,,ii #aag? ,,congress #b;d ,session ,s4 #dcef ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,june #g1 #bjbb,ms4 ,lummis 7= h]self & ,mrs4 ,gillibr&7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to provide = responsible f9ancial innovation & to br+ digital assets )9 ! regulatory p]imet]4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,lummis-,gillibr& ,responsible ,f9ancial ,innovation ,act4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4,sec4 #b4 ,def9itions4,,title ,i--,definitions,sec4 #aja4 ,def9itions4,,title ,,ii--,responsible taxation ( digital assets,sec4 #bja4 ,ga9 f disposition ( digital assets4,sec4 #bjb4 ,in=mation report+ requirem5ts impos$ on brok]s ) respect to digital assets4,sec4 #bjc4 ,s\rces ( income4,sec4 #bjd4 ,dec5traliz$ autonom\s organizations4,sec4 #bje4 ,tax treatm5t ( digital asset l5d+ agreem5ts & relat$ matt]s4,sec4 #bjf4 ,implem5t+ effective ,,irs guidance4,sec4 #bjg4 ,analysis ( retirem5t inve/+ 9 digital assets4,sec4 #bjh4 ,digital asset m9+ & /ak+4,sec4 #bji4 ,con=m+ am5dm5ts4,,title ,,iii--,responsible securities innovation,sec4 #cja4 ,securities (f]+s involv+ c]ta9 intangible assets4,sec4 #cjb4 ,t]m9ation ( specifi$ p]iodic disclosure requirem5ts4,sec4 #cjc4 ,guidance relat+ to satisfactory control location4,sec4 #cjd4 ,cu/ody & cu/om] protection rules4,,title ,,iv--,responsible ,commodities ,innovation,sec4 #dja4 ,def9itions4,sec4 #djb4 ,report+ & recordkeep+4,sec4 #djc4 ,,cftc jurisdiction ov] digital asset transactions4,sec4 #djd4 ,regi/ration ( digital asset ex*anges4,sec4 #dje4 ,violations4,sec4 #djf4 ,m>ket reports4,sec4 #djg4 ,bankruptcy treatm5t ( digital assets4,sec4 #djh4 ,id5tifi$ bank+ products4,sec4 #dji4 ,f9ancial in/itutions def9ition4,sec4 #daj4 ,(fsett+ ! co/s ( digital asset regulation4,,title ,v--,responsible consum] protection,sec4 #eja4 ,responsible consum] protection4,sec4 #ejb4 ,s\rce code v]sion ( digital assets4,sec4 #ejc4 ,settlem5t f9ality4,sec4 #ejd4 ,notice to cu/om]s2 en=cem5t4,sec4 #eje4 ,"r to individual managem5t ( digital assets4,sec4 #ejf4 ,te*nical & con=m+ am5dm5ts4,,title ,,vi--,responsible paym5ts innovation,sec4 #fja4 ,issuance ( paym5t /ableco9s4,sec4 #fjb4 ,sanctions compliance responsibilities ( paym5t /ableco9 issu]s4,sec4 #fjc4 ,use ( ! (ficial digital curr5cy ( ! ,p's ,republic ( ,*9a on ,gov]nm5t devices4,sec4 #fjd4 ,c]tificate ( au?ority to comm5ce bank+4,sec4 #fje4 ,hold+ company sup]vision ( cov]$ depository in/itutions4,sec4 #fjf4 ,implem5tation rules to pres]ve adequate competition 9 paym5t /ableco9s4,sec4 #fjg4 ,f9ancial ,crimes ,en=cem5t ,network ,innovation ,laboratory4,,title ,,vii--,responsible bank+ innovation,sec4 #gja4 ,/udy on use ( di/ribut$ l$g] te*nology = r$uction ( risk 9 depository in/itutions4,sec4 #gjb4 ,eligibility = ,f$]al ,res]ve s]vices to depository in/itutions4,sec4 #gjc4 ,r\t+ transit numb] issuance4,sec4 #gjd4 ,cl>ify+ application review times ) respect to ! ,f$]al bank+ ag5cies4,sec4 #gje4 ,exam9ation /&>ds = digital asset activities4,sec4 #gjf4 ,asset cu/ody = depository in/itutions & c]ta9 o!r entities4,sec4 #gjg4 ,reputation risk2 requirem5ts = acc\nt t]m9ation reque/s & ord]s4,sec4 #gjh4 ,con=m+ am5dm5ts4,,title ,,viii--,responsible int]ag5cy coordination,sec4 #hja4 ,timel9e = int]pretive guidance issu$ by ,f$]al f9ancial ag5cies4,sec4 #hjb4 ,int]/ate s&box activities4,sec4 #hjc4 ,/ate money transmission coord9ation relat+ to digital assets4,sec4 #hjd4 ,in=mation %>+ among ,f$]al & ,/ate f9ancial regulators4,sec4 #hje4 ,analysis ( dec5traliz$ f9ance m>kets & te*nologies4,sec4 #hjf4 ,analysis ( en]gy consumption 9 digital asset m>kets4,sec4 #hjg4 ,analysis ( self-regulation & regi/]$ digital asset associations4,sec4 #hjh4 ,cyb]security /&>ds = digital asset int]m$i>ies4,sec4 #hji4 ,advisory ,committee on ,f9ancial ,innovation4 #b4 ,def9itions ,9 ?is ,act3 7#a7 ,commodity ,! t]m commodity has ! mean+ giv5 ! t]m 9 section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a74 7#b7 ,digital asset2 digital asset int]m$i>y2 di/ribut$ l$g] te*nology2 paym5t /ableco92 sm>t contract2 virtual curr5cy ,! t]ms digital asset1 digital asset int]m$i>y1 di/ribut$ l$g] te*nology1 paym5t /ableco91 sm>t contract1 & virtual curr5cy h ! mean+s giv5 ! t]ms 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code1 z add$ by section #aja ( ?is ,act4 7#c7 ,security ,except z o!rwise expressly provid$1 ! t]m security has ! mean+ giv5 ! t]m 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a774 ,i ,def9itions #aja4 ,def9itions 7a7 ,9 g5]al ,subtitle ,,vi ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by add+ aft] *apt] #ig ! foll[+3 #ih ,digital assets ,sec4 #ihja4 ,def9itions4 #ihja4 ,def9itions ,9 ?is *apt]3 7#a7 ,depository in/itution ,! t]m depository in/itution has ! mean+ giv5 ! t]m 9 section #ai7;b77#a7 ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #dfa7;b77#a774 7#b7 ,digital asset ,! t]m digital asset-- 7,a7 means a natively electronic asset t-- 7i7 conf]s economic1 propriet>y1 or access rights or p[]s2 & 7ii7 is record$ us+ cryptographically secur$ di/ribut$ l$g] te*nology1 or any simil> analogue2 & 7,b7 includes-- 7i7 virtual curr5cy & ancill>y assets 9 accordance ) section #b7;c77#b77;,f7 ( ! ,commodity ,ex*ange ,act2 7ii7 paym5t /ableco9s 9 accordance ) section #djc ( ! ,commodity ,futures ,mod]nization ,act ( #bjjj 7#g ,u4,s4,c4 #bg;a72 & 7iii7 any o!r security or commodity t meets ! requirem5ts ( subp>agraph 7,a74 7#c7 ,digital asset int]m$i>y ,! t]m digital asset int]m$i>y-- 7,a7 means-- 7i7 a p]son :o holds a lic5se1 regi/ration1 or o!r simil> au?orization1 z specifi$ by ?is *apt]1 ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq471 ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;a et seq471 ! ,corporation ( ,=eign ,bondhold]s ,act1 #aicc 7#ae ,u4,s4,c4 #gg;bb et seq471 ! ,tru/ ,ind5ture ,act ( #aici 7#ae ,u4,s4,c4 #gg;aaa et seq471 ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq471 ! ,securities ,inve/or ,protection ,act ( #aigj 7#ae ,u4,s4,c4 #gh;aaa et seq471 ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#a et seq471 ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#a71 & ! ,omnibus ,small ,bus9ess ,capital ,=mation ,act ( #aihj 7#ae ,u4,s4,c4 #hj;c71 t may conduct m>ket activities relat+ 9 digital assets2 or 7ii7 a p]son :o is requir$ by law to hold a lic5se1 regi/ration1 or o!r simil> au?orization describ$ 9 clause 7i72 7,b7 includes-- 7i7 a p]son :o holds a lic5se1 regi/ration1 or o!r simil> au?orization "u ,/ate or ,f$]al law t issues a paym5t /ableco92 & 7ii7 a p]son :o is requir$ by law to hold a lic5se1 regi/ration1 or o!r simil> au?orization describ$ 9 clause 7i72 & 7,c7 does n include a depository in/itution4 7#d7 ,di/ribut$ l$g] te*nology ,! t]m di/ribut$ l$g] te*nology means te*nology t enables ! op]ation & use ( a l$g] t-- 7,a7 is %>$ across a set ( di/ribut$ nodes t p>ticipate 9 a network & /ore a complete or p>tial replica ( ! l$g]2 7,b7 is syn*roniz$ betwe5 ! nodes2 7,c7 has data app5d$ to ! l$g] by foll[+ ! specifi$ cons5sus me*anism ( ! l$g]2 7,d7 may be accessible to anyone or re/rict$ to a subset ( p>ticipants2 & 7,e7 may require p>ticipants to h au?orization to p]=m c]ta9 actions or require no au?orization4 7#e7 ,paym5t /ableco9 ,! t]m paym5t /ableco9 means a digital asset t is-- 7,a7 r$eemable1 on dem&1 on a #a-to-#a basis = in/rum5ts d5om9at$ 9 ,unit$ ,/ates doll>s2 7,b7 def9$ z legal t5d] "u section #eajc or "u ! laws ( a =eign c\ntry 7exclud+ digital assets72 7,c7 issu$ by a bus9ess entity2 7,d7 accompani$ by a /atem5t f ! issu] t ! asset is r$eemable1 z specifi$ 9 subp>agraph 7,a71 f ! issu] or ano!r id5tifi$ p]son2 7,e7 back$ by #a or m f9ancial assets 7exclud+ o!r digital assets71 consi/5t ) subp>agraph 7,a72 & 7,f7 int5d$ to be us$ z a m$ium ( ex*ange4 7#f7 ,p]son :o provides digital asset s]vices ,! t]m p]son :o provides digital asset s]vices means-- 7,a7 a digital asset int]m$i>y2 7,b7 a f9ancial in/itution1 z def9$ 9 section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a72 7,c7 any o!r p]son conduct+ digital asset activities pursuant to a ,f$]al or ,/ate *>t]1 lic5se1 regi/ration1 or o!r simil> au?orization2 & 7,d7 any p]son :o is requir$ by law to hold a lic5se1 regi/ration1 or o!r simil> au?orization describ$ 9 subp>agraph 7,c74 7#g7 ,security ,! t]m security has ! mean+ giv5 ! t]m 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a774 7#h7 ,sm>t contract ,! t]m sm>t contract-- 7,a7 means-- 7i7 comput] code deploy$ to a di/ribut$ l$g] te*nology network t executes an in/ruction bas$ on ! occurr5ce or nonoccurr5ce ( specifi$ conditions2 or 7ii7 any simil> analogue2 & 7,b7 includes tak+ possession or control ( a digital asset & transf]r+ ! asset or issu+ executable in/ructions = ^! actions4 7#i7 ,s\rce code v]sion ,! t]m s\rce code v]sion-- 7,a7 means ! s\rce code v]sion compris+ a digital asset2 & 7,b7 does n include s(tw>e us$ to manage or facilitate transactions 9 a digital asset4 7#aj7 ,virtual curr5cy ,! t]m virtual curr5cy-- 7,a7 means a digital asset t-- 7i7 is us$ prim>ily z a m$ium ( ex*ange1 unit ( acc\nt1 /ore ( value1 or any comb9ation ( su* functions2 7ii7 is n legal t5d]1 z describ$ 9 section #eajc2 & 7iii7 does n d]ive value f or is back$ by an und]ly+ f9ancial asset 7except o!r digital assets72 & 7,b7 includes a digital asset1 consi/5t ) subp>agraph 7,a7 t is accompani$ by a /atem5t f ! issu] t a d5om9at$ or pegg$ value w be ma9ta9$ & be available ^u r$emption f ! issu] or o!r id5tifi$ p]son1 bas$ solely on a sm>t contract4 4 7b7 ,te*nical & con=m+ am5dm5t ,! table ( cont5ts = subtitle ,,vi ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 #ih4 ,digital assets#ihja 4 ,,ii ,responsible taxation ( digital assets #bja4 ,ga9 f disposition ( digital assets 7a7 ,9 g5]al ,"p ,,iii ( sub*apt] ,b ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #aci;,i ! foll[+ new section3 #aci;,j4 ,ga9 or loss f sale or ex*ange ( virtual curr5cy 7a7 ,9 g5]al ,gross income %all n include ga9 or loss f ! sale or ex*ange ( virtual curr5cy 9 a p]sonal transaction 7z def9$ 9 section #ihh7;e77#c77 = goods & s]vices4 7b7 ,limitation 7#a7 ,9 g5]al ,! am\nt ( ga9 or loss exclud$ f gross income "u subsection 7a7 ) respect to a sale or ex*ange %all n exce$ #bjj4 7#b7 ,aggregation rule ,= purposes ( ?is subsection1 all sales or ex*anges :i* are "p ( ! same transaction 7or a s]ies ( relat$ transactions7 %all be treat$ z "o sale or ex*ange4 7c7 ,o!r sales or ex*anges ,subsection 7a7 %all n apply to sales or ex*anges 9 :i* virtual curr5cy is sold or ex*ang$ = ca%1 ca% equival5ts1 digital assets 7z def9$ 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code71 or o!r securities or commodities4 7d7 ,virtual curr5cy ,= purposes ( ?is section1 ! t]m virtual curr5cy has ! mean+ giv5 su* t]m 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code4 7e7 ,inflation adju/m5t ,9 ! case ( any taxable ye> beg9n+ 9 a cal5d> ye> aft] #bjbc1 ! doll> am\nt 9 subsection 7b7 %all be increas$ by an am\nt equal to-- 7#a7 su* doll> am\nt1 multipli$ by 7#b7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 det]m9$ by sub/itut+ cal5d> ye> #bjbb = cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 !re(4 ,any increase det]m9$ "u ! prec$+ s5t5ce %all be r\nd$ to ! ne>e/ multiple ( #ej4 4 7b7 ,cl]ical am5dm5t ,! table ( sections = "p ,,iii ( sub*apt] ,b ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] ! item relat+ to section #aci;,i ! foll[+ new item3 ,sec4 #aci;,j4 ,ga9 or loss f sale or ex*ange ( virtual curr5cy4 4 7c7 ,report+ ( ga9s or losses ,! ,secret>y %all issue regulations provid+ = in=mation returns on virtual curr5cy transactions = :i* ga9 or loss is recogniz$4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to transactions ent]$ into aft] ,decemb] #ca1 #bjbb4 #bjb4 ,in=mation report+ requirem5ts impos$ on brok]s ) respect to digital assets 7a7 ,cl>ification ( def9ition ( brok] ,section #fjde7;c77#a77;,d7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7,d7 any p]son :o 7= consid]ation7 /&s ready 9 ! ord9>y c\rse ( a trade or bus9ess to effect sales ( digital assets at ! direction ( _! cu/om]s4 4 7b7 ,report+ ( digital assets 7#a7 ,brok]s 7,a7 ,def9ition ( digital asset ,section #fjde7;g77#c77;,d7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7,d7 ,digital asset ,! t]m digital asset has ! mean+ giv5 su* t]m 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code4 4 7,b7 ,applicable date ,section #fjde7;g77#c77;,c77iii7 ( su* ,code is am5d$ to read z foll[s3 7iii7 ,janu>y #a1 #bjbe1 9 ! case ( any specifi$ security :i* is a digital asset1 & 4 7#b7 ,furni%+ ( in=mation ,section #fjde;,a7d7 ( su* ,code is am5d$ to read z foll[s3 7d7 ,return requirem5t = c]ta9 transf]s ( digital assets n o!rwise subject to report+ ,any brok]1 ) respect to any transf] 7:i* is n "p ( a sale or ex*ange execut$ by su* brok]7 dur+ a cal5d> ye> ( a cov]$ security :i* is a digital asset f an acc\nt :olly controll$ & ma9ta9$ by su* brok] to an acc\nt :i* is n ma9ta9$ by1 or an address n associat$ )1 a p]son t su* brok] kn[s or has reason to "k is also a brok]1 %all make a return = su* cal5d> ye>1 9 su* =m z det]m9$ by ! ,secret>y1 %[+ ! in=mation o!rwise requir$ to be furni%$ ) respect to transf]s subject to subsection 7a74 ,in=mation report$ by brok]s "u ?is section %all be limit$ to cu/om] in=mation t is volunt>ily provid$ by ! cu/om] & held by ! brok] = a legitimate bus9ess purpose4 4 7c7 ,effective dates ,! am5dm5ts made by ?is section %all apply to returns requir$ to be fil$ & /atem5ts requir$ to be furni%$ aft] ,decemb] #ca1 #bjbe4 #bjc4 ,s\rces ( income 7a7 ,9 g5]al ,p>agraph 7#b7 ( section #hfd7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by r$esignat+ subp>agraph 7,c7 z subp>agraph 7,d7 & by ins]t+ aft] subp>agraph 7,b7 ! foll[+ new subp>agraph3 7,c7 ,digital assets 7i7 ,9 g5]al ,trad+ 9 digital assets ?r\gh a resid5t brok]1 commission ag5t1 cu/odian1 digital asset ex*ange1 or o!r indep5d5t ag5t4 7ii7 ,trad+ = taxpay]'s own acc\nt ,trad+ 9 digital assets = ! taxpay]'s own acc\nt1 :e!r by ! taxpay] or ! taxpay]'s employees or ?r\gh a resid5t brok]1 commission ag5t1 cu/odian1 digital asset ex*ange1 or o!r ag5t1 & :e!r or n any su* employee or ag5t has discretion>y au?ority to make decisions 9 effect+ ! transactions4 ,?is clause %all n apply 9 ! case ( a deal] 9 digital assets4 7iii7 ,def9itions ,= purposes ( ?is subp>agraph-- 7,i7 ,digital asset ex*ange ,! t]m digital asset ex*ange means a c5traliz$ or dec5traliz$ plat=m :i* facilitates ! transf] ( digital assets4 7,,ii7 ,digital asset ,! t]m digital asset has ! mean+ giv5 su* t]m 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code4 7iv7 ,limitation ,?is subp>agraph %all apply only if ! digital assets are ( a k9d cu/om>ily dealt 9 on a digital asset ex*ange & if ! transaction is ( a k9d cu/om>ily consummat$ at su* ex*ange4 4 7b7 ,con=m+ am5dm5t ,subp>agraph 7,d7 ( section #hfd7;b77#b7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z r$esignat$ by subsection 7a71 is am5d$ by /rik+ 7,a77i7 & 7,b77i7 & ins]t+ 7,a77i71 7,b77i71 & 7,c77i74 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to sales & ex*anges aft] ,decemb] #ca1 #bjbb4 #bjd4 ,dec5traliz$ autonom\s organizations 7a7 ,9 g5]al ,section #ggja7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ea7 ,dec5traliz$ autonom\s organizations 7,a7 ,9 g5]al ,! default classification ( a dec5traliz$ autonom\s organization %all be z a bus9ess entity :i* is n a disreg>d$ entity4 7,b7 ,classification ( o!r activities ,! foll[+ %all n be consid]$ a bus9ess activity ( su* organization = purposes ( det]m9+ :e!r su* organization is describ$ 9 section #eja7;c77#g73 7i7 ,treasury managem5t1 includ+ m9+ & /ak+ ( digital assets 7z def9$ 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code74 7ii7 ,rais+ funds = a *>itable purpose4 7,c7 ,dec5traliz$ autonom\s organization ,! t]m dec5traliz$ autonom\s organization means an organization-- 7i7 :i* utilizes sm>t contracts 7z def9$ 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code7 to effectuate collective action = a bus9ess1 comm]cial1 *>itable1 or simil> entity1 7ii7 gov]nance ( :i* is a*iev$ prim>ily on a di/ribut$ basis1 & 7iii7 :i* is prop]ly incorporat$ or organiz$ "u ! laws ( a ,/ate or =eign jurisdiction z a dec5traliz$ autonom\s organization1 coop]ative1 f\ndation1 or any simil> entity4 4 7b7 ,effective date ,except z provid$ by subsection 7c71 ! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbb4 #bje4 ,tax treatm5t ( digital asset l5d+ agreem5ts & relat$ matt]s 7a7 ,9 g5]al ,subsection 7a7 ( section #ajeh ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ 7z def9$ 9 section #abcf7;c774 7b7 ,fix$ t]m ,p>agraph 7#a7 ( subsection 7b7 ( section #ajeh ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ 1 includ+ a fix$-t]m transf] t occurs 9 ! ord9>y c\rse ( a securities l5d+ or inve/m5t managem5t bus9ess aft] transf]r$4 7c7 ,basis ,subsection 7c7 ( section #ajeh ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+3 ,all appropriate basis adju/m5ts to an agreem5t "u subsection 7b7 %all be made1 z det]m9$ by ! ,secret>y1 includ+ ^u ! return ( ! l5t securities to ! taxpay]44 7d7 ,securities ,section #ajeh ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsections3 7d7 ,securities ,= purposes ( ?is section1 ! t]m securities has ! mean+ giv5 su* t]m by section #abcf7;c71 except t su* t]m includes any digital asset 7z def9$ 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code7 &1 ) respect to a digital asset1 does n require a call option4 7e7 ,income ,an am\nt equal to ! income :i* w\ld o!rwise accrue to ! l5d] b = a l5d+ transaction "u ?is section %all be includ$ 9 gross income ( ! l5d]4 4 7e7 ,rule ( con/ruction ,no?+ 9 ?is section %all be con/ru$ to create any inf]5ce ) respect to ! classification ( any digital asset z security "u ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;a et seq47 or ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq474 7f7 ,rulemak+ au?ority ,! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 may adopt rules to implem5t ?is section1 includ+ ! application ( ?is section to =ks1 airdrops1 & simil> subsidi>y value4 7g7 ,effective date ,! am5dm5ts made by ?is section %all apply to sales & ex*anges aft] ,decemb] #ca1 #bjbb4 #bjf4 ,implem5t+ effective ,,irs guidance 7a7 ,9 g5]al ,n lat] ?an #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 %all adopt guidance relat+ to ! foll[+3 7#a7 ,classification ( =ks1 airdrops1 & simil> subsidi>y value z taxable1 cont+5t ^u ! affirmative claim & disposition ( ! subsidi>y value by a taxpay]4 ,su* guidance %all also p]mit a taxpay] to provide notification ?r\gh an annual return or o!r appropriate means to ! ,int]nal ,rev5ue ,s]vice relat+ to claim & disposition (1 or disclaim] (1 subsidi>y value4 7#b7 ,m]*ant acceptance ( digital assets & ! tax treatm5t ( paym5ts & receipts1 consi/5t ) ! am5dm5ts made by section #hjfjc ( ! ,infra/ructure ,inve/m5t & ,jobs ,act1 z am5d$ by section #bjc4 7#c7 ,treatm5t ( digital asset m9+ & /ak+1 includ+ m9+ & /ak+ rew>ds1 9 :i* income is n realiz$ until disposition ( ! assets produc$ or receiv$ 9 connection ) su* activity1 9 accordance ) section #dea7l7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z add$ by ?is ,act74 7#d7 ,classification ( *>itable contributions great] ?an #e1jjj ( digital assets :i* are trad$ on e/abli%$ f9ancial m>kets z contributions ( readily valu$ prop]ty n requir+ a qualifi$ appraisal = purposes ( section #agj7;f77#aa77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z am5d$ by ?is ,act4 7#e7 ,*>act]ization ( paym5t /ableco9s 7z def9$ 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code7 z indebt$ness4 7b7 ,effective date ,! guidance adopt$ "u ?is section %all be applicable on a prospective basis = taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbc4 #bjg4 ,analysis ( retirem5t inve/+ 9 digital assets 7a7 ,n lat] ?an ,m>* #a1 #bjbc1 ! