15 U.S.C. 77b(a)added (20)by H.R. 3633 Sec. 101
(20) Blockchain.— The term blockchain means—(A) any technology—(i) where data is—(I) shared across a network to create a distributed ledger of independently verifiable transactions or information among network participants;(II) linked using cryptography to maintain the integrity of the distributed ledger and to execute other functions; and(III) propagated among network participants to reach consensus on the state of the distributed ledger and any other functions; and(ii) composed of source code that is publicly available; and(B) any similar technology to the technology described in subparagraph (A).(21) Blockchain application.— The term blockchain application means any executable software that is deployed to a blockchain and composed of source code that is publicly available, including a smart contract or any network of smart contracts, or other similar technology.(22) Blockchain protocol.— The term "blockchain protocol" means publicly available source code of a blockchain that is executed by the network participants of a blockchain to facilitate its functioning, or other similar technology.(23) Blockchain system.— The term blockchain system means any blockchain, together with its blockchain protocol or any blockchain application or network of blockchain applications.(24) Decentralized governance system.—(A) In general.— The term decentralized governance system 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, where participation is not limited to, or under the effective control of, any person or group of persons under common control.(B) Relationship of persons to decentralized governance systems.— 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.(C) Legal entities for decentralized governance systems.— The term decentralized governance system shall include a legal entity used to implement the rules-based system described in subparagraph (A), provided that the legal entity does not operate pursuant to centralized management. 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.(25) Digital asset.— The term digital asset means any digital representation of value which is recorded on a cryptographically-secured distributed ledger or other similar technology.(26) Digital commodity.— The term digital commodity has the meaning given that term under section 1a of the Commodity Exchange Act (7 U.S.C. 1a).(27) Digital commodity affiliated person.— The term digital commodity affiliated person—(A) means a person (including a digital commodity related person) that, with respect to any digital commodity—(i) acquires or has any right to acquire 5 percent or more of the total outstanding units of such digital commodity from a digital commodity issuer or an agent or underwriter thereof;(ii) is a founder of the digital commodity issuer; or(iii) is an executive officer, director, trustee, general partner, or person serving in a similar capacity of the digital commodity issuer or held such role at any point in the previous 12-month period; and(B) does not include a decentralized governance system.(28) Digital commodity issuer.—(A) In general.— With respect to a digital commodity, the term digital commodity issuer means any person that—(i) issues or causes to be issued, or proposes to issue or cause to be issued, a unit of such digital commodity to a person; or(ii) offers or sells a right to a future issuance of a unit of such digital commodity to a person.(B) Prohibition on evasion.— It shall be unlawful for any person to knowingly evade classification as a "digital commodity issuer" and facilitate an arrangement for the primary purpose of effecting an offer, sale, distribution, or other issuance of a digital commodity, including via any arrangement involving the transfer of intellectual property associated with the blockchain system to which the digital commodity relates.(29) Digital commodity related person.—(A) In general.— With respect to a digital commodity issuer, the term digital commodity related person—(i) means a person—(I) that is or was in the previous 6-month period a promoter, senior employee, advisory board member, consultant, advisor, or person serving in a similar capacity; or(II) that acquires or has any right to acquire 1 percent or more of the total outstanding units of such digital commodity from a digital commodity issuer or an agent or underwriter thereof; and(ii) does not include a decentralized governance system.(B) Senior employee defined.— In this paragraph and with respect to a digital commodity issuer, the term senior employee means any employee materially involved in the management of the digital commodity issuer, including management of the development of the blockchain system to which the digital commodity relates.(30) End user distribution.—(A) In general.— The term end user distribution means a distribution of a unit of a digital commodity that—(i) does not involve an exchange of more than a nominal value of cash, property, or other assets; and(ii) is distributed in a broad and equitable manner based on conditions capable of being satisfied by any participant in the blockchain system, including, as incentive-based rewards—(I) to users of the digital commodity or any blockchain system to which the digital commodity relates;(II) for activities directly related to the operation of the blockchain system, such as mining, validating, staking, or othe
The bill says: Section 2(a) of the Securities Act of 1933 (15 U.S.C. 77b(a)) is amended by adding at the end the following:
Bill text · Current law (15 U.S.C. 77b)
15 U.S.C. 78c(a)renumberedby H.R. 3633 Sec. 102(1)
The bill says: by redesignating the second paragraph (80) (relating to funding portals) as paragraph (81); and
Bill text · Current law (15 U.S.C. 78c)
15 U.S.C. 78c(a)added (82)by H.R. 3633 Sec. 102(2)
(82) Bank Secrecy Act.— The term Bank Secrecy Act means—(A) section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b);(B) chapter 2 of title I of Public Law 91–508 (12 U.S.C. 1951 et seq.); and(C) subchapter II of chapter 53 of title 31, United States Code.(83) Additional digital commodity-related terms.—(A) Securities Act of 1933.— The terms blockchain system, decentralized governance system, digital asset, digital commodity affiliated person, digital commodity issuer, digital commodity related person, end user distribution, mature blockchain system, permitted payment stablecoin, and permitted payment stablecoin issuer have the meaning given those terms, respectively, under section 2(a) of the Securities Act of 1933 (15 U.S.C. 77b(a)).(B) Commodity Exchange Act.— The terms digital commodity, digital commodity broker, digital commodity dealer, digital commodity exchange, decentralized finance messaging system, and decentralized finance trading protocol have the meaning given those terms, respectively, under section 1a of the Commodity Exchange Act (7 U.S.C. 1a).
The bill says: by adding at the end the following:
Bill text · Current law (15 U.S.C. 78c)
7 U.S.C. 1a(10)(A)renumberedby H.R. 3633 Sec. 103(a)
The bill says: by redesignating clauses (iii) and (iv) as clauses (iv) and (v), respectively; and
Bill text · Current law (7 U.S.C. 1a)
7 U.S.C. 1a(10)(A)added (iii)by H.R. 3633 Sec. 103(a)
(iii) digital commodity;
The bill says: by inserting after clause (ii) the following:
Bill text · Current law (7 U.S.C. 1a)
7 U.S.C. 1a(10)renumberedby H.R. 3633 Sec. 103(a)
(B) Exclusion.— For purposes of this paragraph, the term trading in commodity interests shall not include transacting in digital commodities for the purpose of—(i) acting as a digital commodity custodian;(ii) establishing, maintaining, or managing inventory or payment instruments for commercial purposes; or(iii) maintaining or supporting the operation of, or validating transactions on, a blockchain system.
The bill says: by redesignating subparagraph (B) as subparagraph (C) and inserting after subparagraph (A) the following:
Bill text · Current law (7 U.S.C. 1a)
7 U.S.C. 1a(11)(A)(i)renumberedby H.R. 3633 Sec. 103(a)
The bill says: by redesignating subclauses (III) and (IV) as subclauses (IV) and (V), respectively; and
Bill text · Current law (7 U.S.C. 1a)
7 U.S.C. 1a(11)(A)(i)added (III)by H.R. 3633 Sec. 103(a)
(III) digital commodity;
The bill says: by inserting after subclause (II) the following:
Bill text · Current law (7 U.S.C. 1a)
7 U.S.C. 1a(11)renumberedby H.R. 3633 Sec. 103(a)
(B) Exclusion.— For purposes of this paragraph, the term trading in commodity interests shall not include transacting in digital commodities for the purpose of—(i) acting as a digital commodity custodian;(ii) establishing, maintaining, or managing inventory or payment instruments for commercial purposes; or(iii) maintaining or supporting the operation of, or validating transactions on, a blockchain system.
