,,ii #aagth ,,congress #b;d ,session ,s4 #dgfj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,august #c1 #bjbb,ms4 ,stabenow 7for herself1 ,mr4 ,boozman1 ,mr4 ,booker1 and ,mr4 ,thune7 introduced the following bill2 which was read twice and referred to the ,committee on ,agriculture1 ,nutrition1 and ,forestry ,a ,,bill ,to amend the ,commodity ,exchange ,act to provide the ,commodity ,futures ,trading ,commission jurisdiction to oversee the spot digital commodity market1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,digital ,commodities ,consumer ,protection ,act of #bjbb4 #b4 ,definitions 7a7 ,in general ,section #a;a of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a7 is amended-- 7#a7 by redesignating paragraphs 7#c7 through 7#ae7 and paragraphs 7#af7 through 7#ea7 as paragraphs 7#e7 through 7#ag7 and paragraphs 7#be7 through 7#fj71 respectively2 7#b7 by inserting after paragraph 7#b7 the following3 7#c7 ,associated person of a digital commodity broker 7,a7 ,in general ,the term associated person of a digital commodity broker means a person who is associated with a digital commodity broker as a partner1 officer1 employee1 or agent 7or any person occupying a similar status or performing similar functions7 in any capacity that involves-- 7i7 the solicitation or acceptance of a digital commodity trade2 or 7ii7 the supervision of any person engaged in the solicitation or acceptance of a digital commodity trade4 7,b7 ,exclusion ,the term associated person of a digital commodity broker does not include any person associated with a digital commodity broker the functions of which are solely clerical or ministerial4 7#d7 ,associated person of a digital commodity dealer 7,a7 ,in general ,the term associated person of a digital commodity dealer means a person who is associated with a digital commodity dealer as a partner1 officer1 employee1 or agent 7or any person occupying a similar status or performing similar functions7 in any capacity that involves-- 7i7 the solicitation or acceptance of a digital commodity trade2 or 7ii7 the supervision of any person engaged in the solicitation or acceptance of a digital commodity trade4 7,b7 ,exclusion ,the term associated person of a digital commodity dealer does not include any person associated with a digital commodity dealer the functions of which are solely clerical or ministerial4 2 7#c7 in paragraph 7#aa7 7as so redesignated71 by striking and frozen concentrated orange juice and inserting frozen concentrated orange juice1 and digital commodities12 7#d7 in paragraph 7#ab77;,a7 7as so redesignated7-- 7,a7 by redesignating clauses 7iii7 and 7iv7 as clauses 7iv7 and 7v71 respectively2 and 7,b7 by inserting after clause 7ii7 the following3 7iii7 digital commodity2 2 7#e7 in paragraph 7#ac77;,a77i7 7as so redesignated7-- 7,a7 by redesignating subclauses 7,,iii7 and 7,,iv7 as subclauses 7,,iv7 and 7,v71 respectively2 and 7,b7 by inserting after subclause 7,,ii7 the following3 7,,iii7 digital commodity2 2 7#f7 in paragraph 7#ad77;,a77i7 7as so redesignated7-- 7,a7 in subclause 7,,ii71 by adding a semicolon at the end2 7,b7 by redesignating subclauses 7,,iii7 and 7,,iv7 as subclauses 7,,iv7 and 7,v71 respectively2 and 7,c7 by inserting after subclause 7,,ii7 the following3 7,,iii7 a digital commodity2 2 7#g7 by inserting after paragraph 7#ag7 7as so redesignated7 the following3 7#ah7 ,digital commodity 7,a7 ,in general ,the term digital commodity means a fungible digital form of personal property that can be possessed and transferred person-to-person without necessary reliance on an intermediary4 7,b7 ,inclusions ,the term digital commodity includes property commonly known as cryptocurrency or virtual currency1 such as ,bitcoin and ,ether4 7,c7 ,exclusions ,the term digital commodity does not include-- 7i7 an interest in a physical commodity2 7ii7 a security2 7iii7 a digital form of currency backed by the full faith and credit of the ,united ,states2 7iv7 except as provided in subparagraph 7,d71 an instrument regulated by the ,commission pursuant to any provision of this ,act other than section #b7;c77#b77;,f72 or 7v7 any other instrument that the ,commission determines not to be a digital commodity4 7,d7 ,exception ,the exclusion described in subparagraph 7,c77iv7 shall not apply to a commodity transaction that is subject only to ,commission antimanipulation1 antifraud1 or false reporting authority4 7#ai7 ,digital commodity broker 7,a7 ,in general ,the term digital commodity broker means a person that is engaged1 as an identifiable business1 in-- 7i7 soliciting or accepting orders on behalf of another person for a digital commodity trade2 7ii7 accepting digital commodities from another person for the purpose of entering into digital commodity trades2 7iii7 arranging digital commodity trades on behalf of another person2 or 7iv7 a similar activity1 as determined by the ,commission4 7,b7 ,exclusion ,the term digital commodity broker does not include a person solely because that person validates digital commodity transactions4 7#bj7 ,digital commodity custodian 7,a7 ,in general ,the term digital commodity custodian means a person that1 as an identifiable business1 maintains possession1 custody1 or control over digital commodities on behalf of another person4 7,b7 ,exclusions ,the term digital commodity custodian does not include-- 7i7 an insured depository institution 7as defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac772 or 7ii7 an insured credit union 7as defined in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb774 7#ba7 ,digital commodity dealer 7,a7 ,in general ,the term digital commodity dealer means a person that-- 7i7 has an identifiable business of dealing in a digital commodity as principal for its own account2 7ii7 makes a market in a digital commodity2 7iii7 holds itself out as a dealer in a digital commodity2 7iv7 has as an identifiable business of buying or selling digital commodities for conversion into other digital commodities1 currency1 or other consideration2 7v7 has as an identifiable business of accepting digital commodities from another person 7referred to in this clause as a depositor7 with an obligation to return the digital commodities1 consideration linked to the digital commodities1 or both to the depositor2 or 7vi7 engages in a similar activity1 as determined by the ,commission4 7,b7 ,exclusion ,the term digital commodity dealer does not include a person solely because that person validates digital commodity transactions4 7#bb7 ,digital commodity platform 7,a7 ,in general ,the term digital commodity platform means a person that is #a or more of the following3 7i7 ,a digital commodity broker4 7ii7 ,a digital commodity custodian4 7iii7 ,a digital commodity dealer4 7iv7 ,a digital commodity trading facility4 7,b7 ,category ,the term category1 with respect to a digital commodity platform1 means #a or more categories described in clauses 7i7 through 7iv7 of subparagraph 7,a7 of that digital commodity platform4 7#bc7 ,digital commodity trade 7,a7 ,in general ,the term digital commodity trade means a purchase or sale of a digital commodity in exchange for-- 7i7 another digital commodity2 or 7ii7 any other consideration4 7,b7 ,inclusions ,the term digital commodity trade includes-- 7i7 an offer to enter into a purchase or sale described in subparagraph 7,a72 and 7ii7 a loan of a digital commodity1 an offer to enter into a loan of a digital commodity1 or a similar activity1 as determined by the ,commission4 7,c7 ,exclusion ,except as provided in subparagraph 7,d71 the term digital commodity trade excludes a transaction regulated by the ,commission pursuant to any provision of this ,act except section #b7;c77#b77;,f74 