,,ii  #aag? ,,congress  #b;d ,session   
,s4 #ejcj  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #bi1         
#bjbb,mr4 ,hag]ty introduc$ ! foll[+    
bill2 :i* 0 read twice & ref]r$ to !    
,committee on ,bank+1 ,h\s+1 & ,urban   
,affairs  ,a ,,bill  ,to provide digital
 asset int]m$i>ies ) a safe h>bor f     
c]ta9 en=cem5t actions by ! ,securities 
& ,ex*ange ,commission1 & = o!r         
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,digital ,trad+ ,cl>ity    
,act ( #bjbb4  #b4 ,safe h>bor  7a7     
,def9itions ,9 ?is section3 7#a7        
,associat$ p]son ,! t]m associat$ p]son1
 ) respect to an int]m$i>y1 has ! mean+ 
giv5 ! t]m by any applicable            
self-regulatory organization4  7#b7     
,bank2 ex*ange2 securities laws2        
self-regulatory organization2 /atutory  
disqualification ,except z o!rwise      
expressly provid$1 ! t]ms bank1 ex*ange1
 securities laws1 self-regulatory       
organization1 & /atutory                
disqualification h ! mean+s giv5 ^? t]ms

 9 section #c7;a7 ( ! ,securities       
,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4    
#gh;c7a774  7#c7 ,brok]-deal] ,! t]m    
brok]-deal] means a p]son t is a brok]  
or a deal]1 z ^? t]ms are def9$ 9       
section #c7;a7 ( ! ,securities ,ex*ange 
,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a774  
7#d7 ,commission ,! t]m ,commission     
means ! ,securities & ,ex*ange          
,commission4  7#e7 ,digital asset ,! t]m
 digital asset means an electronically  
native asset t-- 7,a7 conf]s economic1  
propriet>y1 or access au?ority2 &  7,b7 
is record$ us+ cryptographically-secur$ 
di/ribut$ l$g] te*nology or any simil>  
analogue4  7#f7 ,int]m$i>y ,! t]m       
int]m$i>y-- 7,a7 means any c5traliz$    
plat=m1 includ+ an ex*ange1 t-- 7i7 has 
cu/om]s2 &  7ii7 makes a digital asset  
available = trad+ among multiple buy]s &
 sell]s "u a ,f$]al or ,/ate law1 rule1 
or regulation t au?orizes ! plat=m to   
provide ^? s]vices2 &  7,b7 does n      
include any individual4  7#g7 ,li/ ,!   
t]m li/1 ) respect to an asset1 means-- 

7,a7 to make ! asset available = trad+2 
&  7,b7 to effect transactions 9 !      
asset4  7#h7 ,national securities       
ex*ange ,! t]m national securities      
ex*ange means an ex*ange regi/]$ z a    
national securities ex*ange pursuant to 
section #f ( ! ,securities ,ex*ange ,act
 ( #aicd 7#ae ,u4,s4,c4 #gh;f74  7#i7   
,security ,except z o!rwise expressly   
provid$1 ! t]m security-- 7,a7 ) respect
 to an application ( ! ,securities ,act 
( #aicc 7#ae ,u4,s4,c4 #gg;a et seq471  
has ! mean+ giv5 ! t]m 9 section #b7;a7 
( t ,act 7#ae ,u4,s4,c4 #gg;b7a772 &    
7,b7 ) respect to an application ( !    
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #gh;a et seq471 has ! mean+   
giv5 ! t]m 9 section #c7;a7 ( t ,act    
7#ae ,u4,s4,c4 #gh;c7a774  7b7 ,safe    
h>bor  7#a7 ,9 g5]al ,any digital asset 
) respect to :i* a det]m9ation has n be5
 made "u subsection 7d71 & t is li/$    
?r\gh an int]m$i>y t has satisfi$ !     
requirem5ts describ$ 9 subsection 7c71  
%all n be consid]$ to be a security4    