The bill says: by redesignating subparagraph (B) as subparagraph (C) and inserting after subparagraph (A) the following:
Bill text · Current law (7 U.S.C. 1a)
7 U.S.C. 1a(12)(A)(i)(II)changedby H.R. 3633 Sec. 103(a)
The bill says: in subclause (II), by adding at the end a semicolon;
Bill text · Current law (7 U.S.C. 1a)
7 U.S.C. 1a(12)(A)(i)renumberedby H.R. 3633 Sec. 103(a)
The bill says: by redesignating subclauses (III) and (IV) as subclauses (IV) and (V), respectively; and
Bill text · Current law (7 U.S.C. 1a)
7 U.S.C. 1a(12)(A)(i)added (III)by H.R. 3633 Sec. 103(a)
(III) a digital commodity;
The bill says: by inserting after subclause (II) the following:
Bill text · Current law (7 U.S.C. 1a)
7 U.S.C. 1arenumberedby H.R. 3633 Sec. 103(a)
(16) Terms related to digital commodities.—(A) Associated person of a digital commodity broker.—(i) In general.— Except as provided in clause (ii), the term associated person of a digital commodity broker 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—(I) the solicitation or acceptance of an order for the purchase or sale of a digital commodity; or(II) the supervision of any person engaged in the solicitation or acceptance of an order for the purchase or sale of a digital commodity.(ii) Exclusion.— The term associated person of a digital commodity broker does not include any person associated with a digital commodity broker the functions of which are solely clerical or ministerial.(B) Associated person of a digital commodity dealer.—(i) In general.— Except as provided in clause (ii), the term associated person of a digital commodity dealer 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—(I) the solicitation or acceptance of a contract for the purchase or sale of a digital commodity; or(II) the supervision of any person engaged in the solicitation or acceptance of a contract for the purchase or sale of a digital commodity.(ii) Exclusion.— The term associated person of a digital commodity dealer does not include any person associated with a digital commodity dealer the functions of which are solely clerical or ministerial.(C) Bank Secrecy Act.— The term Bank Secrecy Act means—(i) section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b);(ii) chapter 2 of title I of Public Law 91–508 (12 U.S.C. 1951 et seq.); and(iii) subchapter II of chapter 53 of title 31, United States Code.(D) Decentralized finance messaging system.—(i) In general.— The term decentralized finance messaging system 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 for the purpose of executing a transaction by the user.(ii) Additional requirements.— The term decentralized finance messaging system does not include any system that provides any person other than the user with control over—(I) the funds of the user; or(II) the execution of the transaction of the user.(E) Decentralized finance trading protocol.—(i) In general.— The term decentralized finance trading protocol means a blockchain system through which multiple participants can execute a financial transaction—(I) in accordance with an automated rule or algorithm that is predetermined and non-discretionary; and(II) without reliance on any other person to maintain control of the digital assets of the user during any part of the financial transaction.(ii) Exclusions.—(I) In general.— The term decentralized finance trading protocol does not include a blockchain system if—(aa) 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; or(bb) 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.(II) Special rule.— For purposes of subclause (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.(F) Digital commodity.—(i) In general.— The term digital commodity means a digital asset that is intrinsically linked to a blockchain system, and the value of which is derived from or is reasonably expected to be derived from the use of the blockchain system.(ii) Relationship to a blockchain system.— For purposes of this subparagraph, a digital asset is intrinsically linked to a blockchain system if the digital asset is directly related to the functionality or operation of the blockchain system or to the activities or services for which the blockchain system is created or utilized, including where the digital asset is—(I) issued or generated by the programmatic functioning of the blockchain system;(II) used to transfer value between participants in the blockchain system;(III) used to access the activities or services of the blockchain system;(IV) used to participate in the decentralized governance system of the blockchain system;(V) used or removed from circulation in whole or in part to pay fees or otherwise verify or validate transactions on the blockchain system;(VI) used as payment or incentive to participants in the blockchain system to engage in the activities of the blockchain system, provide services to other participants in the blockchain system, or otherwise participate in the functionality of the blockchain system; or(VII) used as payment or incentive to participants in the blockchain system to validate transactions, secure the blockchain system, provide computational services, maintain or distribute information, or otherwise participate in the operations of the blockchain system.(iii) Exclusion.— The term digital commodity does not include any of the following:(I) Security.—(aa) Any security, other than a note, an investment contract, or a certificate of interest or participation in any profit-sharing agreement.(bb) A note, an investment contract, or a certificate of interest or participation in any profit-sharing agreement that—(AA) represents or gives the holder an ownership interest or other interest in the revenues, profit
The bill says: by redesignating paragraphs (16) through (51) as paragraphs (17) through (52), respectively, and inserting after paragraph (15) the following:
Bill text · Current law (7 U.S.C. 1a)
7 U.S.C. 1a(41)changedby H.R. 3633 Sec. 103(a)
The bill says: by striking "and" at the end of subparagraph (E);
Bill text · Current law (7 U.S.C. 1a)
7 U.S.C. 1a(41)changedby H.R. 3633 Sec. 103(a)
(41) Security. The term "security" means a security as defined in section 2(a)(1) of the Securities Act of 1933 (15 U.S.C. 77b(a)(1)) or section 3(a)(10) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(10)).; and
The bill says: by striking the period at the end of subparagraph (F) and inserting "; and"; and
Bill text · Current law (7 U.S.C. 1a)
7 U.S.C. 1a(41)added (G)by H.R. 3633 Sec. 103(a)
(G) a digital commodity exchange registered under section 5i.
The bill says: by adding at the end the following:
Bill text · Current law (7 U.S.C. 1a)
15 U.S.C. 8325changedby H.R. 3633 Sec. 103(b)
(a) In order to promote effective and consistent global regulation of swaps and security-based swaps, the Commodity Futures Trading Commission, the Securities and Exchange Commission, and the prudential regulators (as that term is defined in section 1a(39)1a(40) of title 7), as appropriate, shall consult and coordinate with foreign regulatory authorities on the establishment of consistent international standards with respect to the regulation (including fees) of swaps, security-based swaps, swap…
The bill says: Section 752 of the Wall Street Transparency and Accountability Act of 2010 (15 U.S.C. 8325) is amended by striking "1a(39)" and inserting "1a(40)".
Bill text · Current law (15 U.S.C. 8325)
7 U.S.C. 6s(f)(1)(D)changedby H.R. 3633 Sec. 103(b)
(D) shall keep any such books and records relating to swaps defined in section 1a(47)(A)1a(48)(A)(v) of this title open to inspection and examination by the Securities and Exchange Commission.
The bill says: Section 4s(f)(1)(D) of the Commodity Exchange Act (7 U.S.C. 6s(f)(1)(D)) is amended by striking "1a(47)(A)" and inserting "1a(48)(A)".
Bill text · Current law (7 U.S.C. 6s)
7 U.S.C. 24a(f)(4)(C)changedby H.R. 3633 Sec. 103(b)
The bill says: Section 21(f)(4)(C) of the Commodity Exchange Act (7 U.S.C. 24a(f)(4)(C)) is amended by striking "1a(48)" and inserting "1a(49)".
Bill text · Current law (7 U.S.C. 24a)
7 U.S.C. 27a(a)(2)changedby H.R. 3633 Sec. 103(b)
(2) the definitions of "security-based swap" in section 3(a)(68) of the Securities Exchange Act of 1934 [15 U.S.C. 78c(a)(68)] and "security-based swap agreement" in section 1a(47)(A)(v)1a(48)(A)(v) of the Commodity Exchange Act [7 U.S.C. 1a(47)(A)(v)] and section 3(a)(78) of the Securities Exchange Act of 1934 [15 U.S.C. 78c(a)(78)] do not include any identified bank product.
The bill says: in subsection (a)(2), by striking "1a(47)(A)(v)" and inserting "1a(48)(A)(v)"; and
Bill text · Current law (7 U.S.C. 27a)
7 U.S.C. 27achangedby H.R. 3633 Sec. 103(b)
…1 et seq.) with respect to, an identified banking product; and (2) the definitions of "security-based swap" in section 3(a)(68) of the Securities Exchange Act of 1934 [15 U.S.C. 78c(a)(68)] and "security-based swap agreement" in section 1a(47)1a(48)(A)(v) of the Commodity Exchange Act [7 U.S.C. 1a(47)(A)(v)] and section 3(a)(78) of the Securities Exchange Act of 1934 [15 U.S.C. 78c(a)(78)] do not include any identified bank product. (b) Exception. An appropriate Federal banking…
The bill says: in each of subsections (b)(1) and (c)(2), by striking "1a(47)" and inserting "1a(48)".
Bill text · Current law (7 U.S.C. 27a)
15 U.S.C. 8302(a)(8)changedby H.R. 3633 Sec. 103(b)
(8) Mixed swaps. The Commodity Futures Trading Commission and the Securities and Exchange Commission, after consultation with the Board of Governors, shall jointly prescribe such regulations regarding mixed swaps, as described in section 1a(47)(D)1a(48)(D) of the Commodity Exchange Act (7 U.S.C. 1a(47)(D)1a(48)(D)) and in section 78c(a)(68)(D) of this title, as may be necessary to carry out the purposes of this title.1
The bill says: in subsection (a)(8), by striking "1a(47)(D)" each place it appears and inserting "1a(48)(D)"; and
Bill text · Current law (15 U.S.C. 8302)
15 U.S.C. 8302(d)(1)changedby H.R. 3633 Sec. 103(b)
(1) In general. Notwithstanding any other provision of this title 1 and subsections (b) and (c), the Commodity Futures Trading Commission and the Securities and Exchange Commission, in consultation with the Board of Governors, shall further define the terms "swap", "security-based swap", "swap dealer", "security-based swap dealer", "major swap participant", "major security-based swap participant", "eligible contract participant", and "security-based swap agreement" in section 1a(47)(A)(v)1a(48)(A)(v) of the Commodity Exchange Act (7 U.S.C. 1a(47)(A)(v)1a(48)(A)(v)) and section 78c(a)(78) of this title.
The bill says: in subsection (d)(1), by striking "1a(47)(A)(v)" each place it appears and inserting "1a(48)(A)(v)".
Bill text · Current law (15 U.S.C. 8302)
7 U.S.C. 6c(a)(3)(B)changedby H.R. 3633 Sec. 108(1)
(B) an option (other than an option executed or traded on a national securities exchange registered pursuant to section 78f(a) of title 15); or
The bill says: in subparagraph (B), by striking "or" at the end;
Bill text · Current law (7 U.S.C. 6c)
7 U.S.C. 6c(a)(3)(C)changedby H.R. 3633 Sec. 108(1)
The bill says: in subparagraph (C), by striking the period and inserting "; or"; and
Bill text · Current law (7 U.S.C. 6c)
7 U.S.C. 6c(a)(3)added (D)by H.R. 3633 Sec. 108(1)
(D) a contract of sale of a digital commodity.
The bill says: by adding at the end the following:
Bill text · Current law (7 U.S.C. 6c)
7 U.S.C. 6c(a)(4)(A)(ii)changedby H.R. 3633 Sec. 108(2)
The bill says: in clause (ii), by striking "or" at the end;
Bill text · Current law (7 U.S.C. 6c)
7 U.S.C. 6c(a)(4)(A)(iii)changedby H.R. 3633 Sec. 108(2)
The bill says: in clause (iii), by striking the period and inserting "; or"; and
Bill text · Current law (7 U.S.C. 6c)
7 U.S.C. 6c(a)(4)(A)added (iv)by H.R. 3633 Sec. 108(2)
(iv) a contract of sale of a digital commodity.
The bill says: by adding at the end the following:
Bill text · Current law (7 U.S.C. 6c)
7 U.S.C. 6c(a)(4)(B)(ii)changedby H.R. 3633 Sec. 108(2)
The bill says: in clause (ii), by striking "or" at the end;
Bill text · Current law (7 U.S.C. 6c)
7 U.S.C. 6c(a)(4)(B)(iii)changedby H.R. 3633 Sec. 108(2)
The bill says: in clause (iii), by striking the period and inserting "; or"; and
Bill text · Current law (7 U.S.C. 6c)
7 U.S.C. 6c(a)(4)(B)added (iv)by H.R. 3633 Sec. 108(2)
(iv) a contract of sale of a digital commodity.