7,d7 ,exception ,the exclusion described in subparagraph 7,c7 shall not apply to a commodity transaction that is subject only to ,commission antimanipulation1 antifraud1 or false reporting authority4 7#bd7 ,digital commodity trading facility 7,a7 ,in general ,the term digital commodity trading facility means a trading facility that facilitates the execution or trading of digital commodity trades between persons4 7,b7 ,exclusion ,the term digital commodity trading facility does not include a person solely because that person validates digital commodity transactions4 2 7#h7 in paragraph 7#dc7 7as so redesignated7-- 7,a7 in the paragraph heading1 by striking 2 member of a derivatives transaction execution facility2 7,b7 in the matter preceding subparagraph 7,a71 by striking entity or derivatives transaction execution facility1 and inserting entity12 7,c7 in subparagraph 7,a71 by striking entity and all that follows through the semicolon and inserting entity22 and 7,d7 in subparagraph 7,b71 by striking entity and all that follows through the period at the end and inserting entity42 and 7#i7 in paragraph 7#di7 7as so redesignated7-- 7,a7 by redesignating subparagraphs 7,e7 and 7,f7 as subparagraphs 7,f7 and 7,g71 respectively2 and 7,b7 by inserting after subparagraph 7,d7 the following3 7,e7 a digital commodity trading facility registered under section #e;i2 4 7b7 ,conforming amendments 7#a7 ,section #a;a of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a7 is amended-- 7,a7 in paragraph 7#bf77;,a7 7as redesignated by subsection 7a77#a771 in the matter preceding clause 7i71 by striking 7#ah77;,a7 and inserting 7#bg77;,a72 and 7,b7 in paragraph 7#bg77;,a77vii77,,iii77aa7 7as redesignated by subsection 7a77#a771 by striking 7#ag77;,a7 and inserting 7#bf77;,a74 7#b7 ,section #d7;c77#a77;,a77i77,i7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #f7;c77#a77;,a77i77,i77 is amended by striking paragraphs 7#b71 7#c71 7#d71 7#e71 and 7#g71 paragraph 7#ah77;,a77vii77,,iii71 paragraphs 7#bc71 7#bd71 7#ca71 7#cb71 7#ch71 7#ci71 7#da71 7#db71 7#df71 7#dg71 7#dh71 and 7#di7 of section #a;a and inserting paragraphs 7#b71 7#e71 7#f71 7#g71 7#i71 7#bg77;,a77vii77,,iii71 7#cb71 7#cc71 7#dj71 7#da71 7#dg71 7#dh71 7#ej71 7#ea71 7#ee71 7#ef71 7#eg71 and 7#eh7 of section #a;a4 7#c7 ,section #dq7a77#a7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #fq7a77#a77 is amended by striking #a;a7#i7 and inserting #a;a7#aa74 7#d7 ,section #ds of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #fs7 is amended-- 7,a7 in subsection 7f77#a77;,d71 by striking #a;a7#dg77;,a77v7 and inserting #a;a7#ef77;,a77v72 and 7,b7 in subsection 7h77#e77;,a77i71 in the matter preceding subclause 7,i71 by striking #a;a7#ah7 and inserting #a;a7#bg77;,a74 7#e7 ,section #dt7b77#a77;,c7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #ft7b77#a77;,c77 is amended by striking #a;a7#dg77;,a77v771 and inserting #a;a7#ef77;,a77v7714 7#f7 ,section #e of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #g7 is amended-- 7,a7 in subsection 7d77#bc71 by striking #a;a7#dg77;,a77v7 and inserting #a;a7#ef77;,a77v72 and 7,b7 in subsection 7e77#a71 by striking #a;a7#i7 and inserting #a;a7#aa74 7#g7 ,section #e;b7k77#c77;,a7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #g;a-#a7k77#c77;,a77 is amended by striking #a;a7#dg77;,a77v77 and inserting #a;a7#ef77;,a77v774 7#h7 ,section #e;c7c77#d77;,b7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #g;a-#b7;c77#d77;,b77 is amended by striking #a;a7#aj7 and inserting #a;a7#aa74 7#i7 ,section #e;h7f77#aj77;,a77iii7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #g;b-#c7;f77#aj77;,a77iii77 is amended by striking #a;a7#dg77;,a77v7 and inserting #a;a7#ef77;,a77v74 7#aj7 ,section #ba7;f77#d77;,c7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #bd;a7f77#d77;,c77 is amended by striking #a;a7#dh7 and inserting #a;a7#eg74 7#aa7 ,section #djc of the ,legal ,certainty for ,bank ,products ,act of #bjjj 7#g ,u4,s4,c4 #bg;a7 is amended-- 7,a7 in subsection 7a77#b71 by striking #a;a7#dg77;,a77v7 and inserting #a;a7#ef77;,a77v72 and 7,b7 in subsection 7b77#a71 by striking #a;a7#dg7 and inserting #a;a4 7#ab7 ,section #e7;e7 of the ,securities ,act of #aicc 7#ae ,u4,s4,c4 #gg;e7e77 is amended by striking section #a;a7#ah7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a7#ah77 and inserting section #a;a of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a74 7#ac7 ,section #c;,c7g77#c77;,a77v7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c-#c7;g77#c77;,a77v77 is amended by striking section #a;a7#aj7 of the ,commodity ,exchange ,act2 and inserting section #a;a of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a724 7#ad7 ,section #f7;g77#e77;,b77i7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;f7g77#e77;,b77i77 is amended-- 7,a7 in subclause 7,i71 by striking section #a;a7#ah77;,b77ii7 of the ,commodity ,exchange ,act and inserting subparagraph 7,b77ii7 of section #a;a7#bg7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a7#bg772 and 7,b7 in subclause 7,,ii71 by striking such section #a;a7#ah77 and inserting that section74 7#ae7 ,section #gab7;a77#h7 of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ae ,u4,s4,c4 #hcjb7;a77#h77 is amended by striking section #a;a7#dg77;,d7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a7#dg77;,d77 and inserting section #a;a7#ef77;,d7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a7#ef77;,d774 7#af7 ,section #geb7;a7 of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ae ,u4,s4,c4 #hcbe7;a77 is amended by striking section #a;a7#ci7 of the ,commodity ,exchange ,act71 and inserting section #a;a of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a7714 #c4 ,commission jurisdiction over digital commodity trades ,section #b of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #b7 is amended-- 7#a7 in subsection 7a77#a77;,a71 in the first sentence1 by striking section #ai of this ,act and inserting subsection 7c77#b77;,f7 or section #ai2 and 7#b7 in subsection 7c77#b71 by adding at the end the following3 7,f7 ,commission jurisdiction over digital commodity trades 7i7 ,in general ,except as provided in clause 7ii71 this ,act applies to1 and the ,commission shall have exclusive jurisdiction over1 any account1 agreement1 contract1 or transaction involving a digital commodity trade4 7ii7 ,exception ,nothing in this ,act applies to1 and the ,commission shall not have jurisdiction over1 any digital commodity transaction by a merchant or consumer that uses a digital commodity solely for the purchase or sale of a good or service4 7iii7 ,prohibition on certain trading practices ,sections #d;b1 #d;c1 and #f7;c7 shall apply to any digital commodity trade as if the digital commodity trade were a contract of sale of a commodity for future delivery4 4 #d4 ,digital commodity platforms ,the ,commodity ,exchange ,act is amended by inserting after section #e;h 7#g ,u4,s4,c4 #g;b-#c7 the following3 #e;i4 ,digital commodity platforms 7a7 ,registration 7#a7 ,requirement ,it shall be unlawful for any person to act as any category of digital commodity platform unless the person is registered under this section as that category of digital commodity platform4 7#b7 ,applications ,a person desiring to register as any category of digital commodity platform shall submit to the ,commission an application in such form and containing such information as the ,commission may require for the purpose of determining whether the applicant is in compliance with subsection 7b7 and the other requirements of this ,act4 7#c7 ,multiple registrations ,as appropriate to further the purposes of this ,act and avoid duplicative or unnecessary requirements1 and taking