7#b7 ,application ,p>agraph 7#a7 %all   
apply to all activities ( an int]m$i>y t
 li/s a digital asset t satisfies !     
conditions ( t p>agraph1 includ+ ! li/+ 
( t digital asset ?r\gh ! int]m$i>y4    
7c7 ,requirem5ts ,! requirem5ts describ$
 9 ?is subsection ) respect to an       
int]m$i>y are z foll[s3 7#a7 ,!         
int]m$i>y %all e/abli% a process = li/+ 
digital assets ?r\gh ! int]m$i>y1 :i*   
%all be reasonably design$ to p]mit !   
int]m$i>y to det]m9e :e!r ! digital     
asset is a security4  7#b7 ,! process   
e/abli%$ "u p>agraph 7#a7 %all include  
writt5 policies & proc$ures to conduct &
 docum5t an accurate classification ( ! 
applicable digital asset = ! purposes ( 
! securities laws1 :i* %all be support$ 
by mat]ials t include legal analysis    
p]=m$ by attorneys ) exp]tise 9 !       
securities laws1 :i* %all take into     
consid]ation-- 7,a7 relevant ,commission
 rules1 en=cem5t actions1 no-action     
lett]s1 & exemptive ord]s & o!r relevant
 guidance provid$ by ! ,commission or ! 

/aff ( ! ,commission2  7,b7 relevant    
guidance f1 or =mal action tak5 by1 o!r 
,f$]al ag5cies1 includ+ ! ,commodity    
,futures ,trad+ ,commission2 &  7,c7    
relevant case law4  7#c7 ,! int]m$i>y1 &
 any associat$ p]son ) respect to !     
int]m$i>y1 %all cons5t to s]vice (      
process = any civil action br\ght by1 or
 any proce$+ be=e1 ! ,commission or a   
self-regulatory organization ( :i* !    
int]m$i>y is a memb]4  7#d7 ,!          
int]m$i>y1 & ea* associat$ p]son to :i* 
p>agraph 7#c7 applies1 %all ma9ta9 a    
writt5 record ( ! cons5t provid$ "u t   
p>agraph1 :i* %all be made available to 
! ,commission & any applicable          
self-regulatory organization1 ^u reque/4
  7#e7 ,! int]m$i>y %all-- 7,a7 det]m9e 
& confirm t nei!r ! int]m$i>y nor any   
associat$ p]son ) respect to ! int]m$i>y
 is subject to a /atutory               
disqualification1 :i* may be made on a  
good fai? basis pursuant to a           
que/ionnaire complet$ by ^? associat$   
p]sons2 &  7,b7 ma9ta9 a writt5 record (

 ! det]m9ations & confirmations made "u 
subp>agraph 7,a71 includ+ any           
que/ionnaires describ$ 9 t subp>agraph1 
:i* %all be made available to !         
,commission & any applicable            
self-regulatory organization1 ^u reque/4
  7#f7 7,a7 ,! int]m$i>y %all e/abli%1  
ma9ta91 & en=ce writt5 policies1        
proc$ures1 & controls1 consi/5t )       
indu/ry be/ practices & guidance ( !    
,commission1 t are reasonably design$ to
 demon/rate effective control ) respect 
to ! applicable digital asset & to      
protect aga9/ !ft1 loss1 & accid5tal use
 ( ! private keys1 or a %>d ( a private 
key1 t ! int]m$i>y controls1 includ+ )  
respect to-- 7i7 onbo>d+ ! digital asset
 & associat+ ! digital asset ) a private
 key1 or a %>d ( a private key1 9       
possession or "u control ( ! int]m$i>y2 
7ii7 sy/ems us$ to create1 /ore1 or use 
^? private keys & %>ds ( ^? private     
keys2  7iii7 ! g5]ation (               
cryptographically /rong private keys &  
%>ds ( private keys2 &  7iv7 creat+     

