker or a registered digital commodity dealer shall annually prepare and sign a report that contains a description of—</text><clause id="idd9a9993cf1a24d288eb1cef66d8fd292"><enum>(i)</enum><text>the compliance of the registered digital commodity broker or registered digital commodity dealer with this Act (including regulations); and</text></clause><clause id="idcf69be9a1e3d41399dd8cb29c690eb1d"><enum>(ii)</enum><text>each policy and procedure of the registered digital commodity broker or registered digital commodity dealer followed by the chief compliance officer (including the code of ethics and conflict of interest policies).</text></clause></subparagraph><subparagraph id="idb0f3ff19aee44d5684519c6b7d57a5bd"><enum>(B)</enum><header>Requirements</header><text>The chief compliance officer shall ensure that a compliance report under subparagraph (A)—</text><clause id="id0f0eeee7caf44c2f83144894eb34fe1d"><enum>(i)</enum><text>accompanies each appropriate financial report of the registered digital commodity broker or registered digital commodity dealer that is required to be furnished to the Commission pursuant to this section; and</text></clause><clause id="idb7908108de144d5fbe15a70ecabc30d7"><enum>(ii)</enum><text>includes a certification that, under penalty of law, the compliance report is accurate and complete.</text></clause></subparagraph></paragraph></subsection><subsection id="idfe90f98217ea47a3ae63a0c94f7f5928"><enum>(k)</enum><header>Segregation of digital commodities</header><paragraph id="id544cc17fe3924a8492634947921f1253"><enum>(1)</enum><header>Holding of customer assets</header><subparagraph id="id0c7aa9dc8dd949e39776849f17f203f4"><enum>(A)</enum><header>In general</header><text>Each digital commodity broker and digital commodity dealer shall hold customer money, assets, and property in a manner to minimize the risk of loss to the customer or unreasonable delay in customer access to the money, assets, and property of the customer.</text></subparagraph><subparagraph id="id99cbf94e8fd74c2dbdd7cc932ea37458"><enum>(B)</enum><header>Qualified digital asset custodian</header><text>Each digital commodity broker and digital commodity dealer shall hold in a qualified digital asset custodian each unit of a digital asset that is—</text><clause id="id15120a7cd3244804a7d8218b14dd203b"><enum>(i)</enum><text>the property of a customer or counterparty of the digital commodity broker or digital commodity dealer, respectively;</text></clause><clause id="id0c5defaad4d2437eb82fc255c75371d5"><enum>(ii)</enum><text>required to be held by the digital commodity broker or digital commodity dealer under subsection (c); or</text></clause><clause id="id1e34aac340fa4b9b94373f62b74ab4f6"><enum>(iii)</enum><text>otherwise so required by the Commission to reasonably protect customers and customer assets or promote the public interest.</text></clause></subparagraph></paragraph><paragraph id="idf64bc6f2f837486cb40bb4e91c575a5e"><enum>(2)</enum><header>Segregation of funds</header><subparagraph id="id634d161c606d491c9868734a4262f826"><enum>(A)</enum><header>In general</header><text>Each digital commodity broker and digital commodity dealer shall treat and deal with all money, assets, and property that is received by the digital commodity broker or digital commodity dealer, or accrues to a customer as the result of trading in digital commodities, as belonging to the customer.</text></subparagraph><subparagraph id="id0c4154430b5947f692882937bf22de84"><enum>(B)</enum><header>Commingling prohibited</header><clause id="idc774b84d6cd84a3caac29c3bd261a256"><enum>(i)</enum><header>In general</header><text>Except as provided in clause (ii), each digital commodity broker and digital commodity dealer shall separately account for money, assets, and property of a digital commodity customer, and shall not commingle any such money, assets, or property with the funds of the digital commodity broker or digital commodity dealer, respectively, or use any such money, assets, or property to margin, secure, or guarantee any trades or accounts of any customer or person other than the person for whom the money, assets, or property are held.</text></clause><clause id="idbd61f0330a3c41b98b85fc27c7096aa6"><enum>(ii)</enum><header>Exceptions</header><subclause id="id41165a1ac4e84c2f8c8b47f4ada61801"><enum>(I)</enum><header>Use of funds</header><item id="id7491b06d902241afbba9ea697a89b3d5"><enum>(aa)</enum><header>In general</header><text>A digital commodity broker or digital commodity dealer may, for convenience, commingle and deposit in the same account or accounts with any bank, trust company, derivatives clearing organization, or qualified digital asset custodian money, assets, and property of customers.</text></item><item id="ida589c12d770144e49b81c9b32261b1b8"><enum>(bb)</enum><header>Withdrawal</header><text>The share of the money, assets, and property described in item (aa) as in the normal course of business shall be necessary to margin, guarantee, secure, transfer, adjust, or settle a contract of sale of a digital commodity with a registered entity may be withdrawn and applied to such purposes, including the payment of commissions, brokerage, interest, taxes, storage, and other charges, lawfully accruing in connection with the contract.</text></item></subclause><subclause id="id4824c1f8a6c240dcbeb35807c9025f6f"><enum>(II)</enum><header>Commission action</header><text>In accordance with such terms and conditions as the Commission may prescribe by rule, regulation, or order, any money, assets, or property of the customers of a digital commodity broker or digital commodity dealer may be commingled and deposited in customer accounts with any other money, assets, or property received by the digital commodity broker or digital commodity dealer, respectively, and required by the Commission to be separately accounted for and treated and dealt with as belonging to the customer of the digital commodity broker or digital commodity dealer, respectively.</text></subclause></clause></subparagraph></paragraph><paragraph id="id0370f0fa7dbf49dda0fbc3f15275f7c7"><enum>(3)</enum><header>Permitted investments</header><text>Money described in paragraph (2) may be invested in obligations of the United States, in general obligations of any State or of any political subdivision of a State, in obligations fully guaranteed as to principal and interest by the United States, or in any high-quality liquid asset that the Commission may by rule or regulation allow.</text></paragraph><paragraph id="id0f14c9ad1ea84d409ba04878bdeea8a2"><enum>(4)</enum><header>Customer protection during bankruptcy</header><subparagraph id="idb54afe76b0594ee8a4fdae1200b8819c"><enum>(A)</enum><header>Customer property</header><text>All assets held on behalf of a customer by a digital commodity broker or digital commodity dealer, and all money, assets, and property of any customer received by a digital commodity broker or digital commodity dealer for trading or custody, or to facilitate, margin, guarantee, or secure contracts of sale of a digital commodity (including money, assets, or property accruing to the customer as the result of the transactions), shall be considered customer property for purposes of section 761 of title 11, United States Code.