into consideration potential conflicts of interest or other risks1 the ,commission may prescribe rules or regulations permitting1 or may otherwise authorize-- 7,a7 registration by a person in more than #a category of digital commodity platform2 7,b7 a registered entity1 a swap dealer1 or a futures commission merchant registered under this ,act to register under this section in #a or more categories of digital commodity platform2 and 7,c7 exemptions or additional requirements applicable to persons with multiple registrations under this ,act4 7b7 ,core principles for digital commodity platforms 7#a7 ,compliance with core principles 7,a7 ,in general ,to be registered1 and maintain registration1 as a digital commodity platform1 the digital commodity platform shall comply with-- 7i7 the core principles described in this subsection2 and 7ii7 any requirement that the ,commission may impose by rule or regulation4 7,b7 ,reasonable discretion of digital commodity platform ,unless otherwise determined by the ,commission by rule or regulation1 a digital commodity platform described in subparagraph 7,a7 shall have reasonable discretion in establishing the manner in which the digital commodity platform complies with the core principles described in this subsection4 7#b7 ,core principles applicable to digital commodity trading facilities 7,a7 ,compliance with rules ,a digital commodity trading facility shall-- 7i7 establish and enforce compliance with any rule of the digital commodity trading facility1 including-- 7,i7 the terms and conditions of the transactions in digital commodities traded or processed on or through the digital commodity trading facility2 and 7,,ii7 any limitation on access to the digital commodity trading facility2 7ii7 establish and enforce trading1 trade processing1 and participation rules that will deter abuses and have the capacity to detect1 investigate1 and enforce those rules1 including means-- 7,i7 to provide market participants with impartial access to the market2 and 7,,ii7 to capture information that may be used in establishing whether rule violations have occurred2 and 7iii7 establish rules governing the operation of the digital commodity trading facility4 7,b7 ,digital commodity transactions not readily susceptible to manipulation ,a digital commodity trading facility shall permit trading only in transactions in digital commodities that are not readily susceptible to manipulation4 7,c7 ,monitoring of trading and trade processing 7i7 ,markets and mechanisms 7,i7 ,in general ,a digital commodity trading facility shall provide a competitive1 open1 and efficient market and mechanism for executing transactions that protects the price discovery process of trading on the digital commodity trading facility4 7,,ii7 ,centralized market ,a digital commodity trading facility shall provide a centralized market for executing transactions4 7ii7 ,protection of markets and market participants ,a digital commodity trading facility shall establish and enforce rules-- 7,i7 to protect markets and market participants from abusive practices committed by any party1 including abusive practices committed by a party acting as an agent for a participant2 and 7,,ii7 to promote fair and equitable trading on the digital commodity trading facility4 7iii7 ,procedures and monitoring ,a digital commodity trading facility shall-- 7,i7 establish and enforce rules or terms and conditions defining1 or specifications detailing-- 7aa7 trading procedures to be used in entering and executing orders traded on or through the facilities of the digital commodity trading facility2 and 7bb7 procedures for trade processing of digital commodities on or through the facilities of the digital commodity trading facility2 and 7,,ii7 monitor trading in digital commodities to prevent manipulation1 price distortion1 and disruptions of the delivery or settlement process through surveillance1 compliance1 and disciplinary practices and procedures1 including investigations1 sanctions1 and methods for conducting real-time monitoring of trading and comprehensive and accurate trade reconstructions4 7,d7 ,ability to obtain information ,a digital commodity trading facility shall-- 7i7 establish and enforce rules that will allow the digital commodity trading facility to obtain any necessary information to perform any of the functions described in this section2 7ii7 provide the information to the ,commission on request2 and 7iii7 have the capacity to carry out such international information-sharing agreements as the ,commission may require4 7,e7 ,financial integrity of transactions ,a digital commodity trading facility shall establish and enforce rules and procedures for ensuring the financial integrity of digital commodity trades entered on or through the facilities of the digital commodity trading facility4 7,f7 ,emergency authority ,a digital commodity trading facility shall adopt rules to provide for the exercise of emergency authority1 in consultation or cooperation with the ,commission1 as is necessary and appropriate1 including the authority to liquidate or transfer open positions in any digital commodity or to suspend or curtail trading in a digital commodity4 7,g7 ,timely publication of trading information 7i7 ,in general ,a digital commodity trading facility shall make public timely information on price1 trading volume1 and other trading data on digital commodities to the extent prescribed by the ,commission4 7ii7 ,capacity of digital commodity trading facility ,a digital commodity trading facility shall be required to have the capacity to electronically capture and transmit trade information with respect to transactions executed on the digital commodity trading facility4 7,h7 ,availability of general information ,a digital commodity trading facility shall make available to market authorities1 market participants1 and the public accurate information concerning-- 7i7 the terms and conditions of the contracts for transactions in digital commodities2 7ii7 the rules and mechanisms for executing digital commodity trades on or through the facilities of the digital commodity trading facility2 and 7iii7 the rules and specifications describing the operation of the electronic matching platform or trade execution facility of the digital commodity trading facility4 7,i7 ,disciplinary procedures ,a digital commodity trading facility shall establish and enforce-- 7i7 disciplinary procedures that authorize the digital commodity trading facility to discipline1 suspend1 or expel market participants that violate the rules of the digital commodity trading facility2 or 7ii7 similar methods for performing the functions described in clause 7i71 including delegation to third parties4 7,j7 ,dispute resolution ,a digital commodity trading facility shall establish and enforce rules regarding1 and provide facilities for alternative dispute resolution1 as appropriate1 for1 market participants and market intermediaries4 7#c7 ,core principles applicable to digital commodity dealers and digital commodity brokers 7,a7 ,execution ,a digital commodity dealer or digital commodity broker-- 7i7 shall establish prices fairly and objectively2 7ii7 shall disclose the basis for those prices2 and 7iii7 shall not disrupt market functioning or hinder the price discovery process4 7,b7 ,daily trading records 7i7 ,in general ,a digital commodity dealer or digital commodity broker shall keep full1 complete1 and systematic records 7including all pertinent data and memoranda7 of all transactions relating to its business of dealing or brokerage in digital commodity transactions4 7ii7 ,included communications ,a digital commodity dealer or digital commodity broker shall keep all oral and