,,ib ,union ,cal5d> ,no4 #dja #aah? ,,congress #b;d ,session ,h4 ,r4 #dgfc ,report ,no4 #aah-dhd1 ,p>ts ,i & ,,ii ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,july #bj1 #bjbc ,mr4 ,?ompson ( ,p5nsylvania 7= himself1 ,mr4 ,hill1 ,mr4 ,johnson ( ,s\? ,dakota1 ,mr4 ,davidson1 & ,mr4 ,emm]7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices1 & 9 addition to ! ,committee on ,agriculture1 = a p]iod to be subsequ5tly det]m9$ by ! ,speak]1 9 ea* case = consid]ation ( su* provisions z fall )9 ! jurisdiction ( ! committee conc]n$ ,may #f1 #bjbd ,additional sponsors3 ,mr4 ,mol9>o1 ,mr4 ,cuell>1 ,mr4 ,nickel1 ,mr4 ,curtis1 ,mr4 ,banks1 ,mr4 ,mc,henry1 & ,mr4 ,torres ( ,new ,york ,may #f1 #bjbd ,report$ f ! ,committee on ,agriculture ) an am5dm5t ,/rike out all aft] ! enact+ clause & ins]t ! "p pr9t$ 9 italic ,may #f1 #bjbd ,report$ f ! ,committee on ,f9ancial ,s]vices ) an am5dm5t2 committ$ to ! ,committee ( ! ,:ole ,h\se on ! ,/ate ( ! ,union & ord]$ to be pr9t$ ,/rike out all aft] ! enact+ clause & ins]t ! "p pr9t$ 9 boldface roman ,= text ( introduc$ bill1 see copy ( bill z introduc$ on ,july #bj1 #bjbc ,a ,,bill ,to provide = a sy/em ( regulation ( digital assets by ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission1 & = o!r purposes4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,f9ancial ,innovation & ,te*nology = ! #ba/ ,c5tury ,act4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4 ,title ,i--,def9itions2 ,rulemak+2 ,notice ( ,int5t to ,regi/] ,sec4 #aja4 ,def9itions "u ! ,securities ,act ( #aicc4 ,sec4 #ajb4 ,def9itions "u ! ,commodity ,ex*ange ,act4 ,sec4 #ajc4 ,def9itions "u ?is ,act4 ,sec4 #ajd4 ,jo9t rulemak+s4 ,sec4 #aje4 ,notice ( int5t to regi/] = digital commodity ex*anges1 brok]s1 & deal]s4 ,sec4 #ajf4 ,notice ( int5t to regi/] = digital asset brok]s1 deal]s1 & trad+ sy/ems4 ,sec4 #ajg4 ,commodity ,ex*ange ,act sav+s provisions4 ,sec4 #ajh4 ,int]national h>monization4 ,sec4 #aji4 ,implem5tation4 ,title ,,ii--,digital ,asset ,exemptions ,sec4 #bja4 ,exempt$ transactions 9 digital assets4 ,sec4 #bjb4 ,requirem5ts to transact 9 c]ta9 digital assets4 ,sec4 #bjc4 ,enhanc$ disclosure requirem5ts4 ,sec4 #bjd4 ,c]tification ( c]ta9 digital assets4 ,sec4 #bje4 ,effective date4 ,title ,,iii--,regi/ration = ,digital ,asset ,int]m$i>ies at ! ,securities & ,ex*ange ,commission ,sec4 #cja4 ,treatm5t ( digital commodities & o!r digital assets4 ,sec4 #cjb4 ,antifraud au?ority ov] p]mitt$ paym5t /ableco9s4 ,sec4 #cjc4 ,regi/ration ( digital asset trad+ sy/ems4 ,sec4 #cjd4 ,requirem5ts = digital asset trad+ sy/ems4 ,sec4 #cje4 ,regi/ration ( digital asset brok]s & digital asset deal]s4 ,sec4 #cjf4 ,requirem5ts ( digital asset brok]s & digital asset deal]s4 ,sec4 #cjg4 ,rules relat$ to conflicts ( int]e/4 ,sec4 #cjh4 ,treatm5t ( c]ta9 digital assets 9 connection ) f$]ally regulat$ int]m$i>ies4 ,sec4 #cji4 ,dual regi/ration4 ,sec4 #caj4 ,exclusion = ancill>y activities4 ,sec4 #caa4 ,regi/ration & requirem5ts = notice-regi/]$ digital asset cle>+ ag5cies4 ,sec4 #cab4 ,treatm5t ( cu/ody activities by bank+ in/itutions4 ,title ,,iv--,regi/ration = ,digital ,asset ,int]m$i>ies at ! ,commodity ,futures ,trad+ ,commission ,sec4 #dja4 ,commission jurisdiction ov] digital commodity transactions4 ,sec4 #djb4 ,requir+ futures commission m]*ants to use qualifi$ digital commodity cu/odians4 ,sec4 #djc4 ,trad+ c]tification & approval = digital commodities4 ,sec4 #djd4 ,regi/ration ( digital commodity ex*anges4 ,sec4 #dje4 ,qualifi$ digital commodity cu/odians4 ,sec4 #djf4 ,regi/ration & regulation ( digital commodity brok]s & deal]s4 ,sec4 #djg4 ,regi/ration ( associat$ p]sons4 ,sec4 #djh4 ,regi/ration ( commodity pool op]ators & commodity trad+ advisors4 ,sec4 #dji4 ,exclusion = ancill>y activities4 ,sec4 #daj4 ,fund+ = implem5tation1 adm9i/ration1 & en=cem5t4 ,sec4 #daa4 ,effective date4 ,title ,v--,innovation & ,te*nology ,improvem5ts ,sec4 #eja4 ,codification ( ! ,,sec ,/rategic ,hub = ,innovation & ,f9ancial ,te*nology4 ,sec4 #ejb4 ,codification ( ,lab,c,f,t,c4 ,sec4 #ejc4 ,,cftc-,,sec ,jo9t ,advisory ,committee on ,digital ,assets4 ,sec4 #ejd4 ,mod]nization ( ! ,securities & ,ex*ange ,commission mission4 ,sec4 #eje4 ,/udy on dec5traliz$ f9ance4 ,sec4 #ejf4 ,/udy on non-fungible digital assets4 ,sec4 #ejg4 ,/udy on f9ancial m>ket infra/ructure improvem5ts4 ,i4 ,def9itions2 ,rulemak+2 ,notice ( ,int5t to ,regi/] #aja4 ,def9itions "u ! ,securities ,act ( #aicc ,section #b7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a77 is am5d$ by add+ at ! end ! foll[+3 7#bj7 ,affiliat$ p]sons ,! t]m affiliat$ p]son means a p]son 7includ+ a relat$ p]son7 t-- 7,a7 ) respect to a digital asset issu]-- 7i7 directly1 or indirectly ?r\gh "o or m int]m$i>ies1 controls1 or is controll$ by1 or is "u common control )1 su* digital asset issu]2 & 7ii7 0 describ$ "u clause 7i7 at any po9t 9 ! previ\s #c-mon? p]iod2 or 7,b7 ) respect to any digital asset-- 7i7 b5eficially owns #e p]c5t or m ( ! units ( su* digital asset t are !n out/&+2 & 7ii7 0 describ$ "u clause 7i7 at any po9t 9 ! previ\s #c-mon? p]iod4 7#ba7 ,block*a9 ,! t]m block*a9 means any te*nology-- 7,a7 :]e data is-- 7i7 %>$ across a network to create a public l$g] ( v]ifi$ transactions or in=mation among network p>ticipants2 7ii7 l9k$ us+ cryptography to ma9ta9 ! integrity ( ! public l$g] & to execute o!r functions2 & 7iii7 di/ribut$ among network p>ticipants 9 an automat$ fa%ion to concurr5tly update network p>ticipants on ! /ate ( ! public l$g] & any o!r functions2 & 7,b7 compos$ ( s\rce code t is publicly available4 7#bb7 ,block*a9 protocol ,! t]m block*a9 protocol means any executable s(tw>e deploy$ to a block*a9 compos$ ( s\rce code t is publicly available & accessible1 includ+ a sm>t contract or any network ( sm>t contracts4 7#bc7 ,block*a9 sy/em ,! t]m block*a9 sy/em means any block*a9 or block*a9 protocol4 7#bd7 ,dec5traliz$ network ,) respect to a block*a9 sy/em to :i* a digital asset relates1 ! t]m dec5traliz$ network means ! foll[+ conditions are met3 7,a7 ,dur+ ! previ\s #ab-mon? p]iod1 no p]son-- 7i7 _h ! unilat]al au?ority1 directly or indirectly1 ?r\gh any contract1 arrangem5t1 und]/&+1 relation%ip1 or o!rwise1 to control or mat]ially alt] ! functionality or op]ation ( ! block*a9 sy/em2 or 7ii7 _h ! unilat]al au?ority to re/rict or prohibit any p]son :o is n a digital asset issu]1 relat$ p]son1 or an affiliat$ p]son f-- 7,i7 us+1 e>n+1 or transmitt+ ! digital asset2 7,,ii7 deploy+ s(tw>e t uses or integrates ) ! block*a9 sy/em2 7,,iii7 p>ticipat+ 9 a dec5traliz$ gov]nance sy/em ) respect to ! block*a9 sy/em2 or 7,,iv7 op]at+ a node1 validator1 or o!r =m ( computational infra/ructure ) respect to ! block*a9 sy/em4 7,b7 ,dur+ ! previ\s #ab-mon? p]iod-- 7i7 no digital asset issu] or affiliat$ p]son b5eficially own$1 9 ! aggregate1 #bj p]c5t or m ( ! total am\nt ( units ( su* digital asset t-- 7,i7 c be creat$1 issu$1 or di/ribut$ 9 su* block*a9 sy/em2 & 7,,ii7 7 freely transf]rable or o!rwise us$ or available to be us$ = ! purposes ( su* block*a9 network2 7ii7 no digital asset issu] or affiliat$ p]son _h ! unilat]al au?ority to direct ! vot+1 9 ! aggregate1 ( #bj p]c5t or m ( ! out/&+ vot+ p[] ( su* digital asset or relat$ dec5traliz$ gov]nance sy/em2 or 7iii7 ! digital asset did n include vot+ p[]4 7,c7 ,dur+ ! previ\s #c-mon? p]iod1 ! digital asset issu]1 any affiliat$ p]son1 or any relat$ p]son has n implem5t$ or contribut$ any intellectual prop]ty to ! s\rce code ( ! block*a9 sy/em t mat]ially alt]s ! functionality or op]ation ( ! block*a9 sy/em1 unless su* implem5tation or contribution to ! s\rce code-- 7i7 address$ vuln]abilities1 errors1 regul> ma9t5ance1 cyb]security risks1 or o!r te*nical improvem5ts to ! block*a9 sy/em2 or 7ii7 7 adopt$ ?r\gh ! cons5sus or agreem5t ( a dec5traliz$ gov]nance sy/em4 7,d7 ,dur+ ! previ\s #c-mon? p]iod1 nei!r any digital asset issu] nor any affiliat$ p]son describ$ "u p>agraph 7#bj77;,a7 has m>ket$ to ! public ! digital assets z an inve/m5t4 7,e7 ,dur+ ! previ\s #ab-mon? p]iod1 all issuances ( units ( su* digital asset 7 end us] di/ributions made ?r\gh ! programmatic function+ ( ! block*a9 sy/em4 7#be7 ,dec5traliz$ gov]nance sy/em 7,a7 ,9 g5]al ,! t]m dec5traliz$ gov]nance sy/em means1 ) respect to a block*a9 sy/em1 any rules-bas$ sy/em p]mitt+ p]sons us+ ! block*a9 sy/em or ! digital assets relat$ to su* block*a9 sy/em to =m cons5sus or rea* agreem5t 9 ! developm5t1 provision1 publication1 managem5t1 or adm9i/ration ( su* block*a9 sy/em4 7,b7 ,relation%ip ( p]sons to dec5traliz$ gov]nance sy/ems ,p]sons act+ ?r\gh a dec5traliz$ gov]nance sy/em %all be treat$ z sep>ate p]sons unless su* p]sons are "u common control4 7,c7 ,exclusion ,! t]m dec5traliz$ gov]nance sy/em does n include a sy/em 9 :i*-- 7i7 a p]son or gr\p ( p]sons "u common control h ! ability to-- 7,i7 unilat]ally alt] ! rules ( cons5sus or agreem5t = ! block*a9 sy/em2 or 7,,ii7 det]m9e ! f9al outcome ( decisions relat$ to ! developm5t1 provision1 publication1 managem5t1 or adm9i/ration ( su* block*a9 sy/em2 7ii7 a p]son or gr\p ( p]sons is directly engag+ 9 an activity t requires regi/ration ) ! ,commission or ! ,commodity ,futures ,trad+ ,commission o!r ?an-- 7,i7 develop+1 provid+1 publi%+1 manag+1 or adm9i/]+ a block*a9 sy/em2 or 7,,ii7 an activity ) respect to :i* ! organization is exempt f su* regi/ration2 or 7iii7 a p]son or gr\p ( p]sons seek+ to kn[+ly evade ! requirem5ts impos$ on a digital asset issu]1 a relat$ p]son1 an affiliat$ p]son1 or any o!r p]son regi/]$ 7or requir$ to be regi/]$7 "u ?is ,act1 ! ,f9ancial ,innovation & ,te*nology = ! #ba/ ,c5tury ,act1 or ! ,commodity ,ex*ange ,act4 7#bf7 ,digital asset 7,a7 ,9 g5]al ,! t]m digital asset means any fungible digital repres5tation ( value t c be exclusively possess$ & transf]r$1 p]son to p]son1 )\t necess>y reliance on an int]m$i>y1 & is record$ on a cryptographically secur$ public di/ribut$ l$g]4 7,b7 ,exclusions ,! t]m digital asset does n include-- 7i7 any note1 /ock1 treasury /ock1 security future1 security-bas$ swap1 bond1 deb5ture1 evid5ce ( indebt$ness1 c]tificate ( int]e/ or p>ticipation 9 any pr(it-%>+ agreem5t1 collat]al-tru/ c]tificate1 preorganization c]tificate or subscription1 or transf]able %>e2 or 7ii7 any asset :i* repres5ts1 op]ates z ! functional equival5t (1 or o!rwise has emb$d$ functionality or *>act]i/ics :i* make x an agreem5t1 contract1 or transaction t is-- 7,i7 a contract ( sale ( a commodity 7z def9$ "u section #a;a ( ! ,commodity ,ex*ange ,act7 = future deliv]y or an option !reon2 7,,ii7 a security futures product2 7,,iii7 a swap2 7,,iv7 an agreem5t1 contract1 or transaction describ$ 9 section #b7;c77#b77;,c77i7 or #b7;c77#b77;,d77i7 ( ! ,commodity ,ex*ange ,act2 7,v7 a commodity option au?oriz$ "u section #d;c ( ! ,commodity ,ex*ange ,act2 or 7,,vi7 a lev]age transaction au?oriz$ "u section #ai ( ! ,commodity ,ex*ange ,act4 7,c7 ,relation%ip to a block*a9 sy/em ,a digital asset is consid]$ to relate to a block*a9 sy/em if ! digital asset is intr9sically l9k$ to ! block*a9 sy/em1 includ+-- 7i7 :]e ! digital asset's value is reasonably expect$ to be g5]at$ by ! programmatic function+ ( ! block*a9 sy/em2 7ii7 :]e ! asset has vot+ rights ) respect to ! block*a9 sy/em2 or 7iii7 :]e ! digital asset is issu$ ?r\gh ! programmatic function+ ( ! block*a9 sy/em4 7,d7 ,treatm5t ( c]ta9 digital assets sold pursuant to an inve/m5t contract ,a digital asset sold or transf]r$ or int5d$ to be sold or transf]r$ pursuant to an inve/m5t contract is n & does n become a security z a result ( be+ sold or o!rwise transf]r$ pursuant to t inve/m5t contract4 7#bg7 ,digital asset issu] ,) respect to a digital asset1 ! t]m digital asset issu]-- 7,a7 means-- 7i7 any p]son t1 9 ex*ange = any consid]ation-- 7,i7 issues or causes to be issu$ a unit ( su* digital asset to a p]son2 or 7,,ii7 (f]s or sells a "r to a future issuance ( a unit ( su* digital asset to a p]son2 or 7ii7 any p]son :o seeks to kn[+ly evade classification z a digital asset issu] & facilitate an arrangem5t = ! prim>y purpose ( effect+ a sale1 di/ribution1 or o!r issuance ( su* digital asset1 by-- 7,i7 ! grant+ ( a lic5se or assignm5t ( intellectual prop]ty2 7,,ii7 ! mak+ available ( free s(tw>e or op5 s\rce lic5ses2 or 7,,iii7 ! grant+ ( o!r rights or transf] ( assets mat]ial to execution ( su* sale1 di/ribution1 or o!r issuance2 & 7,b7 does n include any p]son solely because su* p]son1 = ! purpose ( su* p]son p>ticipat+ 9 op]ations ( a block*a9 sy/em1 deploys s\rce code to create units ( a digital asset :i* are inc5tive-bas$ rew>ds-- 7i7 to us]s ( ! digital asset or any block*a9 sy/em to :i* ! digital asset relates2 or 7ii7 = activities directly relat$ to ! op]ation ( ! block*a9 sy/em1 su* z m9+1 validat+1 /ak+1 or o!r activity directly ti$ to ! op]ation ( ! block*a9 sy/em4 7#bh7 ,digital asset maturity date ,! t]m digital asset maturity date means1 ) respect to any units ( a digital asset1 ! fir/ date on :i* #bj p]c5t or m ( ! total units ( su* digital asset t are !n out/&+ z ( su* date are-- 7,a7 digital commodities2 or 7,b7 digital assets t h be5 regi/]$ ) ! ,commission4 7#bi7 ,digital commodity ,! t]m digital commodity has ! mean+ giv5 t t]m "u section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a74 7#cj7 ,end us] di/ribution ,! t]m end us] di/ribution means an issuance ( a unit ( a digital asset t-- 7,a7 does n involve an ex*ange ( m ?an a nom9al value ( ca%1 prop]ty1 or o!r assets2 & 7,b7 is di/ribut$ 9 a broad1 equitable1 & non-discretion>y mann] bas$ on conditions capable ( be+ satisfi$ by any p>ticipant 9 ! block*a9 sy/em1 includ+1 z inc5tive-bas$ rew>ds-- 7i7 to us]s ( ! digital asset or any block*a9 sy/em to :i* ! digital asset relates2 7ii7 = activities directly relat$ to ! op]ation ( ! block*a9 sy/em1 su* z m9+1 validat+1 /ak+1 or o!r activity directly ti$ to ! op]ation ( ! block*a9 sy/em2 or 7iii7 to ! exi/+ hold]s ( ano!r digital asset1 9 proportion to ! total units ( su* o!r digital asset z are held by ea* p]son4 7#ca7 ,functional network ,) respect to a block*a9 sy/em to :i* a digital asset relates1 ! t]m functional network means ! network all[s network p>ticipants to use su* digital asset =-- 7,a7 ! transmission & /orage ( value on ! block*a9 sy/em2 7,b7 ! p>ticipation 9 s]vices provid$ by or an application runn+ on ! block*a9 sy/em2 or 7,c7 ! p>ticipation 9 gov]nance ( ! block*a9 sy/em4 7#cb7 ,p]mitt$ paym5t /ableco9 ,! t]m p]mitt$ paym5t /ableco9-- 7,a7 means a digital asset-- 7i7 t is or is design$ to be us$ z a means ( paym5t or settlem5t2 7ii7 ! issu] ( :i*-- 7,i7 is obligat$ to conv]t1 r$eem1 or repur*ase = a fix$ am\nt ( monet>y value2 & 7,,ii7 repres5ts w ma9ta9 or creates ! reasonable expectation t x w ma9ta9 a /able value relative to ! value ( a fix$ am\nt ( monet>y value2 & 7iii7 t is subject to regulation by a ,f$]al or ,/ate regulator ) au?ority ov] entities t issue paym5t /ableco9s2 & 7,b7 t is n-- 7i7 a national curr5cy2 or 7ii7 a security issu$ by an inve/m5t company regi/]$ "u section #h7;a7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#h7;a774 7#cc7 ,relat$ p]son ,) respect to a digital asset issu]1 ! t]m relat$ p]son means-- 7,a7 a f\nd]1 promot]1 employee1 consultant1 advisor1 or p]son s]v+ 9 a simil> capacity2 7,b7 any p]son t is or 0 9 ! previ\s #f-mon? p]iod an executive (fic]1 director1 tru/ee1 g5]al p>tn]1 advisory bo>d memb]1 or p]son s]v+ 9 a simil> capacity2 7,c7 any equity hold] or o!r security hold] ( a digital asset issu]2 or 7,d7 any o!r p]son t receiv$ a unit ( digital asset f su* digital asset issu] ?r\gh-- 7i7 an exempt (f]+1 o!r ?an an (f]+ made 9 reliance on section #d7;a77#h72 or 7ii7 a di/ribution t is n an end us] di/ribution describ$ "u section #db7;d77#a7 ( ! ,securities ,ex*ange ,act ( #aicd4 7#cd7 ,re/rict$ digital asset 7,a7 ,9 g5]al ,! t]m re/rict$ digital asset means-- 7i7 any unit ( a digital asset held by a p]son1 o!r ?an a digital asset issu]1 a relat$ p]son1 or an affiliat$ p]son1 prior to ! fir/ date on :i* ea* block*a9 sy/em to :i* ! digital asset relates is a functional network & c]tifi$ to be a dec5traliz$ network "u section #dd ( ! ,securities ,ex*ange ,act ( #aicd1 t 0-- 7,i7 issu$ to su* p]son ?r\gh a di/ribution1 o!r ?an an end us] di/ribution describ$ "u section #db7;d77#a7 ( ! ,securities ,ex*ange ,act ( #aicd2 or 7,,ii7 acquir$ by su* p]son 9 a transaction t 0 n execut$ on a digital commodity ex*ange2 7ii7 any digital asset held by a relat$ p]son or an affiliat$ p]son dur+ any p]iod :5 any block*a9 sy/em to :i* ! digital asset relates is n a functional network or n c]tifi$ to be a dec5traliz$ network "u section #dd ( ! ,securities ,ex*ange ,act ( #aicd2 or 7iii7 any unit ( a digital asset held by ! digital asset issu]4 7,b7 ,exclusion ,! t]m re/rict$ digital asset does n include a p]mitt$ paym5t /ableco94 7#ce7 ,securities laws ,! t]m securities laws has ! mean+ giv5 t t]m "u section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a774 7#cf7 ,s\rce code ,) respect to a block*a9 sy/em1 ! t]m s\rce code means a li/+ ( comm&s to be compil$ or assembl$ into an executable comput] program4 4 #ajb4 ,def9itions "u ! ,commodity ,ex*ange ,act ,section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a7 is am5d$-- 7#a7 9 p>agraph 7#aj77;,a7-- 7,a7 by r$esignat+ clauses 7iii7 & 7iv7 z clauses 7iv7 & 7v71 respectively2 & 7,b7 by ins]t+ aft] clause 7ii7 ! foll[+3 7iii7 digital commodity2 2 7#b7 9 p>agraph 7#aa7-- 7,a7 9 subp>agraph 7,a77i7-- 7i7 by r$esignat+ subclauses 7,,iii7 & 7,,iv7 z subclauses 7,,iv7 & 7,v71 respectively2 & 7ii7 by ins]t+ aft] subclause 7,,ii7 ! foll[+3 7,,iii7 digital commodity2 2 & 7,b7 by r$esignat+ subp>agraph 7,b7 z subp>agraph 7,c7 & ins]t+ aft] subp>agraph 7,a7 ! foll[+3 7,b7 ,exclusion ,! t]m commodity pool op]ator does n include-- 7i7 a dec5traliz$ gov]nance sy/em2 or 7ii7 ancill>y activities1 z def9$ 9 section #dv4 2 7#c7 9 p>agraph 7#ab77;,a77i7-- 7,a7 9 subclause 7,,ii71 by add+ at ! end a semicolon2 7,b7 by r$esignat+ subclauses 7,,iii7 & 7,,iv7 z subclauses 7,,iv7 & 7,v71 respectively2 & 7,c7 by ins]t+ aft] subclause 7,,ii7 ! foll[+3 7,,iii7 a digital commodity2 2 7#d7 9 p>agraph 7#dj7-- 7,a7 by /rik+ & at ! end ( subp>agraph 7,e72 7,b7 by /rik+ ! p]iod at ! end ( subp>agraph 7,f7 & ins]t+ 2 &2 & 7,c7 by add+ at ! end ! foll[+3 7,g7 a digital commodity ex*ange regi/]$ "u section #e;i4 2 & 7#e7 by add+ at ! end ! foll[+3 7#eb7 ,associat$ p]son ( a digital commodity brok] 7,a7 ,9 g5]al ,except z provid$ 9 subp>agraph 7,b71 ! t]m associat$ p]son ( a digital commodity brok] means a p]son :o is associat$ ) a digital commodity brok] z a p>tn]1 (fic]1 employee1 or ag5t 7or any p]son occupy+ a simil> /atus or p]=m+ simil> functions7 9 any capacity t involves-- 7i7 ! solicitation or acceptance ( a contract ( sale ( a digital commodity2 or 7ii7 ! sup]vision ( any p]son engag$ 9 ! solicitation or acceptance ( a contract ( sale ( a digital commodity4 7,b7 ,exclusion ,! t]m associat$ p]son ( a digital commodity brok] does n include any p]son associat$ ) a digital commodity brok] ! functions ( :i* are solely cl]ical or m9i/]ial4 7#ec7 ,associat$ p]son ( a digital commodity deal] 7,a7 ,9 g5]al ,except z provid$ 9 subp>agraph 7,b71 ! t]m associat$ p]son ( a digital commodity deal] means a p]son :o is associat$ ) a digital commodity deal] z a p>tn]1 (fic]1 employee1 or ag5t 7or any p]son occupy+ a simil> /atus or p]=m+ simil> functions7 9 any capacity t involves-- 7i7 ! solicitation or acceptance ( a contract ( sale ( a digital commodity2 or 7ii7 ! sup]vision ( any p]son engag$ 9 ! solicitation or acceptance ( a contract ( sale ( a digital commodity4 7,b7 ,exclusion ,! t]m associat$ p]son ( a digital commodity deal] does n include any p]son associat$ ) a digital commodity deal] ! functions ( :i* are solely cl]ical or m9i/]ial4 7#ed7 ,bank ,secrecy ,act ,! t]m ,bank ,secrecy ,act means-- 7,a7 section #ba ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbi;b72 7,b7 *apt] #b ( title ,i ( ,public ,law #ia-ejh 7#ab ,u4,s4,c4 #aiea et seq472 & 7,c7 sub*apt] ,,ii ( *apt] #ec ( title #ca1 ,unit$ ,/ates ,code4 7#ee7 ,digital commodity 7,a7 ,9 g5]al ,! t]m digital commodity means-- 7i7 any unit ( a digital asset held by a p]son1 o!r ?an ! digital asset issu]1 a relat$ p]son1 or an affiliat$ p]son1 be=e ! fir/ date on :i* ea* block*a9 sy/em to :i* ! digital asset relates is a functional network & c]tifi$ to be a dec5traliz$ network "u section #dd ( ! ,securities ,ex*ange ,act ( #aicd1 t 0-- 7,i7 issu$ to ! p]son ?r\gh an end us] di/ribution describ$ "u section #db7;d77#a7 ( ! ,securities ,ex*ange ,act ( #aicd2 or 7,,ii7 acquir$ by su* p]son 9 a transaction t 0 execut$ on a digital commodity ex*ange2 or 7ii7 any unit ( a digital asset held by a p]son1 o!r ?an ! digital asset issu]1 a relat$ p]son1 or an affiliat$ p]son1 aft] ! fir/ date on :i* ea* block*a9 sy/em to :i* ! digital asset relates is a functional network & c]tifi$ to be a dec5traliz$ network "u section #dd ( ! ,securities ,ex*ange ,act ( #aicd2 & 7iii7 any unit ( a digital asset held by a relat$ p]son or an affiliat$ p]son dur+ any p]iod :5 any block*a9 sy/em to :i* ! digital asset relates is a functional network & c]tifi$ to be a dec5traliz$ network "u section #dd ( ! ,securities ,ex*ange ,act ( #aicd4 7,b7 ,exclusion ,! t]m digital commodity does n include a p]mitt$ paym5t /ableco94 7#ef7 ,digital commodity brok] 7,a7 ,9 g5]al ,! t]m digital commodity brok] means any p]son :o1 9 a digital commodity ca% or spot m>ket1 is-- 7i7 engag$ 9 solicit+ or accept+ ord]s = ! pur*ase or sale ( a unit ( a digital commodity f a p]son t is n an eligible contract p>ticipant2 7ii7 engag$ 9 solicit+ or accept+ ord]s = ! pur*ase or sale ( a unit ( a digital commodity f a p]son on or subject to ! rules ( a regi/]$ entity2 or 7iii7 regi/]$ ) ! ,commission z a digital commodity brok]4 7,b7 ,exceptions ,! t]m digital commodity brok] does n include a p]son solely because ! p]son-- 7i7 ent]s into a digital commodity transaction ! prim>y purpose ( :i* is to make1 s5d1 receive1 or facilitate paym5ts1 :e!r involv+ a paym5t s]vice provid] or on a pe]-to-pe] basis2 or 7ii7 validates a digital commodity transaction1 op]ates a node1 or engages 9 simil> activity to p>ticipate 9 facilitat+1 op]at+1 or secur+ a block*a9 sy/em4 7#eg7 ,digital commodity cu/odian ,! t]m digital commodity cu/odian means an entity 9 ! bus9ess ( hold+1 ma9ta9+1 or safegu>d+ digital commodities4 7#eh7 ,digital commodity deal] 7,a7 ,9 g5]al ,! t]m digital commodity deal] means any p]son :o-- 7i7 9 digital commodity ca% or spot m>kets-- 7,i7 holds itself out z a deal] 9 a digital commodity2 7,,ii7 makes a m>ket 9 a digital commodity2 7,,iii7 regul>ly ent]s into digital commodity transactions ) c\nt]p>ties z an ord9>y c\rse ( bus9ess = its own acc\nt2 or 7,,iv7 engages 9 any activity caus+ ! p]son to be commonly kn[n 9 ! trade z a deal] or m>ket mak] 9 a digital commodity2 7ii7 regul>ly ent]s into any agreem5t1 contract1 or transaction describ$ 9 subsection 7c77#b77;,d77i7 involv+ a digital commodity2 or 7iii7 is regi/]$ ) ! ,commission z a digital commodity deal]4 7,b7 ,exception ,! t]m digital commodity deal] does n include a p]son solely because ! p]son-- 7i7 ent]s into a digital commodity transaction ) an eligible contract p>ticipant2 7ii7 ent]s into a digital commodity transaction on or ?r\gh a regi/]$ digital commodity ex*ange2 7iii7 ent]s into a digital commodity transaction = ! p]son's own acc\nt1 ei!r individually or 9 a fiduci>y capacity1 b n z a "p ( a regul> bus9ess2 7iv7 ent]s into a digital commodity transaction ! prim>y purpose ( :i* is to make1 s5d1 receive1 or facilitate paym5ts1 :e!r involv+ a paym5t s]vice provid] or on a pe]-to-pe] basis2 or 7v7 validates a digital commodity transaction1 op]ates a node1 or engages 9 simil> activity to p>ticipate 9 facilitat+1 op]at+1 or secur+ a block*a9 sy/em4 7#ei7 ,digital commodity ex*ange ,! t]m digital commodity ex*ange means a trad+ facility t (f]s or seeks to (f] a ca% or spot m>ket 9 at lea/ #a digital commodity4 7#fj7 ,digital asset-relat$ def9itions 7,a7 ,securities ,act ( #aicc ,! t]ms affiliat$ p]son1 block*a9 sy/em1 dec5traliz$ gov]nance sy/emdec5traliz$ network1 digital asset1 digital asset issu]1 end us] di/ribution1 functional network1 p]mitt$ paym5t /ableco91 relat$ p]son1 & re/rict$ digital asset h ! mean+ giv5 ! t]ms1 respectively1 "u section #b7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a774 7,b7 ,securities ,ex*ange ,act ( #aicd ,! t]ms digital asset brok] & digital asset deal] h ! mean+ giv5 ^? t]ms1 respectively1 "u section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a774 7#fa7 ,mix$ digital asset transaction ,! t]m mix$ digital asset transaction has ! mean+ giv5 t t]m "u section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a774 4 #ajc4 ,def9itions "u ?is ,act ,9 ?is ,act3 7#a7 ,def9itions "u ! ,commodity ,ex*ange ,act ,! t]ms digital commodity1 digital commodity brok]1 digital commodity deal]1 & digital commodity ex*ange h ! mean+ giv5 ^? t]ms1 respectively1 "u section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a74 7#b7 ,def9itions "u ! ,securities ,act ( #aicc ,! t]ms affiliat$ p]son1 block*a91 block*a9 sy/em1 block*a9 protocol1 dec5traliz$ network1 digital asset1 digital asset issu]1 digital asset maturity date1 digital asset trad+ sy/em1 end us] di/ribution1 functional network1 p]mitt$ paym5t /ableco91 re/rict$ digital asset1 securities laws1 & s\rce code h ! mean+ giv5 ^? t]ms1 respectively1 "u section #b7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a774 7#c7 ,def9itions "u ! ,securities ,ex*ange ,act ( #aicd ,! t]ms ,bank ,secrecy ,act1 digital asset brok]1 digital asset deal]1 digital asset trad+ sy/em1 mix$ digital asset transaction1 & self-regulatory organization h ! mean+ giv5 ^? t]ms1 respectively1 "u section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a774 #ajd4 ,jo9t rulemak+s 7a7 ,def9itions ,! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all1 jo9tly1 issue rules to fur!r def9e ! foll[+ t]ms3 7#a7 ,! t]ms affiliat$ p]son1 block*a91 block*a9 sy/em1 block*a9 protocol1 dec5traliz$ network1 dec5traliz$ gov]nance sy/em1 digital asset1 digital asset issu]1 digital asset maturity date1 end us] di/ribution1 functional network1 relat$ p]son1 re/rict$ digital asset1 & s\rce code1 z def9$ "u section #b7;a7 ( ! ,securities ,act ( #aicc4 7#b7 ,! t]m mix$ digital asset transaction1 z def9$ "u section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd4 7#c7 ,! t]m digital commodity1 z def9$ "u section #a;a ( ! ,commodity ,ex*ange ,act4 7b7 ,jo9t rulemak+ = ex*anges ,! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all1 jo9tly1 issue rules to exempt p]sons dually regi/]$ ) ! ,commodity ,futures ,trad+ ,commission z a digital commodity ex*ange & ) ! ,securities & ,ex*ange ,commission z a digital asset trad+ sy/em f duplicative1 conflict+1 or unduly burd5some provisions ( ?is ,act1 ! securities laws1 & ! ,commodity ,ex*ange ,act & ! rules !reund]1 to ! ext5t su* exemption w\ld fo/] ! developm5t ( fair & ord]ly m>kets 9 digital assets1 be necess>y or appropriate 9 ! public int]e/1 & be consi/5t ) ! protection ( inve/ors4 7c7 ,jo9t rulemak+ = mix$ digital asset transactions ,! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all1 jo9tly1 issue rules applicable to mix$ digital asset transactions "u ?is ,act & ! am5dm5ts made by ?is ,act4 7d7 ,protection ( self-cu/ody 7#a7 ,9 g5]al ,! ,f9ancial ,crimes ,en=cem5t ,network may n issue any rule or ord] t w\ld prohibit a ,u4,s4 individual f-- 7,a7 ma9ta9+ a h>dw>e wallet1 s(tw>e wallet1 or o!r means to facilitate su* individual's own cu/ody ( digital assets2 or 7,b7 conduct+ transactions & self-cu/ody ( digital assets = any lawful purpose4 7#b7 ,rule ( con/ruction ,p>agraph 7#a7 may n be con/ru$ to limit ! ability ( ,f9ancial ,crimes ,en=cem5t ,network to c>ry out any en=cem5t au?ority4 #aje4 ,notice ( int5t to regi/] = digital commodity ex*anges1 brok]s1 & deal]s 7a7 ,9 g5]al 7#a7 ,notice ( int5t to regi/] ,any p]son may file a notice ( int5t to regi/] ) ! ,commodity ,futures ,trad+ ,commission 79 ?is subsection ref]r$ to z ! ,commission7 z a-- 7,a7 digital commodity ex*ange1 = a p]son int5d+ to regi/] z a digital commodity ex*ange "u section #e;i ( ! ,commodity ,ex*ange ,act2 7,b7 digital commodity brok]1 = a p]son int5d+ to regi/] z a digital commodity brok] "u section #du ( su* ,act2 7,c7 digital commodity deal]1 = a p]son int5d+ to regi/] z a digital commodity deal] "u section #du ( su* ,act2 or 7,d7 associat$ p]son1 = a p]son int5d+ to regi/] "u section #dk7#d7 ( su* ,act4 7#b7 ,fil+ ,a p]son1 o!r ?an a p]son describ$ 9 p>agraph 7#a77;,d71 desir+ to file a notice ( int5t to regi/] "u p>agraph 7#a7 %all be 9 compliance ) ?is section if ! p]son submits to ! ,commission-- 7,a7 a /atem5t ( ! nature ( ! regi/rations ! fil] int5ds to pursue2 7,b7 ! in=mation requir$ by subsections 7b7 & 7c74 7b7 ,disclosure ( g5]al in=mation ,a p]son fil+ a notice ( int5t to regi/] "u subsection 7a7 %all disclose to ! ,commission ! foll[+3 7#a7 ,in=mation conc]n+ ! managem5t ( ! p]son1 includ+ in=mation describ+-- 7,a7 ! own]%ip & managem5t ( ! p]son2 7,b7 ! f9ancial condition ( ! p]son2 7,c7 affiliat$ entities2 7,d7 pot5tial conflicts ( int]e/2 & 7,e7 ! physical address ( ! p]son4 7#b7 ,in=mation conc]n+ ! op]ations ( ! p]son1 includ+-- 7,a7 any rulebook or o!r cu/om] ord] fulfilm5t rules2 7,b7 risk managem5t proc$ures2 & 7,c7 a description ( ! product li/+ process4 7c7 ,asset & li/+ in=mation ,a p]son fil+ a notice ( int5t to regi/] "u subsection7a7 %all provide to ! ,commission & ! ,securities & ,ex*ange ,commission a detail$ description (--4 7#a7 ! specific *>act]i/ics ( ea* asset li/$ or (f]$ = trad+ by ! p]son1 includ+ in=mation reg>d+ ! assets m>ket activity1 tok5 di/ribution1 & functional use2 7#b7 ! product li/+ det]m9ation made by ! p]son = ea* asset li/$ or (f]$ = trad+ by ! p]son4 7d7 ,requirem5ts ,a p]son fil+ a notice ( int5t to regi/] "u subsection 7a7 %all comply ) ! foll[+ requirem5ts3 7#a7 ,regi/]$ futures association ,! p]son %all be a memb] ( a futures association regi/]$ "u section #ag ( ! ,commodity ,ex*ange ,act1 & %all comply ) ! rules ( ! association1 includ+ ! rules ( ! association p]ta9+ to cu/om] disclosures & protection ( cu/om] assets4 7#b7 ,books & records ,! p]son %all keep _! books & records op5 to inspection & exam9ation by ! ,commission4 7#c7 ,cu/om] disclosures ,! p]son %all disclose to cu/om]s-- 7,a7 in=mation ab\t ! mat]ial risks & *>act]i/ics ( ! assets li/$ = trad+ on ! p]son2 7,b7 in=mation ab\t ! mat]ial risks & *>act]i/ics ( ! transactions facilitat$ by ! p]son2 7,c7 in=mation ab\t ! location & mann] 9 :i* ! digital assets ( ! cu/om] w be & are cu/odi$2 & 7,d7 9 _! disclosure docum5ts1 (f]+ docum5ts1 & promotional mat]ial-- 7i7 9 a prom95t mann]1 t !y are n regi/]$ ) or regulat$ by ! ,commission2 & 7ii7 ! contact in=mation = ! :i/lebl[]1 compla9t1 & rep>ation programs ( ! ,commission4 7#d7 ,cu/om] assets 7,a7 ,9 g5]al ,! p]son %all-- 7i7 hold cu/om] money1 assets1 & prop]ty 9 a mann] to m9imize ! risk ( loss to ! cu/om] or unreasonable delay 9 cu/om] access to money1 assets1 & prop]ty ( ! cu/om]2 7ii7 treat & deal ) all money1 assets1 & prop]ty1 includ+ any rights associat$ ) any su* money1 assets1 or prop]ty1 ( any cu/om] receiv$ z belong+ to ! cu/om]2 7iii7 calculate ! total digital asset obligations ( ! p]son1 & at all times hold money1 assets1 or prop]ty equal to or 9 excess ( ! total digital asset obligations2 & 7iv7 n comm+le su* money1 assets & prop]ty held to meet ! total commodity obligation ) ! funds ( ! p]son or use ! money1 assets1 or prop]ty to m>g91 secure1 or gu>antee any trade or contract1 or to secure or ext5d ! cr$it1 ( any cu/om] or p]son o!r ?an ! "o = :om ! same are held1 except t-- 7,i7 ! money1 assets1 & prop]ty ( any cu/om] may be comm+l$ ) t ( any o!r cu/om]1 if sep>ately acc\nt$ =2 & 7,,ii7 ! %>e ( ! money1 assets1 & prop]ty1 z 9 ! normal c\rse ( bus9ess are necess>y to m>g91 gu>antee1 secure1 transf]1 adju/1 or settle a contract ( sale ( a commodity asset1 may be )drawn & appli$ to d s1 includ+ ! paym5t ( commissions1 brok]age1 int]e/1 taxes1 /orage1 & o!r *>ges lawfully accru+ 9 connection ) ! contract ( sale ( a digital commodity4 7,b7 ,additional res\rces 7i7 ,9 g5]al ,?is section %all n prev5t or be con/ru$ to prev5t ! p]son f add+ to ! cu/om] money1 assets1 & prop]ty requir$ to be segregat$ "u subp>agraph 7,a71 additional am\nts ( money1 assets1 or prop]ty f ! acc\nt ( ! p]son z ! p]son det]m9es necess>y to hold money1 assets1 or prop]ty equal to or 9 excess ( ! total digital asset obligations ( ! p]son4 7ii7 ,treatm5t z cu/om] funds ,any money1 assets1 or prop]ty deposit$ pursuant to clause 7i7 %all be consid]$ cu/om] prop]ty )9 ! mean+ ( ?is subsection4 7e7 ,compliance 7#a7 ,9 g5]al ,a p]son :o has fil$ a notice ( int5t to regi/] "u ?is section & is 9 compliance ) ?is section %all be exempt f ,securities & ,ex*ange ,commission rules & regulations p]ta9+ to regi/]+ z a national securities ex*ange1 brok]1 deal]1 or cle>+ ag5cy1 = activities relat$ to a digital asset deem$ a security4 7#b7 ,noncompliance ,p>agraph 7#a7 %all n apply if1 aft] notice f ! ,commission & a reasonable opportunity to correct ! defici5cy1 a p]son :o has submitt$ a notice ( int5t to regi/] is n 9 compliance ) ?is section4 7#c7 ,anti-fraud & anti-manipulation ,p>agraph 7#a7 %all n be con/ru$ to limit any anti-fraud1 anti-manipulation1 or false report+ en=cem5t au?ority ( ! ,commission or ! ,securities & ,ex*ange ,commission4 7#d7 ,deli/+ ,p>agraph 7#a7 %all n be con/ru$ to limit ! au?ority ( ! ,commission & ! ,securities & ,ex*ange ,commission to jo9tly require a p]son to deli/ an asset = trad+ if ! ,commission & ! ,securities & ,ex*ange ,commission det]m9es t ! li/+ is inconsi/5t ) ! ,commodity ,ex*ange ,act1 ! securities laws 7includ+ regulations "u ^? laws71 or ?is ,act4 7f7 ,f9al regi/ration 7#a7 ,9 g5]al ,a p]son may n file a notice ( int5t to regi/] ) ! ,commission aft] ! ,commission has f9aliz$ its rules = ! regi/ration ( digital commodity ex*anges1 digital commodity brok]s1 or digital commodity deal]s1 z appropriate4 7#b7 ,transition to f9al regi/ration ,subsection 7e77#a7 %all n apply to a p]son :o has submitt$ a notice ( int5t to regi/] if-- 7,a7 ! ,commission-- 7i7 det]m9es t ! p]son has fail$ to comply ) ! requirem5ts ( ?is section2 or 7ii7 d5ies ! application ( ! p]son to regi/]2 or 7,b7 ! digital commodity ex*ange1 digital commodity brok]1 or digital commodity deal] t fil$ a notice ( int5t to regi/] fail$ to apply = regi/ration z su* ) ! ,commission )9 #ahj days aft] ! effective date ( ! f9al rules ( ! ,commission = ! regi/ration ( digital commodity ex*anges1 digital commodity brok]s1 or digital commodity deal]s1 z appropriate4 7g7 ,liability ( ! fil] ,x %all be unlawful = any p]son to provide false in=mation 9 support ( a fil+ "u ?is section if ! p]son knew or reasonably %\ld h kn[n t ! in=mation 0 false4 7h7 ,regi/]$ futures association ,)9 #ahj days aft] ! date ( ! enactm5t ( ?is ,act1 a regi/]$ futures association %all adopt rules = memb]%ip 9 ! association = p]sons requir$ to be memb]s ( ! association "u subsection 7d77#a74 #ajf4 ,notice ( int5t to regi/] = digital asset brok]s1 deal]s1 & trad+ sy/ems 7a7 ,9 g5]al 7#a7 ,notice ( int5t to regi/] ,any p]son may file a notice ( int5t to regi/] ) ! ,securities & ,ex*ange ,commission 79 ?is subsection ref]r$ to z ! ,commission7 z a-- 7,a7 digital asset trad+ sy/em1 = a p]son int5d+ to regi/] z a digital asset trad+ sy/em "u section #f7m7 ( ! ,securities ,ex*ange ,act ( #aicd2 7,b7 digital asset brok]1 = a p]son int5d+ to regi/] z a digital asset brok] "u section #ae;,h ( ! ,securities ,ex*ange ,act ( #aicd2 or 7,c7 digital asset deal]1 = a p]son int5d+ to regi/] z a digital asset deal] "u section #ae;,h ( ! ,securities ,ex*ange ,act ( #aicd4 7#b7 ,fil+ ,a p]son desir+ to file a notice ( int5t to regi/] "u p>agraph 7#a7 %all be 9 compliance ) ?is section if ! p]son submits to ! ,commission-- 7,a7 a /atem5t ( ! nature ( ! regi/rations ! fil] int5ds to pursue2 7,b7 ! in=mation requir$ by subsections 7b7 & 7c74 7b7 ,disclosure ( g5]al in=mation ,a p]son fil+ a notice ( int5t to regi/] "u subsection 7a7 %all disclose to ! ,commission ! foll[+3 7#a7 ,in=mation conc]n+ ! managem5t ( ! p]son1 includ+ in=mation describ+-- 7,a7 ! own]%ip & managem5t ( ! p]son2 7,b7 ! f9ancial condition ( ! p]son2 7,c7 affiliat$ entities2 & 7,d7 pot5tial conflicts ( int]e/4 7#b7 ,in=mation conc]n+ ! op]ations ( ! p]son1 includ+-- 7,a7 any rulebook or o!r cu/om] ord] fulfilm5t rules2 7,b7 risk managem5t proc$ures2 & 7,c7 a description ( ! product li/+ process4 7c7 ,li/+ in=mation ,a p]son fil+ a notice ( int5t to regi/] "u subsection 7a7 %all provide to ! ,commission & ! ,commodity ,futures ,trad+ ,commission a detail$ description ( ! product li/+ det]m9ation made by ! p]son = ea* asset li/$ or (f]$ = trad+ by ! p]son4 7d7 ,requirem5ts ,a p]son fil+ a notice ( int5t to regi/] "u subsection 7a7 %all comply ) ! foll[+ requirem5ts3 7#a7 ,books & records ,! p]son %all keep _! books & records op5 to inspection & exam9ation by ! ,commission4 7#b7 ,cu/om] disclosures ,! p]son %all disclose to consum]s-- 7,a7 in=mation ab\t ! mat]ial risks & *>act]i/ics ( ! assets li/$ = trad+ on ! p]son2 & 7,b7 in=mation ab\t ! mat]ial risks & *>act]i/ics ( ! transactions facilitat$ by ! p]son4 7#c7 ,cu/om] assets 7,a7 ,9 g5]al ,! p]son %all-- 7i7 hold cu/om] money1 assets1 & prop]ty 9 a mann] to m9imize ! risk ( loss to ! cu/om] or unreasonable delay 9 cu/om] access to money1 assets1 & prop]ty ( ! cu/om]2 7ii7 treat & deal ) all money1 assets1 & prop]ty1 includ+ any rights associat$ ) any su* money1 assets1 or prop]ty1 ( any cu/om] receiv$ z belong+ to ! cu/om]2 7iii7 segregate all money1 assets1 & prop]ty receiv$ f any cu/om] ( ! p]son f ! funds ( ! p]son1 except t-- 7,i7 ! money1 assets1 & prop]ty ( any cu/om] may be comm+l$ ) t ( any o!r cu/om]1 if sep>ately acc\nt$ =2 & 7,,ii7 ! %>e ( ! money1 assets1 & prop]ty1 z 9 ! normal c\rse ( bus9ess are necess>y to m>g91 gu>antee1 secure1 transf]1 adju/1 or settle a contract ( sale ( a commodity asset1 may be )drawn & appli$ to d s1 includ+ ! paym5t ( commissions1 brok]age1 int]e/1 taxes1 /orage1 & o!r *>ges lawfully accru+ 9 connection ) ! contract ( sale ( a digital commodity4 7,b7 ,additional res\rces 7i7 ,9 g5]al ,?is section %all n prev5t or be con/ru$ to prev5t ! p]son f add+ to ! cu/om] money1 assets1 & prop]ty requir$ to be segregat$ "u subp>agraph 7,a7 additional am\nts ( money1 assets1 or prop]ty f ! acc\nt ( ! p]son z ! p]son det]m9es necess>y to prev5t ! acc\nt ( a cu/om] f becom+ "u-segregat$4 7ii7 ,treatm5t z cu/om] funds ,any money1 assets1 or prop]ty deposit$ pursuant to clause 7i7 %all be consid]$ cu/om] prop]ty )9 ! mean+ ( ?is subsection4 7e7 ,compliance & en=cem5t 7#a7 ,9 g5]al ,a p]son :o has fil$ a notice ( int5t to regi/] "u ?is section & is 9 compliance ) ?is section %all n be subject to an en=cem5t action by ! ,commission =-- 7,a7 li/+ or (f]+ a digital asset deem$ a security2 or 7,b7 fail+ to regi/] z a national securities ex*ange1 alt]native trad+ sy/em1 brok]1 deal]1 or cle>+ ag5cy1 = activities relat$ to digital assets deem$ a security4 7#b7 ,noncompliance ,p>agraph 7#a7 %all n apply if1 aft] notice f ! ,commission & a reasonable opportunity to correct ! defici5cy1 a p]son :o has submitt$ a notice ( int5t to regi/] is n 9 compliance ) ?is section4 7#c7 ,antifraud & antimanipulation ,p>agraph 7#a7 %all n be con/ru$ to limit any antimanipulation1 antifraud1 or false report+ en=cem5t au?ority ( ! ,commission or ! ,commodity ,futures ,trad+ ,commission4 7#d7 ,deli/+ ,p>agraph 7#a7 %all n be con/ru$ to limit ! au?ority ( ! ,commission or ! ,commodity ,futures ,trad+ ,commission to require a p]son to deli/ an asset = trad+ if ! ,commission or ! ,commodity ,futures ,trad+ ,commission det]m9es t ! li/+ is inconsi/5t ) ! ,commodity ,ex*ange ,act1 ! securities laws 7includ+ regulations "u ^? laws71 or ?is ,act4 7f7 ,f9al regi/ration 7#a7 ,9 g5]al ,a p]son may n file a notice ( int5t to regi/] ) ! ,commission aft] ! ,commission has f9aliz$ its rules = ! regi/ration ( digital asset brok]s1 digital asset deal]s1 & digital asset trad+ sy/ems1 z appropriate4 7#b7 ,transition to f9al regi/ration 7,a7 ,ongo+ def]ral = entities regi/]$ ) ! ,commission ,subsection 7e77#a7 %all cont9ue to apply to a p]son :o has submitt$ a notice ( int5t to regi/] :ile ! p]son is regi/]$ ) ! ,commission z a digital asset brok]1 digital asset deal]1 or digital asset trad+ sy/em1 z appropriate4 7,b7 ,end ( def]ral ,subsection 7e77#a7 %all n apply to a p]son :o has submitt$ a notice ( int5t to regi/] if-- 7i7 ! ,commission-- 7,i7 det]m9es t ! p]son has fail$ to comply ) ! requirem5ts ( ?is section2 or 7,,ii7 d5ies ! application ( ! p]son to regi/]2 or 7ii7 ! digital asset brok]1 digital asset deal]1 or digital asset trad+ sy/em t fil$ a notice ( int5t to regi/] fail$ to regi/] z su* ) ! ,commission )9 #ahj days aft] ! ,commission f9aliz$ ! rules ( ! ,commission = ! regi/ration ( digital asset brok]s1 digital asset deal]s1 & digital asset trad+ sy/ems1 z appropriate4 7g7 ,liability ( ! fil] ,x %all be unlawful = any p]son to provide false in=mation 9 support ( a fil+ "u ?is section if ! p]son kn[+ly or reasonably %\ld h kn[n t ! in=mation 0 false4 #ajg4 ,commodity ,ex*ange ,act sav+s provisions 7a7 ,9 g5]al ,no?+ 9 ?is ,act %all affect or apply to1 or be int]pret$ to affect or apply to-- 7#a7 any agreem5t1 contract1 or transaction t is subject to ! ,commodity ,ex*ange ,act z-- 7,a7 a contract ( sale ( a commodity = future deliv]y or an option on su* a contract2 7,b7 a swap2 7,c7 a security futures product2 7,d7 an option au?oriz$ "u section #d;c ( su* ,act2 7,e7 an agreem5t1 contract1 or transaction describ$ 9 section #b7;c77#b77;,c77i7 ( su* ,act2 or 7,f7 a lev]age transaction au?oriz$ "u section #ai ( su* ,act2 or 7#b7 ! activities ( any p]son ) respect to any su* agreem5t1 contract1 or transaction4 7b7 ,prohibitions on spot digital commodity entities ,no?+ 9 ?is ,act au?orizes1 or %all be int]pret$ to au?orize1 a digital commodity ex*ange1 digital commodity brok]1 or digital commodity deal] to engage 9 any activities involv+ any transaction1 contract1 or agreem5t describ$ 9 subsection 7a77#a71 solely by virtue ( be+ regi/]$ or fil+ notice ( int5t to regi/] z a digital commodity ex*ange1 digital commodity brok]1 or digital commodity deal]4 7c7 ,def9itions ,9 ?is section1 ea* t]m %all h ! mean+ provid$ 9 ! ,commodity ,ex*ange ,act or ! regulations prescrib$ "u su* ,act4 #ajh4 ,int]national h>monization ,9 ord] to promote effective & consi/5t global regulation ( digital assets1 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission1 z appropriate-- 7#a7 %all consult & coord9ate ) =eign regulatory au?orities on ! e/abli%m5t ( consi/5t int]national /&>ds ) respect to ! regulation ( digital assets1 re/rict$ digital assets1 & digital commodities2 & 7#b7 may agree to su* in=mation-%>+ arrangem5ts z may be deem$ to be necess>y or appropriate 9 ! public int]e/ or = ! protection ( inve/ors1 cu/om]s1 & us]s ( digital assets4 #aji4 ,implem5tation 7a7 ,global rulemak+ timeframe ,unless o!rwise provid$ 9 ?is ,act or an am5dm5t made by ?is ,act1 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission1 or bo?1 %all individually1 & jo9tly :]e requir$1 promulgate rules & regulations requir$ ( ea* ,commission "u ?is ,act or an am5dm5t made by ?is ,act n lat] ?an #cfj days aft] ! date ( enactm5t ( ?is ,act4 7b7 ,rules & regi/ration be=e f9al effective dates 7#a7 ,9 g5]al ,9 ord] to prep>e = ! implem5tation ( ?is ,act1 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission may1 be=e any effective date provid$ 9 ?is ,act-- 7,a7 promulgate rules1 regulations1 or ord]s p]mitt$ or requir$ by ?is ,act2 7,b7 conduct /udies & prep>e reports & recomm5dations requir$ by ?is ,act2 7,c7 regi/] p]sons "u ?is ,act2 & 7,d7 exempt p]sons1 agreem5ts1 contracts1 or transactions f provisions ( ?is ,act1 "u ! t]ms conta9$ 9 ?is ,act4 7#b7 ,limitation on effectiv5ess ,an action by ! ,commodity ,futures ,trad+ ,commission or ! ,securities & ,ex*ange ,commission "u p>agraph 7#a7 %all n become effective be=e ! effective date o!rwise applicable to ! action "u ?is ,act4 ,,ii4 ,digital ,asset ,exemptions #bja4 ,exempt$ transactions 9 digital assets 7a7 ,9 g5]al ,! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;a et seq47 is am5d$-- 7#a7 9 section #d7;a71 by add+ at ! end ! foll[+3 7#h7 transactions involv+ ! (f] or sale ( units ( a digital asset by a digital asset issu]1 if-- 7,a7 ! aggregate am\nt ( units ( ! digital asset sold by ! digital asset issu] 9 reliance on ! exemption provid$ "u ?is p>agraph1 dur+ ! #ab-mon? p]iod prec$+ ! date ( su* transaction1 includ+ ! am\nt sold 9 su* transaction1 is n m ?an #ge1jjj1jjj 7z su* am\nt is annually adju/$ by ! ,commission to reflect ! *ange 9 ! ,consum] ,price ,index = ,all ,urban ,consum]s publi%$ by ! ,bureau ( ,labor ,/ati/ics ( ! ,dep>tm5t ( ,labor72 7,b7 ) respect to a transaction involv+ ! pur*ase ( units ( a digital asset by a p]son :o is n an accr$it$ inve/or1 ! aggregate am\nt ( all units ( digital assets pur*as$ by su* p]son dur+ ! #ab-mon? p]iod prec$+ ! date ( su* transaction1 includ+ ! unit ( a digital asset pur*as$ 9 su* transaction1 does n exce$ ! great] (-- 7i7 #aj p]c5t ( ! p]son's annual income or jo9t income ) t p]son's sp\se or sp\sal equival5t2 or 7ii7 #aj p]c5t ( ! p]son's net wor? or jo9t net wor? ) ! p]son's sp\se or sp\sal equival5t2 7,c7 aft] ! completion ( ! transaction1 ! pur*as] does n own m ?an #aj p]c5t ( ! total am\nt ( ! units ( ! digital asset sold 9 reliance on ! exemption "u ?is p>agraph2 7,d7 ! transaction does n involve ! (f] or sale ( any digital asset n (f]$ z "p ( an inve/m5t contract2 7,e7 ! transaction does n involve ! (f] or sale ( a unit ( a digital asset by a digital asset issu] t-- 7i7 is n organiz$ "u ! laws ( a ,/ate1 a t]ritory ( ! ,unit$ ,/ates or ! ,di/rict ( ,columbia2 7ii7 is a developm5t /age company t ei!r-- 7,i7 has no specific bus9ess plan or purpose2 or 7,,ii7 has indicat$ t ! bus9ess plan ( ! company is to m]ge ) or acquire an unid5tifi$ company2 7iii7 is an inve/m5t company1 z def9$ 9 section #c ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#c71 or is exclud$ f ! def9ition ( inve/m5t company by section #c7;b7 or section #c7;c7 ( t ,act 7#ae ,u4,s4,c4 #hj;a-#c7;b7 or #hj;a-#c7;c772 7iv7 is issu+ fractional undivid$ int]e/s 9 oil or gas rights1 or a simil> int]e/ 9 o!r m9]al rights2 7v7 is1 or has be51 subject to any ord] ( ! ,commission ent]$ pursuant to section #ab7;j7 ( ! ,securities ,ex*ange ,act ( #aicd dur+ ! #e-ye> p]iod be=e ! fil+ ( ! (f]+ /atem5t2 or 7vi7 is disqualifi$ pursuant to section #bcj4bfb ( title #ag1 ,code ( ,f$]al ,regulations2 & 7,f7 ! issu] meets ! requirem5ts ( section #d;,b7a74 2 & 7#b7 by ins]t+ aft] section #d;,a ! foll[+3 #d;,b4 ,requirem5ts ) respect to c]ta9 digital asset transactions 7a7 ,requirem5ts = digital asset issu]s 7#a7 ,in=mation requir$ 9 /atem5t ,a digital asset issu] (f]+ or sell+ a unit ( digital asset 9 reliance on section #d7;a77#h7 %all file ) ! ,commission a /atem5t conta9+ ! foll[+ in=mation3 7,a7 ,! "n1 legal /atus 7includ+ ! jurisdiction 9 :i* ! issu] is organiz$ & ! date ( organization71 & website ( ! digital asset issu]4 7,b7 ,a c]tification t ! digital asset issu] meets ! relevant requirem5ts describ$ "u section #d7;a77#h74 7,c7 ,an ov]view ( ! mat]ial aspects ( ! (f]+4 7,d7 ,a description ( ! purpose & int5d$ use ( ! (f]+ proce$s4 7,e7 ,a description ( ! plan ( di/ribution ( any unit ( a digital asset t is to be (f]$4 7,f7 ,a description ( ! mat]ial risks surr\nd+ own]%ip ( a unit ( a digital asset4 7,g7 ,a description ( exempt (f]+s conduct$ )9 ! pa/ ?ree ye>s by ! digital asset issu]4 7,h7 ,a description ( ! digital asset issu] & ! curr5t numb] ( employees ( ! digital asset issu]4 7,i7 ,a description ( any mat]ial transactions or relation%ips betwe5 ! digital asset issu] & affiliat$ p]sons4 7,j7 ,a description ( exempt (f]+s conduct$ )9 ! pa/ ?ree ye>s4 7#b7 ,in=mation requir$ = pur*as]s ,a digital asset issu] %all disclose ! in=mation describ$ "u section #dc ( ! ,securities ,ex*ange ,act ( #aicd on a freely accessible public website4 7#c7 ,ongo+ disclosure requirem5ts ,a digital asset issu] t has fil$ a /atem5t "u p>agraph 7#a7 to (f] & sell a unit ( a digital asset 9 reliance on section #d7;a77#h7 %all file ! foll[+ ) ! ,commission3 7,a7 ,annual reports ,an annual report t includes any mat]ial *anges to ! in=mation describ$ "u p>agraph 7#b7 = ! curr5t fiscal ye> & = any fiscal ye> !reaft]1 unless ! issu] is no long] obligat$ to file su* annual report pursuant to p>agraph 7#d74 7,b7 ,semiannual reports ,along ) ea* annual report requir$ "u subp>agraph 7,a71 & sep>ately six mon?s !reaft]1 a report conta9+-- 7i7 an updat$ description ( ! curr5t /ate & timel9e = ! developm5t ( ! block*a9 sy/em to :i* ! digital asset relates1 %[+ h[ & :5 ! block*a9 sy/em int5ds or int5d$ to be consid]$ a functional network & a dec5traliz$ network2 7ii7 ! am\nt ( money rais$ by ! digital asset issu] 9 reliance on section #d7;a77#h71 h[ mu* ( t money has be5 sp5t1 & ! g5]al categories & am\nts on :i* t money has be5 sp5t2 & 7iii7 any mat]ial *anges to ! in=mation 9 ! mo/ rec5t annual report4 7,c7 ,curr5t reports ,a curr5t report %all be fil$ ) ! ,commission reflect+ any mat]ial *anges to ! in=mation previ\sly report$ to ! ,commission by ! digital asset issu]4 7#d7 ,t]m9ation ( report+ requirem5ts 7,a7 ,9 g5]al ,! ongo+ report+ requirem5ts "u p>agraph 7#c7 %all n apply to a digital asset issu] #ahj days aft] ! end ( ! cov]$ fiscal ye>4 7,b7 ,cov]$ fiscal ye> def9$ ,9 ?is p>agraph1 ! t]m cov]$ fiscal ye> means ! fir/ fiscal ye> ( an issu] 9 :i* ! block*a9 sy/em to :i* ! digital asset relates is a functional network & c]tifi$ to be a dec5traliz$ network "u section #dd ( ! ,securities ,ex*ange ,act ( #aicd4 7b7 ,requirem5ts = int]m$i>ies 7#a7 ,9 g5]al ,a p]son act+ z an int]m$i>y 9 a transaction involv+ ! (f] or sale ( a unit ( a digital asset 9 reliance on section #d7;a77#h7 %all-- 7,a7 regi/] ) ! ,commission z a brok] "u section #ae7;b7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho7b772 & 7,b7 be a memb] ( a national securities association regi/]$ "u section #ae;,a ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho-#c74 7#b7 ,pur*as] qualification 7,a7 ,9 g5]al ,ea* "t1 be=e accept+ any commitm5t 7includ+ any additional commitm5t f ! same p]son71 an int]m$i>y or digital asset issu] %all h a reasonable basis = believ+ t ! pur*as] satisfies ! requirem5ts ( section #d7;a77#h74 7,b7 ,reliance on pur*as]'s repres5tations ,= purposes ( subp>agraph 7,a71 an int]m$i>y or digital asset issu] may rely on a pur*as]'s repres5tations conc]n+ ! pur*as]'s annual income & net wor? & ! am\nt ( ! pur*as]'s o!r inve/m5ts made1 unless ! int]m$i>y or digital asset issu] has reason to "q ! reliability ( ! repres5tation4 7,c7 ,reliance on int]m$i>y ,= purposes ( det]m9+ :e!r a transaction meets ! requirem5ts describ$ "u subp>agraph 7,a7 ?r\gh 7,c7 ( section #d7;a77#h71 a digital asset issu] may rely on ! ef=ts ( an int]m$i>y4 7c7 ,additional provisions 7#a7 ,acceptance ( writt5 (f]s2 sales ,aft] an issu] files a /atem5t "u p>agraph 7#a7 to (f] & sell a digital asset 9 reliance on section #d7;a77#h7-- 7,a7 writt5 (f]s ( ! digital asset may be made2 & 7,b7 ! issu] may sell ! digital assets 9 reliance on section #d7;a77#h71 if su* sales meet all o!r requirem5ts4 7#b7 ,solicitation ( int]e/ 7,a7 ,9 g5]al ,at any "t be=e ! fil+ ( a /atem5t "u p>agraph 7#a71 a digital asset issu] may communicate orally or 9 writ+ to det]m9e :e!r !re is any int]e/ 9 a contemplat$ (f]+4 ,su* communications are deem$ to be an (f] ( a unit ( a digital asset = sale = purposes ( ! antifraud provisions ( ! ,f$]al securities laws4 ,no solicitation or acceptance ( money or o!r consid]ation1 nor ( any commitm5t1 b9d+ or o!rwise1 f any p]son is p]mitt$ until ! /atem5t is fil$4 7,b7 ,conditions ,9 any communication describ$ "u subp>agraph 7,a71 ! digital asset issu] %all-- 7i7 /ate t no money or o!r consid]ation is be+ solicit$1 & if s5t 9 response1 w n be accept$2 7ii7 /ate t no (f] to buy a unit ( a digital asset c be accept$ & no "p ( ! pur*ase price c be receiv$ until ! /atem5t is fil$ & !n only ?r\gh an int]m$i>y2 & 7iii7 /ate t a p]son's indication ( int]e/ involves no obligation or commitm5t ( any k9d4 7,c7 ,indications ( int]e/ ,any writt5 communication describ$ "u subp>agraph 7,a7 may include a means by :i* a p]son may indicate to ! digital asset issu] t su* p]son is int]e/$ 9 a pot5tial (f]+4 ,a digital asset issu] may require a "n1 address1 telephone numb]1 or email address 9 any response =m includ$ ) a communication describ$ "u subp>agraph 7,a74 7#c7 ,disqualification provisions ,! ,commission %all issue rules to apply ! disqualification provisions "u section #bcj4bfb ( title #ag1 ,code ( ,f$]al ,regulations1 to ! exemption provid$ "u section #d7;a77#h74 7#d7 ,digital assets deem$ re/rict$ digital asset ,a unit ( a digital asset acquir$ directly or indirectly f ! digital asset issu] 9 reliance on ! exemption provid$ "u section #d7;a77#h7 is deem$ a re/rict$ digital asset4 4 7b7 ,additional exemptions 7#a7 ,c]ta9 regi/ration requirem5ts ,section #ab7;g77#f7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #ghl7g77#f77 is am5d$ by /rik+ "u section #d7f7 & ins]t+ "u section #d7;a77#f7 or #d7;a77#h74 7#b7 ,exemption f ,/ate regulation ,section #ah7;b77#d7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #ggr7b77#d77 is am5d$-- 7,a7 9 section 7,b71 by /rik+ section #d7d7 & ins]t+ section #d7;a77#d72 7,b7 9 section 7,c71 by /rik+ section #d7f7 & ins]t+ section #d7;a77#f72 7,c7 9 subp>agraph 7,f7-- 7i7 by /rik+ section #d7b7 ea* place su* t]m appe>s & ins]t+ section #d7;a77#b72 7ii7 by /rik+ or at ! end2 7,d7 9 subp>agraph 7,g71 by /rik+ ! p]iod & ins]t+ 2 or2 & 7,e7 by add+ at ! end ! foll[+3 7,h7 section #d7;a77#h74 4 #bjb4 ,requirem5ts to transact 9 c]ta9 digital assets ,title ,i ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 is am5d$ by add+ at ! end ! foll[+3 #db4 ,requirem5ts to transact 9 c]ta9 digital assets 7a7 ,transactions 9 c]ta9 re/rict$ digital assets 7#a7 ,9 g5]al ,not)/&+ any o!r provision ( law1 subject to p>agraph 7#b71 a re/rict$ digital asset may be (f]$ & sold on an alt]native trad+ sy/em by any p]son o!r ?an a digital asset issu] if1 at ! "t ( su* (f] or sale1 any block*a9 sy/em to :i* ! re/rict$ digital asset relates is a functional network & ! in=mation describ$ 9 section #dc has be5 c]tifi$ & made publicly available = any block*a9 