,i  #aag? ,,congress  #a/ ,session  ,h4 
,r4 #edif  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,octob] #e1 #bjba,mr4 
,mc,henry 7= himself1 ,mr4 ,davidson1 & 
,mr4 ,budd7 introduc$ ! foll[+ bill2 :i*
 0 ref]r$ to ! ,committee on ,f9ancial  
,s]vices  ,a ,,bill  ,to am5d !         
,securities ,act ( #aicc to provide a   
safe h>bor = transactions 9 c]ta9 tok5s1
 & = o!r purposes4  #a4 ,%ort title ,?is
 ,act may be cit$ z ! ,cl>ity = ,digital
 ,tok5s ,act ( #bjba4  #b4 ,tok5 safe   
h>bor  7a7 ,9 g5]al ,! ,securities ,act 
( #aicc 7#ae ,u4,s4,c4 #gg;d7 is am5d$  
by ins]t+ aft] section #d;,a ! foll[+3  
#d;,b4 ,tok5 safe h>bor  7a7 ,9 g5]al   
,except z provid$ "u subsection 7d71 ?is
 title does n apply to any (f]1 sale1 or
 o!r transaction involv+ a tok5 if !    
foll[+ conditions are satisfi$ by !     
initial developm5t team ( su* tok53 7#a7
 ,! initial developm5t team int5ds = !  
network on :i* ! tok5 functions to rea* 
network maturity n lat] ?an ! lat] (--  
7,a7 ! date t is ?ree ye>s aft] ! fir/  

sale ( su* tok52 or  7,b7 ! date t is   
?ree ye>s aft] ! effective date ( ?is   
section4  7#b7 ,! tok5 is (f]$ & sold = 
! purpose ( facilitat+ access to1       
p>ticipation on1 or ! developm5t ( !    
network4  7#c7 ,! initial developm5t    
team complies )-- 7,a7 ! disclosure     
requirem5ts "u subsection 7b72  7,b7 !  
notice ( reliance on ! safe h>bor fil+  
requirem5ts "u subsection 7c72 &  7,c7 !
 exit report fil+ requirem5ts "u        
subsection 7f74  7b7 ,disclosure        
requirem5ts ,! initial developm5t team  
%all disclose ! foll[+ in=mation on a   
freely accessible public website3 7#a7  
,initial disclosures ,prior to fil+ a   
notice ( reliance "u subsection 7c71 & )
 su* in=mation updat$ z soon z          
practicable aft] any mat]ial *ange3 7,a7
 ,s\rce code ,a text li/+ ( comm&s to be
 compil$ or assembl$ into an executable 
comput] program us$ by network          
p>ticipants to access ! network1 &      
confirm transactions4  7,b7 ,transaction
 hi/ory ,a n>rative description ( ! /eps

 necess>y to indep5d5tly access1 se>*1 &
 v]ify ! transaction hi/ory ( ! network4
  7,c7 ,tok5 economics ,a n>rative      
description ( ! purpose ( ! network1 !  
protocol1 & its op]ation1 includ+-- 7i7 
in=mation expla9+ ! laun* & supply      
process1 includ+ ! numb] ( tok5s to be  
issu$ 9 an initial allocation1 ! total  
numb] ( tok5s to be creat$1 ! release   
s*$ule = ! tok5s1 & ! total numb] (     
tok5s out/&+2  7ii7 in=mation detail+   
any applicable cons5sus me*anism or     
process = validat+ transactions1 me?od (
 g5]at+ or m9+ tok5s1 & any process =   
burn+ or de/roy+ tok5s on ! network2    
7iii7 an explanation ( gov]nance        
me*anisms = implem5t+ *anges to !       
network or protocol2 &  7iv7 suffici5t  
in=mation = a ?ird p>ty to create a tool
 = v]ify+ ! transaction hi/ory ( ! tok54
  7,d7 ,plan ( developm5t ,! curr5t /ate
 & timel9e = ! developm5t ( ! network to
 %[ h[ & :5 ! initial developm5t team   
int5ds to a*ieve network maturity4  7,e7
 ,prior tok5 sales ,= tok5 sales        