written communications provided or received concerning quotes1 solicitations1 bids1 offers1 instructions1 trading1 and prices that lead to the execution of a transaction in a digital commodity4 7,c7 ,business conduct standards ,a digital commodity dealer or digital commodity broker shall conform with such business conduct standards as may be prescribed by the ,commission by rule or regulation that relate to-- 7i7 fraud1 manipulation1 and other abusive practices involving digital commodity trades 7including digital commodity trades that are offered but not entered into72 7ii7 diligent supervision of the business of the digital commodity dealer or digital commodity broker2 and 7iii7 such other matters as the ,commission determines to be appropriate4 7,d7 ,duties ,a digital commodity dealer or digital commodity broker shall comply with the following requirements3 7i7 ,risk management procedures ,the digital commodity dealer or digital commodity broker shall establish robust and professional risk management systems adequate for managing the day-to-day business of the digital commodity dealer or digital commodity broker4 7ii7 ,disclosure of general information ,the digital commodity dealer or digital commodity broker shall disclose to the ,commission1 as applicable1 information concerning-- 7,i7 terms and conditions of its digital commodity trades2 7,,ii7 trading operations1 mechanisms1 and practices2 7,,iii7 financial integrity protections relating to transactions in digital commodity trades2 and 7,,iv7 other information relevant to its digital commodity trades4 7,e7 ,ability to obtain information ,a digital commodity dealer or digital commodity broker shall-- 7i7 establish and enforce internal systems and procedures to obtain any necessary information to perform any of the functions described in this section2 and 7ii7 provide the information described in clause 7i7 to the ,commission on request4 7#d7 ,core principles applicable to all digital commodity platforms 7,a7 ,recordkeeping and reporting ,a digital commodity platform shall-- 7i7 7,i7 maintain records of all activities relating to the business of the digital commodity platform1 including a complete audit trail1 in a form and manner acceptable to the ,commission for a period of #e years2 and 7,,ii7 keep the records described in subclause 7,i7 open to inspection by the ,commission2 7ii7 provide to the ,commission1 in a form and manner acceptable to the ,commission1 such information as the ,commission determines to be necessary or appropriate for the ,commission to perform the duties of the ,commission under this ,act2 and 7iii7 make such reports as are required by the ,commission relating to the transactions and positions of the customers of the digital commodity platform4 7,b7 ,antitrust considerations ,unless necessary or appropriate to achieve the purposes of this ,act1 a digital commodity platform shall not-- 7i7 adopt any rules or take any actions that result in any unreasonable restraint of trade2 or 7ii7 impose any material anticompetitive burden on trading or custody4 7,c7 ,conflicts of interest ,the ,commission shall require conflict of interest systems and procedures that-- 7i7 establish structural and institutional safeguards-- 7,i7 to minimize conflicts of interest that might potentially bias the judgment or supervision of a digital commodity platform and contravene the core principles of fair and equitable trading and the business conduct standards described in this ,act1 including conflicts arising out of transactions or arrangements with affiliates 7including affiliates acting as issuers1 market-makers1 or custodians72 and 7,,ii7 which may include1 as the ,commission determines to be appropriate1 information partitions and the legal separation of different categories of digital commodity platforms2 7ii7 establish a process for resolving conflicts of interest described in clause 7i72 7iii7 require disclosure by a digital commodity platform of any material incentives or conflicts of interest that the digital commodity platform is unable to resolve2 and 7iv7 address such other issues as the ,commission determines to be appropriate4 7,d7 ,financial resources 7i7 ,in general ,a digital commodity platform shall have adequate financial1 operational1 and managerial resources to discharge each responsibility of the digital commodity platform4 7ii7 ,financial resources for margin trading ,the ,commission shall require such additional financial resources as are necessary to enable a digital commodity platform to fulfill obligations of the digital commodity platform arising from margined1 leveraged1 or financed transactions4 7,e7 ,system safeguards ,a digital commodity platform shall-- 7i7 establish and maintain a program of risk analysis and oversight to identify and minimize sources of operational risk 7including cybersecurity risk71 through the development of appropriate controls and procedures1 and automated systems1 that-- 7,i7 are reliable and secure2 and 7,,ii7 have adequate scalable capacity2 7ii7 establish and maintain emergency procedures1 backup facilities1 and a plan for disaster recovery that allow for-- 7,i7 the timely recovery and resumption of operations2 and 7,,ii7 the fulfillment of the responsibilities and obligations of the digital commodity platform2 and 7iii7 periodically conduct tests to verify that the backup resources of the digital commodity platform are sufficient to ensure continued-- 7,i7 order processing and trade matching2 7,,ii7 price reporting2 7,,iii7 market surveillance2 and 7,,iv7 maintenance of a comprehensive and accurate audit trail4 7,f7 ,designation of chief compliance officer 7i7 ,in general ,a digital commodity platform shall designate an individual to serve as a chief compliance officer 7referred to in this paragraph as a chief compliance officer74 7ii7 ,duties ,a chief compliance officer shall-- 7,i7 report directly to the board or to the senior officer of the digital commodity platform2 7,,ii7 review compliance with the core principles described in this subsection2 7,,iii7 in consultation with the board of the digital commodity platform1 a body performing a function similar to that of a board1 or the senior officer of the digital commodity platform1 resolve any conflicts of interest that may arise2 7,,iv7 be responsible for establishing and administering the policies and procedures required to be established pursuant to this section2 7,v7 ensure compliance with this ,act and the rules and regulations issued under this ,act1 including rules prescribed by the ,commission pursuant to this section2 and 7,,vi7 establish procedures for the remediation of noncompliance issues found during compliance office reviews1 look backs1 internal or external audit findings1 self-reported errors1 or through validated complaints4 7iii7 ,requirements for procedures ,in establishing procedures under clause 7ii77,,vi71 a chief compliance officer shall design the procedures to establish the handling1 management response1 remediation1 retesting1 and closing of noncompliance issues4 7iv7 ,annual reports 7,i7 ,in general ,in accordance with rules prescribed by the ,commission1 a chief compliance officer shall annually prepare and sign a report that contains a description of-- 7aa7 the compliance of the digital commodity platform with this ,act2 and 7bb7 the policies and procedures1 including the code of ethics and conflict of interest policies1 of the digital commodity platform4 7,,ii7 ,requirements ,a chief compliance officer shall-- 7aa7 submit each report described in subclause 7,i7 with the appropriate financial report of the digital commodity platform that is required to be submitted to the ,commission pursuant to