,,ii #aag? ,,congress #b;d ,session ,s4 #ebhf ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,decemb] #ae1 #bjbb,ms4 ,lummis introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ,a ,,bill ,to provide = ! /r5g!n+ ( ! sup]vision ( digital asset m>kets by self-regulatory organizations1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,responsible ,self-,regulation ,act ( #bjbb4 #b4 ,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 ,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 ,appropriate commission ,! t]m appropriate commission means ! ,commodity ,futures ,trad+ ,commission or ! ,securities & ,ex*ange ,commission1 or bo?1 z applicable1 bas$ on ! commission t has /atutory jurisdiction ov] a digital asset int]m$i>y & acts z ! prim>y regi/ration or lic5s+ au?ority1 consi/5t ) p>agraph 7#d74 7#c7 ,digital asset ,! t]m digital asset-- 7,a7 means a natively electronic asset t-- 7i7 conf]s economic1 propriet>y1 or access rights or p[]s2 & 7ii7 is record$ us+ cryptographically secur$ di/ribut$ l$g] te*nology1 or any simil> analogue2 & 7,b7 includes-- 7i7 virtual curr5cy & ancill>y assets2 7ii7 paym5t /ableco9s2 & 7iii7 any o!r security or commodity t meets ! requirem5ts ( subp>agraph 7,a74 7#d7 ,digital asset int]m$i>y ,! t]m digital asset int]m$i>y-- 7,a7 means-- 7i7 a p]son t-- 7,i7 holds a lic5se1 regi/ration1 or o!r simil> au?orization1 z specifi$ 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;c72 & 7,,ii7 may conduct m>ket activities relat+ 9 digital assets2 or 7ii7 a p]son t 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 t holds a lic5se1 regi/ration1 or o!r simil> au?orization "u ,/ate or ,f$]al law & issues a paym5t /ableco92 & 7ii7 a p]son t is requir$ 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#e7 ,regi/]$ digital asset association ,! t]m regi/]$ digital asset association means an organization jo9tly regi/]$ by ! ,securities & ,ex*ange ,commission & ,commodity ,futures ,trad+ ,commission "u section #ihjb = ! sup]vision ( digital asset int]m$i>ies4 7#f7 ,security ,! t]m security has ! mean+ giv5 ! t]m 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a774 7#g7 ,virtual curr5cy ,! t]m virtual curr5cy-- 7,a7 means a digital asset t-- 7i7 is us$ 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 f1 or is n back$ by1 an und]ly+ f9ancial asset 7except o!r digital assets72 & 7,b7 includes a digital asset1 consi/5t ) subp>agraph 7,a71 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 comput] code deploy$ to a di/ribut$ l$g] te*nology network t executes an in/ruction bas$ on ! occurr5ce or non-occurr5ce ( a specifi$ condition1 or any simil> analogue4 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 #c4 ,regi/]$ digital asset associations 7a7 ,9 g5]al ,*apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #b1 is am5d$ by add+ at ! end ! foll[+3 #ihjb4 ,regi/]$ digital asset associations 7a7 ,def9itions ,9 ?is section3 7#a7 ,nonmemb] pr(essional ,! t]m nonmemb] pr(essional means any p]son t-- 7,a7 is a digital asset int]m$i>y2 & 7,b7 is a n a memb] ( a regi/]$ digital asset association or affiliat$ organization4 7#b7 ,regi/ration in=mation ,! t]m regi/ration in=mation means ! in=mation report$ 9 connection ) ! lic5s+1 regi/ration1 or o!r au?orization ( digital asset int]m$i>ies & _! associat$ p]sons1 includ+-- 7,a7 discipl9>y actions1 regulatory1 judicial1 & arbitration proce$+s1 & o!r in=mation requir$ by law or digital asset association rule2 & 7,b7 ! s\rce & /atus ( ! in=mation describ$ 9 subp>agraph 7,a74 7b7 ,regi/ration2 application ,an association ( digital asset int]m$i>ies may be regi/]$ z a digital asset association1 "u ! t]ms & conditions provid$ 9 ?is section1 & 9 accordance ) ! provisions ( ?is section & section #ihjc1 by jo9tly fil+ ) ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission an application = regi/ration1 9 su* =m z ! commissions may require1 conta9+ ! rules ( ! association & su* o!r in=mation & docum5ts t may be prescrib$ z necess>y or appropriate 9 ! public int]e/ or = cu/om] protection4 7c7 ,det]m9ations by ,commissions requisite to regi/ration ,an association ( digital asset int]m$i>ies may n be regi/]$ z a regi/]$ digital asset association "u subsection 7b7 unless a majority ( ! memb]s ( ea* ( ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission1 vot+ sep>ately1 det]m9e t-- 7#a7 by reason ( ! numb] & ! scope ( ! transactions ( ! association1 ! association w be able to c>ry out ! purposes ( ?is section2 7#b7 ! association is s organiz$1 & has ! capacity1 to-- 7,a7 be able to c>ry out ! purposes ( ?is section & o!r applicable ,/ate & ,f$]al laws2 & 7,b7 subject to any rule or ord] ( ! appropriate commission1 en=ce compliance by memb]s ( ! association 7& p]sons associat$ ) ^? memb]s7 ) ! provisions ( applicable law1 ! rules "u ^? provisions1 & ! rules ( ! association2 7#c7 ! rules ( ! association provide t any digital asset int]m$i>y may become a memb] ( ! association & any p]son may become associat$ ) a memb] ( ! association2 7#d7 ! rules ( ! association ensure a fair repres5tation ( ! memb]s ( ! association1 includ+ em]g+ gr[? companies 7z def9$ 9 section #b7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a7771 9 ! selection ( ! directors ( ! association & adm9i/ration ( ! affairs ( ! association2 7#e7 ! rules ( ! association provide = ! equitable allocation ( reasonable dues1 fees1 & o!r *>ges among memb]s ( ! association & o!r p]sons us+ any facility or sy/em t ! association op]ates or controls2 7#f7 ! rules ( ! association-- 7,a7 are design$ to-- 7i7 prev5t fraudul5t & manipulative acts & practices 9 ord] to promote j & equitable pr9ciples ( trade2 7ii7 fo/] coop]ation & coord9ation ) p]sons engag$ 9 regulat+1 cle>+1 settl+1 process+ in=mation ) respect to1 & facilitat+ transactions 9 digital assets2 7iii7 remove imp$im5ts to1 & p]fect ! me*anism (1 a free & op5 m>ket2 & 7iv7 protect cu/om]s & ! public int]e/2 & 7,b7 are n design$ to-- 7i7 p]mit unfair discrim9ation betwe5 cu/om]s & digital asset int]m$i>ies2 7ii7 fix m9imum pr(its2 7iii7 impose any s*$ule or fix rates ( commissions1 all[ances1 disc\nts1 or o!r fees to be *>g$ by ! memb]s ( ! association2 or 7iv7 regulate by virtue ( any au?ority conf]r$ by law matt]s n relat$ to ! purposes ( ?is section or ! adm9i/ration ( ! association2 7#g7 ! rules ( ! association provide t1 subject to any rule or ord] ( ! appropriate commission1 ! memb]s ( ! association 7& p]sons associat$ ) ^? memb]s7 %all be appropriately discipl9$ = a