complet$ prior to fil+ a notice (       
reliance "u subsection 7c71 ! date (    
sale1 numb] ( tok5s sold1 numb] ( tok5  
pur*as]s1 any limitations or re/rictions
 on ! transf]ability ( tok5s sold1 price
 p] tok51 & ! type & am\nt (            
consid]ation receiv$4  7,f7 ,initial    
developm5t team & c]ta9 tok5 hold]s  7i7
 ,! names & relevant exp]i5ce1          
qualifications1 attributes1 & skills (  
ea* p]son :o is a memb] ( ! initial     
developm5t team4  7ii7 ,! numb] ( tok5s 
or rights to tok5s own$ by ea* memb] ( !
 initial developm5t team & a description
 ( any limitations or re/rictions on !  
transf]ability ( tok5s held by su*      
p]sons4  7iii7 ,if any memb] ( ! initial
 developm5t team or relat$ p]son has a  
"r to obta9 tok5s 9 ! future1 9 a mann] 
t is di/9ct f h[ any ?ird p>ty c\ld     
obta9 tok5s1 ! id5tity ( su* p]son & a  
description ( h[ su* tok5s may be       
obta9$4  7,g7 ,trad+ plat=ms ,! "n ( any
 second>y trad+ plat=ms on :i* ! tok5   
trades1 to ! ext5t kn[n4  7,h7 ,relat$  

p]son transactions ,a description ( any 
mat]ial transaction1 or any propos$     
mat]ial transaction1 9 :i* ! initial    
developm5t team is a p>ticipant & 9 :i* 
"o or m relat$ p]sons p>ticipate & _h or
 w h a direct or indirect mat]ial       
int]e/4 ,! description %all id5tify !   
nature ( ! transaction1 ! relat$ p]sons1
 ! basis on :i* ! p]sons are relat$     
p]sons1 & ! approximate value ( ! am\nt 
involv$ 9 ! transaction4  7,i7 ,w>n+ to 
tok5 pur*as]s ,a /atem5t t ! pur*ase (  
tok5s involves a high degree ( risk & ! 
pot5tial loss ( money4  7#b7 ,semiannual
 disclosures  7,a7 ,9 g5]al ,e six      
mon?s1 an updat$ plan ( developm5t      
describ$ "u p>agraph 7#a77;,d74  7,b7   
,tim+ ( disclosures ,ea* disclosure     
requir$ "u subp>agraph 7,a7 %all be     
made-- 7i7 )9 #cj cal5d> days aft] ! end
 ( ! applicable semiannual p]iod2 &     
7ii7 until ! e>li] (-- 7,i7 ! safe h>bor
 end date2 or  7,,ii7 ! date on :i* !   
initial developm5t team det]m9es t      
network maturity has be5 rea*$4  7#c7   

,po/-fil+ tok5 sale disclosures ,= tok5 
sales complet$ aft] fil+ a notice (     
reliance "u subsection 7c71 ! date (    
sale1 numb] ( tok5s sold1 numb] ( tok5  
pur*as]s1 any limitations or re/rictions
 on ! transf]ability ( tok5s sold1 price
 p] tok51 & ! type & am\nt (            
consid]ation receiv$4  7#d7 ,ongo+      
disclosures ) respect to sales ( tok5s  
by initial developm5t team ,ea* "t a    
memb] ( ! initial developm5t team sells 
at lea/ five p]c5t ( ! memb]'s tok5s t 7
 disclos$ pursuant to p>agraph          
7#a77;,f77ii7 ov] any p]iod ( "t be=e ! 
safe h>bor end date1 a disclosure ( !   
date ( ! sale1 ! numb] ( tok5s sold1 & !
 id5tity ( ! sell]4  7c7 ,notice (      
reliance on safe h>bor fil+ requirem5ts 
7#a7 ,9 g5]al ,! initial developm5t team
 %all file ) ! ,commission a notice (   
reliance on ! safe h>bor provid$ "u ?is 
section prior to ! date ( ! fir/ tok5   
sold 9 reliance on ! safe h>bor1 except 
z expressly provid$ "u subsection 7h7 ) 
respect to tok5s sold be=e ! date on :i*

 ?is section takes effect4  7#b7        
,cont5ts ,! notice describ$ "u p>agraph 
7#a7 %all conta9 ! foll[+ in=mation3    
7,a7 ,! "n ( ea* p]son on ! initial     
developm5t team4  7,b7 ,an atte/ation by
 a p]son duly au?oriz$ by ! initial     
developm5t team t ! initial developm5t  
team h compli$ ) ! requirem5ts ( ?is    
section4  7,c7 ,! website :]e disclosure
 requir$ "u subsection 7b7 may be       
access$4  7,d7 ,an email address at :i* 
! initial developm5t team c be contact$4
  7d7 ,limitation ,?is section %all h no
 effect on ! application ( section      
#ab7;a77#b7 or #ag4  7e7 ,duration (    
exemption ,) respect to tok5s1 ! relief 
provid$ by ?is section %all expire on ! 
lat] (-- 7#a7 ! date t is ?ree ye>s aft]
 ! date ( ! fir/ sale ( ! tok5s2 or     
7#b7 ! date t is ?ree ye>s aft] !       
effective date ( ?is section4  7f7 ,exit
 report fil+ requirem5ts ,on or be=e !  
safe h>bor end date1 ! initial          
developm5t team %all file an exit report
 ) ! ,commission conta9+ ! foll[+3 7#a7 