sy/em to :i* ! re/rict$ digital asset relates4 7#b7 ,additional rules = relat$ & affiliat$ p]sons ,a re/rict$ digital asset own$ by a relat$ p]son or an affiliat$ p]son may only be (f]$ or sold aft] #ab mon?s aft] ! lat] (-- 7,a7 ! date on :i* su* re/rict$ digital asset 0 acquir$2 or 7,b7 ! digital asset maturity date4 7b7 ,transactions 9 c]ta9 digital commodities 7#a7 ,9 g5]al ,subject to p>agraph 7#b71 a digital commodity may be (f]$ & sold by any p]son o!r ?an a digital asset issu]4 7#b7 ,rules = relat$ & affiliat$ p]sons ,a digital commodity may only be (f]$ or sold by a relat$ p]son or an affiliat$ p]son if-- 7,a7 ! hold] ( ! digital commodity own$ ! digital commodity :ile x 0 a re/rict$ digital asset = #ab mon?s aft] ! lat] (-- 7i7 ! date on :i* su* re/rict$ digital asset 0 acquir$2 or 7ii7 ! digital asset maturity date2 7,b7 any block*a9 sy/em to :i* ! digital commodity relates is c]tifi$ to be a dec5traliz$ network "u section #dd2 & 7,c7 ! digital commodity is (f]$ or sold on or subject to ! rules ( a digital commodity ex*ange regi/]$ "u section #e;i ( ! ,commodity ,ex*ange ,act4 7#c7 ,n a security 7,a7 ,9 g5]al ,except z provid$ "u subp>agraph 7,b71 = purposes ( ! securities laws1 a transaction 9 a digital commodity made 9 compliance ) p>agraph 7#a7 or 7#b7 %all n be a transaction 9 a security4 7,b7 ,exception ,subp>agraph 7,a7 does n apply to a transaction 9 a digital commodity if ! transaction-- 7i7 is a mix$ digital asset transaction2 or 7ii7 is made pursuant to an inve/m5t contract or 9 conjunction ) any o!r security4 7c7 ,sales re/rictions = affiliat$ p]sons ,a digital asset may be (f]$ or sold by an affiliat$ p]son "u subsection 7a7 or 7b7 if-- 7#a7 ! aggregate am\nt ( su* digital assets sold 9 any #c-mon? p]iod by ! affiliat$ p]son is n great] ?an "o p]c5t ( ! digital assets !n out/&+2 or 7#b7 ! affiliat$ p]son promptly1 foll[+ ! placem5t ( an ord] to sell "o p]c5t ( ! digital assets !n out/&+ dur+ any #c-mon? p]iod1 reports ! sale to-- 7,a7 ! ,commodity ,futures ,trad+ ,commission1 9 ! case ( an ord] to sell a digital commodity on or subject to ! rules ( a digital commodity ex*ange2 or 7,b7 ! ,securities & ,ex*ange ,commission1 9 ! case ( a sell ord] = a re/rict$ digital asset plac$ ) an alt]native trad+ sy/em4 7d7 ,treatm5t ( c]ta9 end us] di/ributions "u ! securities laws 7#a7 ,9 g5]al ,) respect to a digital asset1 an end us] di/ribution is describ$ "u ?is p>agraph if-- 7,a7 ea* block*a9 sy/em to :i* su* digital asset relates is a functional network2 & 7,b7 ) respect to ! digital asset & ea* block*a9 sy/em to :i* su* digital asset relates1 ! in=mation describ$ 9 section #dc has be5 c]tifi$ & made publicly available4 7#b7 ,n a security ,= purposes ( ! securities laws1 an end us] di/ribution describ$ "u p>agraph 7#a7 %all n be a transaction 9 a security4 7#c7 ,exemption ,section #e ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;e7 %all n apply to an end us] di/ribution describ$ "u p>agraph 7#a7 or a transaction 9 a unit ( digital asset issu$ 9 su* a di/ribution4 4 #bjc4 ,enhanc$ disclosure requirem5ts ,title ,i ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq471 z am5d$ by section #bjb1 is fur!r am5d$ by add+ at ! end ! foll[+3 #dc4 ,enhanc$ disclosure requirem5ts ) respect to digital assets 7a7 ,disclosure in=mation ,) respect to a digital asset & any block*a9 sy/em to :i* ! digital asset relates1 ! in=mation describ$ "u ?is section is z foll[s3 7#a7 ,s\rce code ,! s\rce code = any block*a9 sy/em to :i* ! digital asset relates4 7#b7 ,transaction hi/ory ,a description ( ! /eps necess>y to indep5d5tly access1 se>*1 & v]ify ! transaction hi/ory ( any block*a9 sy/em to :i* ! digital asset relates4 7#c7 ,digital asset economics ,a description ( ! purpose ( any block*a9 sy/em to :i* ! digital asset relates & ! op]ation ( any su* block*a9 sy/em1 includ+-- 7,a7 in=mation expla9+ ! laun* & supply process1 includ+ ! numb] ( digital assets to be issu$ 9 an initial allocation1 ! total numb] ( digital assets to be creat$1 ! release s*$ule = ! digital assets1 & ! total numb] ( digital assets !n out/&+2 7,b7 in=mation on any applicable cons5sus me*anism or process = validat+ transactions1 me?od ( g5]at+ or m9+ digital assets1 & any process = burn+ or de/roy+ digital assets on ! block*a9 sy/em2 7,c7 an explanation ( gov]nance me*anisms = implem5t+ *anges to ! block*a9 sy/em or =m+ cons5sus among hold]s ( su* digital assets2 & 7,d7 suffici5t in=mation = a ?ird p>ty to create a tool = v]ify+ ! transaction hi/ory ( ! digital asset4 7#d7 ,plan ( developm5t ,! curr5t /ate & timel9e = ! developm5t ( any block*a9 sy/em to :i* ! digital asset relates1 %[+ h[ & :5 ! block*a9 sy/em int5ds or int5d$ to be consid]$ a functional network & dec5traliz$ network4 7#e7 ,developm5t disclosures ,a li/ ( all p]sons :o are relat$ p]sons or affiliat$ p]sons :o h be5 issu$ a unit ( a digital asset by a digital asset issu] or h a "r to a unit ( a digital asset f a digital asset issu]4 7#f7 ,risk factor disclosures ,:]e appropriate1 provide "u ! caption ,risk ,factors a description ( ! mat]ial risks surr\nd+ own]%ip ( a unit ( a digital asset4 ,?is discussion %all be organiz$ logically ) relevant head+s & ea* risk factor %all be set =? "u a subcaption t adequately describes ! risk4 7b7 ,c]tification ,) respect to a digital asset & any block*a9 sy/em to :i* ! digital asset relates1 ! in=mation requir$ to be made available "u ?is section has be5 c]tifi$ if ! digital asset issu]1 an affiliat$ p]son1 a dec5traliz$ gov]nance sy/em1 or a digital commodity ex*ange c]tifies on a qu>t]ly basis to ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission t ! in=mation is true & correct4 4 #bjd4 ,c]tification ( c]ta9 digital assets ,title ,i ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq471 z am5d$ by section #bjc1 is fur!r am5d$ by add+ at ! end ! foll[+3 #dd4 ,c]tification ( c]ta9 digital assets 7a7 ,c]tification ,any p]son may c]tify to ! ,securities & ,ex*ange ,commission t ! block*a9 sy/em to :i* a digital asset relates is a dec5traliz$ network4 7b7 ,fil+ requirem5ts ,a c]tification describ$ "u subsection 7a7 %all be fil$ ) ! ,commission1 & include-- 7#a7 in=mation reg>d+ ! p]son mak+ ! c]tification2 7#b7 a description ( ! block*a9 sy/em & ! digital asset :i* relates to su* block*a9 sy/em1 includ+-- 7,a7 ! op]ation ( ! block*a9 sy/em2 7,b7 ! functionality ( ! relat$ digital asset2 7,c7 any dec5traliz$ gov]nance sy/em :i* relates to ! block*a9 sy/em2 & 7,d7 ! process to develop cons5sus or agreem5t )9 su* dec5traliz$ gov]nance sy/em2 7#c7 a description ( ! developm5t ( ! block*a9 sy/em & ! digital asset :i* relates to ! block*a9 sy/em1 includ+-- 7,a7 a hi/ory ( ! developm5t ( ! block*a9 sy/em & ! digital asset :i* relates to su* block*a9 sy/em2 7,b7 a description ( ! issuance process = ! digital asset :i* relates to ! block*a9 sy/em2 7,c7 in=mation id5tify+ ! digital asset issu] ( ! digital asset :i* relates to ! block*a9 sy/em2 & 7,d7 a li/ ( any affiliat$ p]son relat$ to ! digital asset issu]2 7#d7 an analysis ( ! factors on :i* su* p]son bas$ ! c]tification t ! block*a9 sy/em is a dec5traliz$ network1 includ+-- 7,a7 an explanation ( ! protections & prohibitions available dur+ ! previ\s #ab mon?s aga9/ any "o p]son be+ able to-- 7i7 control or mat]ially alt] ! block*a9 sy/em2 7ii7 exclude any o!r p]son f us+ or p>ticipat+ on ! block*a9 sy/em2 & 7iii7 exclude any o!r p]son f p>ticipat+ 9 a dec5traliz$ gov]nance sy/em2 7,b7 in=mation reg>d+ ! b5eficial own]%ip ( ! digital asset :i* relates to su* block*a9 sy/em & ! di/ribution ( vot+ p[] 9 any dec5traliz$ gov]nance sy/em dur+ ! previ\s #ab mon?s2 7,c7 in=mation reg>d+ ! hi/ory ( upgrades to ! s\rce code = su* block*a9 sy/em dur+ ! previ\s #c mon?s1 includ+-- 7i7 a description ( any cons5sus or agreem5t process utiliz$ to process or approve *anges to ! s\rce code2 7ii7 a li/ ( any mat]ial *anges to ! s\rce code1 ! purpose & effect ( ! *anges1 & ! contributor ( ! *anges1 if kn[n2 & 7iii7 any *anges to ! s\rce code made by ! digital asset issu]1 a relat$ p]son1 or an affiliat$ p]son2 7,d7 in=mation reg>d+ any activities conduct$ to m>ket ! digital asset :i* relates to ! block*a9 sy/em dur+ ! previ\s #c mon?s by ! digital asset issu] or an affiliat$ p]son ( ! digital asset issu]2 & 7,e7 in=mation reg>d+ any issuance ( a unit ( ! digital asset :i* relates to su* block*a9 sy/em dur+ ! previ\s #ab mon?s2 & 7#e7 ) respect to a block*a9 sy/em = :i* a c]tification has previ\sly be5 rebutt$ "u ?is section or )drawn "u section #e;i7m7 ( ! ,commodity ,ex*ange ,act1 specific in=mation relat+ to ! analysis provid$ 9 subsection 7f77#b7 9 connection ) su* rebuttal or su* section #e;i7m77#a77;,c7 9 connection ) su* )drawal4 7c7 ,rebuttable presumption ,! ,commission may rebut a c]tification describ$ "u subsection 7a7 ) respect to a block*a9 sy/em if ! ,commission1 )9 #cj days ( receiv+ su* c]tification1 det]m9es t ! block*a9 sy/em is n a dec5traliz$ network4 7d7 ,c]tification review 7#a7 ,9 g5]al ,any block*a9 sy/em t relates to a digital asset = :i* a c]tification has be5 made "u subsection 7a7 %all be consid]$ a dec5traliz$ network #cj days aft] ! date on :i* ! ,commission receives a c]tification "u subsection 7a71 unless ! ,commission notifies ! p]son :o made ! c]tification )9 su* "t t ! ,commission is /ay+ ! c]tification due to-- 7,a7 an inadequate explanation by ! p]son mak+ ! c]tification2 or 7,b7 any novel or complex issues :i* require additional "t to consid]4 7#b7 ,public notice ,! ,commission %all make ! foll[+ available to ! public & provide a copy to ! ,commodity ,futures ,trad+ ,commission3 7,a7 ,ea* c]tification receiv$ "u subsection 7a74 7,b7 ,ea* /ay ( ! ,commission "u ?is section1 & ! reasons !re=e4 7,c7 ,any response f a p]son mak+ a c]tification "u subsection 7a7 to a /ay ( ! c]tification by ! ,commission4 7#c7 ,consolidation ,! ,commission may consolidate & treat z "o submission multiple c]tifications made "u subsection 7a7 = ! same block*a9 sy/em :i* relates to a digital asset :i* are receiv$ dur+ ! review p]iod provid$ "u ?is subsection4 7e7 ,/ay ( c]tification 7#a7 ,9 g5]al ,a notification by ! ,commission pursuant to subsection 7d77#a7 %all /ay ! c]tification once = up to an additional #abj days f ! date ( ! notification4 7#b7 ,public comm5t p]iod ,be=e ! end ( ! #cj-;day p]iod describ$ "u subsection 7d77#a71 ! ,commission may beg9 a public comm5t p]iod ( at lea/ #cj days 9 conjunction ) a /ay "u ?is section4 7f7 ,disposition ( c]tification 7#a7 ,9 g5]al ,a c]tification made "u subsection 7a7 %all-- 7,a7 become effective-- 7i7 ^u ! publication ( a notification f ! ,commission to ! p]son :o made ! c]tification t ! ,commission does n object to ! c]tification2 or 7ii7 at ! expiration ( ! c]tification review p]iod2 & 7,b7 n become effective ^u ! publication ( a notification f ! ,commission to ! p]son :o made ! c]tification t ! ,commission has rebutt$ ! c]tification4 7#b7 ,detail$ analysis includ$ ) rebuttal ,! ,commission %all include1 ) ea* publication ( a notification ( rebuttal describ$ "u p>agraph 7#a77;,b71 a detail$ analysis ( ! factors on :i* ! decision 0 bas$4 7g7 ,rec]tification ,) respect to a block*a9 sy/em = :i* a c]tification has be5 rebutt$ "u ?is section1 no p]son may make a c]tification "u subsection 7a7 ) respect to su* block*a9 sy/em dur+ ! #ij-;day p]iod beg9n+ on ! date ( su* rebuttal4 7h7 ,appeal ( rebuttal 7#a7 ,9 g5]al ,if a c]tification is rebutt$ "u ?is section1 ! p]son mak+ su* c]tification may appeal ! decision to ! ,unit$ ,/ates ,c\rt ( ,appeals = ! ,di/rict ( ,columbia1 n lat] ?an #fj days aft] ! notice ( rebuttal is made4 7#b7 ,review ,9 an appeal "u p>agraph 7#a71 ! c\rt %all h de novo review ( ! det]m9ation to rebut ! c]tification4 7i7 ,liability = provid+ false in=mation ,x %all be unlawful = any p]son to provide false in=mation 9 support ( a c]tification "u ?is section if su* p]son knew or reasonably %\ld h kn[n su* in=mation 0 false4 4 #bje4 ,effective date ,unless o!rwise provid$ 9 ?is title1 ?is title & ! am5dm5ts made by ?is title %all take effect #cfj days aft] ! date ( enactm5t ( ?is ,act1 except t1 to ! ext5t a provision ( ?is title requires a rulemak+1 ! provision %all take effect on ! lat] (-- 7#a7 #cfj days aft] ! date ( enactm5t ( ?is ,act2 or 7#b7 #fj days aft] ! publication 9 ! ,f$]al ,regi/] ( ! f9al rule implem5t+ ! provision4 ,,iii4 ,regi/ration = ,digital ,asset ,int]m$i>ies at ! ,securities & ,ex*ange ,commission #cja4 ,treatm5t ( digital commodities & o!r digital assets 7a7 ,securities ,act ( #aicc ,section #b7;a77#a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a77#a77 is am5d$ by add+ at ! end ! foll[+3 ,! t]m does n include a digital commodity or p]mitt$ paym5t /ableco944 7b7 ,securities ,ex*ange ,act ( #aicd ,section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a77 is am5d$-- 7#a7 9 p>agraph 7#a71 by add+ at ! end ! foll[+3 ,! t]m ex*ange does n include a digital asset trad+ sy/em1 block*a9 protocol1 or any p]son or gr\p ( p]sons solely because ( _! developm5t ( a block*a9 protocol42 7#b7 9 p>agraph 7#b71 by add+ at ! end ! foll[+3 ,a digital asset trad+ sy/em is n a facility ( an ex*ange42 7#c7 9 p>agraph 7#d77;,a71 by ins]t+ 1 o!r ?an re/rict$ digital assets1 aft] securities2 7#d7 9 p>agraph 7#e77;,a71 by ins]t+ re/rict$ digital assets or aft] n includ+2 7#e7 9 p>agraph 7#bf7 by ins]t+ 7o!r ?an a notice-regi/]$ digital asset cle>+ ag5cy7 aft] or regi/]$ cle>+ ag5cy2 7#f7 9 p>agraph 7#bh7 by ins]t+ 7o!r ?an a notice-regi/]$ digital asset cle>+ ag5cy7 aft] regi/]$ cle>+ ag5cy2 7#g7 9 p>agraph 7#aj71 by add+ at ! end ! foll[+3 ,subject to subsection 7i71 ! t]m does n include a digital commodity or p]mitt$ paym5t /ableco942 7#h7 by r$esignat+ ! second p>agraph 7#hj7 7relat+ to fund+ portals7 z p>agraph 7#ha72 & 7#i7 by add+ at ! end ! foll[+3 7#ha7 ,bank ,secrecy ,act ,! t]m ,bank ,secrecy ,act means-- 7,a7 section #ba ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbi;b72 7,b7 *apt] #b ( title ,i ( ,public ,law #ia-ejh 7#ab ,u4,s4,c4 #aiea et seq472 & 7,c7 sub*apt] ,,ii ( *apt] #ec ( title #ca1 ,unit$ ,/ates ,code4 7#hb7 ,digital asset brok] ,! t]m digital asset brok]-- 7,a7 means any p]son engag$ 9 ! bus9ess ( effect+ transactions 9 re/rict$ digital assets = ! acc\nt ( o!rs2 & 7,b7 does n include a block*a9 protocol or a p]son or gr\p ( p]sons solely because ( _! developm5t ( a block*a9 protocol4 7#hc7 ,digital asset deal] ,! t]m digital asset deal]-- 7,a7 means any p]son engag$ 9 ! bus9ess ( buy+ & sell+ digital assets = su* p]son's own acc\nt ?r\gh a brok] or o!rwise2 & 7,b7 does n include-- 7i7 a p]son t buys or sells digital assets = su* p]son's own acc\nt1 ei!r individually or 9 a fiduci>y capacity1 b n z a "p ( a regul> bus9ess2 or 7ii7 a block*a9 protocol or a p]son or gr\p ( p]sons solely because ( _! developm5t ( a block*a9 protocol4 7#hd7 ,digital asset trad+ sy/em ,! t]m digital asset trad+ sy/em-- 7,a7 means any organization1 association1 p]son1 or gr\p ( p]sons1 :e!r incorporat$ or un9corporat$1 t con/itutes1 ma9ta9s1 or provides a m>ket place or facilities = br++ toge!r pur*as]s & sell]s ( re/rict$ digital assets or = o!rwise p]=m+ ) respect to digital assets ! functions commonly p]=m$ by a /ock ex*ange )9 ! mean+ ( section #bdj4c;b-#af ( title #ag1 ,code ( ,f$]al ,regulations1 z 9 effect on ! date ( enactm5t ( ?is p>agraph2 & 7,b7 does n include a block*a9 protocol or a p]son or gr\p ( p]sons solely because ( _! developm5t ( a block*a9 protocol4 7#he7 ,mix$ digital asset transaction ,! t]m mix$ digital asset transaction means an agreem5t1 contract1 or transaction involv+ a re/rict$ digital asset & a digital commodity4 7#hf7 ,notice-regi/]$ digital asset cle>+ ag5cy ,! t]m notice-regi/]$ digital asset cle>+ ag5cy means a cle>+ ag5cy t has regi/]$ ) ! ,commission pursuant to section #ag;,a7b77#i74 7#hg7 ,additional digital asset-relat$ t]ms 7,a7 ,securities ,act ( #aicc ,! t]ms affiliat$ p]son1 block*a9 sy/em1 dec5traliz$ gov]nance sy/em1 dec5traliz$ network1 digital asset1 digital asset issu]1 digital asset maturity date1 end us] di/ribution1 functional network1 mix$ digital asset transaction1 p]mitt$ paym5t /ableco91 relat$ p]son1 re/rict$ digital asset1 & s\rce code h ! mean+ giv5 ^? t]ms1 respectively1 "u section #b7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a774 7,b7 ,commodity ,ex*ange ,act ,! t]ms digital commodity1 digital commodity brok]1 digital commodity deal]1 & digital commodity ex*ange h ! mean+ giv5 ^? t]ms1 respectively1 "u section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a74 4 7c7 ,inve/m5t ,advis]s ,act ( #aidj ,section #bjb7;a7 ( ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#b7 is am5d$-- 7#a7 9 p>agraph 7#ah71 by add+ at ! end ! foll[+3 ,! t]m does n include a digital commodity or p]mitt$ paym5t /ableco942 7#b7 by r$esignat+ ! second p>agraph 7#bi7 7relat+ to commodity pools7 z p>agraph 7#ca72 7#c7 by add+ at ! end1 ! foll[+3 7#cb7 ,digital asset-relat$ t]ms ,! t]ms digital commodity & p]mitt$ paym5t /ableco9 h ! mean+ giv5 ^? t]ms1 respectively1 "u section #b7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a774 4 7d7 ,inve/m5t ,company ,act ( #aidj ,section #b7;a7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#b7 is am5d$-- 7#a7 9 p>agraph 7#cf71 by add+ at ! end ! foll[+3 ,! t]m does n include a digital commodity or p]mitt$ paym5t /ableco942 & 7#b7 by add+ at ! end ! foll[+3 7#ee7 ,digital asset-relat$ t]ms ,! t]ms digital commodity & p]mitt$ paym5t /ableco9 h ! mean+ giv5 ^? t]ms1 respectively1 "u section #b7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a774 4 #cjb4 ,antifraud au?ority ov] p]mitt$ paym5t /ableco9s ,section #aj ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;j7 is am5d$-- 7#a7 by mov+ subsection 7c7 s z to appe> aft] subsection 7b72 7#b7 by designat+ ! undesignat$ matt] at ! end ( t section z subsection 7d72 & 7#c7 by add+ at ! end ! foll[+3 7e7 7#a7 ,rules promulgat$ "u subsection 7b7 t prohibit fraud1 manipulation1 or insid] trad+ 7b n rules impos+ or specify+ report+ or recordkeep+ requirem5ts1 proc$ures1 or /&>ds z prophylactic measures aga9/ fraud1 manipulation1 or insid] trad+71 & judicial prec$5ts decid$ "u subsection 7b7 & rules promulgat$ !reund] t prohibit fraud1 manipulation1 or insid] trad+1 %all apply to p]mitt$ paym5t /ableco9s ) respect to ^? circum/ances 9 :i* ! p]mitt$ paym5t /ableco9s are brok]$1 trad$1 or cu/odi$ by a brok]1 deal]1 digital asset brok]1 or digital asset deal] or ?r\gh an alt]native trad+ sy/em or digital asset trad+ plat=m to ! same ext5t z !y apply to securities4 7#b7 ,judicial prec$5ts decid$ "u section #ag7;a7 ( ! ,securities ,act ( #aicc & sections #i1 #ae1 #af1 #bj1 & #ba;,a ( ?is title1 & judicial prec$5ts decid$ "u applicable rules promulgat$ "u su* sections1 %all apply to p]mitt$ paym5t /ableco9s ) respect to ^? circum/ances 9 :i* ! p]mitt$ paym5t /ableco9s are brok]$1 trad$1 or cu/odi$ by a digital asset brok]1 digital asset deal]1 or digital asset trad+ plat=m to ! same ext5t z !y apply to securities4 7#c7 ,no?+ 9 ?is subsection may be con/ru$ to provide ! ,commission au?ority to make any rule1 regulation1 requirem5t1 or obligation on a p]mitt$ paym5t /ableco9 issu] reg>d+ ! op]ations ( a p]mitt$ paym5t /ableco9 issu] or a p]mitt$ paym5t /ableco91 includ+ requirem5ts or obligations reg>d+-- 7,a7 design2 7,b7 /ructure2 7,c7 issuance2 7,d7 r$emption2 7,e7 f9ancial res\rces2 7,f7 collat]al2 or 7,g7 any o!r aspect ( ! op]ation ( a p]mitt$ paym5t /ableco9 issu] or p]mitt$ paym5t /ableco94 4 #cjc4 ,regi/ration ( digital asset trad+ sy/ems ,section #f ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;f7 is am5d$ by add+ at ! end ! foll[+3 7m7 ,digital asset trad+ sy/em 7#a7 ,9 g5]al ,x %all be unlawful = any digital asset trad+ sy/em to make use ( ! mails or any means or in/rum5tality ( int]/ate comm]ce )9 or subject to ! jurisdiction ( ! ,unit$ ,/ates to effect any transaction 9 a digital asset1 unless su* digital asset trad+ sy/em is regi/]$ ) ! ,commission4 7#b7 ,application ,a p]son desir+ to regi/] z a digital asset trad+ sy/em %all submit to ! ,commission an application 9 su* =m & conta9+ su* in=mation z ! ,commission may require = ! purpose ( mak+ ! det]m9ations requir$ = approval4 7#c7 ,exemptions ,a digital asset trad+ sy/em t (f]s or seeks to (f] at lea/ "o digital asset %all n be requir$ to regi/] "u ?is section 7& subp>agraph 7,a7 %all n apply to su* digital asset trad+ sy/em7 if ! trad+ sy/em satisfies any ( ! exemptions set =? 9 section #bdj4c;b-#af7;b7 ( title #ag1 ,code ( ,f$]al ,regulations4 4 #cjd4 ,requirem5ts = digital asset trad+ sy/ems ,title ,i ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 is am5d$ by ins]t+ aft] section #f ! foll[+3 #f;,a4 ,requirem5ts = digital asset trad+ sy/ems 7a7 ,hold+ ( cu/om] assets 7#a7 ,9 g5]al ,subject to p>agraph 7#b71 a digital asset trad+ sy/em1 9 its capacity z su*1 may n hold cu/ody ( cu/om] money1 assets1 or prop]ty4 7#b7 ,cu/ody 9 o!r capacity ,no?+ 9 ?is ,act %all prohibit a p]son regi/]$ z a digital asset trad+ sy/em f hold+ cu/ody ( cu/om] money1 assets1 or prop]ty 9 any o!r p]mitt$ capacity1 includ+ z a digital asset brok] or digital asset deal]1 9 compliance ) ! requirem5ts ( section #ae;,h4 7b7 ,rulemak+ ,! ,commission %all prescribe rules = digital asset trad+ sy/ems relat+ to ! foll[+3 7#a7 ,notice ,notice to ! ,commission ( ! initial op]ation ( a digital asset trad+ sy/em or any mat]ial *ange to ! op]ation ( ! digital asset trad+ sy/em4 7#b7 ,ord] display ,! ?re%olds at :i* a digital asset trad+ sy/em is requir$ to display ! ord]s ( ! digital asset trad+ sy/em1 & ! mann] ( su* display4 7#c7 ,fair access ,! ?re%olds at :i* a digital asset trad+ sy/em is requir$ to h policies reg>d+ provid+ fair access to ! digital asset trad+ sy/em4 7#d7 ,capacity1 integrity1 & security ( automat$ sy/ems ,policies & proc$ures reasonably design$ to ensure ! capacity1 integrity1 & security ( ! digital asset trad+ sy/em1 tak+ into acc\nt ! p>ticul> nature ( digital asset trad+ sy/ems4 7#e7 ,exam9ations1 inspections1 & inve/igations ,! exam9ation & inspection ( ! premises1 sy/ems1 & records ( ! digital asset trad+ sy/em by ! ,commission or by a self-regulatory organization ( :i* su* digital asset trad+ sy/em is a memb]4 7#f7 ,recordkeep+ ,! mak+1 keep+ curr5t1 & pres]vation ( records relat$ to trad+ activity on ! digital asset trad+ sy/em4 7#g7 ,report+ ,! report+ ( transactions 9 digital assets t occur ?r\gh ! digital asset trad+ sy/em4 7#h7 ,proc$ures ,! e/abli%m5t ( adequate writt5 safegu>ds & writt5 proc$ures to protect confid5tial trad+ in=mation4 7c7 ,"n requirem5t ,a digital asset trad+ sy/em may n use ! ^w ex*ange 9 ! "n ( ! digital asset trad+ sy/em1 unless ! digital asset trad+ sy/em-- 7#a7 is op]at$ by a regi/]$ national securities ex*ange2 & 7#b7 is cle>ly indicat$ z be+ provid$ outside ( ! sy/em's capacity z a national securities ex*ange4 7d7 ,treatm5t "u ! ,bank ,secrecy ,act ,a digital asset trad+ sy/em %all be treat$ z a f9ancial in/itution = purposes ( ! ,bank ,secrecy ,act4 4 #cje4 ,regi/ration ( digital asset brok]s & digital asset deal]s ,! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 is am5d$ by ins]t+ aft] section #ae;,g ! foll[+3 #ae;,h4 ,regi/ration ( digital asset brok]s & digital asset deal]s 7a7 ,regi/ration 7#a7 ,9 g5]al ,x %all be unlawful = any digital asset brok] or digital asset deal] 7o!r ?an a natural p]son associat$ ) a digital asset brok] or digital asset deal]1 & o!r ?an su* a digital asset brok] or digital asset deal] ^: bus9ess is exclusively intra/ate & :o does n make use ( any facility ( a digital asset trad+ plat=m7 to make use ( ! mails or any means or in/rum5tality ( int]/ate comm]ce to effect any transactions 91 or to induce or attempt to induce ! pur*ase or sale (1 any digital asset unless su* digital asset brok] or digital asset deal] is regi/]$ 9 accordance ) ?is section4 7#b7 ,application ,a p]son desir+ to regi/] z a digital asset brok] or digital asset deal] %all submit to ! ,commission an application 9 su* =m & conta9+ su* in=mation z ! ,commission may require = ! purpose ( mak+ ! det]m9ations requir$ = approval4 7b7 ,national securities association memb]%ip 7#a7 ,9 g5]al ,a digital asset brok] or digital asset deal] may n regi/] or ma9ta9 regi/ration "u ?is section unless su* digital asset brok] or digital asset deal] is a memb] ( a national securities association regi/]$ "u section #ae;,a4 7#b7 ,exception ,a digital asset brok] or digital asset deal] may regi/] "u ?is section )\t obta9+ memb]%ip 9 a national securities association until ! end ( ! #cfj-;day p]iod beg9n+ on ! date ! fir/ national securities association adopts rules to admit digital asset brok]s or digital asset deal]s z memb]s4 7c7 ,additional regi/rations ) ! ,commodity ,futures ,trad+ ,commission ,a regi/]$ digital asset brok] or digital asset deal] %all be p]mitt$ to ma9ta9 any o!r regi/ration ) ! ,commodity ,futures ,trad+ ,commission relat+ to ! o!r activities ( ! regi/]$ digital asset brok] or regi/]$ digital asset deal]1 includ+ z a digital commodity brok] or digital commodity deal]1 to li/ or trade contracts ( sale = digital commodities4 4 #cjf4 ,requirem5ts ( digital asset brok]s & digital asset deal]s ,section #ae;,h ( ! ,securities ,ex*ange ,act ( #aicd1 z add$ by section #bje1 is am5d$ by add+ at ! end ! foll[+3 7d7 ,antifraud ,no digital asset brok] or digital asset deal] %all make use ( ! mails or any means or in/rum5tality ( int]/ate comm]ce to effect any transaction 91 or to induce or attempt to induce ! pur*ase or sale (1 any digital asset t is n a digital commodity by means ( any manipulative1 deceptive1 or o!r fraudul5t device or contrivance4 7e7 ,hold+ ( cu/om] assets 7#a7 ,9 g5]al ,a digital asset brok] or digital asset deal] %all hold cu/om] money1 assets1 & prop]ty 9 a mann] to m9imize ! risk ( loss to ! cu/om] or unreasonable delay 9 ! access to ! money1 assets1 & prop]ty ( ! cu/om]4 7#b7 ,rulemak+ ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is section1 ! ,commission %all issue rules to provide t a regi/]$ digital asset brok] or digital asset deal] w be consid]$ to satisfy ! requirem5ts ( p>agraph 7#a71 ) respect to digital assets1 s long z ! digital asset brok] or digital asset deal]-- 7,a7 holds su* digital asset at a bank t-- 7i7 is recogniz$ by ! appropriate ,f$]al bank+ ag5cy or ,/ate bank sup]visor 7z su* t]ms are def9$1 respectively1 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac77 z hav+ cu/ody ov] su* assets2 7ii7 deliv]s ! digital asset to ! digital asset brok] or digital asset deal] )\t requir+ ! paym5t ( money or value2 & 7iii7 has ackn[l$g$ 9 writ+ t ! digital asset 9 ! cu/ody or control ( ! bank is free ( *>ge1 li51 or claim ( any k9d 9 favor ( su* bank or any p]son claim+ ?r\gh ! bank2 7,b7 e/abli%es1 ma9ta9s1 & en=ces writt5 policies1 proc$ures1 & controls reasonably design$ to demon/rate t ! digital asset brok] or digital asset deal]-- 7i7 has control ov] ! digital asset t ! digital asset brok] or digital asset deal] holds 9 cu/ody to protect aga9/ ! !ft1 loss1 or unau?oriz$ use ( ! private keys necess>y to access & transf] su* digital asset2 7ii7 has id5tifi$ ! /eps t w be tak5 9 ! wake ( c]ta9 ev5ts t c\ld affect ! cu/ody ( ! digital assets by ! digital asset brok] or digital asset deal]2 7iii7 c comply ) a c\rt-ord]$ freeze or seizure2 & 7iv7 has e/abli%$ arrangem5ts to all[ = ! transf] ( ! digital asset held by su* digital asset brok] or digital asset deal] to ano!r digital asset brok] or digital asset deal]1 a tru/ee1 receiv]1 liquidator1 or p]son p]=m+ a simil> function1 or to ano!r appropriate p]son1 9 ! ev5t su* digital asset brok] or digital asset deal] c no long] cont9ue z a go+ conc]n & self-liquidates or is subject to a =mal bankruptcy1 receiv]%ip1 liquidation1 or simil> proce$+2 or 7,c7 complies ) su* o!r requirem5ts z ! ,commission may p]mit4 7#c7 ,segregation ( funds 7,a7 ,9 g5]al ,a digital asset brok] or digital asset deal] %all treat & deal ) all money1 assets1 & prop]ty held = a cu/om] ( ! digital asset brok] or digital asset deal]1 or t accrues to a cu/om] z a result ( trad+ 9 digital assets1 z belong+ to ! cu/om]4 7,b7 ,comm+l+ prohibit$ ,money1 assets1 & prop]ty ( a cu/om] describ$ 9 subp>agraph 7,a7 %all be sep>ately acc\nt$ = & %all n be comm+l$ ) ! funds ( ! digital asset brok] or digital asset deal] or be us$ to m>g91 secure1 or gu>antee any trades ( any p]son o!r ?an ! cu/om] ( ! digital asset brok] or digital asset deal] = :om ! same are held4 7#d7 ,exceptions 7,a7 ,use ( funds 7i7 ,9 g5]al ,not)/&+ p>agraph 7#c71 money1 assets1 & prop]ty ( cu/om]s ( a digital asset brok] or digital asset deal] describ$ 9 p>agraph 7#c7 may be ma9ta9$ & deposit$ 9 ! same acc\nt or acc\nts ) any bank1 tru/ company1 digital asset brok]1 or digital asset deal]1 if ! money1 assets1 & prop]ty rema9 segregat$ f ! money1 assets1 & prop]ty ( ! digital asset brok] or digital asset deal]4 7ii7 ,)drawal ,not)/&+ p>agraph 7#c71 su* %>e ( ! money1 assets1 & prop]ty describ$ 9 p>agraph 7#c7 z 9 ! normal c\rse ( bus9ess %all be necess>y to transf]1 adju/1 or settle a digital asset transaction pursuant to a cu/om]'s in/ruction 7/&+ or o!rwise7 may be )drawn & appli$ to su* purposes1 includ+ ! )drawal & paym5t ( commissions1 brok]age1 int]e/1 taxes1 /orage1 & o!r *>ges lawfully accru+ 9 connection ) a digital asset transaction4 7iii7 ,commission action ,9 accordance ) su* t]ms & conditions z ! ,commission may prescribe by rule1 regulation1 or ord]1 any money1 assets1 or prop]ty ( a cu/om] ( a digital asset brok] or digital asset deal] describ$ 9 p>agraph 7#c7 may be comm+l$ & deposit$ z provid$ 9 ?is section ) any o!r money1 assets1 or prop]ty receiv$ by ! digital asset brok] or digital asset deal] & requir$ by ! ,commission to be sep>ately acc\nt$ = & treat$ & dealt ) z belong+ to ! cu/om] ( ! digital asset brok] or digital asset deal]4 7,b7 ,p>ticipation 9 block*a9 s]vices 7i7 ,9 g5]al ,a cu/om] %all h ! "r to waive ! re/rictions 9 p>agraph 7#c7 = any unit ( a digital asset1 by affirmatively elect+1 9 writ+ to ! digital asset brok] or digital asset deal]1 to waive ! re/rictions4 7ii7 ,use ( funds ,cu/om] digital assets remov$ f segregation "u clause 7i7 may be pool$ & us$ by ! digital asset brok] or digital asset deal] or its designee to provide a block*a9 s]vice = a block*a9 sy/em to :i* ! unit ( ! digital asset remov$ f segregation "u clause 7i7 relates4 7iii7 ,limitations ,! ,commission may1 by rule1 e/abli% notice & disclosure requirem5ts1 & any o!r limitations & rules relat$ to ! waiv+ ( any re/rictions "u ?is subp>agraph t are reasonably necess>y to protect cu/om]s4 7iv7 ,block*a9 s]vice def9$ ,9 ?is subp>agraph1 ! t]m block*a9 s]vice means any activity relat+ to validat+ transactions on a block*a9 sy/em1 provid+ security = a block*a9 sy/em1 or o!r simil> activity requir$ = ! ongo+ op]ation ( a block*a9 sy/em4 7#e7 ,fur!r limitations ,no p]son %all treat or deal ) a digital asset held on behalf ( any cu/om] pursuant to p>agraph 7#c7 by utiliz+ any unit ( su* digital asset to p>ticipate 9 a block*a9 s]vice 7z def9$ 9 p>agraph 7#d77;,b77iv77 or a dec5traliz$ gov]nance sy/em associat$ ) ! digital asset or ! block*a9 sy/em to :i* ! digital asset relates 9 any mann] o!r ?an t :i* is expressly direct$ by ! cu/om] f :i* su* unit ( a digital asset 0 receiv$4 7f7 ,capital requirem5ts 7#a7 ,9 g5]al ,ea* regi/]$ digital asset brok] & regi/]$ digital asset deal] %all meet su* m9imum requirem5ts z ! ,commission may prescribe to ensure t ! digital asset brok] or digital asset deal] is able to-- 7,a7 conduct an ord]ly w9d-d[n ( ! activities ( ! digital asset brok] or digital asset deal]2 & 7,b7 fulfill ! cu/om] obligations ( ! digital asset brok] or digital asset deal]4 7#b7 ,calculation ,= purposes ( any ,commission rule or ord] adopt$ "u ?is section or any int]pretation !re( regulat+ a digital asset brok] or digital asset deal]'s f9ancial responsibility obligations & capital requirem5ts1 a regi/]$ digital asset brok] or digital asset deal] t ma9ta9s control ( cu/om] digital assets 9 a mann] t satisfies ! rules issu$ by ! ,commission "u subsection 7e77#b7 %all n be requir$ to include ! value ( su* digital assets z assets or liabilities ( ! digital asset brok] or digital asset deal]4 7#c7 ,coord9ation ( capital requirem5ts 7,a7 ,commission rule ,! ,commission %all1 by rule1 provide appropriate (fsets to any applicable capital requirem5t = a p]son ) multiple regi/rations1 includ+ z a brok]1 deal]1 digital asset brok]1 or digital asset deal]4 7,b7 ,jo9t rule ,! ,commission & ! ,commodity ,futures ,trad+ ,commission %all jo9tly1 by rule1 provide appropriate (fsets to any applicable capital requirem5t = a p]son ) multiple regi/rations1 includ+ z a digital asset brok]1 digital asset deal]1 digital asset trad+ sy/em1 digital commodity brok]1 digital commodity deal]1 or digital commodity ex*ange4 7g7 ,report+ & recordkeep+ ,ea* regi/]$ digital asset brok] & digital asset deal]-- 7#a7 %all make su* reports z are requir$ by ! ,commission by rule or regulation reg>d+ ! transactions1 positions1 & f9ancial condition ( ! digital asset brok] or digital asset deal]2 7#b7 %all keep books & records 9 su* =m & mann] & = su* p]iod z may be prescrib$ by ! ,commission by rule or regulation2 & 7#c7 %all keep ! books & records op5 to inspection & exam9ation by any repres5tative ( ! ,commission4 7h7 ,treatm5t "u ! ,bank ,secrecy ,act ,a digital asset brok] & a digital asset deal] %all be treat$ z a f9ancial in/itution = purposes ( ! ,bank ,secrecy ,act4 4 #cjg4 ,rules relat$ to conflicts ( int]e/ ,! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 is am5d$ by ins]t+ aft] section #aj;,d ! foll[+3 #aj;,e4 ,conflicts ( int]e/ relat$ to digital assets ,ea* regi/]$ digital asset trad+ sy/em1 regi/]$ digital asset brok]1 regi/]$ digital asset deal]1 & notice-regi/]$ digital asset cle>+ ag5cy %all e/abli%1 ma9ta91 & en=ce writt5 policies & proc$ures reasonably design$1 tak+ into consid]ation ! nature ( su* p]son's bus9ess1 to mitigate any conflicts ( int]e/ & transactions or arrangem5ts ) affiliates4 4 #cjh4 ,treatm5t ( c]ta9 digital assets 9 connection ) f$]ally regulat$ int]m$i>ies ,section #ah7;b7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #ggr7b77 is am5d$ by add+ at ! end ! foll[+3 7#e7 ,exemption = c]ta9 digital assets 9 connection ) f$]ally regulat$ int]m$i>ies ,a digital asset is a cov]$ security ) respect to a transaction t is exempt f regi/ration "u ?is ,act :5-- 7,a7 x is brok]$1 trad$1 cu/odi$1 or cle>$ by a digital asset brok] or digital asset deal] regi/]$ "u section #ae;,h ( ! ,securities ,ex*ange ,act ( #aicd2 or 7,b7 trad$ ?r\gh a digital asset trad+ sy/em 7z def9$ "u section #bdb4cja ( title #ag1 ,code ( ,f$]al ,regulations74 4 #cji4 ,dual regi/ration ,any p]son t is regi/]$ ) ! ,securities & ,ex*ange ,commission z a digital asset brok]1 digital asset deal]1 or digital asset trad+ sy/em may regi/] ) ! ,commodity ,futures ,trad+ ,commission1 z appropriate1 z-- 7#a7 a digital commodity ex*ange "u section #e;i ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq471 z add$ by ?is ,act1 if ! p]son (f]s or seeks to (f] a ca% or spot m>ket 9 at lea/ "o digital commodity2 7#b7 a digital commodity brok] "u section #du ( ! ,commodity ,ex*ange ,act1 z add$ by ?is ,act1 if ! p]son is engag$ 9 solicit+ or accept+ ord]s 9 digital commodity ca% or spot m>kets2 or 7#c7 a digital commodity deal] "u section #du ( ! ,commodity ,ex*ange ,act1 z add$ by ?is ,act1 if ! p]son holds !mself out z a deal] 9 digital commodity ca% or spot m>kets4 #caj4 ,exclusion = ancill>y activities ,! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 is am5d$ by ins]t+ aft] section #ae;,g ! foll[+3 #ae;,h4 ,exclusion = ancill>y activities 7a7 ,9 g5]al ,not)/&+ any o!r provision ( ?is ,act1 a p]son %all n be subject to ?is ,act & ! regulations !reund] solely bas$ on ! p]son und]tak+ any ancill>y activities4 7b7 ,exceptions ,subsection 7a7 %all n be con/ru$ to apply to ! antimanipulation & antifraud au?orities ( ! ,commission4 7c7 ,ancill>y activities def9$ ,9 ?is section1 ! t]m ancill>y activities means any ( ! foll[+ activities relat$ to ! op]ation ( a block*a9 sy/em3 7#a7 ,compil+ network transactions1 op]at+ a pool1 relay+1 se>*+1 sequ5c+1 validat+1 or act+ 9 a simil> capacity ) respect to a re/rict$ digital asset4 7#b7 ,provid+ computational "w1 op]at+ a node1 or procur+1 (f]+1 or utiliz+ network b&wid?1 or o!r simil> incid5tal s]vices ) respect to a re/rict$ digital asset4 7#c7 ,provid+ a us] int]face t enables a us] to read & access data ab\t a block*a9 sy/em1 s5d messages1 or o!rwise int]act ) a block*a9 sy/em4 7#d7 ,develop+1 publi%+1 con/itut+1 adm9i/]+1 ma9ta9+1 or o!rwise di/ribut+ a block*a9 sy/em4 7#e7 ,develop+1 publi%+1 con/itut+1 adm9i/]+1 ma9ta9+1 or o!rwise di/ribut+ s(tw>e or sy/ems t create or deploy a h>dw>e or s(tw>e wallet or o!r sy/em facilitat+ an individual us]'s own p]sonal ability to keep1 safegu>d1 or cu/ody ! us]'s re/rict$ digital assets or relat$ private keys4 4 #caa4 ,regi/ration & requirem5ts = notice-regi/]$ digital asset cle>+ ag5cies ,section #ag;,a7b7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #ghq-#a7;b77 is am5d$-- 7#a7 9 subsection 7#a71 by ins]t+ 7o!r ?an a notice-regi/]$ digital asset cle>+ ag5cy7 aft] unlawful = any cle>+ ag5cy2 & 7#b7 by add+ at ! end1 ! foll[+3 7#i7 ,regi/ration & requirem5ts = notice-regi/]$ digital asset cle>+ ag5cy 7,a7 ,eligibility ,a p]son may regi/] ) ! ,commission z a notice-regi/]$ digital asset cle>+ ag5cy if ! p]son-- 7i7 is o!rwise regi/]$ z a digital asset brok] or digital asset deal] ) ! ,commission & is engag+ 9 a bus9ess involv+ digital assets t are n digital commodities1 9 compliance ) ,commission rules pursuant to section #ae;,h7e72 or 7ii7 is a bank engag+ 9 a bus9ess involv+ digital assets1 9 compliance ) applicable bank+ law & regulation relat+ to ! cu/ody & safekeep+ ( su* assets4 7,b7 ,regi/ration ,a p]son may regi/] ) ! ,commission z a notice-regi/]$ digital asset cle>+ ag5cy by provid+ ! ,commission ) notice ( ! activities ( ! p]son or plann$ activities 9 su* =m z ! ,commission det]m9es appropriate4 7,c7 ,rulemak+ ,! ,commission may adopt rules1 :i* may n take effect until at lea/ #cfj days foll[+ ! date ( enactm5t ( ?is p>agraph1 ) reg>d to ! activities ( notice-regi/]$ digital asset cle>+ ag5cies1 tak+ into acc\nt ! nature ( digital assets4 4 #cab4 ,treatm5t ( cu/ody activities by bank+ in/itutions 7a7 ,treatm5t ( cu/ody activities ,! appropriate ,f$]al bank+ ag5cy 7z def9$ "u section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac771 ! ,national ,cr$it ,union ,adm9i/ration 79 ! case ( a cr$it union71 & ! ,securities & ,ex*ange ,commission may n require a depository in/itution1 national bank1 ,f$]al cr$it union1 ,/ate cr$it union1 or tru/ company1 or any affiliate !re(-- 7#a7 to include assets held 9 cu/ody z a liability on any f9ancial /atem5t or balance %eet1 includ+ paym5t /ableco9 cu/ody or safekeep+ activities2 7#b7 to hold additional regulatory capital aga9/ assets 9 cu/ody or safekeep+1 except z necess>y to mitigate aga9/ op]ational risks inh]5t ) ! cu/ody or safekeep+ s]vices1 z det]m9$ by-- 7,a7 ! appropriate ,f$]al bank+ ag5cy2 7,b7 ! ,national ,cr$it ,union ,adm9i/ration 79 ! case ( a cr$it union72 7,c7 a ,/ate bank sup]visor 7z def9$ "u section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac772 or 7,d7 a ,/ate cr$it union sup]visor 7z def9$ "u section #fjjc ( ! ,anti-,money ,laund]+ ,act ( #bjbj72 or 7#c7 to recognize a liability = any obligations relat$ to activities or s]vices p]=m$ = digital assets t ! entity does n own if t liability w\ld exce$ ! exp5se recogniz$ 9 ! income /atem5t z a result ( ! correspond+ obligation4 7b7 ,def9itions ,9 ?is section3 7#a7 ,depository in/itution ,! t]ms depository in/itution has ! mean+ giv5 t t]m "u section #c ( ! ,f$]al ,deposit ,insurance ,act4 7#b7 ,cr$it union t]ms ,! t]ms ,f$]al cr$it union & ,/ate cr$it union h ! mean+ giv5 ^? t]ms1 respectively1 "u section #aja ( ! ,f$]al ,cr$it ,union ,act4 ,,iv4 ,regi/ration = ,digital ,asset ,int]m$i>ies at ! ,commodity ,futures ,trad+ ,commission #dja4 ,commission jurisdiction ov] digital commodity transactions 7a7 ,9 g5]al ,section #b7;a77#a7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #b7;a77#a77 is am5d$ by add+ at ! end ! foll[+3 7,j7 ,except z expressly provid$ 9 ?is ,act1 no?+ 9 ! ,f9ancial ,innovation & ,te*nology = ! #ba/ ,c5tury ,act %all affect or apply to1 or be int]pret$ to affect or apply to-- 7i7 any agreem5t1 contract1 or transaction t is subject to ?is ,act z-- 7,i7 a contract ( sale ( a commodity = future deliv]y or an option on su* a contract2 7,,ii7 a swap2 7,,iii7 a security futures product2 7,,iv7 an option au?oriz$ "u section #d;c ( ?is ,act2 7,v7 an agreem5t1 contract1 or transaction describ$ 9 subp>agraph 7,c77i7 or 7,d77i7 ( subsection 7c77#b7 ( ?is section2 or 7,,vi7 a lev]age transaction au?oriz$ "u section #ai ( ?is ,act2 or 7ii7 ! activities ( any p]son ) respect to any su* an agreem5t1 contract1 or transaction4 4 7b7 ,9 g5]al ,section #b7;c77#a7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #b7;c77#a77 is am5d$-- 7#a7 9 subp>agraph 7,f71 by /rik+ or at ! end2 7#b7 9 subp>agraph 7,g71 by /rik+ ! p]iod & ins]t+ 2 or2 & 7#c7 by add+ at ! end ! foll[+3 7,h7 p]mitt$ paym5t /ableco9s4 4 7c7 ,9 g5]al ,section #b7;c77#b7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #b7;c77#b77 is am5d$-- 7#a7 9 subp>agraph 7,d77ii7-- 7,a7 9 subclause 7,,iii71 9 ! matt] t prec$es item 7aa71 by ins]t+ ( a commodity1 o!r ?an a digital commodity1 be=e t2 & 7,b7 by r$esignat+ subclauses 7,,iv7 & 7,v7 z subclauses 7,v7 & 7,,vi7 & ins]t+ aft] subclause 7,,iii7 ! foll[+3 7,,iv7 a contract ( sale ( a digital commodity t-- 7aa7 results 9 actual deliv]y1 z ! ,commission %all by rule det]m9e1 )9 #b days or su* o!r p]iod z ! ,commission may det]m9e by rule or regulation bas$ ^u ! typical comm]cial practice 9 ca% or spot m>kets = ! digital commodity involv$2 or 7bb7 is execut$ ) a regi/]$ digital commodity deal]-- 7,,aa7 directly2 7,,bb7 ?r\gh a regi/]$ digital commodity brok]2 or 7,,cc7 on or subject to ! rules ( a regi/]$ digital commodity ex*ange2 2 & 7#b7 by add+ at ! end ! foll[+3 7,f7 ,commission jurisdiction ) respect to digital commodity transactions 7i7 ,9 g5]al ,subject to sections #f;d & #ab7;e71 ! ,commission %all h exclusive jurisdiction ) respect to any acc\nt1 agreem5t1 contract1 or transaction involv+ a contract ( sale ( a digital commodity 9 int]/ate comm]ce1 includ+ 9 a digital commodity ca% or spot m>ket1 t is (f]$1 solicit$1 trad$1 facilitat$1 execut$1 cle>$1 report$1 or o!rwise dealt 9-- 7,i7 on or subject to ! rules ( a regi/]$ entity or an entity t is requir$ to be regi/]$ z a regi/]$ entity2 or 7,,ii7 by any o!r entity regi/]$1 or requir$ to be regi/]$1 ) ! ,commission4 7ii7 ,limitations ,clause 7i7 %all n apply ) respect to cu/odial or depository activities = a digital commodity1 or cu/odial or depository activities = any promise or "r to a future digital commodity1 ( an entity regulat$ by an appropriate ,f$]al bank+ ag5cy or a ,/ate bank sup]visor 7)9 ! mean+ ( section #c ( ! ,f$]al ,deposit ,insurance ,act74 7iii7 ,mix$ digital asset transactions 7,i7 ,9 g5]al ,clause 7i7 %all n apply to a mix$ digital asset transaction4 7,,ii7 ,ov]sight ( mix$ digital asset transactions ,a mix$ digital asset transaction %all be subject to ! exclusive jurisdiction ( ! ,securities & ,ex*ange ,commission4 7,,iii7 ,reports on mix$ digital asset transactions ,a digital asset issu]1 relat$ p]son1 affiliat$ p]son1 or o!r p]son regi/]$ ) ! ,securities & ,ex*ange ,commission t engages 9 a mix$ digital asset transaction1 %all1 on reque/1 op5 to inspection & exam9ation by ! ,commodity ,futures ,trad+ ,commission all books & records relat+ to ! mix$ digital asset transaction1 subject to ! confid5tiality & disclosure requirem5ts ( section #h4 7,g7 ,agreem5ts1 contracts1 & transactions 9 /ableco9s 7i7 ,treatm5t ( p]mitt$ paym5t /ableco9s on commission-regi/]$ entities ,subject to clauses 7ii7 & 7iii71 ! ,commission %all h jurisdiction ov] a ca% or spot agreem5t1 contract1 or transaction 9 a p]mitt$ paym5t /ableco9 t is (f]$1 (f]$ to ent] into1 ent]$ into1 execut$1 confirm$ ! execution (1 solicit$1 or accept$-- 7,i7 on or subject to ! rules ( a regi/]$ entity2 or 7,,ii7 by any o!r entity regi/]$ ) ! ,commission4 7ii7 ,p]mitt$ paym5t /ableco9 transaction rules ,?is ,act %all apply to a transaction describ$ 9 clause 7i7 only = ! purpose ( regulat+ ! (f]1 execution1 solicitation1 or acceptance ( a ca% or spot p]mitt$ paym5t /ableco9 transaction on a regi/]$ entity or by any o!r entity regi/]$ ) ! ,commission1 z if ! p]mitt$ paym5t /ableco9 7 a digital commodity4 7iii7 ,no au?ority ov] p]mitt$ paym5t /ableco9s ,not)/&+ clause 7ii71 ! ,commission %all n make a rule or regulation1 impose a requirem5t or obligation on a regi/]$ entity or o!r entity regi/]$ ) ! ,commission1 or impose a requirem5t or obligation on a p]mitt$ paym5t /ableco9 issu]1 reg>d+ ! op]ation ( a p]mitt$ paym5t /ableco9 issu] or a p]mitt$ paym5t /ableco91 includ+ any aspect ( su* an op]ation or su* a /ableco94 4 7d7 ,con=m+ am5dm5t ,section #b7;a77#a77;,a7 ( su* ,act 7#g ,u4,s4,c4 #b7;a77#a77;,a77 is am5d$ 9 ! #a/ s5t5ce by ins]t+ subp>agraphs 7,f7 & 7,g7 ( subsection 7c77#b7 ( ?is section or be=e section #ai4 #djb4 ,requir+ futures commission m]*ants to use qualifi$ digital commodity cu/odians ,section #d;d ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #f;d7 is am5d$-- 7#a7 9 subsection 7a77#b7-- 7,a7 9 ! #a/ proviso1 by /rik+ any bank or tru/ company & ins]t+ any bank1 tru/ company1 or qualifi$ digital commodity cu/odian2 & 7,b7 by ins]t+ 3 ,provid$ fur!r1 ,t any su* prop]ty t is a digital commodity %all be held 9 a qualifi$ digital commodity cu/odian be=e ! p]iod at ! end2 & 7#b7 9 subsection 7f77#c77;,a77i71 by /rik+ any bank or tru/ company & ins]t+ any bank1 tru/ company1 or qualifi$ digital commodity cu/odian4 #djc4 ,trad+ c]tification & approval = digital commodities ,section #e;c ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #g;a-#b7 is am5d$-- 7#a7 9 subsection 7a71 by /rik+ #e7;d7 & #e;b7c77#b7 & ins]t+ #e7;d71 #e;b7c77#b71 & #e;i7c72 7#b7 9 subsection 7b7-- 7,a7 9 ea* ( p>agraphs 7#a7 & 7#b71 by ins]t+ digital commodity ex*ange1 be=e d]ivatives2 & 7,b7 9 p>agraph 7#c71 by ins]t+ digital commodity ex*ange1 be=e d]ivatives ea* place x appe>s2 7#c7 9 subsection 7c7-- 7,a7 9 p>agraph 7#b71 by ins]t+ or p>ticipants be=e 79 a2 7,b7 9 p>agraph 7#d77;,b71 by /rik+ #a;a7#aj7 & ins]t+ #a;a7#i72 & 7,c7 9 p>agraph 7#e71 by add+ at ! end ! foll[+3 7,d7 ,special rules = digital commodity contracts ,9 c]tify+ any new rule or rule am5dm5t1 or li/+ any new contract or in/rum5t1 9 connection ) a contract ( sale ( a commodity = future deliv]y1 option1 swap1 or o!r agreem5t1 contract1 or transaction1 t is bas$ on or ref]5ces a digital commodity1 a regi/]$ entity %all make or rely on a c]tification "u subsection 7d7 = ! digital commodity4 2 & 7#d7 by ins]t+ aft] subsection 7c7 ! foll[+3 7d7 ,c]tifications = digital commodity trad+ 7#a7 ,9 g5]al ,not)/&+ subsection 7c71 = ! purposes ( li/+ or (f]+ a digital commodity = trad+ 9 a digital commodity ca% or spot m>ket1 an eligible entity %all issue a writt5 c]tification t ! digital commodity meets ! requirem5ts ( ?is ,act 7includ+ regulations !reund]74 7#b7 ,cont5ts ( ! c]tification 7,a7 ,9 g5]al ,9 mak+ a writt5 c]tification "u ?is p>agraph1 ! eligible entity %all furni% to ! ,commission-- 7i7 an analysis ( h[ ! digital commodity meets ! requirem5ts ( section #e;i7c77#c72 7ii7 in=mation ab\t ! digital commodity reg>d+-- 7,i7 its purpose & use2 7,,ii7 its unit creation or release process2 7,,iii7 its cons5sus me*anism2 7,,iv7 its gov]nance /ructure2 7,v7 its p>ticipation & di/ribution2 & 7,,vi7 its curr5t & propos$ functionality2 & 7iii7 any o!r in=mation1 analysis1 or docum5tation ! ,commission may1 by rule1 require4 7,b7 ,reliance on prior disclosures ,9 mak+ a c]tification "u ?is subsection1 an eligible entity may rely on ! records & disclosures ( any relevant p]son regi/]$ ) ! ,securities & ,ex*ange ,commission or o!r ,/ate or ,f$]al ag5cy4 7#c7 ,modifications 7,a7 ,9 g5]al ,an eligible entity %all modify a c]tification made "u p>agraph 7#a7 to-- 7i7 acc\nt = significant *anges 9 any in=mation provid$ to ! ,commission "u p>agraph 7#b77;,a77ii72 or 7ii7 p]mit or re/rict trad+ 9 units ( a digital commodity asset held by a relat$ p]son or an affiliat$ p]son4 7,b7 ,rec]tification ,modifications requir$ by ?is subsection %all be subject to ! same disapproval & review process z a new c]tification "u p>agraphs 7#d7 & 7#e74 7#d7 ,disapproval 7,a7 ,9 g5]al ,! writt5 c]tification describ$ 9 p>agraph 7#a7 %all become effective unless ! ,commission f9ds t ! digital asset does n meet ! requirem5ts ( ?is ,act or ! rules & regulations !reund]4 7,b7 ,analysis requir$ ,! ,commission %all include1 ) any f9d+s ref]r$ to 9 subp>agraph 7,a71 a detail$ analysis ( ! factors on :i* ! decision 0 bas$4 7,c7 ,public f9d+s ,! ,commission %all make public any disapproval decision1 & any relat$ f9d+s & analysis1 made "u ?is p>agraph4 7#e7 ,review 7,a7 ,9 g5]al ,unless ! ,commission makes a disapproval decision "u p>agraph 7#d71 ! writt5 c]tification describ$ 9 p>agraph 7#a7 %all become effective1 pursuant to ! c]tification by ! eligible entity & notice ( ! c]tification to ! public 79 a mann] det]m9$ by ! ,commission7 on ! date t is-- 7i7 #bj bus9ess days aft] ! date ! ,commission receives ! c]tification 7or su* %ort] p]iod z det]m9$ by ! ,commission by rule or regulation71 9 ! case ( a digital commodity t has n be5 c]tifi$ "u ?is section or = :i* a c]tification is be+ modifi$ "u p>agraph 7#c72 or 7ii7 #b bus9ess days aft] ! date ! ,commission receives ! c]tification 7or su* %ort] p]iod z det]m9$ by ! ,commission by rule or regulation7 = any digital commodity t has be5 c]tifi$ "u ?is section4 7,b7 ,ext5sions ,! "t = consid]ation "u subp>agraph 7,a7 may be ext5d$ ?r\gh notice to ! eligible entity t !re are novel or complex issues t require additional "t to analyze1 t ! explanation by ! submitt+ eligible entity is inadequate1 or ( a pot5tial inconsi/5cy ) ?is ,act-- 7i7 once1 = #cj bus9ess days1 ?r\gh writt5 notice to ! eligible entity by ! ,*airman2 & 7ii7 once1 = an additional #cj bus9ess days1 ?r\gh writt5 notice to ! digital commodity ex*ange f ! ,commission t includes a description ( any defici5cies ) ! c]tification1 includ+ any-- 7,i7 novel or complex issues :i* require additional "t to analyze2 7,,ii7 miss+ in=mation or inadequate explanations2 or 7,,iii7 pot5tial inconsi/5cies ) ?is ,act4 7#f7 ,c]tification requir$ ,not)/&+ any o!r provision ( ?is ,act1 a regi/]$ entity or o!r entity regi/]$ ) ! ,commission %all n li/ = trad+1 accept = cle>+1 (f] to ent] into1 ent] into1 execute1 confirm ! execution (1 or conduct any (fice or bus9ess any:]e 9 ! ,unit$ ,/ates1 its t]ritories or possessions1 = ! purpose ( solicit+1 or accept+ any ord] =1 or o!rwise deal+ 91 any transaction 91 or 9 connection )1 a digital commodity1 unless a c]tification has be5 made "u ?is section = ! digital commodity4 7#g7 ,prior approval 7,a7 ,new regi/rants ,a digital commodity ex*ange may only li/1 z ( ! effective date ( approval ( ! regi/ration ( ! digital commodity ex*ange1 ! digital commodity = :i* ! digital commodity ex*ange has receiv$ prior approval "u ?is subsection4 7,b7 ,deadl9e ,! ,commission %all take f9al action on a reque/ = prior approval n lat] ?an #ij bus9ess days aft] submission ( ! reque/1 unless ! p]son submitt+ ! reque/ agrees to an ext5sion ( ! "t limitation e/abli%$ "u ?is subp>agraph4 7,c7 ,disapproval ,! ,commission may disapprove a reque/ = prior approval "u subp>agraph 7,b7 9 accordance ) crit]ia applicable to disapproval 9 p>agraph 7#d74 7#h7 ,eligible entity def9$ ,9 ?is subsection1 ! t]m eligible entity means a regi/]$ entity or gr\p ( regi/]$ entities act+ jo9tly4 4 #djd4 ,regi/ration ( digital commodity ex*anges ,! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq47 is am5d$ by ins]t+ aft] section #e;h ! foll[+3 #e;i4 ,regi/ration ( digital commodity ex*anges 7a7 ,9 g5]al 7#a7 ,regi/ration 7,a7 ,9 g5]al ,a trad+ facility t (f]s or seeks to (f] a ca% or spot m>ket 9 at lea/ #a digital commodity %all regi/] ) ! ,commission z a digital commodity ex*ange4 7,b7 ,application ,a p]son desir+ to regi/] z a digital commodity ex*ange %all submit to ! ,commission an application 9 su* =m & conta9+ su* in=mation z ! ,commission may require = ! purpose ( mak+ ! det]m9ations requir$ = approval4 7,c7 ,exemptions ,a trad+ facility t (f]s or seeks to (f] a ca% or spot m>ket 9 at lea/ #a digital commodity %all n be requir$ to regi/] "u ?is section if ! trad+ facility-- 7i7 p]mits no m ?an a de m9imis am\nt ( trad+ activity2 or 7ii7 s]ves only cu/om]s 9 a s+le ,/ate or t]ritory4 7#b7 ,additional regi/rations 7,a7 ,) ! ,commission 7i7 ,9 g5]al ,a regi/]$ digital commodity ex*ange may also regi/] z-- 7,i7 a designat$ contract m>ket2 or 7,,ii7 a swap execution facility4 7ii7 ,rules ,= an entity ) multiple regi/rations "u clause 7i71 ! ,commission-- 7,i7 %all prescribe rules to exempt ! entity f duplicative1 conflict+1 or unduly burd5some provisions ( ?is ,act & ! rules "u ?is ,act1 to ! ext5t su* an exemption w\ld fo/] ! developm5t ( fair & ord]ly ca% or spot m>kets 9 digital commodities1 be necess>y or appropriate 9 ! public int]e/1 & be consi/5t ) ! protection ( cu/om]s2 & 7,,ii7 may1 aft] an analysis ( ! risks & b5efits1 prescribe rules to provide = portfolio m>g9+1 z may be necess>y to protect m>ket p>ticipants1 promote fair & equitable trad+ 9 digital commodity m>kets1 & promote responsible economic or f9ancial innovation4 7,b7 ,) ! ,securities & ,ex*ange ,commission ,a regi/]$ digital commodity ex*ange may regi/] ) ! ,securities & ,ex*ange ,commission z a digital asset trad+ sy/em to li/ or trade contracts ( sale = digital assets deem$ securities4 7,c7 ,) a regi/]$ futures association 7i7 ,9 g5]al ,a regi/]$ digital commodity ex*ange %all also be a memb] ( a regi/]$ futures association & comply ) rules relat$ to su* activity1 if ! regi/]$ digital commodity ex*ange accepts cu/om] funds requir$ to be segregat$ "u subsection 7d74 7ii7 ,rulemak+ requir$ ,! ,commission %all require any regi/]$ futures association ) a digital commodity ex*ange z a memb] to provide su* rules z may be necess>y to fur!r compliance ) subsection 7d71 protect cu/om]s1 & promote ! public int]e/4 7,d7 ,regi/ration requir$ ,a p]son requir$ to be regi/]$ z a digital commodity ex*ange "u ?is section %all regi/] ) ! ,commission z su* reg>dless ( :e!r ! p]son is regi/]$ ) ano!r ,/ate or ,f$]al regulator4 7b7 ,trad+ 7#a7 ,prohibition on c]ta9 trad+ practices 7,a7 ,section #d;b %all apply to any agreem5t1 contract1 or transaction 9 a digital commodity z if ! agreem5t1 contract1 or transaction 7 a contract ( sale ( a commodity = future deliv]y4 7,b7 ,section #d;c %all apply to any agreem5t1 contract1 or transaction 9 a digital commodity z if ! agreem5t1 contract1 or transaction 7 a transaction involv+ ! pur*ase or sale ( a commodity = future deliv]y4 7#b7 ,prohibition on act+ z a c\nt]p>ty 7,a7 ,9 g5]al ,a digital commodity ex*ange or any affiliate ( su* an ex*ange %all n trade on or subject to ! rules ( ! digital commodity ex*ange = its own acc\nt4 7,b7 ,exceptions ,! ,commission %all1 by rule1 p]mit a digital commodity ex*ange or any affiliate ( a digital commodity ex*ange to engage 9 trad+ on an affiliat$ ex*ange s long z ! trad+ is n solely = ! purpose ( ! pr(it ( ! ex*ange1 includ+ ! foll[+3 7i7 ,cu/om] direction ,a transaction =1 or ent]$ into at ! direction (1 or = ! b5efit (1 an unaffiliat$ cu/om]4 7ii7 ,risk managem5t ,a transaction to manage ! risks associat$ ) ! digital commodity bus9ess ( ! ex*ange4 7iii7 ,functional use ,a transaction relat$ to ! functional op]ation ( a block*a9 network4 7,c7 ,notice requirem5t ,9 ord] = a digital commodity ex*ange or any affiliate ( a digital commodity ex*ange to engage 9 trad+ on ! affiliat$ ex*ange pursuant to subsection 7,b71 notice mu/ be giv5 to ! ,commission t %all enum]ate h[ any propos$ activity is consi/5t ) ! exceptions 9 subsection 7,b7 & ! pr9ciples ( ! ,act4 7,d7 ,delegation ,! ,commission may1 by rule1 delegate au?ority to ! ,director ( ! ,division ( ,m>ket ,ov]sight1 or su* o!r employee or employees z ! ,director ( ! ,division ( ,m>ket ,ov]sight may designate f "t to "t1 to c>ry out ^! provisions4 7#c7 ,trad+ securities ,a regi/]$ digital commodity ex*ange t is also regi/]$ ) ! ,securities & ,ex*ange ,commission may (f] a contract ( sale ( a digital asset deem$ a security4 7#d7 ,rules = c]ta9 digital asset sales ,! digital commodity ex*ange %all h 9 place su* rules z may be necess>y to reasonably ensure ! ord]ly sale ( any unit ( a digital commodity sold by a relat$ p]son or an affiliat$ p]son4 7c7 ,core pr9ciples = digital commodity ex*anges 7#a7 ,compliance ) core pr9ciples 7,a7 ,9 g5]al ,to be regi/]$1 & ma9ta9 regi/ration1 z a digital commodity ex*ange1 a digital commodity ex*ange %all comply )-- 7i7 ! core pr9ciples describ$ 9 ?is subsection2 & 7ii7 any requirem5t t ! ,commission may impose by rule or regulation pursuant to section #h;a7#e74 7,b7 ,reasonable discretion ( a digital commodity ex*ange ,unless o!rwise det]m9$ by ! ,commission by rule or regulation1 a digital commodity ex*ange describ$ 9 subp>agraph 7,a7 %all h reasonable discretion 9 e/abli%+ ! mann] 9 :i* ! digital commodity ex*ange complies ) ! core pr9ciples describ$ 9 ?is subsection4 7#b7 ,compliance ) rules ,a digital commodity ex*ange %all-- 7,a7 e/abli% & en=ce compliance ) any rule ( ! digital commodity ex*ange1 includ+-- 7i7 ! t]ms & conditions ( ! trades trad$ or process$ on or ?r\gh ! digital commodity ex*ange2 & 7ii7 any limitation on access to ! digital commodity ex*ange2 7,b7 e/abli% & en=ce trad+1 trade process+1 & p>ticipation rules t w det] abuses & h ! capacity to detect1 inve/igate1 & en=ce ^? rules1 includ+ means-- 7i7 to provide m>ket p>ticipants ) imp>tial access to ! m>ket2 & 7ii7 to capture in=mation t may be us$ 9 e/abli%+ :e!r rule violations h occurr$2 & 7,c7 e/abli% rules gov]n+ ! op]ation ( ! ex*ange1 includ+ rules specify+ trad+ proc$ures to be us$ 9 ent]+ & execut+ ord]s trad$ or po/$ on ! facility4 7#c7 ,li/+ /&>ds = digital commodities 7,a7 ,9 g5]al ,a digital commodity ex*ange %all p]mit trad+ only 9 a digital commodity t is n readily susceptible to manipulation4 7,b7 ,public in=mation requirem5ts 7i7 ,9 g5]al ,a digital commodity ex*ange %all p]mit trad+ only 9 a digital commodity if ! in=mation requir$ 9 clause 7ii7 is correct1 curr5t1 & available to ! public4 7ii7 ,requir$ in=mation ,) respect to a digital commodity & ea* block*a9 sy/em to :i* ! digital commodity relates = :i* ! digital commodity ex*ange w make ! digital commodity available to ! cu/om]s ( ! digital commodity ex*ange1 ! in=mation requir$ 9 ?is clause is z foll[s3 7,i7 ,s\rce code ,! s\rce code = any block*a9 sy/em to :i* ! digital commodity relates4 7,,ii7 ,transaction hi/ory ,a n>rative description ( ! /eps necess>y to indep5d5tly access1 se>*1 & v]ify ! transaction hi/ory ( any block*a9 sy/em to :i* ! digital commodity relates4 7,,iii7 ,digital asset economics ,a n>rative description ( ! purpose ( any block*a9 sy/em to :i* ! digital asset relates & ! op]ation ( any su* block*a9 sy/em1 includ+-- 7aa7 in=mation expla9+ ! laun* & supply process1 includ+ ! numb] ( digital assets to be issu$ 9 an initial allocation1 ! total numb] ( digital assets to be creat$1 ! release s*$ule = ! digital assets1 & ! total numb] ( digital assets !n out/&+2 7bb7 in=mation detail+ any applicable cons5sus me*anism or process = validat+ transactions1 me?od ( g5]at+ or m9+ digital assets1 & any process = burn+ or de/roy+ digital assets on ! block*a9 sy/em2 7cc7 an explanation ( gov]nance me*anisms = implem5t+ *anges to ! block*a9 sy/em or =m+ cons5sus among hold]s ( ! digital assets2 & 7dd7 suffici5t in=mation = a ?ird p>ty to create a tool = v]ify+ ! transaction hi/ory ( ! digital asset4 7,,iv7 ,trad+ volume & volatility ,! trad+ volume & volatility ( ! digital commodity4 7,v7 ,additional in=mation ,su* additional in=mation z ! ,commission may1 by rule1 det]m9e to be necess>y = a cu/om] to und]/& ! f9ancial & op]ational risks ( a digital commodity1 & to be 9 ! public int]e/ or 9 fur!rance ( ! requirem5ts ( ?is ,act4 7iii7 ,=mat ,! ,commission %all prescribe rules & regulations = ! /&>dization & simplification ( disclosures "u clause 7ii71 includ+ requir+ t disclosures-- 7,i7 be conspicu\s2 7,,ii7 use pla9 language compreh5sible to cu/om]s2 & 7,,iii7 succ9ctly expla9 ! in=mation t is requir$ to be communicat$ to ! cu/om]4 7,c7 ,additional li/+ consid]ations ,9 addition to ! requirem5ts ( subp>agraphs 7,a7 & 7,b71 a digital commodity ex*ange %all consid]-- 7i7 if a suffici5t p]c5tage ( ! units ( ! digital asset are units ( a digital commodity to p]mit robu/ price discov]y2 7ii7 if x is reasonably unlikely t ! transaction hi/ory c be fraudul5tly alt]$ by any p]son or gr\p ( p]sons act+ collectively2 7iii7 if ! op]at+ /ructure & sy/em ( ! digital commodity is secure f cyb]security ?reats2 7iv7 if ! functionality ( ! digital commodity w protect hold]s f op]ational failures2 7v7 if suffici5t public in=mation ab\t ! op]ation1 functionality1 & use ( ! digital commodity is available2 & 7vi7 any o!r factor :i* ! ,commission has1 by rule1 det]m9$ to be 9 ! public int]e/ or 9 fur!rance ( ! requirem5ts ( ?is ,act4 7,d7 ,re/rict$ digital assets ,a digital commodity ex*ange %all n p]mit ! trad+ ( a unit ( a digital asset t is a re/rict$ digital asset4 7#d7 ,treatm5t ( cu/om] assets ,a digital commodity ex*ange %all e/abli% /&>ds & proc$ures t are design$ to protect & ensure ! safety ( cu/om] money1 assets1 & prop]ty4 7#e7 ,monitor+ ( trad+ & trade process+ 7,a7 ,9 g5]al ,a digital commodity ex*ange %all provide a competitive1 op51 & effici5t m>ket & me*anism = execut+ transactions t protects ! price discov]y process ( trad+ on ! ex*ange4 7,b7 ,protection ( m>kets & m>ket p>ticipants ,a digital commodity ex*ange %all e/abli% & en=ce rules-- 7i7 to protect m>kets & m>ket p>ticipants f abusive practices committ$ by any p>ty1 includ+ abusive practices committ$ by a p>ty act+ z an ag5t = a p>ticipant2 & 7ii7 to promote fair & equitable trad+ on ! ex*ange4 7,c7 ,trad+ proc$ures ,a digital commodity ex*ange %all-- 7i7 e/abli% & en=ce rules or t]ms & conditions def9+1 or specifications detail+-- 7,i7 trad+ proc$ures to be us$ 9 ent]+ & execut+ ord]s trad$ on or ?r\gh ! facilities ( ! digital commodity ex*ange2 & 7,,ii7 proc$ures = trade process+ ( digital commodities on or ?r\gh ! facilities ( ! digital commodity ex*ange2 & 7ii7 monitor trad+ 9 digital commodities to prev5t manipulation1 price di/ortion1 & disruptions ( ! deliv]y or ca% settlem5t process ?r\gh surveillance1 compliance1 & discipl9>y practices & proc$ures1 includ+ me?ods = conduct+ real-"t monitor+ ( trad+ & compreh5sive & accurate trade recon/ructions4 7#f7 ,ability to obta9 in=mation ,a digital commodity ex*ange %all-- 7,a7 e/abli% & en=ce rules t w all[ ! facility to obta9 any necess>y in=mation to p]=m any ( ! functions describ$ 9 ?is section2 7,b7 provide ! in=mation to ! ,commission on reque/2 & 7,c7 h ! capacity to c>ry out su* int]national in=mation-%>+ agreem5ts z ! ,commission may require4 7#g7 ,em]g5cy au?ority ,a digital commodity ex*ange %all adopt rules to provide = ! ex]cise ( em]g5cy au?ority1 9 consultation or coop]ation ) ! ,commission or a regi/]$ entity1 z is necess>y & appropriate1 includ+ ! au?ority to facilitate ! liquidation or transf] ( op5 positions 9 any digital commodity or to susp5d or curtail trad+ 9 a digital commodity4 7#h7 ,timely publication ( trad+ in=mation 7,a7 ,9 g5]al ,a digital commodity ex*ange %all make public timely in=mation on price1 trad+ volume1 & o!r trad+ data on digital commodities to ! ext5t prescrib$ by ! ,commission4 7,b7 ,capacity ( digital commodity ex*ange ,a digital commodity ex*ange %all h ! capacity to electronically capture & transmit trade in=mation ) respect to transactions execut$ on ! ex*ange4 7#i7 ,recordkeep+ & report+ 7,a7 ,9 g5]al ,a digital commodity ex*ange %all-- 7i7 ma9ta9 records ( all activities relat+ to ! bus9ess ( ! facility1 includ+ a complete audit trail1 9 a =m & mann] acceptable to ! ,commission = a p]iod ( #e ye>s2 7ii7 report to ! ,commission1 9 a =m & mann] acceptable to ! ,commission1 su* in=mation z ! ,commission det]m9es to be necess>y or appropriate = ! ,commission to p]=m ! duties ( ! ,commission "u ?is ,act2 & 7iii7 keep any su* records ( digital commodities :i* relate to a security op5 to inspection & exam9ation by ! ,securities & ,ex*ange ,commission4 7,b7 ,in=mation-%>+ ,subject to section #h1 & on reque/1 ! ,commission %all %>e in=mation collect$ "u subp>agraph 7,a7 )-- 7i7 ! ,bo>d2 7ii7 ! ,securities & ,ex*ange ,commission2 7iii7 ea* appropriate ,f$]al bank+ ag5cy2 7iv7 ea* appropriate ,/ate bank sup]visor 7)9 ! mean+ ( section #c ( ! ,f$]al ,deposit ,insurance ,act72 7v7 ! ,f9ancial ,/ability ,ov]sight ,c\ncil2 7vi7 ! ,dep>tm5t ( ,ju/ice2 & 7vii7 any o!r p]son t ! ,commission det]m9es to be appropriate1 includ+-- 7,i7 =eign f9ancial sup]visors 7includ+ =eign futures au?orities72 7,,ii7 =eign c5tral banks2 & 7,,iii7 =eign m9i/ries4 7,c7 ,confid5tiality agreem5t ,be=e ! ,commission may %>e in=mation ) any entity describ$ 9 subp>agraph 7,b71 ! ,commission %all receive a writt5 agreem5t f ! entity /at+ t ! entity %all abide by ! confid5tiality requirem5ts describ$ 9 section #h relat+ to ! in=mation on digital commodities t is provid$4 7,d7 ,provid+ in=mation ,a digital commodity ex*ange %all provide to ! ,commission 7includ+ any designee ( ! ,commission7 in=mation "u subp>agraph 7,a7 9 su* =m & at su* frequ5cy z is requir$ by ! ,commission4 7#aj7 ,antitru/ consid]ations ,unless necess>y or appropriate to a*ieve ! purposes ( ?is ,act1 a digital commodity ex*ange %all n-- 7,a7 adopt any rules or take any actions t result 9 any unreasonable re/ra9t ( trade2 or 7,b7 impose any mat]ial anticompetitive burd5 on trad+4 7#aa7 ,conflicts ( int]e/ ,a regi/]$ digital commodity ex*ange %all implem5t conflict-(-int]e/ sy/ems & proc$ures t-- 7,a7 e/abli% /ructural & in/itutional safegu>ds-- 7i7 to m9imize conflicts ( int]e/ t might pot5tially bias ! judgm5t or sup]vision ( ! digital commodity ex*ange & contrav5e ! pr9ciples ( fair & equitable trad+ & ! bus9ess conduct /&>ds describ$ 9 ?is ,act1 includ+ conflicts aris+ out ( transactions or arrangem5ts ) affiliates 7includ+ affiliates engag+ 9 digital commodity activities7 :i* may include in=mation p>titions & ! legal sep>ation ( diff]5t p]sons or entities involv$ 9 digital commodity activities2 & 7ii7 to ensure t ! activities ( any p]son )9 ! digital commodity ex*ange or any affiliat$ entity relat+ to rese>* or analysis ( ! price or m>ket = any digital commodity or act+ 9 a role ( provid+ deal+1 brok]+1 or advis+ activities are sep>at$ by appropriate in=mational p>titions )9 ! digital commodity ex*ange or any affiliat$ entity f ! review1 pressure1 or ov]sight ( p]sons ^: involvem5t 9 pric+1 trad+1 ex*ange1 or cle>+ activities might pot5tially bias _! judgm5t or sup]vision & contrav5e ! core pr9ciples ( op5 access & ! bus9ess conduct /&>ds describ$ 9 ?is ,act2 & 7,b7 address su* o!r issues z ! ,commission det]m9es to be appropriate4 7#ab7 ,f9ancial res\rces 7,a7 ,9 g5]al ,a digital commodity ex*ange %all h adequate f9ancial1 op]ational1 & manag]ial res\rces1 z det]m9$ by ! ,commission1 to dis*>ge ea* responsibility ( ! digital commodity ex*ange4 7,b7 ,m9imum am\nt ( f9ancial res\rces ,a digital commodity ex*ange %all possess f9ancial res\rces t1 at a m9imum1 exce$ ! total am\nt t w\ld enable ! digital commodity ex*ange to conduct an ord]ly w9d-d[n ( its activities4 7#ac7 ,discipl9>y proc$ures ,a digital commodity ex*ange %all e/abli% & en=ce discipl9>y proc$ures t au?orize ! digital commodity ex*ange to discipl9e1 susp5d1 or expel memb]s or m>ket p>ticipants t violate ! rules ( ! digital commodity ex*ange1 or simil> me?ods = p]=m+ ! same functions1 includ+ delegation ( ! functions to ?ird p>ties4 7#ad7 ,gov]nance fitness /&>ds 7,a7 ,gov]nance arrangem5ts ,a digital commodity ex*ange %all e/abli% gov]nance arrangem5ts t are transp>5t to fulfill public int]e/ requirem5ts4 7,b7 ,fitness /&>ds ,a digital commodity ex*ange %all e/abli% & en=ce appropriate fitness /&>ds =-- 7i7 directors2 & 7ii7 any individual or entity ) direct access to1 or control (1 cu/om] assets4 7#ae7 ,sy/em safegu>ds ,a digital commodity ex*ange %all-- 7,a7 e/abli% & ma9ta9 a program ( risk analysis & ov]sight to id5tify & m9imize s\rces ( op]ational & security risks1 ?r\gh ! developm5t ( appropriate controls & proc$ures1 & automat$ sy/ems1 t-- 7i7 are reliable & secure2 & 7ii7 h adequate scalable capacity2 7,b7 e/abli% & ma9ta9 em]g5cy proc$ures1 backup facilities1 & a plan = disa/] recov]y t all[ =-- 7i7 ! timely recov]y & resumption ( op]ations2 & 7ii7 ! fulfillm5t ( ! responsibilities & obligations ( ! digital commodity ex*ange2 & 7,c7 p]iodically conduct te/s to v]ify t ! backup res\rces ( ! digital commodity ex*ange are suffici5t to ensure cont9u$-- 7i7 ord] process+ & trade mat*+2 7ii7 price report+2 7iii7 m>ket surveillance2 & 7iv7 ma9t5ance ( a compreh5sive & accurate audit trail4 7d7 ,hold+ ( cu/om] assets 7#a7 ,9 g5]al ,a digital commodity ex*ange %all hold cu/om] money1 assets1 & prop]ty 9 a mann] to m9imize ! risk ( loss to ! cu/om] or unreasonable delay 9 ! access to ! money1 assets1 & prop]ty ( ! cu/om]4 7,a7 ,segregation ( funds 7i7 ,9 g5]al ,a digital commodity ex*ange %all treat & deal ) all money1 assets1 & prop]ty t is receiv$ by ! digital commodity ex*ange1 or accrues to a cu/om] z ! result ( trad+ 9 digital commodities1 z belong+ to ! cu/om]4 7ii7 ,comm+l+ prohibit$ ,money1 assets1 & prop]ty ( a cu/om] describ$ 9 clause 7i7 %all be sep>ately acc\nt$ = & %all n be comm+l$ ) ! funds ( ! digital commodity ex*ange or be us$ to m>g91 secure1 or gu>antee any trades or acc\nts ( any cu/om] or p]son o!r ?an ! p]son = :om ! same are held4 7,b7 ,exceptions 7i7 ,use ( funds 7,i7 ,9 g5]al ,not)/&+ subp>agraph 7,a71 money1 assets1 & prop]ty ( cu/om]s ( a digital commodity ex*ange describ$ 9 subp>agraph 7,a7 may1 = conv5i5ce1 be comm+l$ & deposit$ 9 ! same acc\nt or acc\nts ) any bank1 tru/ company1 d]ivatives cle>+ organization1 or qualifi$ digital commodity cu/odian4 7,,ii7 ,)drawal ,not)/&+ subp>agraph 7,a71 su* %>e ( ! money1 assets1 & prop]ty describ$ 9 item 7aa7 z 9 ! normal c\rse ( bus9ess %all be necess>y to m>g91 gu>antee1 secure1 transf]1 adju/1 or settle a contract ( sale ( a digital commodity ) a regi/]$ entity may be )drawn & appli$ to su* purposes1 includ+ ! paym5t ( commissions1 brok]age1 int]e/1 taxes1 /orage1 & o!r *>ges1 lawfully accru+ 9 connection ) ! contract ( sale ( a digital commodity4 7ii7 ,commission action ,not)/&+ subp>agraph 7,a71 9 accordance ) su* t]ms & conditions z ! ,commission may prescribe by rule1 regulation1 or ord]1 any money1 assets1 or prop]ty ( ! cu/om]s ( a digital commodity ex*ange describ$ 9 subp>agraph 7,a7 may be comm+l$ & deposit$ 9 cu/om] acc\nts ) any o!r money1 assets1 or prop]ty receiv$ by ! digital commodity ex*ange & requir$ by ! ,commission to be sep>ately acc\nt$ = & treat$ & dealt ) z belong+ to ! cu/om] ( ! digital commodity ex*ange4 7#b7 ,p]mitt$ inve/m5ts ,money describ$ 9 subp>agraph 7,a7 may be inve/$ 9 obligations ( ! ,unit$ ,/ates1 9 g5]al obligations ( any ,/ate or ( any political subdivision ( a ,/ate1 & 9 obligations fully gu>ante$ z to pr9cipal & int]e/ by ! ,unit$ ,/ates1 or 9 any o!r inve/m5t t ! ,commission may by rule or regulation prescribe1 & su* inve/m5ts %all be made 9 accordance ) su* rules & regulations & subject to su* conditions z ! ,commission may prescribe4 7#c7 ,cu/om] protection dur+ bankruptcy 7,a7 ,cu/om] prop]ty ,all assets held on behalf ( a cu/om] by a digital commodity ex*ange1 & all money1 assets1 & prop]ty ( any cu/om] receiv$ by a digital commodity ex*ange = trad+ or cu/ody1 or to facilitate1 m>g91 gu>antee1 or secure contracts ( sale ( a digital commodity 7includ+ money1 assets1 or prop]ty accru+ to ! cu/om] z ! result ( ! transactions71 %all be consid]$ cu/om] prop]ty = purposes ( section #gfa ( title #aa1 ,unit$ ,/ates ,code4 7,b7 ,transactions ,a transaction involv+ a unit ( a digital commodity occurr+ on or subject to ! rules ( a digital commodity ex*ange %all be consid]$ a contract = ! pur*ase or sale ( a commodity = future deliv]y1 on or subject to ! rules (1 a contract m>ket or bo>d ( trade = ! purposes ( ! def9ition ( a commodity contract 9 section #gfa ( title #aa1 ,unit$ ,/ates ,code4 7,c7 ,ex*anges ,a digital commodity ex*ange %all be consid]$ a futures commission m]*ant = purposes ( section #gfa ( title #aa1 ,unit$ ,/ates ,code4 7#d7 ,misuse ( cu/om] prop]ty 7,a7 ,9 g5]al ,x %all be unlawful-- 7i7 = any digital commodity ex*ange t has receiv$ any cu/om] money1 assets1 or prop]ty = cu/ody to dispose (1 or use any su* money1 assets1 or prop]ty z belong+ to ! digital commodity ex*ange2 or 7ii7 = any o!r p]son1 includ+ any depository1 o!r digital commodity ex*ange1 or digital commodity cu/odian t has receiv$ any cu/om] money1 assets1 or prop]ty = deposit1 to hold1 dispose (1 or use any su* money1 assets1 or prop]ty1 or prop]ty1 z belong+ to ! deposit+ digital commodity ex*ange or any p]son o!r ?an ! cu/om]s ( ! digital commodity ex*ange4 7,b7 ,use fur!r def9$ ,= purposes ( ?is section1 use ( a digital commodity includes utiliz+ any unit ( a digital asset to p>ticipate 9 a block*a9 s]vice def9$ 9 p>agraph 7#e7 or a dec5traliz$ gov]nance sy/em associat$ ) ! digital commodity or ! block*a9 sy/em to :i* ! digital commodity relates 9 any mann] o!r ?an t expressly direct$ by ! cu/om] f :om ! unit ( a digital commodity 0 receiv$4 7#e7 ,p>ticipation 9 block*a9 s]vices 7,a7 ,9 g5]al ,a cu/om] %all h ! "r to waive ! re/rictions 9 p>agraph 7#a7 = any unit ( a digital commodity to be us$ "u subp>agraph 7,b71 by affirmatively elect+1 9 writ+ to ! digital commodity ex*ange1 to waive ! re/rictions4 7,b7 ,use ( funds ,cu/om] digital commodities remov$ f segregation "u subp>agraph 7,a7 may be pool$ & us$ by ! digital commodity ex*ange or its designee to provide a block*a9 s]vice = a block*a9 sy/em to :i* ! unit ( ! digital asset remov$ f segregation 9 subp>agraph 7,a7 relates4 7,c7 ,limitations 7i7 ,9 g5]al ,! ,commission may1 by rule1 e/abli% notice & disclosure requirem5ts1 & any o!r limitations & rules relat$ to ! waiv+ ( any re/rictions "u ?is p>agraph t are reasonably necess>y to protect cu/om]s1 includ+ eligible contract p>ticipants1 non-eligible contract p>ticipants1 or any o!r class ( cu/om]s4 7ii7 ,cu/om] *oice ,a digital commodity ex*ange may n require a waiv] f a cu/om] describ$ 9 subp>agraph 7,a7 z a condition ( do+ bus9ess on ! ex*ange4 7,d7 ,block*a9 s]vice def9$ ,9 ?is subp>agraph1 ! t]m block*a9 s]vice means any activity relat+ to validat+ transactions on a block*a9 sy/em1 provid+ security = a block*a9 sy/em1 or o!r simil> activity requir$ = ! ongo+ op]ation ( a block*a9 sy/em4 7e7 ,m>ket access requirem5ts 7#a7 ,9 g5]al ,a digital commodity ex*ange %all require any p]son :o is n an eligible contract p>ticipant to access trad+ on ! ex*ange ?r\gh a digital commodity brok]4 7#b7 ,affiliat$ commodity brok]s ,a regi/]$ digital commodity ex*ange may all[ an affiliat$ digital commodity brok] to facilitate access to ! digital commodity ex*ange1 if-- 7,a7 no o!r digital commodity brok]s facilitate access to ! ex*ange2 7,b7 ! affiliat$ digital commodity _c provide cu/om] access to ano!r digital commodity ex*ange2 & 7,c7 ! affiliat$ digital commodity brok] is n also regi/]$ z a digital commodity deal]4 7#c7 ,direct access = eligible contract p>ticipants ,no?+ 9 ?is section %all prohibit a digital commodity ex*ange 9 compliance ) ?is section f p]mitt+ direct access = eligible contract p>ticipants4 7#d7 ,additional requirem5ts 7,a7 ,9 g5]al ,! ,commission may1 by rule1 impose any additional requirem5ts relat$ to ! op]ations & activities ( ! digital commodity ex*ange & ! affiliat$ digital commodity brok] necess>y to protect m>ket p>ticipants1 promote fair & equitable trad+ on ! digital commodity ex*ange1 & promote responsible economic or f9ancial innovation4 7,b7 ,delegation ( au?ority ,! ,commission may delegate to a regi/]$ futures association su* ov]sight & regulatory requirem5ts z ! ,commission det]m9es are necess>y to-- 7i7 sup]vise ! activities ( ! digital commodity ex*ange & an affiliat$ digital commodity brok]2 & 7ii7 protect m>ket p>ticipants1 promote fair & equitable trad+ on ! digital commodity ex*ange1 & promote responsible economic or f9ancial innovation4 7,c7 ,competitive access rule ,not)/&+ p>agraph 7#b77;,a71 ! ,commission %all1 by rule1 adopt /&>ds t p]mit a digital commodity ex*ange to all[ bo? affiliat$ & unaffiliat$ digital commodity brok]s to facilitate access to ! digital commodity ex*ange4 ,! ,commission rule %all address-- 7i7 additional requirem5ts = indep5d5t gov]nance arrangem5ts & fitness /&>ds ( affiliat$ entities2 7ii7 op5 access2 7iii7 conflicts ( int]e/2 7iv7 antitru/ consid]ations2 & 7v7 any o!r factor t ! ,commission det]m9es is necess>y or appropriate to fo/] an op5 & competitive m>ket & is 9 ! public int]e/4 7f7 ,designation ( *ief compliance (fic] 7#a7 ,9 g5]al ,a digital commodity ex*ange %all designate an individual to s]ve z a *ief compliance (fic]4 7#b7 ,duties ,! *ief compliance (fic] %all-- 7,a7 report directly to ! bo>d or to ! s5ior (fic] ( ! ex*ange2 7,b7 review compliance ) ! core pr9ciples 9 ?is subsection2 7,c7 9 consultation ) ! bo>d ( ! ex*ange1 a body p]=m+ a function simil> to t ( a bo>d1 or ! s5ior (fic] ( ! ex*ange1 resolve any conflicts ( int]e/ t may arise2 7,d7 e/abli% & adm9i/] ! policies & proc$ures requir$ to be e/abli%$ pursuant to ?is section2 7,e7 ensure compliance ) ?is ,act & ! rules & regulations issu$ "u ?is ,act1 includ+ rules prescrib$ by ! ,commission pursuant to ?is section2 & 7,f7 e/abli% proc$ures = ! rem$iation ( noncompliance issues f\nd dur+ compliance (fice reviews1 look backs1 int]nal or ext]nal audit f9d+s1 self-report$ errors1 or ?r\gh validat$ compla9ts4 7#c7 ,requirem5ts = proc$ures ,9 e/abli%+ proc$ures "u p>agraph 7#b77;,f71 ! *ief compliance (fic] %all design ! proc$ures to e/abli% ! h&l+1 managem5t response1 rem$iation1 rete/+1 & clos+ ( noncompliance issues4 7#d7 ,annual reports 7,a7 ,9 g5]al ,9 accordance ) rules prescrib$ by ! ,commission1 ! *ief compliance (fic] %all annually prep>e & sign a report t conta9s a description (-- 7i7 ! compliance ( ! digital commodity ex*ange ) ?is ,act2 & 7ii7 ! policies & proc$ures1 includ+ ! code ( e?ics & conflict ( int]e/ policies1 ( ! digital commodity ex*ange4 7,b7 ,requirem5ts ,! *ief compliance (fic] %all-- 7i7 submit ea* report describ$ 9 subp>agraph 7,a7 ) ! appropriate f9ancial report ( ! digital commodity ex*ange t is requir$ to be submitt$ to ! ,commission pursuant to ?is section2 & 7ii7 include 9 ! report a c]tification t1 "u p5alty ( law1 ! report is accurate & complete4 7g7 ,appo9tm5t ( tru/ee 7#a7 ,9 g5]al ,if a proce$+ "u section #e;e results 9 ! susp5sion or revocation ( ! regi/ration ( a digital commodity ex*ange1 or if a digital commodity ex*ange )draws f regi/ration1 ! ,commission1 on notice to ! digital commodity ex*ange1 may apply to ! appropriate ,unit$ ,/ates di/rict c\rt :]e ! digital commodity ex*ange is locat$ = ! appo9tm5t ( a tru/ee4 7#b7 ,assumption ( jurisdiction ,if ! ,commission applies = appo9tm5t ( a tru/ee "u p>agraph 7#a7-- 7,a7 ! c\rt may take exclusive jurisdiction ov] ! digital commodity ex*ange & ! records & assets ( ! digital commodity ex*ange1 :]ev] locat$2 & 7,b7 if ! c\rt takes jurisdiction "u subp>agraph 7,a71 ! c\rt %all appo9t ! ,commission1 or a p]son designat$ by ! ,commission1 z tru/ee ) p[] to take possession & cont9ue to op]ate or t]m9ate ! op]ations ( ! digital commodity ex*ange 9 an ord]ly mann] = ! protection ( cu/om]s subject to su* t]ms & conditions z ! c\rt may prescribe4 7h7 ,qualifi$ digital commodity cu/odian ,a digital commodity ex*ange %all hold 9 a qualifi$ digital commodity cu/odian ea* unit ( a digital commodity t is-- 7#a7 ! prop]ty ( a cu/om] ( ! digital commodity ex*ange2 7#b7 requir$ to be held by ! digital commodity ex*ange "u subsection 7c77#ab7 ( ?is section2 or 7#c7 o!rwise s requir$ by ! ,commission to reasonably protect cu/om]s or promote ! public int]e/4 7i7 ,exemptions 7#a7 ,9 ord] to promote responsible economic or f9ancial innovation & fair competition1 or protect cu/om]s1 ! ,commission may 7on its own initiative or on application ( ! regi/]$ digital commodity ex*ange7 exempt1 ei!r unconditionally or on /at$ t]ms or conditions or = /at$ p]iods & ei!r retroactively or prospectively1 or bo?1 a regi/]$ digital commodity ex*ange f ! requirem5ts ( ?is section1 if ! ,commission det]m9es t-- 7,a7 ! exemption w\ld be consi/5t ) ! public int]e/ & ! purposes ( ?is ,act2 & 7,b7 ! exemption w n h a mat]ial adv]se effect on ! ability ( ! ,commission or ! digital commodity ex*ange to dis*>ge regulatory or self-regulatory duties "u ?is ,act4 7#b7 ,! ,commission may exempt1 conditionally or unconditionally1 a digital commodity ex*ange f regi/ration "u ?is section if ! ,commission f9ds t ! digital commodity ex*ange is subject to comp>able1 compreh5sive sup]vision & regulation on a consolidat$ basis by ! appropriate gov]nm5tal au?orities 9 ! home c\ntry ( ! facility4 7j7 ,cu/om] def9$ ,9 ?is section1 ! t]m cu/om] means any p]son t ma9ta9s an acc\nt = ! trad+ ( digital commodities directly ) a digital commodity ex*ange 7o!r ?an a p]son t is own$ or controll$1 directly or indirectly1 by ! digital commodity ex*ange7 = its own behalf or on behalf ( any o!r p]son4 7k7 ,f$]al preemption ,not)/&+ any o!r provision ( law1 ! ,commission %all h exclusive jurisdiction ov] any digital commodity ex*ange regi/]$ "u ?is section4 7l7 ,treatm5t "u ! ,bank ,secrecy ,act ,a regi/]$ digital commodity ex*ange %all be treat$ z a f9ancial in/itution = purposes ( ! ,bank ,secrecy ,act4 7m7 ,)drawal ( c]tification ( a block*a9 sy/em 7#a7 ,9 g5]al 7,a7 ,det]m9ation by a digital commodity ex*ange ,) respect to a c]tification ( a block*a9 sy/em t becomes effective pursuant to section #dd7;f7 ( ! ,securities ,ex*ange ,act ( #aicd1 if a digital commodity ex*ange det]m9es t ! block*a9 sy/em may n be a dec5traliz$ network1 ! digital commodity ex*ange %all notify ! ,commission ( su* det]m9ation4 7,b7 ,)drawal process ,) respect to ea* notification receiv$ "u subp>agraph 7,a71 ! ,commission %all initiate a )drawal process "u :i* ! ,commission %all-- 7i7 publi% a notice ann\nc+ ! propos$ )drawal2 7ii7 provide a #cj day comm5t p]iod ) respect to ! propos$ )drawal2 & 7iii7 aft] ! end ( ! #cj-;day comm5t requir$ "u clause 7ii71 publi% ei!r-- 7,i7 a notification ( )drawal ( ! applicable c]tification2 or 7,,ii7 a notice t ! ,commission is n )draw+ ! c]tification4 7,c7 ,detail$ analysis requir$ ,! ,commission %all include1 ) ea* publication ( a notification ( )drawal describ$ "u subp>agraph 7,b77iii77,i71 a detail$ analysis ( ! factors on :i* ! decision 0 bas$4 7#b7 ,rec]tification ,) respect to a block*a9 sy/em = :i* a c]tification has be5 )drawn "u ?is subsection1 no p]son may make a c]tification "u section #dd7;a7 ( ! ,securities ,ex*ange ,act ( #aicd ) respect to su* block*a9 sy/em dur+ ! #ij-;day p]iod beg9n+ on ! date ( su* )drawal4 7#c7 ,appeal ( )drawal 7,a7 ,9 g5]al ,if a c]tification is )drawn "u ?is subsection1 a p]son mak+ may appeal ! decision to ! ,unit$ ,/ates ,c\rt ( ,appeals = ! ,di/rict ( ,columbia1 n lat] ?an #fj days aft] ! notice ( )drawal is made4 7,b7 ,review ,9 an appeal "u subp>agraph 7,a71 ! c\rt %all h de novo review ( ! det]m9ation to )draw ! c]tification4 4 #dje4 ,qualifi$ digital commodity cu/odians ,! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq471 z am5d$ by ! prec$+ provisions ( ?is ,act1 is am5d$ by ins]t+ aft] section #e;i ! foll[+3 #e;j4 ,qualifi$ digital commodity cu/odians 7a7 ,9 g5]al ,= purposes ( ?is ,act1 a qualifi$ digital commodity cu/odian is a digital commodity cu/odian :o meets ! foll[+ conditions3 7#a7 ,sup]vision ,! digital commodity cu/odian is subject to adequate sup]vision & appropriate regulation4 7#b7 ,no prohibition ,! digital commodity cu/odian is-- 7,a7 subject to ! sup]vision (-- 7i7 an appropriate ,f$]al bank+ ag5cy2 7ii7 a ,/ate bank sup]visor 7)9 ! mean+ ( section #c ( ! ,f$]al ,deposit ,insurance ,act72 7iii7 ! ,commission or ! ,securities & ,ex*ange ,commission2 or 7iv7 an appropriate =eign gov]nm5tal au?ority 9 ! home c\ntry ( ! digital commodity cu/odian2 & 7,b7 n prohibit$ by ! applicable sup]visor ref]r$ to 9 subp>agraph 7,a7 f engag+ 9 any activity ) respect to ! hold+ ( digital commodities4 7#c7 ,in=mation-%>+ 7,a7 ,9 g5]al ,! digital commodity cu/odian agrees to su* p]iodic %>+ ( in=mation reg>d+ cu/om] acc\nts ! digital commodity cu/odian holds on behalf ( an entity regi/]$ ) ! ,commission1 z ! ,commission det]m9es by rule %all be reasonably necess>y to effectuate any ( ! provisions1 or to accompli% any ( ! purposes1 ( ?is ,act4 7,b7 ,provision ( in=mation ,any p]son t is subject to regulation & exam9ation by an appropriate ,f$]al bank+ ag5cy may satisfy any in=mation reque/ describ$ 9 subp>agraph 7,a71 by provid+ ! ,commission ) a detail$ li/+1 9 writ+1 ( ! digital commodities ( a cu/om] )9 ! cu/ody or use ( ! p]son4 7b7 ,adequate sup]vision & appropriate regulation fur!r def9$ 7#a7 ,9 g5]al ,9 subsection 7a71 ! t]ms adequate sup]vision & appropriate regulation mean su* m9imum /&>ds = sup]vision & regulation z are reasonably necess>y to protect ! digital commodities ( cu/om]s ( an entity regi/]$ ) ! ,commission1 includ+ m9imum /&>ds relat+ to-- 7,a7 accessibility ( cu/om] assets2 7,b7 f9ancial res\rces2 7,c7 risk managem5t requirem5ts2 7,d7 gov]nance arrangem5ts2 7,e7 fitness /&>ds = (fic]s & directors2 7,f7 recordkeep+2 7,g7 in=mation-%>+2 & 7,h7 conflicts ( int]e/4 7#b7 ,deem$ compliance ,= purposes ( subsection 7a71 a digital commodity cu/odian is deem$ to be subject to adequate sup]vision & appropriate regulation1 if ! digital commodity cu/odian is-- 7,a7 subject to ! sup]vision ( ! ,commission2 or 7,b7 a bank subject to ! sup]vision ( an appropriate ,f$]al bank+ ag5cy or a ,/ate bank sup]visor 7)9 ! mean+ ( section #c ( ! ,f$]al ,deposit ,insurance ,act74 7#c7 ,rulemak+ au?ority ,= purposes ( subsection 7a71 ! ,commission may1 by rule1 fur!r def9e ! t]ms adequate sup]vision & appropriate regulation z necess>y 9 ! public int]e/1 z appropriate = ! protection ( cu/om]s1 & consi/5t ) ! purposes ( ?is ,act4 7c7 ,au?ority to tempor>ily susp5d /&>ds ,! ,commission may1 by rule or ord]1 tempor>ily susp5d1 9 :ole or 9 "p1 any requirem5t impos$ "u1 or any /&>d ref]r$ to 91 ?is section if ! ,commission det]m9es t ! susp5sion w\ld be consi/5t ) ! public int]e/ & ! purposes ( ?is ,act4 4 #djf4 ,regi/ration & regulation ( digital commodity brok]s & deal]s ,! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq471 z am5d$ by ! prec$+ provisions ( ?is ,act1 is am5d$ by ins]t+ aft] section #dt ! foll[+3 #du4 ,regi/ration & regulation ( digital commodity brok]s & deal]s 7a7 ,regi/ration ,x %all be unlawful = any p]son to act z a digital commodity brok] or digital commodity deal] unless ! p]son is regi/]$ z su* ) ! ,commission4 7b7 ,requirem5ts 7#a7 ,9 g5]al ,a p]son %all regi/] z a digital commodity brok] or digital commodity deal] by fil+ a regi/ration application ) ! ,commission4 7#b7 ,cont5ts 7,a7 ,9 g5]al ,! application %all be made 9 su* =m & mann] z is prescrib$ by ! ,commission1 & %all conta9 su* in=mation z ! ,commission consid]s necess>y conc]n+ ! bus9ess 9 :i* ! applicant is or w be engag$4 7,b7 ,cont9ual report+ ,a p]son t is regi/]$ z a digital commodity brok] or digital commodity deal] %all cont9ue to submit to ! ,commission reports t conta9 su* in=mation p]ta9+ to ! bus9ess ( ! p]son z ! ,commission may require4 7#c7 ,transition ,)9 #ahj days aft] ! date ( ! enactm5t ( ?is section1 ! ,commission %all prescribe rules provid+ = ! regi/ration ( digital commodity brok]s & digital commodity deal]s "u ?is section4 7#d7 ,/atutory disqualification ,except to ! ext5t o!rwise specifically provid$ by rule1 regulation1 or ord]1 x %all be unlawful = a digital commodity brok] or digital commodity deal] to p]mit any p]son :o is associat$ ) a digital commodity brok] or a digital commodity deal] & :o is subject to a /atutory disqualification to effect or be involv$ 9 effect+ a contract ( sale ( a digital commodity on behalf ( ! digital commodity brok] or ! digital commodity deal]1 respectively1 if ! digital commodity brok] or digital commodity deal]1 respectively1 knew1 or 9 ! ex]cise ( reasonable c>e %\ld h kn[n1 ( ! /atutory disqualification4 7#e7 ,limitations on c]ta9 assets ,a digital commodity brok] or digital commodity deal] %all n (f]1 (f] to ent] into1 ent] into1 or facilitate any contract ( sale ( a digital commodity t has n be5 c]tifi$ "u section #e;c7d74 7c7 ,additional regi/rations 7#a7 ,) ! ,commission ,any p]son requir$ to be regi/]$ z a digital commodity brok] or digital commodity deal] may also be regi/]$ z a futures commission m]*ant1 introduc+ brok]1 or swap deal]4 7#b7 ,) ! ,securities & ,ex*ange ,commission ,any p]son requir$ to be regi/]$ z a digital commodity brok] or digital commodity deal] "u ?is section may regi/] ) ! ,securities & ,ex*ange ,commission z a digital asset brok] or digital asset deal]1 pursuant to section #ae7;b7 ( ! ,securities ,ex*ange ,act ( #aicd1 z applicable1 if ! digital asset brok] or digital asset deal] limits its solicitation ( ord]s1 acceptance ( ord]s1 or execution ( ord]s1 or plac+ ( ord]s on behalf ( o!rs involv+ any contract ( sale ( digital assets4 7#c7 ,) memb]%ip 9 a regi/]$ futures association ,any p]son requir$ to be regi/]$ z a digital commodity brok] or digital commodity deal] "u ?is section %all be a memb] ( a regi/]$ futures association4 7#d7 ,regi/ration requir$ ,any p]son requir$ to be regi/]$ z a digital commodity brok] or digital commodity deal] "u ?is section %all regi/] ) ! ,commission z su* reg>dless ( :e!r ! p]son is regi/]$ ) ano!r ,/ate or ,f$]al regulator4 7d7 ,rulemak+ 7#a7 ,9 g5]al ,! ,commission %all prescribe su* rules applicable to regi/]$ digital commodity brok]s & regi/]$ digital commodity deal]s z are appropriate to c>ry out ?is section1 includ+ rules 9 ! public int]e/ t limit ! activities ( digital commodity brok]s & digital commodity deal]s4 7#b7 ,multiple regi/rants ,! ,commission %all prescribe rules or regulations p]mitt+1 or may o!rwise au?orize1 exemptions or additional requirem5ts applicable to p]sons ) multiple regi/rations "u ?is ,act1 includ+ z futures commission m]*ants1 introduc+ brok]s1 digital commodity brok]s1 digital commodity deal]s1 or swap deal]s1 z may be 9 ! public int]e/ to r$uce compliance co/s & promote cu/om] protection4 7e7 ,capital requirem5ts 7#a7 ,9 g5]al ,ea* digital commodity brok] & digital commodity deal] %all meet su* m9imum capital requirem5ts z ! ,commission may prescribe to address ! risks associat$ ) digital commodity trad+ & to ensure t ! digital commodity brok] or digital commodity deal]1 respectively1 is able to-- 7,a7 meet1 & cont9ue to meet1 at all times1 ! obligations ( su* regi/rant2 & 7,b7 9 ! case ( a digital commodity deal]1 fulfill ! c\nt]p>ty obligations ( ! digital commodity deal] = any m>g9$1 lev]ag$1 or f9anc$ transactions4 7#b7 ,rule ( con/ruction ,no?+ 9 ?is section %all limit1 or be con/ru$ to limit1 ! au?ority ( ! ,securities & ,ex*ange ,commission to set f9ancial responsibility rules = a brok] or deal] regi/]$ pursuant to section #ae7;b7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho7b77 7except = section #ae7;b77#aa7 ( su* ,act 7#ae ,u4,s4,c4 #gho7b77#aa77 9 accordance ) section #ae7;c77#c7 ( su* ,act 7#ae ,u4,s4,c4 #gho7c77#c774 7#c7 ,futures commission m]*ants & o!r deal]s 7,a7 ,9 g5]al ,ea* futures commission m]*ant1 introduc+ brok]1 digital commodity brok]1 digital commodity deal]1 brok]1 & deal] %all ma9ta9 suffici5t capital to comply ) ! /rict] ( any applicable capital requirem5ts to :i* ! futures commission m]*ant1 introduc+ brok]1 digital commodity brok]1 digital commodity deal]1 brok]1 or deal]1 respectively1 is subject "u ?is ,act or ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq474 7,b7 ,coord9ation ( capital requirem5ts 7i7 ,commission rule ,! ,commission %all1 by rule1 provide appropriate (fsets to any applicable capital requirem5t = a p]son ) multiple regi/rations z a digital commodity deal]1 digital commodity brok]1 futures commission m]*ant1 or introduc+ brok]4 7ii7 ,jo9t rule ,! ,commission & ! ,securities & ,ex*ange ,commission %all jo9tly1 by rule1 provide appropriate (fsets to any applicable capital requirem5t = a p]son ) multiple regi/rations z a digital commodity deal]1 digital commodity brok]1 futures commission m]*ant1 introduc+ brok]1 brok]1 or deal]4 7f7 ,report+ & recordkeep+ ,ea* digital commodity brok] & digital commodity deal]-- 7#a7 %all make su* reports z are requir$ by ! ,commission by rule or regulation reg>d+ ! transactions1 positions1 & f9ancial condition ( ! digital commodity brok] or digital commodity deal]1 respectively2 7#b7 %all keep books & records 9 su* =m & mann] & = su* p]iod z may be prescrib$ by ! ,commission by rule or regulation2 & 7#c7 %all keep ! books & records op5 to inspection & exam9ation by any repres5tative ( ! ,commission4 7g7 ,daily trad+ records 7#a7 ,9 g5]al ,ea* digital commodity brok] & digital commodity deal] %all ma9ta9 daily trad+ records ( ! transactions ( ! digital commodity brok] or digital commodity deal]1 respectively1 & all relat$ records 7includ+ relat$ =w>d or d]ivatives transactions7 & record$ communications1 includ+ electronic mail1 in/ant messages1 & record+s ( telephone calls1 = su* p]iod z ! ,commission may require by rule or regulation4 7#b7 ,in=mation requirem5ts ,! daily trad+ records %all include su* in=mation z ! ,commission %all require by rule or regulation4 7#c7 ,c\nt]p>ty records ,ea* digital commodity brok] & digital commodity deal] %all ma9ta9 daily trad+ records = ea* cu/om] or c\nt]p>ty 9 a mann] & =m t is id5tifiable ) ea* digital commodity transaction4 7#d7 ,audit trail ,ea* digital commodity brok] & digital commodity deal] %all ma9ta9 a complete audit trail = conduct+ compreh5sive & accurate trade recon/ructions4 7h7 ,bus9ess conduct /&>ds 7#a7 ,9 g5]al ,ea* digital commodity brok] & digital commodity deal] %all con=m ) su* bus9ess conduct /&>ds z ! ,commission1 by rule or regulation1 prescribes relat$ to-- 7,a7 fraud1 manipulation1 & o!r abusive practices involv+ spot or m>g9$1 lev]ag$1 or f9anc$ digital commodity transactions 7includ+ transactions t are (f]$ b n ent]$ into72 7,b7 dilig5t sup]vision ( ! bus9ess ( ! regi/]$ digital commodity brok] or digital commodity deal]1 respectively2 & 7,c7 su* o!r matt]s z ! ,commission deems appropriate4 7#b7 ,bus9ess conduct requirem5ts ,! ,commission %all1 by rule1 prescribe bus9ess conduct requirem5ts :i*-- 7,a7 require disclosure by a regi/]$ digital commodity brok] & regi/]$ digital commodity deal] to any c\nt]p>ty to ! transaction 7o!r ?an an eligible contract p>ticipant7 (-- 7i7 in=mation ab\t ! mat]ial risks & *>act]i/ics ( ! digital commodity2 7ii7 in=mation ab\t ! mat]ial risks & *>act]i/ics ( ! transaction2 7,b7 e/abli% a duty = su* a digital commodity brok] & su* a digital commodity deal] to communicate 9 a fair & balanc$ mann] bas$ on pr9ciples ( fair deal+ & good fai?2 7,c7 e/abli% /&>ds gov]n+ digital commodity brok] & digital commodity deal] m>ket+ & adv]tis+1 includ+ te/imonials & endorsem5ts2 & 7,d7 e/abli% su* o!r /&>ds & requirem5ts z ! ,commission may det]m9e are-- 7i7 9 ! public int]e/2 7ii7 appropriate = ! protection ( cu/om]s2 or 7iii7 o!rwise 9 fur!rance ( ! purposes ( ?is ,act4 7#c7 ,prohibition on fraudul5t practices ,x %all be unlawful = a digital commodity brok] or digital commodity deal] to-- 7,a7 employ any device1 s*eme1 or artifice to defraud any cu/om] or c\nt]p>ty2 7,b7 engage 9 any transaction1 practice1 or c\rse ( bus9ess t op]ates z a fraud or deceit on any cu/om] or c\nt]p>ty2 or 7,c7 engage 9 any act1 practice1 or c\rse ( bus9ess t is fraudul5t1 deceptive1 or manipulative4 7i7 ,duties 7#a7 ,risk managem5t proc$ures ,ea* digital commodity brok] & digital commodity deal] %all e/abli% robu/ & pr(essional risk managem5t sy/ems adequate = manag+ ! day-to-day bus9ess ( ! digital commodity brok] or digital commodity deal]1 respectively4 7#b7 ,disclosure ( g5]al in=mation ,ea* digital commodity brok] & digital commodity deal] %all disclose to ! ,commission in=mation conc]n+-- 7,a7 ! t]ms & conditions ( ! transactions ( ! digital commodity brok] or digital commodity deal]1 respectively2 7,b7 ! trad+ op]ations1 me*anisms1 & practices ( ! digital commodity brok] or digital commodity deal]1 respectively2 7,c7 f9ancial integrity protections relat+ to ! activities ( ! digital commodity brok] or digital commodity deal]1 respectively2 & 7,d7 o!r in=mation relevant to trad+ 9 digital commodities by ! digital commodity brok] or digital commodity deal]1 respectively4 7#c7 ,ability to obta9 in=mation ,ea* digital commodity brok] & digital commodity deal] %all-- 7,a7 e/abli% & en=ce int]nal sy/ems & proc$ures to obta9 any necess>y in=mation to p]=m any ( ! functions describ$ 9 ?is section2 & 7,b7 provide ! in=mation to ! ,commission1 on reque/4 7#d7 ,conflicts ( int]e/ ,ea* digital commodity brok] & digital commodity deal] %all implem5t conflict-(-int]e/ sy/ems & proc$ures t-- 7,a7 e/abli% /ructural & in/itutional safegu>ds-- 7i7 to m9imize conflicts ( int]e/ t might pot5tially bias ! judgm5t or sup]vision ( ! digital commodity brok] or digital commodity deal]1 respectively1 & contrav5e ! pr9ciples ( fair & equitable trad+ & ! bus9ess conduct /&>ds describ$ 9 ?is ,act1 includ+ conflicts aris+ out ( transactions or arrangem5ts ) affiliates 7includ+ affiliates act+ z digital asset issu]s1 digital commodity deal]s1 or qualifi$ digital commodity cu/odians71 :i* may include in=mation p>titions & ! legal sep>ation ( diff]5t p]sons involv$ 9 digital commodity activities2 & 7ii7 to ensure t ! activities ( any p]son )9 ! digital commodity brok] or digital commodity deal] relat+ to rese>* or analysis ( ! price or m>ket = any digital commodity or act+ 9 a role ( provid+ ex*ange activities or mak+ det]m9ations z to accept+ ex*ange cu/om]s are sep>at$ by appropriate in=mational p>titions )9 ! digital commodity brok] or digital commodity deal] f ! review1 pressure1 or ov]sight ( p]sons ^: involvem5t 9 pric+1 trad+1 ex*ange1 or cle>+ activities might pot5tially bias _! judgm5t or sup]vision & contrav5e ! core pr9ciples ( op5 access & ! bus9ess conduct /&>ds describ$ 9 ?is ,act2 & 7,b7 address su* o!r issues z ! ,commission det]m9es to be appropriate4 7#e7 ,antitru/ consid]ations ,unless necess>y or appropriate to a*ieve ! purposes ( ?is ,act1 a digital commodity brok] or digital commodity deal] %all n-- 7,a7 adopt any process or take any action t results 9 any unreasonable re/ra9t ( trade2 or 7,b7 impose any mat]ial anticompetitive burd5 on trad+ or cle>+4 7j7 ,designation ( *ief compliance (fic] 7#a7 ,9 g5]al ,ea* digital commodity brok] & digital commodity deal] %all designate an individual to s]ve z a *ief compliance (fic]4 7#b7 ,duties ,! *ief compliance (fic] %all-- 7,a7 report directly to ! bo>d or to ! s5ior (fic] ( ! regi/]$ digital commodity brok] or regi/]$ digital commodity deal]2 7,b7 review ! compliance ( ! regi/]$ digital commodity brok] or regi/]$ digital commodity deal] ) respect to ! regi/]$ digital commodity brok] & regi/]$ digital commodity deal] requirem5ts describ$ 9 ?is section2 7,c7 9 consultation ) ! bo>d ( directors1 a body p]=m+ a function simil> to ! bo>d1 or ! s5ior (fic] ( ! organization1 resolve any conflicts ( int]e/ t may arise2 7,d7 be responsible = adm9i/]+ ea* policy & proc$ure t is requir$ to be e/abli%$ pursuant to ?is section2 7,e7 ensure compliance ) ?is ,act 7includ+ regulations71 includ+ ea* rule prescrib$ by ! ,commission "u ?is section2 7,f7 e/abli% proc$ures = ! rem$iation ( noncompliance issues id5tifi$ by ! *ief compliance (fic] ?r\gh any-- 7i7 compliance (fice review2 7ii7 look-back2 7iii7 int]nal or ext]nal audit f9d+2 7iv7 self-report$ error2 or 7v7 validat$ compla9t2 & 7,g7 e/abli% & foll[ appropriate proc$ures = ! h&l+1 managem5t response1 rem$iation1 rete/+1 & clos+ ( noncompliance issues4 7#c7 ,annual reports 7,a7 ,9 g5]al ,9 accordance ) rules prescrib$ by ! ,commission1 ! *ief compliance (fic] %all annually prep>e & sign a report t conta9s a description (-- 7i7 ! compliance ( ! regi/]$ digital commodity brok] or regi/]$ digital commodity deal] ) respect to ?is ,act 7includ+ regulations72 & 7ii7 ea* policy & proc$ure ( ! regi/]$ digital commodity brok] or regi/]$ digital commodity deal] ( ! *ief compliance (fic] 7includ+ ! code ( e?ics & conflict ( int]e/ policies74 7,b7 ,requirem5ts ,! *ief compliance (fic] %all ensure t a compliance report "u subp>agraph 7,a7-- 7i7 accompanies ea* appropriate f9ancial report ( ! regi/]$ digital commodity brok] or regi/]$ digital commodity deal] t is requir$ to be furni%$ to ! ,commission pursuant to ?is section2 & 7ii7 includes a c]tification t1 "u p5alty ( law1 ! compliance report is accurate & complete4 7k7 ,segregation ( digital commodities 7#a7 ,hold+ ( cu/om] assets 7,a7 ,9 g5]al ,ea* digital commodity brok] & digital commodity deal] %all hold cu/om] money1 assets1 & prop]ty 9 a mann] to m9imize ! risk ( loss to ! cu/om] or unreasonable delay 9 cu/om] access to ! money1 assets1 & prop]ty ( ! cu/om]4 7,b7 ,qualifi$ digital commodity cu/odian ,ea* digital commodity brok] & digital commodity deal] %all hold 9 a qualifi$ digital commodity cu/odian ea* unit ( a digital commodity t is-- 7i7 ! prop]ty ( a cu/om] or c\nt]p>ty ( ! digital commodity brok] or digital commodity deal]1 respectively2 7ii7 requir$ to be held by ! digital commodity brok] or digital commodity deal] "u subsection 7e72 or 7iii7 o!rwise s requir$ by ! ,commission to reasonably protect cu/om]s or promote ! public int]e/4 7#b7 ,segregation ( funds 7,a7 ,9 g5]al ,ea* digital commodity brok] & digital commodity deal] %all treat & deal ) all money1 assets1 & prop]ty t is receiv$ by ! regi/]$ digital commodity brok] or regi/]$ digital commodity deal]1 or accrues to a cu/om] z ! result ( trad+ 9 digital commodities1 z belong+ to ! cu/om]4 7,b7 ,comm+l+ prohibit$ 7i7 ,9 g5]al ,except z provid$ 9 clause 7ii71 ea* digital commodity brok] & digital commodity deal] %all sep>ately acc\nt = money1 assets1 & prop]ty ( a digital commodity cu/om]1 & %all n comm+le any su* money1 assets1 or prop]ty ) ! funds ( ! digital commodity brok] or digital commodity deal]1 respectively1 or use any su* money1 assets1 or prop]ty to m>g91 secure1 or gu>antee any trades or acc\nts ( any cu/om] or p]son o!r ?an ! p]son = :om ! money1 assets1 or prop]ty are held4 7ii7 ,exceptions 7,i7 ,use ( funds 7aa7 ,9 g5]al ,a digital commodity brok] or digital commodity deal] may1 = conv5i5ce1 comm+le & deposit 9 ! same acc\nt or acc\nts ) any bank1 tru/ company1 d]ivatives cle>+ organization1 or qualifi$ digital commodity cu/odian money1 assets1 & prop]ty ( cu/om]s4 7bb7 ,)drawal ,! %>e ( ! money1 assets1 & prop]ty describ$ 9 item 7aa7 z 9 ! normal c\rse ( bus9ess %all be necess>y to m>g91 gu>antee1 secure1 transf]1 adju/1 or settle a contract ( sale ( a digital commodity ) a regi/]$ entity may be )drawn & appli$ to su* purposes1 includ+ ! paym5t ( commissions1 brok]age1 int]e/1 taxes1 /orage1 & o!r *>ges1 lawfully accru+ 9 connection ) ! contract4 7,,ii7 ,commission action ,9 accordance ) su* t]ms & conditions z ! ,commission may prescribe by rule1 regulation1 or ord]1 any money1 assets1 or prop]ty ( ! cu/om]s ( a digital commodity brok] or digital commodity deal] may be comm+l$ & deposit$ 9 cu/om] acc\nts ) any o!r money1 assets1 or prop]ty receiv$ by ! digital commodity brok] or digital commodity deal]1 respectively1 & requir$ by ! ,commission to be sep>ately acc\nt$ = & treat$ & dealt ) z belong+ to ! cu/om] ( ! digital commodity brok] or digital commodity deal]1 respectively4 7#c7 ,p]mitt$ inve/m5ts ,money describ$ 9 p>agraph 7#b7 may be inve/$ 9 obligations ( ! ,unit$ ,/ates1 9 g5]al obligations ( any ,/ate or ( any political subdivision ( a ,/ate1 9 obligations fully gu>ante$ z to pr9cipal & int]e/ by ! ,unit$ ,/ates1 or 9 any o!r inve/m5t t ! ,commission may by rule or regulation all[4 7#d7 ,cu/om] protection dur+ bankruptcy 7,a7 ,cu/om] prop]ty ,all money1 assets1 or prop]ty describ$ 9 p>agraph 7#b7 %all be consid]$ cu/om] prop]ty = purposes ( section #gfa ( title #aa1 ,unit$ ,/ates ,code4 7,b7 ,transactions ,a transaction involv+ a unit ( a digital commodity occurr+ ) a digital commodity deal] %all be consid]$ a contract = ! pur*ase or sale ( a commodity = future deliv]y1 on or subject to ! rules (1 a contract m>ket or bo>d ( trade = purposes ( ! def9ition ( a commodity contract 9 section #gfa ( title #aa1 ,unit$ ,/ates ,code4 7,c7 ,brok]s & deal]s ,a digital commodity deal] & a digital commodity brok] %all be consid]$ a futures commission m]*ant = purposes ( section #gfa ( title #aa1 ,unit$ ,/ates ,code4 7,d7 ,assets remov$ f segregation ,assets remov$ f segregation due to a cu/om] election "u p>agraph 7#e7 %all n be consid]$ cu/om] prop]ty = purposes ( section #gfa ( title #aa1 ,unit$ ,/ates ,code4 7#e7 ,misuse ( cu/om] prop]ty 7,a7 ,9 g5]al ,x %all be unlawful-- 7i7 = any digital commodity brok] or digital commodity deal] t has receiv$ any cu/om] money1 assets1 or prop]ty = cu/ody to dispose (1 or use any su* money1 assets1 or prop]ty z belong+ to ! digital commodity brok] or digital commodity deal]1 respectively2 or 7ii7 = any o!r p]son1 includ+ any depository1 digital commodity ex*ange1 o!r digital commodity brok]1 o!r digital commodity deal]1 or digital commodity cu/odian t has receiv$ any cu/om] money1 assets1 or prop]ty = deposit1 to hold1 dispose (1 or use any su* money1 assets1 or prop]ty1 z belong+ to ! deposit+ digital commodity brok] or digital commodity deal] or any p]son o!r ?an ! cu/om]s ( ! digital commodity brok] or digital commodity deal]1 respectively4 7,b7 ,use fur!r def9$ ,= purposes ( ?is section1 use ( a digital commodity includes utiliz+ any unit ( a digital asset to p>ticipate 9 a block*a9 s]vice def9$ 9 p>agraph 7#f7 or a dec5traliz$ gov]nance sy/em associat$ ) ! digital commodity or ! block*a9 sy/em to :i* ! digital commodity relates 9 any mann] o!r ?an t expressly direct$ by ! cu/om] f :om ! unit ( a digital commodity 0 receiv$4 7#f7 ,p>ticipation 9 block*a9 s]vices 7,a7 ,9 g5]al ,a cu/om] %all h ! "r to waive ! re/rictions 9 p>agraph 7#a7 = any unit ( a digital commodity to be us$ "u subp>agraph 7,b71 by affirmatively elect+1 9 writ+ to ! digital commodity brok] or digital commodity deal]1 to waive ! re/rictions4 7,b7 ,use ( funds ,cu/om] digital commodities remov$ f segregation "u subp>agraph 7,a7 may be pool$ & us$ by ! digital commodity brok] or digital commodity deal]1 or "o ( _! designees1 to provide a block*a9 s]vice = a block*a9 sy/em to :i* ! unit ( ! digital asset remov$ f segregation 9 subp>agraph 7,a7 relates4 7,c7 ,limitations 7i7 ,9 g5]al ,! ,commission may1 by rule1 e/abli% notice & disclosure requirem5ts1 & any o!r limitations & rules relat$ to ! waiv+ ( any re/rictions "u ?is p>agraph t are reasonably necess>y to protect cu/om]s1 includ+ eligible contract p>ticipants1 non-eligible contract p>ticipants1 or any o!r class ( cu/om]s4 7ii7 ,cu/om] *oice ,a digital commodity brok] or digital commodity deal] may n require a waiv] f a cu/om] describ$ 9 subp>agraph 7,a7 z a condition ( do+ bus9ess ) ! brok] or deal]4 7,d7 ,block*a9 s]vice def9$ ,9 ?is subp>agraph1 ! t]m block*a9 s]vice means any activity relat+ to validat+ transactions on a block*a9 sy/em1 provid+ security = a block*a9 sy/em1 or o!r simil> activity requir$ = ! ongo+ op]ation ( a block*a9 sy/em4 7l7 ,f$]al preemption ,not)/&+ any o!r provision ( law1 ! ,commission %all h exclusive jurisdiction ov] any digital commodity brok] or digital commodity deal] regi/]$ "u ?is section4 7m7 ,exemptions ,9 ord] to promote responsible economic or f9ancial innovation & fair competition1 or protect cu/om]s1 ! ,commission may 7on its own initiative or on application ( ! regi/]$ digital commodity brok] or regi/]$ digital commodity deal]7 exempt1 unconditionally or on /at$ t]ms or conditions1 or = /at$ p]iods1 & retroactively or prospectively1 or bo?1 a regi/]$ digital commodity brok] or regi/]$ digital commodity deal] f ! requirem5ts ( ?is section1 if ! ,commission det]m9es t-- 7#a7 7,a7 ! exemption w\ld be consi/5t ) ! public int]e/ & ! purposes ( ?is ,act2 & 7,b7 ! exemption w n h a mat]ial adv]se effect on ! ability ( ! ,commission to dis*>ge regulatory duties "u ?is ,act2 or 7#b7 ! regi/]$ digital commodity brok] or regi/]$ digital commodity deal] is subject to comp>able1 compreh5sive sup]vision & regulation by ! appropriate gov]nm5t au?orities 9 ! home c\ntry ( ! regi/]$ digital commodity brok] or regi/]$ digital commodity deal]1 respectively4 7n7 ,treatm5t "u ! ,bank ,secrecy ,act ,a regi/]$ digital commodity brok] & a regi/]$ digital commodity deal] %all be treat$ z a f9ancial in/itution = purposes ( ! ,bank ,secrecy ,act4 4 #djg4 ,regi/ration ( associat$ p]sons 7a7 ,9 g5]al ,section #dk ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #fk7 is am5d$-- 7#a7 by r$esignat+ subsections 7#d7 ?r\gh 7#f7 z subsections 7#e7 ?r\gh 7#g71 respectively2 & 7#b7 by ins]t+ aft] subsection 7#c7 ! foll[+3 7#d7 ,x %all be unlawful = any p]son to act z an associat$ p]son ( a digital commodity brok] or an associat$ p]son ( a digital commodity deal] unless ! p]son is regi/]$ ) ! ,commission "u ?is ,act & su* regi/ration %all n h expir$1 be5 susp5d$ 7& ! p]iod ( susp5sion has n expir$71 or be5 revok$4 ,x %all be unlawful = a digital commodity brok] or a digital commodity deal] to p]mit su* a p]son to become or rema9 associat$ ) ! digital commodity brok] or digital commodity deal] if ! digital commodity brok] or digital commodity deal] knew or %\ld h kn[n t ! p]son 0 n s regi/]$ or t ! regi/ration _h expir$1 be5 susp5d$ 7& ! p]iod ( susp5sion has n expir$71 or be5 revok$4 2 & 7#c7 9 subsection 7#e7 7z s r$esignat$71 by /rik+ or ( a commodity trad+ advisor & ins]t+ ( a commodity trad+ advisor1 ( a digital commodity brok]1 or ( a digital commodity deal]4 7b7 ,con=m+ am5dm5ts ,! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a et seq47 is am5d$ by /rik+ section #dk7#f7 ea* place x appe>s & ins]t+ section #dk7#g74 #djh4 ,regi/ration ( commodity pool op]ators & commodity trad+ advisors ,section #dm7#c7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #fm7#c77 is am5d$-- 7#a7 9 subp>agraph 7,a7-- 7,a7 by /rik+ any commodity trad+ advisor & ins]t+ a commodity pool op]ator or commodity trad+ advisor2 & 7,b7 by /rik+ act+ z a commodity trad+ advisor & ins]t+ act+ z a commodity pool op]ator or commodity trad+ advisor2 & 7#b7 9 subp>agraph 7,c71 by ins]t+ digital commodities1 aft] physical commodities14 #dji4 ,exclusion = ancill>y activities ,! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq471 z am5d$ by ! prec$+ provisions ( ?is ,act1 is am5d$ by ins]t+ aft] section #du ! foll[+3 #dv4 ,exclusion = ancill>y activities 7a7 ,9 g5]al ,not)/&+ any o!r provision ( ?is ,act1 a p]son %all n be subject to ?is ,act & ! regulations promulgat$ "u ?is ,act solely bas$ on ! p]son und]tak+ any ancill>y activities4 7b7 ,exceptions ,subsection 7a7 %all n be con/ru$ to apply to ! anti-fraud1 anti-manipulation1 or false report+ en=cem5t au?orities ( ! ,commission4 7c7 ,ancill>y activities def9$ ,9 ?is section1 ! t]m ancill>y activities means any ( ! foll[+ activities relat$ to ! op]ation ( a block*a9 sy/em3 7#a7 ,compil+ network transactions1 op]at+ or p>ticipat+ 9 a pool1 relay+1 se>*+1 sequ5c+1 validat+1 or act+ 9 a simil> capacity ) respect to contract ( sale ( a digital asset4 7#b7 ,provid+ computational "w1 op]at+ a node1 or procur+1 (f]+1 or utiliz+ network b&wid?1 or o!r simil> incid5tal s]vices ) respect to a contract ( sale ( a digital asset4 7#c7 ,provid+ a us]-int]face t enables a us] to read1 & access data ab\t a block*a9 sy/em1 s5d messages1 or o!rwise int]act ) a block*a9 sy/em4 7#d7 ,develop+1 publi%+1 con/itut+1 adm9i/]+1 ma9ta9+1 or o!rwise di/ribut+ a block*a9 sy/em4 7#e7 ,develop+1 publi%+1 con/itut+1 adm9i/]+1 ma9ta9+1 or o!rwise di/ribut+ s(tw>e or sy/ems t create or deploy h>dw>e or s(tw>e1 includ+ wallets or o!r sy/ems1 facilitat+ an individual us]'s own p]sonal ability to keep1 safegu>d1 or cu/ody a us]'s digital commodities or relat$ private keys4 4 #daj4 ,fund+ = implem5tation1 adm9i/ration1 & en=cem5t ,out ( any money 9 ! ,treasury ( ! ,unit$ ,/ates n o!rwise appropriat$1 !re are appropriat$ #abj1jjj1jjj to ! ,commodity ,futures ,trad+ ,commission = ! implem5tation1 adm9i/ration1 & en=cem5t ( ! provisions ( ?is ,act to be adm9i/]$ by ! ,commodity ,futures ,trad+ ,commission1 :i* am\nts %all rema9 available ?r\gh ! #e-ye> p]iod t beg9s ) ! date ( ! enactm5t ( ?is ,act4 #daa4 ,effective date ,unless o!rwise provid$ 9 ?is title1 ?is title & ! am5dm5ts made by ?is title %all take effect #cfj days aft] ! date ( enactm5t ( ?is ,act1 except t1 to ! ext5t a provision ( ?is title requires a rulemak+1 ! provision %all take effect on ! lat] (-- 7#a7 #cfj days aft] ! date ( enactm5t ( ?is ,act2 or 7#b7 #fj days aft] ! publication 9 ! ,f$]al ,regi/] ( ! f9al rule implem5t+ ! provision4 ,v4 ,innovation & ,te*nology ,improvem5ts #eja4 ,codification ( ! ,,sec ,/rategic ,hub = ,innovation & ,f9ancial ,te*nology ,section #d ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;d7 is am5d$ by add+ at ! end ! foll[+3 7l7 ,/rategic ,hub = ,innovation & ,f9ancial ,te*nology 7#a7 ,(fice e/abli%$ ,!re is e/abli%$ )9 ! ,commission ! ,/rategic ,hub = ,innovation & ,f9ancial ,te*nology 7ref]r$ to 9 ?is section z ! ,fin,hub74 7#b7 ,purposes ,! purposes ( ,fin,hub are z foll[s3 7,a7 ,to assi/ 9 %ap+ ! approa* ( ! ,commission to te*nological advancem5ts 9 ! f9ancial indu/ry4 7,b7 ,to exam9e f9ancial te*nology innovations )9 capital m>kets1 m>ket p>ticipants1 & inve/ors4 7,c7 ,to coord9ate ! response ( ! ,commission to em]g+ te*nologies 9 f9ancial1 regulatory1 & sup]visory sy/ems4 7#c7 ,director ( ,fin,hub ,fin,hub %all h a ,director :o %all be appo9t$ by ! ,commission1 f among individuals hav+ exp]i5ce 9 bo? em]g+ te*nologies & ,f$]al securities law & s]ve at ! pleasure ( ! ,commission4 ,! ,director %all report directly to ! ,commission & p]=m su* functions & duties z ! ,commission may prescribe4 7#d7 ,responsibilities ,fin,hub %all-- 7,a7 fo/] responsible te*nological innovation & fair competition )9 ! ,commission1 includ+ ar\nd f9ancial te*nology1 regulatory te*nology1 & sup]visory te*nology2 7,b7 provide int]nal education & tra9+ to ! ,commission reg>d+ f9ancial te*nology2 7,c7 advise ! ,commission reg>d+ f9ancial te*nology t w\ld s]ve ! ,commission's ov]sight functions2 7,d7 analyze te*nological advancem5ts & ! impact ( regulatory requirem5ts on f9ancial te*nology companies2 7,e7 advise ! ,commission ) respect to rulemak+s or o!r ag5cy or /aff action reg>d+ f9ancial te*nology2 7,f7 provide bus9esses work+ 9 em]g+ f9ancial te*nology fields ) in=mation on ! ,commission1 its rules & regulations2 & 7,g7 enc\rage firms work+ 9 em]g+ te*nology fields to engage ) ! ,commission & obta9 fe$back f ! ,commission on pot5tial regulatory issues4 7#e7 ,access to docum5ts ,! ,commission %all ensure t ,fin,hub has full access to ! docum5ts & in=mation ( ! ,commission & any self-regulatory organization1 z necess>y to c>ry out ! functions ( ,fin,hub4 7#f7 ,report to ,congress 7,a7 ,9 g5]al ,n lat] ?an ,octob] #ca ( ea* ye> aft] #bjbd1 ,fin,hub %all submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives a report on ! activities ( ,fin,hub dur+ ! imm$iately prec$+ fiscal ye>4 7,b7 ,cont5ts ,ea* report requir$ "u subp>agraph 7,a7 %all include-- 7i7 ! total numb] ( p]sons t met ) ,fin,hub2 7ii7 ! total numb] ( m>ket p>ticipants ,fin,hub met )1 includ+ ! classification ( ^? p>ticipants2 7iii7 a summ>y ( g5]al issues discuss$ dur+ meet+s ) p]sons2 7iv7 in=mation on /eps ,fin,hub has tak5 to improve ,commission s]vices1 includ+ responsiv5ess to ! conc]ns ( p]sons2 7v7 recomm5dations-- 7,i7 ) respect to ! regulations ( ! ,commission & ! guidance & ord]s ( ! ,commission2 & 7,,ii7 = su* legislative actions z ! ,fin,hub det]m9es appropriate2 & 7vi7 any o!r in=mation1 z det]m9$ appropriate by ! ,director ( ,fin,hub4 7,c7 ,confid5tiality ,a report "u subp>agraph 7,a7 may n conta9 confid5tial in=mation4 7#g7 ,sy/ems ( records 7,a7 ,9 g5]al ,! ,commission %all e/abli% a detail$ sy/em ( records 7z def9$ "u section #eeb;a ( title #e1 ,unit$ ,/ates ,code7 to assi/ ,fin,hub 9 communicat+ ) int]e/$ p>ties4 7,b7 ,entities cov]$ by ! sy/em ,entities cov]$ by ! sy/em requir$ "u subp>agraph 7,a7 include entities or p]sons submitt+ reque/s or inquiries & o!r in=mation to ,commission ?r\gh ,fin,hub4 7,c7 ,security & /orage ( records ,fin,hub %all /ore-- 7i7 electronic records-- 7,i7 9 ! sy/em requir$ "u subp>agraph 7,a72 or 7,,ii7 on ! secure network or o!r electronic m$ium1 su* z encrypt$ h>d drives or back-up m$ia1 ( ! ,commission2 & 7ii7 pap] records 9 secure facilities4 7#h7 ,effective date ,?is subsection %all take effect on ! date t is #ahj days aft] ! date ( ! enactm5t ( ?is subsection4 4 #ejb4 ,codification ( ,lab,c,f,t,c 7a7 ,9 g5]al ,section #ah ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #bb7 is am5d$ by add+ at ! end ! foll[+3 7c7 ,lab,c,f,t,c 7#a7 ,e/abli%m5t ,!re is e/abli%$ 9 ! ,commission ,lab,c,f,t,c4 7#b7 ,purpose ,! purposes ( ,lab,c,f,t,c are to-- 7,a7 promote responsible f9ancial te*nology innovation & fair competition = ! b5efit ( ! ,am]ican public2 7,b7 s]ve z an in=mation plat=m to in=m ! ,commission ab\t new f9ancial te*nology innovation2 & 7,c7 provide outrea* to f9ancial te*nology innovators to discuss _! innovations & ! regulatory framework e/abli%$ by ?is ,act & ! regulations promulgat$ !reund]4 7#c7 ,director ,lab,c,f,t,c %all h a ,director1 :o %all be appo9t$ by ! ,commission & s]ve at ! pleasure ( ! ,commission4 ,not)/&+ section #b7;a77#f77;,a71 ! ,director %all report directly to ! ,commission & p]=m su* functions & duties z ! ,commission may prescribe4 7#d7 ,duties ,lab,c,f,t,c %all-- 7,a7 advise ! ,commission ) respect to rulemak+s or o!r ag5cy or /aff action reg>d+ f9ancial te*nology2 7,b7 provide int]nal education & tra9+ to ! ,commission reg>d+ f9ancial te*nology2 7,c7 advise ! ,commission reg>d+ f9ancial te*nology t w\ld bol/] ! ,commission's ov]sight functions2 7,d7 engage ) academia1 /ud5ts1 & pr(essionals on f9ancial te*nology issues1 ideas1 & te*nology relevant to activities "u ?is ,act2 7,e7 provide p]sons work+ 9 em]g+ te*nology fields ) in=mation on ! ,commission1 its rules & regulations1 & ! role ( a regi/]$ futures association2 & 7,f7 enc\rage p]sons work+ 9 em]g+ te*nology fields to engage ) ! ,commission & obta9 fe$back f ! ,commission on pot5tial regulatory issues4 7#e7 ,access to docum5ts ,! ,commission %all ensure t ,lab,c,f,t,c has full access to ! docum5ts & in=mation ( ! ,commission & any self-regulatory organization or regi/]$ futures association1 z necess>y to c>ry out ! functions ( ,lab,c,f,t,c4 7#f7 ,report to ,congress 7,a7 ,9 g5]al ,n lat] ?an ,octob] #ca ( ea* ye> aft] #bjbd1 ,lab,c,f,t,c %all submit to ! ,committee on ,agriculture ( ! ,h\se ( ,repres5tatives & ! ,committee on ,agriculture1 ,nutrition1 & ,=e/ry ( ! ,s5ate a report on its activities4 7,b7 ,cont5ts ,ea* report requir$ "u p>agraph 7#a7 %all include-- 7i7 ! total numb] ( p]sons t met ) ,lab,c,f,t,c2 7ii7 a summ>y ( g5]al issues discuss$ dur+ meet+s ) ! p]son2 7iii7 in=mation on /eps ,lab,c,f,t,c has tak5 to improve ,commission s]vices1 includ+ responsiv5ess to ! conc]ns ( p]sons2 7iv7 recomm5dations made to ! ,commission ) respect to ! regulations1 guidance1 & ord]s ( ! ,commission & su* legislative actions z may be appropriate2 & 7v7 any o!r in=mation det]m9$ appropriate by ! ,director ( ,lab,c,f,t,c4 7,c7 ,confid5tiality ,a report "u p>agraph 7,a7 %all abide by ! confid5tiality requirem5ts 9 section #h4 7#g7 ,sy/ems ( records 7,a7 ,9 g5]al ,! ,commission %all e/abli% a detail$ sy/em ( records 7z def9$ 9 section #eeb;a ( title #e1 ,unit$ ,/ates ,code7 to assi/ ,lab,c,f,t,c 9 communicat+ ) int]e/$ p>ties4 7,b7 ,p]sons cov]$ by ! sy/em ,! p]sons cov]$ by ! sy/em ( records %all include p]sons submitt+ reque/s or inquiries & o!r in=mation to ! ,commission ?r\gh ,lab,c,f,t,c4 7,c7 ,security & /orage ( records ,! sy/em ( records %all /ore records electronically or on pap] 9 secure facilities1 & %all /ore electronic records on ! secure network ( ! ,commission & on o!r electronic m$ia1 su* z encrypt$ h>d drives & back-up m$ia1 z ne$$4 4 7b7 ,con=m+ am5dm5ts ,section #b7;a77#f77;,a7 ( su* ,act 7#g ,u4,s4,c4 #b7;a77#f77;,a77 is am5d$-- 7#a7 by /rik+ p>agraph & 9 & ins]t+ p>agraph12 & 7#b7 by ins]t+ & section #ah7;c77#c71 be=e ! executive4 7c7 ,effective date ,! ,commodity ,futures ,trad+ ,commission %all implem5t ! am5dm5ts made by ?is section 7includ+ comply+ ) section #ah7;c77#g7 ( ! ,commodity ,ex*ange ,act7 )9 #ahj days aft] ! date ( ! enactm5t ( ?is ,act4 #ejc4 ,,cftc-,,sec ,jo9t ,advisory ,committee on ,digital ,assets 7a7 ,e/abli%m5t ,! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission 79 ?is section ref]r$ to z ! ,commissions7 %all jo9tly e/abli% ! ,jo9t ,advisory ,committee on ,digital ,assets 79 ?is section ref]r$ to z ! ,committee74 7b7 ,purpose 7#a7 ,9 g5]al ,! ,committee %all-- 7,a7 provide ! ,commissions ) advice on ! rules1 regulations1 & policies ( ! ,commissions relat$ to digital assets2 7,b7 fur!r ! regulatory h>monization ( digital asset policy betwe5 ! ,commissions2 7,c7 exam9e & dissem9ate me?ods = describ+1 measur+1 & quantify+ digital asset-- 7i7 dec5tralization2 7ii7 functionality2 7iii7 in=mation asymmetries2 & 7iv7 transaction & network security2 7,d7 exam9e ! pot5tial = digital assets1 block*a9 sy/ems1 & di/ribut$ l$g] te*nology to improve effici5cy 9 ! op]ation ( f9ancial m>ket infra/ructure & bett] protect f9ancial m>ket p>ticipants1 includ+ s]vices & sy/ems :i* provide-- 7i7 improv$ cu/om] protections2 7ii7 public availability ( in=mation2 7iii7 great] transp>5cy reg>d+ cu/om] funds2 7iv7 r$uc$ transaction co/2 & 7v7 increas$ access to f9ancial m>ket s]vices2 & 7,e7 discuss ! implem5tation by ! ,commissions ( ?is ,act & ! am5dm5ts made by ?is ,act4 7#b7 ,review by ,ag5cies ,ea* ,commission %all-- 7,a7 review ! f9d+s & recomm5dations ( ! ,committee2 7,b7 ea* "t ! ,committee submits a f9d+ or recomm5dation to a ,commission1 promptly issue a public /atem5t-- 7i7 assess+ ! f9d+ or recomm5dation ( ! ,committee2 7ii7 disclos+ ! action or decision n to take action made by ! ,commission 9 response to a f9d+ or recomm5dation2 & 7iii7 ! reasons = ! action or decision n to take action2 & 7,c7 ea* "t ! ,committee submits a f9d+ or recomm5dation to a ,commission1 provide ! ,committee ) a =mal response to ! f9d+ or recomm5dation n lat] ?an #c mon?s aft] ! date ( ! submission ( ! f9d+ or recomm5dation4 7c7 ,memb]%ip & lead]%ip 7#a7 ,non-f$]al memb]s 7,a7 ,9 g5]al ,! ,commissions %all appo9t at lea/ #bj nongov]nm5tal /akehold]s ) a wide div]sity ( op9ion & :o repres5t a broad spectrum ( int]e/s repres5t+ ! digital asset ecosy/em1 equally divid$ betwe5 ! ,commissions1 to s]ve z memb]s ( ! ,committee4 ,! appo9tees %all include-- 7i7 digital asset issu]s2 7ii7 p]sons regi/]$ ) ! ,commissions & engag$ 9 digital asset relat$ activities2 7iii7 individuals engag$ 9 academic rese>* relat+ to digital assets2 & 7iv7 digital asset us]s4 7,b7 ,memb]s n ,commission employees ,memb]s appo9t$ "u subp>agraph 7,a7 %all n be deem$ to be employees or ag5ts ( a ,commission solely by reason ( memb]%ip on ! ,committee4 7#b7 ,co-designat$ ,f$]al (fic]s 7,a7 ,numb]2 appo9tm5t ,!re %all be #b co-designat$ ,f$]al (fic]s ( ! ,committee1 z foll[s3 7i7 ,! ,director ( ,lab,c,f,t,c ( ! ,commodity ,futures ,trad+ ,commission4 7ii7 ,! ,director ( ! ,/rategic ,hub = ,innovation & ,f9ancial ,te*nology ( ! ,securities & ,ex*ange ,commission4 7,b7 ,duties ,! duties requir$ by *apt] #aj ( title #e1 ,unit$ ,/ates ,code1 to be c>ri$ out by a designat$ ,f$]al (fic] ) respect to ! ,committee %all be %>$ by ! co-designat$ ,f$]al (fic]s ( ! ,committee4 7#c7 ,committee lead]%ip 7,a7 ,composition2 election ,! ,committee memb]s %all elect1 f among ! ,committee memb]s-- 7i7 a *air2 7ii7 a vice *air2 7iii7 a secret>y2 & 7iv7 an assi/ant secret>y4 7,b7 ,t]m ( (fice ,ea* memb] elect$ "u subp>agraph 7,a7 9 a #b-ye> p]iod ref]r$ to 9 section #ajac7;b77#b7 ( title #e1 ,unit$ ,/ates ,code1 %all s]ve 9 ! capacity = :i* ! memb] 0 s elect$1 until ! end ( ! #b-ye> p]iod4 7d7 ,no comp5sation = ,committee memb]s 7#a7 ,non-,f$]al memb]s ,all ,committee memb]s appo9t$ "u subsection 7d77#a7 %all-- 7,a7 s]ve )\t comp5sation2 & 7,b7 :ile away f ! home or regul> place ( bus9ess ( ! memb] 9 ! p]=mance ( s]vices = ! ,committee1 be all[$ travel exp5ses1 includ+ p] diem 9 lieu ( subsi/5ce1 9 ! same mann] z p]sons employ$ int]mitt5tly 9 ! ,gov]nm5t s]vice are all[$ exp5ses "u section #egjc7;b7 ( title #e1 ,unit$ ,/ates ,code4 7#b7 ,no comp5sation = co-designat$ ,f$]al (fic]s ,! co-designat$ ,f$]al (fic]s %all s]ve )\t comp5sation 9 addition to t receiv$ = _! s]vices z (fic]s or employees ( ! ,unit$ ,/ates4 7e7 ,frequ5cy ( meet+s ,! ,committee %all meet-- 7#a7 n less frequ5tly ?an twice annually2 & 7#b7 at su* o!r times z ei!r ,commission may reque/4 7f7 ,duration ,section #ajac7;a77#b7 ( title #e1 ,unit$ ,/ates ,code1 %all n apply to ! ,committee4 7g7 ,"t limits ,! ,commissions %all-- 7#a7 adopt a jo9t *>t] = ! ,committee )9 #ij days aft] ! date ( ! enactm5t ( ?is section2 7#b7 appo9t memb]s to ! ,committee )9 #abj days aft] su* date ( enactm5t2 & 7#c7 hold ! initial meet+ ( ! ,committee )9 #ahj days aft] su* date ( enactm5t4 7h7 ,fund+ ,! ,commissions %all jo9tly fund ! ,committee4 #ejd4 ,mod]nization ( ! ,securities & ,ex*ange ,commission mission 7a7 ,securities ,act ( #aicc ,section #b7;b7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg7;b77 is am5d$-- 7#a7 9 ! head+1 by ins]t+ ,innovation1 aft] ,effici5cy12 & 7#b7 by ins]t+ innovation1 aft] effici5cy14 7b7 ,securities ,ex*ange act ( #aicd ,section #c7;f7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh7;c77 is am5d$-- 7#a7 9 ! head+1 by ins]t+ ,innovation1 aft] ,effici5cy12 & 7#b7 by ins]t+ innovation1 aft] effici5cy14 7c7 ,inve/m5t ,advis]s ,act ( #aidj ,section #bjb7;c7 ( ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#b7 is am5d$-- 7#a7 9 ! head+1 by ins]t+ ,innovation1 aft] ,effici5cy12 & 7#b7 by ins]t+ innovation1 aft] effici5cy14 7d7 ,inve/m5t ,company ,act ( #aidj ,section #b7;c7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#b7 is am5d$-- 7#a7 9 ! head+1 by ins]t+ ,innovation1 aft] ,effici5cy12 & 7#b7 by ins]t+ innovation1 aft] effici5cy14 #eje4 ,/udy on dec5traliz$ f9ance 7a7 ,9 g5]al ,! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all jo9tly c>ry out a /udy on dec5traliz$ f9ance t analyzes-- 7#a7 ! nature1 size1 role1 & use ( dec5traliz$ f9ance block*a9 protocols2 7#b7 ! op]ation ( block*a9 protocols t comprise dec5traliz$ f9ance2 7#c7 ! int]op]ability ( block*a9 protocols & block*a9 sy/ems2 7#d7 ! int]op]ability ( block*a9 protocols & s(tw>e-bas$ sy/ems1 includ+ websites & wallets2 7#e7 ! dec5traliz$ gov]nance sy/ems ?r\gh :i* block*a9 protocols may be develop$1 publi%$1 con/itut$1 adm9i/]$1 ma9ta9$1 or o!rwise di/ribut$1 includ+-- 7,a7 :e!r ! sy/ems enhance or detract f-- 7i7 ! dec5tralization ( ! dec5traliz$ f9ance2 & 7ii7 ! inh]5t risks ( ! dec5traliz$ gov]nance sy/em2 & 7,b7 any proc$ures or requirem5ts t w\ld mitigate ! risks id5tifi$ 9 subp>agraph 7,a77ii72 7#f7 ! b5efits ( dec5traliz$ f9ance1 includ+-- 7,a7 op]ational resili5ce & int]op]ability ( block*a9-bas$ sy/ems2 7,b7 m>ket competition & innovation2 7,c7 transaction effici5cy2 7,d7 transp>5cy & traceability ( transactions2 & 7,e7 dis9t]m$iation2 & 7#g7 ! risks ( dec5traliz$ f9ance1 includ+-- 7,a7 pseudonymity ( us]s & transactions2 7,b7 dis9t]m$iation2 & 7,c7 cyb]security vuln]abilities2 7#h7 ! ext5t to :i* dec5traliz$ f9ance has integrat$ ) ! traditional f9ancial m>kets & any pot5tial risks to /ability ( ! m>kets2 7#i7 h[ ! levels ( illicit activity 9 dec5traliz$ f9ance comp>e ) ! levels ( illicit activity 9 traditional f9ancial m>kets2 7#aj7 h[ dec5traliz$ f9ance may increase ! accessibility ( cross-bord] transactions2 & 7#aa7 ! feasibility ( emb$d+ self-execut+ compliance & risk controls into dec5traliz$ f9ance4 7b7 ,report ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all jo9tly submit to ! relevant congressional committees a report t includes ! results ( ! /udy requir$ by subsection 7a74 7c7 ,,gao ,/udy ,! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all-- 7#a7 c>ry out a /udy on dec5traliz$ f9ance t analyzes ! in=mation describ$ "u p>agraphs 7#a7 ?r\gh 7#aa7 ( subsection 7a72 & 7#b7 n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 submit to ! relevant congressional committees a report t includes ! results ( ! /udy requir$ by p>agraph 7#a74 7d7 ,def9itions ,9 ?is section3 7#a7 ,dec5traliz$ f9ance 7,a7 ,9 g5]al ,! t]m dec5traliz$ f9ance means block*a9 protocols t all[ us]s to engage 9 f9ancial transactions 9 a self-direct$ mann] s t a ?ird-p>ty int]m$i>y does n effectuate ! transactions or take cu/ody ( digital assets ( a us] dur+ any "p ( ! transactions4 7,b7 ,relation%ip to ancill>y activities ,! t]m dec5traliz$ f9ance %all n be int]pret$ to limit or exclude any activity f ! mean+ ( ancill>y activities1 z def9$ 9 section #ae;,h7c7 ( ! ,securities ,ex*ange ,act ( #aicd or section #dv7c7 ( ! ,commodity ,ex*ange ,act4 7#b7 ,relevant congressional committees ,! t]m relevant congressional committees means-- 7,a7 ! ,committees on ,f9ancial ,s]vices & ,agriculture ( ! ,h\se ( ,repres5tatives2 & 7,b7 ! ,committees on ,bank+1 ,h\s+1 & ,urban ,affairs & ,agriculture1 ,nutrition1 & ,=e/ry ( ! ,s5ate4 #ejf4 ,/udy on non-fungible digital assets 7a7 ,! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all c>ry out a /udy ( non-fungible digital assets t analyzes-- 7#a7 ! nature1 size1 role1 purpose1 & use ( non-fungible digital assets2 7#b7 ! simil>ities & diff]5ces betwe5 non-fungible digital assets & o!r digital assets1 includ+ digital commodities & paym5ts /ableco9s1 & h[ ! m>kets = ^? digital assets int]sect ) ea* o!r2 7#c7 h[ non-fungible digital assets are m9t$ by issu]s & subsequ5tly adm9i/]$ to pur*as]s2 7#d7 h[ non-fungible digital assets are /or$ aft] be+ pur*as$ by a consum]2 7#e7 ! int]op]ability ( non-fungible digital assets betwe5 diff]5t block*a9 sy/ems2 7#f7 ! scalability ( diff]5t non-fungible digital asset m>ketplaces2 7#g7 ! b5efits ( non-fungible digital assets1 includ+ v]ifiable digital own]%ip2 7#h7 ! risks ( non-fungible tok5s1 includ+-- 7,a7 intellectual prop]ty rights2 7,b7 cyb]security risks2 & 7,c7 m>ket risks2 7#i7 :e!r & h[ non-fungible digital assets h integrat$ ) traditional m>ketplaces1 includ+ ^? = music1 real e/ate1 gam+1 ev5ts1 & travel2 7#aj7 :e!r non-fungible tok5s c be us$ to facilitate comm]ce or o!r activities ?r\gh ! repres5tation ( docum5ts1 id5tification1 contracts1 lic5ses1 & o!r comm]cial1 gov]nm5t1 or p]sonal records2 7#aa7 any pot5tial risks to traditional m>kets f su* integration2 & 7#ab7 ! levels & types ( illicit activity 9 non-fungible digital asset m>kets4 7b7 ,report ,n lat] ?an #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ,comm]ce1 %all make publicly available a report t includes ! results ( ! /udy requir$ by subsection 7a74 #ejg4 ,/udy on f9ancial m>ket infra/ructure improvem5ts 7a7 ,9 g5]al ,! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all jo9tly conduct a /udy to assess :e!r additional guidance or rules are necess>y to facilitate ! developm5t ( tok5iz$ securities & d]ivatives products1 & to ! ext5t su* guidance or rules w\ld fo/] ! developm5t ( fair & ord]ly f9ancial m>kets1 be necess>y or appropriate 9 ! public int]e/1 & be consi/5t ) ! protection ( inve/ors & cu/om]s4 7b7 ,report 7#a7 ,"t limit ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all jo9tly submit to ! relevant congressional committees a report t includes ! results ( ! /udy requir$ by subsection 7a74 7#b7 ,relevant congressional committees def9$ ,9 ?is section1 ! t]m relevant congressional committees means-- 7,a7 ! ,committees on ,f9ancial ,s]vices & on ,agriculture ( ! ,h\se ( ,repres5tatives2 & 7,b7 ! ,committees on ,bank+1 ,h\s+1 & ,urban ,affairs & on ,agriculture1 ,nutrition1 & ,=e/ry ( ! ,s5ate4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,f9ancial ,innovation & ,te*nology = ! #ba/ ,c5tury ,act4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4 ,title ,i--,def9itions2 ,rulemak+2 ,notice ( ,int5t to ,regi/] ,sec4 #aja4 ,def9itions "u ! ,securities ,act ( #aicc4 ,sec4 #ajb4 ,def9itions "u ! ,securities ,ex*ange ,act ( #aicd4 ,sec4 #ajc4 ,def9itions "u ! ,commodity ,ex*ange ,act4 ,sec4 #ajd4 ,def9itions "u ?is ,act4 ,sec4 #aje4 ,jo9t rulemak+s4 ,sec4 #ajf4 ,notice ( int5t to regi/] = digital commodity ex*anges1 brok]s1 & deal]s4 ,sec4 #ajg4 ,notice ( int5t to regi/] = digital asset brok]s1 deal]s1 & trad+ sy/ems4 ,sec4 #ajh4 ,commodity ,ex*ange ,act sav+s provisions4 ,sec4 #aji4 ,int]national h>monization4 ,sec4 #aaj4 ,implem5tation4 ,title ,,ii-- ,(f]s & ,sales ( ,digital ,assets ,sec4 #bja4 ,exempt$ transactions 9 digital assets4 ,sec4 #bjb4 ,requirem5ts = (f]s & sales ( c]ta9 digital assets4 ,sec4 #bjc4 ,enhanc$ disclosure requirem5ts4 ,sec4 #bjd4 ,c]tification ( c]ta9 digital assets4 ,sec4 #bje4 ,effective date4 ,title ,,iii--,regi/ration = ,digital ,asset ,int]m$i>ies at ! ,securities & ,ex*ange ,commission ,sec4 #cja4 ,treatm5t ( digital commodities & o!r digital assets4 ,sec4 #cjb4 ,anti-fraud au?ority ov] p]mitt$ paym5t /ableco9s4 ,sec4 #cjc4 ,regi/ration ( digital asset trad+ sy/ems4 ,sec4 #cjd4 ,requirem5ts = digital asset trad+ sy/ems4 ,sec4 #cje4 ,regi/ration ( digital asset brok]s & digital asset deal]s4 ,sec4 #cjf4 ,requirem5ts ( digital asset brok]s & digital asset deal]s4 ,sec4 #cjg4 ,rules relat$ to conflicts ( int]e/4 ,sec4 #cjh4 ,treatm5t ( c]ta9 digital assets 9 connection ) f$]ally regulat$ int]m$i>ies4 ,sec4 #cji4 ,exclusion = ancill>y activities4 ,sec4 #caj4 ,regi/ration & requirem5ts = notice-regi/]$ digital asset cle>+ ag5cies4 ,sec4 #caa4 ,treatm5t ( cu/ody activities by bank+ in/itutions4 ,sec4 #cab4 ,effective date2 adm9i/ration4 ,title ,,iv--,regi/ration = ,digital ,asset ,int]m$i>ies at ! ,commodity ,futures ,trad+ ,commission ,sec4 #dja4 ,commission jurisdiction ov] digital commodity transactions4 ,sec4 #djb4 ,requir+ futures commission m]*ants to use qualifi$ digital commodity cu/odians4 ,sec4 #djc4 ,trad+ c]tification & approval = digital commodities4 ,sec4 #djd4 ,regi/ration ( digital commodity ex*anges4 ,sec4 #dje4 ,qualifi$ digital commodity cu/odians4 ,sec4 #djf4 ,regi/ration & regulation ( digital commodity brok]s & deal]s4 ,sec4 #djg4 ,regi/ration ( associat$ p]sons4 ,sec4 #djh4 ,regi/ration ( commodity pool op]ators & commodity trad+ advisors4 ,sec4 #dji4 ,exclusion = ancill>y activities4 ,sec4 #daj4 ,effective date4 ,title ,v--,innovation & ,te*nology ,improvem5ts ,sec4 #eja4 ,codification ( ! ,,sec ,/rategic ,hub = ,innovation & ,f9ancial ,te*nology4 ,sec4 #ejb4 ,codification ( ,lab,c,f,t,c4 ,sec4 #ejc4 ,,cftc-,,sec ,jo9t ,advisory ,committee on ,digital ,assets4 ,sec4 #ejd4 ,/udy on dec5traliz$ f9ance4 ,sec4 #eje4 ,/udy on non-fungible digital assets4 ,sec4 #ejf4 ,/udy on exp&+ f9ancial lit]acy among/ digital asset hold]s4 ,sec4 #ejg4 ,/udy on f9ancial m>ket infra/ructure improvem5ts4 ,title ,,vi--,miscellane\s ,sec4 #fja4 ,f9d+s2 s5se ( ,congress4 ,i ,def9itions2 ,rulemak+2 ,notice ( ,int5t to ,regi/] #aja4 ,def9itions "u ! ,securities ,act ( #aicc ,section #b7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a77 is am5d$ by add+ at ! end ! foll[+3 7#bj7 ,affiliat$ p]son ,! t]m affiliat$ p]son means a p]son 7includ+ a relat$ p]son7 t-- 7,a7 ) respect to a digital asset issu]-- 7i7 directly1 or indirectly ?r\gh "o or m int]m$i>ies1 controls1 or is controll$ by1 or is "u common control )1 su* digital asset issu]2 & 7ii7 0 describ$ "u clause 7i7 at any po9t 9 ! previ\s #c-mon? p]iod2 or 7,b7 ) respect to any digital asset-- 7i7 b5eficially owns #e p]c5t or m ( ! units ( su* digital asset t are !n out/&+2 & 7ii7 0 describ$ "u