violation ( any provision ( applicable law1 ! rules "u su* a provision1 or ! rules ( ! association by expulsion1 susp5sion1 limitation ( activities1 functions1 & op]ations1 f9e1 c5sure1 a susp5sion or b> f be+ associat$ ) a memb]1 or any o!r fitt+ sanction2 7#h7 ! rules ( ! association are consi/5t ) ! provisions ( subsection 7h7 &1 9 g5]al1 provide a fair proc$ure =-- 7,a7 ! discipl9+ ( memb]s & p]sons associat$ ) memb]s2 7,b7 ! d5ial ( memb]%ip to any p]son seek+ memb]%ip 9 ! association2 7,c7 ! b>r+ ( any p]son f becom+ associat$ ) a memb] ( ! association2 & 7,d7 ! prohibition or limitation by ! association ( any p]son ) respect to access to s]vices (f]$ by ! association or a memb] ( ! association2 7#i7 ! rules ( ! association d n impose any burd5 on competition n necess>y or appropriate 9 fur!rance ( ! purposes ( ?is section2 7#aj7 ! requirem5ts ( subsection 7d71 z applicable1 are satisfi$2 & 7#aa7 ! rules ( ! association include provisions gov]n+ ! =m & cont5t ( quotations relat+ to digital assets1 :i* %all be design$ to-- 7,a7 produce fair & in=mative quotations2 7,b7 prev5t fictiti\s or mislead+ quotations2 & 7,c7 promote ord]ly proc$ures = collect+1 di/ribut+1 & publi%+ quotations4 7d7 ,rules2 provision = regi/ration ( affiliat$ organization 7#a7 ,9 g5]al ,! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission may p]mit or require ! rules ( an association apply+ = regi/ration "u subsection 7b7 to provide = ! admission ( an organization regi/]$ z an affiliat$ organization pursuant to subsection 7e71 to p>ticipate 9 ! applicant association z an affiliate ( ! applicant association1 "u t]ms p]mitt+ p[]s & responsibilities to ! affiliate1 & "u su* o!r appropriate t]ms & conditions1 z may be provid$ by ! rules ( ! applicant association1 if ^? rules appe> to ! commissions jo9tly to be necess>y or appropriate 9 ! public int]e/ or = cu/om] protection & to c>ry out ! purposes ( ?is section4 7#b7 ,duties & p[]s ( ! commissions ,! duties & p[]s ( ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission ) respect to any association or affiliate organization %all 9 no way be limit$ by reason ( any su* affiliation4 7e7 ,regi/ration z affiliat$ organization2 pr]equisites2 association rules 7#a7 ,9 g5]al ,an applicant organization %all n be regi/]$ z an affiliat$ organization1 unless-- 7,a7 ! organization1 not)/&+ t ! organization does n satisfy ! requirem5ts "u subsection 7c77#a71 w1 ^u ! regi/ration ( ! organization "u ?is subsection1 be admitt$ to affiliation ) an organization regi/]$ z a digital asset association pursuant to subsection 7c71 9 ! mann] & "u ! t]ms & conditions provid$ by ! rules ( ! regi/]$ digital asset association 9 accordance ) subsection 7d72 & 7,b7 ! organization & ! rules ( ! organization satisfy ! requirem5ts "u p>agraphs 7#b7 ?r\gh 7#aa7 ( subsection 7c74 7#b7 ,exception ,any re/rictions ^u memb]%ip ( an applicant organization %all n be less /r+5t ?an 9 ! case ( ! regi/]$ digital asset association ) :i* ! organization is to be affiliat$4 7f7 ,deal+s ) nonmemb] pr(essionals 7#a7 ,9 g5]al ,! rules ( a digital asset association may provide t no memb] ( ! association may deal ) any nonmemb] pr(essional except at ! same prices1 = ! same commissions or fees1 & on ! same t]ms & conditions ! memb] accords to ! g5]al public4 7#b7 ,rule ( con/ruction ,no?+ 9 ?is subsection may be con/ru$ to prev5t any memb] ( a regi/]$ digital asset association f grant+ to any o!r memb] ( any o!r regi/]$ digital asset association any disc\nt1 all[ance1 commission1 or special t]ms 9 connection ) a digital asset transaction4 7g7 ,d5ial ( memb]%ip 7#a7 ,9 g5]al ,memb]%ip 9 a regi/]$ digital asset association "u ?is section %all be limit$ to digital asset int]m$i>ies4 7#b7 ,d5ial = public int]e/ or consum] protection 7,a7 ,9 g5]al ,a regi/]$ digital asset association may1 & ! appropriate commission1 by ord]1 may direct su* an association to1 z necess>y or appropriate 9 ! public int]e/ or = cu/om] protection1 d5y memb]%ip to any p]son1 & b> f becom+ associat$ ) a memb] any p]son1 t is subject to a /atutory disqualification )9 ! laws "u ! jurisdiction ( t commission4 7,b7 ,notice ,a regi/]$ digital asset association %all file notice ) ! appropriate commission1 9 su* =m & conta9+ su* in=mation z ! appropriate commission %all require1 n less ?an #cj days be=e admitt+ any p]son to memb]%ip or p]mitt+ any p]son to become associat$ ) a memb]1 if ! association knew1 or 9 ! ex]cise ( reasonable c>e %\ld h kn[n1 t su* p]son 0 subject to a /atutory disqualification4 7#c7 ,proc$ure 7,a7 ,9 g5]al ,a regi/]$ digital asset association may-- 7i7 d5y memb]%ip to1 or condition ! memb]%ip (1 a digital asset int]m$i>y1 if-- 7,i7 ! int]m$i>y does n meet su* /&>ds ( f9ancial responsibility or op]ational capability1 or su* int]m$i>y or any individual associat$ ) ! int]m$i>y does n meet su* /&>ds ( tra9+1 exp]i5ce1 & compet5ce1 z are prescrib$ by ! rules ( ! association2 or 7,,ii7 ! int]m$i>y or p]son associat$ ) ! int]m$i>y has engag$1 & !re is a reasonable likelihood ! int]m$i>y or p]son w aga9 engage1 9 acts or practices inconsi/5t ) j & equitable pr9ciples ( trade2 & 7ii7 exam9e & v]ify ! qualifications ( an applicant to become a memb] & ! individuals associat$ ) ! applicant 9 accordance ) proc$ures e/abli%$ by ! rules ( ! association4 7,b7 ,association ,a regi/]$ digital asset association may-- 7i7 b> an individual f becom+ associat$ ) a memb]1 or condition ! association ( an individual ) a memb]1 if t individual-- 7,i7 does n meet su* /&>ds ( tra9+1 exp]i5ce1 & compet5ce z are prescrib$ by ! rules ( ! association2 or 7,,ii7 has engag$1 & !re is a reasonable likelihood ! individual w aga9 engage1 9 acts or practices inconsi/5t ) j & equitable pr9ciples ( trade2 7ii7 exam9e & v]ify ! qualifications ( an applicant to become a p]son associat$ ) a memb] 9 accordance ) proc$ures e/abli%$ by ! rules ( ! association2 & 7iii7 require an individual associat$ ) a memb]1 or any class ( su* individuals1 to be regi/]$ ) ! association 9 accordance ) proc$ures s e/abli%$4 7,c7 ,b> on association ,a regi/]$ digital asset association may b> any p]son f becom+ associat$ ) a memb] if t p]son does n agree-- 7i7 to supply ! association ) su* in=mation ) respect to ! relation%ip & deal+s ( ! p]son ) ! memb] z may be specifi$ 9 ! rules ( ! association2 & 7ii7 to p]mit exam9ation ( ! records ( ! p]son to v]ify ! accuracy ( any in=mation suppli$ by ! p]son "u clause 7i74 7#d7 ,d5ial = type ( bus9ess 7,a7 ,9 g5]al ,subject to subp>agraph 