</text></subparagraph><subparagraph id="id6a06ce1390a14b67a8e99277acf0d795"><enum>(B)</enum><header>Transactions</header><text>A purchase, sale, loan of, margin loan or other extension of credit on, repurchase, reverse repurchase, or other transaction involving a unit of a digital commodity occurring with a digital commodity broker or digital commodity dealer shall be considered—</text><clause commented="no" display-inline="no-display-inline" id="id378e05a84a584950a4ac6299c21fcb19"><enum>(i)</enum><text display-inline="yes-display-inline">a <quote>contract for the purchase or sale of a commodity for future delivery on, or subject to the rules of, a contract market or board of trade</quote> for purposes of the definition of a <quote>commodity contract</quote> in section 761 of title 11, United States Code, section 11 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1821">12 U.S.C. 1821</external-xref>), and section 210 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (<external-xref legal-doc="usc" parsable-cite="usc/12/5390">12 U.S.C. 5390</external-xref>); and</text></clause><clause commented="no" display-inline="no-display-inline" id="id31056ce10d9c460f8667c0ce89879a4c"><enum>(ii)</enum><text display-inline="yes-display-inline">a <quote>commodity contract</quote> for purposes of section 5(b)(2)(C) of the Securities Investor Protection Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/15/78eee">15 U.S.C. 78eee(b)(2)(C)</external-xref>). </text></clause></subparagraph><subparagraph id="id74eb0a121dfc42d3b4926d26f8d9d71f"><enum>(C)</enum><header>Brokers and dealers</header><text>A digital commodity broker and a digital commodity dealer shall be considered a futures commission merchant for purposes of section 761 of title 11, United States Code, section 11 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1821">12 U.S.C. 1821</external-xref>), and section 210 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (<external-xref legal-doc="usc" parsable-cite="usc/12/5390">12 U.S.C. 5390</external-xref>).</text></subparagraph><subparagraph commented="no" id="ida0d3b48348e342ca8240f004a8e99ecd"><enum>(D)</enum><header>Assets removed from segregation</header><text>Assets removed from segregation due to a customer election under paragraph (6) shall not be considered customer property for purposes of section 761 of title 11, United States Code.</text></subparagraph></paragraph><paragraph id="idca4a8f3beb4b4d9894e5e2a301e7b5a2"><enum>(5)</enum><header>Misuse of customer property</header><subparagraph id="idf4325e1842654bf0a6619df7a02654ff"><enum>(A)</enum><header>In general</header><text>It shall be unlawful—</text><clause id="id6ee7b445dbe3472cb6f1ca9fe7be903b"><enum>(i)</enum><text>for any digital commodity broker or digital commodity dealer that has received any customer money, assets, or property for custody to dispose of, or use any such money, assets, or property as belonging to the digital commodity broker or digital commodity dealer, respectively, or any person other than a customer of the digital commodity broker or digital commodity dealer, respectively; or</text></clause><clause id="id78e673e5b77348ac9a04de7e074e0f56"><enum>(ii)</enum><text>for any other person, including any depository, digital commodity exchange, other digital commodity broker, other digital commodity dealer, or digital asset custodian that has received any customer money, assets, or property for deposit, to hold, dispose of, or use any such money, assets, or property, as belonging to the depositing digital commodity broker or digital commodity dealer or any person other than the customers of the digital commodity broker or digital commodity dealer, respectively.</text></clause></subparagraph><subparagraph id="iddbf94fa727f14549bbbf5bf1bce617f8"><enum>(B)</enum><header>Use further defined</header><text>For purposes of this section, <quote>use</quote> of a digital commodity includes utilizing any unit of a digital asset to participate in a blockchain service defined in paragraph (6) or a decentralized governance system associated with the digital commodity or the blockchain system to which the digital commodity relates in any manner other than that expressly directed by the customer from whom the unit of a digital commodity was received.</text></subparagraph></paragraph><paragraph commented="no" id="id5cc4839bf69f4913ba643fac3b6b4be2"><enum>(6)</enum><header>Participation in blockchain services</header><subparagraph commented="no" id="id1f7e2bf8c24b40638e8146dc0b5b773f"><enum>(A)</enum><header>Use of funds</header><text>A digital commodity broker or digital commodity dealer (or a designee of a digital commodity broker or digital commodity dealer) may use a unit of a digital commodity belonging to a customer to provide a blockchain service for a blockchain system to which the unit of the digital commodity relates if—</text><clause commented="no" id="id3dd8a51a5ab94cc3a4c1760f09828a74"><enum>(i)</enum><text>the customer expressly permits the use, in writing, to the digital commodity broker or digital commodity dealer, as the case may be; and</text></clause><clause commented="no" id="idf6ff5f9ce9e743b9a03b910dcdfc38ec"><enum>(ii)</enum><text>the digital commodity broker or digital commodity dealer, as the case may be, complies with subparagraph (B).</text></clause></subparagraph><subparagraph commented="no" id="id6f1663212ea34effa81e4198528e9df1"><enum>(B)</enum><header>Limitations</header><clause commented="no" id="idfce09cd138474a60b86d39a3f05ab950"><enum>(i)</enum><header>In general</header><text>The Commission shall, by rule, establish notice and written disclosure requirements and any other limitations and rules related to a permission provided under subparagraph (A) or the treatment of customer assets in the event of an insolvency, resolution, or liquidation proceeding, including a description of the manner in which any digital commodity would be treated in an insolvency, resolution, or liquidation proceeding, and how the treatment of digital commodities differs from the treatment of any other assets in the event of an insolvency, resolution, or liquidation proceeding, that are reasonably necessary to protect customers, including eligible contract participants, non-eligible contract participants, and any other class of customers.</text></clause><clause id="idb29531412926438f900506c72858c349"><enum>(ii)</enum><header>Customer choice</header><text>A digital commodity broker or digital commodity dealer may not—</text><subclause id="idc0141d4cb641439c8b4e659b81442a42"><enum>(I)</enum><text>require a customer to provide the permission referred to in subparagraph (A) as a condition of doing business with the digital commodity broker or digital commodity dealer; or</text></subclause><subclause id="idf014ad2b468348718f3a67f6d1a8aca4"><enum>(II)</enum><text>penalize a customer for not providing the permission referred to in subparagraph (A).