this section2 and 7bb7 include in the report a certification that1 under penalty of law1 the report is accurate and complete4 7,g7 ,governance2 fitness standards 7i7 ,governance arrangements ,a digital commodity platform shall establish governance arrangements that are transparent to fulfill public interest requirements4 7ii7 ,fitness standards ,a digital commodity platform shall establish and enforce appropriate fitness standards for-- 7,i7 directors2 and 7,,ii7 any entity offering affiliated services for the digital commodity platform4 7,h7 ,treatment of customer assets 7i7 ,in general ,a digital commodity platform shall hold customer property 7including digital commodities7 in a manner that minimizes the risk of loss of1 or unreasonable delay in access to1 the customer property4 7ii7 ,segregation of funds 7,i7 ,in general ,a digital commodity platform shall treat and deal with all customer property that is received by the digital commodity platform as belonging to the customer4 7,,ii7 ,commingling prohibited ,customer property described in subclause 7,i7-- 7aa7 shall be separately accounted for2 and 7bb7 shall not be commingled with the assets of the digital commodity platform4 7iii7 ,exceptions 7,i7 ,use of funds ,notwithstanding clause 7ii71 customer property described in that clause may1 for convenience1 be commingled in the same account or accounts with-- 7aa7 an insured depository institution 7as defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac772 7bb7 an insured credit union 7as defined in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb772 or 7cc7 a digital commodity platform4 7,,ii7 ,withdrawal ,notwithstanding clause 7ii71 such share of the customer property described in that clause as1 in the normal course of business1 is necessary to margin1 guarantee1 secure1 transfer1 adjust1 or settle a digital commodity transaction with a digital commodity platform1 or with any customer of a digital commodity platform1 may be withdrawn and applied to such purposes lawfully accruing in connection with the digital commodity transaction1 including the payment of commissions1 taxes1 and brokerage1 interest1 storage1 and other charges4 7,,iii7 ,commission action ,notwithstanding clause 7ii7-- 7aa7 the ,commission may adopt rules or regulations permitting the lending of digital commodities by a digital commodity platform holding those digital commodities for customers1 subject to such conditions as the ,commission may prescribe to protect customers and achieve the purposes of this ,act2 and 7bb7 in accordance with such terms and conditions as the ,commission may prescribe by rule1 regulation1 or order1 any customer property described in that clause may be commingled and deposited in customer accounts with any other money1 securities1 or property received by the digital commodity platform and required by the ,commission to be separately accounted for1 treated1 and dealt with as belonging to customers4 7iv7 ,permitted investments 7,i7 ,in general ,customer property described in clause 7ii7 in the form of money may be invested in-- 7aa7 obligations of the ,united ,states2 7bb7 obligations the principal and interest of which are fully guaranteed by the ,united ,states2 and 7cc7 any other investment that the ,commission may by rule or regulation prescribe4 7,,ii7 ,rules and conditions ,investments under subclause 7,i7 shall be made in accordance with such rules and regulations1 and subject to such conditions1 as the ,commission may prescribe4 7v7 ,prohibition ,it shall be unlawful for any person1 including a digital commodity platform or a depository institution1 that has received any customer property for deposit in a separate account or accounts in accordance with clause 7ii7 to hold1 dispose of1 or use that customer property as belonging to the depositing digital commodity platform or any person other than the customers of the digital commodity platform4 7c7 ,rules governing margined or leveraged trading ,the ,commission may make1 promulgate1 and enforce such rules governing margined1 leveraged1 or financed digital commodity trades on digital commodity platforms as are reasonably necessary to protect the public interest and promote the orderly settlement of transactions4 7d7 ,contract listings1 rules1 and rule amendments for digital commodity trading facilities 7#a7 ,in general ,subject to the requirements under this subsection1 a digital commodity trading facility may-- 7,a7 list for trading a contract for a digital commodity2 and 7,b7 approve and implement a new rule or rule amendment4 7#b7 ,certification from digital commodity trading facility ,a digital commodity trading facility that elects to carry out an activity described in subparagraph 7,a7 or 7,b7 of paragraph 7#a7 shall1 prior to carrying out that activity1 provide to the ,commission a written certification that the contract1 new rule1 or rule amendment1 as applicable1 complies with this ,act 7including regulations under this ,act74 7#c7 ,effective date of listing1 rule1 and rule amendment ,subject to paragraph 7#d71 a listing1 rule1 or rule amendment described in paragraph 7#a7 shall become effective on the date that is-- 7,a7 in the case of a listing of a contract that has not previously been listed on any digital commodity trading facility1 #cj business days after the date on which the ,commission receives the certification 7or such shorter period as determined by the ,commission by rule or regulation72 or 7,b7 in any other case1 #aj business days after the date on which the ,commission receives the certification 7or such shorter period as determined by the ,commission by rule or regulation74 7#d7 ,stay of certification 7,a7 ,in general ,the ,commission may stay a certification for a listing1 rule1 or rule amendment described in paragraph 7#a7 by notifying the digital commodity trading facility that the ,commission is staying the certification because there exists-- 7i7 a novel or complex issue that requires additional time to analyze2 7ii7 an inadequate explanation by the submitting digital commodity trading facility2 or 7iii7 a potential inconsistency with this ,act 7including regulations under this ,act74 7,b7 ,duration of stay ,a stay of certification by the ,commission under subparagraph 7,a7 shall be for a period of not more than #ij days1 beginning on the date of the notification by the ,commission under that subparagraph4 7,c7 ,effective date after stay ,a listing1 rule1 or rule amendment subject to a stay under subparagraph 7,a7 shall become effective on the expiration of the period described in subparagraph 7,b71 unless the ,commission-- 7i7 withdraws the stay prior to that time2 or 7ii7 notifies the digital commodity trading facility during such period that the ,commission objects to the proposed certification and disapproves a listing1 rule1 or rule amendment pursuant to paragraph 7#e74 7,d7 ,public comment ,the ,commission may provide a public comment period of not less than #cj days1 within the period in which a stay is in effect under subparagraph 7,b71 whenever the ,commission reviews a listing1 rule1 or rule amendment pursuant to a notification by the ,commission under subparagraph 7,a74 7#e7 ,disapproval 7,a7 ,in general ,the ,commission may disapprove a listing1 rule1 or rule amendment described in paragraph 7#a7 if the ,commission determines that the listing1 rule1 or rule amendment is inconsistent with this ,act 7including the considerations in subparagraph 7,b7 and regulations under this ,act74 7,b7 ,considerations ,in making a determination described in subparagraph 7,a7 with respect to a listing for a digital commodity1 the ,commission may consider1 among other things-- 7i7 whether the operating