The bill says: by adding at the end the following:
Bill text · Current law (7 U.S.C. 6c)
7 U.S.C. 6c(a)(4)(C)(ii)changedby H.R. 3633 Sec. 108(2)
The bill says: in clause (ii), by striking "or" at the end;
Bill text · Current law (7 U.S.C. 6c)
7 U.S.C. 6c(a)(4)(C)changedby H.R. 3633 Sec. 108(2)
(iii) a swap; or(iv) a contract of sale of a digital commodity,
The bill says: by striking "(iii) a swap, provided however," and inserting the following:
Bill text · Current law (7 U.S.C. 6c)
7 U.S.C. 6c(a)(4)(C)changedby H.R. 3633 Sec. 108(2)
The bill says: by striking "clauses (i), (ii), or (iii)" and insert "any of clauses (i) through (iv)".
Bill text · Current law (7 U.S.C. 6c)
31 U.S.C. 5312(c)(1)(A)changedby H.R. 3633 Sec. 110(a)
(A) 2 Any futures commission merchant, digital commodity broker, digital commodity dealer, commodity trading advisor, or commodity pool operator registered, or required to register, under the Commodity Exchange Act.
The bill says: by inserting "digital commodity broker, digital commodity dealer," after "futures commission merchant,"; and
Bill text · Current law (31 U.S.C. 5312)
31 U.S.C. 5312(c)(1)(A)addedby H.R. 3633 Sec. 110(a)
The bill says: by inserting before the period the following: "and any digital commodity exchange registered, or required to register, under the Commodity Exchange Act which permits direct customer access".
Bill text · Current law (31 U.S.C. 5312)
15 U.S.C. 80b-2(a)(18)addedby H.R. 3633 Sec. 201(b)
The bill says: Section 202(a)(18) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(a)(18)) is amended by adding at the end the following: "The term investment contract does not include an investment contract asset (as such term is defined under section 2(a) of the Securities Act of 1933).".
Bill text · Current law (15 U.S.C. 80b-2)
15 U.S.C. 80a-2(a)(36)addedby H.R. 3633 Sec. 201(c)
The bill says: Section 2(a)(36) of the Investment Company Act of 1940 (15 U.S.C. 80a–2(a)(36)) is amended by adding at the end the following: "The term investment contract does not include an investment contract asset (as such term is defined under section 2(a) of the Securities Act of 1933).".
Bill text · Current law (15 U.S.C. 80a-2)
15 U.S.C. 78c(a)(10)addedby H.R. 3633 Sec. 201(d)
The bill says: Section 3(a)(10) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(10)) is amended by adding at the end the following: "The term investment contract does not include an investment contract asset (as such term is defined under section 2(a) of the Securities Act of 1933).".
Bill text · Current law (15 U.S.C. 78c)
15 U.S.C. 78lll(14)addedby H.R. 3633 Sec. 201(e)
The bill says: Section 16(14) of the Securities Investor Protection Act of 1970 (15 U.S.C. 78lll(14)) is amended by adding at the end the following: "The term investment contract does not include an investment contract asset (as such term is defined under section 2(a) of the Securities Act of 1933).".
Bill text · Current law (15 U.S.C. 78lll)
15 U.S.C. 77aadded (8)by H.R. 3633 Sec. 202(a)
(8) the offer or sale of an investment contract involving units of a digital commodity by its digital commodity issuer (including all entities controlled by or under common control with the issuer), if—(A) the blockchain system to which the digital commodity relates, together with the digital commodity, is certified as a mature blockchain system under section 42 of the Securities Exchange Act of 1934 or the issuer intends for the blockchain system to which the digital commodity relates to be a mature blockchain system by the later of—(i) the date that is four years after the first sale of the investment contract involving a unit of such digital commodity in reliance on the exemption provided under this paragraph, subject to any extensions as may be granted by the Commission; or(ii) the date that is four years after the effective date of this paragraph;(B) the sum of all cash and other consideration to be received by the digital commodity issuer in reliance on the exemption provided under this paragraph, during the 12-month period preceding the date of such offering, including the amount received in such offering, is not more than $50,000,000 (as such amount is annually adjusted by the Commission to reflect the change in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor);(C) after the completion of the transaction, a purchaser does not own more than 10 percent of the total amount of the outstanding units of the digital commodity;(D) the transaction does not involve the offer or sale of an investment contract involving units of a digital commodity by its digital commodity issuer that—(i) is not organized under the laws of a State, a territory of the United States, or the District of Columbia;(ii) is a development stage company that either—(I) has no specific business plan or purpose; or(II) has indicated that the business plan of the company is to merge with or acquire an unidentified company;(iii) is an investment company, as defined in section 3 of the Investment Company Act of 1940 (15 U.S.C. 80a–3), or is excluded from the definition of investment company by section 3(c) of that Act (15 U.S.C. 80a–3(b) or 80a–3(c));(iv) is issuing fractional undivided interests in oil or gas rights, or a similar interest in other mineral rights;(v) is, or has been, subject to any order of the Commission entered pursuant to section 12(j) of the Securities Exchange Act of 1934 during the 5-year period before the filing of the offering statement; or(vi) is disqualified pursuant to section 230.262 of title 17, Code of Federal Regulations; and(E) the issuer meets the requirements of section 4B(b).
The bill says: in section 4(a), by adding at the end the following:
Bill text · Current law (15 U.S.C. 77a)
15 U.S.C. 77aadded 4Bby H.R. 3633 Sec. 202(a)
4B. Requirements with respect to certain digital commodity transactions.—(a) Commission jurisdiction.— For the purposes of this section:(1) The Commission shall have jurisdiction and enforcement authority with respect to disclosures described in this section.(2) Section 17 shall apply to a statement made in an offering statement, disclosure, or report filed under this section to the same extent as such section 17 applies to a statement made in any other offering statement, disclosure, or report filed under this Act.(b) Requirements for digital commodity issuers.—(1) Terms and conditions.— A digital commodity issuer offering or selling an investment contract involving units of a digital commodity in reliance on section 4(a)(8) shall file with the Commission an offering statement and any related documents, in such form and with such content as prescribed by the Commission, including financial information, a description of the issuer and the operations of the issuer, the financial condition of the issuer, a description of the plan of distribution of any unit of a digital commodity that is to be offered as well as the intended use of the offering proceeds, and a description of the development plan for the blockchain system, and the related digital commodity, to become a mature blockchain system, if such blockchain system is not already certified as a mature blockchain system pursuant to section 42 of the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.).(2) Information required for purchasers.— A digital commodity issuer that has filed a statement under paragraph (1) to offer and sell an investment contract involving a unit of a digital commodity in reliance on section 4(a)(8) shall include in such statement the following information:(A) Maturity status.— Whether the blockchain system to which the digital commodity relates has been certified as a mature blockchain system pursuant to section 42 of the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) and, where such blockchain system is not so certified, a statement of the digital commodity issuer’s intent for the blockchain system to which the digital commodity relates to be a mature blockchain system within the time period described in section 4(a)(8)(A).(B) Source code.— The source code, or a publicly accessible webpage displaying such source code, for any blockchain system to which the digital commodity relates, and whether the source code was sourced from an external third party, whether there are any existing external dependencies, and whether the code underwent a third-party security audit, along with material results of any such audit.(C) Transaction history.— 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.(D) Digital commodity economics.— A description of the purpose of any blockchain system to which the digital commodity relates and the operation of any such blockchain system, including—(i) information explaining the launch and supply process, including the number of units of the digital commodity to be issued in an initial allocation, the total number of units of the digital commodity to be created, the release schedule for the units of the digital commodity, and the total number of units of the digital commodity outstanding;(ii) information explaining the technical requirements for holding, accessing, and transferring the digital commodity;(iii) information on any applicable consensus mechanism or process for validating transactions, method of generating or mining digital commodities, and any process for burning or destroying units of the digital commodity on the blockchain system;(iv) an explanation of any mechanism for driving value to the digital commodity of such blockchain system; and(v) an explanation of governance mechanisms for implementing changes to the blockchain system or forming consensus among holders of units of such digital commodity.(E) Plan of development.— The current state and timeline for the development of any blockchain system to which the digital commodity relates, detailing how and when the blockchain system is intended to be a mature blockchain system, if the blockchain system is not yet certified as a mature blockchain system, and the various roles that exist or are intended to exist in connection with the blockchain system, such as users, service providers, developers, transaction validators, and governance participants, including a discussion of any mechanisms by which control or authority are exerted with respect to the blockchain system or its related digital commodity, and any critical operational dependencies of the blockchain system or its related digital commodity.(F) Ownership disclosures.—(i) In general.— A list of all persons who are digital commodity related persons or digital commodity affiliated persons who have been issued a unit of the digital commodity by the digital commodity issuer or have a right to a unit of the digital commodity from the digital commodity issuer.(ii) Confidentiality.— The Commission shall keep each list described under clause (i) confidential, consistent with what is necessary or appropriate in the public interest or for the protection of investors.(G) Risk factor disclosures.— A description of the material risks surrounding ownership of a unit of a digital commodity.(3) Ongoing disclosure requirements for maturing blockchain systems.— Subject to paragraph (5), the issuer of a digital commodity related to a blockchain system that is not yet certified as a mature blockchain system under section 42 of the Securities Exchange Act of 1934 that has filed a statement under paragraph (1) to offer and sell an investment contract involving a unit of a digital commodity in reliance
The bill says: by inserting after section 4A the following:
Bill text · Current law (15 U.S.C. 77a)
15 U.S.C. 78l(g)(6)changedby H.R. 3633 Sec. 202(b)
The bill says: Section 12(g)(6) of the Securities Exchange Act of 1934 (15 U.S.C. 78l(g)(6)) is amended by striking "under section 4(6)" and inserting "under section 4(a)(6) or 4(a)(8)".