</text></subclause></clause></subparagraph><subparagraph commented="no" id="ideb336ccdd9df4b0fa2fea7bbf8e66717"><enum>(C)</enum><header>Requirements</header><text>The Commission may, by rule, modify the requirements of paragraph (2) or subsection (g) to facilitate the use of a unit of a digital commodity belonging to a customer to provide a blockchain service.</text></subparagraph><subparagraph commented="no" id="id849902a83c51447c936c8a97b6c96d75"><enum>(D)</enum><header>Blockchain service defined</header><text>In this paragraph, the term <term>blockchain service</term> means any activity relating to validating transactions on a blockchain system, providing security for a blockchain system, or other similar activity required for the ongoing operation of a blockchain system.</text></subparagraph></paragraph><paragraph id="id7a3bf3e64e3b4269bbf21a79ed0d8aed"><enum>(7)</enum><header>Property held in portfolio margin accounts</header><subparagraph commented="no" display-inline="no-display-inline" id="ide7403c658cbf41ce9cd8414997636b11"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text>Notwithstanding paragraph (2), and the rules and regulations thereunder, and pursuant to an exemption granted by the Commission under section 4(c) or pursuant to a rule or regulation—</text><clause id="idfe84266f6e2d4b0b972b265a5daac576"><enum>(i)</enum><text>a digital commodity broker or digital commodity dealer registered under subsection (b)(1) and also registered as a futures commission merchant pursuant to section 4f(a)(1) may, pursuant to a portfolio margining program approved by the Commission, hold digital commodity customer money, assets, and property in a portfolio margining account carried as a futures account or cleared swaps account; and</text></clause><clause id="id67d02eedffb04055976e523fe086fb89"><enum>(ii)</enum><text>a digital commodity broker or digital commodity dealer registered under subsection (b)(1) and also registered as a broker or dealer pursuant to section 15(b)(1) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78o">15 U.S.C. 78o(b)(1)</external-xref>) may, pursuant to a portfolio margining program approved by the Securities and Exchange Commission pursuant to section 19(b) of that Act (<external-xref legal-doc="usc" parsable-cite="usc/15/78s">15 U.S.C. 78s(b)</external-xref>), hold digital commodity customer money, assets, and property in a portfolio margining account carried as a securities account subject to section 15(c)(3) of that Act (<external-xref legal-doc="usc" parsable-cite="usc/15/78o">15 U.S.C. 78o(c)(3)</external-xref>) and the rules and regulations thereunder.</text></clause></subparagraph><subparagraph id="idce12b2b019e646bc82bd6da355d85ce0"><enum>(B)</enum><header>Consultation</header><text>The Commission shall consult with the Securities and Exchange Commission to adopt rules to ensure that such transactions and accounts are subject to comparable requirements to the extent practical for similar products.</text></subparagraph></paragraph></subsection><subsection id="idae0ed578db1d4b33b6559dde802aaee3"><enum>(l)</enum><header>Federal preemption</header><paragraph commented="no" display-inline="no-display-inline" id="idd584585d2b20483bb07367135df9a21f"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Commission shall have exclusive jurisdiction over any digital commodity broker or digital commodity dealer registered under this section with respect to activities subject to this Act.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7a74337095d449caaceff93d5514f16f"><enum>(2)</enum><header>Preservation of authority</header><text>Nothing in this subsection shall affect the ability of a State or local agency to investigate and bring enforcement actions regarding fraud, deceit, or unfair or deceptive acts or practices.</text></paragraph></subsection><subsection commented="no" id="ida801528716764dfb90ff053df7ffbd6f"><enum>(m)</enum><header>Exemptions</header><text>In order to promote responsible innovation and fair competition, or protect customers, the Commission may (on its own initiative or on application of the digital commodity broker or digital commodity dealer) exempt, unconditionally or on stated terms or conditions, or for stated periods, and retroactively or prospectively, or both, a digital commodity broker or digital commodity dealer from the requirements of this Act, if the Commission determines that—</text><paragraph commented="no" display-inline="no-display-inline" id="id81c48aa2f9964709909afc7d5a9e63f6"><enum>(1)</enum><text>the exemption—</text><subparagraph commented="no" display-inline="no-display-inline" id="ideec10586f8b148dfa90a39760b083013"><enum>(A)</enum><text display-inline="yes-display-inline">would be consistent with the public interest and the purposes of this Act; and</text></subparagraph><subparagraph commented="no" id="id277e3b7f3b8746bea06fe397eb934c5e"><enum>(B)</enum><text>will not have a material adverse effect on the ability of the Commission to discharge regulatory duties under this Act; or</text></subparagraph></paragraph><paragraph commented="no" id="id9809e4b6c7fc433d9267314d7dc8c573"><enum>(2)</enum><text>the digital commodity broker or digital commodity dealer is subject to comparable, comprehensive supervision and regulation by the appropriate government authorities in the home country of the digital commodity broker or digital commodity dealer, respectively.</text></paragraph></subsection><subsection commented="no" id="id82beac271c2a492b8e47388a5e41cfc7"><enum>(n)</enum><header>Regulations</header><text>The Commission shall prescribe such rules and regulations as are appropriate for the implementation of this section.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="id32fac847655a4f509238434663cc85c1"><enum>206.</enum><header>Registration of associated persons</header><subsection commented="no" display-inline="no-display-inline" id="id0973143586924c7db2d612972c9965c5"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 4k of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6k">7 U.S.C. 6k</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id7864c988c2604c56848afc65332d8cb9"><paragraph id="idcccc9ec2abb24e219397bdc059b2cf80"><enum>(7)</enum><header>Associated persons of digital commodity brokers and digital commodity dealers</header><subparagraph commented="no" display-inline="no-display-inline" id="ide7c0f87debb949e594409680a9869533"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">It shall be unlawful for any person to act as an associated person of a digital commodity broker or an associated person of a digital commodity dealer unless the person is registered with the Commission under this Act and such registration shall not have expired, been suspended (and the period of suspension has not expired), or been revoked. </text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ida1f2255349ce493f99d0b9f01e93fa37"><enum>(B)</enum><header>Duty of digital commodity brokers and dealers</header><text display-inline="yes-display-inline">It shall be unlawful for a digital commodity broker or a digital commodity dealer to permit a person described in subparagraph (A) to become or remain associated with the digital commodity broker or digital commodity dealer if the digital commodity broker or digital commodity dealer knew or should have known that the person was not so registered or that the registration had expired, been suspended (and the period of suspension has not expired), or been revoked.