structure and system of the digital commodity is secure from cybersecurity threats1 including the possibility of material alterations by persons acting collectively2 7ii7 whether the functionality of the digital commodity will protect holders from operational failures2 7iii7 with respect to a digital commodity that purports to have a fixed value-- 7,i7 an identification and description of the issuer of the digital commodity2 7,,ii7 the collateral or reserves backing the digital commodity2 and 7,,iii7 the terms by which the issuer will redeem the digital commodity2 and 7iv7 whether the digital commodity and the market for the digital commodity are not readily susceptible to manipulation4 7#f7 ,prior approval 7,a7 ,in general ,a digital commodity trading facility may request that the ,commission grant prior approval to the listing of any new contract for a digital commodity4 7,b7 ,deadline ,if prior approval is requested under subparagraph 7,a71 the ,commission shall take final action on the request not later than #ij days after submission of the request1 unless the person submitting the request agrees to an extension of the time limitation established under this subparagraph4 7,c7 ,disapproval ,paragraphs 7#d7 and 7#e7 shall apply to ,commission action on a request under this paragraph4 7#g7 ,delisting2 ,revocation ,after the listing of a contract for a digital commodity has taken effect1 the ,commission may require the delisting of the contract or disapprove the listing in accordance with paragraph 7#e74 7#h7 ,disclosures 7,a7 ,in general ,the ,commission shall require a digital commodity trading facility to disclose to the public1 on a timely basis1 with respect to a listing described in paragraph 7#a77;,a7-- 7i7 the operating structure and system of the digital commodity2 and 7ii7 the trading volume and volatility of the digital commodity4 7,b7 ,format ,the ,commission shall prescribe rules and regulations for the standardization and simplification of disclosures under subparagraph 7,a7 and subsection 7f77#a77;,a71 including requiring that disclosures-- 7i7 are conspicuous2 7ii7 use plain language comprehensible to customers2 and 7iii7 succinctly explain the information that is required to be communicated to the customer4 7e7 ,product listing for digital commodity brokers and digital commodity dealers 7#a7 ,in general ,a digital commodity broker and a digital commodity dealer may only trade1 or arrange a trade1 in a contract for a digital commodity that is not readily susceptible to manipulation4 7#b7 ,disclosure1 listing1 and certification requirements ,a digital commodity broker and a digital commodity dealer may only trade1 or arrange for trading1 in digital commodities that have met the requirements of subsection 7d7 7including the listing and disclosure requirements74 7f7 ,customer protection ,the ,commission shall adopt customer protection requirements that-- 7#a7 require disclosure by a digital commodity platform to a customer 7other than another digital commodity platform registered under this section7 of-- 7,a7 information about the material risks and characteristics of any applicable digital commodity contracts2 and 7,b7 any material incentives or conflicts of interest that the digital commodity platform may have in connection with any applicable digital commodity contracts2 7#b7 establish a duty for a digital commodity platform to communicate in a fair and balanced manner based on principles of fair dealing and good faith2 7#c7 establish standards governing digital commodity platform marketing and advertising1 including testimonials and endorsements2 and 7#d7 establish such other standards and requirements as the ,commission may determine are-- 7,a7 in the public interest2 7,b7 appropriate for the protection of customers2 or 7,c7 otherwise in furtherance of the purposes of this ,act4 7g7 ,examination and publication of energy consumption in digital commodity markets 7#a7 ,in general ,the ,commission shall examine1 in collaboration with other ,federal regulatory agencies as the ,commission determines appropriate1 the energy consumption and sources of energy used in connection with the creation and transfer of the most widely traded digital commodities4 7#b7 ,report ,not later than #ahj days after the date of enactment of the ,digital ,commodities ,consumer ,protection ,act of #bjbb1 the ,commission shall submit to the ,committee on ,agriculture1 ,nutrition1 and ,forestry of the ,senate and the ,committee on ,agriculture of the ,house of ,representatives a report describing-- 7,a7 an estimate of the energy consumption and sources of energy used in connection with the creation and transfer of the most widely traded digital commodities2 and 7,b7 the methodology used by the ,commission to generate the estimate described in subparagraph 7,a74 7#c7 ,publication ,using the methodology described in paragraph 7#b77;,b71 the ,commission shall publish on the website of the ,commission1 and periodically update on a timely basis1 an estimate of the energy consumption and sources of energy used in connection with the creation and transfer of the most widely traded digital commodities4 7h7 ,prohibition on fraud1 deception1 and manipulation ,it shall be unlawful for any digital commodity platform to engage in any act1 practice1 or course of business in connection with its business as a digital commodity platform that is fraudulent1 deceptive1 or manipulative4 7i7 ,self-,regulation 7#a7 ,in general ,a digital commodity broker1 digital commodity dealer1 or digital commodity custodian shall be a member of a registered futures association1 regardless of whether such person is separately registered as a digital commodity trading facility4 7#b7 ,delegation of registration functions ,the ,commission may authorize any registered futures association to perform any portion of the registration functions with respect to digital commodity platforms1 associated persons of digital commodity brokers1 and associated persons of digital commodity dealers-- 7,a7 in accordance with rules1 notwithstanding any other provision of law1 adopted by that registered futures association and submitted to the ,commission for approval2 and 7,b7 subject to the provisions of this section applicable to registrations granted by the ,commission4 7j7 ,dual registration ,a digital commodity platform registered under this section may also be registered with the ,securities and ,exchange ,commission as an exchange1 broker1 or dealer 7as those terms are defined in section #c of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c77 or another trading platform4 7k7 ,fees for registration 7#a7 ,in general ,the ,commission shall1 in accordance with this subsection1 assess and collect fees1 which shall be used to recover the annual costs of-- 7,a7 registering digital commodity platforms2 7,b7 conducting oversight of digital commodity trades2 and 7,c7 carrying out education and outreach under subsection 7l74 7#b7 ,determination of fee rates ,in determining fee rates under paragraph 7#a71 the ,commission shall consider-- 7,a7 the volume of business of the digital commodity platform2 and 7,b7 the category of the digital commodity platform4 7#c7 ,prohibitions 7,a7 ,commission ,the ,commission shall not require a digital commodity platform to collect directly from customers a per-transaction fee for each digital commodity trade4 7,b7 ,digital commodity platforms ,a digital commodity platform shall not impose directly on customers a per-transaction fee for each digital commodity trade to pay the fees under paragraph 7#a74 7#d7 ,publication ,not later than #fj days after the date of enactment of an ,act making a regular appropriation to the ,commission