Bill text · Current law (15 U.S.C. 78l)
15 U.S.C. 77r(b)(4)(B)changedby H.R. 3633 Sec. 202(b)
The bill says: in subparagraph (B), by striking "section 4(4)" and inserting "section 4(a)(4)";
Bill text · Current law (15 U.S.C. 77r)
15 U.S.C. 77r(b)(4)(C)changedby H.R. 3633 Sec. 202(b)
The bill says: in subparagraph (C), by striking "section 4(6)" and inserting "section 4(a)(6)";
Bill text · Current law (15 U.S.C. 77r)
15 U.S.C. 77r(b)(4)(F)changedby H.R. 3633 Sec. 202(b)
The bill says: by striking "section 4(2)" each place such term appears and inserting "section 4(a)(2)"; and
Bill text · Current law (15 U.S.C. 77r)
15 U.S.C. 77r(b)(4)(F)changedby H.R. 3633 Sec. 202(b)
The bill says: by striking "or" at the end;
Bill text · Current law (15 U.S.C. 77r)
15 U.S.C. 77r(b)(4)(G)changedby H.R. 3633 Sec. 202(b)
The bill says: in subparagraph (G), by striking the period and inserting "; or"; and
Bill text · Current law (15 U.S.C. 77r)
15 U.S.C. 77r(b)(4)added (H)by H.R. 3633 Sec. 202(b)
(H) section 4(a)(8).
The bill says: by adding at the end the following:
Bill text · Current law (15 U.S.C. 77r)
15 U.S.C. 78aadded 42by H.R. 3633 Sec. 205
42 Mature blockchain systems.—(a) Certification of blockchain systems.—(1) Certification.— A digital commodity issuer, digital commodity related person, digital commodity affiliated person, decentralized governance system of the blockchain system, or a registered digital commodity exchange, or any other appropriate person as designated by the Commission, may certify to the Commission that the blockchain system to which a digital commodity relates is a mature blockchain system.(2) Filing requirements.— A certification described under paragraph (1) shall be filed with the Commission, and include such information that is reasonably necessary to establish that the blockchain system is not controlled by any person or group of persons under common control, which may include information regarding—(A) the operation of the blockchain system;(B) the functionality of the related digital commodity;(C) how the market value of the digital commodity is substantially derived from the programmatic functioning of such blockchain system;(D) any decentralized governance system which relates to the blockchain system; and(E) the current roles, if any, of the digital commodity issuer, digital commodity affiliated persons, and digital commodity related persons where such roles are material to the development or operation of such blockchain system or the decentralized governance system of such blockchain system.(3) Rebuttable presumption.— The Commission may rebut a certification described under paragraph (1) with respect to a blockchain system if the Commission, within 60 days of receiving such certification, determines that the blockchain system is not a mature blockchain system.(4) Certification review.—(A) In general.— Any blockchain system that relates to a digital commodity for which a certification has been made under paragraph (1) shall be considered a mature blockchain system 60 days after the date on which the Commission receives a certification under paragraph (1), unless the Commission notifies the person who made the certification within such time that the Commission is staying the certification due to—(i) an inadequate explanation by the person making the certification; or(ii) any novel or complex issues which require additional time to consider.(B) Public notice.— The Commission shall make the following available to the public and provide a copy to the Commodity Futures Trading Commission:(i) Each certification received under paragraph (1).(ii) Each stay of the Commission under this subsection, and the reasons therefor.(iii) Any response from a person making a certification under paragraph (1) to a stay of the certification by the Commission.(C) Consolidation.— The Commission may consolidate and treat as one submission multiple certifications made under paragraph (1) for the same blockchain system which relates to a digital commodity which are received during the review period provided under this paragraph.(5) Stay of certification.—(A) In general.— A notification by the Commission pursuant to paragraph (4)(A) shall stay the certification once for up to an additional 120 days from the date of the notification.(B) Public comment period.— Before the end of the 60-day period described under paragraph (4)(A), the Commission may begin a public comment period of at least 30 days in conjunction with a stay under this subsection.(6) Disposition of certification.— A certification made under paragraph (1) shall—(A) become effective—(i) upon the publication of a notification from the Commission to the person who made the certification that the Commission does not object to the certification; or(ii) at the expiration of the certification review period; and(B) not become effective upon the publication of a notification from the Commission to the person who made the certification that the Commission has rebutted the certification.(7) Recertification.— With respect to a blockchain system for which a certification has been rebutted under this subsection, no person may make a certification under paragraph (1) with respect to such blockchain system during the 90-day period beginning on the date of such rebuttal.(8) Appeal of rebuttal.—(A) In general.— If a certification is rebutted under this section, the person making such certification may appeal the decision to the United States Court of Appeals for the District of Columbia, not later than 60 days after the notice of rebuttal is made.(B) Review.— In an appeal under subparagraph (A), the court shall have de novo review of the determination to rebut the certification.(b) Maturity criteria.—(1) Sense of Congress.— It is the sense of the Congress that protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation necessitates establishing clear criteria for blockchain systems to be deemed mature, as well as enabling the Commission to develop, without prejudice to any such criteria codified in statute, alternative criteria by which blockchain systems may be considered not to be controlled by any person or group of persons under common control in order to accommodate changes in markets and technology.(2) In general.— The Commission may issue rules identifying conditions by which a blockchain system, together with its related digital commodity, shall be considered a mature blockchain system, consistent with the protection of investors, maintenance of fair, orderly, and efficient markets, and the facilitation of capital formation.(3) Rules of construction.—(A) Nothing in this subsection may be construed to permit the Commission to impose additional criteria to the criteria in subsection (c) for certifying that a blockchain system is a mature blockchain system pursuant to subsection (c).(B) Nothing in this subsection or subsection (c) may be construed to limit the Commission’s ability to identify alternative conditions and criteria by which a blockchain system may be considered a mature block
The bill says: Title I of the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended by adding at the end the following:
Bill text · Current law (15 U.S.C. 78a)
15 U.S.C. 77b(a)(1)changedby H.R. 3633 Sec. 301(a)
The bill says: Section 2(a)(1) of the Securities Act of 1933 (15 U.S.C. 77b(a)(1)), as amended by the GENIUS Act, is amended by striking the final sentence and inserting the following: "The term does not include a digital commodity or permitted payment stablecoin.".
Bill text · Current law (15 U.S.C. 77b)
15 U.S.C. 78c(a)changedby H.R. 3633 Sec. 301(b)
The bill says: Section 3(a)(10) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)), as amended by the GENIUS Act, is amended by striking the final sentence and inserting the following: "The term does not include a digital commodity or permitted payment stablecoin.".
Bill text · Current law (15 U.S.C. 78c)
15 U.S.C. 80b-2(a)(18)changedby H.R. 3633 Sec. 301(c)
The bill says: in paragraph (18), as amended by the GENIUS Act, by striking the final sentence and inserting the following: "The term does not include a digital commodity or permitted payment stablecoin.";
Bill text · Current law (15 U.S.C. 80b-2)
15 U.S.C. 80b-2(a)renumberedby H.R. 3633 Sec. 301(c)
The bill says: by redesignating the second paragraph (29) (relating to commodity pools) as paragraph (31); and
Bill text · Current law (15 U.S.C. 80b-2)
15 U.S.C. 80b-2(a)added (32)by H.R. 3633 Sec. 301(c)
(32) Digital commodity-related terms.— The terms digital commodity and permitted payment stablecoin have the meaning given those terms, respectively, under section 2(a) of the Securities Act of 1933 (15 U.S.C. 77b(a)).
The bill says: by adding at the end, the following:
Bill text · Current law (15 U.S.C. 80b-2)
15 U.S.C. 80a-2(a)(36)changedby H.R. 3633 Sec. 301(d)
The bill says: in paragraph (36), as amended by the GENIUS Act, by striking the final sentence and inserting the following: "The term does not include a digital commodity or permitted payment stablecoin."; and
Bill text · Current law (15 U.S.C. 80a-2)
15 U.S.C. 80a-2(a)added (55)by H.R. 3633 Sec. 301(d)
(55) Digital commodity-related terms.— The terms digital commodity and permitted payment stablecoin have the meaning given those terms, respectively, under section 2(a) of the Securities Act of 1933 (15 U.S.C. 77b(a)).
The bill says: by adding at the end, the following:
Bill text · Current law (15 U.S.C. 80a-2)
15 U.S.C. 78lll(14)changedby H.R. 3633 Sec. 301(e)
The bill says: in paragraph (14), as amended by the GENIUS Act, by striking the final sentence and inserting the following: "The term does not include a digital commodity or permitted payment stablecoin, as such terms are defined, respectively, under section 2(a) of the Securities Act of 1933 (15 U.S.C. 77b(a))"; and
Bill text · Current law (15 U.S.C. 78lll)
15 U.S.C. 78llladded (15)by H.R. 3633 Sec. 301(e)
(15) Treatment of permitted payment stablecoins.— A permitted payment stablecoin, as defined in section 2(a) of the Securities Act of 1933, shall not qualify as "cash" and a claim for a permitted payment stablecoin shall not qualify as a "claim for cash".
The bill says: by adding at the end the following:
Bill text · Current law (15 U.S.C. 78lll)
15 U.S.C. 78jadded (d)by H.R. 3633 Sec. 302(a)
(d) To use or employ, in connection with the purchase or sale of any permitted payment stablecoin or digital commodity, by or through, as applicable, a broker, dealer, national securities exchange, or an alternative trading system, any manipulative or deceptive device or contrivance in contravention of such rules and regulations as the Commission may prescribe as necessary or appropriate in the public interest or for the protection of investors.
The bill says: by inserting after subsection (c) the following:
Bill text · Current law (15 U.S.C. 78j)
15 U.S.C. 78jaddedby H.R. 3633 Sec. 302(a)
The bill says: by adding at the end the following: "Rules promulgated under subsection (b) that prohibit fraud, manipulation, or insider trading (but not rules imposing or specifying reporting or recordkeeping requirements, procedures, or standards as prophylactic measures against fraud, manipulation, or insider trading), and judicial precedents decided under subsection (b) and rules promulgated thereunder that prohibit fraud, manipulation, or insider trading, shall apply with respect to permitted payment stablecoin and digital commodity transactions engaged in by or through a broker or dealer or through an alternative trading system or, as applicable, a national securities exchange to the same extent as they apply to securities transactions. Judicial precedents decided under section 17(a) of the Securities Act of 1933 and sections 9, 15, 16, 20, and 21A of this title, and judicial precedents decided under applicable rules promulgated under such sections, shall apply to permitted payment stablecoins and digital commodities with respect to those circumstances in which the permitted payment stablecoins and digital commodities are, as applicable, brokered, traded, or custodied by or through a broker or dealer or through an alternative trading system or a national securities exchange to the same extent as they apply to securities.".