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id6acb136ca631437e9bb77f0802f1b3b1"><enum>(b)</enum><header>Application</header><text>Section 4k(4) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6k">7 U.S.C. 6k(4)</external-xref>) is amended, in the first sentence, by striking <quote>or of a commodity trading advisor</quote> and inserting <quote>of a commodity trading advisor, of a digital commodity broker, or of a digital commodity dealer</quote>.</text></subsection></section><section commented="no" id="id248d52971c0849ec8848355a41992fb2"><enum>207.</enum><header>Software developer protections</header><text display-inline="no-display-inline">The Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1">7 U.S.C. 1 et seq.</external-xref>) is amended by inserting after section 4u (as added by section 205) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idd93769525518432e9cac8bd3f4423065"><section id="idbdde6eceb81b41f1b4faa19754b9c11c"><enum>4v.<?LEXA-Enum 4v.?></enum><header>Application to software developers</header><subsection id="idf6bd4e0d12c94714b2134490dba21ff9"><enum>(a)</enum><header>In general</header><text>Notwithstanding any other provision of this Act, except as provided in subsection (b), a person shall not be subject to this Act and the regulations promulgated under this Act based on the person directly or indirectly engaging in any of the following activities, whether singly or in combination, in relation to the operation of a blockchain system or in relation to a decentralized finance trading protocol:</text><paragraph id="id77db1678a8a447ec8030f3d62811cfa3"><enum>(1)</enum><text>Compiling network transactions or relaying, searching, sequencing, validating, or acting in a similar capacity.</text></paragraph><paragraph id="id90174028804d4ec799b4e949cd81eb2c"><enum>(2)</enum><text>Providing computational work, operating a node or oracle service, procuring, offering, or utilizing network bandwidth, or providing other similar incidental services.</text></paragraph><paragraph id="id843288e527f7453f9583df5cf8527747"><enum>(3)</enum><text>Providing a user-interface that enables a user to read and access data about a blockchain system.</text></paragraph><paragraph id="ide31e94606d8e4d7384978a0f85fe8fde"><enum>(4)</enum><text>Developing, publishing, or otherwise distributing a blockchain system or a decentralized finance messaging system.</text></paragraph><paragraph id="id5f67555704ad41458ab454152813d97b"><enum>(5)</enum><text>Constituting, administering, or maintaining a decentralized finance messaging system or decentralized finance trading protocol, or operating or participating in a liquidity pool with respect thereto, for the purpose of executing a spot transaction for the purchase or sale of a digital commodity.</text></paragraph><paragraph id="id87856ea0dd9c4379b2308bc9fcb8f60b"><enum>(6)</enum><text>Developing, publishing, constituting, administering, maintaining, or otherwise distributing software or systems that create or deploy hardware or software, including wallets or other systems, facilitating an individual user's own personal ability to keep, safeguard, or custody the user's digital assets or related private keys. </text></paragraph></subsection><subsection id="id0d2be574ac2c41cca240b96417cceeb4"><enum>(b)</enum><header>Exceptions</header><text>Subsection (a) shall not be interpreted to apply to the anti-fraud, anti-manipulation, or false reporting enforcement authorities of the Commission.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="idef361ab670cd4a82b746e3c0880f46cd"><enum>208.</enum><header>Portfolio margining</header><subsection id="id93dd1ad022c740ae87d21871bd479941"><enum>(a)</enum><header>In general</header><text>Section 4d(h) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6d">7 U.S.C. 6d(h)</external-xref>) is amended in the first sentence—</text><paragraph id="id596ce269ad8945dfa14b99c95569de83"><enum>(1)</enum><text>by inserting <quote>or subsection (f)(2)</quote> after <quote>subsection (a)(2)</quote>; and</text></paragraph><paragraph id="id59560cf5cf2941ae895d9b53566a6aa1"><enum>(2)</enum><text>by inserting <quote>or a cleared swap</quote> after <quote>an option on such a contract</quote>.</text></paragraph></subsection><subsection id="id04c71ada061a43dd88a9d7e537c0169d"><enum>(b)</enum><header>Commodity broker debtors</header><text>Section 20(c) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/24">7 U.S.C. 24(c)</external-xref>) is amended—</text><paragraph id="id8bab70aa7d414118b5ab9d6485426384"><enum>(1)</enum><text>by inserting <quote>and digital commodities</quote> after <quote>securities</quote>; and</text></paragraph><paragraph id="iddca42dfa217049339c60e4bd2730153a"><enum>(2)</enum><text>by inserting <quote>or cleared swaps account</quote> after <quote>futures account</quote>.</text></paragraph></subsection></section><section id="id6c962077713a47ab969b5cffb8abd347"><enum>209.</enum><header>Clarification on customer property</header><text display-inline="no-display-inline">Section 20(a) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/24">7 U.S.C. 24(a)</external-xref>) is amended—</text><paragraph id="idaf4a0872a0224089a3434d3ecebe0710"><enum>(1)</enum><text>in paragraph (4), by striking <quote>and</quote> at the end;</text></paragraph><paragraph id="idfa4c7c02cd2e4f0894b77057beae0226"><enum>(2)</enum><text>in paragraph (5), by striking the period at the end and inserting <quote>; and</quote>; and</text></paragraph><paragraph id="idc389de5b40b8466aa8e12eac4a24e46f"><enum>(3)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id550ee1a1c2a04ad480ace21e2077b45f"><paragraph id="id6bf471f460b143b49dbe66555ec72e9e"><enum>(6)</enum><text>that cash, securities, or other property of the estate of a commodity broker, including the trading or operating accounts of the commodity broker and commodities held in inventory by the commodity broker, shall, subject to any otherwise unavoidable security interest, or otherwise unavoidable contractual offset or netting rights of creditors (including rights set forth in a rule or bylaw of a derivatives clearing organization or a clearing agency) in respect of such property, be included in customer property, but only to the extent that the property that is otherwise customer property is insufficient to satisfy the net equity claims of public customers (as such term may be defined by the Commission by rule or regulation) of the commodity broker.