7,b71 a regi/]$ digital asset association may d5y memb]%ip to a digital asset int]m$i>y n engag$ 9 a type ( bus9ess 9 :i* ! rules ( ! association require memb]s to be engag$4 7,b7 ,condition ,no digital asset association may d5y memb]%ip to a digital asset int]m$i>y by reason ( ! am\nt ( su* type ( bus9ess done by su* int]m$i>y or ! o!r types ( bus9ess 9 :i* ! int]m$i>y is engag$4 7h7 ,discipl9e ( regi/]$ digital asset association memb]s & p]sons associat$ ) memb]s2 summ>y proce$+s 7#a7 ,discipl9e 7,a7 ,notification ,9 any proce$+ by a regi/]$ digital asset association to det]m9e :e!r a memb]1 or a p]son associat$ ) a memb]1 %\ld be discipl9$ 7o!r ?an a summ>y proce$+ pursuant to p>agraph 7#c771 ! association %all br+ specific *>ges1 notify su* memb] or p]son ( 7& give ! p]son an opportunity to def5d aga9/7 ^? *>ges1 & keep a record4 7,b7 ,/atem5t ,a det]m9ation by a regi/]$ digital asset association to impose discipl9e 9 a proce$+ "u subp>agraph 7,a7 %all be support$ by a /atem5t sett+ =?-- 7i7 any act or practice 9 :i* ! memb]1 or p]son associat$ ) a memb]1 has be5 f\nd to h engag$1 or t su* memb] or p]son has be5 f\nd to h omitt$2 7ii7 ! specific provision ( law1 ! rules "u su* a provision1 or ! rules ( ! association t an act or practice describ$ 9 clause 7i71 or omission to act1 is *>g$ ) violat+2 & 7iii7 ! sanction impos$ & a ju/ification = ! sanction4 7#b7 ,d5ial ( memb]%ip or s]vices 7,a7 ,notification ,9 any proce$+ by a regi/]$ digital asset association to det]m9e :e!r a p]son %all be d5i$ memb]%ip1 b>r$ f becom+ associat$ ) a memb]1 or prohibit$ or limit$ ) respect to access to s]vices (f]$ by ! association or a memb] ( ! association 7o!r ?an a summ>y proce$+ pursuant to p>agraph 7#c771 ! association %all-- 7i7 notify t p]son & give ! p]son an opportunity to be he>d2 7ii7 provide ! p]son ! specific gr\nds = d5ial1 b>1 or prohibition or limitation "u consid]ation2 & 7iii7 ma9ta9 a record4 7,b7 ,/atem5t ,a det]m9ation by a regi/]$ digital asset association to d5y memb]%ip1 b> a p]son f becom+ associat$ ) a memb]1 or prohibit or limit a p]son ) respect to access to s]vices (f]$ by ! association or a memb] "u subp>agraph 7,a7 %all be support$ by a /atem5t sett+ =? ! specific gr\nds on :i* ! d5ial1 b>1 or prohibition or limitation is bas$4 7#c7 ,summ>y proce$+ 7,a7 ,9 g5]al ,a regi/]$ digital asset association may summ>ily-- 7i7 susp5d a memb] ( ! association1 or a p]son associat$ ) su* a memb]1 t is-- 7,i7 expell$ or susp5d$ f any o!r digital asset association2 or 7,,ii7 b>r$ or susp5d$ f be+ associat$ ) a memb] ( ano!r digital asset association2 7ii7 susp5d a memb] ( ! association t is 9 su* f9ancial or op]at+ difficulty t ! association det]m9es 7& s notifies ! appropriate commission7 t ! memb] _c be p]mitt$ to cont9ue to d bus9ess z a memb]1 9 ord] to protect cu/om]s1 cr$itors1 o!r memb]s1 or ! association2 or 7iii7 limit or prohibit any p]son f access+ s]vices (f]$ by ! association if clause 7i7 or 7ii7 is applicable to t p]son1 or1 9 ! case ( a p]son t is n a memb] ( ! association1 if ! association det]m9es t ! p]son-- 7,i7 does n meet ! qualification requirem5ts or o!r pr]equisites = t access2 & 7,,ii7 _c be p]mitt$ to cont9ue to h su* access ) safety1 9 ord] to protect cu/om]s1 cr$itors1 memb]s1 or ! association4 7,b7 ,opportunity = he>+ ,any p]son aggriev$ by a summ>y action "u subp>agraph 7,a7 %all be promptly af=d$ an opportunity = a he>+ by ! applicable digital asset association 9 accordance ) ! provisions ( p>agraph 7#a7 or 7#b74 7,c7 ,/ay ,! appropriate commission1 by ord]1 may /ay a summ>y action describ$ 9 subp>agraph 7,a7 on ! motion ( ! commission or ^u application by any p]son aggriev$ by ! summ>y action1 if ! commission det]m9es summ>ily or aft] notice & opportunity = he>+ 7:i* may consi/ solely ( ! submission ( affidavits or pres5tation ( oral argum5ts7 t ! /ay is consi/5t ) ! public int]e/ & cu/om] protection4 7i7 ,obligation ,to ma9ta9 regi/ration1 discipl9>y1 & o!r data 7#a7 ,ma9t5ance ( sy/em to respond to inquiries ,a regi/]$ digital asset association %all e/abli% & ma9ta9-- 7,a7 a sy/em = collect+ & reta9+ regi/ration in=mation2 & 7,b7 a website1 includ+ an application programm+ int]face1 to receive & promptly respond to inquiries reg>d+ regi/ration in=mation on ! memb]s ( ! association & associat$ p]sons ) respect to ^? memb]s4 7#b7 ,recov]y ( co/s ,a regi/]$ digital asset association may *>ge p]sons mak+ inquiries describ$ 9 p>agraph 7#a77;,b71 o!r ?an individual cu/om]s ( digital asset int]m$i>ies1 reasonable fees = responses4 7#c7 ,process = disput$ in=mation ,ea* regi/]$ digital asset association %all adopt rules e/abli%+ a process = disput+ ! accuracy ( in=mation provid$ 9 response to inquiries "u ?is subsection4 7#d7 ,limitation on liability ,a regi/]$ digital asset association1 or any digital asset int]m$i>y report+ in=mation to su* an association1 %all n h any liability to any p]son = any actions tak5 or omitt$ 9 good fai? "u ?is subsection4 7j7 ,avoidance ( duplicative rules 7#a7 ,9 g5]al ,ea* digital asset association regi/]$ "u subsection 7b7 %all issue rules z necess>y to avoid duplicative or conflict+ rules applicable to any digital asset int]m$i>y t is a memb] ( a national securities ex*ange1 bo>d ( trade1 contract m>ket1 regi/]$ securities association1 regi/]$ futures association1 or simil> digital asset association4 7#b7 ,o!r memb]%ip ,a digital asset int]m$i>y %all n be requir$ to become a memb] ( ano!r digital asset association unless ! int]m$i>y p]=ms activities ) f9ancial assets o!r ?an digital assets4 7#c7 ,non-digital asset activities 7,a7 ,rules by ,commissions ,! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission %all jo9tly prescribe rules "u :i* a digital asset int]m$i>y t is a memb] or affiliate ( a digital asset association regi/]$ "u ?is section may p]=m activities ) f9ancial assets o!r ?an digital assets1 if ^? activities are n a majority ( ! bus9ess ( an int]m$i>y & are conduct$ 9 a responsible mann]1 )\t memb]%ip 9 ano!r digital asset association4 7,b7 ,rules by digital asset associations ,a regi/]$ digital asset association "u ?is section %all adopt rules gov]n+ activities ) f9ancial assets o!r ?an digital assets1 :i* %all be consi/5t ) exi/+ law1 rule1 guidance or indu/ry be/ practices or ! rules ( o!r digital asset associations4 4 7b7 ,te*nical & con=m+ am5dm5t ,! table ( sections = *apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z add$ by section #b1 is am5d$ by add+ at ! end ! foll[+3 #ihjb4 ,regi/]$ digital asset associations4 4 #d4 ,regi/ration1 rulemak+1 & sup]vision ( digital asset associations 7a7 ,9 g5]al ,*apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #c1 is am5d$ by add+ at ! end ! foll[+3 #ihjc4 ,regi/ration1 rulemak+1 & sup]vision ( digital asset associations 7a7 ,regi/ration proc$ures2 notice ( fil+2 o!r regulatory ag5cies 7#a7 ,publication ( notice 7,a7 ,9 g5]al ,! ,securities & ,ex*ange ,commission & ,commodity ,futures ,trad+ ,commission %all1 ^u ! fil+ ( an application = regi/ration z a digital asset association "u section #ihjb1 publi% notice ( t fil+ & af=d int]e/$ p]sons an opportunity to submit writt5 data1 views1 & argum5ts conc]n+ ! application4 7,b7 ,requirem5ts ,n lat] ?an #ij days aft] ! date on :i* notice is publi%$ "u subp>agraph 7,a71 or )9 a long] p]iod to :i* ! applicable applicant cons5ts1 ! ,securities & ,ex*ange ,commission & ,commodity ,futures ,trad+ ,commission %all-- 7i7 by jo9t ord]1 grant regi/ration ( ! digital asset association2 or 7ii7 in/itute proce$+s to det]m9e :e!r regi/ration %\ld be d5i$4 7,c7 ,proce$+s 7i7 ,9 g5]al ,proce$+s in/itut$ "u subp>agraph 7,b77ii7 %all include notice ( ! gr\nds = d5ial "u consid]ation & opportunity = he>+ be=e ! jo9t commissions4 7ii7 ,he>+ ,a he>+ describ$ 9 clause 7i7 %all be conclud$ n lat] ?an #ahj days aft] ! date on :i* notice ( ! fil+ ( ! application = regi/ration is publi%$ "u subp>agraph 7,a74 7iii7 ,fur!r proce$+s 7,i7 ,sep>ate votes ,at ! conclusion ( a he>+ conduct$ "u ?is subp>agraph1 & n lat] ?an ! end ( ! #ahj-;day p]iod describ$ 9 clause 7ii71 ! ,securities & ,ex*ange ,commission & ,commodity ,futures ,trad+ ,commission1 vot+ sep>ately1 %all act to grant or d5y ! applicable regi/ration4 7,,ii7 ,effect ( failure to issue jo9t ord] ,! failure ( ! ,securities & ,ex*ange ,commission & ,commodity ,futures ,trad+ ,commission to issue a jo9t ord] dur+ ! p]iod describ$ 9 subclause 7,i7 %all be deem$ to be a d5ial ( ! applicable regi/ration4 7,d7 ,consid]ations ,) respect to an application = regi/ration describ$ 9 ?is p>agraph1 ! ,securities & ,ex*ange ,commission & ,commodity ,futures ,trad+ ,commission %all-- 7i7 grant regi/ration if all /atutory requirem5ts h be5 met & ! rules "u ^? /atutory provisions ) respect to ! applicant are satisfi$2 & 7ii7 d5y su* regi/ration if ! commissions d n make ! f9d+s describ$ 9 clause 7i74 7#b7 ,)drawal f regi/ration 7,a7 ,9 g5]al ,a digital asset association may1 ^u su* t]ms & conditions z ! ,securities & ,ex*ange ,commission & ,commodity ,futures ,trad+ ,commission1 by rule1 det]m9e necess>y or appropriate 9 ! public int]e/ or = ! protection ( cu/om]s1 )draw f regi/ration describ$ 9 p>agraph 7#a7 by fil+ a writt5 notice ( )drawal ) ! commissions4 7,b7 ,consid]ations 7i7 ,9 g5]al ,if ! ,securities & ,ex*ange ,commission & ,commodity ,futures ,trad+ ,commission1 vot+ sep>ately1 ea* f9ds t a digital asset association is no long] 9 exi/5ce or has ceas$ to d bus9ess 9 ! capacity specifi$ 9 ! application = regi/ration submitt$ by ! association1 ! commissions may cancel ! regi/ration ( ! association4 7ii7 ,effect ( failure to vote ,! failure to issue a jo9t ord] describ$ 9 clause 7i7 %all be deem$ to ma9ta9 ! regi/ration ( ! applicable digital asset association4 7,c7 ,effect ( )drawal1 cancellation1 susp5sion1 or revocation ,^u )drawal by regi/ration or ! cancellation1 susp5sion1 or revocation ( ! regi/ration ( a digital asset association1 ! regi/ration ( any association affiliat$ ) ! association %all automatically t]m9ate4 7b7 ,propos$ rule *anges2 notice2 proce$+s 7#a7 ,9 g5]al ,except z o!rwise provid$ 9 p>agraph 7#b7-- 7,a7 a digital asset association %all file ) ! appropriate commission1 9 accordance ) ! rules ( t commission1 copies ( any propos$ rule or any propos$ *ange 91 addition to1 or deletion f ! rules ( su* digital asset association accompani$ by a concise g5]al /atem5t ( ! basis & purpose ( su* propos$ rule *ange2 7,b7 ! appropriate commission %all-- 7i7 z soon z practicable aft] ! date on :i* a propos$ rule *ange is fil$ "u subp>agraph 7,a71 publi% notice ( t fil+ toge!r ) ! t]ms ( sub/ance ( ! propos$ rule *ange or a description ( ! subjects & issues involv$2 & 7ii7 give int]e/$ p]sons an opportunity to submit writt5 data1 views1 & argum5ts conc]n+ t propos$ rule *ange2 7,c7 no propos$ rule *ange describ$ 9 subp>agraph 7,a7 %all take effect unless approv$ by ! appropriate commission or o!rwise p]mitt$ 9 accordance ) ! provisions ( ?is subsection2 & 7,d7 no propos$ rule *ange describ$ 9 subp>agraph 7,a7 relat+ to a matt] "u ! jurisdiction ( m ?an #a commission may be fil$4 7#b7 ,approval process 7,a7 ,approval process e/abli%$ 7i7 ,9 g5]al ,except z provid$ 9 clause 7ii71 n lat] ?an #cj days aft] ! date on :i* notice ( a propos$ rule *ange is publi%$ "u p>agraph 7#a71 ! appropriate commission %all-- 7,i7 by ord]1 approve or disapprove ! propos$ rule *ange2 or 7,,ii7 in/itute proce$+s "u subp>agraph 7,b7 to det]m9e :e!r ! propos$ rule *ange %\ld be disapprov$4 7ii7 ,ext5sion ( "t p]iod ,! appropriate commission may ext5d ! p]iod e/abli%$ "u clause 7i7 by n m ?an an additional #cj days1 if-- 7,i7 ! commission det]m9es t a long] p]iod is appropriate & publi%es ! reasons = t det]m9ation2 or 7,,ii7 ! digital asset association t fil$ ! propos$ rule *ange cons5ts to a long] p]iod4 7,b7 ,proce$+s 7i7 ,notice & he>+ ,if ! appropriate commission does n approve or disapprove a propos$ rule *ange "u subp>agraph 7,a71 ! commission %all provide to ! digital asset association t fil$ ! propos$ rule *ange-- 7,i7 notice ( ! gr\nds = disapproval "u consid]ation2 & 7,,ii7 opportunity = he>+1 to be conclud$ n lat] ?an #ahj days aft] ! date ( publication ( notice ( ! fil+ ( ! propos$ rule *ange4 7ii7 ,ord] ( approval or disapproval 7,i7 ,9 g5]al ,except z provid$ 9 subclause 7,,ii71 n lat] ?an #ahj days aft] ! date on :i* notice is publi%$ "u p>agraph 7#a71 ! appropriate commission %all issue an ord] approv+ or disapprov+ ! propos$ rule *ange t is ! subject ( ! notice4 7,,ii7 ,ext5sion ( "t p]iod ,! appropriate commission may ext5d ! p]iod = issuance "u clause 7,i7 by n m ?an #fj days1 if-- 7aa7 ! commission det]m9es t a long] p]iod is appropriate & publi%es ! reasons = su* det]m9ation2 or 7bb7 ! digital asset association t fil$ ! propos$ rule *ange cons5ts to ! long] p]iod4 7,c7 ,/&>ds = approval & disapproval 7i7 ,approval ,! appropriate commission %all approve a propos$ rule *ange ( a digital asset association if ! commission f9ds t ! propos$ rule *ange is consi/5t ) law4 