Bill text · Current law (15 U.S.C. 78j)
15 U.S.C. 78aadded 6Aby H.R. 3633 Sec. 302(b)
6A. Treatment of transactions in permitted payment stablecoins.—(a) Authority To broker, trade, and custody permitted payment stablecoins.— Permitted payment stablecoins may be brokered, traded, or custodied by a broker or dealer or through an alternative trading system or national securities exchange.(b) Commission jurisdiction.— The Commission shall only have jurisdiction over a transaction in a permitted payment stablecoin with respect to those circumstances in which a permitted payment stablecoin is brokered, traded, or custodied—(1) by a broker or dealer;(2) through a national securities exchange; or(3) through an alternative trading system.(c) Limitation.— Subsection (b) shall only apply to a transaction described in subsection (b) for the purposes of regulating the offer, execution, solicitation, or acceptance of a permitted payment stablecoin in those circumstances in which the permitted payment stablecoin is brokered, traded, or custodied—(1) by a broker or dealer;(2) through a national securities exchange; or(3) through an alternative trading system.
The bill says: Title I of the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended by inserting after section 6 the following:
Bill text · Current law (15 U.S.C. 78a)
15 U.S.C. 78echangedby H.R. 3633 Sec. 303(a)
The bill says: by striking "It" and inserting the following:
Bill text · Current law (15 U.S.C. 78e)
15 U.S.C. 78eadded (b)by H.R. 3633 Sec. 303(a)
(b) Digital commodity protections.—(1) In general.— The Commission may not preclude a trading platform from operating pursuant to a covered exemption to exchange registration under section 6 of this title on the basis that the assets traded or to be traded on such platform include—(A) digital commodities or permitted payment stablecoins; and(B) securities.(2) Covered exemption.— In this subsection, the term covered exemption means an exemption—(A) described in subsection (a)(2); or(B) with respect to any other rule of the Commission relating to the definition of "exchange".
The bill says: by adding at the end the following:
Bill text · Current law (15 U.S.C. 78e)
15 U.S.C. 78c(a)(2)addedby H.R. 3633 Sec. 303(b)
The bill says: Section 3(a)(2) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(2)) is amended by adding at the end the following: "Neither an alternative trading system predominantly facilitating the trading of digital commodities, permitted payment stablecoins, or both, relative to its securities traded, nor a digital commodity exchange, is a "facility" of an exchange.".
Bill text · Current law (15 U.S.C. 78c)
15 U.S.C. 77z-3changedby H.R. 3633 Sec. 306
The bill says: Section 28 of the Securities Act of 1933 (15 U.S.C. 77z–3) is amended by striking "by rule or regulation" and inserting "by rule, regulation, or order".
Bill text · Current law (15 U.S.C. 77z-3)
15 U.S.C. 78oadded (p)by H.R. 3633 Sec. 307
(p) Additional registrations with the Commodity Futures Trading Commission.—(1) Registered brokers and dealers.— A registered broker or registered dealer shall be permitted to maintain a registration with the Commodity Futures Trading Commission as a digital commodity broker or digital commodity dealer.(2) National securities exchanges.— A national securities exchange or affiliate thereof shall be permitted to maintain a registration with the Commodity Futures Trading Commission as a digital commodity exchange.(3) Alternative trading systems.— An alternative trading system, and the operator thereof, shall be permitted to maintain a registration with the Commodity Futures Trading Commission as a digital commodity exchange.(4) Notice of application.— Any person or entity described in paragraph (1) through (3) shall provide to the Securities and Exchange Commission, at such time and in such form and manner as the Securities and Exchange Commission shall prescribe, notice of any application to register with the Commodity Futures Trading Commission as a digital commodity broker, digital commodity dealer, or digital commodity exchange.
The bill says: Section 15 of the Securities Exchange Act of 1934 (15 U.S.C. 78o) is amended by adding at the end the following:
Bill text · Current law (15 U.S.C. 78o)
15 U.S.C. 77r(b)added (5)by H.R. 3633 Sec. 308(a)
(5) Exemption in connection with digital commodities.— A digital commodity shall be treated as a covered security.
The bill says: Section 18(b) of the Securities Act of 1933 (15 U.S.C. 77r(b)) is amended by adding at the end the following:
Bill text · Current law (15 U.S.C. 77r)
15 U.S.C. 78aadded 15Hby H.R. 3633 Sec. 309
15H. Decentralized finance activities not subject to this Act.—(a) In general.— Notwithstanding any other provision of this Act, 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:(1) Compiling network transactions or relaying, searching, sequencing, validating, or acting in a similar capacity.(2) Providing computational work, operating a node or oracle service, or procuring, offering, or utilizing network bandwidth, or providing other similar incidental services.(3) Providing a user-interface that enables a user to read and access data about a blockchain system.(4) Developing, publishing, constituting, administering, maintaining, or otherwise distributing a blockchain system or a decentralized finance trading protocol.(5) Developing, publishing, constituting, administering, maintaining, or otherwise distributing a decentralized finance messaging system, or operating or participating in a liquidity pool, for the purpose of executing a spot contract for the purchase or sale of a digital commodity in relation to a decentralized finance trading protocol.(6) 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.(b) Exceptions.— Subsection (a) shall not apply to the anti-fraud and anti-manipulation authorities of the Commission.
The bill says: The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended by inserting after section 15G the following:
Bill text · Current law (15 U.S.C. 78a)
12 U.S.C. 1843(k)(4)(A)changedby H.R. 3633 Sec. 312(a)
The bill says: in subparagraph (A), by striking "or securities" and inserting ", securities, or digital commodities"; and
Bill text · Current law (12 U.S.C. 1843)
12 U.S.C. 1843(k)(4)(E)changedby H.R. 3633 Sec. 312(a)
The bill says: in subparagraph (E), by inserting "or digital commodities" before the period at the end.
Bill text · Current law (12 U.S.C. 1843)
7 U.S.C. 2(a)(1)added (J)by H.R. 3633 Sec. 401(a)
(J) Except as expressly provided in this Act, nothing in the CLARITY Act of 2025 shall affect or apply to, or be interpreted to affect or apply to—(i) any agreement, contract, or transaction that is subject to this Act as—(I) a contract of sale of a commodity for future delivery or an option on such a contract;(II) a swap;(III) a security futures product;(IV) an option authorized under section 4c of this Act;(V) an agreement, contract, or transaction described in subparagraph (C)(i) or (D)(i) of subsection (c)(2) of this section; or(VI) a leverage transaction authorized under section 19; or(ii) the activities of any person with respect to any such an agreement, contract, or transaction.
The bill says: Section 2(a)(1) of the Commodity Exchange Act (7 U.S.C. 2(a)(1)) is amended by adding at the end the following:
Bill text · Current law (7 U.S.C. 2)
7 U.S.C. 2(c)(1)(F)changedby H.R. 3633 Sec. 401(b)
The bill says: in subparagraph (F), by striking "or" at the end;
Bill text · Current law (7 U.S.C. 2)
7 U.S.C. 2(c)(1)(G)changedby H.R. 3633 Sec. 401(b)
The bill says: in subparagraph (G), by striking the period and inserting "; or"; and
Bill text · Current law (7 U.S.C. 2)
7 U.S.C. 2(c)(1)added (H)by H.R. 3633 Sec. 401(b)
(H) permitted payment stablecoins.
The bill says: by adding at the end the following:
Bill text · Current law (7 U.S.C. 2)
7 U.S.C. 2(c)(2)(D)(ii)(I)addedby H.R. 3633 Sec. 401(c)
The bill says: in clause (ii)(I), by inserting after "paragraph (1)" the following: "(other than an agreement, contract, or transaction in a permitted payment stablecoin)"; and
Bill text · Current law (7 U.S.C. 2)
7 U.S.C. 2(c)(2)(D)renumberedby H.R. 3633 Sec. 401(c)
The bill says: by redesignating clause (iv) as clause (v) and inserting after clause (iii) the following:
Bill text · Current law (7 U.S.C. 2)
7 U.S.C. 2(c)(2)added (F)by H.R. 3633 Sec. 401(d)
(F) Commission jurisdiction with respect to digital commodity transactions.—(i) In general.— 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 or tradable asset (as defined in section 4x) in interstate commerce, including in a digital commodity or tradable asset (as so defined) cash or spot market, that is offered, solicited, traded, facilitated, executed, cleared, reported, or otherwise dealt in—(I) on or subject to the rules of a registered entity or an entity that is required to be registered as a registered entity; or(II) by any other entity registered, or required to be registered, with the Commission.(ii) Limitations.— Clause (i) shall not apply with respect to—(I) custodial or depository activities for a digital commodity of an entity regulated by an appropriate Federal banking agency or a State bank supervisor (within the meaning of section 3 of the Federal Deposit Insurance Act); or(II) an offer or sale of an investment contract involving a digital commodity or of a securities offer or sale involving a digital commodity.(iii) Mixed digital asset transactions.—(I) In general.— Clause (i) shall not apply to a mixed digital asset transaction.(II) Reports on mixed digital asset transactions.— A digital commodity issuer, digital commodity related person, digital commodity affiliated person, or other person registered with the Securities and Exchange Commission that engages in a mixed digital asset transaction, shall, on request of the Commission, open to inspection and examination by the Commission all books and records relating to the mixed digital asset transaction, subject to the confidentiality and disclosure requirements of section 8.(G) Agreements, contracts, and transactions in stablecoins.—(i) Treatment of permitted payment stablecoins on commission-registered entities.— 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—(I) on or subject to the rules of a registered entity; or(II) by any other entity registered with the Commission.(ii) Permitted payment stablecoin transaction rules.— 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.(iii) No authority over permitted payment stablecoins.— 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.