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section><section commented="no" id="ide3be21ff7e434a33bd58deb14a01c5db"><enum>210.</enum><header>Resources for implementation</header><text display-inline="no-display-inline"> The Commodity Exchange Act is amended by inserting after section 8d (<external-xref legal-doc="usc" parsable-cite="usc/7/12d">7 U.S.C. 12d</external-xref>) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id5c30bba738ac46e5ba37f5fd59e3cd10"><section commented="no" display-inline="no-display-inline" section-type="subsequent-section" id="id05896f4f7f7c48b394b7328712e07c16"><enum>8e.<?LEXA-Enum 8e.?></enum><header>Resources for implementation regarding digital commodity exchanges, brokers, and dealers</header><subsection commented="no" id="id0a649f6f3105472c9727bbcd766ddea7"><enum>(a)</enum><header>Collection of fees</header><paragraph commented="no" id="id525a3d8b0274495a9455c3226f288756"><enum>(1)</enum><header>In general</header><text>The Commission shall, in accordance with this subsection, assess and collect fees from registered digital commodity brokers, digital commodity dealers, digital commodity exchanges, and qualified digital asset custodians—</text><subparagraph commented="no" display-inline="no-display-inline" id="id1d86cff025cd42f4bd71c8276f7d629f"><enum>(A)</enum><text display-inline="yes-display-inline">on the filing of the initial application for registration; and </text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idf6cfeddad4e748e587f587f56807fbe5"><enum>(B)</enum><text display-inline="yes-display-inline">on an annual basis thereafter.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id507cda96542742c1a2db537420b8ed59"><enum>(2)</enum><header>Purpose</header><text display-inline="yes-display-inline">The fees under paragraph (1) shall be used to recover the annual costs of—</text><subparagraph commented="no" id="id2a34628caef54f1aae28bbd632056e86"><enum>(A)</enum><text>registering digital commodity exchanges, digital commodity brokers, digital commodity dealers, and qualified digital asset custodians;</text></subparagraph><subparagraph commented="no" id="id962c0ac419d449438a4f0361b36a11b9"><enum>(B)</enum><text>conducting oversight of digital commodity exchanges, digital commodity brokers, digital commodity dealers, qualified digital asset custodians, and digital commodity transactions;</text></subparagraph><subparagraph commented="no" id="idffcd546813104330aef225d0edc39a67"><enum>(C)</enum><text>carrying out education and outreach under subsection (b); and</text></subparagraph><subparagraph commented="no" id="id7feea9c845fc49399075264160b0e263"><enum>(D)</enum><text>carrying out such other activities as are required by the <short-title>Digital Commodity Intermediaries Act</short-title> and the amendments made by that Act.</text></subparagraph></paragraph><paragraph commented="no" id="idaeea3c375b9446f486e9f5a857c1e505"><enum>(3)</enum><header>Determination of fee rates</header><text>In determining fee rates under paragraph (1), the Commission shall consider—</text><subparagraph commented="no" id="id00d8da31d90448229ade113754621b15"><enum>(A)</enum><text>the volume of business of the digital commodity exchange, digital commodity broker, digital commodity dealer, or qualified digital asset custodian; and</text></subparagraph><subparagraph commented="no" id="ide00ed3f2d7ed492b836c0e6b9d5b1875"><enum>(B)</enum><text>the registration category of the digital commodity exchange, digital commodity broker, digital commodity dealer, or qualified digital asset custodian.</text></subparagraph></paragraph><paragraph commented="no" id="id893509279a1548a48eef94211f888362"><enum>(4)</enum><header>Prohibition</header><text>The Commission shall not require a digital commodity exchange, digital commodity broker, digital commodity dealer, or qualified digital asset custodian to collect directly from customers a transaction-based fee for each digital commodity transaction.</text></paragraph><paragraph commented="no" id="idf5d2327077bc40858a0c6c8639e14657"><enum>(5)</enum><header>Publication</header><subparagraph id="id9614c4921c2b49959d1485f64d532d32"><enum>(A)</enum><header>1st fiscal year</header><text>Not later than 30 days after the date of enactment of this section, the Commission shall publish the fee rates determined pursuant to this subsection for the fiscal year in which this section is enacted.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ide5778b582ae5491ea5cfdbe6382a9cee"><enum>(B)</enum><header>Subsequent fiscal years</header><text display-inline="yes-display-inline">Not later than 60 days after the date of enactment of an Act making a regular appropriation to the Commission for a fiscal year, the Commission shall publish in the Federal Register a notice of—</text><clause commented="no" id="idda26479a04234ff68e103fb4c390f297"><enum>(i)</enum><text>the fee rates determined pursuant to this subsection for that fiscal year; and</text></clause><clause commented="no" id="idb637cbca1b3c4807bbd47a04f55ae2c1"><enum>(ii)</enum><text>any estimates or projections on which those fee rates are based.</text></clause></subparagraph></paragraph><paragraph commented="no" id="id8d589e421deb4c20b4633318b58d0384"><enum>(6)</enum><header>Records and disclosure</header><text>In carrying out this subsection, the Commission shall not be required to comply with section 553 of title 5, United States Code.</text></paragraph><paragraph commented="no" id="id09353eb36535431581b4ca34c22639dc"><enum>(7)</enum><header>No judicial review</header><text>A fee rate prescribed under this subsection shall not be subject to judicial review.</text></paragraph><paragraph commented="no" id="id0bedd6c5bc3848d9b6d2c098d4d76d53"><enum>(8)</enum><header>Deposit of fees</header><text>Fees collected pursuant to this subsection for any fiscal year shall be deposited and credited as offsetting collections to the account providing appropriations to the Commission.</text></paragraph><paragraph commented="no" id="id241a2bfff3da4e8d9d3aae06860706cf"><enum>(9)</enum><header>Annual adjustment</header><text>For each fiscal year, the Commission shall, by order, determine fee rates pursuant to this subsection that are reasonably likely to produce aggregate fee collections that are equal to the annual appropriation to the Commission by Congress for the activities described in paragraph (2).</text></paragraph><paragraph commented="no" id="id020058f59cf84564a2c8f8a14c1707a4"><enum>(10)</enum><header>Lapse of appropriation</header><text>If, on the first day of a fiscal year, a regular appropriation to the Commission has not been enacted, the Commission shall continue to collect (as offsetting collections) fees pursuant to this subsection at each of the rates in effect during the preceding fiscal year.