backup keys & %>ds ( private keys4  7,b7
 ,)\t limitation1 ! requirem5t "u       
subp>agraph 7,a7 may be satisfi$ ?r\gh--
 7i7 a propriet>y self-cu/ody sy/em2    
7ii7 a self-cu/ody v5dor t provides     
self-cu/ody s]vices1 su* z key g5]ation 
& recov]y1 if ! sy/ems ( t v5dor meet or
 exce$ ! reasonably design$ security    
requirem5ts ( ! int]m$i>y2 or  7iii7 a  
cu/odian1 su* z a bank1 t ! ,commission 
has det]m9$ is a satisfactory control   
location4  7#g7 ,! int]m$i>y %all-- 7,a7
 adopt cu/om] protection measures1      
includ+-- 7i7 9 ord] to id5tify         
pot5tially manipulative or fraudul5t    
conduct1 by e/abli%+1 ma9ta9+1 & en=c+  
writt5 policies1 proc$ures1 & controls t
 are reasonably design$ to fulfill all  
applicable obligations ( ! int]m$i>y    
"u-- 7,i7 sub*apt] ,,ii ( *apt] #ec (   
title #ca1 ,unit$ ,/ates ,code2 &       
7,,ii7 ! ,int]national ,money ,laund]+  
,abatem5t & ,f9ancial ,anti-,t]rorism   
,act ( #bjja 7title ,,iii ( ,public ,law
 #ajg-ef7 & ! am5dm5ts made by t ,act2 &

  7ii7 by creat+ & keep+ records 9      
accordance ) ! obligations ( ! int]m$i>y
 = a p]iod ( n less ?an #c ye>s1 ! fir/ 
#b ye>s ( :i* %all be 9 an easily       
accessible place2 &  7,b7 make all      
records creat$ & kept "u subp>agraph    
7,a7 available to ! ,commission & any   
applicable self-regulatory organization1
 ^u reque/4  7#h7 ,! int]m$i>y %all     
disclose on ! website ( ! int]m$i>y !   
risks associat$ ) trad+ 9 ! applicable  
digital asset1 includ+ t ! protection   
provid$ pursuant to ! ,securities       
,inve/or ,protection ,act ( #aigj 7#ae  
,u4,s4,c4 #gh;aaa et seq47-- 7,a7 does n
 apply to digital assets t are n        
securities1 z def9$ 9 section #af ( t   
,act 7#ae ,u4,s4,c4 #ghlll72 &  7,b7 may
 n apply to all digital assets t are    
securities4  7#i7 ,! int]m$i>y %all ent]
 into a writt5 agreem5t ) a bank or     
regi/]$ brok]-deal] = ! purposes ( a    
compliance p]iod describ$ 9 subsection  
7e71 :i* %all provide t-- 7,a7 beg9n+ n 
lat] ?an #ahj days aft] ! date on :i* t 

compliance p]iod beg9s1 & until !       
int]m$i>y is regi/]$ z describ$ 9       
p>agraph 7#aj77;,b71 t bank or          
brok]-deal] %all facilitate transactions
 9 t digital asset 9 a mann] t is       
consi/5t ) ! obligations ( ! bank or    
brok]-deal] "u ! ,securities ,ex*ange   
,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et    
seq471 :i* %all include-- 7i7 effect+   
transactions 9 t digital asset2  7ii7   
issu+ requir$ confirmations & /atem5ts  
to cu/om]s relat+ to ! transactions     
describ$ 9 clause 7i72  7iii7 ma9ta9+   
requir$ books & records relat+ to !     
transactions describ$ 9 clause 7i72     
7iv7 ensur+ t ! brok]-deal] rema9s      
compliant ) ! requirem5ts "u section    
#bdj4ae;c#c-a ( title #ag1 ,code (      
,f$]al ,regulations1 or any successor   
regulation1 ) respect to ! transactions 
describ$ 9 clause 7i71 includ+ t !      
brok]-deal] %all be subject to a        
#bej1jjj net capital requirem5t "u su*  
section #bdj4ae;c#c-a1 9 addition to any
 o!r capital requirem5ts t ! ,commission

