,i  #aaf? ,,congress  #b;d ,session  ,h4
 ,r4 #hcgh  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,septemb] #bd1        
#bjbj,mr4 ,emm] 7= himself1 ,mr4        
,conaway1 ,mr4 ,soto1 & ,mr4 ,khanna7   
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,f9ancial ,s]vices  ,a 
,,bill  ,to am5d ! securities laws to   
exclude inve/m5t contract assets f !    
def9ition ( a security4  #a4 ,%ort title
 ,?is ,act may be cit$ z ! ,securities  
,cl>ity ,act4  #b4 ,s5se ( ,congress2   
purpose  7a7 ,s5se ( ,congress ,x is !  
s5se ( ,congress t-- 7#a7 among ! ways t
 p>ticipants 9 ! digital asset indu/ry h
 rais$ capital & e>n$ rev5ue is ?r\gh   
arrangem5ts 9 :i* inve/ors provide funds
 = ! developm5t ( block*a9-bas$         
protocols 9 ex*ange = digital assets or 
! future deliv]y ( digital assets to be 
us$ 9 ^? protocols2  7#b7 al?\gh c]ta9 (
 ^? fundrais+ arrangem5ts may be deem$  
to be inve/m5t contracts )9 ! mean+ giv5
 to t t]m 9 section #b7;a7 ( !          
,securities ,act ( #aicc 7! ,securities 

,act71 ! und]ly+ assets sold pursuant to
 ^! arrangem5ts are frequ5tly n !mselves
 inh]5tly securities z def9$ 9 section  
#b7;a7 ( ! ,securities ,act &1 l o!r    
assets sold pursuant to inve/m5t        
contracts 9 ! pa/1 d n become securities
 z s def9$ m]ely because !y are sold    
pursuant to an inve/m5t contract2  7#c7 
"u ,,sec v4 ,w4,j4 ,h[ey ,co41 #cbh     
,u4,s4 #bic 7#aidf71 & its prog5y1 !    
,f$]al c\rts h consi/5tly held t an     
inve/m5t contract1 = purposes ( !       
,securities ,act1 means a contract1     
transaction1 or s*eme :]eby a p]son     
inve/s 8 money 9 a common ent]prise & is
 l$ to expect pr(its solely f ! ef=ts ( 
! promot] or a ?ird p>ty1 & h n endors$ 
! notion t an asset und]ly+ an inve/m5t 
contract 7= example1 ! orange groves    
sold 9 ,h[ey7 is also conf]r$ security  
/atus m]ely z a result ( its be+ sold   
pursuant to ! relevant contract1        
transaction1 or s*eme2  7#d7 al?\gh !   
di/9ction betwe5 an inve/m5t contract1  
:i* is a security1 & ! assets sold      

pursuant to x _h be5 well-settl$ =      
purposes ( section #b7;a7 ( !           
,securities ,act1 ! two h be5           
unnecess>ily conflat$ 9 ! context (     
digital assets2 &  7#e7 ?is new approa*1
 :i* conflates an inve/m5t contract & ! 
asset sold pursuant to t contract or    
s*eme1 diff]s f ! approa* tak5 9 _m o!r 
major jurisdictions ar\nd ! _w1 has     
disc\rag$ developm5t ( ! digital asset  
sector 9 ! ,unit$ ,/ates1 & has h9d]$   
innovation 9 t indu/ry "h )\t provid+   
concomitant b5efits to ^? :o ent] into  
inve/m5t contracts = ! purpose ( acquir+
 digital assets4  7b7 ,purpose ,!       
purpose ( ?is ,act is to cl>ify & codify
 t an asset sold pursuant to an inve/m5t
 contract1 :e!r tangible or intangible  
7includ+ an asset 9 digital =m71 t is n 
o!rwise a security "u ! ,act1 does n    
become a security z a result ( be+ sold 
or o!rwise transf]r$ pursuant to an     
inve/m5t contract4  #c4 ,treatm5t (     
inve/m5t contract assets  7a7           
,securities ,act ( #aicc ,section #b7;a7

 ( ! ,securities ,act ( #aicc 7#ae      
,u4,s4,c4 #gg;b7a77 is am5d$-- 7#a7 9   
p>agraph 7#a71 by add+ at ! end !       
foll[+3 ,! t]m security does n include  
an inve/m5t contract asset42 &  7#b7 by 
add+ at ! end ! foll[+3  7#bj7 ,! t]m   
inve/m5t contact asset means an asset1  
:e!r tangible or intangible1 includ+    
assets 9 digital =m-- 7,a7 sold or      
o!rwise transf]r$1 or int5d$ to be sold 
or o!rwise transf]r$1 pursuant to an    
inve/m5t contract2 &  7,b7 t is n       
o!rwise a security pursuant to ! fir/   
s5t5ce ( p>agraph 7#a74  4  7b7         
,inve/m5t ,advis]s ,act ( #aidj ,section
 #bjb7;a77#ah7 ( ! ,inve/m5t ,advis]s   
,act ( #aidj 7#ae ,u4,s4,c4             
#hj;b-#b7;a77#ah77 is am5d$ by add+ at !
 end ! foll[+3 ,! t]m security does n   
include an inve/m5t contract asset 7z   
su* t]m is def9$ "u section #b7;a7 ( !  
,securities ,act ( #aicc744  7c7        
,inve/m5t ,company ,act ( #aidj ,section
 #b7;a77#cf7 ( ! ,inve/m5t ,company ,act
 ( #aidj 7#ae ,u4,s4,c4                 

#hj;a-#b7;a77#cf77 is am5d$ by add+ at !
 end ! foll[+3 ,! t]m security does n   
include an inve/m5t contract asset 7z   
su* t]m is def9$ "u section #b7;a7 ( !  
,securities ,act ( #aicc744  7d7        
,securities ,ex*ange ,act ( #aicd       
,section #c7;a77#aj7 ( ! ,securities    
,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4    
#gh;c7a77#aj77 is am5d$ by add+ at ! end
 ! foll[+3 ,! t]m security does n       
include an inve/m5t contract asset 7z   
su* t]m is def9$ "u section #b7;a7 ( !  
,securities ,act ( #aicc744  7e7        
,securities ,inve/or ,protection ,act ( 
#aigj ,section #af7ad7 ( ! ,securities  
,inve/or ,protection ,act ( #aigj 7#ae  
,u4,s4,c4 #ghlll7#ad77 is am5d$ by add+ 
at ! end ! foll[+3 ,! t]m security does 
n include an inve/m5t contract asset 7z 
su* t]m is def9$ "u section #b7;a7 ( !  
,securities ,act ( #aicc744