,dec5traliz$ networks ,if ! initial     
developm5t team det]m9es t network      
maturity has be5 rea*$ = a dec5traliz$  
network1 a legal analysis t includes--  
7,a7 a description ( ! ext5t to :i*     
dec5tralization has be5 rea*$ across a  
numb] ( dim5sions1 includ+ vot+ p[]1    
developm5t ef=ts1 & network p>ticipation
 &1 if applicable-- 7i7 examples (      
mat]ial engagem5t on network developm5t 
& gov]nance matt]s by p>ties unaffiliat$
 ) ! initial developm5t team2 &  7ii7   
explanations ( quantitative measurem5ts 
( dec5tralization2 &  7,b7 an           
explanation ( h[ ! initial developm5t   
team's pre-network maturity activities  
are di/+ui%able f ! team's ongo+        
involvem5t ) ! network1 includ+-- 7i7 a 
discussion ( ! ext5t to :i* ! initial   
developm5t team's cont9u+ activities are
 m limit$ 9 nature & _c reasonably be   
expect$ uniquely to drive an increase 9 
! value ( ! tok5s2  7ii7 a confirmation 
t ! initial developm5t team has no      
mat]ial in=mation ab\t ! network t is n 

publicly available2 &  7iii7 a          
description ( ! /eps tak5 to communicate
 to ! network ! nature & scope ( !      
initial developm5t team's cont9u+       
activities4  7#b7 ,functional networks  
,if ! initial developm5t team det]m9es t
 network maturity has be5 rea*$ = a     
functional network1 a legal analysis t  
includes-- 7,a7 a description ( !       
hold]s' use ( tok5s-- 7i7 = !           
transmission & /orage ( value on !      
network2  7ii7 = ! p>ticipation 9 an    
application runn+ on ! network2 or      
7iii7 o!rwise 9 a mann] consi/5t ) !    
utility ( ! network2 &  7,b7 an         
explanation ( h[ ! initial developm5t   
team's pre-network maturity m>ket+ ef=ts
 & ! team's ongo+ ef=ts w cont9ue to be 
focus$ on ! tok5's consumptive use1 & n 
on tok5 price appreciation4  7#c7 ,no   
network maturity ,if ! initial          
developm5t team det]m9es t network      
maturity has n be5 rea*$-- 7,a7 a       
description ( ! /atus ( ! project       
network & ! next /eps ! initial         

developm5t team int5ds to take2  7,b7   
contact in=mation = ! initial developm5t
 team t c be us$ by hold]s to           
communicate ) ! initial developm5t team2
 &  7,c7 a /atem5t ackn[l$g+ t ! initial
 developm5t team w regi/] ! tok5s z a   
class ( securities "u section #ab7;g7 ( 
! ,securities ,ex*ange ,act ( #aicd )9  
#abj days ( ! fil+ ( ! report "u ?is    
subsection4  7g7 ,transition p]iod =    
trad+ plat=ms ,no trad+ plat=m %all be  
subject to ! requirem5ts ( section #f ( 
! ,securities ,ex*ange ,act ( #aicd due 
to activity relat$ to ! trad+ ( tok5s   
subject to a det]m9ation describ$ "u    
subsection 7f77#c71 if ! trad+ plat=m   
prohibits su* trad+ )9 six mon?s ( su*  
det]m9ation4  7h7 ,tok5s previ\sly sold 
,if1 be=e ! date on :i* ?is section     
takes effect1 an initial developm5t team
 sold tok5s 7includ+ su* tok5s sold     
pursuant to a valid exemption f         
regi/ration or 9 violation ( section #e 
7z det]m9$ 9 a ,commission ord] pursuant
 to section #h;,a t does n id5tify any  