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all conduct a /udy & provide a report to ! entities specifi$ 9 subsection 7b7 reg>d+ ! foll[+ issues relat+ to retirem5t inve/+ 9 digital assets3 7#a7 ,pot5tial b5efits to div]sification & return ( an inve/or's retirem5t portfolio4 7#b7 ,appropriate asset allocations1 includ+ among o!r alt]native inve/m5ts4 7#c7 ,consum] education1 f9ancial lit]acy & inve/m5t advisor tra9+ relat+ to digital assets4 7#d7 ,risk4 7#e7 ,legal & op]ational b>ri]s to effective retirem5t inve/+ 9 digital assets4 7#f7 ,any o!r topic det]m9$ to be mat]ial by ! ,comptroll] ,g5]al relat+ to retirem5t inve/+ 9 digital assets4 7b7 ,! ,comptroll] ,g5]al %all provide ! report requir$ by subsection 7a7 to ! foll[+3 7#a7 ,! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate4 7#b7 ,! ,committee on ,f9ance ( ! ,s5ate4 7#c7 ,! ,committee on ,heal?1 ,education1 ,labor1 & ,p5sions ( ! ,s5ate4 7#d7 ,! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives4 7#e7 ,! ,committee on ,ways & ,means ( ! ,h\se ( ,repres5tatives4 7#f7 ,! ,committee on ,education & ,labor ( ! ,h\se ( ,repres5tatives4 7#g7 ,! ,secret>y ( ! ,treasury4 7#h7 ,! ,secret>y ( ,labor4 #bjh4 ,digital asset m9+ & /ak+ 7a7 ,9 g5]al ,section #dea ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7l7 ,def]ral ( income recognition = digital asset activities ,9 ! case ( a taxpay] :o conducts digital asset m9+ or /ak+ activities1 ! am\nt ( income relat+ to su* activities %all n be includ$ 9 ! gross income ( ! taxpay] until ! taxable ye> ( ! disposition ( ! assets produc$ or receiv$ 9 connection ) ! m9+ or /ak+ activities4 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbb4 #bji4 ,con=m+ am5dm5ts 7a7 ,*>itable contributions 7#a7 ,9 g5]al ,subclause 7,i7 ( section #agj7;f77#aa77;,a77ii7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ 1 digital assets 7z def9$ 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code7 aft] #fjej,l7a77#b77;,b774 7#b7 ,effective date ,! am5dm5t made by ?is subsection %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbb4 7b7 ,o!r con=m+ am5dm5ts 7#a7 ,9 g5]al ,title #ca1 ,unit$ ,/ates ,code1 is am5d$-- 7,a7 9 section #ecab7;a77#b7-- 7i7 by r$esignat+ subp>agraphs 7,a7 ?r\gh 7,z7 z clauses 7i7 ?r\gh 7xxvi71 respectively2 7ii7 9 ! matt] prec$+ clause 7i71 z s designat$1 by /rik+ in/itution means-- & ins]t+ in/itution-- 7,a7 means-- 2 7iii7 9 clause 7xxvi71 z s designat$1 by /rik+ ! p]iod at ! end & ins]t+ 2 &2 & 7iv7 by add+ at ! end ! foll[+3 7,b7 does n include a dec5traliz$ autonom\s organization1 z def9$ 9 section #ggja7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf4 2 & 7,b7 9 section #eccf7;a77#aa77;,b77#b7-- 7i7 by r$esignat+ clause 7xxv7 z clause 7xxvi72 & 7ii7 by add+ aft] clause 7xxv7 ! foll[+3 7xxv7 ,a dec5traliz$ autonom\s organization1 z def9$ 9 section #ggja7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf2 & 4 7#b7 ,anti-,money ,laund]+ ,act ( #bjbj ,section #faaj7;a7 ( ! ,anti-,money ,laund]+ ,act ( #bjbj 7division ,f ( ,public ,law #aaf-bhc7 is am5d$ by /rik+ p>agraph 7#a7 & ins]t+ ! foll[+3 7,a7 by r$esignat+ clauses 7xxv7 & 7xxvi7 z clauses 7xxvi7 & 7xxvii71 respectively1 & adju/ ! m>g9s accord+ly2 & 7,b7 by ins]t+ aft] clause 7xxiv7 ! foll[+3 7,y7 a p]son engag$ 9 ! trade ( antiquities1 includ+ an advisor1 consultant1 or any o!r p]son :o engages z a bus9ess 9 ! solicitation or ! sale ( antiquities1 subject to regulations prescrib$ by ! ,secret>y2 4 4 ,,iii ,responsible securities innovation #cja4 ,securities (f]+s involv+ c]ta9 intangible assets ,title ,i ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 is am5d$ by add+ at ! end ! foll[+3 #da4 ,securities (f]+s involv+ c]ta9 intangible assets 7a7 ,def9itions ,9 ?is section3 7#a7 ,ancill>y asset 7,a7 ,9 g5]al ,! t]m ancill>y asset means an intangible1 fungible asset t is (f]$1 sold1 or o!rwise provid$ to a p]son 9 connection ) ! pur*ase & sale ( a security ?r\gh an arrangem5t or s*eme t con/itutes an inve/m5t contract1 z t t]m is us$ 9 section #b7;a77#a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a77#a774 7,b7 ,exclusion ,! t]m ancill>y asset does n include an asset t provides ! hold] ( ! asset ) any ( ! foll[+ rights 9 a bus9ess entity3 7i7 ,a debt or equity int]e/ 9 t entity4 7ii7 ,liquidation rights ) respect to t entity4 7iii7 ,an entitlem5t to an int]e/ or divid5d paym5t f t entity4 7iv7 ,a pr(it or rev5ue %>e 9 t entity solely f ! entrepr5eurial or manag]ial ef=ts ( o!rs4 7v7 ,any o!r f9ancial int]e/ 9 t entity4 7#b7 ,=eign private issu] ,! t]m =eign private issu] means a =eign issu]1 o!r ?an a =eign gov]nm5t1 except t ! t]m does n include a =eign issu] t1 z ( ! la/ bus9ess day ( ! mo/ rec5tly complet$ fiscal qu>t] ( ! issu]1 satisfies ! foll[+ conditions3 7,a7 ,m ?an #ej p]c5t ( ! out/&+ vot+ securities ( ! issu] are directly or indirectly own$ by resid5ts ( ! ,unit$ ,/ates4 7,b7 ,any ( ! foll[+3 7i7 ,! majority ( ! executive (fic]s or directors ( ! issu] are citiz5s or resid5ts ( ! ,unit$ ,/ates4 7ii7 ,m ?an #ej p]c5t ( ! assets ( ! issu] are locat$ 9 ! ,unit$ ,/ates4 7iii7 ,! bus9ess ( ! issu] is pr9cipally adm9i/]$ 9 ! ,unit$ ,/ates4 7b7 ,disclosure requirem5ts 7#a7 ,initial compliance ) specifi$ p]iodic disclosure requirem5ts ,subject to p>agraphs 7#d7 & 7#e71 an issu] engag$ 9 bus9ess 9 or affect+ int]/ate comm]ce1 or t is organiz$ outside ( ! ,unit$ ,/ates & is n a =eign private issu]1 t (f]s1 sells1 or o!rwise provides a security ?r\gh an arrangem5t or s*eme t con/itutes an inve/m5t contract1 z t t]m is us$ 9 section #b7;a77#a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a77#a771 & t provides or proposes to provide any hold] ( ! security ) an ancill>y asset1 %all be subject to ! p]iodic disclosure requirem5ts "u subsection 7c7 = ! #a-ye> p]iod beg9n+ on ! date t is #ahj days aft] ! fir/ date on :i* ! security is (f]$1 sold1 or o!rwise provid$ by ! issu]1 if-- 7,a7 ! av]age daily aggregate value ( all ancill>y assets (f]$1 sold1 or o!rwise provid$ by ! issu] 9 relation to ! (f]1 sale1 or provision ( ! security 9 all spot m>kets op5 to ! public 9 ! ,unit$ ,/ates 7bas$ on ! k ( ! issu] aft] due inquiry7 is great] ?an #e1jjj1jjj = ! #ahj-;day p]iod imm$iately succe$+ ! date ( t fir/ (f]1 sale1 or provision2 & 7,b7 dur+ ! #ahj-;day p]iod describ$ 9 subp>agraph 7,a71 ! issu]1 or any p]son own+ n less ?an #aj p]c5t ( any class ( equity securities ( ! issu]1 engag$ 9 entrepr5eurial or manag]ial ef=ts t prim>ily det]m9$ ! value ( ! ancill>y asset4 7#b7 ,ongo+ compliance ) specifi$ p]iodic disclosure requirem5ts ,subject to p>agraphs 7#d7 & 7#e71 an issu] t is engag$ 9 bus9ess 9 or affect+ int]/ate comm]ce1 or t is organiz$ outside ( ! ,unit$ ,/ates & is n a =eign private issu]1 t (f]s1 sells1 or o!rwise provides a security ?r\gh an arrangem5t or s*eme t con/itutes an inve/m5t contract1 z t t]m is us$ 9 section #b7;a77#a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a77#a771 & t provides ! hold] ( ! security ) an ancill>y asset 9 connection ) ! acquisition ( ! security1 %all be subject to ! p]iodic disclosure requirem5ts "u subsection 7c7 = a giv5 fiscal ye> ( t issu]1 if1 9 ! imm$iately prec$+ fiscal ye> ( ! issu] 7or any portion !re(7-- 7,a7 ! av]age daily aggregate value ( all trad+ 9 ! ancill>y asset 9 all spot m>kets op5 to ! public 9 ! ,unit$ ,/ates 0 great] ?an #e1jjj1jjj1 bas$ on ! k ( ! issu] aft] due inquiry2 & 7,b7 ! issu]1 or any p]son own+ n less ?an #aj p]c5t ( any class ( equity securities ( ! issu]1 engag$ 9 entrepr5eurial or manag]ial ef=ts t prim>ily det]m9$ ! value ( ! ancill>y asset4 7#c7 ,transition rule ,subject to p>agraphs 7#d7 & 7#e71 an issu] t is engag$ 9 bus9ess 9 or affect+ int]/ate comm]ce1 or t is organiz$ outside ( ! ,unit$ ,/ates & is n a =eign private issu]1 t (f]s1 sells1 or o!rwise provides a security ?r\gh an arrangem5t or s*eme t con/itutes an inve/m5t contract1 z t t]m is us$ 9 section #b7;a77#a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a77#a771 & t provides ! hold] ( ! security ) an ancill>y asset be=e ,janu>y #a1 #bjbc1 9 connection ) ! acquisition ( ! security %all be subject to ! p]iodic disclosure requirem5ts "u subsection 7c7 beg9n+ 9 ! fir/ fiscal ye> ( ! issu] t beg9s on or aft] t date1 if1 9 ! imm$iately prec$+ fiscal ye> ( ! issu]-- 7,a7 ! av]age daily aggregate value ( trad+ 9 ! ancill>y asset 9 all spot m>kets op5 to ! public = :i* trad+ volume is g5]ally available 0 great] ?an #e1jjj1jjj1 bas$ on ! k ( ! issu] aft] due inquiry2 & 7,b7 ! issu]1 or any p]son own+ n less ?an #aj p]c5t ( any class ( equity securities ( ! issu]1 engag$ 9 entrepr5eurial or manag]ial ef=ts t prim>ily det]m9$ ! value ( ! ancill>y asset4 7#d7 ,treatm5t ( ancill>y assets 7,a7 ,9 g5]al ,not)/&+ any o!r provision ( law1 if an issu] issues a security ?r\gh an arrangem5t or s*eme t con/itutes an inve/m5t contract1 z t t]m is us$ 9 section #b7;a77#a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a77#a771 is subject to p>agraph 7#a71 7#b71 or 7#c71 & is 9 compliance ) ! p]iodic disclosure requirem5ts "u subsection 7c71 an ancill>y asset provid$ directly or indirectly by ! issu] %all be presum$-- 7i7 to be a commodity1 consi/5t ) section #b7;c77#b77;,f7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #b7;c77#b77;,f772 & 7ii7 n to be a security "u-- 7,i7 section #c7;a72 7,,ii7 su* section #b7;a77#a72 7,,iii7 section #b7;a7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#b7;a772 7,,iv7 section #bjb7;a7 ( ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#b7;a772 or 7,v7 any applicable provision ( ,/ate law4 7,b7 ,o!r p]sons ,a p]son :o is n an issu]1 an entity controll$ by an issu] 7includ+ a p]son t acquires an ancill>y asset f su* an issu] = ! purpose ( resale or di/ribution ( ! ancill>y asset71 or a p]son act+ at ! direction or on ! behalf ( an issu] %all be n requir$ to treat an ancill>y asset provid$ by an issu] z a security "u ?is ,act or any provision ( law describ$ 9 subp>agraph 7,a77ii74 7,c7 ,exception 7i7 ,9 g5]al ,subp>agraph 7,a7 %all n apply to an ancill>y asset if a c\rt ( ! ,unit$ ,/ates ( compet5t jurisdiction1 aft] an appropriate proce$+1 issues an ord] f9d+ t !re is n a sub/antial basis = ! presumption t ! ancill>y asset is a commodity & n a security "u subp>agraph 7,a74 7ii7 ,rules ( con/ruction ,no?+ 9 ?is subp>agraph %all be con/ru$ to preclude ! ,commission f ent]+ into a settlem5t agreem5t relat+ to violations or alleg$ violations ( ?is section4 ,compliance "u ?is section %all n be us$ 9 any adm9i/rative or judicial proce$+ t an ancill>y asset is a security4 7#e7 ,calculation ,= ! purposes ( p>agraphs 7#a71 7#b71 & 7#c71 ! calculation ( daily aggregate value %all be bas$ on data disclos$ by spot m>kets or o!rwise available to ! public = inspection4 7c7 ,specifi$ p]iodic disclosure requirem5ts ,if an issu] is subject to p>agraph 7#a71 7#b71 or 7#c7 ( subsection 7b71 ! issu] %all furni%1 or cause ! relevant affiliate to furni%1 to ! ,commission1 on a semi-annual basis1 in=mation t ! ,commission may1 by rule1 require relat+ to ! issu] & any relevant ancill>y asset1 z necess>y or appropriate 9 ! public int]e/ or = ! protection ( inve/ors1 :i* %all be exclusively compris$ ( ! foll[+3 7#a7 ,basic corporate in=mation reg>d+ ! issu]1 includ+ ! foll[+3 7,a7 ,! exp]i5ce ( ! issu] 9 develop+ assets simil> to ! ancill>y asset4 7,b7 ,if ! issu] has previ\sly provid$ ancill>y assets to pur*as]s ( securities1 in=mation on ! subsequ5t hi/ory ( ^? previ\sly provid$ ancill>y assets1 includ+ price hi/ory1 if ! in=mation is publicly available4 7,c7 ,! activities t ! issu] has tak5 9 ! relevant disclosure p]iod1 & is project+ to take 9 ! #a-ye> p]iod foll[+ ! submission ( ! disclosure1 ) respect to promot+ ! use1 value1 or resale ( ! ancill>y asset 7includ+ any activity to facilitate ! creation or ma9t5ance ( a trad+ m>ket = ! ancill>y asset & any network or sy/em t utilizes ! ancill>y asset74 7,d7 ,! anticipat$ co/ ( ! activities ( ! issu] 9 subp>agraph 7,c7 & :e!r ! issu] has un5cumb]$1 liquid funds equal to t am\nt4 7,e7 ,to ! ext5t ! ancill>y asset involves ! use ( a p>ticul> te*nology1 ! exp]i5ce ( ! issu] ) ! use ( t te*nology4 7,f7 ,! backgr\nds ( ! bo>d ( directors 7or equival5t body71 s5ior managem5t1 & key employees ( ! issu]1 ! exp]i5ce or functions ( :om are mat]ial to ! value ( ! ancill>y asset1 z well z any p]sonnel *anges relat+ to ! issu] dur+ ! p]iod cov]$ by ! disclosure4 7,g7 ,a description ( ! assets & liabilities ( ! issu]1 to ! ext5t mat]ial to ! value ( ! ancill>y asset4 7,h7 ,a description ( any legal proce$+s 9 :i* ! issu] is engag$ 7includ+ inquiries by gov]nm5tal ag5cies into ! activities ( ! issu]71 to ! ext5t mat]ial to ! value ( ! ancill>y asset4 7,i7 ,risk factors relat+ to ! impact ( ! issu] on1 or unique k relat+ to1 ! value ( ! ancill>y asset4 7,j7 ,in=mation relat+ to own]%ip ( ! ancill>y asset by-- 7i7 p]sons own+ n less ?an #aj p]c5t ( any class ( equity security ( ! issu]2 & 7ii7 ! managem5t ( ! issu]4 7,k7 ,in=mation relat+ to transactions involv+ ! ancill>y asset by ! issu] ) relat$ p]sons1 promot]s1 & control p]sons4 7,l7 ,rec5t sales or simil> dispositions ( ancill>y assets by ! issu] & affiliates ( ! issu]4 7,m7 ,pur*ases or simil> dispositions ( ancill>y assets by ! issu] & affiliates ( ! issu]4 7,n7 ,a go+ conc]n /atem5t f ! *ief f9ancial (fic] ( ! issu] or equival5t (ficial1 sign$ "u p5alty ( p]jury1 /at+ :e!r ! issu] ma9ta9s ! f9ancial res\rces to cont9ue bus9ess z a go+ conc]n = ! #a-ye> p]iod foll[+ ! submission ( ! disclosure1 abs5t a mat]ial *ange 9 circum/ances4 7#b7 ,in=mation relat+ to ! ancill>y asset1 includ+ ! foll[+3 7,a7 ,a g5]al description ( ! ancill>y asset1 includ+ ! /&>d unit ( measure ) respect to ! ancill>y asset1 ! int5d$ or kn[n functionality & uses ( ! ancill>y asset1 ! m>ket = ! ancill>y asset1 o!r assets or s]vices t may compete ) ! ancill>y asset1 & ! total supply ( ! ancill>y asset or ! mann] & rate ( ! ongo+ production or creation ( ! ancill>y asset4 7,b7 ,if ancill>y assets h be5 (f]$1 sold1 or o!rwise provid$ by ! issu] to inve/ors1 int]m$i>ies1 or resell]s1 a description ( ! am\nt ( assets (f]$1 sold1 or provid$1 ! t]ms ( ea* su* transaction1 & any contractual or o!r re/rictions on ! resale ( ! assets by int]m$i>ies4 7,c7 ,if ancill>y assets 7 di/ribut$ )\t *>ge1 a description ( ea* di/ribution1 includ+ ! id5tity ( any recipi5t t receiv$ m ?an #e p]c5t ( ! total am\nt ( ! ancill>y assets 9 any su* di/ribution4 7,d7 ,! am\nt ( ancill>y assets own$ by ! issu]4 7,e7 ,= ! #a-ye> p]iod foll[+ ! submission ( ! disclosure1 a description ( ! plans ( ! issu] to support 7or to cease support+7 ! use or developm5t ( ! ancill>y asset1 includ+ m>kets = ! ancill>y asset & ea* plat=m or sy/em t uses ! ancill>y asset4 7,f7 ,ea* ?ird p>ty n affiliat$ ) ! issu]1 ! activities ( :i* may h a mat]ial impact on ! value ( ! ancill>y asset4 7,g7 ,risk factors kn[n to ! issu] t may limit dem& =1 or int]e/ 91 ! ancill>y asset4 7,h7 ,! names & locations ( ! m>kets 9 :i* ! ancill>y asset is kn[n by ! issu] to be available = sale or pur*ase4 7,i7 ,to ! ext5t available to ! issu]1 ! av]age daily price = a con/ant unit ( value ( ! ancill>y asset dur+ ! relevant report+ p]iod1 z well z ! #ab-mon? high & l[ prices = ! ancill>y asset4 7,j7 ,if applicable1 in=mation relat+ to any ext]nal audit ( ! code & functionality ( ! ancill>y asset1 includ+ ! entity p]=m+ ! audit & ! exp]i5ce ( ! entity 9 conduct+ simil> audits4 7,k7 ,if applicable1 any ?ird-p>ty valuation report or economic analysis reg>d+ ! ancill>y asset or ! project$ m>ket ( ! ancill>y asset1 :i* %all include ! entity p]=m+ ! valuation or analysis & ! exp]i5ce ( ! entity 9 conduct+ simil> reports or analyses4 7,l7 ,if ! ancill>y asset is intangible1 in=mation relat+ to cu/ody by ! own] ( ! ancill>y asset or a ?ird p>ty4 7,m7 ,in=mation on intellectual prop]ty rights claim$ or disput$ relat+ to ! ancill>y asset4 7,n7 ,a description ( ! te*nology und]ly+ ! ancill>y asset4 7,o7 ,any mat]ial tax consid]ations applicable to own+1 /or+1 us+1 or trad+ ! ancill>y asset4 7,p7 ,any mat]ial legal or regulatory consid]ations applicable to own+1 /or+1 us+1 or trad+ ! ancill>y asset1 includ+ any legal proce$+ t may impact ! value ( ! ancill>y asset4 7,q7 ,any o!r mat]ial factor or in=mation t may impact ! value ( ! ancill>y asset & ab\t :i* ! issu] is reasonably aw>e4 7d7 ,application to successor entities & c]ta9 affiliates 7#a7 ,9 g5]al ,if an issu] w\ld o!rwise be subject to specifi$ p]iodic disclosure requirem5ts "u subsection 7c7 & is no long] 9 op]ation1 any successor entity t directly or indirectly receiv$ n less ?an #ej p]c5t ( ! proce$s rais$ by ! sale ( ! relat$ securities ( t issu]1 & t is engag$ 9 entrepr5eurial or manag]ial ef=ts t prim>ily det]m9e ! value ( ! applicable ancill>y asset1 %all furni%1 or cause to be furni%$1 to ! ,commission ! in=mation requir$ "u t subsection4 7#b7 ,c]ta9 affiliates ,if an entity controll$ by an issu] is subject to specifi$ p]iodic disclosure requirem5ts "u subsection 7c7 & is engag$ 9 entrepr5eurial or manag]ial ef=ts t prim>ily det]m9e ! value ( an ancill>y asset1 ! entity may furni% to ! ,commission ! in=mation requir$ "u t subsection4 7e7 ,volunt>y disclosure ,an issu] t is n subject to ! specifi$ p]iodic disclosure requirem5ts "u subsection 7c7 & t (f]s or sells a security ?r\gh an arrangem5t or s*eme t con/itutes an inve/m5t contract1 z t t]m is us$ 9 section #b7;a77#a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a77#a771 & t provides ! hold] ( t security ) an ancill>y asset 9 connection ) ! acquisition ( ! security may volunt>ily furni% to ! ,commission ! in=mation requir$ "u t subsection if ! issu] believes t x is reasonably likely t ! issu] w become subject to ^? requirem5ts 9 ! future4 7f7 ,exemptions ,! ,commission may1 by ord]1 exempt an ancill>y asset f ! specifi$ p]iodic disclosure requirem5ts "u subsection 7c7 if ! ,commission det]m9es t ! public policy goals ( disclosure & consum] protection are n satisfi$ by requir+ disclosures relat+ to an