The bill says: Section 2(c)(2) of the Commodity Exchange Act (7 U.S.C. 2(c)(2)) is amended by adding at the end the following:
Bill text · Current law (7 U.S.C. 2)
7 U.S.C. 6d(a)(2)changedby H.R. 3633 Sec. 402(1)
The bill says: in the 1st proviso, by striking "any bank or trust company" and inserting "any bank, trust company, or qualified digital asset custodian, as applicable,"; and
Bill text · Current law (7 U.S.C. 6d)
7 U.S.C. 6d(a)(2)changedby H.R. 3633 Sec. 402(1)
The bill says: by inserting ": Provided further, That any such property that is a digital asset shall be held in a qualified digital asset custodian" before the period at the end; and
Bill text · Current law (7 U.S.C. 6d)
7 U.S.C. 6d(f)(3)(A)(i)changedby H.R. 3633 Sec. 402(2)
The bill says: in subsection (f)(3)(A)(i), by striking "any bank or trust company" and inserting "any bank, trust company, or qualified digital asset custodian".
Bill text · Current law (7 U.S.C. 6d)
7 U.S.C. 7a-2(a)changedby H.R. 3633 Sec. 403(1)
The bill says: in subsection (a), by striking "5(d) and 5b(c)(2)" and inserting "5(d), 5b(c)(2), and 5i(c)";
Bill text · Current law (7 U.S.C. 7a-2)
7 U.S.C. 7a-2(b)changedby H.R. 3633 Sec. 403(2)
The bill says: in each of paragraphs (1) and (2), by inserting "digital commodity exchange," before "derivatives"; and
Bill text · Current law (7 U.S.C. 7a-2)
7 U.S.C. 7a-2(b)(3)changedby H.R. 3633 Sec. 403(2)
The bill says: in paragraph (3), by inserting "digital commodity exchange," before "derivatives" each place it appears;
Bill text · Current law (7 U.S.C. 7a-2)
7 U.S.C. 7a-2(c)(2)changedby H.R. 3633 Sec. 403(3)
The bill says: in paragraph (2), by inserting "or participants" before "(in a";
Bill text · Current law (7 U.S.C. 7a-2)
7 U.S.C. 7a-2(c)(4)(B)changedby H.R. 3633 Sec. 403(3)
The bill says: in paragraph (4)(B), by striking "1a(10)" and inserting "1a(9)"; and
Bill text · Current law (7 U.S.C. 7a-2)
7 U.S.C. 7a-2(c)(5)added (D)by H.R. 3633 Sec. 403(3)
(D) Special rules for digital commodity contracts.— 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 shall make or rely on a certification under subsection (d) for the digital commodity.
The bill says: in paragraph (5), by adding at the end the following:
Bill text · Current law (7 U.S.C. 7a-2)
7 U.S.C. 7a-2added (d)by H.R. 3633 Sec. 403(4)
(d) Certifications for digital commodity trading.—(1) In general.— 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).(2) Contents of the certification.—(A) In general.— In making a written certification under this paragraph, the eligible entity shall furnish to the Commission an analysis of how the digital commodity meets the requirements of section 5i(c)(3).(B) Reliance on prior disclosures.— In making a certification under this subsection, an eligible entity may rely on the records and disclosures of any relevant person registered with the Securities and Exchange Commission or other State or Federal agency.(3) Modifications.—(A) In general.— An eligible entity shall modify a certification made under paragraph (1) to—(i) account for significant changes in any information provided to the Commission under paragraph (2)(A)(ii); or(ii) permit or restrict trading in units of a digital commodity held by a digital commodity related person or a digital commodity affiliated person.(B) Recertification.— Modifications required by this subsection shall be subject to the same disapproval and review process as a new certification under paragraphs (4) and (5).(4) Disapproval.—(A) In general.— 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.(B) Analysis required.— The Commission shall include, with any findings referred to in subparagraph (A), a detailed analysis of the factors on which the decision was based.(C) Public findings.— The Commission shall make public any disapproval decision, and any related findings and analysis, made under this paragraph.(5) Review.—(A) In general.— 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—(i) 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(ii) 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.(B) Extensions.— The time for consideration under subparagraph (A) may be extended through notice to the eligible entity that there are novel or complex issues that require additional time to analyze, that the explanation by the submitting eligible entity is inadequate, or of a potential inconsistency with this Act—(i) once, for 30 business days, through written notice to the eligible entity by the Commission; and(ii) once, for an additional 30 business days, through written notice to the eligible entity from the Commission that includes a description of any deficiencies with the certification, including any—(I) novel or complex issues which require additional time to analyze;(II) missing information or inadequate explanations; or(III) potential inconsistencies with this Act.(6) Prior approval before registration.—(A) In general.— 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.(B) Request for prior approval.— 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).(C) Deadline.— 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.(D) Disapproval.—(i) In general.— The Commission shall approve the listing of the digital commodity unless the Commission finds that the listing is inconsistent with this Act (including any regulation prescribed under this Act).(ii) Analysis required.— The Commission shall include, with any findings made under clause (i), a detailed analysis of the factors on which the decision is based.(iii) Public findings.— The Commission shall make public any disapproval decision, and any related findings and analysis, made under this paragraph.(7) Eligible entity defined.— In this subsection, the term eligible entity means a registered entity or group of registered entities acting jointly.
The bill says: by inserting after subsection (c) the following:
Bill text · Current law (7 U.S.C. 7a-2)
7 U.S.C. 1added 5iby H.R. 3633 Sec. 404
5i. Registration of digital commodity exchanges.—(a) In general.—(1) Registration.—(A) In general.— 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.(B) Application.— 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 may require for the purpose of making the determinations required for approval.(C) Exemptions.— 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—(i) 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(ii) serves only customers in a single State, territory, or possession of the United States.(2) Additional registrations.—(A) With the Commission.— In order to foster the development of fair and orderly markets, protect customers, and promote responsible innovation, the Commission—(i) shall 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;(ii) shall prescribe rules to address conflicts of interests and activities of the entity; and(iii) may, after an analysis of the risks and benefits, prescribe rules to provide for portfolio margining.(B) With a registered futures association.—(i) In general.— A registered digital commodity exchange shall become and remain a member of a registered futures association and comply with rules related to such activity, if the registered digital commodity exchange accepts customer funds required to be segregated under subsection (d).(ii) Rulemaking required.— The Commission shall require any registered futures association with a digital commodity exchange as a member to provide such rules as may be necessary to further compliance with subsection (d), protect customers, and promote the public interest.(C) Registration required.— 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.(b) Trading.—(1) Prohibition on certain trading practices.—(A) 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.(B) 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.(C) 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.(2) Prohibition on acting as a counterparty.—(A) In general.— A digital commodity exchange or any affiliate of such an exchange shall not trade on or subject to the rules of the digital commodity exchange for its own account.(B) Exceptions.— Subject to any conditions, requirements, or limitations imposed by the Commission pursuant to subparagraph (C), a digital commodity exchange may engage in trading on the exchange so long as the trading is not solely for the purpose of the profit of the exchange, including the following:(i) Customer direction.— A transaction for, or entered into at the direction of, or for the benefit of, an unaffiliated customer.(ii) Risk management.— A transaction to manage the credit, market, and liquidity risks associated with the digital commodity business of the exchange.(iii) Operational needs.— A transaction related to the operational needs of the business of the digital commodity exchange or its affiliate.(iv) Functional use.— A transaction related to the functional operation of a blockchain system.(C) Rulemaking.— The Commission may, by rule, establish conditions, requirements, or other limitations on the activities of a digital commodity exchange and its affiliate permitted pursuant to subparagraph (B) that are necessary for the protection of customers, the promotion of innovation, or the maintenance of fair, orderly, and efficient markets.(D) Notice requirement.— In order for a digital commodity exchange or any affiliate of a digital commodity exchange to engage in trading on the affiliated exchange pursuant to subsection (B), notice must be given to the Commission that shall enumerate how any proposed activity is consistent with the exceptions in subsection (B) and the purposes of this Act.(c) Core principles for digital commodity exchanges.—(1) Compliance with core principles.—(A) In general.— To be registered, and maintain registration, as a digital commodity exchange, a digital commodity exchange shall comply with—(i) the core principles described in this subsection; and(ii) any requirement that the Commission may impose by rule or regulation pursuant to section 8a(5).(B) Reasonable discretion of a digital commodity exchange.— Unless otherwise determined by the Commission by rule or regulation, a digital commodity exchange described in subparagraph (A) shall have reasonable discretion in establishing the manner in which the digital commodity exchange complies with the core principles described in this subsection.(2) Compliance with rules.— A digital commodity exchange shall—(A) establish and enforce compliance with any rule of the digital commodity exchange, including—(i) the terms and conditions of the trades traded or processed on or through the digital commodity exchange; and(ii) any limitation on access to the digital commodity exchange;(B) establish and
The bill says: The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended by inserting after section 5h the following:
Bill text · Current law (7 U.S.C. 1)
7 U.S.C. 1added 5jby H.R. 3633 Sec. 405
5j. Qualified digital asset custodians.—(a) In general.— A person is a qualified digital asset custodian for purposes of this Act if the person—(1) holds digital assets on behalf of a person registered under this Act or a customer of a person registered under this Act; and(2) is in compliance with subsections (b) and (c).(b) Supervision requirement.— A person is in compliance with this subsection if the person is subject to—(1) 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(2) adequate supervision and appropriate regulation for custody and safekeeping of digital assets by—(A) a State bank supervisor (within the meaning of section 3 of the Federal Deposit Insurance Act);(B) a State officer, agency, or other entity which has primary regulatory authority over nondepository State trust companies;(C) a State credit union supervisor, as defined under section 6003 of the Anti-Money Laundering Act of 2020; or(D) an appropriate foreign governmental authority in the home country of such person.(c) Other requirements.— A person shall be in compliance with this subsection if:(1) Not otherwise prohibited.— The person has not been prohibited by its supervisor from engaging in an activity with respect to the custody and safekeeping of digital assets.(2) Information sharing.—(A) In general.— The person shares information with the Commission on request and complies with such requirements for periodic sharing of information regarding customer accounts that the person 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.(B) Provision of information.— If the person is subject to regulation and examination by an appropriate Federal banking agency, the person may satisfy any information request described in subparagraph (A) 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 person.(3) Rulemaking for CFTC entities.—(A) In general.— The Commission shall prescribe rules to permit a person registered with the Commission to be a qualified digital asset custodian in compliance with this section.(B) Content.— In prescribing the rules under subparagraph (A), the Commission shall require a person registered with the Commission to—(i) implement requirement consistent with the requirements in subsection (d)(1);(ii) establish sufficient system safeguards;(iii) prevent or mitigate conflicts of interest, as appropriate; and(iv) establish separate governance arrangements for the custodial function of the entity.(d) Adequate supervision and appropriate regulation.—(1) In general.— For purposes of subsection (b), the terms adequate supervision and appropriate regulation 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—(A) 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 person;(B) hold capital sufficient for the financial integrity of the person;(C) protect customer assets;(D) establish and maintain books and records regarding the business of the person;(E) submit financial statements and audited financial statements to the applicable supervisor described in subsection (b);(F) provide disclosures to the applicable supervisor described in subsection (b) regarding actions, proceedings, and other items as determined by the supervisor;(G) maintain and enforce policies and procedures for compliance with applicable State and Federal laws, including those related to anti-money laundering and cybersecurity;(H) establish a business continuity plan to ensure functionality in cases of disruption; and(I) establish policies and procedures to resolve complaints.(2) Rulemaking with respect to definitions.—(A) In general.— For purposes of this section, the Commission may, by rule, further define the terms adequate supervision and appropriate regulation as necessary and appropriate for the protection of customers, and consistent with the purposes of this Act.(B) Existing digital asset custodians.— A trust company operating as a digital asset custodian before the effective date of a rulemaking under subparagraph (A) is deemed subject to adequate supervision and appropriate regulation if—(i) the trust company is expressly permitted by a State bank supervisor to engage in the custody and safekeeping of digital assets;(ii) the State bank supervisor has established licensing, examination, and supervisory processes that require the trust company to, at a minimum, meet the conditions described in subparagraphs (A) through (I) of paragraph (1); and(iii) the trust company is in good standing with its State bank supervisor.(C) Transition period for certain custodians.— In implementing the rulemaking under subparagraph (A), the Commission shall provide a transition period of not less than 2 years for any trust company that is deemed subject to adequate supervision and appropriate regulation under subparagraph (B) on the effective date of the rulemaking.(e) Authority to temporarily suspend standards.— 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.