o!r violations ( ! ,f$]al securities    
laws771 ! initial developm5t team may   
make use ( ! safe h>bor provid$ "u ?is  
section1 if ! initial developm5t team   
files ! notice ( reliance describ$ "u   
subsection 7c7 z soon z practicable4    
7i7 ,def9ition ( qualifi$ pur*as] ,=    
purposes ( section #ah7;b77#c71 a       
qualifi$ pur*as] includes any p]son to  
:om tok5s are (f]$ or sold 9 reliance on
 ?is section4  7j7 ,disqualifications   
,?is section %all n apply to tok5s if ! 
initial developm5t team1 or any         
individual memb] ( ! initial developm5t 
team1 w\ld be subject to                
disqualification "u ,rule #ejf7;d7 7#ag 
,c4,f4,r4 #bcj4ejf7;d774  7k7           
,def9itions ,9 ?is subsection3 7#a7     
,initial developm5t team ,! t]m initial 
developm5t team means ea* p]son1 gr\p ( 
p]sons1 or entity t provides ! ess5tial 
manag]ial ef=ts = ! developm5t ( a      
network prior to rea*+ network maturity4
  7#b7 ,network ,! t]m network means a  
sy/em ( devices connect$ to ea* o!r to  

create & validate a l$g] ( transactions 
occurr+ )9 ! sy/em1 includ+ a sy/em (   
devices access+ & op]at+ a protocol t   
utilizes an exi/+ network = transaction 
creation & validation4  7#c7 ,network   
maturity ,! t]m network maturity means !
 /atus ( a dec5traliz$ or functional    
network t is a*iev$ :5 ! network meets  
ei!r ( ! foll[+3 7,a7 ,control ,!       
network is n economically or            
op]ationally controll$ & is n reasonably
 likely to be economically or           
op]ationally controll$ or unilat]ally   
*ang$ by any s+le p]son1 entity1 or gr\p
 ( p]sons or entities "u common control4
 ,a network ) respect to :i* ! initial  
developm5t team owns m ?an #bj p]c5t (  
tok5s or owns m ?an #bj p]c5t ( ! means 
( det]m9+ network cons5sus does n meet !
 requirem5ts ( ?is subp>agraph4  7,b7   
,functional ,! network is functional1 z 
demon/rat$ by ! use ( ! tok5s by tok5   
hold]s = ! transmission & /orage ( value
 on ! network1 ! p>ticipation 9 an      
application runn+ on ! network1 or      

o!rwise 9 a mann] consi/5t ) ! utility (
 ! network4  7#d7 ,relat$ p]son ,! t]m  
relat$ p]son means-- 7,a7 ! initial     
developm5t team2  7,b7 directors or     
advisors to ! initial developm5t team2 &
  7,c7 imm$iate family memb]s ( !       
individuals describ$ "u subp>agraph 7,a7
 or 7,b74  7#e7 ,safe h>bor end date ,! 
t]m safe h>bor end date means ! date t  
is ! end ( ! #c-ye> p]iod describ$ "u   
subsection 7e74  7#f7 ,tok5 ,! t]m tok5 
means a digital repres5tation ( value or
 rights t-- 7,a7 has a transaction      
hi/ory t-- 7i7 is record$ on a di/ribut$
 l$g]1 block*a91 or o!r publicly        
accessible & auditable digital data     
/ructure2  7ii7 has transactions        
confirm$ ?r\gh an indep5d5tly v]ifiable 
process2 &  7iii7 _c be easily modifi$1 
& :]e any modification is subject to !  
network cons5sus rules2  7,b7 is capable
 ( be+ transf]r$ betwe5 p]sons )\t an   
int]m$i>y p>ty2 &  7,c7 does n repres5t 
a f9ancial int]e/ 9 a c5traliz$ company1
 p>tn]%ip1 or fund1 includ+ an own]%ip  

or debt int]e/1 rev5ue %>e1 or          
entitlem5t to any int]e/ or divid5d     
paym5t4  4  7b7 ,am5dm5ts to !          
,securities ,ex*ange ,act ( #aicd  7#a7 
,def9ition ( ex*ange ,section #c7;a77#a7
 ( ! ,securities ,ex*ange ,act ( #aicd  
7#ae ,u4,s4,c4 #gh;c7a77#a77 is am5d$ by
 add+ at ! end ! foll[+3 ,! t]m ex*ange 
does n include a p]son1 organization1   
association1 or gr\p ( p]sons to ! ext5t
 su* p]son1 organization1 association1  
or gr\p ( p]sons con/itutes1 ma9ta9s1 or
 provides a m>ketplace or facilitates   
br++ toge!r pur*as]s & sell]s ( tok5s   
subject to a safe h>bor "u section #d;,b
 ( ! ,securities ,act ( #aicc1 or       
o!rwise p]=ms ) respect to su* tok5s !  
functions commonly p]=m$ by a /ock      
ex*ange z t t]m is g5]ally und]/ood44   
7#b7 ,def9ition ( brok] ,section        
#c7;a77#d7 ( ! ,securities ,ex*ange ,act
 ( #aicd 7#ae ,u4,s4,c4 #gh;c7a77#d77 is
 am5d$ by add+ at ! end ! foll[+3  7,g7 
,exception ) respect to c]ta9 tok5s ,!  
t]m brok] does n include a p]son to !   