 or any applicable self-regulatory      
organization may det]m9e to be          
appropriate to protect inve/ors2 &  7v7 
9 a mann] t complies )1 or is exempt f1 
! requirem5ts "u section #bdj4ae;c#c-c (
 title #ag1 ,code ( ,f$]al ,regulations1
 or any successor regulation1 receiv+1  
deliv]+1 & safegu>d+ funds & securities 
9 connection ) ! transactions describ$ 9
 clause 7i72  7,b7 ! int]m$i>y %all     
notify cu/om]s ( ! int]m$i>y t1 dur+ !  
p]iod beg9n+ on ! date describ$ 9       
subp>agraph 7,a7 & end+ on ! date on :i*
 t compliance p]iod ends1 t bank or     
brok]-deal] w effect transactions ( t   
digital asset1 z describ$ 9 subp>agraph 
7,a77i72 &  7,c7 )9 a reasonable        
timeframe1 & n lat] ?an #ahj days aft] !
 date on :i* t compliance p]iod ends1 ! 
int]m$i>y %all transf] op]ations t      
support effect+ transactions 9 t digital
 asset to t bank or brok]-deal]1 unless 
t int]m$i>y is a bank or has regi/]$ z a
 brok]-deal]4  7#aj7 ,! int]m$i>y %all  
c]tify t1 if ! applicable digital asset 

is det]m9$ "u subsection 7d7 to be a    
security1 aft] ! end ( any compliance   
p]iod describ$ 9 subsection 7e71 if     
applicable1 ! int]m$i>y %all-- 7,a7 /op 
li/+ ! digital asset2 or  7,b7 if !     
digital asset is regi/]$ "u section #e (
 ! ,securities ,act ( #aicc 7#ae        
,u4,s4,c4 #gg;e71 or o!rwise qualifies =
 an exemption f su* regi/ration1 & !    
int]m$i>y wi%es to li/ ! digital asset  
?r\gh ! int]m$i>y1 regi/] z-- 7i7 a     
brok]-deal]2 or  7ii7 a national        
securities ex*ange4  7d7 ,commission or 
c\rt det]m9ation  7#a7 ,9 g5]al  7,a7   
,det]m9ation ,if ! ,commission 7?r\gh a 
/atem5t1 =mal rulemak+1 or en=cem5t     
action1 & )\t objection f ! ,commodity  
,futures ,trad+ ,commission71 or a c\rt 
( ! ,unit$ ,/ates 9 a f9al judgm5t1     
det]m9es t a digital asset is a         
security1 ! ,division ( ,exam9ations ( !
 ,commission %all reque/ in=mation f any
 int]m$i>y li/+ ! digital asset to      
det]m9e if ! int]m$i>y satisfies !      
requirem5ts "u subsection 7c74  7,b7    

,reque/ by int]m$i>y ,an int]m$i>y may  
submit to ! ,commission a reque/ = !    
,commission to make a det]m9ation "u    
subp>agraph 7,a74  7#b7 ,entry into     
compliance p]iod ,if1 aft] a reque/ =   
in=mation "u p>agraph 7#a71 ! ,division 
( ,exam9ations ( ! ,commission det]m9es 
t an int]m$i>y has satisfi$ !           
requirem5ts "u subsection 7c7 ) respect 
to a digital asset1 ! int]m$i>y &       
digital asset %all ent] ! compliance    
p]iod describ$ 9 subsection 7e74  7#c7  
,failure to comply ,if1 aft] a reque/ = 
in=mation "u p>agraph 7#a71 ! ,division 
( ,exam9ations ( ! ,commission det]m9es 
t an int]m$i>y has n satisfi$ !         
requirem5ts "u subsection 7c7 ) respect 
to a digital asset-- 7,a7 ! digital     
asset %all be consid]$ to be a security 
) respect to t int]m$i>y2 &  7,b7 !     
int]m$i>y %all be subject to all legal  
requirem5ts ) respect to ! activities ( 
! int]m$i>y ) respect to ! digital asset
 z a result ( ! application (           
subp>agraph 7,a74  7e7 ,compliance p]iod