7ii7 ,"t = approval ,! appropriate commission may n approve a propos$ rule *ange e>li] ?an #cj days aft] ! date ( publication ( notice ) respect to ! propos$ rule *ange "u p>agraph 7#a71 unless ! commission f9ds good cause = s do+ & publi%es ! reason = ! f9d+4 7,d7 ,result ( failure to in/itute or conclude proce$+s ,a propos$ rule *ange %all be deem$ to h be5 approv$ by ! appropriate commission1 if-- 7i7 ! commission does n approve or disapprove ! propos$ rule *ange1 or beg9 proce$+s "u subp>agraph 7,b71 )9 ! p]iod describ$ 9 subp>agraph 7,a72 or 7ii7 ! commission does n issue an ord] approv+ or disapprov+ ! propos$ rule *ange "u subp>agraph 7,b7 )9 ! p]iod describ$ 9 subp>agraph 7,b77ii74 7,e7 ,publication date bas$ on f$]al regi/] publi%+ 7i7 ,9 g5]al ,= purposes ( ?is p>agraph1 if1 aft] fil+ a propos$ rule *ange ) ! appropriate commission "u p>agraph 7#a71 a digital asset association publi%es a notice ( ! fil+ ( t propos$ rule *ange1 toge!r ) ! sub/antive t]ms ( t propos$ rule *ange1 on a publicly accessible website1 ! commission %all s5d ! notice to ! ,f$]al ,regi/] = publication ( ! propos$ rule *ange "u p>agraph 7#a7 n lat] ?an #e days aft] ! date on :i* t website publication is made4 7ii7 ,effect ( fail+ to s5d ,if ! appropriate commission fails to s5d notice "u clause 7i7 dur+ ! #e-;day p]iod describ$ 9 t clause1 ! date ( publication %all be deem$ to be ! date on :i* ! applicable website publication is made4 7#c7 ,int]nal gov]nance ,) respect to a propos$ rule relat+ to ! int]nal op]ation1 gov]nance1 & proc$ures ( a digital asset association1 or a propos$ rule relat+ to ! det]m9ation ( ! legal "* ( a digital asset-- 7,a7 ! propos$ rule %all be-- 7i7 subject to approval by ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission2 & 7ii7 deem$ to be approv$ on ! date t is #e days aft] ! date on :i* ! propos$ rule is submitt$1 unless ei!r commission objects to ! propos$ rule *ange2 & 7,b7 if a commission objects to ! propos$ rule *ange "u subp>agraph 7,a77ii7-- 7i7 ! commission %all1 9 a public =mat1 provide to ! digital asset association & ! non-object+ commission ! reasons = ! objection2 7ii7 ! digital asset association1 & int]e/$ memb]s ( ! public1 may provide writt5 comm5ts to ! commissions dur+ ! #bj-;day p]iod beg9n+ on ! date on :i* ! objection is not$2 & 7iii7 ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission1 vot+ sep>ately1 %all jo9tly issue an ord] approv+ or disapprov+ ! propos$ rule1 ) ! failure to issue su* a jo9t ord] be+ deem$ to be approval ( ! propos$ rule4 7#d7 ,exception 7,a7 ,9 g5]al ,not)/&+ p>agraphs 7#b7 & 7#c71 a propos$ rule *ange %all take effect ^u fil+ if self-c]tifi$ by a digital asset association z-- 7i7 con/itut+ a /at$ policy1 practice1 or int]pretation ) respect to ! mean+1 adm9i/ration1 or en=cem5t ( an exi/+ rule ( ! digital asset association2 7ii7 e/abli%+ or *ang+ a due1 fee1 or o!r *>ge impos$ by ! digital asset association on any p]son1 :e!r or n ! p]son is a memb] ( ! digital asset association2 or 7iii7 not)/&+ any o!r provision ( ?is subsection1 necess>y = cu/om] protection1 ! ma9t5ance ( fair & ord]ly m>kets1 or ! safegu>d+ ( digital assets1 cu/om] funds1 or o!r prop]ty1 9 :i* case ! propos$ rule *ange "u %all be fil$ promptly !reaft] 9 accordance ) p>agraph 7#a74 7,b7 ,en=cem5t 7i7 ,9 g5]al ,any propos$ rule *ange ( a digital asset association t has tak5 effect "u subp>agraph 7,a7 may be en=c$ by ! association to ! ext5t ! rule *ange is n inconsi/5t ) applicable law4 7ii7 ,susp5sion 7,i7 ,9 g5]al ,at any "t dur+ ! #fj-;day p]iod beg9n+ on ! date on :i* a propos$ rule *ange is fil$ "u p>agraph 7#a71 ! appropriate commission may tempor>ily & summ>ily susp5d ! *ange 9 ! rules ( ! applicable digital asset association on a tempor>y basis1 if ! commission det]m9es t su* action is necess>y or appropriate 9 ! public int]e/1 = cu/om] protection1 or to o!rwise comply ) applicable law4 7,,ii7 ,requirem5ts ,if a commission takes action "u subclause 7,i71 ! commission %all in/itute proce$+s "u p>agraph 7#b77;,b7 to det]m9e :e!r ! applicable propos$ rule %\ld be approv$ or disapprov$4 7iii7 ,rule ( con/ruction ,action "u ?is subp>agraph %all n affect ! validity or =ce ( a propos$ rule *ange dur+ ! p]iod ! rule *ange 0 9 effect & %all n be reviewable 9 a judicial proce$+1 nor deem$ to be f9al ag5cy action = purposes ( section #gjd ( title #e4 7#e7 ,rule ( con/ruction relat+ to fil+ date ( propos$ rule *anges 7,a7 ,9 g5]al ,= purposes ( ?is subsection1 ! date ( fil+ ( a propos$ rule *ange %all be deem$ to be ! date on :i* ! applicable commission receives ! propos$ rule *ange4 7,b7 ,exception 7i7 ,9 g5]al ,subject to clause 7ii71 a propos$ rule has n be5 receiv$ by ! applicable commission = purposes ( subp>agraph 7,a71 if1 n lat] ?an #g bus9ess days aft] ! date on :i* ! commission receives ! rule1 ! commission notifies ! applicable digital asset association t ! propos$ rule *ange does n comply ) ! rules ( ! commission relat+ to ! requir$ =m ( a propos$ rule *ange4 7ii7 ,l5g?y & complex propos$ rule *anges 7,i7 ,9 g5]al ,if ! applicable commission det]m9es t a propos$ rule *ange is unusually l5g?y1 & is complex or raises novel regulatory issues1 ! commission %all in=m ! applicable digital asset association ( t det]m9ation n lat] ?an #g bus9ess days aft] ! date on :i* ! commission receives ! rule4 7,,ii7 ,deadl9e ,= ! purposes ( subp>agraph 7,a71 a propos$ rule *ange describ$ 9 subclause 7,i7 has n be5 receiv$ by ! applicable commission1 if1 n lat] ?an #ba days aft] ! date on :i* ! commission receives ! rule1 ! commission notifies ! applicable digital asset association t ! propos$ rule *ange does n comply ) ! rules ( ! commission relat+ to ! requir$ =m ( a propos$ rule *ange4 7,c7 ,applicability ,?is p>agraph %all n apply to a rule relat+ to ! int]nal op]ations1 gov]nance1 & proc$ure ( a digital asset association4 7c7 ,am5dm5t ( rules ( digital asset associations 7#a7 ,9 g5]al ,! appropriate commission may1 by rule1 abrogate1 add to1 & delete f ! rules ( a digital asset association z ! commission det]m9es necess>y or appropriate to ensure ! fair adm9i/ration ( ! digital asset association or to con=m ! rules ( ! association to law or applicable rule1 9 ! foll[+ mann]3 7,a7 ,! appropriate commission %all notify ! digital asset association & publi% notice ( ! propos$ rulemak+ 9 ! ,f$]al ,regi/]1 :i* %all include ! text ( ! propos$ am5dm5t to ! rules ( ! digital asset association & a /atem5t ( ! reasons ( ! commission1 includ+ any p]t95t facts1 = comm5c+ ! propos$ rulemak+4 7,b7 7i7 ,! appropriate commission %all give int]e/$ p]sons an opportunity = ! oral pres5tation ( data1 views1 & argum5ts1 9 addition to an opportunity to make writt5 submissions4 7ii7 ,a transcript %all be kept ( any oral pres5tation "u clause 7i74 7,c7 ,a rule adopt$ pursuant to ?is p>agraph %all incorporate ! text ( ! am5dm5t to ! rules ( ! digital asset association & a /atem5t ( ! appropriate commission reg>d+ ! basis = am5dm5t ( ! rule1 :i* %all include an id5tification ( any facts on :i* ! det]m9ation ( ! commission to am5d ! rules ( ! digital asset association is bas$1 includ+ ! reasons = ! conclusions ( ! commission relat+ to any facts t 7 disput$ 9 ! rulemak+4 7#b7 ,rule ( con/ruction ,no?