</text></paragraph><paragraph commented="no" id="id8c1192315c4643cea0d8da8cbd5a85cd"><enum>(11)</enum><header>Budget requests</header><text>The Commissions shall itemize in each budget submitted to the President or the Office of Management and Budget the estimated annual costs of—</text><subparagraph commented="no" id="id06f76507568240a5a6a0c0cb65e383f6"><enum>(A)</enum><text>registering digital commodity exchanges, digital commodity brokers, digital commodity dealers, and qualified digital asset custodians;</text></subparagraph><subparagraph commented="no" id="id3fd49373b6714a69871548277905a41e"><enum>(B)</enum><text>conducting oversight of digital commodity exchanges, digital commodity brokers, digital commodity dealers, qualified digital asset custodians, and digital commodity transactions;</text></subparagraph><subparagraph commented="no" id="id77adc5a41c3f49af80d5bb28e8e706c7"><enum>(C)</enum><text>carrying out education and outreach under subsection (b); and</text></subparagraph><subparagraph commented="no" id="id7d73d0ec23bf45f4b643939c8be7c91f"><enum>(D)</enum><text>carrying out such other activities as are required by the <short-title>Digital Commodity Intermediaries Act</short-title> and the amendments made by that Act.</text></subparagraph></paragraph><paragraph commented="no" id="id8eeaf7e5614d4bad8b8fb7c369e2127a"><enum>(12)</enum><header>Limitations</header><subparagraph commented="no" id="id7cf061937fb94944b359e87f93c2db06"><enum>(A)</enum><header>In general</header><text>Fees may only be assessed and imposed pursuant to this subsection on digital commodity exchanges, digital commodity brokers, digital commodity dealers, and qualified digital asset custodians regulated by the Commission pursuant to the <short-title>Digital Commodity Intermediaries Act</short-title> and the amendments made by that Act.</text></subparagraph><subparagraph commented="no" id="id2852f33214694db1801e84be82926fbe"><enum>(B)</enum><header>Use of fees</header><text>Fees authorized under this subsection are prohibited from funding any Commission activity not directly related to the activities described in paragraph (2).</text></subparagraph></paragraph></subsection><subsection commented="no" id="id139e8a88f9354640953fa146a8645098"><enum>(b)</enum><header>Customer education and outreach</header><text>The Commission shall provide education and outreach to customers participating in digital commodity markets.</text></subsection><subsection commented="no" id="id121bf4979ef84b019ae38c62488839f3"><enum>(c)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out the <short-title>Digital Commodity Intermediaries Act</short-title> and the amendments made by that Act $150,000,000, to remain available until expended, until the Commission has established and is collecting registration fees pursuant to subsection (a).</text></subsection><subsection commented="no" id="ide07e80765c7548d99d2f50be777c5402"><enum>(d)</enum><header>Expedited hiring authority</header><paragraph commented="no" id="idfe47107a6108443894da5f2c2673452c"><enum>(1)</enum><header>Appointment authority</header><text>The Chairman of the Commission may appoint individuals to a position described in paragraph (2)—</text><subparagraph commented="no" id="idb3afdfed1d4f43d9a6932def70decbda"><enum>(A)</enum><text>in accordance with the statutes, rules, and regulations governing appointments to positions in the excepted service (as defined in section 2103 of title 5, United States Code); and</text></subparagraph><subparagraph commented="no" id="ide3273c92ade1459c9a2b3056cfd6ea5f"><enum>(B)</enum><text>without regard to any statute, rule, or regulation governing appointments to positions in the competitive service (as defined in section 2102 of such title).</text></subparagraph></paragraph><paragraph commented="no" id="id7141cbd41c8e414a9231152bdf300c96"><enum>(2)</enum><header>Position described</header><text>A position referred to in paragraph (1) is a position at the Commission that—</text><subparagraph commented="no" id="id681b04b29afc4649b5f5c17572308f1c"><enum>(A)</enum><text>is in the competitive service (as defined in section 2102 of title 5, United States Code); and</text></subparagraph><subparagraph commented="no" id="id88bc79642e144fd989778edd070f2658"><enum>(B)</enum><text>requires specialized knowledge of digital commodities markets, financial and capital market formation or regulation, financial market structures or surveillance, data collection or analysis, or information technology, cybersecurity, or system safeguards.</text></subparagraph></paragraph><paragraph commented="no" id="idde169e68d49d452d8c2a5ac1932d21d7"><enum>(3)</enum><header>Rule of construction</header><text>The appointment of a candidate to a position under this subsection shall not be considered to cause the position to be converted from the competitive service (as defined in section 2102 of title 5, United States Code) to the excepted service (as defined in section 2103 of such title).</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="idf1bebd92f44a4a6c89fba3f662395107"><enum>211.</enum><header>Digital commodity retail advocate</header><text display-inline="no-display-inline">The Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1">7 U.S.C. 1 et seq.</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8190631c5cc34186a9f0d66b967fc0f3"><section id="id20f9d570a13a4b519c50181b311de1f2"><enum>24.</enum><header>Office of the digital commodity retail advocate</header><subsection id="idda046d04fa8e4bf0bbd217e8ff60e7e9"><enum>(a)</enum><header>Definitions</header><text>In this section:</text><paragraph id="ide8ce6a8b5ff442b39ccb2986acdacb36"><enum>(1)</enum><header>Chairman</header><text>The term <term>Chairman</term> means the Chairman of the Commission.</text></paragraph><paragraph id="id335e691d76f54ee1990b75435a139976"><enum>(2)</enum><header>Office</header><text>The term <term>Office</term> means the Office of the Digital Commodity Retail Advocate established by subsection (b).</text></paragraph><paragraph id="idcc77cb5b08024b6aaad293251db11c08"><enum>(3)</enum><header>Retail participant</header><text>The term <term>retail participant</term> means a person that—</text><subparagraph commented="no" display-inline="no-display-inline" id="id63bd59ee5abe4f0c9725f681f7cbf919"><enum>(A)</enum><text display-inline="yes-display-inline">is not an eligible contract participant;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8f822bba618145ca91174dca4d0986bb"><enum>(B)</enum><text display-inline="yes-display-inline">is participating in a spot or cash digital commodity market; and</text></subparagraph><subparagraph id="id37a9ab04bc08441f977e34ae97723604"><enum>(C)</enum><text>has engaged or is engaging in a digital commodity transaction with a person registered with the Commission.</text></subparagraph></paragraph></subsection><subsection id="idc284bd22d3b94ba4b236261a70e984df"><enum>(b)</enum><header>Office established</header><text>There is established within the Commission the Office of the Digital Commodity Retail Advocate.