ancill>y asset4 7g7 ,rule ( con/ruction ,if an issu] fails to comply ) a provision ( ?is section1 an ancill>y asset provid$ by ! issu] %all n be presum$ to be a security "u a provision ( law describ$ 9 subsection 7b77#d77;,a77ii71 solely because ( su* failure4 7h7 ,rules ,! ,commission may adopt rules & guidance to implem5t ?is section1 consi/5t ) ! /atutory int5t ( ?is section4 4 #cjb4 ,t]m9ation ( specifi$ p]iodic disclosure requirem5ts ,section #da ( ! ,securities ,ex*ange ,act ( #aicd1 z add$ by section #cja ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 7i7 ,t]m9ation ( specifi$ p]iodic disclosure requirem5ts 7#a7 ,9 g5]al ,! obligation ( an issu] to furni% ! in=mation requir$ "u subsection 7c7 %all t]m9ate on ! date t is #ij days1 or su* %ort] p]iod z ! ,commission may det]m9e1 aft] ! date on :i* ! issu] files a c]tification describ$ 9 p>agraph 7#b74 7#b7 ,c]tification 7,a7 ,9 g5]al ,a c]tification fil$ "u p>agraph 7#a7 %all be support$ by reasonable evid5ce1 bas$ on ! k ( ! issu] fil+ ! c]tification1 aft] due inquiry1 t-- 7i7 ! av]age daily aggregate value ( all trad+ 9 ! applicable ancill>y asset 9 all spot m>kets op5 to ! public 9 ! ,unit$ ,/ates 9 ! #ab-mon? p]iod prec$+ ! date on :i* ! c]tification is fil$ 0 n great] ?an #e1jjj1jjj2 or 7ii7 dur+ ! #ab-mon? p]iod prec$+ ! date on :i* ! c]tification is fil$1 nei!r ! applicable issu]1 nor any entity controll$ by ! applicable issu]1 engag$ 9 entrepr5eurial or manag]ial ef=ts t prim>ily det]m9$ ! value ( ! ancill>y asset4 7,b7 ,d5ial 7i7 ,9 g5]al ,subject to subp>agraph 7,c77ii71 ! ,commission may1 by majority vote & aft] notice & opportunity = he>+1 d5y a c]tification fil$ "u p>agraph 7#a7 if ! ,commission f9ds t ! c]tification is n support$ by sub/antial evid5ce4 7ii7 ,effect ,! d5ial1 "u clause 7i71 ( a c]tification fil$ "u p>agraph 7#a7-- 7,i7 %all t]m9ate ! c]tification s fil$2 & 7,,ii7 %all n prev5t ! applicable issu] f fil+ ano!r c]tification "u p>agraph 7#a71 if ! re-fil$ c]tification is fil$ n e>li] ?an #ahj days aft] ! date on :i* ! orig9al c]tification is d5i$4 7,c7 ,p5d+ /atus 7i7 ,9 g5]al ,t]m9ation ( ! disclosure requirem5ts describ$ 9 p>agraph 7#a7 applicable to an issu] t has fil$ a c]tification "u t p>agraph %all be def]r$ p5d+ review by ! ,commission ( ! evid5ce support+ ! c]tification4 7ii7 ,effect ( delay ,if1 z ( ! date t is #ij days aft] receiv+ a c]tification fil$ "u p>agraph 7#a71 ! ,commission has n reque/$ additional evid5ce ) respect to ! c]tification f ! applicable issu]1 ! disclosure obligations t are ! subject ( ! c]tification %all t]m9ate4 4 #cjc4 ,guidance relat+ to satisfactory control location ,n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is ,act1 ! ,securities & ,ex*ange ,commission 7ref]r$ to 9 ?is title z ! ,commission7 %all issue guidance relat+ to section #bdj4ae;c#c-c ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulation1 provid+ t ! requirem5t to designate a satisfactory control location = a digital asset t is1 or may repres5t own]%ip (1 a security may be satisfi$ by protect+ ! digital asset ?r\gh comm]cially reasonable cyb]security practices to ma9ta9 control ( suffici5t private key mat]ial to transf] control ( ! digital asset to ano!r p]son1 or to cause ano!r p]son to obta9 control ( ! digital asset1 includ+ by means ( a sm>t contract t g5]ates private key mat]ial )\t ! involvem5t ( a natural p]son4 #cjd4 ,cu/ody & cu/om] protection rules 7a7 ,9 g5]al 7#a7 ,mod]nization ( exi/+ rules & adoption ( new rules ,n lat] ?an #ah mon?s aft] ! date ( enactm5t ( ?is ,act1 ! ,commission %all-- 7,a7 complete ! multi-ye> /udy ( ! ,commission ) respect to ! mod]nization ( ! rules ( ! ,commission relat+ to cu/om] protection 7section #bdj4ae;c#c-c ( title #ag1 ,code ( ,f$]al ,regulations7 & cu/ody ( securities1 digital assets1 & cli5t funds 7section #bge4bjf7d7-b ( title #ag1 ,code ( ,f$]al ,regulations72 & 7,b7 consi/5t ) ! results ( ! /udy describ$ 9 subp>agraph 7,a71 adopt f9al rules relat+ to ! issues describ$ 9 p>agraph 7#b74 7#b7 ,cont5ts ,! f9al rules adopt$ "u p>agraph 7#a77;,b7 %all address ! foll[+ concepts3 7,a7 ,inve/or protection & education ) respect to digital assets4 7,b7 ,digital assets1 di/ribut$ l$g] te*nology1 & use ( collaborative cu/ody or multi-signature arrangem5ts1 includ+ di/ribution ( private key mat]ial & result+ obligations4 7,c7 ,*anges 9 m>ket /ructure & asset *>act]i/ics1 includ+ disuse ( physical securities & assets & appropriate cu/odial me?ods = electronically native assets4 7,d7 ,r$uction ( regulatory burd54 7,e7 ,use ( te*nology to facilitate regulatory compliance & risk managem5t4 7,f7 ,p>ity ( ,/ate- & nationally *>t]$ banks1 z def9$ 9 section #bjb7;a7 ( ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#b7;a771 ) respect to asset cu/ody 9 a mann] consi/5t ) t ,act 7#ae ,u4,s4,c4 #hj;b-#a et seq47 & o!r exi/+ law4 7,g7 ,/&>ds "u :i* an issu] ( an unregi/]$ digital asset t is1 or may repres5t own]%ip (1 a security is n requir$ to utilize a regi/]$ transf] ag5t4 7,h7 ,specification ( ! digital assets :i* con/itute cli5t funds "u section #bge4bjf7d7-b ( title #ag1 ,code ( ,f$]al ,regulations4 7b7 ,digital assets & securities ,n lat] ?an #bgj days aft] ! date ( enactm5t ( ?is ,act1 ! ,commission %all adopt f9al guidance p]mitt+1 = ! purposes ( section #bdj4ae;c#c-c7;b7 ( title #ag1 ,code ( ,f$]al ,regulations1 a brok] or a deal] to p]=m1 )9 ! same legal entity1 bo? trad+ & cu/odial activities relat+ to fully paid & excess m>g9 digital assets1 includ+ virtual curr5cy & digital assets t are securities or may repres5t own]%ip ( securities1 9 addition to traditional securities1 cli5t funds1 & o!r assets p]mitt$ by ! ,commission to be )9 ! control ( a brok] or deal]4 ,,iv ,responsible ,commodities ,innovation #dja4 ,def9itions ,section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a7 is am5d$-- 7#a7 9 p>agraph 7#i71 by /rik+ & froz5 conc5trat$ orange juice & ins]t+ froz5 conc5trat$ orange juice1 & a digital asset 7consi/5t ) section #b7;c77#b77;,f772 7#b7 by ins]t+ aft] p>agraph 7#ae7 ! foll[+3 7#ae;,a7 ,digital asset 7,a7 ,9 g5]al ,except z provid$ 9 subp>agraph 7,b71 ! t]m digital asset has ! mean+ giv5 ! t]m 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code4 7,b7 ,exclusion ,! t]m digital asset does n include an asset t provides ! hold] ( ! asset ) any ( ! foll[+ rights 9 a bus9ess entity3 7i7 ,a debt or equity int]e/ 9 t entity4 7ii7 ,liquidation rights ) respect to t entity4 7iii7 ,an entitlem5t to an int]e/ or divid5d paym5t f t entity4 7iv7 ,a pr(it or rev5ue %>e 9 t entity d]iv$ solely f ! entrepr5eurial or manag]ial ef=ts ( o!rs4 7v7 ,any o!r f9ancial int]e/ 9 t entity4 7#ae;,b7 ,digital asset ex*ange ,! t]m digital asset ex*ange means a trad+ facility t li/s = trad+ at lea/ #a digital asset4 2 7#c7 9 p>agraph 7#bh77;,a77i7-- 7,a7 9 subclause 7,i7-- 7i7 9 item 7aa7-- 7,i7 9 subitem 7,,ee71 by /rik+ or at ! end2 & 7,,ii7 by add+ at ! end ! foll[+3 7,,gg7 ! pur*ase or sale ( a digital asset t is trad$ on or subject to ! rules ( a regi/]$ entity2 2 7ii7 9 item 7bb71 by /rik+ & & ins]t+ or2 & 7iii7 by add+ at ! end ! foll[+3 7cc7 act+ z a c\nt]p>ty to any ca% or spot agreem5t1 contract1 or transaction involv+ a digital asset ) a p]son :o is n an eligible contract p>ticipant1 unless ! activity is-- 7,,aa7 conduct$ 9 compliance ) ! laws ( ! ,/ate 9 :i* ! activity occurs2 7,,bb7 subject to regulation by ano!r ,f$]al au?ority2 or 7,,cc7 sep>ately regulat$ "u ?is ,act2 & 2 & 7,b7 9 subclause 7,,ii71 by /rik+ items 7aa7 or 7bb7 & ins]t+ item 7aa71 7bb71 or 7cc72 7#d7 by ins]t+ aft] p>agraph 7#ci7 ! foll[+3 7#ci;,a7 ,regi/]$ digital asset ex*ange ,! t]m regi/]$ digital asset ex*ange means a digital asset ex*ange regi/]$ "u section #e;i4 2 & 7#e7 9 p>agraph 7#dj7-- 7,a7 9 subp>agraph 7,e71 by /rik+ & at ! end2 7,b7 by r$esignat+ subp>agraph 7,f7 z subp>agraph 7,g72 & 7,c7 by ins]t+ aft] subp>agraph 7,e7 ! foll[+3 7,f7 a regi/]$ digital asset ex*ange2 & 4 #djb4 ,report+ & recordkeep+ ,section #d;g ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #f;g7 is am5d$-- 7#a7 9 subsection 7a71 by ins]t+ digital assets or be=e commodities2 & 7#b7 9 subsection 7d71 9 ! second s5t5ce1 by /rik+ commodity futures4 & ins]t+ commodities44 #djc4 ,,cftc jurisdiction ov] digital asset transactions 7a7 ,commission jurisdiction ov] retail digital asset transactions 7#a7 ,9 g5]al ,section #b7;c77#b7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #b7;c77#b77 is am5d$-- 7,a7 9 subp>agraph 7,d77ii7-- 7i7 9 subclause 7,,iii71 9 ! matt] prec$+ item 7aa71 by ins]t+ ( a commodity1 o!r ?an a digital asset1 be=e t2 7ii7 by r$esignat+ subclauses 7,,iv7 & 7,v7 z subclauses 7,v7 & 7,,vi71 respectively2 & 7iii7 by ins]t+ aft] subclause 7,,iii7 ! foll[+3 7,,iv7 a contract ( sale ( a digital asset t-- 7aa7 results 9 actual deliv]y )9 #b days or su* o!r p]iod z ! ,commission may det]m9e by rule bas$ ^u ! typical comm]cial practice 9 ca% or spot m>kets = ! digital asset involv$2 or 7bb7 is execut$ on or subject to ! rules ( a regi/]$ digital asset ex*ange or ) a regi/]$ futures commission m]*ant2 2 & 7,b7 by add+ at ! end ! foll[+3 7,f7 ,commission jurisdiction ov] digital asset transactions 7i7 ,9 g5]al 7,i7 ,jurisdiction ,subject to sections #f;d & #ab7;e7 & section #djc ( ! ,commodity ,futures ,mod]nization ,act ( #bjjj 7#g ,u4,s4,c4 #bg;a71 ! ,commission %all h exclusive jurisdiction ov] any agreem5t1 contract1 or transaction involv+ a contract ( sale ( a digital asset 9 int]/ate comm]ce1 includ+ ancill>y assets 7consi/5t ) section #da7;b77#d7 ( ! ,securities ,ex*ange ,act ( #aicd71 except t specifi$ p]iodic report+ requirem5ts made by an issu] :i* provid$ ! hold] ( ! security ) an ancill>y asset "u t section1 & ! security t con/itutes an inve/m5t contract 7)9 ! mean+ ( section #b7;a77#a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a77#a7771 %all rema9 )9 ! jurisdiction ( ! ,securities & ,ex*ange ,commission4 7,,ii7 ,fungibility requirem5t ,! ,commission %all only ex]cise jurisdiction ov] an agreem5t1 contract1 or transaction involv+ a contract ( sale ( a digital asset t is fungible1 :i* %all n include digital collectibles & o!r unique digital assets4 7ii7 ,)hold+ ( rulemak+ au?ority ov] c]ta9 transactions ,not)/&+ clause 7i71 ?is subp>agraph %all n be int]pret$ to p]mit ! ,commission to issue any rule reg>d+ any agreem5t1 contract1 or transaction t is n (f]$1 solicit$1 trad$1 facilitat$1 execut$1 cle>$1 report$1 or o!rwise dealt 9-- 7,i7 on or subject to ! rules ( a regi/]$ entity2 or 7,,ii7 by any o!r entity regi/]$ by ! ,commission4 7iii7 ,limitation ,clause 7i7 %all n apply to cu/odial activities ) respect to a digital asset ( an entity sup]vis$ or regulat$ by a ,/ate or o!r ,f$]al regulatory ag5cy4 4 7#b7 ,con=m+ am5dm5t ,section #b7;a77#a77;,a7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #b7;a77#a77;,a77 is am5d$1 9 ! fir/ s5t5ce1 by /rik+ section #ai ( ?is ,act & ins]t+ subsection 7c77#b77;,f7 or section #ai4 7b7 ,segregation ( digital assets ,section #d;d ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #f;d7 is am5d$ by add+ at ! end ! foll[+3 7i7 ,segregation ( digital assets 7#a7 ,hold+ ( cu/om] assets 7,a7 ,9 g5]al ,ea* futures commission m]*ant %all hold cu/om] money1 assets1 & prop]ty 9 a mann] to m9imize ! cu/om]'s risk ( loss (1 or unreasonable delay 9 ! access to1 ! money1 assets1 & prop]ty4 7,b7 ,cu/odian ,a futures commission m]*ant %all hold ! prop]ty ( a cu/om] ( ! futures commission m]*ant ) a lic5s$1 *>t]$1 or regi/]$ entity subject to regulation by #a ( ! foll[+ ag5cies3 7i7 ,! ,commission4 7ii7 ,! ,securities & ,ex*ange ,commission4 7iii7 ,an appropriate ,f$]al bank+ ag5cy 7z def9$ 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac774 7iv7 ,a ,/ate bank sup]visor 7z def9$ 9 t section74 7v7 ,an appropriate =eign gov]nm5tal au?ority 9 ! home c\ntry ( ! cu/odian4 7#b7 ,segregation ( funds 7,a7 ,def9ition ( digital asset cu/om] ,9 ?is p>agraph1 ! t]m digital asset cu/om] means a cu/om] involv$ 9 a ca% or spot1 lev]ag$1 m>g9$1 or f9anc$ digital asset transaction 9 :i* ! futures commission m]*ant is act+ z ! c\nt]p>ty4 7,b7 ,requirem5ts 7i7 ,9 g5]al ,a futures commission m]*ant %all treat & deal ) all money1 assets1 & prop]ty ( any digital asset cu/om] receiv$ z belong+ to ! cu/om]4 7ii7 ,comm+l+ prohibit$ ,money1 assets1 & prop]ty ( a digital asset cu/om] describ$ 9 clause 7i7-- 7,i7 %all be sep>ately acc\nt$ =2 & 7,,ii7 %all n be-- 7aa7 comm+l$ ) ! funds ( ! futures commission m]*ant2 or 7bb7 us$ to m>g91 secure1 or gu>antee any trades or acc\nts ( any cu/om] or p]son o!r ?an ! p]son = :om ! money1 assets1 or prop]ty are held4 7,c7 ,exceptions 7i7 ,use ( funds 7,i7 ,9 g5]al ,not)/&+ subp>agraph 7,b71 money1 assets1 & prop]ty ( a digital asset cu/om] may1 = conv5i5ce1 be comm+l$ & deposit$ 9 ! same acc\nt or acc\nts ) an entity describ$ 9 p>agraph 7#a77;,b74 7,,ii7 ,)drawal ,not)/&+ subp>agraph 7,b71 ! %>e ( ! money1 assets1 & prop]ty describ$ 9 subclause 7,i7 z 9 ! normal c\rse ( bus9ess is necess>y to m>g91 gu>antee1 secure1 transf]1 adju/1 or settle a digital asset transaction ) a regi/]$ entity may be )drawn & appli$ to ^? purposes1 includ+ ! paym5t ( commissions1 brok]age1 int]e/1 taxes1 /orage1 & o!r *>ges1 lawfully accru+ 9 connection ) ! digital asset transaction4 7ii7 ,commission action ,not)/&+ subp>agraph 7,b71 9 accordance ) su* t]ms & conditions z ! ,commission may prescribe by rule or ord]1 any money1 assets1 or prop]ty ( a digital asset cu/om] may be comm+l$ & deposit$ 9 cu/om] acc\nts ) any o!r money1 assets1 or prop]ty receiv$ by ! futures commission m]*ant & requir$ by ! ,commission to be sep>ately acc\nt$ = & treat$ & dealt ) z belong+ to ! digital asset cu/om]4 7,d7 ,p]mitt$ inve/m5ts ,money ( a digital asset cu/om] may be inve/$-- 7i7 9-- 7,i7 obligations ( ! ,unit$ ,/ates2 7,,ii7 g5]al obligations ( any ,/ate or ( any political subdivision ( a ,/ate2 7,,iii7 obligations fully gu>ante$ z to pr9cipal & int]e/ by ! ,unit$ ,/ates2 or 7,,iv7 any o!r inve/m5t t ! ,commission may by rule prescribe2 & 7ii7 9 accordance ) su* rules & subject to su* conditions z ! ,commission may prescribe4 7,e7 ,prohibition ,x %all be unlawful = any p]son1 includ+ any d]ivatives cle>+ organization or depository in/itution1 t has receiv$ any money1 assets1 or prop]ty = deposit 9 a sep>ate acc\nt or acc\nts z requir$ by subp>agraph 7,b7 to hold1 dispose (1 or use any ( ! money1 assets1 or prop]ty t belongs to ! deposit+ futures commission m]*ant or any p]son o!r ?an ! digital asset cu/om] ( ! futures commission m]*ant4 7#c7 ,cu/om] "r to opt out 7,a7 ,9 g5]al ,a cu/om] %all h ! "r to waive any requirem5t "u ?is subsection by affirmatively elect+1 9 writ+ to ! futures commission m]*ant1 to waive ! requirem5t4 7,b7 ,limitations ,! ,commission may1 by rule1 e/abli% notice & disclosure requirem5ts1 segregation requirem5ts1 inve/m5t limitations1 & o!r rules relat+ to ! waiv+ ( any requirem5t "u ?is subsection t are reasonably necess>y to protect cu/om]s1 includ+ eligible contract p>ticipants1 non-eligible contract p>ticipants1 & any o!r class ( cu/om]s4 4 7c7 ,limitation on futures commission m]*ants act+ z a c\nt]p>ty 9 digital asset transactions ,section #d;d ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #f;d7 7z am5d$ by subsection 7b77 is am5d$ by add+ at ! end ! foll[+3 7j7 ,limitation on futures commission m]*ants act+ z a c\nt]p>ty 9 digital asset transactions ,a regi/]$ futures commission m]*ant %all n act z a c\nt]p>ty 9 any agreem5t1 contract1 or transaction involv+ a digital asset t has n be5 li/$ = trad+ on a regi/]$ digital asset ex*ange4 4 7d7 ,common provisions applicable to regi/]$ entities ,section #e;c ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #g;a-#b7 is am5d$-- 7#a7 9 subsection 7a77#a71 by /rik+ #e7;d7 & #e;b7c77#b7 & ins]t+ #e7;d71 #e;b7c77#b71 & #e;i7c72 7#b7 9 subsection 7b71 by ins]t+ regi/]$ digital asset ex*ange1 be=e d]ivatives ea* place x appe>s2 & 7#c7 9 subsection 7c7-- 7,a7 9 p>agraph 7#b71 by ins]t+ or p>ticipants be=e 79 a2 7,b7 9 p>agraph 7#d77;,b71 by /rik+ #a;a7#aj7 & ins]t+ #a;a7#i72 & 7,c7 9 p>agraph 7#e71 by add+ at ! end ! foll[+3 7,d7 ,special rules = ! li/+ ( c]ta9 digital assets 7i7 ,9 g5]al ,9 ! case ( li/+ = trad+ a digital asset t has n previ\sly be5 li/$ = trad+ on ano!r regi/]$ entity-- 7,i7 p>agraphs 7#b7 & 7#c7 %all apply z if ! li/+ 7 a rule2 & 7,,ii7 p>agraph 7#b7 %all be appli$ by sub/itut+ #bj bus9ess days = #aj bus9ess days4 7ii7 ,transitional ext5sion ,dur+ ! #a-ye> p]iod beg9n+ on ! date ( ! regi/ration ( ! fir/ digital asset ex*ange1 ! ,commission %all h an additional #bj bus9ess days to review any c]tification "u clause 7i74 7iii7 ,consid]ation ( comm5ts ,9 conduct+ a review "u clause 7i71 ! ,commission %all consid] any comm5ts provid$ by ! ,securities & ,ex*ange ,commission ) respect to ! legal classification ( a digital asset4 4 #djd4 ,regi/ration ( digital asset ex*anges 7a7 ,9 g5]al ,! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq47 is am5d$ by ins]t+ aft] section #e;h ! foll[+3 #e;i4 ,regi/ration ( digital asset ex*anges 7a7 ,def9ition ( cu/om] ,9 ?is section1 ! t]m cu/om] means any p]son t ma9ta9s an acc\nt = ! trad+ ( digital assets directly ) a regi/]$ digital asset ex*ange 7o!r ?an a p]son t is own$ or controll$1 directly or indirectly1 by ! regi/]$ digital asset ex*ange7 on behalf ( ! p]son or any o!r p]son4 7b7 ,regi/ration 7#a7 ,9 g5]al ,any trad+ facility t (f]s or seeks to (f] a m>ket 9 digital assets may regi/] ) ! ,commission z a digital asset ex*ange by submitt+ to ! ,commission an application 9 su* =m & conta9+ su* in=mation z ! ,commission may require = ! purpose ( mak+ ! det]m9ations requir$ = approval "u subsections 7d7 & 7f74 7#b7 ,deem$ regi/ration ,a regi/]$ designat$ contract m>ket or regi/]$ swap execution facility t fulfills ! requirem5ts ( ?is section may elect to be consid]$ a regi/]$ digital asset ex*ange1 9 su* =m & mann] z ! ,commission %all prescribe4 7#c7 ,additional regi/ration ,a regi/]$ digital asset ex*ange %all be regi/]$ ) ! ,secret>y ( ! ,treasury z a money s]vices bus9ess4 7c7 ,trad+ 7#a7 ,9 g5]al ,a regi/]$ digital asset ex*ange may make available = trad+ any digital asset t is n readily susceptible to manipulation1 subject to ?is subsection4 7#b7 ,rules gov]n+ m>g9$ or lev]ag$ trad+ ,! ,commission may make1 promulgate1 & en=ce su* additional rules gov]n+ m>g9$1 lev]ag$1 or f9anc$ transactions z are reasonably necess>y to protect m>ket p>ticipants & promote ! ord]ly settlem5t ( transactions ) respect to-- 7,a7 disclosure2 7,b7 recordkeep+2 7,c7 capital1 m>g91 & o!r f9ancial res\rces2 7,d7 report+2 7,e7 bus9ess conduct2 7,f7 docum5tation2 & 7,g7 su* o!r matt]s z ! ,commission det]m9es to be necess>y4 7#c7 ,prohibition on trad+ d]ivatives products ,regi/ration z a digital asset ex*ange %all n p]mit a trad+ facility to (f] any contract ( sale ( a commodity = future deliv]y1 option1 or swap = trad+ )\t also be+ regi/]$ z a designat$ contract m>ket or swap execution facility4 7d7 ,core pr9ciples = digital asset ex*anges 7#a7 ,compliance ) core pr9ciples 7,a7 ,9 g5]al ,to be regi/]$1 & ma9ta9 regi/ration1 z a digital asset ex*ange1 ! regi/]$ digital asset ex*ange %all comply )-- 7i7 ! core pr9ciples describ$ 9 ?is subsection2 & 7ii7 any requirem5t t ! ,commission may impose by rule pursuant to section #h;a7#e74 7,b7 ,reasonable discretion ( digital asset ex*ange ,unless o!rwise det]m9$ by ! ,commission by rule1 a regi/]$ digital asset ex*ange describ$ 9 subp>agraph 7,a7 %all h reasonable discretion 9 e/abli%+ ! mann] 9 :i* ! regi/]$ digital asset ex*ange complies ) ! core pr9ciples describ$ 9 ?is subsection4 7#b7 ,compliance ) rules ,a regi/]$ digital asset ex*ange %all-- 7,a7 e/abli% & en=ce compliance ) #a or m rules ( ! regi/]$ digital asset ex*ange1 includ+-- 7i7 ! t]ms & conditions ( ! trades trad$ or process$ on or ?r\gh ! regi/]$ digital asset ex*ange2 & 7ii7 any limitation on access to ! regi/]$ digital asset ex*ange2 7,b7 e/abli% & en=ce compliance ) trad+1 trade process+1 & p>ticipation rules t w det] abuses & h ! capacity to detect1 inve/igate1 & en=ce violations ( ^? rules1 includ+ means-- 7i7 to provide m>ket p>ticipants ) imp>tial access to ! m>ket2 & 7ii7 to capture in=mation t may be us$ 9 e/abli%+ :e!r rule violations h occurr$2 & 7,c7 e/abli% rules gov]n+ ! op]ation ( ! regi/]$ digital asset ex*ange1 includ+ rules specify+ trad+ proc$ures to be us$ 9 ent]+ & execut+ ord]s trad$ or po/$ on ! regi/]$ digital asset ex*ange4 7#c7 ,digital assets n readily susceptible to manipulation 7,a7 ,9 g5]al ,a regi/]$ digital asset ex*ange %all p]mit trad+ only 9 assets t are n readily susceptible to manipulation4 7,b7 ,li/+ re/rictions ,a regi/]$ digital asset ex*ange %all n p]mit trad+ 9 a digital asset if x is reasonably likely t-- 7i7 ! transaction hi/ory ( ! digital asset c be fraudul5tly alt]$ by any p]son or gr\p ( p]sons act+ collectively2 or 7ii7 ! functionality or op]ation ( ! digital asset c be mat]ially alt]$ by any p]son or gr\p ( p]sons "u common control4 7,c7 ,consid]ations ,9 assess+ a digital asset "u ?is p>agraph1 a regi/]$ digital asset ex*ange %all consid]-- 7i7 ! purpose & use ( ! digital asset2 7ii7 ! creation or release process ( ! digital asset2 7iii7 ! cons5sus me*anism ( ! digital asset2 7iv7 ! gov]nance /ructure ( ! digital asset2 7v7 ! p>ticipation & di/ribution ( ! digital asset2 7vi7 ! curr5t & propos$ functionality ( ! digital asset2 7vii7 ! legal classification ( ! digital asset2 & 7viii7 any o!r factor requir$ by ! ,commission4 7#d7 ,treatm5t ( cu/om] assets 7,a7 ,requir$ /&>ds & proc$ures ,a regi/]$ digital asset ex*ange %all e/abli% /&>ds & proc$ures t are design$ to protect & ensure ! safety ( cu/om] money1 assets1 & prop]ty4 7,b7 ,hold+ ( cu/om] assets 7i7 ,9 g5]al ,a regi/]$ digital asset ex*ange %all hold cu/om] money1 assets1 & prop]ty 9 a mann] to m9imize ! cu/om]'s risk ( loss (1 or unreasonable delay 9 ! access to1 ! money1 assets1 & prop]ty4 7ii7 ,segregation ( funds 7,i7 ,9 g5]al ,a regi/]$ digital asset ex*ange %all treat & deal ) all money1 assets1 & prop]ty ( any cu/om] receiv$ z belong+ to ! cu/om]4 7,,ii7 ,comm+l+ prohibit$ ,money1 assets1 & prop]ty ( a cu/om] describ$ 9 subclause 7,i7-- 7aa7 %all be sep>ately acc\nt$ =2 & 7bb7 %all n be-- 7,,aa7 comm+l$ ) ! funds ( ! regi/]$ digital asset ex*ange2 or 7,,bb7 us$ to m>g91 secure1 or gu>antee any trades or acc\nts ( any cu/om] or p]son o!r ?an ! p]son = :om ! money1 assets1 or prop]ty are held4 7iii7 ,exceptions 7,i7 ,use ( funds 7aa7 ,9 g5]al ,not)/&+ clause 7ii71 money1 assets1 & prop]ty ( cu/om]s ( a regi/]$ digital asset ex*ange may1 = conv5i5ce1 be comm+l$ & deposit$ ) an entity describ$ 9 section #d;d7i77#a77;,b74 7bb7 ,)drawal ,not)/&+ clause 7ii71 ! %>e ( ! money1 assets1 & prop]ty describ$ 9 item 7aa7 z 9 ! normal c\rse ( bus9ess is necess>y to m>g91 gu>antee1 secure1 transf]1 adju/1 or settle a digital asset transaction ) a regi/]$ entity may be )drawn & appli$ to ^? purposes1 includ+ ! paym5t ( commissions1 brok]age1 int]e/1 taxes1 /orage1 & o!r *>ges1 lawfully accru+ 9 connection ) ! digital asset transaction4 7,,ii7 ,commission action ,not)/&+ clause 7ii71 9 accordance ) su* t]ms & conditions z ! ,commission may prescribe by rule or ord]1 any money1 assets1 or prop]ty ( ! cu/om]s ( a regi/]$ digital asset ex*ange may be comm+l$ & deposit$ 9 cu/om] acc\nts ) any o!r money1 assets1 or prop]ty receiv$ by ! regi/]$ digital asset ex*ange & requir$ by ! ,commission to be sep>ately acc\nt$ = & treat$ & dealt ) z belong+ to ! cu/om] ( ! regi/]$ digital asset ex*ange4 7,c7 ,p]mitt$ inve/m5ts ,money describ$ 9 subp>agraph 7,b77ii77,i7 may be inve/$-- 7i7 9-- 7,i7 obligations ( ! ,unit$ ,/ates2 7,,ii7 g5]al obligations ( any ,/ate or ( any political subdivision ( a ,/ate2 7,,iii7 obligations fully gu>ante$ z to pr9cipal & int]e/ by ! ,unit$ ,/ates2 or 7,,iv7 any o!r inve/m5t t ! ,commission may by rule prescribe2 & 7ii7 9 accordance ) su* rules & subject to su* conditions z ! ,commission may prescribe4 7,d7 ,misuse ( cu/om] prop]ty ,x %all be unlawful-- 7i7 = any regi/]$ digital asset ex*ange t has receiv$ any cu/om] money1 assets1 or prop]ty = cu/ody to dispose (1 or use any ( ! money1 assets1 or prop]ty z belong+ to ! regi/]$ digital asset ex*ange2 or 7ii7 = any o!r p]son1 includ+ any o!r regi/]$ digital asset ex*ange or cu/odian t has receiv$ any cu/om] money1 assets1 or prop]ty = deposit1 to hold1 dispose (1 or use any ( ! money1 assets1 or prop]ty z belong+ to-- 7,i7 ! regi/]$ digital asset ex*ange t deposit$ ! money1 assets1 or prop]ty2 or 7,,ii7 any p]son o!r ?an ! cu/om]s ( ! regi/]$ digital asset ex*ange4 7,e7 ,cu/om] "r to opt out 7i7 ,9 g5]al ,a cu/om] %all h ! "r to waive any requirem5t "u subp>agraph 7,b7 by affirmatively elect+1 9 writ+ to ! regi/]$ digital asset ex*ange1 to waive ! requirem5t4 7ii7 ,limitations ,! ,commission may1 by rule1 e/abli% notice & disclosure requirem5ts1 segregation requirem5ts1 inve/m5t limitations1 & o!r rules relat+ to ! waiv+ ( any requirem5t "u ?is p>agraph t is reasonably necess>y to protect cu/om]s1 includ+ eligible contract p>ticipants1 non-eligible contract p>ticipants1 or any o!r class ( cu/om]s4 7#e7 ,monitor+ ( trad+ & trade process+ 7,a7 ,9 g5]al ,a regi/]$ digital asset ex*ange %all provide a competitive1 op51 & effici5t m>ket & me*anism = execut+ transactions t protects ! price discov]y process ( trad+ on ! regi/]$ digital asset ex*ange4 7,b7 ,protection ( m>kets & m>ket p>ticipants ,a regi/]$ digital asset ex*ange %all e/abli% & en=ce compliance ) rules-- 7i7 to protect m>kets & m>ket p>ticipants f abusive practices committ$ by any p>ty1 includ+ abusive practices committ$ by a p>ty act+ z an ag5t = a p>ticipant2 & 7ii7 to promote fair & equitable trad+ on ! regi/]$ digital asset ex*ange4 7,c7 ,proc$ures & monitor+ ,a regi/]$ digital asset ex*ange %all-- 7i7 e/abli% & en=ce compliance ) rules or t]ms & conditions def9+1 or specifications detail+-- 7,i7 trad+ proc$ures to be us$ 9 ent]+ & execut+ ord]s trad$ on or ?r\gh ! facilities ( ! regi/]$ digital asset ex*ange2 & 7,,ii7 proc$ures = trade process+ ( digital assets on or ?r\gh ! facilities ( ! regi/]$ digital asset ex*ange2 & 7ii7 monitor trad+ 9 digital assets to prev5t manipulation1 price di/ortion1 & disruptions ( ! deliv]y or ca% settlem5t process ?r\gh surveillance1 & compliance1 includ+ me?ods = conduct+ real-"t monitor+ ( trad+ & compreh5sive & accurate trade recon/ructions4 7#f7 ,ability to obta9 in=mation ,a regi/]$ digital asset ex*ange %all-- 7,a7 e/abli% & en=ce rules t w all[ ! regi/]$ digital asset ex*ange to obta9 any necess>y in=mation to p]=m any ( ! functions describ$ 9 ?is section2 7,b7 provide ! in=mation to ! ,commission on reque/2 & 7,c7 h ! capacity to c>ry out su* int]national in=mation-%>+ agreem5ts z ! ,commission may require4 7#g7 ,em]g5cy au?ority ,a regi/]$ digital asset ex*ange %all adopt rules to provide = ! ex]cise ( em]g5cy au?ority1 9 consultation or coop]ation ) ! ,commission or a regi/]$ entity1 z is necess>y & appropriate1 includ+ ! au?ority to facilitate ! liquidation or transf] ( op5 positions 9 any digital asset or to susp5d or curtail trad+ 9 a digital asset4 7#h7 ,report+ requirem5ts 7,a7 ,9 g5]al ,a regi/]$ digital asset ex*ange %all provide to ! ,commission in=mation t is det]m9$ by ! ,commission to be necess>y to p]=m any responsibility ( ! ,commission "u ?is ,act4 7,b7 ,timely publication ( trad+ in=mation 7i7 ,9 g5]al 7,i7 ,publication ,a regi/]$ digital asset ex*ange %all make public timely in=mation on price1 trad+ volume1 & o!r trad+ data on digital assets to ! ext5t prescrib$ by ! ,commission4 7,,ii7 ,accessibility ,a regi/]$ digital asset ex*ange may make trad+ data freely accessible to ! public "u rules e/abli%$ by ! ,commission4 7ii7 ,capacity ( digital asset ex*ange ,a regi/]$ digital asset ex*ange %all be requir$ to h ! capacity to electronically capture & transmit trade in=mation ) respect to transactions execut$ on ! regi/]$ digital asset ex*ange4 7#i7 ,recordkeep+ & report+ 7,a7 ,9 g5]al ,a regi/]$ digital asset ex*ange %all-- 7i7 ma9ta9 records ( all activities relat+ to ! bus9ess ( ! regi/]$ digital asset ex*ange1 includ+ a complete audit trail1 9 a =m & mann] acceptable to ! ,commission = a p]iod ( #e ye>s2 7ii7 report to ! ,commission1 9 a =m & mann] acceptable to ! ,commission1 su* in=mation z ! ,commission det]m9es to be necess>y or appropriate = ! ,commission to p]=m ! duties ( ! ,commission "u ?is ,act2 & 7iii7 keep any records relat+ to ancill>y assets op5 to inspection & exam9ation by ! ,securities & ,ex*ange ,commission4 7,b7 ,in=mation-%>+ ,subject to section #h1 & on reque/1 ! ,commission %all %>e in=mation collect$ "u subp>agraph 7,a7 )-- 7i7 a self-regulatory organization2 7ii7 ! ,securities & ,ex*ange ,commission2 7iii7 an appropriate ,f$]al bank+ ag5cy 7z def9$ 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac772 7iv7 a ,/ate bank sup]visor 7z def9$ 9 t section72 7v7 a ,/ate securities or commodities regulator2 7vi7 ! ,f9ancial ,/ability ,ov]sight ,c\ncil2 7vii7 ! ,dep>tm5t ( ,ju/ice2 & 7viii7 any o!r p]son t ! ,commission det]m9es to be appropriate1 includ+-- 7,i7 =eign f9ancial sup]visors 7includ+ =eign futures au?orities72 7,,ii7 =eign c5tral banks2 & 7,,iii7 =eign m9i/ries4 7,c7 ,confid5tiality agreem5t ,be=e ! ,commission may %>e in=mation ) any entity describ$ 9 subp>agraph 7,b71 ! ,commission %all receive a writt5 agreem5t f ea* entity /at+ t ! entity %all abide by ! confid5tiality requirem5ts describ$ 9 section #h relat+ to ! in=mation on digital asset transactions t is provid$4 7,d7 ,provid+ in=mation ,ea* regi/]$ digital asset ex*ange %all provide to ! ,commission 7includ+ any designee ( ! ,commission7 in=mation "u subp>agraph 7,a7 9 su* =m & at su* frequ5cy z is requir$ by ! ,commission4 7#aj7 ,antitru/ consid]ations ,unless necess>y or appropriate to a*ieve ! purposes ( ?is ,act1 a regi/]$ digital asset ex*ange %all n-- 7,a7 adopt any rules or take any actions t result 9 any unreasonable re/ra9t ( trade2 or 7,b7 impose any mat]ial anticompetitive burd5 on trad+4 7#aa7 ,conflicts ( int]e/ ,a regi/]$ digital asset ex*ange %all-- 7,a7 e/abli% & en=ce rules to m9imize conflicts ( int]e/ 9 ! decision-mak+ process ( ! regi/]$ digital asset ex*ange2 & 7,b7 e/abli% a process = resolv+ conflicts ( int]e/ describ$ 9 subp>agraph 7,a74 7#ab7 ,f9ancial res\rces 7,a7 ,9 g5]al ,a regi/]$ digital asset ex*ange %all h adequate f9ancial1 op]ational1 & manag]ial res\rces1 z det]m9$ by ! ,commission1 to dis*>ge ea* responsibility ( ! regi/]$ digital asset ex*ange4 7,b7 ,m9imum am\nt ( f9ancial res\rces ,a regi/]$ digital asset ex*ange %all possess f9ancial res\rces t1 at a m9imum1 exce$ ! total am\nt t w\ld enable ! regi/]$ digital asset ex*ange to conduct an ord]ly w9d-d[n ( ! activities ( ! regi/]$ digital asset ex*ange4 7,c7 ,additional f9ancial res\rces = lev]age trad+ ,! ,commission may require su* additional f9ancial res\rces z are necess>y to enable a regi/]$ digital asset ex*ange t (f]s m>g9$1 lev]ag$1 or f9anc$ transactions to fulfill ! cu/om] obligations ( ! regi/]$ digital asset ex*ange4 7#ac7 ,gov]nance fitness /&>ds 7,a7 ,gov]nance arrangem5ts ,a regi/]$ digital asset ex*ange %all e/abli% gov]nance arrangem5ts t are transp>5t to fulfill public int]e/ requirem5ts4 7,b7 ,fitness /&>ds ,a regi/]$ digital asset ex*ange %all e/abli% & en=ce appropriate fitness /&>ds =-- 7i7 directors2 7ii7 any individual or entity ) direct access to ! settlem5t activities ( ! regi/]$ digital asset ex*ange2 7iii7 any individual or entity ) direct access to any cu/odian affiliat$ ) ! regi/]$ digital asset ex*ange2 7iv7 any entity (f]+ affiliat$ s]vices = ! regi/]$ digital asset ex*ange2 & 7v7 any p>ty affiliat$ ) any individual or entity describ$ 9 clauses 7i7 ?r\gh 7iv74 7#ad7 ,sy/em safegu>ds ,a regi/]$ digital asset ex*ange %all-- 7,a7 e/abli% & ma9ta9 a program ( risk analysis & ov]sight to id5tify & m9imize s\rces ( op]ational & security risks1 ?r\gh ! developm5t ( appropriate controls & proc$ures & automat$ sy/ems t-- 7i7 are reliable & secure2 & 7ii7 h adequate scalable capacity2 7,b7 e/abli% & ma9ta9 em]g5cy proc$ures1 backup facilities1 & a plan = disa/] recov]y t all[ =-- 7i7 ! timely recov]y & resumption ( op]ations2 & 7ii7 ! fulfillm5t ( ! responsibilities & obligations ( ! regi/]$ digital asset ex*ange2 & 7,c7 p]iodically conduct te/s to v]ify t ! backup res\rces ( ! regi/]$ digital asset ex*ange are suffici5t to ensure cont9u$-- 7i7 ord] process+ & trade mat*+2 7ii7 price report+2 7iii7 m>ket surveillance2 & 7iv7 ma9t5ance ( a compreh5sive & accurate audit trail4 7e7 ,appo9tm5t ( tru/ee 7#a7 ,9 g5]al ,if a proce$+ "u section #e;e results 9 ! susp5sion or revocation ( ! regi/ration ( a digital asset ex*ange1 or if a digital asset ex*ange )draws f regi/ration1 ! ,commission1 aft] provid+ notice to ! digital asset ex*ange1 may apply to ! di/rict c\rt ( ! ,unit$ ,/ates = ! judicial di/rict 9 :i* ! digital asset ex*ange is locat$ = ! appo9tm5t ( a tru/ee4 7#b7 ,assumption ( jurisdiction ,if ! ,commission applies to a c\rt = appo9tm5t ( a tru/ee "u p>agraph 7#a7-- 7,a7 ! c\rt may take exclusive jurisdiction ov]-- 7i7 ! digital asset ex*ange2 & 7ii7 ! records & assets ( ! digital asset ex*ange1 :]ev] ^? records & assets are locat$2 & 7,b7 if ! c\rt takes jurisdiction "u subp>agraph 7,a71 ! c\rt %all appo9t ! ,commission1 or a p]son designat$ by ! ,commission1 z tru/ee ) p[] to take possession & cont9ue to op]ate or t]m9ate ! op]ations ( ! digital asset ex*ange 9 an ord]ly mann] = ! protection ( cu/om]s1 subject to su* t]ms & conditions z ! c\rt may prescribe4 7f7 ,cu/odian ,a regi/]$ digital asset ex*ange %all deposit ) an entity describ$ 9 section #d;d7i77#a77;,b7 ea* digital asset t is-- 7#a7 ! prop]ty ( a cu/om] ( ! regi/]$ digital asset ex*ange2 7#b7 requir$ to be held by ! regi/]$ digital asset ex*ange "u subsection 7c77#b7 or 7d77#ab72 or 7#c7 o!rwise requir$ by ! ,commission to be s held to reasonably protect cu/om]s or promote ! public int]e/4 7g7 ,exemptions 7#a7 ,9 g5]al ,to promote responsible economic or f9ancial innovation & fair competition1 or protect cu/om]s1 ! ,commission may exempt1 ei!r unconditionally or on /at$ t]ms or conditions or = /at$ p]iods1 & retroactively1 prospectively1 or bo?1 a regi/]$ digital asset ex*ange f ! requirem5ts ( ?is section1 if ! ,commission det]m9es t-- 7,a7 ! exemption-- 7i7 w be consi/5t ) ! public int]e/ & ! purposes ( ?is ,act2 & 7ii7 w n h a mat]ial adv]se effect on ! ability ( ! ,commission or ! regi/]$ digital asset ex*ange to dis*>ge duties "u ?is ,act2 or 7,b7 ! regi/]$ digital asset ex*ange is subject to comp>able1 compreh5sive regulation by ! appropriate gov]nm5t au?orities 9 ! home c\ntry ( ! regi/]$ digital asset ex*ange4 7#b7 ,process ,! ,commission may grant an exemption "u p>agraph 7#a7-- 7,a7 on ! initiative ( ! ,commission2 or 7,b7 aft] receiv+ an application = ! exemption by ! regi/]$ digital asset ex*ange4 7h7 ,jurisdiction ,not)/&+ any o!r provision ( law1 ! ,commission %all h exclusive jurisdiction ov] ! regulation & all o!r activities ( a regi/]$ digital asset ex*ange4 7i7 ,implem5tation ,! ,commission may prescribe rules to implem5t ?is section4 4 7b7 ,c]ta9 digital asset ex*ange functions n suffici5t ,to trigg] requirem5t ,to regi/] z futures commission m]*ant ,section #d;f7c7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #f;f7c77 is am5d$ by add+ at ! end ! foll[+3 7#ab7 ,cl>ification ( scope ( regi/ration requirem5t ,a regi/]$ digital asset ex*ange %all n be requir$ to regi/] z a futures commission m]*ant = any activity = :i* ! regi/]$ digital asset ex*ange is regulat$ "u section #e;i4 4 #dje4 ,violations ,section #i ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #ac7 is am5d$-- 7#a7 9 subsection 7a77#b71 by /rik+ subsection #d;c & ins]t+ section #d;c2 & 7#b7 9 subsection 7e7-- 7,a7 9 p>agraph 7#a71 by ins]t+ contracts = ! sale ( digital assets1 aft] options !reon12 & 7,b7 9 p>agraph 7#b71 by ins]t+ or contracts = ! sale ( digital assets aft] options !reon4 #djf4 ,m>ket reports ,section #af7;a7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #bj7;a77 is am5d$-- 7#a7 9 ! fir/ s5t5ce1 by /rik+ :i* are ! subject ( futures contracts1 & ins]t+ "u ! jurisdiction ( ! ,commission12 & 7#b7 9 ! second s5t5ce1 by /rik+ futures m>kets4 & ins]t+ m>kets "u ! jurisdiction ( ! ,commission44 #djg4 ,bankruptcy treatm5t ( digital assets 7a7 ,9 g5]al ,section #bj7;a7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #bd7;a77 is am5d$ 9 p>agraphs 7#a7 & 7#b7 by ins]t+ digital assets1 aft] securities1 ea* place x appe>s4 7b7 ,commodity brok] def9ition ,section #aja7f7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by ins]t+ regi/]$ digital asset ex*ange1 z def9$ 9 section #a;a ( ! ,commodity ,ex*ange ,act1 be=e =eign4 7c7 ,commodities contracts ,section #eef ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by ins]t+ a regi/]$ digital asset ex*ange1 z def9$ 9 section #a;a ( ! ,commodity ,ex*ange ,act1 be=e a contract4 7d7 ,contractual rights ,section #efa ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by ins]t+ regi/]$ digital asset ex*ange1 z def9$ 9 section #a;a ( ! ,commodity ,ex*ange ,act1 aft] designat$ "u ! ,commodity ,ex*ange ,act ea* place x appe>s4 7e7 ,def9itions ,section #gfa ( title #aa1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 p>agraph 7#d7-- 7,a7 9 subp>agraph 7,a71 by ins]t+ digital asset or a be=e commodity2 7,b7 9 subp>agraph 7,i71 by /rik+ or at ! end2 7,c7 9 subp>agraph 7,j71 by add+ or at ! end2 & 7,d7 by add+ at ! end ! foll[+3 7,k7 a contract = ! sale ( a digital asset by a regi/]$ digital asset ex*ange2 2 & 7#b7 9 p>agraph 7#aj7-- 7,a7 9 ! matt] prec$+ subp>agraph 7,a7-- 7i7 by ins]t+ a digital asset1 aft] a security12 & 7ii7 by ins]t+ digital asset1 aft] ca%1 security12 7,b7 9 subp>agraph 7,a7-- 7i7 9 clause 7vi71 by ins]t+ a digital asset1 aft] a security12 & 7ii7 9 clause 7vii7-- 7,i7 by ins]t+ or a digital asset be=e held z prop]ty2 7,,ii7 by ins]t+ or digital asset aft] su* security2 & 7,,iii7 by ins]t+ or digital asset aft] bas$ on a security2 & 7,c7 9 subp>agraph 7,b7-- 7i7 by /rik+ n includ+ prop]ty & ins]t+ 8n includ+-- 7i7 prop]ty 2 7ii7 9 clause 7i71 z s designat$1 by add+ & at ! end2 & 7iii7 by add+ at ! end ! foll[+3 7ii7 money1 assets1 or prop]ty ) respect to :i* any requirem5t "u subsection 7i7 ( section #d;d ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #f;d7 is waiv$ pursuant to p>agraph 7#c7 ( t subsection1 or any requirem5t "u subp>agraph 7,b7 ( p>agraph 7#d7 ( section #e;i7d7 ( t ,act is waiv$ pursuant to subp>agraph 7,e7 ( t p>agraph2 4 7f7 ,voidable transf]s ,section #gfd7;b77#a7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by ins]t+ 1 digital assets be=e 1 or o!r prop]ty4 7g7 ,treatm5t ( cu/om] prop]ty ,section #gff ( title #aa1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 subsection 7b77#a71 by /rik+ physical commodity und]ly+ & ins]t+ commodity und]ly+2 7#b7 9 subsection 7c71 by ins]t+ digital asset1 be=e or commodity contract ea* place ! t]m appe>s2 7#c7 9 subsection 7d71 by ins]t+ digital asset1 be=e or commodity contract ea* place ! t]m appe>s2 7#d7 9 subsection 7f7-- 7,a7 9 /rik+ & o!r prop]ty & ins]t+ digital assets1 & o!r prop]ty2 & 7,b7 by /rik+ or prop]ty & ins]t+ 1 digital assets1 or prop]ty2 7#e7 9 subsection 7g71 by /rik+ security or prop]ty & ins]t+ security1 digital asset1 or prop]ty2 & 7#f7 9 subsection 7h77#b71 by ins]t+ digital assets1 aft] cu/om] securities14 #djh4 ,id5tifi$ bank+ products ,section #bjf7;a7 ( ! ,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4 #gh;c note7 is am5d$-- 7#a7 9 p>agraph 7#e77;,b77ii71 by /rik+ or at ! end2 7#b7 9 p>agraph 7#f71 by /rik+ ! p]iod at ! end & ins]t+ 2 or2 & 7#c7 by add+ at ! end ! foll[+3 7#g7 a paym5t /ableco9 issu$ by a depository in/itution "u section #gbb;,a4 4 #dji4 ,f9ancial in/itutions def9ition ,section #ecab7;c77#a7 ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 7,b7 ,a regi/]$ digital asset ex*ange1 z def9$ 9 section #a;a ( ! ,commodity ,ex*ange ,act4 4 #daj4 ,(fsett+ ! co/s ( digital asset regulation ,! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq47 is am5d$ by add+ at ! end ! foll[+3 #bd4 ,(fsett+ ! co/s ( digital asset regulation 7a7 ,recov]y ( c]ta9 co/s ( annual appropriation 7#a7 ,9 g5]al ,effective beg9n+ ,octob] #a1 #bjbc1 ! ,commission may1 by rule1 collect fees-- 7,a7 to fund exp5ses relat+ to regulation ( digital asset ca% & spot m>kets2 & 7,b7 t are design$ to recov] ! co/s to ! ,f$]al ,gov]nm5t ( ! annual appropriation to ! ,commission by ,congress4 7#b7 ,regi/]$ entities ,fees "u p>agraph 7#a7 %all only be impos$-- 7,a7 on regi/]$ entities engag$ 9 ca% or spot digital asset activities2 & 7,b7 9 relation to ! regulation ( ^? activities "u ?is ,act4 7#c7 ,fee rates ,fees "u p>agraph 7#a7 %all-- 7,a7 be /rictly relat$ to ! co/ to ! ,commission ( ! regulation ( digital asset ca% & spot m>kets2 7,b7 be r$uc$ = newly regi/]$ entities ) less ?an #ajj1jjj1jjj 9 daily trad+ volume2 & 7,c7 7i7 m9imize negative impacts on m>ket liquidity2 & 7ii7 ma9ta9 ! effici5cy1 competitiv5ess1 & f9ancial integrity ( digital asset m>kets4 7#d7 ,collection ( fees ,! ,commission %all collect fees "u ?is subsection 9 su* mann] & )9 su* "t z may be specifi$ by ! ,commission by rule4 7b7 ,fee rate ord]s 7#a7 ,9 g5]al ,n lat] ?an #fj days aft] ! date on :i* a law provid+ a regul> appropriation to ! ,commission = a fiscal ye> is enact$1 ! ,commission %all adopt an ord] sett+ rates = fees to be collect$ "u subsection 7a7 = t fiscal ye>4 7#b7 ,publication ,! ,commission %all publi% 9 ! ,f$]al ,regi/] ! ord] adopt$ "u p>agraph 7#a71 includ+-- 7,a7 projections on :i* ! fees are bas$2 & 7,b7 an explanation ( ! me?od us$ = calculat+ applicable fee rates4 7c7 ,deposit ( fees 7#a7 ,(fsett+ collections ,fees collect$ "u subsection 7a7 = any fiscal ye>-- 7,a7 %all be deposit$ & cr$it$ z (fsett+ collections to ! acc\nt provid+ appropriations to ! ,commission2 & 7,b7 %all n be collect$ or available = obligation = any fiscal ye> except to ! ext5t provid$ 9 advance 9 appropriation ,acts4 7#b7 ,g5]al rev5ues prohibit$ ,no fees collect$ "u subsection 7a7 %all be deposit$ & cr$it$ z g5]al rev5ue ( ! ,treasury4 7d7 ,lapse ( appropriations ,if a regul> appropriation to ! ,commission has n be5 enact$ on ! fir/ day ( a fiscal ye>1 ! ,commission %all cont9ue to collect fees "u ?is section at ! rates 9 effect on ,septemb] #cj ( ! prec$+ fiscal ye>4 7e7 ,limitations 7#a7 ,lev]ag$1 m>g9$1 or f9anc$ transactions ,no?+ 9 ?is section au?orizes ! imposition ( fees on a regi/]$ entity relat+ to lev]ag$1 m>g9$1 or f9anc$ transactions "u ?is ,act1 includ+ ^? activities relat+ to digital assets4 7#b7 ,o!r appropriations ,not)/&+ any o!r provision ( law1 ! ,commission may use appropriations o!rwise made available by law to fund exp5ses relat+ to ! regulation ( digital asset ca% & spot m>kets4 7f7 ,ceil+ on ,fees ,unless o!rwise provid$ by law1 fees collect$ "u ?is section %all n exce$ #cj1jjj1jjj4 7g7 ,au?orization requir$ ,! au?ority "u ?is section to impose & collect fees %all only be 9 effect dur+ a p]iod t a legislative au?orization ( ! ,commission is 9 effect1 z o!rwise provid$ by law4 4 ,v ,responsible consum] protection #eja4 ,responsible consum] protection ,*apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z add$ by section #aja7;a7 ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 #ihjb4 ,consum] protection /&>ds = digital assets 7a7 ,9 g5]al ,a p]son or protocol t provides digital asset s]vices %all ensure t ! scope ( p]missible transactions t may be und]tak5 ) cu/om] digital assets is disclos$ cle>ly 9 a cu/om] agreem5t4 7b7 ,notice ,a p]son :o provides digital asset s]vices %all provide cle> notice to ea* cu/om]1 & require ackn[l$gm5t1 ( ! foll[+3 7#a7 ,prior to ! implem5tation ( any updates1 mat]ial s\rce code v]sion *anges relat+ to digital assets1 except 9 em]g5cies1 :i* may include security vuln]abilities4 7#b7 ,:e!r cu/om] digital assets are segregat$ f o!r cu/om] assets & ! mann] ( segregation4 7#c7 ,h[ ! assets ( ! cu/om] w\ld be treat$ 9 a bankruptcy or insolv5cy sc5>io & ! risks ( loss4 7#d7 ,! "t p]iod & mann] 9 :i* ! p]son is obligat$ to return ! digital asset ( ! cu/om] ^u ! reque/ ( ! cu/om]4 7#e7 ,applicable fees4 7#f7 ,! dispute resolution process ( ! p]son4 7c7 ,subsidi>y proce$s 7#a7 ,def9itions ,9 ?is subsection3 7,a7 ,subsidi>y proce$s ,! t]m subsidi>y proce$s includes =ks1 airdrops1 /ak+1 & o!r ga9s t accrue to a digital asset ?r\gh m>ket transactions1 use z a f9ancial asset1 or be+ held 9 cu/ody or safekeep+ by a p]son :o provides digital asset s]vices4 7,b7 ,t]ms ( s]vice ,! t]m agreem5t includes ! /&>d t]ms ( s]vice ( ! p]son :o provides digital asset s]vices4 7#b7 ,accrual to cu/om] ,except z o!rwise specifi$ by an agreem5t ) a cu/om]1 all ancill>y or subsidi>y proce$s relat+ to digital asset s]vices provid$ to a cu/om] %all accrue to ! b5efit ( ! cu/om] 9 accordance ) p>agraph 7#c74 7#c7 ,election ,a p]son :o provides digital asset s]vices may elect n to collect c]ta9 subsidi>y proce$s if ! election is disclos$ 9 an agreem5t ) ! cu/om]4 7#d7 ,)drawal ,a cu/om] may )draw digital assets 9 a me?od t p]mits ! collection ( ! subsidi>y proce$s4 7#e7 ,agreem5t ,a p]son :o provides digital asset s]vices %all ent] into an agreem5t ) a cu/om]1 if desir$ by ! cu/om]1 reg>d+ ! mann] 9 :i* to inve/ subsidi>y proce$s or o!r ga9s attributable to ! digital assets ( ! cu/om]4 7d7 ,l5d+ arrangem5ts ,a p]son :o provides digital asset s]vices %all ensure any l5d+ arrangem5ts relat+ to digital assets are-- 7#a7 cle>ly disclos$ to cu/om]s be=e any l5d+ s]vices take place2 7#b7 subject to ! affirmative cons5t ( ! cu/om]2 7#c7 fully en=ceable z a matt] ( comm]cial law2 7#d7 accompani$ by full disclosures ( applicable t]ms & risks1 yield1 & ! mann] 9 :i* ! yield is calculat$2 7#e7 accompani$ by appropriate disclosures relat+ to collat]al requirem5ts & policies1 includ+-- 7,a7 haircuts & ov]collat]alization requirem5ts2 7,b7 collat]al ! p]son accepts :5 call+ = additional collat]al f a cu/om]1 includ+ collat]al sub/itution2 7,c7 :e!r cu/om] collat]al is comm+l$ ) ! collat]al ( o!r cu/om]s or ( ! p]son2 & 7,d7 h[ cu/om] collat]al is inve/$1 & :e!r ! yield belongs to ! cu/om] or to ! p]son2 7#f7 accompani$ by disclosures ( m>k-to-m>ket & monitor+ arrangem5ts1 includ+-- 7,a7 ! frequ5cy ( m>k-to-m>ket monitor+ & h[ frequ5tly ! p]son w call = additional collat]al f a cu/om]2 7,b7 ! "t p]iod 9 :i* ! cu/om] mu/ supply additional collat]al to ! p]son aft] a collat]al call2 & 7,c7 :e!r ! p]son p]mits failures to deliv] su* collat]al1 & 9 ! ev5t ( a failure to deliv] ! p]iod ( "t 9 :i* ! cu/om] mu/ cure ! failure to deliv] be=e ! cu/om]'s position is clos$2 & 7#g7 compliant ) all applicable ,f$]al & ,/ate laws4 7e7 ,rehypo!cation 7#a7 ,def9ition ,9 ?is subsection1 ! t]m rehypo!cation means ! pl$g+ ( an asset z collat]al = a f9ancial transaction by a p]son aft] ! pl$g+ ( ! asset z collat]al by a cu/om] ( t p]son4 7#b7 ,rehypo!cation ,be=e rehypo!cat+ a digital asset1 a p]son :o provides digital asset s]vices to a cu/om] %all cle>ly disclose policies on rehypo!cation to cu/om]s1 includ+ a cle> def9ition ( rehypo!cation t is accessible to consum]s4 ,! p]son :o provides digital asset s]vices to a cu/om] %all obta9 affirmative cons5t & consid] ! foll[+ factors to appropriately mitigate risk relat+ to rehypo!cation3 7,a7 ,! liquidity & volatility ( a digital asset4 7,b7 ,pa/ failures to deliv] a p>ticul> digital asset4 7,c7 ,conc5tration risk4 7,d7 ,:e!r an issu] or l5d] ( la/ resort relat+ to a digital asset exi/s1 includ+ = virtual curr5cy ) a f9ite supply4 7,e7 ,! capital1 lev]age & m>ket position ( ! p]son4 7,f7 ,! legal obligations ( ! p]son to cu/om]s & o!r p]sons 9 ! m>ket :o provide digital asset s]vices4 4 #ejb4 ,s\rce code v]sion ( digital assets ,*apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #eja ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 #ihjc4 ,s\rce code v]sion ( digital assets 7a7 ,9 g5]al ,a cu/om] & a p]son :o provides digital asset s]vices %all1 at ! initiation ( a contractual relation%ip1 agree 9 writ+ reg>d+ ! s\rce code v]sion ! p]son w use = ea* digital asset & ! treatm5t ( ea* asset "u ! law1 includ+ securities & commodities laws & ! ,uni=m ,comm]cial ,code applicable to ! transaction4 7b7 ,det]m9ation ,a p]son :o provides digital asset s]vices-- 7#a7 may p]iodically det]m9e :e!r to implem5t a s\rce code v]sion t uses validation rules diff]5t ?an ^? ( ! s\rce code v]sion specifi$ 9 a cu/om] agreem5t1 includ+ 9 circum/ances :]e x is n possible to pr$ict 9 advance :e!r utilization ( ! diff]5t s\rce code v]sion w be 9 ! be/ int]e/s ( ! cu/om]2 7#b7 %all consid] ! nature ( propos$ *anges to s\rce code v]sions ) pot5tial effects result+ f ?ird-p>ty actors t may create diff]5t s\rce code v]sions result+ 9 new networks t c\ld create economic value = cu/om]s2 7#c7 %all n be requir$ to support digital assets & s\rce code v]sions t ! p]son has n ent]$ into an agreem5t ) cu/om]s to support2 & 7#d7 %all n caprici\sly r$ef9e a digital asset or ! correspond+ s\rce code or alt] cu/om] agreem5ts ) respect to ?is subsection4 7c7 ,/&>ds ,a p]son :o provides digital asset s]vices-- 7#a7 %all adopt & ma9ta9 /&>ds = *anges to digital asset s\rce code v]sions t use diff]+ validation rules ?an ^? ( ! s\rce code v]sion specifi$ 9 ! cu/om] agreem5t1 :i* %all include cu/om] notice & approval1 z appropriate bas$ on ! circum/ances2 & 7#b7 may specify diff]+ /&>ds bas$ on s\rce code *anges :i* occur z ! result ( em]g5cies1 includ+ security vuln]abilities4 4 #ejc4 ,settlem5t f9ality ,*apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #ejb ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 #ihjd4 ,settlem5t f9ality ,to promote legal c]ta9ty & cu/om] protection1 a p]son :o provides digital asset s]vices & a cu/om] %all agree on ! t]ms ( settlem5t f9ality = all transactions1 includ+ ! foll[+3 7#a7 ,! conditions "u :i* a digital asset may be deem$ fully transf]r$1 provid$ t ^! legal conditions may div]ge f op]ational conditions "u :i* digital assets are consid]$ transf]r$1 bas$ on ! di/ribut$ & probabili/ic nature ( digital assets4 7#b7 ,! exact mom5t ( transf] ( a digital asset4 7#c7 ,! dis*>ge ( any obligations ^u transf] ( a digital asset4 7#d7 ,con=mity to applicable provisions ( ! ,uni=m ,comm]cial ,code4 4 #ejd4 ,notice to cu/om]s2 en=cem5t ,*apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #ejc ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 #ihje4 ,notice to cu/om]s2 en=cem5t 7a7 ,9 g5]al ,9 provid+ disclosures & c>ry+ out o!r duties "u ?is *apt]1 a p]son :o provides digital asset s]vices 9 or affect+ int]/ate comm]ce %all h a duty to provide high] /&>ds ( cu/om] notice & ackn[l$gm5t if !re is likely to be a mat]ial impact on ! economic value ( ! digital asset ( a cu/om]4 7b7 ,en=cem5t ( /&>ds ,! /&>ds "u ?is *apt] %all be en=c$ 9 an appropriate mann]1 comm5surate ) o!r cu/om] protection /&>ds-- 7#a7 9 ! case ( a digital asset int]m$i>y1 by ! ,f$]al or ,/ate lic5s+1 regi/ration1 or *>t]+ au?ority ( ! int]m$i>y2 & 7#b7 9 ! case ( a depository in/itution or o!r f9ancial in/itution1 by ! appropriate ,/ate or ,f$]al bank+ sup]visor4 4 #eje4 ,"r to individual managem5t ( digital assets ,*apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #ejd ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 #ihjf4 ,"r to individual managem5t ( digital assets 7a7 ,9 g5]al ,except z o!rwise requir$ by law1 no p]son %all be requir$ to use an int]m$i>y = ! safekeep+ ( digital assets legally own$1 & possess$ or controll$1 by t p]son4 7b7 ,rule ( con/ruction ,?is section %all n be con/ru$ to-- 7#a7 p]mit a p]son to engage 9 m>ket activity = :i* au?orization is requir$ "u ,f$]al or ,/ate law2 or 7#b7 re/rict a p]son f freely ent]+ into an agreem5t = digital asset s]vices ) a ?ird p>ty4 4 #ejf4 ,te*nical & con=m+ am5dm5ts ,! table ( sections ( *apt] #ih1 z add$ by section #aja7;a7 ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 #ihjb4 ,consum] protection /&>ds = digital assets4 #ihjc4 ,s\rce code v]sion ( digital assets4 #ihjd4 ,settlem5t f9ality4 #ihje4 ,notice to cu/om]s2 en=cem5t4 #ihjf4 ,"r to individual managem5t ( digital assets4 4 ,,vi ,responsible paym5ts innovation #fja4 ,issuance ( paym5t /ableco9s ,subtitle ,c ( title ,,vii ( ! ,gramm-,lea*-,bliley ,act 7,public ,law #ajf-ajb2 #aac ,/at4 #adgj7 is am5d$ by add+ at ! end ! foll[+3 #gbb;,a4 ,issuance ( paym5t /ableco9s 7a7 ,9 g5]al ,a depository in/itution may issue1 r$eem1 & conduct all incid5tal activities relat+ to paym5t /ableco9s 9 accordance ) ?is section4 7b7 ,requir$ paym5t /ableco9 assets ,a depository in/itution %all ma9ta9 high-quality liquid assets "u ?is section equal to n less ?an #ajj p]c5t ( ! face am\nt ( ! liabilities ( ! in/itution on paym5t /ableco9s issu$ by ! in/itution4 ,9 ! case ( an insur$ depository in/itution describ$ 9 subsection 7m77#a77;,a7 t engages 9 on-balance %eet l5d+ activities1 assets "u ?is subsection %all equal n less ?an #ajj p]c5t ( ! face am\nt ( ! liabilities ( ! in/itution on paym5t /ableco9s issu$ by ! in/itution1 ) ! assets held 9 balances at a ,f$]al ,res]ve bank 7:i* may include a segregat$ balance acc\nt71 or1 9 ! case ( =eign )drawable res]ves1 at a =eign c5tral bank1 9 a special1 cu/odial1 or tru/ acc\nt1 o!r (f-balance %eet acc\nt1 or 9 ano!r equival5t mann] t ensures ! segregation ( ! assets 9 ! ev5t ( receiv]%ip4 ,an insur$ depository in/itution may segregate ! issuance & managem5t ( paym5t /ableco9s into a sep>ate depository in/itution affiliate "u ! same hold+ company /ructure4 ,eligible high-quality liquid assets "u ?is section %all be compris$ ( ! foll[+3 7#a7 ,unit$ ,/ates co9s & curr5cy & any o!r in/rum5t t is legal t5d]1 z def9$ 9 section #eajc ( title #ca1 ,unit$ ,/ates ,code4 7#b7 ,dem& deposits at a depository in/itution1 except t deposits 9 an insur$ depository in/itution %all n exce$ ! limit ( deposit or %>e insurance available = t acc\nt1 :i* may include pass ?r\gh insurance1 or %all be ma9ta9$ 9 a special1 cu/odial1 or tru/ acc\nt or o!r (f-balance %eet acc\nt held by ! insur$ depository in/itution4 7#c7 ,balances held at a ,f$]al ,res]ve bank1 :i* may be held 9 a ma/] acc\nt or segregat$ balance acc\nt4 7#d7 ,=eign )drawable res]ves1 z def9$ 9 section #bdi4c ( title #ab1 ,code ( ,f$]al ,regulations1 consi/5t ) any =eign unit ( acc\nt 9 :i* ! paym5t /ableco9 is d5om9at$ or pegg$4 7#e7 ,a security t is issu$ by1 or unconditionally gu>ante$ z to ! timely paym5t ( pr9cipal & int]e/ by1 ! ,dep>tm5t ( ! ,treasury1 ) an orig9al maturity ( #a ye> or less4 7#f7 ,a res]ve repur*ase agreem5t relat+ to a security describ$ 9 p>agraph 7#e74 7#g7 ,any o!r high-quality1 liquid asset det]m9$ to be consi/5t ) safe & s\nd bank+ practices1 z det]m9$ by ! appropriate ,f$]al bank+ ag5cy or ,/ate bank sup]visor4 7c7 ,disclosures ,n lat] ?an #aj bus9ess days aft] ! end ( ea* mon?1 a depository in/itution %all disclose1 9 a publicly accessible mann]1 a summ>y description ( ! assets back+ ! paym5t /ableco91 ! value ( ! assets1 & ! numb] ( out/&+ paym5t /ableco9s1 z ( ! la/ day ( ! mon?4 ,su* explanation %all be fil$ ) ! appropriate ,f$]al bank+ ag5cy or ,/ate bank sup]visor "u p5alty ( p]jury by ! *ief f9ancial (fic] ( ! in/itution4 ,! depository in/itution %all also report on ! summ>y description any in/ances 9 :i* ! in/itution fail$ to comply ) any requirem5t ( subsection 7b74 ,z applicable1 ! appropriate ,f$]al bank+ ag5cy or ,/ate bank sup]visor %all1 z "p ( a regul> exam9ation ( ! depository in/itution1 at ! frequ5cy o!rwise requir$ by law1 v]ify ! composition ( ! assets & ! accuracy ( ! summ>y descriptions made "u ?is subsection & reports "u subsection 7d74 7d7 ,call report ,z applicable1 ! appropriate ,f$]al bank+ ag5cy or ,/ate bank sup]visor %all require a depository in/itution t issues a paym5t /ableco9 to report1 9 detail1 on ! composition ( ! assets 9 ea* p]iodic report ( condition1 or 9 an alt]native =mat approv$ by ! ,f$]al ,f9ancial ,in/itutions ,exam9ation ,c\ncil1 at ! frequ5cy o!rwise requir$ by law4 7e7 ,p]mission ,a depository in/itution %all1 z applicable1 obta9 p]mission f ! appropriate ,f$]al bank+ ag5cy or ,/ate bank sup]visor1 ) an application submitt$ n less ?an #f mon?s be=e int5d$ issuance ( ! paym5t /ableco91 b :i* may be submitt$ z "p ( a *>t] application4 ,z "p ( an application "u ?is section1 a depository in/itution %all develop a tailor$ recov]y & resolution plan1 consi/5t ) ! /&>ds adopt$ "u subsection 7k77#a77;,f71 t w\ld p]mit ! ord]ly resumption ( a safe & s\nd op]ation or ! ord]ly w9d-d[n ( op]ations 9 ! ev5t ( di/ress1 includ+ ! r$emption ( all out/&+ paym5t /ableco9s4 ,! application %all also conta9 a draft cu/om] agreem5t1 fl[ ( funds explanation1 a robu/ in=mation te*nology plan & op]ational design ( ! paym5t /ableco94 ,z applicable1 ! appropriate ,f$]al bank+ ag5cy or ,/ate bank sup]visor %all r5d] a decision on ! application )9 #d mon?s ( ! date ( fil+1 & %all approve ! application unless-- 7#a7 ! paym5t /ableco9 activities are n likely to be able to op]ate 9 a safe & s\nd mann]2 7#b7 ! depository in/itution does n h ! requir$ res\rces & exp]tise to manage ! op]ation ( ! paym5t /ableco91 comm5surate ) ! size & scale ( project$ op]ations2 or 7#c7 ! depository in/itution does n h requir$ policies & proc$ures relat+ to mat]ial areas ( ! op]ation ( ! paym5t /ableco9 activities4 7f7 ,r$emption ( paym5t /ableco9s ,^u ! dem& ( a cu/om]1 a depository in/itution %all r$eem an out/&+ paym5t /ableco9 at p> 9 ! co9s1 curr5cy1 or o!r in/rum5ts t are legal t5d]1 z def9$ 9 section #eajc ( title #ca1 ,unit$ ,/ates ,code1 or ! simil> laws ( ! jurisdiction ( ! unit ( acc\nt 9 :i* ! paym5t /ableco9 is d5om9at$ or to :i* ! value ( ! paym5t /ableco9 is pegg$4 ,a depository in/itution may r$eem a paym5t /ableco9 issu$ by ano!r depository in/itution at p>1 ^u dem&4 ,! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 ?r\gh ! ,f$]al ,res]ve banks1 %all provide = ! cle>+ & settlem5t ( paym5t /ableco9 liabilities among depository in/itutions "u ?is section & %all ensure competitive equality 9 all cle>+1 settlem5t & relat$ s]vices4 ,a depository in/itution %all also assess its ability to fulfill l>ge r$emptions )\t plac+ d[nw>d pressure on ! m>ket value ( ! paym5t /ableco94 7g7 ,collat]al availability 9 ! capital m>kets ,! appropriate ,f$]al bank+ ag5cies1 9 consultation ) ,/ate bank sup]visors1 ! ,securities & ,ex*ange ,commission1 & ,commodity ,futures ,trad+ ,commission1 %all monitor use ( ! high-quality liquid assets au?oriz$ "u subsection 7b7 & ! impact on collat]al availability & ! effici5t function+ ( ! capital m>kets4 7h7 ,receiv]%ip priority ,9 ! ev5t ( ! receiv]%ip ( a depository in/itution t has issu$ a paym5t /ableco9 "u ?is section1 a p]son t has a valid claim on a paym5t /ableco9 issu$ by t in/itution %all h priority ov] all o!r claims on ! in/itution ) respect to any requir$ paym5t /ableco9 assets1 includ+ claims ) respect to insur$ deposits1 o!r ?an adm9i/rative co/s incurr$ by ! appropriate ,f$]al bank+ ag5cy or ,/ate bank sup]visor1 z applicable1 relat+ to ! receiv]%ip ( ! in/itution1 if applicable4 ,consi/5t ) subsection 7f71 a depository in/itution t r$eems a paym5t /ableco9 issu$ by a depository in/itution 9 receiv]%ip %all be consid]$ to h a valid claim1 ) correspond+ priority "u ?is subsection1 on a paym5t /ableco9 issu$ by ! in/itution 9 receiv]%ip4 7i7 ,incid5tal activities ,a depository in/itution may conduct all incid5tal activities relat+ to ! issuance & r$emption ( paym5t /ableco9s1 :i* %all include ! foll[+3 7#a7 ,managem5t ( requir$ paym5t /ableco9 assets 9 accordance ) subsection 7b74 7#b7 ,mak+ a m>ket 9 paym5t /ableco9s4 7#c7 ,cu/odial s]vices4 7#d7 ,settlem5t & cle>+4 7#e7 ,po/-trade s]vices4 7#f7 ,all o!r activities consi/5t ) a safe & s\nd op]ation1 z det]m9$ by ! appropriate ,f$]al bank+ ag5cy or ,/ate bank sup]visor4 7j7 ,applicability ( ,gramm-,lea*-,bliley data privacy provisions ,title ,v ( ! ,gramm-,lea*-,bliley ,act 7#ab ,u4,s4,c4 #fhja et seq47 %all apply to ! paym5t /ableco9 activities ( a depository in/itution "u ?is section4 7k7 ,rules 7#a7 ,9 g5]al ,! appropriate ,f$]al bank+ ag5cies1 9 consultation ) ,/ate bank sup]visors1 %all adopt rules to implem5t ?is section1 includ+-- 7,a7 capital treatm5t = depository in/itutions describ$ 9 subsection 7m77#a7 9 accordance ) p>agraph 7#b72 7,b7 liquidity1 lev]age1 & int]e/ rate risk2 7,c7 ?ird-p>ty s]vice provid] activities-- 7i7 includ+ cu/odial wallet provid]s2 & 7ii7 n includ+ lic5s+ or capital requirem5ts = ?ird-p>ty s]vice provid]s2 7,d7 managem5t practices ) respect to requir$ paym5t /ableco9 assets2 7,e7 appropriate op]ational1 compliance1 & in=mation te*nology risk managem5t2 7,f7 tailor$ recov]y & resolution /&>ds relat+ to paym5t /ableco9s2 & 7,g7 any o!r mat]ial topic4 7#b7 ,significant diff]5ces ,9 accordance ) section #eafi7;c77#c77;,a7 ( ! ,revis$ ,/atutes1 9 det]m9+ capital & lev]age requirem5ts applicable to a depository in/itution t has no mat]ial assets o!r ?an requir$ paym5t /ableco9 assets "u ?is section-- 7,a7 ! depository in/itution %all n be subject to section #aga ( ! ,f9ancial ,/ability ,act ( #bjaj 7#ab ,u4,s4,c4 #ecga72 & 7,b7 ! appropriate ,f$]al bank+ ag5cies %all take into acc\nt ! significant diff]5ces betwe5 ! risks ( ! assets ( ! in/itution & ^? ( depository in/itutions ) assets t consi/ prim>ily ( comm]cial or consum] loans4 7l7 ,non-,depository in/itution paym5t /ableco9 issu]s ,no?+ 9 ?is section %all be con/ru$ to prohibit an entity op]at+ "u a ,/ate or ,f$]al *>t] or lic5se t is n a depository in/itution f issu+ & r$eem+ a paym5t /ableco9 & conduct+ all activities relat$ to ! managem5t ( su* paym5t /ableco9 consi/5t ) a safe & s\nd op]ation1 z det]m9$ by ! appropriate regulator ( ! entity4 ,! entity %all-- 7#a7 be subject to ! requirem5ts ( subsections 7b7 & 7c72 & 7#b7 r$eem an out/&+ paym5t /ableco9 at p> 9 ! co9s1 curr5cy1 or o!r in/rum5ts t are legal t5d]1 z def9$ 9 section #eajc1 or ! simil> laws ( ! jurisdiction ( ! unit ( acc\nt 9 :i* ! paym5t /ableco9 is d5om9at$ or to :i* ! value ( ! paym5t /ableco9 is pegg$4 7m7 ,def9itions ,9 ?is section3 7#a7 ,depository in/itution ,! t]m depository in/itution has ! mean+ giv5 ! t]m 9 section #ai7;b77#a7 ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #dfa7;b77#a77 & includes-- 7,a7 an insur$ depository in/itution2 or 7,b7 a depository in/itution op]at+ "u subsection 7c7 ( section #eafi ( ! ,revis$ ,/atutes 7#ab ,u4,s4,c4 #bg71 or a sub/antially simil> ,/ate law1 :i* is exclusively engag$ 9 issu+ paym5t /ableco9s1 provid+ safekeep+1 tru/ or cu/odial s]vices1 or activities incid5tal to ! =ego+4 7#b7 ,paym5t /ableco9 ,! t]m paym5t /ableco9 has ! mean+ giv5 ! t]m 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code4 7#c7 ,segregat$ balance acc\nt ,! t]m segregat$ balance acc\nt includes an acc\nt ( a depository in/itution ) a ,f$]al ,res]ve bank or a =eign c5tral bank to :i* only requir$ paym5t /ableco9 assets are cr$it$4 4 #fjb4 ,sanctions compliance responsibilities ( paym5t /ableco9 issu]s ,n lat] ?an #abj days aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all adopt f9al guidance cl>ify+ ! sanctions compliance responsibilities & liability ( an issu] ( a paym5t /ableco9 ) respect to d[n/ream transactions relat+ to ! /ableco9 t take place aft] ! /ableco9 is fir/ provid$ to a cu/om] ( ! issu]4 #fjc4 ,use ( ! (ficial digital curr5cy ( ! ,p's ,republic ( ,*9a on ,gov]nm5t devices 7a7 ,def9itions ,9 ?is section-- 7#a7 ! t]m digital yuan means ! (ficial c5tral bank digital curr5cy ( ! ,p's ,republic ( ,*9a2 7#b7 ! t]m executive ag5cy has ! mean+ giv5 t t]m 9 section #acc ( title #da1 ,unit$ ,/ates ,code2 & 7#c7 ! t]m in=mation te*nology has ! mean+ giv5 t t]m 9 section #aaaja ( title #dj1 ,unit$ ,/ates ,code4 7b7 ,use ( digital yuan ,n lat] ?an #fj days aft] ! date ( enactm5t ( ?is ,act1 ! ,director ( ! ,(fice ( ,managem5t & ,budget1 9 consultation ) ! ,adm9i/rator ( ,g5]al ,s]vices1 ! ,director ( ! ,cyb]security & ,infra/ructure ,security ,ag5cy1 ! ,director ( ,national ,intellig5ce1 & ! ,secret>y ( ,def5se1 & consi/5t ) ! in=mation security requirem5ts "u sub*apt] ,,ii ( *apt] #ce ( title #dd1 ,unit$ ,/ates ,code1 %all develop /&>ds & guidel9es = executive ag5cies :i* require adequate security measures = use ( ! digital yuan on ,gov]nm5t in=mation te*nology devices4 #fjd4 ,c]tificate ( au?ority to comm5ce bank+ ,section #eafi ( ! ,revis$ ,/atutes 7#ab ,u4,s4,c4 #bg7 is am5d$-- 7#a7 9 subsection 7a71 9 ! ?ird s5t5ce1 by /rik+ to ^? ( a tru/ company & activities relat$ !reto4 & ins]t+ ! foll[+3 to-- 7#a7 ^? ( a tru/ company & fiduci>y activities relat$ !reto2 or 7#b7 ^? ( a depository in/itution requir$ to ma9ta9 assets valu$ at n less ?an #ajj p]c5t ( ! deposits ( ! in/itution1 = ! purposes ( issu+ a paym5t /ableco9 7z def9$ 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code7 & activities relat$ !reto consi/5t ) subsection 7c7 ( ?is section & )\t ! requirem5t to ma9ta9 deposit insurance "u ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaa et seq474 2 & 7#b7 by add+ at ! end ! foll[+3 7c7 7#a7 ,not)/&+ any o!r provision ( law1 a ,national ,bank ,association describ$ 9 subsection 7a7 may n engage 9 maturity trans=mation or facilitate consum] l5d+ ?r\gh ?ird p>ties4 7#b7 ,re/rictions on affiliate transactions applicable = insur$ depository in/itutions %all apply to su* depository in/itutions4 7#c7 ,! ,comptroll] ( ! ,curr5cy1 9 close consultation ) ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em & ,/ate bank sup]visors1 %all develop ! foll[+3 7,a7 ,a simplifi$ capital framework bas$ on ! foll[+3 7i7 ,paym5t sy/em risk4 7ii7 ,! great] (-- 7,i7 all project$ co/s ( receiv]%ip2 or 7,,ii7 #c ye>s ( project$ op]at+ exp5ses4 7,b7 ,appropriate /&>ds = ! depository in/itution to develop a community contribution plan1 :i* may include consum] education1 f9ancial lit]acy1 *>itable donations1 volunte]ism1 job tra9+ & int]n%ips or simil> involvem5t4 7,c7 ,a tailor$ recov]y & resolution plan t w\ld p]mit ! ord]ly resumption ( a safe & s\nd op]ation or ! ord]ly w9d-d[n ( op]ations relat+ to a paym5t /ableco9 9 ! ev5t ( di/ress4 7,d7 ,tailor$ hold+ company sup]vision1 z specifi$ by section #ae ( ! ,bank ,hold+ ,company ,act ( #aief4 7#d7 ,9 design+ ! simplifi$ capital framework requir$ by p>agraph 7#c77;,a71 ! ,comptroll] ( ! ,curr5cy-- 7,a7 %all n subject depository in/itutions to ! /&>ds ( section #aga ( ! ,f9ancial ,/ability ,act ( #bjaj 7#ab ,u4,s4,c4 #ecga72 & 7,b7 %all take into acc\nt ! significant diff]5ces betwe5 ! risks ( ! assets ( ! in/itution & ^? ( depository in/itutions ) assets t consi/ prim>ily ( comm]cial or consum] loans4 7d7 ,! ,comptroll] ( ! ,curr5cy may promulgate rules to c>ry out ?is section4 4 #fje4 ,hold+ company sup]vision ( cov]$ depository in/itutions ,! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahda et seq47 is am5d$-- 7#a7 9 section #b7;c7 7#ab ,u4,s4,c4 #ahda7;c771 by /rik+ p>agraph 7#b7 & by ins]t+ ! foll[+3 7#b7 ,exceptions ,! t]m bank does n include a cov]$ depository in/itution subject to tailor$ hold+ company sup]vision "u section #ae4 2 & 7#b7 by add+ at ! end ! foll[+3 #ae4 ,tailor$ hold+ company sup]vision = cov]$ depository in/itutions 7a7 ,def9itions ,9 ?is section3 7#a7 ,appropriate bank+ sup]visor ,! t]m appropriate bank+ sup]visor means ! ,comptroll] ( ! ,curr5cy1 a ,/ate bank sup]visor1 9 ! case ( a ,/ate memb] bank1 ! ,bo>d1 or 9 ! case ( an insur$ bank1 ! ,f$]al ,deposit ,insurance ,corporation1 z applicable4 7#b7 ,controll+ int]e/ ,! t]m controll+ int]e/ means a circum/ance :5 a p]son1 directly or indirectly1 or act+ ?r\gh or 9 conc]t ) #a or m p]sons-- 7,a7 owns1 controls1 or has ! p[] to vote #be p]c5t or m ( any class ( vot+ securities ( a cov]$ depository in/itution2 7,b7 controls 9 any mann] ! election ( a majority ( ! directors ( ! cov]$ depository in/itution2 or 7,c7 has ! p[] to ex]cise a controll+ influ5ce ov] ! managem5t or policies ( ! cov]$ depository in/itution4 7#c7 ,cov]$ depository in/itution ,! t]m cov]$ depository in/itution means a depository in/itution op]at+ "u subsection 7c7 ( section #eafi ( ! ,revis$ ,/atutes 7#ab ,u4,s4,c4 #bg71 or a sub/antially simil> ,/ate law1 o!r ?an a bank1 z def9$ 9 section #b ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahda71 or an insur$ depository in/itution1 z def9$ 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac71 :i* is exclusively engag$ 9 issu+ paym5t /ableco9s1 provid+ safekeep+1 tru/ or cu/odial s]vices1 or activities incid5tal to ! =ego+4 7b7 ,controll+ int]e/ ,a p]son ) a controll+ int]e/ 9 a cov]$ depository in/itution %all-- 7#a7 submit annual audit$ f9ancial /atem5ts & o!r in=mation z o!rwise reasonably requir$ by ! appropriate bank+ sup]visor2 & 7#b7 provide a description ( all affiliat$ or p>5t entities & _! relation%ips ) ! in/itution1 includ+ annual updates4 7c7 ,tax allocation agreem5t ,! appropriate bank+ sup]visor may require a legal entity ) a controll+ int]e/ 9 a cov]$ depository in/itution to execute a tax allocation agreem5t ) ! in/itution t-- 7#a7 expressly /ates t an ag5cy relation%ip exi/s betwe5 ! p]son & ! in/itution ) respect to tax assets g5]at$ by ! in/itution1 & t ! assets are held 9 tru/ by ! p]son = ! b5efit ( ! in/itution & w be promptly remitt$ to ! in/itution2 & 7#b7 may provide t ! am\nt & tim+ ( any paym5ts or refunds to ! in/itution by ! p]son %\ld be no less favorable ?an if ! in/itution 7 a sep>ate taxpay]4 7d7 ,prohibition on controll+ int]e/s ,a p]son t is a comm]cial firm1 z def9$ 9 section #fjb ( ! ,bank & ,sav+s ,association ,hold+ ,company & ,depository ,in/itution ,regulatory ,improvem5ts ,act ( #bjaj 7#ab ,u4,s4,c4 #ahae note71 may n obta9 a controll+ int]e/ 9 a cov]$ depository in/itution4 7e7 ,public int]e/ ,if ! appropriate bank+ sup]visor f9ds t x is 9 ! public int]e/ & has reasonable cause to believe x is necess>y to protect ! cu/om]s ( a cov]$ depository in/itution1 ! sup]visor may-- 7#a7 conduct an exam9ation ( a legal entity ) a controll+ int]e/ 9 a cov]$ depository in/itution or o!rwise require in=mation f ! p]son2 & 7#b7 require a p]son ) a controll+ int]e/ 9 a cov]$ depository in/itution to dive/ or sev] _! relation%ip ) ! in/itution1 if necess>y to ma9ta9 safety & s\ndness4 4 #fjf4 ,implem5tation rules to pres]ve adequate competition 9 paym5t /ableco9s 7a7 ,9 g5]al ,! application ( a non-depository tru/ company or ! hold] ( a ,/ate lic5se t only p]sons engag$ 9 digital asset activities may obta91 :i* 0 *>t]$ or issu$ "u ! laws ( a ,/ate or ! ,national ,bank ,act be=e ! date ( enactm5t ( ?is ,act1 to receive a *>t] z a depository in/itution & to op]ate "u subsection 7c7 ( section #eafi ( ! ,revis$ ,/atutes 7#ab ,u4,s4,c4 #bg71 z add$ by section #fjd ( ?is ,act1 %all be decid$ ^u by ! ,comptroll] ( ! ,curr5cy be=e an application = a *>t] to op]ate "u t section f ano!r entity t is fil$ on or aft] ! date ( enactm5t ( ?is ,act4 7b7 ,application ,! application ( a cov]$ depository in/itution1 z def9$ 9 section #ae7;a7 ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahec7;a771 *>t]$ be=e ! date ( enactm5t ( ?is ,act to become a ,/ate memb] bank 9 ! ,f$]al ,res]ve ,sy/em or = access to ,f$]al ,res]ve s]vices "u section #aa;,a ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #bdh;a7 %all be decid$ ^u by ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 or a ,f$]al ,res]ve bank1 z applicable1 be=e any application to become a ,/ate memb] bank or = ,f$]al ,res]ve s]vices f any o!r entity :i* seeks to op]ate z a cov]$ depository in/itution & :i* is fil$ on or aft] ! date ( enactm5t ( ?is ,act4 7c7 ,decision ,! applications describ$ 9 subsections 7a7 & 7b7 ( ?is section %all be decid$ ^u by ! appropriate ,f$]al bank+ ag5cy 7z def9$ 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac77 or ,f$]al ,res]ve bank1 z applicable1 be=e an insur$ depository in/itution 9 op]ation be=e ! enactm5t date ( ?is ,act may issue a paym5t /ableco9 9 accordance ) section #gbb;,a ( ! ,gramm-,lea*-,bliley ,act1 z add$ by section #fja ( ?is ,act4 #fjg4 ,f9ancial ,crimes ,en=cem5t ,network ,innovation ,laboratory ,section #caj ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 7m7 ,innovation laboratory 7#a7 ,9 g5]al ,!re is e/abli%$ )9 ! ,f9ancial ,crimes ,en=cem5t ,network an ,innovation ,laboratory to promote regulatory dialogue1 data %>+ betwe5 ! ,f9ancial ,crimes ,en=cem5t ,network & f9ancial companies1 & an assessm5t ( pot5tial *anges 9 law1 rules1 or policies to facilitate ! appropriate sup]vision ( f9ancial te*nology & ! laws "u ! jurisdiction ( ! ag5cy4 7#b7 ,*ief innovation (fic] ,! innovation (fic] appo9t$ "u section #fbjh ( ! ,anti-,money ,laund]+ ,act ( #bjbj 7#ca ,u4,s4,c4 #ecaa note7 by ! ,director ( ! ,f9ancial ,crimes ,en=cem5t ,network %all manage ! ,innovation ,laboratory4 7#c7 ,duties ,! ,innovation ,laboratory1 z appropriate1 %all /udy *anges 9 f9ancial te*nology & make recomm5dations to ,congress1 ! ,secret>y1 & ! ,director = appropriate *anges 9 laws1 rules1 or policies t c m effectively facilitate ! sup]vision ( f9ancial te*nology ) respect to ! laws "u ! jurisdiction ( ! ,f9ancial ,crimes ,en=cem5t ,network1 includ+ digital assets1 di/ribut$ l$g] te*nology & dec5traliz$ f9ance4 7#d7 ,pilot projects ,! ,innovation ,laboratory1 z appropriate1 %all conduct pilot projects ) f9ancial companies to m effectively facilitate ! sup]vision ( f9ancial te*nology1 consi/5t ) applicable law4 4 ,,vii ,responsible bank+ innovation #gja4 ,/udy on use ( di/ribut$ l$g] te*nology = r$uction ( risk 9 depository in/itutions ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is ,act1 ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em %all complete a /udy & submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives a report reg>d+ ! mann] 9 :i* di/ribut$ l$g] te*nology may r$uce risk = depository in/itutions1 z def9$ 9 section #ai7;b77#a7 ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #dfa7;b77#a771 includ+ settlem5t risk1 op]ational risk & capital requirem5ts4 #gjb4 ,eligibility = ,f$]al ,res]ve s]vices to depository in/itutions 7a7 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,f9al settlem5t ( transactions 9 c5tral bank money r$uces risk 9 ! f9ancial sy/em1 includ+ ?r\gh ! r$uction ( c\nt]p>ty exposure4 7#b7 ,digital assets settle ) f9ality 9 seconds or m9utes1 :]eas traditional f9ancial transactions may take days to settle4 7#c7 ,?is mismat* 9 ! settlem5t w9d[ ( digital assets & traditional f9ancial assets creates risk 9 ! economy t may be r$uc$ ?r\gh ! ability ( depository in/itutions to simultane\sly conduct digital asset transactions & settle1 ) f9ality1 ! ,unit$ ,/ates doll> compon5t ( ^! transactions4 7#d7 ,! ,f$]al ,res]ve ,act specifies t a depository in/itution1 z def9$ 9 section #ai7;b77#a7 ( t ,act 7#ab ,u4,s4,c4 #dfa7;b77#a771 ^u receiv+ a *>t] f ! ,(fice ( ! ,comptroll] ( ! ,curr5cy1 ,national ,cr$it ,union ,adm9i/ration or ,/ate bank sup]visor1 is requir$ to be made available s]vices f ,f$]al ,res]ve banks "u section #aa;,a ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #bdh;a71 includ+ curr5cy & co9 s]vices1 wire transf] s]vices1 automat$ cle>+h\se s]vices & settlem5t s]vices4 7#e7 ,num]\s ,f$]al c\rts h f\nd t ! provision ( s]vices to depository in/itutions "u section #aa;,a ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #bdh;a7 is a m9i/]ial duty impos$ by ,congress ) respect to all depository in/itutions4 7#f7 ,! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em has long int]pret$ ! ,f$]al ,res]ve ,act to mean t ! ,f$]al ,res]ve banks mu/ provide s]vices to all depository in/itutions1 not+ t x has a duty to ensure ! provision ( paym5t s]vices to all depository in/itutions on an equitable basis1 & to d s 9 an atmosph]e ( competitive fairness4 7#g7 ,! ,f$]al ,res]ve banks h1 on occasion1 provid$ s]vices to non-depository1 non-insur$ in/itutions )\t appropriate /atutory au?ority4 7#h7 ,c]ta9 novel legal positions t conflict ) or fru/rate ^! prec$5ts are n 9 ! be/ traditions ( ! ,f$]al ,res]ve ,act1 our dual bank+ sy/em1 & ! imp]atives ( ,congress4 7#i7 ,! /atutory indep5d5ce ( ! ,bo>d ( ,gov]nors & ! ,f$]al ,res]ve banks "u ! ,con/itution ( ! ,unit$ ,/ates is prop]ly root$ 9 absolute fidelity to ! laws enact$ by ,congress4 7#aj7 ,x is appropriate = ,congress to reaffirm its exi/+ /atutory int5t to ensure t all depository in/itutions may access s]vices "u ! ,f$]al ,res]ve ,act on an equitable basis1 & to d s 9 an atmosph]e ( competitive fairness4 7b7 ,pric+ ( s]vices ,section #aa;,a ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #bdh;a7 is am5d$ by add+ at ! end ! foll[+3 7f7 ,a ,f$]al ,res]ve bank %all provide a segregat$ balance acc\nt to a depository in/itution ^u ! reque/ ( any in/itution t receives s]vices "u ?is section4 4 7c7 ,deposits2 ex*ange & collection2 memb] & nonmemb] banks or o!r depository in/itutions2 *>ges ,section #ac ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #cdb7 is am5d$ to read z foll[s3 ,any ,f$]al ,res]ve bank %all receive f any ( its memb] banks or o!r depository in/itutions1 & f ! ,unit$ ,/ates1 deposits ( curr5t funds 9 lawful money1 national-bank notes1 ,f$]al res]ve notes1 or *ecks1 & drafts1 payable ^u pres5tation or o!r items1 & also1 = collection1 matur+ notes & bills2 or1 solely = purposes ( ex*ange or ( collection1 %all receive f o!r ,f$]al ,res]ve banks deposits ( curr5t funds 9 lawful money1 national-bank notes1 or *ecks ^u o!r ,f$]al ,res]ve banks1 & *ecks & drafts1 payable ^u pres5tation )9 its di/rict or o!r items1 & matur+ notes & bills payable )9 its di/rict2 or1 solely = ! purposes ( ex*ange or ( collection1 %all receive f any nonmemb] bank or tru/ company or o!r depository in/itution deposits ( curr5t funds 9 lawful money1 national-bank notes1 ,f$]al res]ve notes1 *ecks & drafts payable ^u pres5tation or o!r items1 or matur+ notes & bills3 ,provid$1 ,su* nonmemb] bank or tru/ company or o!r depository in/itutions ma9ta9s ) ! ,f$]al ,res]ve bank ( its di/rict a balance 9 su* am\nt z ! ,bo>d det]m9es tak+ into acc\nt items 9 transit1 s]vices provid$ by ! ,f$]al ,res]ve bank1 & o!r factors z ! ,bo>d may deem appropriate3 ,provid$ fur!r1 ,t no?+ 9 ?is or any o!r section ( ?is ,act %all be con/ru$ z prohibit+ a memb] or nonmemb] bank or o!r depository in/itution f mak+ reasonable *>ges1 to be det]m9$ & regulat$ by ! ,bo>d ( ,gov]nors1 b 9 no case to exce$ #aj c5ts p] #ajj or fraction !re(1 bas$ on ! total ( *ecks & drafts pres5t$ at any "o "t1 = collection or paym5t ( *ecks & drafts & remission !re= by ex*ange or o!rwise2 b no su* *>ges %all be made aga9/ ! ,f$]al ,res]ve banks4 4 #gjc4 ,r\t+ transit numb] issuance ,n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act1 ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em %all assume responsibility = issu+ r\t+ transit numb]s to depository in/itutions = all purposes relat+ to ! cle>+ ( transactions & ! s]vices requir$ to be made available to all depository in/itutions "u section #aa;,a ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #bdh;a74 #gjd4 ,cl>ify+ application review times ) respect to ! ,f$]al bank+ ag5cies ,section #cdc ( ! ,riegle ,community ,developm5t & ,regulatory ,improvem5t ,act ( #aiid 7#ab ,u4,s4,c4 #dhjg7 is am5d$ by /rik+ subsection 7a7 & ins]t+ ! foll[+3 7a7 ,f9al action 7#a7 ,def9ition ,9 ?is subsection1 ! t]m complet$ application-- 7,a7 means ! in=mation reque/$ by ! ,f$]al bank+ ag5cy at ! outset ( an application ?r\gh application =ms or simil> means2 & 7,b7 does n include supplem5tal in=mation reque/$ by ! ag5cy aft] fil+ ( an application4 7#b7 ,action ,ea* ,f$]al bank+ ag5cy1 includ+ ,f$]al ,res]ve banks1 %all take f9al action on any application to ! ag5cy be=e ! end ( ! #a-ye> p]iod beg9n+ on ! date on :i* a complet$ application is receiv$ by ! ag5cy4 7b7 ,report ,ea* ,f$]al bank+ ag5cy1 includ+ ! ,f$]al ,res]ve banks1 %all annually report to ,congress a li/ ( ! applications t h be5 p5d+ = #i mon?s or long] s9ce ! date ( ! initial application fil$ by an applicant4 ,su* li/-- 7#a7 %all disclose ! reason :y ! application has n yet be5 approv$ or d5i$ by ! ,f$]al bank+ ag5cy2 & 7#b7 %all n conta9 confid5tial sup]visory in=mation4 4 #gje4 ,exam9ation /&>ds = digital asset activities 7a7 ,9 g5]al ,n lat] ?an #ah mon?s aft] ! date ( enactm5t ( ?is ,act1 ! ,f$]al ,f9ancial ,in/itutions ,exam9ation ,c\ncil1 9 consultation ) ! ,f9ancial ,crimes ,en=cem5t ,network1 %all publi% f9al guidance & exam9] h&books = depository in/itutions1 z def9$ 9 section #ai7;b77#a7 ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #dfa7;b77#a771 on ! foll[+ topics relat$ to digital assets3 7#a7 ,anti-money laund]+1 cu/om] id5tification1 b5eficial own]%ip1 & sanctions compliance1 includ+ ) respect to paym5t /ableco9 activities & subsidi>y value 7z def9$ 9 section #ihjb7;c7 ( title #ca1 ,unit$ ,/ates ,code74 7#b7 ,cu/ody4 7#c7 ,fiduci>y & capital m>kets activities4 7#d7 ,in=mation te*nology /&>ds4 7#e7 ,paym5t sy/em risk4 7#f7 ,consum] protection4 7b7 ,f9al guidance ,n lat] ?an #ah mon?s aft] ! date ( enactm5t ( ?is ,act1 ,securities & ,ex*ange ,commission & ,commodity ,futures ,trad+ ,commission1 9 consultation ) ! ,f9ancial ,crimes ,en=cem5t ,network1 %all publi% f9al guidance & exam9] h&books relat+ to digital asset int]m$i>ies reg>d+ ! topics describ$ 9 p>agraphs 7#a7 & 7#d7 ( subsection 7a74 #gjf4 ,asset cu/ody = depository in/itutions & c]ta9 o!r entities 7a7 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,! laws surr\nd+ cu/ody ( f9ancial assets is l>gely cu/om>y1 uncodifi$1 & poorly und]/ood4 7#b7 ,lack ( uni=mity among/ v>i\s jurisdictions' laws relat+ to cu/ody has l>gely n be5 address$ by regulators1 c contribute to risk1 & is produc+ unc]ta9ty = innovators4 7#c7 ,codify+ basic pr9ciples ar\nd cu/ody ( f9ancial assets w r$uce sy/emic risk1 cle>ly def9e ! rights & duties ( bo? cu/odian & cu/om]1 & contribute to a m uni=m & effective bank+ sy/em4 7b7 ,def9ition ,9 ?is section1 ! t]m cu/ody means ! safekeep+1 s]vic+ & managem5t ( cu/om] f9ancial assets1 includ+ curr5cy1 securities & commodities1 on an (f-balance %eet basis4 7c7 ,cu/ody 7#a7 ,9 g5]al ,except z provid$ 9 p>agraph 7#b71 cu/ody ( f9ancial assets is accompli%$ by a bailm5t & e/abli%$ by a writt5 cu/om] agreem5t4 ,cu/ody %all n be a fiduci>y or tru/ activity unless ! cu/odian is provid+ sub/antial discretion>y s]vices ) respect to an acc\nt1 includ+ ?r\gh inve/m5t advice or inve/m5t discretion1 & ! cu/odian owes a cu/om] a high] /&>d ( c>e or duty ) respect to ! cu/om] ( t acc\nt4 7#b7 ,exception ,a cu/odian & cu/om] may e/abli% a legal relation%ip o!r ?an a bailm5t pursuant to a writt5 cu/om] agreem5t4 7d7 ,prop] docum5tation ,a cu/odial acc\nt %all be prop]ly docum5t$ 9 a cu/om] agreem5t1 ) a cle>ly def9$ legal relation%ip betwe5 ! cu/odian & cu/om]4 ,cu/odial assets %all be prop]ly id5tifi$ & segregat$ f ! assets ( ! cu/odian1 ) prop] docum5tation ( asset segregation4 7e7 ,n assets or liabilities ,assets prop]ly held 9 a cu/odial acc\nt "u ?is section are n assets or liabilities ( ! cu/odian & %all be ma9ta9$ on an (f-balance %eet basis1 includ+ = ! purpose ( acc\nt+ treatm5t = ! cu/odian & ! cu/om]s ( ! cu/odian1 not)/&+ ! =m 9 :i* ! assets are ma9ta9$4 7f7 ,applicability ,?is section %all apply to depository in/itutions1 z def9$ 9 section #ai7;b77#a7 ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #dfa7;b77#a771 & non-depository tru/ companies *>t]$ "u section #eafi ( ! ,revis$ ,/atutes 7#ab ,u4,s4,c4 #bg74 #gjg4 ,reputation risk2 requirem5ts = acc\nt t]m9ation reque/s & ord]s 7a7 ,reputation risk ,an appropriate ,f$]al bank+ ag5cy may n =mally or in=mally reque/ or ord] a depository in/itution to t]m9ate a specific cu/om] acc\nt or gr\p ( cu/om] acc\nts unless ! ag5cy has a valid reason = su* reque/ or ord]1 consi/5t ) subsections 7b7 & 7c74 7b7 ,no re/riction ,an appropriate ,f$]al bank+ ag5cy %all n re/rict or disc\rage a depository in/itution f ent]+ into or ma9ta9+ a bank+ relation%ip ) a specific cu/om] or gr\p ( cu/om]s bas$ on reputation risk1 includ+ ?r\gh ! exam9ations & rat+s ( ! depository in/itution4 7c7 ,treatm5t ( national security ?reats ,if an appropriate ,f$]al bank+ ag5cy believes a specific cu/om] or gr\p ( cu/om]s is1 or act+ z a conduit =1 an entity :i*-- 7#a7 poses a ?reat to national security2 7#b7 is involv$ 9 t]rori/ f9anc+2 7#c7 is an ag5cy ( ! ,gov]nm5t ( ,iran1 ,nor? ,korea1 ,syria1 or any c\ntry li/$ f "t to "t on ! ,/ate ,sponsors ( ,t]rorism li/2 7#d7 is locat$ 91 or is subject to ! jurisdiction (1 any c\ntry specifi$ 9 p>agraph 7#c72 or 7#e7 does bus9ess ) any entity describ$ 9 p>agraph 7#c7 or 7#d71 unless ! appropriate ,f$]al bank+ ag5cy det]m9es t ! cu/om] or gr\p ( cu/om]s has us$ due dilig5ce to avoid do+ bus9ess ) t entity1 su* belief %all satisfy ! requirem5t "u subsection 7a74 7d7 ,notice requirem5t 7#a7 ,9 g5]al ,if an appropriate ,f$]al bank+ ag5cy =mally reque/s or ord]s a depository in/itution to t]m9ate a specific cu/om] acc\nt or a gr\p ( cu/om] acc\nts1 ! ag5cy %all-- 7,a7 provide su* reque/ or ord] to ! in/itution 9 writ+2 & 7,b7 accompany su* reque/ or ord] ) a writt5 ju/ification = :y su* t]m9ation is ne$$1 includ+ any specific laws or rules ! ag5cy believes are be+ violat$ by ! cu/om] or gr\p ( cu/om]s4 7#b7 ,ju/ification requirem5t ,consi/5t ) subsection 7b71 ! ju/ification describ$ 9 p>agraph 7#a77;,b7 may n be bas$ on reputation risk to ! depository in/itution4 7e7 ,cu/om] notice 7#a7 ,notice requir$ ,except z provid$ "u p>agraph 7#b7 or z o!rwise prohibit$ f be+ disclos$ by law1 if an appropriate ,f$]al bank+ ag5cy ord]s a depository in/itution to t]m9ate a specific cu/om] acc\nt or a gr\p ( cu/om] acc\nts1 ! depository in/itution %all in=m ! specific cu/om] or gr\p ( cu/om]s ( ! ju/ification = ! cu/om]'s acc\nt t]m9ation describ$ "u subsection 7b74 7#b7 ,notice prohibit$ 7,a7 ,notice prohibit$ 9 cases ( national security ,if an appropriate ,f$]al bank+ ag5cy reque/s or ord]s a depository in/itution to t]m9ate a specific cu/om] acc\nt or a gr\p ( cu/om] acc\nts bas$ on a belief t ! cu/om] or cu/om]s pose a ?reat to national security1 or are o!rwise describ$ "u subsection 7a77#b71 nei!r ! depository in/itution nor ! appropriate ,f$]al bank+ ag5cy may in=m ! cu/om] or cu/om]s ( ! ju/ification = ! cu/om]'s acc\nt t]m9ation4 7,b7 ,notice prohibit$ 9 o!r cases ,if an appropriate ,f$]al bank+ ag5cy det]m9es t ! notice requir$ "u p>agraph 7#a7 may int]f]e ) an au?oriz$ crim9al inve/igation1 nei!r ! depository in/itution nor ! appropriate ,f$]al bank+ ag5cy may in=m ! specific cu/om] or gr\p ( cu/om]s ( ! ju/ification = ! cu/om]'s acc\nt t]m9ation4 7f7 ,report+ requirem5t ,ea* appropriate ,f$]al bank+ ag5cy %all issue an annual report to ,congress /at+-- 7#a7 ! aggregate numb] ( specific cu/om] acc\nts t ! ag5cy reque/$ or ord]$ a depository in/itution to t]m9ate dur+ ! previ\s ye>2 & 7#b7 ! legal au?ority on :i* ! ag5cy reli$ 9 mak+ su* reque/s & ord]s & ! frequ5cy on :i* ! ag5cy reli$ on ea* su* au?ority4 7g7 ,def9itions ,9 ?is section3 7#a7 ,appropriate f$]al bank+ ag5cy ,! t]m appropriate ,f$]al bank+ ag5cy means-- 7,a7 ! appropriate ,f$]al bank+ ag5cy1 z def9$ 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 & 7,b7 ! ,national ,cr$it ,union ,adm9i/ration1 9 ! case ( an insur$ cr$it union4 7#b7 ,depository in/itution ,! t]m depository in/itution has ! mean+ giv5 ! t]m 9 section #ai7;b77#a7 ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #dfa7;b77#a77;,a774 #gjh4 ,con=m+ am5dm5ts 7a7 ,f$]al deposit insurance act ,section #ab ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbb7 is am5d$ by add+ at ! end ! foll[+3 7g7 ,appo9tm5t ( receiv] 7#a7 ,def9ition ,9 ?is subsection1 ! t]m cov]$ depository in/itution has ! mean+ giv5 ! t]m 9 section #ae7;a7 ( ! ,bank ,hold+ ,company ,act ( #aief4 7#b7 ,appo9tm5t ,! ,corporation may be appo9t$ z receiv] ( a cov]$ depository in/itution1 z def9$ 9 section #ae7;a7 ( ! ,bank ,hold+ ,company ,act ( #aief4 7#c7 ,premiums ,a cov]$ depository in/itution may n be *>g$ deposit insurance premiums = ! purpose ( ?is subsection1 b ! ,corporation may use ! capital ( ! cov]$ depository in/itution to fund ! co/s ( ! receiv]%ip4 7#d7 ,rules ,! ,corporation may promulgate rules to c>ry out ?is subsection1 :i* %all-- 7,a7 be sub/antially consi/5t ) ! rules = receiv]%ip ( an insur$ depository in/itution2 & 7,b7 acc\nt = ! limit$ activities1 capital1 & ! requir$ tailor$ recov]y & resolution plan ( ! cov]$ depository in/itution4 4 7b7 ,f$]al ,res]ve ,act ,! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #bba et seq47 is am5d$-- 7#a7 9 section #ai7;b77#a77;,a7 7#ab ,u4,s4,c4 #dfa7;b77#a77;,a77-- 7,a7 9 clause 7vi71 by /rik+ & at ! end2 7,b7 9 clause 7vii71 by /rik+ ! p]iod at ! end & ins]t+ 2 &2 & 7,c7 by add+ at ! end ! foll[+3 7viii7 a cov]$ depository in/itution1 z def9$ 9 section #ae7;a7 ( ! ,bank ,hold+ ,company ,act ( #aief4 2 & 7#b7 9 ! fir/ undesignat$ p>agraph ( section #i 7#ab ,u4,s4,c4 #cba71 9 ! fir/ s5t5ce1 by ins]t+ 1 cov]$ depository in/itutions1 z def9$ 9 section #ae7;a7 ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahec7;a771 aft] ,plan banks4 ,,viii ,responsible int]ag5cy coord9ation #hja4 ,timel9e = int]pretive guidance issu$ by ,f$]al f9ancial ag5cies 7a7 ,9 g5]al ,title #ca1 ,unit$ ,/ates ,code1 is am5d$ by add+ aft] *apt] #ih1 z add$ by section #aja7;a7 ( ?is ,act1 ! foll[+3 #ii ,responsible int]ag5cy coord9ation ,sec4 #iija4 ,timel9e = int]pretive guidance issues by ,f$]al f9ancial ag5cies4 #iijb4 ,int]/ate s&box activities4 #iija4 ,timel9e = int]pretive guidance issues by ,f$]al f9ancial ag5cies 7a7 ,9 g5]al ,9 ?is section3 7#a7 ,f$]al f9ancial regulator ,! t]m ,f$]al f9ancial regulator means-- 7,a7 ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em & ! ,f$]al ,res]ve banks2 7,b7 ,commodity ,futures ,trad+ ,commission2 7,c7 ,dep>tm5t ( ! ,treasury2 7,d7 ,f$]al ,deposit ,insurance ,corporation2 7,e7 ,f$]al ,h\s+ ,f9ance ,ag5cy2 7,f7 ,national ,cr$it ,union ,adm9i/ration2 7,g7 ,(fice ( ! ,comptroll] ( ! ,curr5cy2 7,h7 ,consum] ,f9ancial ,protection ,bureau2 & 7,i7 ,securities & ,ex*ange ,commission4 7#b7 ,reque/+ p]son ,! t]m reque/+ p]son-- 7,a7 means any entity t is requir$ to be *>t]$1 lic5s$1 sup]vis$ or regi/]$ by t ag5cy2 & 7,b7 includes ,/ate ag5cies & self-regulatory organizations4 7b7 ,response ,n lat] ?an #ahj days aft] fil+ a writt5 reque/ = individualiz$ int]pretive guidance ) respect to ! application ( a /atute1 rule or policy "u ! jurisdiction ( a ,f$]al f9ancial regulator1 ! ag5cy %all provide a f9al1 complete & writt5 response to ! reque/+ p]son4 ,?is subsection %all n apply to reque/s = guidance t ! ,f$]al f9ancial regulator det]m9e lack sub/ance4 7c7 ,o!r matt]s ,) respect to matt]s delegat$ or o!rwise "u ! jurisdiction ( self-regulatory organizations1 includ+ national securities ex*anges1 bo>ds ( trade1 & simil> entities1 ! self-regulatory organization %all be subject to ! same requirem5ts z a ,f$]al f9ancial regulator "u ?is section4 4 #hjb4 ,int]/ate s&box activities 7a7 ,9 g5]al ,*apt] #ii ( title #ca1 ,unit$ ,/ates ,code1 z add$ by section #gja ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 #iijb4 ,int]/ate s&box activities 7a7 ,def9itions ,9 ?is section3 7#a7 ,f$]al f9ancial regulator ,! t]m ,f$]al f9ancial regulator means ! ,f$]al ag5cy describ$ 9 section #iija7;a77#a7 t w\ld typically ex]cise jurisdiction ov] ! product or s]vice made available 9 ! ,/ate f9ancial regulatory s&box1 or ! ,dep>tm5t ( ! ,treasury1 9 ! case ( a matt] only )9 ! jurisdiction ( a ,/ate4 7#b7 ,f9ancial company ,! t]m f9ancial company means a bus9ess entity prim>ily engag$ 9 activities t are f9ancial 9 nature1 z describ$ 9 section #d7k77#d7 ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahdc7k77#d774 7#c7 ,ho/ ,/ate ,! t]m ho/ ,/ate means a ,/ate 9 :i* a f9ancial company is n op]at+ 9 ! ,/ate f9ancial regulatory s&box ( t ,/ate4 7#d7 ,innovative ,! t]m innovative means new or em]g+ te*nology1 or new uses ( exi/+ te*nology1 t-- 7,a7 provides a f9ancial product1 s]vice1 bus9ess model1 or deliv]y me*anism to ! public2 & 7,b7 has no sub/antially comp>able1 widely available analogue 9 common use 9 ! ,unit$ ,/ates4 7#e7 ,/ate f9ancial regulator ,! t]m ,/ate f9ancial regulator includes ,/ate ag5cies t regulate1 sup]vise1 or lic5se banks1 tru/ companies1 cr$it unions1 consum] cr$it1 consum] protection1 money transmission1 securities1 commodities1 & simil> areas4 7#f7 ,/ate f9ancial regulatory s&box ,! t]m ,/ate f9ancial regulator s&box means a program creat$ "u ,/ate law t all[s a f9ancial company to make an innovative f9ancial product or s]vice available to cu/om]s )9 t ,/ate dur+ a def9$ p]iod 9 ord] to p]mit regulatory dialogue1 data %>+ among/ regulators & f9ancial companies1 & to promote an assessm5t ( pot5tial *anges 9 law1 rule1 or policy to facilitate ! appropriate sup]vision ( f9ancial te*nology4 7b7 ,bus9ess conduct$ ,^u jo9t approval "u subsection 7d71 a f9ancial company 9 good /&+ 9 a ,/ate f9ancial regulatory s&box & op]at+ = n less ?an #f mon?s 9 t s&box program1 may d bus9ess across ,/ate l9es "u ! /&>ds ( ?is section4 ,if approv$1 ! ,/ate f9ancial regulator & ! ,f$]al f9ancial regulator may agree ^u reasonable adju/m5ts to ! numb] ( cu/om]s t may be s]v$1 increas$ bond+ or collat]al requirem5ts1 & simil> conditions :i* may be appropriate = conduct+ bus9ess nationally4 7c7 ,/ate s&box requirem5ts ,a ,/ate f9ancial regulatory s&box %all conta9 ! foll[+ compon5ts = f9ancial companies to be eligible to d bus9ess across ,/ate l9es "u ?is section3 7#a7 ,a limit$ s&box p]iod ( n m ?an #bd mon?s4 7#b7 ,consum] protection requirem5ts1 :i* may include disclosures1 bond+1 insurance requirem5ts1 & f9ancial lit]acy programs = specifi$ consum]s4 7#c7 ,au?ority to conduct exam9ations ( ! f9ancial company4 7#d7 ,a backgr\nd inve/igation ( ! f9ancial company & its (fic]s1 directors1 memb]s1 manag]s & key employees1 prior to comm5c+ bus9ess4 7d7 ,decision ,^u submission ( an application by a f9ancial company to conduct bus9ess across ,/ate l9es "u subsection 7b71 ! ,/ate f9ancial regulator & ,f$]al f9ancial regulator %all jo9tly issue a decision )9 #abj days ) respect to t application1 irrespective ( any supplem5tal in=mation ) respect to ! application t may be reque/$ aft] initial fil+4 ,! ,f$]al f9ancial regulator %all h ! au?ority to conduct a jo9t exam9ation ( any f9ancial company do+ bus9ess "u ?is section4 7e7 ,factors ,! ,/ate f9ancial regulator & ,f$]al f9ancial regulator %all consid] ! foll[+ factors 9 r5d]+ a decision on ! application3 7#a7 ,:e!r ! product or s]vice (f]$ may be (f]$ 9 a safe & s\nd mann] across ,/ate l9es4 7#b7 ,:e!r ! managem5t & capital ( ! f9ancial company is comm5surate ) ! scale ( ! company4 7#c7 ,risk managem5t plans ( ! f9ancial company4 7#d7 ,conduct ( ! f9ancial company to date 9 ! ,/ate regulatory s&box1 & any pa/ regulatory actions1 includ+ actions aga9/ (fic]s1 directors1 memb]s1 manag]s & key employees4 7#e7 ,plans = consum] education & f9ancial lit]acy1 includ+ p>tn]%ips ) local educational in/itutions & community colleges to provide f9ancial lit]acy classes or res\rces4 7#f7 ,o!r factors det]m9$ by ! ,/ate & ,f$]al f9ancial regulators to be mat]ial4 7f7 ,election ,a ho/ ,/ate may elect n to p]mit f9ancial companies op]at+ "u ?is section to d bus9ess 9 _! ,/ate ?r\gh issuance ( an executive ord] by ! ,gov]nor ( t ,/ate4 7g7 ,innovative ,a product or s]vice made available "u ?is section ?r\gh a ,/ate f9ancial regulatory s&box %all be innovative4 7h7 ,rules ( con/ruction ,?is section %all n be con/ru$ to ext5d to p]mit-- 7#a7 a f9ancial company to engage 9 any activities = :i* a *>t]1 lic5se1 regi/ration or = :i* p]mission w\ld be requir$ "u ,f$]al or ,/ate law b = ! innovative f9ancial product or s]vice be+ (f]$ by ! company1 except to ! ext5t ! f9ancial company w\ld be requir$ to obta9 a *>t]1 lic5se or o!r au?orization requir$ 9 a ho/ ,/ate2 7#b7 failure to comply ) any applicable portion ( ,/ate law requir$ by ! ,/ate f9ancial regulatory s&box1 or failure to comply ) any applicable portion ( ,f$]al law1 unless au?oriz$ on a limit$ basis by ! ,f$]al f9ancial regulator to a*ieve ! purposes ( ?is section & ! ,/ate f9ancial regulatory s&box2 or 7#c7 l5d+ activities 9 excess ( ! maximum /atutory rate ( int]e/ p]missible 9 a ,/ate4 4 7b7 ,te*nical & con=m+ am5dm5t ,! table ( cont5ts = subtitle ,,vi ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #aja7;b7 ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 #ii4 ,responsible int]ag5cy coord9ation#iija 4 #hjc4 ,/ate money transmission coord9ation relat+ to digital assets 7a7 ,9 g5]al ,9 ord] to increase uni=mity1 r$uce regulatory burd51 & enhance consum] protection1 ! ,/ates1 ?r\gh ! ,conf]5ce ( ,/ate ,bank ,sup]visors & ! ,money ,transmission ,regulators ,association1 %all1 n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act1 ensure uni=m treatm5t ( digital assets = ! purposes ( ,/ate money transmission laws on ! foll[+ matt]s3 7#a7 ,:e!r digital assets are subject to money transmission lic5s+ requirem5ts1 z appropriate1 :i* %all include ! ex*ange ( digital assets = legal t5d]4 7#b7 ,treatm5t ( paym5t /ableco9s4 7#c7 ,non-applicability to p]sons or s(tw>e t engage 9 validation ( transactions1 non-cu/odial wallet provid]s1 or s(tw>e or h>dw>e developm5t4 7#d7 ,tangible net wor? & p]missible inve/m5t requirem5ts4 7#e7 ,disclosures1 report+1 & recordkeep+4 7#f7 ,common exam9ation & exam9] tra9+ /&>ds1 includ+ common cu/om] id5tification1 anti-money laund]+1 & sanctions be/ practices develop$ 9 consultation ) ! ,f9ancial ,crimes ,en=cem5t ,network & ! ,(fice ( ,=eign ,assets ,control4 7b7 ,regulations ,if ! ,director ( ! ,bureau ( ,consum] ,f9ancial ,protection det]m9es t a ,/ate does n h ! requirem5ts ( subsection 7a7 9 effect by law 7includ+ regulations7 t are sub/antively consi/5t ) ! requirem5ts ( ! sev]al ,/ates on ! date t is #b ye>s aft] ! date ( enactm5t ( ?is section1 ! ,director %all adopt rules applicable to t ,/ate t a*ieve ! purposes ( subsection 7a7 & t are consi/5t ) ! /&>ds adopt$ 9 ! ,/ates t h ! requirem5ts ( subsection 7a7 9 effect4 ,! ,director may ext5d ! deadl9e "u ?is section = n m ?an #a ye> if a ,/ate has %[n a good fai? ef=t t[>ds implem5tation4 ,! ,director may promulgate regulations to monitor ,/ate compliance ) ?is subsection4 #hjd4 ,in=mation %>+ among ,f$]al & ,/ate f9ancial regulators ,subtitle ,c ( title ,,vii ( ! ,gramm-,lea*-,bliley ,act 7,public ,law #ajf-ajb2 #aac ,/at4 #adgj71 z am5d$ by section #fja ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 #gbb;,b4 ,in=mation %>+ among ,f$]al & ,/ate f9ancial regulators 7a7 ,confid5tiality ,not)/&+ any o!r provision ( law1 any requirem5t "u ,f$]al or ,/ate law reg>d+ ! privacy or confid5tiality ( any in=mation or mat]ials ex*ang$ among f9ancial regulators & any privilege aris+ "u ,f$]al or ,/ate law 7includ+ ! rules ( any ,f$]al or ,/ate c\rt7 ) respect to su* in=mation or mat]ial1 %all cont9ue to apply to su* in=mation or mat]ial aft] ! in=mation or mat]ial has be5 disclos$ to any ,/ate or ,f$]al f9ancial regulator4 7b7 ,non-,applicability ( c]ta9 requirem5ts ,in=mation or mat]ial t is subject to privilege or confid5tiality "u subsection 7a7 %all n be subject to-- 7#a7 disclosure "u any ,f$]al or ,/ate law gov]n+ ! disclosure to ! public ( in=mation held by an (fic] or an ag5cy ( ! ,f$]al ,gov]nm5t or ! respective ,/ate2 or 7#b7 subpo5a or discov]y1 or admission into evid5ce1 9 any private civil action or adm9i/rative process1 unless ) respect to any privilege held by ! ,nationwide ,mortgage ,lic5s+ ,sy/em & ,regi/ry or ! ,director ) respect to su* in=mation or mat]ial1 ! p]son to :om su* in=mation or mat]ial p]ta9s waives t privilege1 9 :ole or 9 "p1 bas$ on ! discretion ( su* p]son4 7c7 ,coord9ation ) o!r law ,any ,/ate or ,f$]al law1 includ+ any ,/ate op5 records law1 relat+ to ! disclosure ( confid5tial sup]visory in=mation or any in=mation or mat]ial describ$ 9 subsection 7a7 t is inconsi/5t ) subsection 7a7 %all be sup]s$$ by ! requirem5ts ( su* provision to ! ext5t ! ,/ate or ,f$]al law provides less confid5tiality or a weak] privilege4 7d7 ,conf]5ce ( ,/ate ,bank ,sup]visors ,! ,conf]5ce ( ,/ate ,bank ,sup]visors %all be consid]$ ! ag5t ( ! ,/ate f9ancial regulators = ! purposes ( %>+ in=mation "u ?is provision4 7e7 ,def9ition ,9 ?is section1 ! t]m f9ancial regulator means-- 7#a7 ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em & ! ,f$]al ,res]ve banks2 7#b7 ! ,commodity ,futures ,trad+ ,commission2 7#c7 ! ,dep>tm5t ( ! ,treasury1 includ+ ! ,f9ancial ,crimes ,en=cem5t ,network & ! ,(fice ( ,=eign ,assets ,control2 7#d7 ! ,f$]al ,deposit ,insurance ,corporation2 7#e7 ! ,f$]al ,h\s+ ,f9ance ,ag5cy2 7#f7 ! ,national ,cr$it ,union ,adm9i/ration2 7#g7 ! ,(fice ( ! ,comptroll] ( ! ,curr5cy2 7#h7 ! ,bureau ( ,consum] ,f9ancial ,protection2 7#i7 ! ,securities & ,ex*ange ,commission2 & 7#aj7 ,/ate ag5cies t regulate1 sup]vise1 or lic5se banks1 tru/ companies1 cr$it unions1 consum] cr$it1 consum] protection1 money transmission1 securities1 commodities1 & simil> areas4 4 #hje4 ,analysis ( dec5traliz$ f9ance m>kets & te*nologies ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury1 9 consultation ) ! ,commodity ,futures ,trad+ ,commission1 ,securities & ,ex*ange ,commission1 & private sector develop]s & p>ticipants 9 dec5traliz$ protocols1 digital assets1 & digital asset ex*anges1 %all-- 7#a7 analyze ! m>ket position ( dec5traliz$ f9ance te*nologies ) respect to digital assets2 & 7#b7 submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs & ! ,committee on ,agriculture1 ,nutrition1 & ,=e/ry ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices & ! ,committee on ,agriculture ( ! ,h\se ( ,repres5tatives a report on-- 7,a7 curr5t developm5t & use ( dec5traliz$ f9ance protocols 9 ! ,unit$ ,/ates & o!r c\ntries2 7,b7 opportunities1 b5efits1 & *all5ges relat+ to dec5traliz$ f9ance protocols & self-cu/ody ( digital assets2 7,c7 a comp>ison ( op]ational friction1 fees1 liquidity & trad+ opportunities 9 dec5traliz$ f9ance protocols1 digital asset m>kets1 & traditional m>kets2 7,d7 transp>5cy1 prev5tion ( manipulation1 & cu/om] protection2 7,e7 cyb]security & resili5cy2 & 7,f7 ensur+ ! accuracy ( in=mation reg>d+ ! und]ly+ sm>t contracts ( a dec5traliz$ f9ance protocol & ! transactions facilitat$ by su* contracts1 z ! in=mation appe>s on a website or o!r simil> means relat+ to ! protocol4 #hjf4 ,analysis ( en]gy consumption 9 digital asset m>kets 7a7 ,9 g5]al ,ea* ye>1 ! ,f$]al ,en]gy ,regulatory ,commission1 9 consultation ) ! ,commodity ,futures ,trad+ ,commission & ,securities & ,ex*ange ,commission1 %all analyze ! foll[+ topics ) respect to digital asset m>kets3 7#a7 ,en]gy consumption = m9+ & /ak+ ( digital asset transactions4 7#b7 ,! effect ( en]gy consumption describ$ 9 p>agraph 7#a7 on national1 regional1 & local en]gy prices4 7#c7 ,! effects ( m9+ & /ak+ ( digital asset transactions on baseload p[] levels4 7#d7 ,! use ( r5ewable en]gy s\rces1 includ+ use ( nonr5ewable s\rces t w\ld o!rwise be wa/$1 & a comp>ison ( digital asset m>ket en]gy consumption ) ! f9ancial s]vices indu/ry & economy z a :ole4 7#e7 ,! s\rces & reliability ( ! data us$ "u ?is subsection4 7#f7 ,a process = regulat$ entities to make in=mation publicly available reg>d+ en]gy consumption1 includ+ s\rces ( en]gy & am\nt1 &1 if appropriate1 recomm5dations to ,congress to e/abli% su* a process4 7b7 ,report ,n lat] ?an ,decemb] #ca ( ea* ye>1 ! ,f$]al ,en]gy ,regulatory ,commission %all submit to ! ,committee on ,en]gy & ,natural ,res\rces & ! ,committee on ,environm5t & ,public ,works ( ! ,s5ate & ! ,committee on ,en]gy & ,comm]ce & ! ,committee on ,natural ,res\rces ( ! ,h\se ( ,repres5tatives a report conta9+ ! analysis requir$ by subsection 7a74 #hjg4 ,analysis ( self-regulation & regi/]$ digital asset associations 7a7 ,9 g5]al ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is ,act1 ! ,commodity ,futures ,trad+ ,commission & ,securities & ,ex*ange ,commission1 9 consultation ) digital asset int]m$i>ies1 z def9$ 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code1 z add$ by section #aja ( ?is ,act1 & /&>d-sett+ associations repres5t+ ! digital asset indu/ry1 %all conduct a /udy & submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs & ! ,committee on ,agriculture1 ,nutrition1 & ,=e/ry ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices & ! ,committee on ,agriculture ( ! ,h\se ( ,repres5tatives a report sett+ =? pr9ciples = self-regulation = digital asset m>kets & a proposal = ! e/abli%m5t ( regi/]$ digital asset associations = digital asset m>kets bas$ on delegat$ au?ority f ! ,commodity ,futures ,trad+ ,commission & ,securities & ,ex*ange ,commission to facilitate innovative1 effici5t1 & ord]ly m>kets = digital assets 9 accordance ) ?is ,act1 & ! am5dm5ts made by ?is ,act1 includ+-- 7#a7 /&>d sett+1 corporate transp>5cy requirem5ts1 & rulemak+ relat+ to digital asset m>ket conduct2 7#b7 regul> consultation betwe5 ! ,commodity ,futures ,trad+ ,commission & ,securities & ,ex*ange ,commission ) respect to rules gov]n+ digital asset m>ket conduct & ! gov]nance ( regi/]$ digital asset associations2 7#c7 appropriate inve/igatory & discipl9>y p[]s ( regi/]$ digital asset associations & regi/]$ digital asset ex*anges1 respectively2 7#d7 ! au?ority ( digital asset int]m$i>ies to conduct activities relat+ to traditional assets2 7#e7 consum] education & f9ancial lit]acy2 7#f7 pr(essional accr$itation & education2 7#g7 m>ket surveillance & ov]sight1 includ+ use ( te*nology to facilitate %>$ trade practices & m>ket surveillance2 7#h7 risk-bas$ exam9ation au?ority2 7#i7 dispute resolution & arbitration2 7#aj7 memb]%ip ( regi/]$ digital asset association memb]s 9 o!r self-regulatory organizations & mutual recognition & acceptance ( rules & exam9ation reports among/ self-regulatory organizations2 7#aa7 volunt>y & compulsory memb]%ip /ructures2 7#ab7 ! initial det]m9ation ( ! legal classification ( a digital asset by a regi/]$ digital asset association1 subject to ov]sight by ! ,commodity ,futures ,trad+ ,commission & ,securities & ,ex*ange ,commission2 & 7#ac7 ! fund+ ( regi/]$ digital asset associations bas$ on fees4 7b7 ,int]im rule ,n lat] ?an ,augu/ #a1 #bjbb1 ! ,commodity ,futures ,trad+ ,commission & ,securities & ,ex*ange ,commission %all jo9tly adopt an int]im f9al rule specify+ ! scope ( ! /udy "u subsection 7a71 includ+ topics ( discussion & que/ions = digital asset int]m$i>ies & associations repres5t+ ! digital asset indu/ry1 & sett+ =? n few] ?an #c public meet+s = /aff ( ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission to receive public comm5t4 ,! int]im f9al rule %all e/abli% a comm5t p]iod ( n less ?an #abj days prior to publication ( ! report "u subsection 7a7 & conta9 draft legislative text = ! creation ( regi/]$ digital asset associations by ,congress4 #hjh4 ,cyb]security /&>ds = digital asset int]m$i>ies 7a7 ,def9ition ,9 ?is section1 ! t]m digital asset int]m$i>y has ! mean+ giv5 ! t]m 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code1 z add$ by section #aja ( ?is ,act4 7b7 ,requirem5t ,n lat] ?an #ah mon?s aft] ! date ( enactm5t ( ?is ,act1 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission1 9 consultation ) ! ,secret>y ( ! ,treasury & ! ,director ( ! ,national ,in/itute ( ,/&>ds & ,te*nology1 %all develop compreh5sive1 pr9ciples-bas$ guidance relat+ to cyb]security = digital asset int]m$i>ies t acc\nt =1 ) respect to su* a digital asset int]m$i>y-- 7#a7 ! int]nal gov]nance1 & organizational culture1 ( ! cyb]security program ( ! digital asset int]m$i>y2 7#b7 security op]ations ( ! digital asset int]m$i>y1 includ+ ?reat id5tification1 incid5t response1 & mitigation2 7#c7 risk id5tification & measurem5t by ! digital asset int]m$i>y2 7#d7 ! mitigation ( risk by ! digital asset int]m$i>y1 includ+ policies ( ! digital asset int]m$i>y1 controls implem5t$ by ! digital asset int]m$i>y1 *ange managem5t ) respect to ! digital asset int]m$i>y1 & ! supply *a9 integrity ( ! digital asset int]m$i>y2 7#e7 assurance provid$ by1 & te/+ conduct$ by1 ! digital asset int]m$i>y1 includ+ p5etration te/+ & indep5d5t audits s conduct$2 & 7#f7 ! pot5tial = digital asset int]m$i>ies to be us$ to facilitate illicit activities1 includ+ sanctions avoidance4 #hji4 ,advisory ,committee on ,f9ancial ,innovation 7a7 ,e/abli%m5t ,!re is e/abli%$ ! ,advisory ,committee on ,f9ancial ,innovation 79 ?is section ref]r$ to z ! ,committee74 7b7 ,memb]%ip 7#a7 ,composition ,! ,committee %all be compos$ ( #aj memb]s1 z foll[s3 7,a7 #b memb]s appo9t$ by ! ,presid5t f ! f9ancial te*nology indu/ry4 7,b7 #d memb]s appo9t$ by ! ,presid5t ) specializations 9 consum] protection1 consum] education1 f9ancial lit]acy1 or f9ancial inclusion4 7,c7 ,a commission] f ! ,securities & ,ex*ange ,commission1 z designat$ by ! ,*air ( ! ,commission4 7,d7 ,a commission] f ! ,commodity ,futures ,trad+ ,commission1 z designat$ by ! ,*air ( ! ,commission4 7,e7 ,a memb] ( ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 z designat$ by ! ,*air ( ! ,bo>d4 7,f7 ,a ,/ate f9ancial regulator1 z jo9tly designat$ by ! ,national ,association ( ,/ate ,securities ,adm9i/rators & ! ,conf]5ce ( ,/ate ,bank ,sup]visors4 7#b7 ,political affiliation ,n m ?an #d ( ! memb]s ( ! ,committee %all be f ! same political p>ty4 7#c7 ,appo9tm5t date ,! appo9tm5ts ( ! memb]s ( ! ,committee %all be made n lat] ?an #fj days aft] ! date ( enactm5t ( ?is ,act4 7#d7 ,p]iod ( appo9tm5t2 vacancies 7,a7 ,9 g5]al ,a memb] ( ! ,committee %all be appo9t$ = a t]m ( #d ye>s4 7,b7 ,vacancies ,a vacancy 9 ! ,committee-- 7i7 %all n affect ! p[]s ( ! ,committee2 & 7ii7 %all be fill$ 9 ! same mann] z ! orig9al appo9tm5t4 7#e7 ,meet+s 7,a7 ,initial meet+ ,n lat] ?an #fj days aft] ! date on :i* all memb]s ( ! ,committee h be5 appo9t$1 ! ,committee %all hold its fir/ meet+4 7,b7 ,frequ5cy ,! ,committee %all meet at ! call ( ! ,*air4 7,c7 ,quorum ,a majority ( ! memb]s ( ! ,committee %all con/itute a quorum1 b a less] numb] ( memb]s may hold he>+s4 7#f7 ,*airp]son ,! memb]s describ$ 9 subp>agraphs 7,c7 & 7,d7 ( p>agraph 7#a7 %all alt]nate1 on a ye>ly basis1 z ,*airp]son ( ! ,committee1 ) ! memb] describ$ 9 su* subp>agraph 7,d7 s]v+ z ! ,*air = ! #a-ye> p]iod foll[+ e/abli%m5t ( ! ,committee4 7c7 ,duties 7#a7 ,matt]s /udi$ ,! matt]s /udi$ by ! ,committee %all include-- 7,a7 digital assets2 7,b7 consum] education & f9ancial lit]acy2 7,c7 m>ket /ructure 9 ! securities & commodities m>kets2 7,d7 bank+1 paym5ts & settlem5t2 7,e7 consum] cr$it2 7,f7 f9ancial inclusion1 includ+ r$uc+ ! co/ ( f9ancial s]vices = all p ( ! ,unit$ ,/ates & promot+ access to ^? s]vices2 7,g7 effici5cy 9 ! f9ancial sy/em2 7,h7 r$uction ( sy/emic risk2 7,i7 competition 9 f9ancial s]vices2 & 7,j7 ! ,/ate-,f$]al p>tn]%ip 9 f9ancial s]vices regulation4 7#b7 ,report ,on an annual basis1 or z o!rwise det]m9$ necess>y by ! ,*air ( ! ,committee1 ! ,committee %all report to ! ,presid5t & to ,congress on1 & provide recomm5dations = legislation1 regulation1 & sup]vision relat+ to innovation 91 ! matt]s /udi$ "u p>agraph 7#a74 7d7 ,p[]s 7#a7 ,he>+s ,! ,committee %all hold n less ?an #b he>+s p] cal5d> ye> to he> f int]e/$ p>ties & to discuss ! "w ( ! ,committee4 7#b7 ,in=mation f ,f$]al ag5cies 7,a7 ,9 g5]al ,! ,committee may secure directly f a ,f$]al dep>tm5t or ag5cy su* in=mation z ! ,committee consid]s necess>y to c>ry out ?is section4 7,b7 ,furni%+ in=mation ,on reque/ ( ! ,*air ( ! ,committee1 ! head ( ! dep>tm5t or ag5cy %all furni% ! in=mation to ! ,committee4 7#c7 ,po/al s]vices ,! ,committee may use ! ,unit$ ,/ates mails 9 ! same mann] & "u ! same conditions z o!r dep>tm5ts & ag5cies ( ! ,f$]al ,gov]nm5t4 7e7 ,comp5sation 7#a7 ,9 g5]al ,all memb]s ( ! ,committee %all s]ve )\t comp5sation 9 addition to t receiv$ = _! s]vices z (fic]s or employees ( ! ,unit$ ,/ates1 & all o!r memb]s ( ! ,committee %all s]ve )\t comp5sation4 7#b7 ,travel exp5ses ,ea* memb] ( ! ,committee may be all[$ travel exp5ses1 includ+ p] diem 9 lieu ( subsi/5ce1 9 accordance ) sections #egjb & #egjc ( title #e1 ,unit$ ,/ates ,code1 :ile away f _! homes or regul> places ( bus9ess 9 p]=mance ( s]vices = ! ,c\ncil4 7f7 ,/aff 7#a7 ,9 g5]al ,! ,*air ( ! ,committee may1 )\t reg>d to ! civil s]vice laws 7includ+ regulations71 appo9t & t]m9ate an executive director & su* o!r additional p]sonnel z may be necess>y to enable ! ,committee to p]=m its duties1 except t ! employm5t ( an executive director %all be subject to confirmation by ! ,committee4 7#b7 ,comp5sation ,! ,*air ( ! ,committee may fix ! comp5sation ( ! executive director & o!r p]sonnel )\t reg>d to *apt] #ea & sub*apt] ,,iii ( *apt] #ec ( title #e1 ,unit$ ,/ates ,code1 relat+ to classification ( positions & ,g5]al ,s*$ule pay rates1 except t ! rate ( pay = ! executive director & o!r p]sonnel may n exce$ ! rate payable = level ,v ( ! ,executive ,s*$ule "u section #ecaf ( t title4 7g7 ,detail ( gov]nm5t employees ,a ,f$]al ,gov]nm5t employee may be detail$ to ! ,committee )\t reimbursem5t1 & su* detail %all be )\t int]ruption or loss ( civil s]vice /atus or privilege4 7h7 ,procurem5t ( tempor>y & int]mitt5t s]vices ,! ,*air ( ! ,committee may procure tempor>y & int]mitt5t s]vices "u section #caji7;b7 ( title #e1 ,unit$ ,/ates ,code1 at rates = individuals t d n exce$ ! daily equival5t ( ! annual rate ( basic pay prescrib$ = level ,v ( ! ,executive ,s*$ule "u section #ecaf ( t title4 7i7 ,t]m9ation ,section #ad ( ! ,f$]al ,advisory ,committee ,act 7#e ,u4,s4,c4 ,app47 %all n apply to ! ,committee4 7j7 ,au?orization ( appropriations ,!re is au?oriz$ to be appropriat$ to ! ,committee to c>ry out ?is section #b1jjj1jjj = fiscal ye> #bjbc1 to rema9 available ?r\gh fiscal ye> #bjbd4