ext5t ! p]son engages 9 ! bus9ess (     
effect+ transactions 9 tok5s subject to 
a safe h>bor "u section #d;,b ( !       
,securities ,act ( #aicc = ! acc\nt (   
o!rs4  4  7#c7 ,def9ition ( deal]       
,section #c7;a77#e7 ( ! ,securities     
,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4    
#gh;c7a77#e77 is am5d$ by add+ at ! end 
! foll[+3  7,d7 ,exception ) respect to 
c]ta9 tok5s ,! t]m deal] does n include 
a p]son to ! ext5t ! p]son engages 9 !  
bus9ess ( buy+ & sell+ tok5s subject to 
a safe h>bor "u section #d;,b ( !       
,securities ,act ( #aicc = su* p]son's  
own acc\nt ?r\gh a brok] or o!rwise4  4 
7#d7 ,def9ition ( cle>+ ag5cy ,section  
#c7;a77#bc77;,b7 ( ! ,securities        
,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4    
#gh;c7a77#bc77;,b77 is am5d$-- 7,a7 by  
/rik+ 1 or 7vi7 & ins]t+ 2 7vi72 &  7,b7
 by /rik+ ! p]iod at ! end & ins]t+ 2 or
 7vii7 a p]son1 organization1           
association1 or gr\p ( p]sons ) respect 
to activities specifi$ 9 subp>agraph    
7,a7 involv+ tok5s subject to a safe    

h>bor "u section #d;,b ( ! ,securities  
,act ( #aicc44  7#e7 ,def9ition (       
transf] ag5t ,section #c7;a77#be7 ( !   
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #gh;c7a77#be77 is am5d$-- 7,a7
 by /rik+ or any regi/]$ cle>+ ag5cy &  
ins]t+ 1 any regi/]$ cle>+ ag5cy2 &     
7,b7 by /rik+ ! p]iod at ! end & ins]t+ 
1 or any p]son1 organization1           
association1 or gr\p ( p]sons :o p]=ms  
su* functions solely ) respect to tok5s 
subject to a safe h>bor "u section #d;,b
 ( ! ,securities ,act ( #aicc44  7#f7   
,regi/ration exemption ,section         
#ab7;g77#b7 ( ! ,securities ,ex*ange    
,act ( #aicd 7#ae ,u4,s4,c4 #ghl7g77#b77
 is am5d$ by add+ at ! end ! foll[+3    
7,i7 any tok5 (f]$ & sold 9 reliance on 
a safe h>bor "u section #d;,b ( !       
,securities ,act ( #aicc4  4  7c7       
,am5dm5t to ! ,inve/m5t ,advis]s ,act ( 
#aidj ,section #bjb7;a77#aa7 ( !        
,inve/m5t ,advis]s ,act ( #aidj 7#ae    
,u4,s4,c4 #hj;b-#b7;a77#aa77 is am5d$ by
 add+ at ! end ! foll[+3 ,! t]m inve/m5t

 advis] does n include a p]son to !     
ext5t ! p]son advises o!rs ) respect to1
 or issues or promulgates analyses or   
reports conc]n+1 tok5s subject to a safe
 h>bor "u section #d;,b ( ! ,securities 
,act ( #aicc44  7d7 ,rulemak+ ,n lat]   
?an ! end ( ! #a-ye> p]iod beg9n+ on !  
date ( enactm5t ( ?is ,act1 !           
,securities & ,ex*ange ,commission %all 
issue rules to c>ry out ! am5dm5ts made 
by ?is ,act4  7e7 ,effective date ,!    
provisions ( law add$ by ! am5dm5ts made
 by ?is ,act %all take effect aft] ! end
 ( ! #a-ye> p]iod beg9n+ on ! date (    
enactm5t ( ?is ,act4