</text></subsection><subsection id="idfafbe55e7fe848d6891bcf41e9fc5094"><enum>(c)</enum><header>Digital Commodity Retail Advocate</header><paragraph id="id433b76e5ce5a411d9452a6d702f36350"><enum>(1)</enum><header>In general</header><text>The Digital Commodity Retail Advocate shall—</text><subparagraph id="id8ba6baf1bb0149f1be71ea79359312e7"><enum>(A)</enum><text>report directly to the Chairman; and</text></subparagraph><subparagraph id="id955f681120f34f8fbd6e0656019128ef"><enum>(B)</enum><text>be appointed by the Chairman from among individuals with experience in advocating for the interests of digital commodity market retail participants.</text></subparagraph></paragraph><paragraph id="id06d533ef396c470a8bdda53284d98b3b"><enum>(2)</enum><header>Compensation</header><text>The annual rate of pay for the Digital Commodity Retail Advocate shall be equal to the highest rate of annual pay for other senior executives who report to the Chairman.</text></paragraph><paragraph id="id243004a4216b4e7bbe7f6d90289d32b8"><enum>(3)</enum><header>Limitation on service</header><text>An individual who serves as the Digital Commodity Retail Advocate may not be employed by the Commission—</text><subparagraph id="id666d2213f25c4fa380862f9b53221115"><enum>(A)</enum><text>during the 2-year period ending on the date of appointment as Digital Commodity Retail Advocate; or</text></subparagraph><subparagraph id="id4d15fd9e5cdc4c2e82fd393968bf7cb0"><enum>(B)</enum><text>during the 5-year period beginning on the date on which the person ceases to serve as the Digital Commodity Retail Advocate.</text></subparagraph></paragraph></subsection><subsection id="id6cd4826586914d9682d017d21c242580"><enum>(d)</enum><header>Functions of the digital commodity retail advocate</header><text>The Digital Commodity Retail Advocate shall—</text><paragraph id="ide1f54ce1a2e24c079e15749ecb6e4113"><enum>(1)</enum><text>assist retail participants in resolving significant problems they may have with the Commission or a registered futures association;</text></paragraph><paragraph id="id1465c42f3ef64f20880f2af248ffc8d5"><enum>(2)</enum><text>identify areas in which retail participants would benefit from changes in the regulations of the Commission or the rules of registered futures associations;</text></paragraph><paragraph id="id69cb21a077e44d988de6f5ae50f39b52"><enum>(3)</enum><text>identify problems that retail participants have with persons registered with the Commission;</text></paragraph><paragraph id="idb327d76ca1c644beb1a5d96c3e0609b4"><enum>(4)</enum><text>analyze the potential impact on retail participants of—</text><subparagraph id="id3411e877f4964b3dba4ce3d039e657f2"><enum>(A)</enum><text>proposed regulations of the Commission; and</text></subparagraph><subparagraph id="id75a82b2da10a48f7871d51a87c97e52e"><enum>(B)</enum><text>proposed rules of registered futures associations;</text></subparagraph></paragraph><paragraph id="id52a2cdd25cab47039a06a1d2b96226ee"><enum>(5)</enum><text>to the extent practicable, propose to the Commission changes in the regulations or orders of the Commission, and to Congress any legislative, administrative, or personnel changes, that may be appropriate—</text><subparagraph id="idb0261b71910c487f8e77dec0a6f56ad8"><enum>(A)</enum><text>to mitigate problems identified under this subsection; and</text></subparagraph><subparagraph id="id4a85acbe1b9f4aa89e4f9f0498eafc72"><enum>(B)</enum><text>to promote the interests of retail participants;</text></subparagraph></paragraph><paragraph id="idbae35ef9bba04fbca89adba0c6261823"><enum>(6)</enum><text>conduct research to identify and understand issues that affect retail participants; and</text></paragraph><paragraph id="id7877a5d6d64343beb2a1c6d43003110a"><enum>(7)</enum><text>cooperate with and provide assistance to the Office of Customer Education and Outreach to conduct initiatives and outreach for retail participants.</text></paragraph></subsection><subsection id="idef03177b3e8146a7b2aa43d222c10ca3"><enum>(e)</enum><header>Access to documents</header><paragraph commented="no" display-inline="no-display-inline" id="id25c85e1b52b04fd08929aaf7462c0083"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">At the discretion of the Chairman, the Digital Commodity Retail Advocate shall have full access to the documents of the Commission and registered futures associations as necessary to carry out the functions of the Office. </text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id168219be6fef4fafaccfae27f849a182"><enum>(2)</enum><header>Effect</header><text display-inline="yes-display-inline">Nothing in the subsection authorizes the Digital Commodity Retail Advocate, or staff of the Office, to have access to, or to release publicly or internally within the Commission, proprietary or sensitive market data. </text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ide14164859b9649e4857f8ab5ef344c33"><enum>(3)</enum><header>Policies and procedures</header><text display-inline="yes-display-inline">The Office shall establish and make public on the website of the Commission policies and procedures in place to safeguard the confidentiality of any documents the Digital Commodity Retail Advocate or staff of the Office has access to.</text></paragraph></subsection><subsection id="id2e34d1ef2f5942c0979f501b51fa57f6"><enum>(f)</enum><header>Annual reports</header><paragraph id="idab2b027167434c61bd86fc911a487113"><enum>(1)</enum><header>Report on objectives</header><subparagraph id="id7bb6bd6f03214079bd1b793fa0b6c420"><enum>(A)</enum><header>In general</header><text>Not later than June 30 of each year, the Digital Commodity Retail Advocate shall submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives a report describing the objectives of the Digital Commodity Retail Advocate for the following fiscal year.</text></subparagraph><subparagraph id="id2ea4c9afe1484a6696dfbed0689f5bb7"><enum>(B)</enum><header>Contents</header><text>Each report required under subparagraph (A) shall contain full and substantive analysis and explanation.</text></subparagraph></paragraph><paragraph id="id45fb4f4b3f694d7fb920d7bc269390c0"><enum>(2)</enum><header>Report on activities</header><subparagraph id="id11e1b861ee324f4fac794fdfbdd09283"><enum>(A)</enum><header>In general</header><text>Not later than December 31 of each year, the Digital Commodity Retail Advocate shall submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives a report describing the activities of the Digital Commodity Retail Advocate during the immediately preceding fiscal year.