The bill says: The Commodity Exchange Act (7 U.S.C. 1 et seq.), as amended by the preceding provisions of this Act, is amended by inserting after section 5i the following:
Bill text · Current law (7 U.S.C. 1)
7 U.S.C. 1added 4uby H.R. 3633 Sec. 406
4u. Registration and regulation of digital commodity brokers and dealers.—(a) Registration.—(1) Requirement.— 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.(2) Additional registration.—(A) Rules.— In order to foster the development of fair and orderly markets, protect customers, and promote responsible innovation, the Commission—(i) shall 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;(ii) shall prescribe rules to address conflicts of interests and the activities of the entity; and(iii) may after an analysis of the risks and benefits, prescribe rules to provide for portfolio margining.(B) With membership in a registered futures association.— 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.(b) Requirements.—(1) In general.— A person shall register as a digital commodity broker or digital commodity dealer by filing a registration application with the Commission.(2) Contents.—(A) In general.— The application 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.(B) Continual reporting.— 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.(3) Statutory disqualification.— 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.(c) Rulemaking.—(1) In general.— The Commission shall prescribe such rules applicable to registered digital commodity brokers and registered digital commodity dealers as are appropriate to carry out this section, including rules in the public interest that limit the activities of digital commodity brokers and digital commodity dealers.(2) Financing agreements.—(A) In general.— The Commission shall prescribe rules and regulations applicable to digital commodity brokers or digital commodity dealers which shall set forth minimum requirements related to disclosure, recordkeeping, margin financing arrangements, rehypothecation, capital, reporting, business conduct, documentation, and supervision of employees and agents, in connection with—(i) an agreement described in section 2(c)(2)(D)(iv); or(ii) any other margined, leveraged, or financing arrangement for the purchase or sale of a digital commodity with an eligible contract participant.(B) Specific authority.— Except as prohibited in section 2(c)(2)(G)(iii), the Commission may also make, promulgate, and enforce such rules and regulations as, in the judgment of the Commission, are reasonably necessary to effectuate any of the provisions of, or to accomplish any of the purposes of, this Act in connection with an agreement referred to in subparagraph (A) of this paragraph.(d) Capital requirements.—(1) In general.— 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—(A) meet, and continue to meet the obligations of such a registrant; and(B) fulfill obligations to customers or counterparties for any margined, leveraged, or financed transactions.(2) Futures commission merchants and other dealers.— 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 (15 U.S.C. 78a et seq.).(e) Reporting and recordkeeping.— Each digital commodity broker and digital commodity dealer—(1) shall 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;(2) shall keep books and records in such form and manner and for such period as may be prescribed by the Commission by rule or regulation; and(3) shall keep the books and records open to inspection and examination by any representative of the Commission.(f) Daily trading records.—(1) In general.— 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 may require by rule or regulation.(2) Informati
The bill says: The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended by inserting after section 4t the following:
Bill text · Current law (7 U.S.C. 1)
7 U.S.C. 6krenumberedby H.R. 3633 Sec. 407(a)
The bill says: by redesignating subsections (4) through (6) as subsections (5) through (7), respectively;
Bill text · Current law (7 U.S.C. 6k)
7 U.S.C. 6kadded (4)by H.R. 3633 Sec. 407(a)
(4) 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. It shall be unlawful for a digital commodity broker or a digital commodity dealer to permit such a person 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.
The bill says: by inserting after subsection (3) the following:
Bill text · Current law (7 U.S.C. 6k)
7 U.S.C. 6k(5)changedby H.R. 3633 Sec. 407(a)
The bill says: in subsection (5) (as so redesignated), by striking "or of a commodity trading advisor" and inserting "of a commodity trading advisor, of a digital commodity broker, or of a digital commodity dealer".
Bill text · Current law (7 U.S.C. 6k)
7 U.S.C. 1achangedby H.R. 3633 Sec. 407(b)
The bill says: The Commodity Exchange Act (7 U.S.C. 1a et seq.) is amended by striking "section 4k(6)" each place it appears and inserting "section 4k(7)".
Bill text · Current law (7 U.S.C. 1a)
7 U.S.C. 6m(3)(A)changedby H.R. 3633 Sec. 408(a)
The bill says: by striking "any commodity trading advisor" and inserting "a commodity pool operator or commodity trading advisor"; and
Bill text · Current law (7 U.S.C. 6m)
7 U.S.C. 6m(3)(A)changedby H.R. 3633 Sec. 408(a)
The bill says: by striking "acting as a commodity trading advisor" and inserting "acting as a commodity pool operator or commodity trading advisor"; and
Bill text · Current law (7 U.S.C. 6m)
7 U.S.C. 6m(3)(C)changedby H.R. 3633 Sec. 408(a)
The bill says: in subparagraph (C), by inserting "digital commodities," after "physical commodities,".
Bill text · Current law (7 U.S.C. 6m)
7 U.S.C. 6madded (4)by H.R. 3633 Sec. 408(b)
(4) Exemptive authority.— The Commission shall promulgate rules to provide appropriate exemptions for commodity pool operators and commodity trading advisors, to provide relief from duplicative, conflicting, or unduly burdensome requirements or to promote responsible innovation, to the extent the exemptions foster the development of fair and orderly cash or spot digital commodity markets, are necessary or appropriate in the public interest, and are consistent with the protection of customers.
The bill says: Section 4m of such Act (7 U.S.C. 6m) is amended by adding at the end the following:
Bill text · Current law (7 U.S.C. 6m)
7 U.S.C. 1added 4vby H.R. 3633 Sec. 409
4v. Decentralized finance activities not subject to this Act.—(a) In general.— Notwithstanding any other provision of this Act, 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 decentralized finance trading protocol:(1) Compiling network transactions or relaying, searching, sequencing, validating, or acting in a similar capacity.(2) Providing computational work, operating a node or oracle service, or procuring, offering, or utilizing network bandwidth, or other similar incidental services.(3) Providing a user-interface that enables a user to read, and access data about a blockchain system.(4) Developing, publishing, or otherwise distributing a blockchain system or a decentralized finance messaging system.(5) 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.(6) 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.(b) Exceptions.— Subsection (a) shall not be interpreted to apply to the anti-fraud, anti-manipulation, or false reporting enforcement authorities of the Commission.