  7#a7 ,9 g5]al ,) respect to an        
int]m$i>y & a digital asset describ$ 9  
subsection 7d77#b71 ! foll[+ %all apply3
 7,a7 ,dur+ ! #b-ye> p]iod beg9n+ on !  
date on :i* ! det]m9ation describ$ 9    
subsection 7d77#a7 is made1 ! foll[+    
%all apply3 7i7 ,! int]m$i>y %all n be  
subject to an en=cem5t action by !      
,commission1 or any o!r cause ( action1 
= a violation ( section #e or #ag ( !   
,securities ,act ( #aicc 7#ae ,u4,s4,c4 
#gg;e1 #ggq71 or ( section #aj7;b7 ( !  
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #gh;j7b771 solely ) respect to
 li/+ t digital asset4  7ii7 ,!         
int]m$i>y %all n be subject to any      
en=cem5t action by ! ,commission =      
failure to regi/] z a brok]-deal] or z a
 national securities ex*ange 7or = any  
associat$ requirem5ts ) respect to any  
su* regi/rant7 9 connection ) !         
activities ( ! int]m$i>y ) respect to t 
digital asset4  7iii7 ,9 ! case ( a     
det]m9ation made by ! ,commission "u    
subsection 7d77#a71 ! int]m$i>y may seek

 decl>atory relief 9 an appropriate c\rt
 ( ! ,unit$ ,/ates /at+ t ! digital     
asset is n a security1 not)/&+ t        
det]m9ation by ! ,commission4  7iv7 ,)  
respect to an action br\ght "u clause   
7iii71 ! c\rt may1 9 ! discretion ( !   
c\rt1 p]mit ! int]m$i>y to cont9ue to   
li/ ! digital asset dur+ ! p5d5cy ( !   
action4  7,b7 ,beg9n+ on ! date t is    
#ahj days aft] ! date on :i* ! #b-ye>   
p]iod describ$ 9 subp>agraph 7,a7 beg9s1
 ! bank or brok]-deal] describ$ 9       
subsection 7c77#i7 %all facilitate all  
transactions ( ! int]m$i>y ) respect to 
! relevant digital asset1 z describ$ 9  
subsection 7c77#i77;,a71 until ! date on
 :i* ! int]m$i>y is regi/]$ z describ$ 9
 subsection 7c77#aj77;,b74  7#b7 ,end ( 
compliance p]iod ,aft] ! end ( ! #b-ye> 
p]iod describ$ 9 p>agraph 7#a77;,a71 any
 brok]-deal] or ex*ange t li/s !        
applicable digital asset %all /op li/+ t
 digital asset1 if-- 7,a7 ! digital     
asset-- 7i7 is n regi/]$ "u section #e (
 ! ,securities ,act ( #aicc 7#ae        

,u4,s4,c4 #gg;e72 or  7ii7 does n       
o!rwise qualify = an exemption f        
regi/ration "u section #e ( !           
,securities ,act ( #aicc 7#ae ,u4,s4,c4 
#gg;e72 or  7,b7 an appropriate c\rt ( !
 ,unit$ ,/ates has det]m9$ 9 an action  
describ$ 9 p>agraph 7#a77;,a77iii7 t !  
digital asset is a security4  7f7       
,retroactive effect ,) respect to a     
digital asset t ! ,commission has       
det]m9$ is a security1 if ! ,commission 
subsequ5tly det]m9es t ! digital asset  
is n a security1 ! applicable int]m$i>y 
%all n be subject to any en=cem5t action
 by ! ,commission1 or any o!r cause (   
action1 = a violation ( section #e or   
#ag ( ! ,securities ,act ( #aicc 7#ae   
,u4,s4,c4 #gg;e1 #ggq71 or ( section    
#aj7;b7 ( ! ,securities ,ex*ange ,act ( 
#aicd 7#ae ,u4,s4,c4 #gh;j7b771 solely )
 respect to li/+ t digital asset4