</text></subparagraph><subparagraph id="id78017aa2909e4590a3f6e893eb09a419"><enum>(B)</enum><header>Contents</header><text>Each report required under subparagraph (A) shall include—</text><clause id="id12bf9800f407473b96fa2819bb530f9b"><enum>(i)</enum><text>appropriate statistical information and full and substantive analysis;</text></clause><clause id="idebfec896749845ffbeb2265049ef86a0"><enum>(ii)</enum><text>information on steps that the Digital Commodity Retail Advocate has taken during the reporting period to improve—</text><subclause id="idaf22ba2dc24f4bf7a4f4dcec8d9f8c90"><enum>(I)</enum><text>services to and communication with retail participants; and</text></subclause><subclause id="id2472980b4688458fb81d06ed268b101f"><enum>(II)</enum><text>the responsiveness of the Commission and registered futures associations to retail participant concerns;</text></subclause></clause><clause id="id1573f874fdba42b1bc4f841ccd1d25a2"><enum>(iii)</enum><text>a summary of the most serious problems reported to the Office or the Commission by retail participants during the reporting period;</text></clause><clause id="id8d710e67556e4953b7be0ecd876474f5"><enum>(iv)</enum><text>an inventory of the items described in clause (iii) that includes—</text><subclause id="idef88cd4c5baa419fb90027194a116119"><enum>(I)</enum><text>identification of any action taken by the Commission or a registered futures association and the result of that action;</text></subclause><subclause id="idfb65be21626844daa1ee7ad9916d5ed3"><enum>(II)</enum><text>the period of time that each item has remained on the inventory; and</text></subclause><subclause id="id19de67956b2e44b5a2c7cf6de4ae6081"><enum>(III)</enum><text>for items with respect to which no action has been taken, the reasons for inaction, and an identification of any official who is responsible for the action;</text></subclause></clause><clause id="idb7070cde687a4e849f0e4d94ed3a1e1e"><enum>(v)</enum><text>recommendations for such administrative and legislative actions as may be appropriate to resolve problems encountered by retail participants; and</text></clause><clause id="id7cb43a974ff24a4fb204b02c9472edba"><enum>(vi)</enum><text>any other information, as determined appropriate by the Digital Commodity Retail Advocate.</text></clause></subparagraph><subparagraph id="idd7d5cd24024b4d9895fb057b752aad2f"><enum>(C)</enum><header>Independence</header><text>Each report required under subparagraph (A) shall be provided directly to the committees described in that subparagraph without any prior review or comment from the Commission, any Commissioner, any other officer or employee of the Commission, or the Office of Management and Budget.</text></subparagraph><subparagraph id="id12f99654debe4109a2cc37fe35fe6450"><enum>(D)</enum><header>Confidentiality</header><text>No report required under subparagraph (A) may contain confidential information.</text></subparagraph></paragraph></subsection><subsection id="idbf8339fd2b8349cab265ace106b99cde"><enum>(g)</enum><header>Ombudsman</header><paragraph id="id293f97dfd9f141be894a89df1998cff6"><enum>(1)</enum><header>Appointment</header><text>Not later than 180 days after the date on which the first Digital Commodity Retail Advocate is appointed under subsection (c)(1)(B), the Digital Commodity Retail Advocate shall appoint an Ombudsman, who shall report directly to the Digital Commodity Retail Advocate.</text></paragraph><paragraph id="id9cd94aa376ba4e8f8c7a8bef257ae9dc"><enum>(2)</enum><header>Duties</header><text>The Ombudsman appointed under paragraph (1) shall—</text><subparagraph id="idd1decee5d02a469b90236657d28dffdc"><enum>(A)</enum><text>act as a liaison between the Commission and any retail participant in resolving problems the retail participant may have with the Commission or a registered futures association;</text></subparagraph><subparagraph id="ida04c52e2a6114e48a40060affb775098"><enum>(B)</enum><text>review and make recommendations regarding policies and procedures to encourage persons to present questions to the Digital Commodity Retail Advocate regarding compliance with this Act; and</text></subparagraph><subparagraph id="ida35012373eb1429ba9d7f4f78cc17e53"><enum>(C)</enum><text>establish safeguards to maintain the confidentiality of communications between the persons described in subparagraph (B) and the Ombudsman.</text></subparagraph></paragraph><paragraph id="id695579b10cbb4e33a9edb78ddd0e384a"><enum>(3)</enum><header>Limitation</header><subparagraph id="id5d1fac1aa3c2418593c599350d579f81"><enum>(A)</enum><header>Personnel</header><text>In carrying out the duties of the Ombudsman under paragraph (2), the Ombudsman shall utilize personnel of the Commission, to the extent practicable.</text></subparagraph><subparagraph id="idad752973ed584c2983b227f560c2f7aa"><enum>(B)</enum><header>Effect</header><text>Nothing in this paragraph shall be construed as replacing, altering, or diminishing the activities of any ombudsman or similar office of any other agency.</text></subparagraph></paragraph><paragraph id="idae927b946e76472ebf9cd1250ba6e4e0"><enum>(4)</enum><header>Report</header><subparagraph id="id5d64982eba4b40108b6add7964dc3ee6"><enum>(A)</enum><header>Report on activities</header><text>The Ombudsman shall submit to the Digital Commodity Retail Advocate an annual report that describes the activities and evaluates the effectiveness of the Ombudsman during the preceding 1-year period.</text></subparagraph><subparagraph id="idec68e22f74bb45538e8e987cbe7951ec"><enum>(B)</enum><header>Submission</header><text>The Digital Commodity Retail Advocate shall include the reports required under subparagraph (A) in the reports required to be submitted by the Digital Commodity Retail Advocate under subsection (f).</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section><section commented="no" display-inline="no-display-inline" section-type="subsequent-section" id="id896ca6ac766544329abc24f50729842d"><enum>212.</enum><header>Report</header><text display-inline="no-display-inline">Not later than 180 days after the date of enactment of this Act, the Commodity Futures Trading Commission (referred to in this section as the <term>Commission</term>) shall—</text><paragraph id="ida85219a353164ea4a54fba628c071515"><enum>(1)</enum><text>examine the racial, ethnic, and gender demographics of customers participating in digital commodity markets;</text></paragraph><paragraph id="id620f1bd5f5dc4434b275b7c6acb2b616"><enum>(2)</enum><text>submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives a report—</text><subparagraph id="id76984cf76b33486fa3cadcc9b78a69ba"><enum>(A)</enum><text>describing how those demographics will inform the rules and regulations of the Commission relating to customer protection;</text></subparagraph><subparagraph id="id6a330c2815304d108846ca274379026b"><enum>(B)</enum><text>proposing ways in which the Commission can provide outreach to historically underserved customers participating in digital commodity markets; and</text></subparagraph><subparagraph id="idd1f1e5b2d56c48c389f91b8d03458a69"><enum>(C)</enum><text>containing policy recommendations relating to any other activities the Commission determines to be necessary to provide appropriate protection, outreach, or other similar activities relating to historically underserved customers participating in digital commodity markets; and</text></subparagraph></paragraph><paragraph id="id59b8bfbf63194c3381945d9c3623f990"><enum>(3)</enum><text>in preparing the report under this subsection, seek and consider information and input from a broad range of stakeholders, including market participants, customers, and consumer advocates.</text></paragraph></section>

March 12, 2026

Read the second time and placed on the calendar