The bill says: The Commodity Exchange Act (7 U.S.C. 1 et seq.), as amended by the preceding provisions of this Act, is amended by inserting after section 4u the following:
Bill text · Current law (7 U.S.C. 1)
7 U.S.C. 1added 4wby H.R. 3633 Sec. 411
4w. Limitation on transactions by blockchain control persons.—(a) Limitation.— It shall be unlawful for a blockchain control person with respect to a blockchain system certified as a mature blockchain system in accordance with section 42 of the Securities Exchange Act of 1934 to sell a unit of a digital commodity related to the blockchain system unless the person files notice with the Commission, in a form and manner determined by the Commission, that the person has or intends to obtain an authority described in subsection (b)(1) with respect to the blockchain system, and complies with rules adopted by the Commission that require—(1) disclosure of information to the Commission and the public about the material activities, as determined by the Commission, of the blockchain control person; and(2)(A) the use of a digital commodity broker to effect the sale; or(B) such other sales restrictions applicable to the blockchain control person, or any affiliated blockchain control person, to prevent manipulation and distortion of the value of the digital commodity and promote further maturity of the blockchain system to which the digital commodity relates.(b) Definitions.— In this section:(1) Blockchain control person.— The term blockchain control person means, with respect to a blockchain system, any person or group of persons under common control, other than a decentralized governance system, who—(A) has the unilateral 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 or its related digital commodity; or(B) has the unilateral authority to direct the voting, in the aggregate, of 20 percent or more of the outstanding voting power of the blockchain system by means of a related digital commodity, nodes or validators, a decentralized governance system, or otherwise, in a blockchain system which can be altered by a voting system.(2) Affiliated blockchain control person.— The term affiliated blockchain control person means any person directly or indirectly controlling, controlled by, or under common control with a blockchain control person, as the Commission by rule or regulation, may determine will effectuate the purposes of this section.
The bill says: The Commodity Exchange Act (7 U.S.C. 1 et seq.), as amended the preceding provisions of this Act, is amended by inserting after section 4v the following:
Bill text · Current law (7 U.S.C. 1)
7 U.S.C. 1added 4xby H.R. 3633 Sec. 412(1)
4x. Trading requirements for other tradable assets.—(a) Limitation.— A contract of sale of a tradable asset shall not be offered, solicited, traded, facilitated, executed, cleared, reported, or otherwise dealt in, on or subject to the rules of a registered entity, or by any other entity registered with the Commission, except in accordance with subsection (b).(b) Requirements.—(1) Treatment of tradable assets.— A contract of sale of a tradable asset that is offered, solicited, traded, facilitated, executed, cleared, reported, or otherwise dealt in on or subject to the rules of a registered entity, or by any other entity registered with the Commission, shall be treated as a digital commodity for purposes of this Act.(2) Additional rulemaking authority.— In addition to the other requirements of this Act, the Commission may, by rule or regulation, impose additional obligations on any person registered under this Act offering, soliciting, trading, facilitating, executing, clearing, reporting, or otherwise dealing in a contract of sale of a tradable asset, or class thereof, pursuant to paragraph (1) as are necessary for the protection of customers, the promotion of innovation, and the maintenance of fair, orderly, and efficient markets, including additional obligations related to—(A) disclosure;(B) recordkeeping;(C) capital;(D) reporting;(E) business conduct;(F) documentation;(G) supervision of employees; and(H) segregation.(c) Tradable asset defined.— In this section, the term "tradable asset" means a digital asset other than—(1) a digital commodity that is treated as such other than by reason of subsection (b)(1) of this section; or(2) a digital asset excluded from the definition of digital commodity pursuant to subclause (I) through (VII) of section 1a(16)(F)(iii).
The bill says: by inserting after section 4w the following:
Bill text · Current law (7 U.S.C. 1)
7 U.S.C. 1added 6eby H.R. 3633 Sec. 412(2)
6e. Prohibition on trading certain digital assets.—(a) In general.— A contract of sale of a digital commodity or tradable asset (as defined in section 4x) shall not be offered, solicited, traded, facilitated, executed, cleared, reported, or otherwise dealt in on or subject to the rules of a registered entity, or by any other entity registered with the Commission, if the primary purpose of the digital commodity or tradable asset is to be used to—(1) commit fraud or market manipulation;(2) further a scheme found in a final action by a court of competent jurisdiction to be in violation of campaign finance or government ethics laws; or(3) engage in any other conduct that would result in abusive practices or be disruptive to market integrity.(b) Guidance on fraudulent, manipulative, or disruptive tradable assets.— The Commission may, after public notice and comment, issue guidance establishing criteria for determining if the primary purpose of a digital commodity or tradable asset (as so defined) is to be used to commit fraud or market manipulation, or engage in any other conduct that would result in abusive practices or be disruptive to market integrity.
The bill says: by inserting after section 6d the following:
Bill text · Current law (7 U.S.C. 1)
15 U.S.C. 78dadded (k)by H.R. 3633 Sec. 502
(k) Strategic Hub for Innovation and Financial Technology.—(1) Establishment.— Not later than 180 days after the date of the enactment of this subsection, the Securities and Exchange Commission shall establish a committee to be known as the Strategic Hub for Innovation and Financial Technology (referred to in this subsection as the "FinHub") to support engagement on emerging technologies in the financial sector.(2) Members.— The composition of FinHub shall be determined by the Commission, drawing from relevant divisions as appropriate, including the Division of Trading and Markets, Division of Corporate Finance, and Division of Investment Management.(3) Responsibilities.— FinHub shall—(A) serve as a resource for the Commission on emerging financial technology advancements;(B) engage with market participants working on emerging financial technologies; and(C) facilitate communication between the Commission and businesses working in emerging financial technology fields with information on the Commission, its rules, and regulations.(4) Report to the Commission.—(A) In general.— Not later than October 31 of each year after 2025, FinHub shall provide an annual summary of its engagement activities to the Commission, which shall be included in the Commission’s annual report to Congress.(B) Confidentiality.— Each report submitted under this paragraph shall not contain confidential information.
The bill says: Section 4 of the Securities Exchange Act of 1934 (15 U.S.C. 78d) is amended by adding at the end the following:
Bill text · Current law (15 U.S.C. 78d)
7 U.S.C. 22added (c)by H.R. 3633 Sec. 503(a)
(c) LabCFTC.—(1) Establishment.— There is established in the Commission LabCFTC.(2) Purpose.— The purposes of LabCFTC are to—(A) promote responsible financial technology innovation and fair competition for the benefit of the American public;(B) serve as an information platform to inform the Commission about new financial technology innovation; and(C) provide outreach to financial technology innovators to discuss their innovations and the regulatory framework established by this Act and the regulations promulgated thereunder.(3) Director.— LabCFTC shall have a Director, who shall be appointed by the Commission and serve at the pleasure of the Commission. Notwithstanding section 2(a)(6)(A), the Director shall report directly to the Commission and perform such functions and duties as the Commission may prescribe.(4) Duties.— LabCFTC shall—(A) advise the Commission with respect to rulemakings or other agency or staff action regarding financial technology;(B) provide internal education and training to the Commission regarding financial technology;(C) advise the Commission regarding financial technology that would bolster the Commission’s oversight functions;(D) engage with academia, students, and professionals on financial technology issues, ideas, and technology relevant to activities under this Act;(E) provide persons working in emerging technology fields with information on the Commission, its rules and regulations, and the role of a registered futures association; and(F) encourage persons working in emerging technology fields to engage with the Commission and obtain feedback from the Commission on potential regulatory issues.(5) Report to Congress.—(A) In general.— Not later than October 31 of each year after 2025, LabCFTC shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on its activities.(B) Contents.— Each report required under paragraph (1) shall include—(i) the total number of persons that met with LabCFTC;(ii) a summary of general issues discussed during meetings with the person;(iii) information on steps LabCFTC has taken to improve Commission services, including responsiveness to the concerns of persons;(iv) recommendations made to the Commission with respect to the regulations, guidance, and orders of the Commission and such legislative actions as may be appropriate; and(v) any other information determined appropriate by the Director of LabCFTC.(C) Confidentiality.— A report under paragraph (A) shall abide by the confidentiality requirements in section 8.(6) Records and engagement.— The Commission shall—(A) maintain systems of records to track engagements with the public through LabCFTC;(B) store communications and materials received in connection with any such engagement in accordance with Commission policies and procedures on data retention and confidentiality; and(C) take reasonable steps to protect any confidential or proprietary information received through LabCFTC engagement.
The bill says: Section 18 of the Commodity Exchange Act (7 U.S.C. 22) is amended by adding at the end the following:
Bill text · Current law (7 U.S.C. 22)
7 U.S.C. 2(a)(6)(A)changedby H.R. 3633 Sec. 503(b)
The bill says: by striking "paragraph and in" and inserting "paragraph,"; and
Bill text · Current law (7 U.S.C. 2)
7 U.S.C. 2(a)(6)(A)changedby H.R. 3633 Sec. 503(b)
The bill says: by inserting "and section 18(c)(3)," before "the executive".
Bill text · Current law (7 U.S.C. 2)
12 U.S.C. 411added (18)by H.R. 3633 Sec. 602
(18)(A) A Federal reserve bank may not—(i) offer financial products or services directly to an individual;(ii) maintain an account on behalf of an individual; or(iii) issue a central bank digital currency, or any digital asset that is substantially similar under any other name or label.(B) In this paragraph, the term "central bank digital currency" has the meaning given that term under section 10(11)(D).
The bill says: Section 16 of the Federal Reserve Act (12 U.S.C. 411 et seq.) is amended by adding at the end the following new paragraph:
Bill text · Current law (12 U.S.C. 411)
12 U.S.C. 241added (11)by H.R. 3633 Sec. 604
(11) Prohibition with respect to central bank digital currency.—(A) In general.— The Board of Governors of the Federal Reserve System may not test, study, develop, create, or implement a central bank digital currency, or any digital asset that is substantially similar under any other name or label.(B) Monetary policy.— The Board of Governors of the Federal Reserve System and the Federal Open Market Committee may not use a central bank digital currency to implement monetary policy, or any digital asset that is substantially similar under any other name or label.(C) Exception.— Subparagraph (A) and sections 16(18)(A)(iii) and 16(19)(A) may not be construed to prohibit any dollar-denominated currency that is open, permissionless, and private, and fully preserves the privacy protections of United States coins and physical currency.(D) Central bank digital currency defined.— In this paragraph, the term "central bank digital currency" means a form of digital money or monetary value that is—(i) denominated in the national unit of account;(ii) a direct liability of the Federal Reserve System; and(iii) widely available to the general public.
The bill says: Section 10 of the Federal Reserve Act (12 U.S.C. 241 et seq.) is amended by inserting before paragraph (12) the following:
Bill text · Current law (12 U.S.C. 241)