for a fiscal year1 the ,commission shall publish in the ,federal ,register a notice of-- 7,a7 the fee rates determined pursuant to this subsection for that fiscal year2 and 7,b7 any estimates or projections on which those fee rates are based4 7#e7 ,records and disclosure ,in carrying out this subsection1 the ,commission shall not be required to comply with section #eec of title #e1 ,united ,states ,code4 7#f7 ,no judicial review ,a fee rate prescribed under this subsection shall not be subject to judicial review4 7#g7 ,deposit of fees ,fees collected pursuant to this subsection for any fiscal year shall be deposited and credited as offsetting collections to the account providing appropriations to the ,commission4 7#h7 ,annual adjustment ,for each fiscal year1 the ,commission shall1 by order1 determine fee rates pursuant to this subsection that are reasonably likely to produce aggregate fee collections that are equal to the annual appropriation to the ,commission by ,congress for activities relating to the registration of digital commodity platforms and the oversight of digital commodity trades4 7#i7 ,lapse of appropriation ,if1 on the first day of a fiscal year1 a regular appropriation to the ,commission has not been enacted1 the ,commission shall continue to collect 7as offsetting collections7 fees pursuant to this subsection at each of the rates in effect during the preceding fiscal year4 7#aj7 ,budget requests ,the ,commission shall itemize in each budget submitted to the ,president or the ,office of ,management and ,budget the estimated annual costs of-- 7,a7 registering digital commodity platforms2 7,b7 conducting oversight of digital commodity trades2 and 7,c7 carrying out education and outreach under subsection 7l74 7#aa7 ,limitations 7,a7 ,in general ,fees may only be assessed and imposed pursuant to this subsection on digital commodity platforms regulated by the ,commission pursuant to this section4 7,b7 ,use of fees ,fees authorized under this subsection are prohibited from funding any ,commission activity not directly related to the registration of digital commodity platforms1 the oversight of digital commodity trades1 and the education and outreach carried out under subsection 7l74 7l7 ,customer education and outreach ,the ,commission shall provide education and outreach to customers participating in digital commodity markets4 7m7 ,inspection ,the ,commission may inspect and monitor digital commodity platforms1 on an ongoing basis1 for the purpose of ensuring compliance with this ,act4 7n7 ,preemption of ,state laws 7#a7 ,in general ,the registration of a digital commodity platform1 an associated person of a digital commodity broker1 or an associated person of a digital commodity dealer under this section-- 7,a7 shall preempt any applicable registration requirements under ,state laws relating to money transmission1 virtual currency1 and commodity brokers2 and 7,b7 shall not affect the applicability of ,state antifraud laws4 7#b7 ,compliance ,beginning on the effective date of a registration of a digital commodity platform under this section1 the digital commodity platform shall not be required to comply with applicable ,state law requirements relating to money transmission1 virtual currency1 and commodity brokerage4 7o7 ,regulations ,the ,commission shall prescribe such rules and regulations as are appropriate for the implementation of this section4 4 #e4 ,additional amendments 7a7 ,retail commodity transactions ,section #b7;c77#b77;,d77ii7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #b7;c77#b77;,d77ii77 is amended-- 7#a7 in subclause 7,,iii77bb71 by striking or at the end2 7#b7 by redesignating subclauses 7,,iv7 and 7,v7 as subclauses 7,v7 and 7,,vi71 respectively2 and 7#c7 by inserting after subclause 7,,iii7 the following3 7,,iv7 a digital commodity trade2 4 7b7 ,applicability ,section #b7;i7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #b7;i77 is amended-- 7#a7 by redesignating paragraphs 7#a7 and 7#b7 as subparagraphs 7,a7 and 7,b71 respectively1 and indenting appropriately2 7#b7 in the matter preceding subparagraph 7,a7 7as so redesignated71 by striking ,the provisions and inserting the following3 7#a7 ,swaps ,the provisions 2 and 7#c7 by adding at the end the following3 7#b7 ,digital commodities ,the provisions of this ,act 7including any rule prescribed or regulation promulgated under this ,act7 relating to digital commodities shall not apply to activities outside the ,united ,states unless those activities-- 7,a7 have a reasonably foreseeable significant effect within the ,united ,states2 7,b7 involve1 for the purpose of soliciting or accepting any order for1 or otherwise dealing in1 digital commodities-- 7i7 the offering to enter into1 entering into1 execution1 or confirming the execution of digital commodities with any ,united ,states person2 or 7ii7 the conducting of any office or business anywhere in the ,united ,states 7including any territory or possession of the ,united ,states72 or 7,c7 contravene such rules or regulations as the ,commission may prescribe or promulgate as are necessary or appropriate to prevent the evasion of any provision of this ,act4 4 7c7 ,registration of associated persons 7#a7 ,in general ,section #dk of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #fk7 is amended-- 7,a7 by redesignating paragraphs 7#d7 through 7#f7 as paragraphs 7#e7 through 7#g72 7,b7 by inserting after paragraph 7#c7 the following3 7#d7 ,it shall be unlawful for any person to act as an associated person of a digital commodity broker or an associated person of a digital commodity dealer unless such person is registered with the ,commission under this ,act and such registration shall not have expired1 been suspended 7and the period of suspension has not expired71 or been revoked4 ,it shall be unlawful for a digital commodity broker or a digital commodity dealer to permit such a person to become or remain associated with the digital commodity broker or digital commodity dealer if such digital commodity broker or digital commodity dealer knew or should have known that such person was not so registered or that such registration had expired1 been suspended 7and the period of suspension has not expired71 or been revoked4 2 and 7,c7 in paragraph 7#e7 7as so redesignated71 by striking or of a commodity trading advisor and inserting of a commodity trading advisor1 of a digital commodity broker1 or of a digital commodity dealer4 7#b7 ,conforming amendment ,the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a et seq47 is amended by striking section #dk7#f7 each place it appears and inserting section #dk7#g74 7d7 ,commodity trading advisers2 commodity pool operators 7#a7 ,in general ,section #dl of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #fl7 is amended-- 7,a7 in paragraph 7#b71 by striking derivatives transaction execution facilities and inserting digital commodity trades on or subject to the rules of digital commodity trading facilities2 and 7,b7 in paragraph 7#c71 by striking derivatives transaction execution facilities and inserting digital commodity trading facilities4 7#b7 ,use of mail or other interstate commerce ,section #dm7#c77;,c7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #fm7#c77;,c77 is amended by inserting digital commodity trades1 before and any monies4 7#c7 ,registration ,section #dn7#c77;,b7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #fn7#c77;,b77 is amended by inserting or digital commodity after futures market4 7e7 ,acceptable business practices under core principles ,section #e;c7a77#a7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #g;a-#b7;a77#a77 is amended by striking and #e;b7c77#b71 and inserting 1 #e;b7c77#b71 and #e;i7b74 7f7 ,public disclosure ,section #h7;a77#a7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #ab7;a77#a77 is amended1 in the first sentence of the matter preceding subparagraph 7,a71 by inserting 1 digital commodity platforms1 after boards of trade4 7g7 ,anti-,money laundering 7#a7 ,amendment ,section #ecab7;a77#b7 of title #ca1 ,united ,states ,code1 is amended-- 7,a7 by redesignating subparagraphs 7,y7 and 7,z7 as subparagraphs 7,z7 and 7,,aa71 respectively2 and 7,b7 by inserting after subparagraph 7,x7 the following3 7,y7 a digital commodity platform 7as defined in section #a;a of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a772 4 7#b7 ,regulations 7,a7 ,proposed regulations ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary of the ,treasury1 after consultation with the ,commodity ,futures ,trading ,commission1 shall publish proposed regulations in the ,federal ,register requiring a digital commodity platform 7as defined in section #a;a of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a77 registered with the ,commodity ,futures ,trading ,commission to submit a report of any suspicious transaction under section #ecah7;g7 of title #ca1 ,united ,states ,code4 7,b7 ,final regulations ,not later than #ahj days after the date of publication of the proposed regulations under subparagraph 7,a71 the ,secretary of the ,treasury shall publish those regulations in final form4 7h7 ,registration of commodity dealers and associated persons ,section #h;a of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #ab;a7 is amended-- 7#a7 in paragraph 7#a71 by inserting digital commodity brokers1 associated persons of digital commodity brokers1 digital commodity dealers1 associated persons of digital commodity dealers1 after to register2 7#b7 in paragraph 7#b7-- 7,a7 in subparagraph 7,c7-- 7i7 in clause 7i71 by inserting digital commodity broker1 digital commodity dealer1 before futures commission merchant2 and 7ii7 in clause 7ii71 by striking contracts of and inserting a digital commodity trade or a contract of2 7,b7 in subparagraph 7,d7-- 7i7 in clause 7i71 by inserting digital commodity trade or before contract of sale2 and 7ii7 in clause 7ii71 by inserting digital commodity broker1 digital commodity dealer1 before futures commission merchant2 and 7,c7 in subparagraph 7,e77i71 by striking ,investors and inserting ,investor2 7#c7 in paragraph 7#c7-- 7,a7 in subparagraph 7,b77i71 by striking ,investors and inserting ,investor2 7,b7 in subparagraph 7,e7-- 7i7 in clause 7i71 by striking contract of sale of a commodity for future delivery or and inserting contract of sale of a commodity for future delivery1 digital commodity trade1 or2 and 7ii7 in clause 7ii71 by inserting digital commodity broker1 digital commodity dealer1 before futures commission merchant2 and 7,c7 in subparagraph 7,j7-- 7i7 by inserting a digital commodity trading facility1 before a registered entity2 and 7ii7 by striking registered entity1 association and inserting digital commodity trading facility1 registered entity1 registered futures association2 7#d7 in paragraph 7#d7-- 7,a7 by striking futures commission merchant and inserting digital commodity broker1 digital commodity dealer1 futures commission merchant12 7,b7 by inserting digital commodity subject to the rules of a digital commodity trading facility or before commodity2 and 7,c7 by inserting digital commodity trading facility or before registered entity each place it appears2 7#e7 in paragraph 7#f71 by inserting digital commodity trading facility1 digital commodity custodian1 before registered entity each place it appears2 and 7#f7 in paragraph 7#i7-- 7,a7 by inserting digital commodity trading facility or before registered entity each place it appears2 7,b7 by inserting digital commodity or before futures contract each place it appears2 and 7,c7 by inserting digital commodity or before commodity each place it appears4 7i7 ,amendments to title #aa ,title #aa1 ,united ,states ,code1 is amended-- 7#a7 in section #aja7f71 by inserting digital commodity platform1 as defined in section #a;a of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a71 after leverage transaction merchant12 and 7#b7 in section #gfa-- 7,a7 in paragraph 7#d77;,f7-- 7i7 in clause 7i71 by striking and at the end2 7ii7 in clause 7ii71 by inserting and after the semicolon2 and 7iii7 by adding at the end the following3 7iii7 with respect to a digital commodity platform1 a contract for a digital commodity trade-- 7,i7 held at a digital commodity platform2 or 7,,ii7 executed by or through a digital commodity platform2 2 7,b7 in paragraph 7#i7-- 7i7 in subparagraph 7,d71 by striking or at the end2 7ii7 in subparagraph 7,e77ii77,,ii71 by adding or after the semicolon at the end2 and 7iii7 by adding at the end the following3 7,f7 with respect to a digital commodity platform-- 7i7 entity for or with whom the digital commodity platform deals and that holds a claim against the digital commodity platform on account of a commodity contract made1 received1 acquired1 or held by or through the digital commodity platform in the ordinary course of the business of the digital commodity platform as a digital commodity platform from or for a commodity contract account of the entity2 or 7ii7 entity that holds a claim against the digital commodity platform arising out of-- 7,i7 the making1 liquidation1 or change in the value of a commodity contract of a kind specified in clause 7i7 of this subparagraph2 7,,ii7 a deposit or payment of cash1 a security1 digital commodity1 or other property with the digital commodity platform for the purpose of-- 7aa7 making or margining the commodity contract2 or 7bb7 holding in custody1 or accepting a deposit1 of property related to the making or margining of the commodity contract2 or 7,,iii7 the making or taking of delivery on the commodity contract4 2 7,c7 by redesignating paragraphs 7#aa7 through 7#ag7 as paragraphs 7#ab7 through 7#ah71 respectively2 and 7,d7 by inserting after paragraph 7#aj7 the following3 7#aa7 the terms digital commodity1 digital commodity platform1 and digital commodity trade have the meanings given those terms in section #a;a of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a72 4 #f4 ,applicability ,the amendments made by this ,act shall not apply to any person regulated under the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a et seq471 as amended by this ,act1 until the date of effectiveness of the final rule of the ,commodity ,futures ,trading ,commission requiring registration of digital commodity platforms under section #e;i of that ,act4 #g4 ,report on historically underserved customers participating in digital commodity markets ,not later than #ahj days after the date of enactment of this ,act1 the ,commodity ,futures ,trading ,commission 7referred to in this section as the ,commission7 shall-- 7#a7 examine the racial1 ethnic1 and gender demographics of customers participating in digital commodity markets2 and 7#b7 submit to the ,committee on ,agriculture1 ,nutrition1 and ,forestry of the ,senate and the ,committee on ,agriculture of the ,house of ,representatives a report-- 7,a7 describing how those demographics will inform the rules and regulations of the ,commission relating to customer protection2 7,b7 proposing ways in which the ,commission can provide outreach to historically underserved customers participating in digital commodity markets2 and 7,c7 containing recommendations relating to any other activities the ,commission determines to be necessary to provide appropriate protection1 outreach1 or other similar activities relating to historically underserved customers participating in digital commodity markets4