+ 9 ?is subsection may be con/ru$ to impair or limit ! au?ority ( ! appropriate commission to make1 or to modify or alt] ! proc$ures ! commission may foll[ 9 mak+1 rules pursuant to any o!r au?ority grant$ by law t is consi/5t ) ?is subsection4 7#c7 ,effect ( rules ,any am5dm5t to ! rules ( a digital asset association made by ! appropriate commission "u ?is subsection %all be consid]$ = all purposes to be "p ( ! rules ( t digital asset association & %all n be consid]$ to be a rule ( ! commission4 7#d7 ,consultations ,) respect to rules describ$ 9 subsection 7b77#d77;,a77iii71 ! appropriate commission %all consult ) & consid] ! views ( ! o!r commission & ! ,secret>y ( ! ,treasury be=e abrogat+1 add+ to1 & delet+ f ^? rules1 except :]e ! commission det]m9es t an em]g5cy exi/s requir+ exp$iti\s or summ>y action & publi%es ! reasons ( ! commission = tak+ t action4 7d7 ,notice ( discipl9>y action tak5 by digital asset association aga9/ a memb] or p>ticipant2 review ( action by appropriate commission2 proc$ure 7#a7 ,9 g5]al ,if a digital asset association imposes any f9al discipl9>y sanction on any memb] ( ! association1 or any p>ticipant ) respect to ! association1 d5ies memb]%ip or p>ticipation to any applicant1 prohibits or limits any p]son f access+ s]vices (f]$ by ! association or a memb] ( ! association1 imposes any f9al discipl9>y sanction on any p]son associat$ ) a memb]1 or b>s any p]son f becom+ associat$ ) a memb]1 ! digital asset association %all promptly file notice ( t action ) ! appropriate commission4 7#b7 ,review 7,a7 ,9 g5]al ,any action ) respect to :i* a digital asset association is requir$ to file notice "u p>agraph 7#a7 %all be subject to review by ! appropriate commission = ! applicable memb]1 p>ticipant1 applicant1 or o!r p]son1 on its own motion1 or ^u application by any p]son aggriev$ by t action if fil$ n lat] ?an #cj days aft] ! date on :i* ! notice 0 fil$ ) ! appropriate commission & receiv$ by ! aggriev$ p]son1 or )9 su* long] p]iod z ! appropriate commission may det]m9e4 7,b7 ,application ,application to ! appropriate commission = review1 or ! in/itution ( review by ! commission on its own motion1 %all n op]ate z a /ay ( an action describ$ 9 subp>agraph 7,a7 unless ! appropriate commission o!rwise ord]s1 summ>ily or aft] notice & opportunity = he>+ on ! "q ( a /ay1 :i* may consi/ solely ( ! submission ( affidavits or pres5tation ( oral argum5ts4 7,c7 ,/ays ,= ! purposes ( ?is p>agraph1 ea* ( ! appropriate commissions %all e/abli% = appropriate cases an exp$it$ proc$ure = consid]ation & det]m9ation ( ! "q ( a /ay4 7#c7 ,applicability ,?is subsection %all apply only to ! ext5t t a digital asset association imposes any f9al discipl9>y sanction =-- 7,a7 a violation ( ,f$]al law or ! rules issu$ "u ,f$]al law2 or 7,b7 a violation ( a rule ( ! digital asset association1 z to :i* a propos$ *ange w\ld be requir$ to be fil$ "u ?is section4 7e7 ,disposition ( review2 cancellation1 r$uction1 or remission ( sanction 7#a7 ,9 g5]al ,9 any proce$+ to review a f9al discipl9>y sanction impos$ by a digital asset association on a memb] ( ! association1 a p>ticipant ) respect to ! association1 or a p]son associat$ ) su* a memb]1 aft] notice & opportunity = he>+1 :i* may consi/ solely ( consid]ation ( ! record be=e ! digital asset association & opportunity = ! pres5tation ( support+ reasons to affirm1 modify1 or set aside ! sanction-- 7,a7 if ! appropriate commission f9ds t su* memb]1 p>ticipant1 or p]son associat$ ) a memb] has engag$ 9 su* acts or practices1 or has omitt$ su* acts1 z ! digital asset association has f\nd t p]son to h engag$ 9 or omitt$1 t su* acts or practices1 or omissions to act1 are 9 violation ( law1 ! rules !reund]1 or ! rules ( ! digital asset association1 & t su* provisions are1 & 7 appli$ 9 a mann]1 consi/5t ) law1 ! commission1 by ord]1 %all-- 7i7 make a decl>ation reg>d+ t f9d+2 & 7ii7 z appropriate-- 7,i7 affirm ! sanction impos$ by ! digital asset association2 7,,ii7 modify ! sanction 9 accordance ) p>agraph 7#b72 or 7,,iii7 rem& to ! digital asset association = fur!r proce$+s2 or 7,b7 if ! appropriate commission does n make a f9d+ describ$ 9 subp>agraph 7,a71 ! commission %all1 by ord]-- 7i7 set aside ! sanction impos$ by ! digital asset association2 & 7ii7 if appropriate1 rem& to ! digital asset association = fur!r proce$+s4 7#b7 ,modification ,if ! appropriate commission = a memb]1 p>ticipant1 or p]son associat$ ) a memb]1 hav+ due reg>d = ! public int]e/ & cu/om] protection1 f9ds1 aft] a proce$+ "u p>agraph 7#a71 t a sanction impos$ by a digital asset association ^u t memb]1 p>ticipant1 or p]son associat$ ) a memb] imposes any burd5 on competition n necess>y or appropriate or is excessive or oppressive1 ! commission may cancel1 r$uce1 or require ! remission ( t sanction4 7f7 ,dismissal ( review proce$+ 7#a7 ,9 g5]al ,9 any proce$+ to review ! d5ial ( memb]%ip or p>ticipation 9 a digital asset association to any applicant1 ! b>r+ ( any p]son f becom+ associat$ ) a memb] ( a digital asset association1 or ! prohibition or limitation by a digital asset association ( any p]son f access+ s]vices (f]$ by ! digital asset association or any memb] ( ! association1 if ! appropriate commission1 aft] notice & opportunity = he>+1 :i* may consi/ solely ( consid]ation ( ! record be=e ! digital asset association & opportunity = ! pres5tation ( support+ reasons to dismiss ! proce$+ or set aside ! action ( ! digital asset association1 f9ds t ! specific gr\nds on :i* t d5ial1 b>1 or prohibition or limitation is bas$ exi/ 9 fact1 t su* d5ial1 b>1 or prohibition or limitation is 9 accordance ) ! rules ( ! digital asset association1 & t su* rules are1 & 7 appli$ 9 a mann]1 consi/5t ) law1 ! appropriate commission1 by ord]1 %all dismiss ! proce$+4 7#b7 ,failure to make f9d+ ,if ! appropriate commission does n make a f9d+ describ$ 9 p>agraph 7#a71 or if ! commission f9ds t ! applicable d5ial1 b>1 prohibition1 or limitation imposes any burd5 on competition n necess>y or appropriate1 ! commission1 by ord]1 %all set aside ! action ( ! digital asset association & require ! association to admit ! applicable applicant to memb]%ip or p>ticipation1 p]mit t p]son to become associat$ ) a memb]1 or grant t p]son access to s]vices (f]$ by ! digital asset association or a memb] ( ! association4 7g7 ,susp5sion or revocation ( digital asset association regi/ration2 o!r sanctions 7#a7 ,9 g5]al ,if necess>y or appropriate 9 ! public int]e/1 = cu/om] protection1 or o!rwise 9 fur!rance ( ! purposes ( ?is section1 ! appropriate commissions1 vot+ sep>ately1 may issue a jo9t ord] susp5d+ = a p]iod n exce$+ #a ye> or revok+ ! regi/ration ( a digital asset association1 or c5sur+ or impos+ limitations ^u ! activities1 functions1 & op]ations ( a digital asset association1 if1 ! commissions f9d1 on ! record aft] notice & opportunity = he>+1 t ! digital asset association-- 7,a7 has violat$ or is unable to comply ) any provision ( law1 rule1 or ! rules ( ! association )\t reasonable ju/ification or excuse2 or 7,b7 has fail$ to en=ce compliance ) any provision by a memb] ( ! association or a p]son associat$ ) a memb] ( ! association4 7#b7 ,expulsion ,! appropriate commission may1 by ord]1 if necess>y or appropriate 9 ! public int]e/1 = cu/om] protection1 or o!rwise 9 fur!rance ( ! purposes ( ?is section1 to susp5d = a p]iod n exce$+ #a ye> or expel f a digital asset association1 any memb] ( a digital asset association1 or p>ticipant ) respect to a digital asset association1 if su* memb] or p>ticipant is subject to an ord] ( ! commission or if ! commission1 on ! record aft] notice & opportunity = he>+1 det]m9es t ! memb] or p>ticipant has willfully violat$1 or has effect$ any transaction = any o!r p]son :o ! memb] or p>ticipant _h reason to believe 0 violat+1 ) respect to su* transaction any applicable provision ( law "u ! jurisdiction ( ! commission4 7#c7 ,b> on association ,! applicable commission may1 by ord]1 if necess>y or appropriate 9 ! public int]e/1 = cu/om] protection1 or o!rwise 9 fur!rance ( ! purposes ( ?is section1 to susp5d = a p]iod n exce$+ #a ye> or to b> any p]son f be+ associat$ ) a memb] ( su* digital asset association1 if ! p]son is subject to an ord] ( ! appropriate commission or if ! appropriate commission f9ds1 on ! record aft] notice & opportunity = he>+1 t ! p]son has willfully violat$1 or has effect$ any transaction = any o!r p]son :o ! p]son associat$ ) a memb] _h reason to believe 0 violat+1 ) respect to ! transaction any applicable provision ( law "u ! jurisdiction ( ! commission4 7#d7 ,removal f (fice ,if necess>y or appropriate 9 ! public int]e/1 = cu/om] protection1 or o!rwise 9 fur!rance ( ! purposes ( ?is section1 ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission1 vot+ sep>ately1 may1 by jo9t ord]1 remove f (fice or c5sure any p]son :o is1 or at ! "t ( ! alleg$ misconduct 01 an (fic] or director ( a digital asset association1 if ! commissions f9d1 on ! record aft] notice & opportunity = a he>+ be=e an imp>tial he>+ (fic]1 t su* p]son has willfully violat$ any provision ( law1 ! rules !reund]1 or ! rules ( su* digital asset association1 willfully abus$ ! au?ority ( ! p]son1 or )\t reasonable ju/ification or excuse has fail$ to en=ce compliance ) any provision ( law by any memb] or p]son associat$ ) a memb]4 7h7 ,int]ag5cy work+ gr\p ,! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission %all ea* appo9t an equal numb] ( employees1 "u ! sup]vision ( ! ,*airman ( ! respective commissions1 to an int]ag5cy work+ gr\p1 :i* %all coord9ate & facilitate ! responsibilities & p[]s ( ! respective commissions "u ?is *apt]4 4 7b7 ,te*nical & con=m+ am5dm5t ,! table ( sections = *apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #c1 is am5d$ by add+ at ! end ! foll[+3 #ihjc4 ,regi/ration1 rulemak+1 & sup]vision ( digital asset associations4 4 #e4 ,records & reports2 duties & p[]s ( regi/]$ digital asset associations 7a7 ,9 g5]al ,*apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #d1 is am5d$ by add+ at ! end ! foll[+3 #ihjd4 ,records & reports2 duties & p[]s ( regi/]$ digital asset associations 7a7 ,9 g5]al ,ea* memb] ( a regi/]$ digital asset association %all make1 & keep = prescrib$ p]iods1 su* electronic records & dissem9ate reports z ! regi/]$ digital asset association1 by rule1 prescribes z necess>y or appropriate 9 ! public int]e/4 7b7 ,records subject to exam9ation 7#a7 ,proc$ures = coop]ation ) o!r ag5cies 7,a7 ,9 g5]al ,all records ( a memb] describ$ 9 subsection 7a7 are subject at any "t1 or f "t to "t1 to reasonable p]iodic1 special1 or o!r exam9ations by ! regi/]$ digital asset association ( ! memb]4 7,b7 ,notice ,be=e conduct+ an exam9ation "u subp>agraph 7,a71 ! exam9+ au?ority %all-- 7i7 in=m all o!r relevant regulatory ag5cies & digital asset associations ) jurisdiction ov] ! memb] reg>d+ ! propos$ exam9ation2 & 7ii7 consult conc]n+ ! feasibility & desirability ( coord9at+ su* exam9ation ) exam9ations conduct$ by o!r entities ) a view to avoid+ unnecess>y duplication & undue regulatory burd54 7,c7 ,exam9ations ( memb]s ,^u a %[+ ( good cause1 ! ,securities & ,ex*ange ,commission or ! ,commodity ,futures ,trad+ ,commission1 z applicable1 may conduct a special exam9ation ( a regi/]$ digital asset association or a memb] ( su* an association4 7,d7 ,report ,) respect to an exam9ation "u ?is p>agraph1 ! exam9+ au?ority %all %>e su* in=mation1 includ+ reports ( ! exam9ation1 cu/om] compla9t in=mation1 & o!r nonpublic regulatory in=mation1 z may be appropriate to fo/] a coord9at$ approa* to regulatory ov]sight = memb]s t are subject to exam9ation by m ?an #a exam9+ au?ority4 7,e7 ,requirem5ts :5 exam9ation n ongo+ ,a regi/]$ digital asset association1 at all times :5 an exam9ation "u ?is p>agraph is n 9 progress1 %all conduct ongo+ sup]vision ( memb]s ( ! association1 z may be provid$ by ! rules ( ! association4 7#b7 ,cl>ification ,not)/&+ any o!r provision ( ?is subsection1 ! records ( a memb] ( a regi/]$ digital asset association %all n be subject to r\t9e p]iodic exam9ations by ! ,securities & ,ex*ange ,commission or ! ,commodity ,futures ,trad+ ,commission4 7#c7 ,exam9ation /&>ds ,ea* regi/]$ digital asset association %all-- 7,a7 adopt tailor$ sup]vision & exam9ation /&>ds comm5surate ) ! size & complexity ( ! association & risks fac$ by memb]s ( ! association2 7,b7 to ! ext5t reasonably possible1 r$uce ! regulatory burd5 = em]g+ gr[? companies1 z def9$ 9 section #b7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a771 includ+ ?r\gh ! use ( self-c]tification & exp$it$ or automat$ exam9ations2 & 7,c7 9 consultation ) o!r regi/]$ digital asset associations1 develop /&>d =m cu/om] agreem5ts = ! execution ( digital asset transactions4 7c7 ,regi/]$ digital asset associations 7#a7 ,9 g5]al ,! ,securities & ,ex*ange ,commission & ,commodity ,futures ,trad+ ,commission1 %all1 by rule or ord]1 9 ord] to fo/] coop]ation & coord9ation among regi/]$ digital asset associations-- 7,a7 ) respect to any p]son t is a memb] ( or p>ticipant 9 m ?an #a regi/]$ digital asset association1 relieve any regi/]$ digital asset association ( any responsibility-- 7i7 to receive regulatory reports f ! p]son2 7ii7 to exam9e ! p]son = compliance2 or 7iii7 to c>ry out o!r specifi$ regulatory functions ) respect to ! p]son2 & 7,b7 allocate among regi/]$ digital asset associations ! au?ority to adopt rules ) respect to matt]s z to :i*1 9 ! abs5ce ( ! allocation1 su* regi/]$ digital asset associations %>e au?ority4 7#b7 ,consid]ations 7,a7 ,9 g5]al ,9 mak+ a rule1 or ent]+ an ord]1 "u p>agraph 7#a71 ! appropriate commission %all take into consid]ation ! regulatory capabilities & proc$ures ( ! applicable regi/]$ digital asset associations1 availability ( /aff1 conv5i5ce ( location1 unnecess>y regulatory duplication1 & all o!r factors applicable to cu/om] protection1 coop]ation & coord9ation among regi/]$ digital asset associations1 & ! developm5t ( a heal?y digital asset m>ket1 :i* may include provid+ = ! acceptance ( exam9ation reports prep>$ by a regi/]$ digital asset association "u ?is *apt] ) respect to a digital asset int]m$i>y = :i* digital asset activities con/itute a majority ( bus9ess1 9 lieu ( exam9ations conduct$ by o!r regi/]$ digital asset associations4 7,b7 ,notification requirem5t ,! ,securities & ,ex*ange ,commission or ,commodity ,futures ,trad+ ,commission1 by rule or ord]1 may require t a regi/]$ digital asset association reliev$ ( any responsibility "u ?is p>agraph1 & any p]son ) respect to :i* t responsibility relates1 to take su* /eps z are specifi$ 9 any rule or ord] to notify cu/om]s (1 & p]sons do+ bus9ess )1 ! p]son ( ! limit$ nature ( ! responsibility ( t regi/]$ digital asset association = ! acts1 practices1 & c\rse ( bus9ess ( ! p]son4 7d7 ,miss+ & /ol5 digital assets ,ea* memb] ( a regi/]$ digital asset association or o!r f9ancial in/itution conduct+ digital asset transactions %all report to ! ,f9ancial ,crimes ,en=cem5t ,network ( ! ,dep>tm5t ( ! ,treasury su* in=mation z may be requir$ by rule relat+ to digital asset !ft or miss+ private keys = ! possession or control ( digital assets4 7e7 ,confid5tiality 7#a7 ,%>+ ( in=mation 7,a7 ,9 g5]al ,section #bd ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #ghx7 %all apply to ! %>+ ( in=mation by ! ,securities & ,ex*ange ,commission & ,commodity ,futures ,trad+ ,commission 9 accordance ) ?is subsection4 7,b7 ,protection f inappropriate disclosure ,! commissions & a regi/]$ digital asset association %all ensure t all confid5tial in=mation is n inappropriately disclos$ pursuant to subp>agraph 7,a74 7#b7 ,appropriate disclosure n prohibit$ ,no?+ 9 ?is subsection may be con/ru$ to au?orize ! ,securities & ,ex*ange ,commission & ,commodity ,futures ,trad+ ,commission or a regi/]$ digital asset association to-- 7,a7 )hold in=mation f ,congress2 or 7,b7 prev5t ! commissions or an association f comply+ )-- 7i7 a reque/ = in=mation f any ,f$]al or ,/ate dep>tm5t or ag5cy reque/+ ! in=mation = purposes )9 ! scope ( ! jurisdiction ( t dep>tm5t or ag5cy2 or 7ii7 an ord] ( a c\rt ( ! ,unit$ ,/ates 9 an action br\ght by ! ,unit$ ,/ates or ! commissions4 7f7 ,be/ execution ,a regi/]$ digital asset association1 9 consultation ) memb]s ( ! association1 ! ,securities & ,ex*ange ,commission1 & ! ,commodity ,futures ,trad+ ,commission1 %all develop rules gov]n+ ! be/ execution ( digital asset transactions4 7g7 ,initial det]m9ation ( legal "* 7#a7 ,9 g5]al 7,a7 ,initial det]m9ation ,a regi/]$ digital asset association may make an initial det]m9ation ( ! legal "* ( a digital asset z a security1 an ancill>y asset1 a commodity 7z def9$ 9 section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a771 or z o!rwise provid$ by law1 ^u ! writt5 reque/ ( a memb] ( ! association4 7,b7 ,consultation2 he>+s ,^u receipt ( a reque/ "u subp>agraph 7,a71 a regi/]$ digital asset association-- 7i7 %all consult ) ! commissions & make an initial det]m9ation reg>d+ ! reque/1 aft] public notice & comm5t1 n lat] ?an #de days aft] ! date on :i* ! association receives ! reque/2 & 7ii7 may hold a public he>+ ) respect to an initial det]m9ation describ$ 9 clause 7i71 if-- 7,i7 ! matt] is ( significant prec$5tial value or complex2 or 7,,ii7 hold+ su* a he>+ is o!rwise 9 ! public int]e/4 7#b7 ,publication ,a regi/]$ digital asset association %all publi% all det]m9ations made "u p>agraph 7#a7 on ! website ( ! association4 7h7 ,objection to initial det]m9ation 7#a7 ,9 g5]al 7,a7 ,deadl9e = objection ,n lat] ?an #cj days aft] ! date on :i* an initial det]m9ation is made "u subsection 7g71 ! ,securities & ,ex*ange ,commission or ,commodity ,futures ,trad+ ,commission may object to ! initial det]m9ation ( ! regi/]$ digital asset association by issu+ an ord]1 aft] public notice1 comm5t1 & a he>+4 7,b7 ,effect ( objection ,^u an objection "u subp>agraph 7,a71 ! initial det]m9ation to :i* ! objection applies %all be held 9 abeyance4 7#b7 ,ord] 7,a7 ,9 g5]al ,n lat] ?an #fj days aft] ! date on :i* a commission objects "u p>agraph 7#a71 ! commissions %all1 aft] public notice & comm5t ( n less ?an #cj days1 issue an ord] resolv+ ! objection & ! /atus ( ! digital asset1 z describ$ 9 subsection 7g77#a77;,a71 :i* may include jo9t responsibility ( ! commissions4 7,b7 ,failure to issue ,if ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission fail to issue a jo9t ord] "u subp>agraph 7,a71 ! det]m9ation ( ! regi/]$ digital asset association "u subsection 7g7 %all become f9al1 unless an action is br\ght 9 an appropriate di/rict c\rt ( ! ,unit$ ,/ates ( compet5t jurisdiction4 4 7b7 ,te*nical & con=m+ am5dm5t ,! table ( sections = *apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #d1 is am5d$ by add+ at ! end ! foll[+3 #ihjd4 ,records & reports2 duties & p[]s ( regi/]$ digital asset associations4 4