clause 7i7 at any po9t 9 ! previ\s #c-mon? p]iod4 7#ba7 ,block*a9 ,! t]m block*a9 means any te*nology-- 7,a7 :]e data is-- 7i7 %>$ across a network to create a public l$g] ( v]ifi$ transactions or in=mation among network p>ticipants2 7ii7 l9k$ us+ cryptography to ma9ta9 ! integrity ( ! public l$g] & to execute o!r functions2 & 7iii7 di/ribut$ among network p>ticipants 9 an automat$ fa%ion to concurr5tly update network p>ticipants on ! /ate ( ! public l$g] & any o!r functions2 & 7,b7 compos$ ( s\rce code t is publicly available4 7#bb7 ,block*a9 protocol ,! t]m block*a9 protocol means any executable s(tw>e deploy$ to a block*a9 compos$ ( s\rce code t is publicly available & accessible1 includ+ a sm>t contract or any network ( sm>t contracts4 7#bc7 ,block*a9 sy/em ,! t]m block*a9 sy/em means any block*a9 or block*a9 protocol4 7#bd7 ,dec5traliz$ network ,) respect to a block*a9 sy/em to :i* a digital asset relates1 ! t]m dec5traliz$ network means ! foll[+ conditions are met3 7,a7 ,dur+ ! previ\s #ab-mon? p]iod1 no p]son-- 7i7 _h ! unilat]al au?ority1 directly or indirectly1 ?r\gh any contract1 arrangem5t1 und]/&+1 relation%ip1 or o!rwise1 to control or mat]ially alt] ! functionality or op]ation ( ! block*a9 sy/em2 or 7ii7 _h ! unilat]al au?ority to re/rict or prohibit any p]son :o is n a digital asset issu]1 relat$ p]son1 or an affiliat$ p]son f-- 7,i7 us+1 e>n+1 or transmitt+ ! digital asset2 7,,ii7 deploy+ s(tw>e t uses or integrates ) ! block*a9 sy/em2 7,,iii7 p>ticipat+ 9 a dec5traliz$ gov]nance sy/em ) respect to ! block*a9 sy/em2 or 7,,iv7 op]at+ a node1 validator1 or o!r =m ( computational infra/ructure ) respect to ! block*a9 sy/em4 7,b7 ,dur+ ! previ\s #ab-mon? p]iod-- 7i7 no digital asset issu] or affiliat$ p]son b5eficially own$1 9 ! aggregate1 #bj p]c5t or m ( ! total am\nt ( units ( su* digital asset t-- 7,i7 c be creat$1 issu$1 or di/ribut$ 9 su* block*a9 sy/em2 & 7,,ii7 7 freely transf]rable or o!rwise us$ or available to be us$ = ! purposes ( su* block*a9 sy/em2 7ii7 no digital asset issu] or affiliat$ p]son _h ! unilat]al au?ority to direct ! vot+1 9 ! aggregate1 ( #bj p]c5t or m ( ! out/&+ vot+ p[] ( su* digital asset or relat$ dec5traliz$ gov]nance sy/em2 or 7iii7 ! digital asset did n include vot+ p[] ) respect to any dec5traliz$ gov]nance sy/em ( ! block*a9 sy/em4 7,c7 ,dur+ ! previ\s #c-mon? p]iod1 ! digital asset issu]1 any affiliat$ p]son1 or any relat$ p]son has n implem5t$ or contribut$ any intellectual prop]ty to ! s\rce code ( ! block*a9 sy/em t mat]ially alt]s ! functionality or op]ation ( ! block*a9 sy/em1 unless su* implem5tation or contribution to ! s\rce code-- 7i7 address$ vuln]abilities1 errors1 regul> ma9t5ance1 cyb]security risks1 or o!r te*nical *anges to ! block*a9 sy/em2 or 7ii7 7 adopt$ ?r\gh ! cons5sus or agreem5t ( a dec5traliz$ gov]nance sy/em4 7,d7 ,dur+ ! previ\s #c-mon? p]iod1 nei!r any digital asset issu] nor any affiliat$ p]son describ$ "u p>agraph 7#bj77;,a7 has m>ket$ to ! public ! digital assets z an inve/m5t4 7,e7 ,dur+ ! previ\s #ab-mon? p]iod1 all issuances ( units ( su* digital asset ?r\gh ! programmatic function+ ( ! block*a9 sy/em 7 end us] di/ributions4 7#be7 ,dec5traliz$ gov]nance sy/em 7,a7 ,9 g5]al ,! t]m dec5traliz$ gov]nance sy/em means1 ) respect to a block*a9 sy/em1 any rules-bas$ sy/em p]mitt+ p]sons us+ ! block*a9 sy/em or ! digital assets relat$ to su* block*a9 sy/em to =m cons5sus or rea* agreem5t 9 ! developm5t1 provision1 publication1 managem5t1 or adm9i/ration ( su* block*a9 sy/em4 7,b7 ,relation%ip ( p]sons to dec5traliz$ gov]nance sy/ems ,p]sons act+ ?r\gh a dec5traliz$ gov]nance sy/em %all be treat$ z sep>ate p]sons unless su* p]sons are "u common control4 7,c7 ,exclusion ,! t]m dec5traliz$ gov]nance sy/em does n include a sy/em 9 :i*-- 7i7 a p]son or gr\p ( p]sons "u common control h ! ability to-- 7,i7 unilat]ally alt] ! rules ( cons5sus or agreem5t = ! block*a9 sy/em2 or 7,,ii7 det]m9e ! f9al outcome ( decisions relat$ to ! developm5t1 provision1 publication1 managem5t1 or adm9i/ration ( su* block*a9 sy/em2 7ii7 a p]son or gr\p ( p]sons is directly engag+ 9 an activity t requires regi/ration ) ! ,commission or ! ,commodity ,futures ,trad+ ,commission o!r ?an-- 7,i7 develop+1 provid+1 publi%+1 manag+1 or adm9i/]+ a block*a9 sy/em2 or 7,,ii7 an activity ) respect to :i* ! organization is exempt f su* regi/ration2 or 7iii7 a p]son or gr\p ( p]sons seek+ to kn[+ly evade ! requirem5ts impos$ on a digital asset issu]1 a relat$ p]son1 an affiliat$ p]son1 or any o!r p]son regi/]$ 7or requir$ to be regi/]$7 "u ! securities laws1 ! ,f9ancial ,innovation & ,te*nology = ! #ba/ ,c5tury ,act1 or ! ,commodity ,ex*ange ,act4 7#bf7 ,digital asset 7,a7 ,9 g5]al ,! t]m digital asset means any fungible digital repres5tation ( value t c be exclusively possess$ & transf]r$1 p]son to p]son1 )\t necess>y reliance on an int]m$i>y1 & is record$ on a cryptographically secur$ public di/ribut$ l$g]4 7,b7 ,exclusions ,! t]m digital asset does n include-- 7i7 any note1 /ock1 treasury /ock1 security future1 security-bas$ swap1 bond1 deb5ture1 evid5ce ( indebt$ness1 c]tificate ( int]e/ or p>ticipation 9 any pr(it-%>+ agreem5t1 collat]al-tru/ c]tificate1 preorganization c]tificate or subscription1 or transf]able %>e2 or 7ii7 any asset1 :i* bas$ on its t]ms & o!r *>act]i/ics1 is1 repres5ts1 or is functionally equival5t to an agreem5t1 contract1 or transaction t is-- 7,i7 a contract ( sale ( a commodity 7z def9$ "u section #a;a ( ! ,commodity ,ex*ange ,act7 = future deliv]y or an option !reon2 7,,ii7 a security futures product2 7,,iii7 a swap2 7,,iv7 an agreem5t1 contract1 or transaction describ$ 9 section #b7;c77#b77;,c77i7 or #b7;c77#b77;,d77i7 ( ! ,commodity ,ex*ange ,act2 7,v7 a commodity option au?oriz$ "u section #d;c ( ! ,commodity ,ex*ange ,act2 or 7,,vi7 a lev]age transaction au?oriz$ "u section #ai ( ! ,commodity ,ex*ange ,act4 7,c7 ,rule ( con/ruction ,no?+ 9 ?is p>agraph %all be con/ru$ to create a presumption t a digital asset is a repres5tation ( any type ( security n exclud$ f ! def9ition ( digital asset4 7,d7 ,relation%ip to a block*a9 sy/em ,a digital asset is consid]$ to relate to a block*a9 sy/em if ! digital asset is intr9sically l9k$ to ! block*a9 sy/em1 includ+-- 7i7 :]e ! digital asset's value is reasonably expect$ to be g5]at$ by ! programmatic function+ ( ! block*a9 sy/em2 7ii7 :]e ! digital asset has vot+ rights ) respect to ! dec5traliz$ gov]nance sy/em ( ! block*a9 sy/em2 or 7iii7 :]e ! digital asset is issu$ ?r\gh ! programmatic function+ ( ! block*a9 sy/em4 7,e7 ,treatm5t ( c]ta9 digital assets sold pursuant to an inve/m5t contract ,a digital asset (f]$ or sold or int5d$ to be (f]$ or sold pursuant to an inve/m5t contract is n & does n become a security z a result ( be+ sold or o!rwise transf]r$ pursuant to t inve/m5t contract4 7#bg7 ,digital asset issu] 7,a7 ,9 g5]al ,) respect to a digital asset1 ! t]m digital asset issu] means any p]son t1 9 ex*ange = any consid]ation-- 7i7 issues or causes to be issu$ a unit ( su* digital asset to a p]son2 or 7ii7 (f]s or sells a "r to a future issuance ( a unit ( su* digital asset to a p]son4 7,b7 ,exclusion ,! t]m digital asset issu] does n include any p]son solely because su* p]son deploys s\rce code t creates or issues units ( a digital asset t are only di/ribut$ 9 end us] di/ributions4 7,c7 ,prohibition on evasion ,x %all be unlawful = any p]son to kn[+ly evade classification z a digital asset issu] & facilitate an arrangem5t = ! prim>y purpose ( effect+ a sale1 di/ribution1 or o!r issuance ( a digital asset4 7#bh7 ,digital asset maturity date ,! t]m digital asset maturity date means1 ) respect to any digital asset1 ! fir/ date on :i* #bj p]c5t or m ( ! total units ( su* digital asset t are !n out/&+ z ( su* date are-- 7,a7 digital commodities2 or 7,b7 digital assets t h be5 regi/]$ ) ! ,commission4 7#bi7 ,digital commodity ,! t]m digital commodity has ! mean+ giv5 t t]m "u section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a74 7#cj7 ,end us] di/ribution 7,a7 ,9 g5]al ,! t]m end us] di/ribution means an issuance ( a unit ( a digital asset t-- 7i7 does n involve an ex*ange ( m ?an a nom9al value ( ca%1 prop]ty1 or o!r assets2 & 7ii7 is di/ribut$ 9 a broad1 equitable1 & non-discretion>y mann] bas$ on conditions capable ( be+ satisfi$ by any p>ticipant 9 ! block*a9 sy/em1 includ+ z inc5tive-bas$ rew>ds-- 7,i7 to us]s ( ! digital asset or any block*a9 sy/em to :i* ! digital asset relates2 7,,ii7 = activities directly relat$ to ! op]ation ( ! block*a9 sy/em1 su* z m9+1 validat+1 /ak+1 or o!r activity directly ti$ to ! op]ation ( ! block*a9 sy/em2 or 7,,iii7 to ! exi/+ hold]s ( ano!r digital asset1 9 proportion to ! total units ( su* o!r digital asset z are held by ea* p]son4 7,b7 ,prohibition on evasion ,x %all be unlawful = any p]son to facilitate an end us] di/ribution to kn[+ly evade classification z a digital asset issu]1 relat$ p]son1 or an affiliat$ p]son1 or ! requirem5ts relat$ to a digital asset issuance4 7#ca7 ,functional network ,) respect to a block*a9 sy/em to :i* a digital asset relates1 ! t]m functional network means ! network all[s network p>ticipants to use su* digital asset =-- 7,a7 ! transmission & /orage ( value on ! block*a9 sy/em2 7,b7 ! p>ticipation 9 s]vices provid$ by or an application runn+ on ! block*a9 sy/em2 or 7,c7 ! p>ticipation 9 ! dec5traliz$ gov]nance sy/em ( ! block*a9 sy/em4 7#cb7 ,p]mitt$ paym5t /ableco9 ,! t]m p]mitt$ paym5t /ableco9-- 7,a7 means a digital asset-- 7i7 t is or is design$ to be us$ z a means ( paym5t or settlem5t2 7ii7 ! issu] ( :i*-- 7,i7 is obligat$ to conv]t1 r$eem1 or repur*ase = a fix$ am\nt ( monet>y value2 or 7,,ii7 repres5ts w ma9ta9 or creates ! reasonable expectation t x w ma9ta9 a /able value relative to ! value ( a fix$ am\nt ( monet>y value2 & 7iii7 t is subject to regulation by a ,f$]al or ,/ate regulator ) au?ority ov] entities t issue paym5t /ableco9s2 & 7,b7 t is n-- 7i7 a national curr5cy2 or 7ii7 a security issu$ by an inve/m5t company regi/]$ "u section #h7;a7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#h7;a774 7#cc7 ,relat$ p]son ,) respect to a digital asset issu]1 ! t]m relat$ p]son means-- 7,a7 a f\nd]1 promot]1 employee1 consultant1 advisor1 or p]son s]v+ 9 a simil> capacity2 7,b7 any p]son t is or 0 9 ! previ\s #f-mon? p]iod an executive (fic]1 director1 tru/ee1 g5]al p>tn]1 advisory bo>d memb]1 or p]son s]v+ 9 a simil> capacity2 7,c7 any equity hold] or o!r security hold]2 or 7,d7 any o!r p]son t receiv$ a unit ( digital asset f su* digital asset issu] ?r\gh-- 7i7 an exempt (f]+1 o!r ?an an (f]+ made 9 reliance on section #d7;a77#h72 or 7ii7 a di/ribution t is n an end us] di/ribution describ$ "u section #db7;d77#a7 ( ! ,securities ,ex*ange ,act ( #aicd4 7#cd7 ,re/rict$ digital asset 7,a7 ,9 g5]al ,! t]m re/rict$ digital asset means-- 7i7 any unit ( a digital asset held by a p]son1 o!r ?an ! digital asset issu]1 a relat$ p]son1 or an affiliat$ p]son1 prior to ! fir/ date on :i* ea* block*a9 sy/em to :i* ! digital asset relates is a functional network & c]tifi$ to be a dec5traliz$ network "u section #dd ( ! ,securities ,ex*ange ,act ( #aicd1 t 0-- 7,i7 issu$ to su* p]son ?r\gh a di/ribution1 o!r ?an an end us] di/ribution describ$ "u section #db7;d77#a7 ( ! ,securities ,ex*ange ,act ( #aicd2 or 7,,ii7 acquir$ by su* p]son 9 a transaction t 0 n execut$ on a digital commodity ex*ange2 7ii7 any digital asset held by a relat$ p]son or an affiliat$ p]son dur+ any p]iod :5 any block*a9 sy/em to :i* ! digital asset relates is n a functional network or n c]tifi$ to be a dec5traliz$ network "u section #dd ( ! ,securities ,ex*ange ,act ( #aicd2 or 7iii7 any unit ( a digital asset held by ! digital asset issu]4 7,b7 ,exclusion ,! t]m re/rict$ digital asset does n include a p]mitt$ paym5t /ableco94 7#ce7 ,securities laws ,! t]m securities laws has ! mean+ giv5 t t]m "u section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a774 7#cf7 ,s\rce code ,) respect to a block*a9 sy/em1 ! t]m s\rce code means a li/+ ( comm&s to be compil$ or assembl$ into an executable comput] program4 4 #ajb4 ,def9itions "u ! ,securities ,ex*ange ,act ( #aicd ,section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a77 is am5d$-- 7#h7 by r$esignat+ ! second p>agraph 7#hj7 7relat+ to fund+ portals7 z p>agraph 7#ha72 & 7#i7 by add+ at ! end ! foll[+3 7#hb7 ,bank ,secrecy ,act ,! t]m ,bank ,secrecy ,act means-- 7,a7 section #ba ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbi;b72 7,b7 *apt] #b ( title ,i ( ,public ,law #ia-ejh 7#ab ,u4,s4,c4 #aiea et seq472 & 7,c7 sub*apt] ,,ii ( *apt] #ec ( title #ca1 ,unit$ ,/ates ,code4 7#hc7 ,digital asset brok] ,! t]m digital asset brok]-- 7,a7 means any p]son engag$ 9 ! bus9ess ( effect+ transactions 9 re/rict$ digital assets = ! acc\nt ( o!rs2 & 7,b7 does n include a block*a9 protocol or a p]son or gr\p ( p]sons solely because ( _! developm5t ( a block*a9 protocol4 7#hd7 ,digital asset cu/odian ,! t]m digital asset cu/odian means an entity 9 ! bus9ess ( provid+ cu/odial or safekeep+ s]vices = re/rict$ digital assets4 7#he7 ,digital asset deal] ,! t]m digital asset deal]-- 7,a7 means any p]son engag$ 9 ! bus9ess ( buy+ & sell+ re/rict$ digital assets = su* p]son's own acc\nt ?r\gh a brok] or o!rwise2 & 7,b7 does n include-- 7i7 a p]son t buys or sells re/rict$ digital assets = su* p]son's own acc\nt1 ei!r individually or 9 a fiduci>y capacity1 b n z a "p ( a regul> bus9ess2 or 7ii7 a block*a9 protocol or a p]son or gr\p ( p]sons solely because ( _! developm5t ( a block*a9 protocol4 7#hf7 ,digital asset trad+ sy/em ,! t]m digital asset trad+ sy/em-- 7,a7 means any organization1 association1 p]son1 or gr\p ( p]sons1 :e!r incorporat$ or un9corporat$1 t con/itutes1 ma9ta9s1 or provides a m>ket place or facilities = br++ toge!r pur*as]s & sell]s ( re/rict$ digital assets or = o!rwise p]=m+ ) respect to digital assets ! functions commonly p]=m$ by a /ock ex*ange )9 ! mean+ ( section #bdj4c;b-#af ( title #ag1 ,code ( ,f$]al ,regulations1 z 9 effect on ! date ( enactm5t ( ?is p>agraph2 & 7,b7 does n include a block*a9 protocol or a p]son or gr\p ( p]sons solely because ( _! developm5t ( a block*a9 protocol4 7#hg7 ,mix$ digital asset transaction ,! t]m mix$ digital asset transaction means an agreem5t1 contract1 or transaction involv+ a re/rict$ digital asset & a digital commodity4 7#hh7 ,notice-regi/]$ digital asset cle>+ ag5cy ,! t]m notice-regi/]$ digital asset cle>+ ag5cy means a cle>+ ag5cy t has regi/]$ ) ! ,commission pursuant to section #ag;,a7b77#i74 7#hi7 ,additional digital asset-relat$ t]ms 7,a7 ,securities ,act ( #aicc ,! t]ms affiliat$ p]son1 block*a9 sy/em1 dec5traliz$ gov]nance sy/em1 dec5traliz$ network1 digital asset1 digital asset issu]1 digital asset maturity date1 end us] di/ribution1 functional network1 mix$ digital asset transaction1 p]mitt$ paym5t /ableco91 relat$ p]son1 re/rict$ digital asset1 & s\rce code h ! mean+ giv5 ^? t]ms1 respectively1 "u section #b7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a774 7,b7 ,commodity ,ex*ange ,act ,! t]ms digital commodity1 digital commodity brok]1 digital commodity deal]1 & digital commodity ex*ange h ! mean+ giv5 ^? t]ms1 respectively1 "u section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a74 4 #ajc4 ,def9itions "u ! ,commodity ,ex*ange ,act ,section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a7 is am5d$-- 7#a7 9 p>agraph 7#aj77;,a7-- 7,a7 by r$esignat+ clauses 7iii7 & 7iv7 z clauses 7iv7 & 7v71 respectively2 & 7,b7 by ins]t+ aft] clause 7ii7 ! foll[+3 7iii7 digital commodity2 2 7#b7 9 p>agraph 7#aa7-- 7,a7 9 subp>agraph 7,a77i7-- 7i7 by r$esignat+ subclauses 7,,iii7 & 7,,iv7 z subclauses 7,,iv7 & 7,v71 respectively2 & 7ii7 by ins]t+ aft] subclause 7,,ii7 ! foll[+3 7,,iii7 digital commodity2 2 & 7,b7 by r$esignat+ subp>agraph 7,b7 z subp>agraph 7,c7 & ins]t+ aft] subp>agraph 7,a7 ! foll[+3 7,b7 ,exclusion ,! t]m commodity pool op]ator does n include-- 7i7 a dec5traliz$ gov]nance sy/em2 or 7ii7 ancill>y activities1 z def9$ 9 section #dv4 2 7#c7 9 p>agraph 7#ab77;,a77i7-- 7,a7 9 subclause 7,,ii71 by add+ at ! end a semicolon2 7,b7 by r$esignat+ subclauses 7,,iii7 & 7,,iv7 z subclauses 7,,iv7 & 7,v71 respectively2 & 7,c7 by ins]t+ aft] subclause 7,,ii7 ! foll[+3 7,,iii7 a digital commodity2 2 7#d7 9 p>agraph 7#dj7-- 7,a7 by /rik+ & at ! end ( subp>agraph 7,e72 7,b7 by /rik+ ! p]iod at ! end ( subp>agraph 7,f7 & ins]t+ 2 &2 & 7,c7 by add+ at ! end ! foll[+3 7,g7 a digital commodity ex*ange regi/]$ "u section #e;i4 2 & 7#e7 by add+ at ! end ! foll[+3 7#eb7 ,associat$ p]son ( a digital commodity brok] 7,a7 ,9 g5]al ,except z provid$ 9 subp>agraph 7,b71 ! t]m associat$ p]son ( a digital commodity brok] means a p]son :o is associat$ ) a digital commodity brok] z a p>tn]1 (fic]1 employee1 or ag5t 7or any p]son occupy+ a simil> /atus or p]=m+ simil> functions7 9 any capacity t involves-- 7i7 ! solicitation or acceptance ( a contract = sale ( a digital commodity2 or 7ii7 ! sup]vision ( any p]son engag$ 9 ! solicitation or acceptance ( a contract = sale ( a digital commodity4 7,b7 ,exclusion ,! t]m associat$ p]son ( a digital commodity brok] does n include any p]son associat$ ) a digital commodity brok] ! functions ( :i* are solely cl]ical or m9i/]ial4 7#ec7 ,associat$ p]son ( a digital commodity deal] 7,a7 ,9 g5]al ,except z provid$ 9 subp>agraph 7,b71 ! t]m associat$ p]son ( a digital commodity deal] means a p]son :o is associat$ ) a digital commodity deal] z a p>tn]1 (fic]1 employee1 or ag5t 7or any p]son occupy+ a simil> /atus or p]=m+ simil> functions7 9 any capacity t involves-- 7i7 ! solicitation or acceptance ( a contract = sale ( a digital commodity2 or 7ii7 ! sup]vision ( any p]son engag$ 9 ! solicitation or acceptance ( a contract = sale ( a digital commodity4 7,b7 ,exclusion ,! t]m associat$ p]son ( a digital commodity deal] does n include any p]son associat$ ) a digital commodity deal] ! functions ( :i* are solely cl]ical or m9i/]ial4 7#ed7 ,bank ,secrecy ,act ,! t]m ,bank ,secrecy ,act means-- 7,a7 section #ba ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbi;b72 7,b7 *apt] #b ( title ,i ( ,public ,law #ia-ejh 7#ab ,u4,s4,c4 #aiea et seq472 & 7,c7 sub*apt] ,,ii ( *apt] #ec ( title #ca1 ,unit$ ,/ates ,code4 7#ee7 ,digital commodity 7,a7 ,9 g5]al ,! t]m digital commodity means-- 7i7 any unit ( a digital asset held by a p]son1 o!r ?an a digital asset issu]1 a relat$ p]son1 or an affiliat$ p]son1 be=e ! fir/ date on :i* ea* block*a9 sy/em to :i* ! digital asset relates is a functional network & c]tifi$ to be a dec5traliz$ network "u section #dd ( ! ,securities ,ex*ange ,act ( #aicd1 t 0-- 7,i7 issu$ to ! p]son ?r\gh an end us] di/ribution describ$ "u section #db7;d77#a7 ( ! ,securities ,ex*ange ,act ( #aicd2 or 7,,ii7 acquir$ by su* p]son 9 a transaction t 0 execut$ on a digital commodity ex*ange2 or 7ii7 any unit ( a digital asset held by a p]son1 o!r ?an a digital asset issu]1 a relat$ p]son1 or an affiliat$ p]son1 aft] ! fir/ date on :i* ea* block*a9 sy/em to :i* ! digital asset relates is a functional network & c]tifi$ to be a dec5traliz$ network "u section #dd ( ! ,securities ,ex*ange ,act ( #aicd2 & 7iii7 any unit ( a digital asset held by a relat$ p]son or an affiliat$ p]son dur+ any p]iod :5 any block*a9 sy/em to :i* ! digital asset relates is a functional network & c]tifi$ to be a dec5traliz$ network "u section #dd ( ! ,securities ,ex*ange ,act ( #aicd4 7,b7 ,exclusion ,! t]m digital commodity does n include a p]mitt$ paym5t /ableco94 7#ef7 ,digital commodity brok] 7,a7 ,9 g5]al ,! t]m digital commodity brok] means any p]son :o1 9 a digital commodity ca% or spot m>ket1 is-- 7i7 engag$ 9 solicit+ or accept+ ord]s = ! pur*ase or sale ( a unit ( a digital commodity f a cu/om] t is n an eligible contract p>ticipant2 7ii7 engag$ 9 solicit+ or accept+ ord]s = ! pur*ase or sale ( a unit ( a digital commodity f a cu/om] on or subject to ! rules ( a regi/]$ entity2 or 7iii7 regi/]$ ) ! ,commission z a digital commodity brok]4 7,b7 ,exceptions ,! t]m digital commodity brok] does n include a p]son solely because ! p]son-- 7i7 ent]s into a digital commodity transaction ! prim>y purpose ( :i* is to make1 s5d1 receive1 or facilitate paym5ts1 :e!r involv+ a paym5t s]vice provid] or on a pe]-to-pe] basis2 or 7ii7 validates a digital commodity transaction1 op]ates a node1 or engages 9 simil> activity to p>ticipate 9 facilitat+1 op]at+1 or secur+ a block*a9 sy/em4 7#eg7 ,digital commodity cu/odian ,! t]m digital commodity cu/odian means a bank or tru/ company 9 ! bus9ess ( hold+1 ma9ta9+1 or safegu>d+ digital commodities4 7#eh7 ,digital commodity deal] 7,a7 ,9 g5]al ,! t]m digital commodity deal] means any p]son :o-- 7i7 9 digital commodity ca% or spot m>kets-- 7,i7 holds itself out z a deal] 9 a digital commodity2 7,,ii7 makes a m>ket 9 a digital commodity2 7,,iii7 regul>ly ent]s into digital commodity transactions ) c\nt]p>ties z an ord9>y c\rse ( bus9ess = its own acc\nt2 or 7,,iv7 engages 9 any activity caus+ ! p]son to be commonly kn[n 9 ! trade z a deal] or m>ket mak] 9 a digital commodity2 7ii7 regul>ly ent]s into any agreem5t1 contract1 or transaction describ$ 9 subsection 7c77#b77;,d77i7 involv+ a digital commodity2 or 7iii7 is regi/]$ ) ! ,commission z a digital commodity deal]4 7,b7 ,exception ,! t]m digital commodity deal] does n include a p]son solely because ! p]son-- 7i7 ent]s into a digital commodity transaction ) an eligible contract p>ticipant2 7ii7 ent]s into a digital commodity transaction on or ?r\gh a regi/]$ digital commodity ex*ange2 7iii7 ent]s into a digital commodity transaction = ! p]son's own acc\nt1 ei!r individually or 9 a fiduci>y capacity1 b n z a "p ( a regul> bus9ess2 7iv7 ent]s into a digital commodity transaction ! prim>y purpose ( :i* is to make1 s5d1 receive1 or facilitate paym5ts1 :e!r involv+ a paym5t s]vice provid] or on a pe]-to-pe] basis2 or 7v7 validates a digital commodity transaction1 op]ates a node1 or engages 9 simil> activity to p>ticipate 9 facilitat+1 op]at+1 or secur+ a block*a9 sy/em4 7#ei7 ,digital commodity ex*ange ,! t]m digital commodity ex*ange means a trad+ facility t (f]s or seeks to (f] a ca% or spot m>ket 9 at lea/ #a digital commodity4 7#fj7 ,digital asset-relat$ def9itions 7,a7 ,securities ,act ( #aicc ,! t]ms affiliat$ p]son1 block*a9 sy/em1 dec5traliz$ gov]nance sy/em1 dec5traliz$ network1 digital asset1 digital asset issu]1 end us] di/ribution1 functional network1 p]mitt$ paym5t /ableco91 relat$ p]son1 & re/rict$ digital asset h ! mean+ giv5 ! t]ms1 respectively1 "u section #b7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a774 7,b7 ,securities ,ex*ange ,act ( #aicd ,! t]ms digital asset brok] & digital asset deal] h ! mean+ giv5 ^? t]ms1 respectively1 "u section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a774 7#fa7 ,mix$ digital asset transaction ,! t]m mix$ digital asset transaction has ! mean+ giv5 t t]m "u section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a774 4 #ajd4 ,def9itions "u ?is ,act ,9 ?is ,act3 7#a7 ,def9itions "u ! ,commodity ,ex*ange ,act ,! t]ms digital commodity1 digital commodity brok]1 digital commodity deal]1 & digital commodity ex*ange h ! mean+ giv5 ^? t]ms1 respectively1 "u section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a74 7#b7 ,def9itions "u ! ,securities ,act ( #aicc ,! t]ms affiliat$ p]son1 block*a91 block*a9 sy/em1 block*a9 protocol1 dec5traliz$ network1 digital asset1 digital asset issu]1 digital asset maturity date1 digital asset trad+ sy/em1 end us] di/ribution1 functional network1 p]mitt$ paym5t /ableco91 re/rict$ digital asset1 securities laws1 & s\rce code h ! mean+ giv5 ^? t]ms1 respectively1 "u section #b7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a774 7#c7 ,def9itions "u ! ,securities ,ex*ange ,act ( #aicd ,! t]ms ,bank ,secrecy ,act1 digital asset brok]1 digital asset deal]1 digital asset trad+ sy/em1 mix$ digital asset transaction1 & self-regulatory organization h ! mean+ giv5 ^? t]ms1 respectively1 "u section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a774 #aje4 ,jo9t rulemak+s 7a7 ,def9itions ,! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all jo9tly issue rules to fur!r def9e ! foll[+ t]ms3 7#a7 ,! t]ms affiliat$ p]son1 block*a91 block*a9 sy/em1 block*a9 protocol1 dec5traliz$ network1 dec5traliz$ gov]nance sy/em1 digital asset1 digital asset issu]1 digital asset maturity date1 end us] di/ribution1 functional network1 relat$ p]son1 re/rict$ digital asset1 & s\rce code1 z def9$ "u section #b7;a7 ( ! ,securities ,act ( #aicc4 7#b7 ,! t]m mix$ digital asset transaction1 z def9$ "u section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd4 7#c7 ,! t]m digital commodity1 z def9$ "u section #a;a ( ! ,commodity ,ex*ange ,act4 7b7 ,jo9t rulemak+ = ex*anges ,! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all jo9tly issue rules to exempt p]sons dually regi/]$ ) ! ,commodity ,futures ,trad+ ,commission z a digital commodity ex*ange & ) ! ,securities & ,ex*ange ,commission z a digital asset trad+ sy/em f duplicative1 conflict+1 or unduly burd5some provisions ( ?is ,act1 ! securities laws1 & ! ,commodity ,ex*ange ,act & ! rules !reund]1 to ! ext5t su* exemption w\ld fo/] ! developm5t ( fair & ord]ly m>kets 9 digital assets1 be necess>y or appropriate 9 ! public int]e/1 & be consi/5t ) ! protection ( inve/ors4 7c7 ,jo9t rulemak+ = mix$ digital asset transactions ,! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all jo9tly issue rules applicable to mix$ digital asset transactions "u ?is ,act & ! am5dm5ts made by ?is ,act4 7d7 ,protection ( self-cu/ody 7#a7 ,9 g5]al ,! ,f9ancial ,crimes ,en=cem5t ,network may n issue any rule or ord] t w\ld prohibit a ,u4,s4 individual f-- 7,a7 ma9ta9+ a h>dw>e wallet1 s(tw>e wallet1 or o!r means to facilitate su* individual's own cu/ody ( digital assets2 or 7,b7 conduct+ transactions & self-cu/ody digital assets = any lawful purpose4 7#b7 ,rule ( con/ruction ,p>agraph 7#a7 may n be con/ru$ to limit ! ability ( ,f9ancial ,crimes ,en=cem5t ,network to c>ry out any en=cem5t au?ority4 7e7 ,jo9t rulemak+1 proc$ures1 or guidance = deli/+ ,n lat] ?an #cj days aft] ! date ( ! enactm5t ( ?is ,act1 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all jo9tly issue rules1 proc$ures1 or guidance 7z det]m9$ appropriate by ! ,commissions7 reg>d+ ! process to deli/ an asset = trad+ "u sections #ajf & #ajg ( ?is ,act if ! ,commissions det]m9e t ! li/+ is inconsi/5t ) ! ,commodity ,ex*ange ,act1 ! securities laws 7includ+ regulations "u ^? laws71 or ?is ,act4 #ajf4 ,notice ( int5t to regi/] = digital commodity ex*anges1 brok]s1 & deal]s 7a7 ,9 g5]al 7#a7 ,notice ( int5t to regi/] ,any p]son may file a notice ( int5t to regi/] ) ! ,commodity ,futures ,trad+ ,commission 79 ?is subsection ref]r$ to z ! ,commission7 z a-- 7,a7 digital commodity ex*ange1 = a p]son int5d+ to regi/] z a digital commodity ex*ange "u section #e;i ( ! ,commodity ,ex*ange ,act2 7,b7 digital commodity brok]1 = a p]son int5d+ to regi/] z a digital commodity brok] "u section #du ( su* ,act2 or 7,c7 digital commodity deal]1 = a p]son int5d+ to regi/] z a digital commodity deal] "u section #du ( su* ,act4 7#b7 ,fil+ ,a p]son desir+ to file a notice ( int5t to regi/] "u p>agraph 7#a7 %all be 9 compliance ) ?is section if ! p]son submits to ! ,commission-- 7,a7 a /atem5t ( ! nature ( ! regi/rations ! fil] int5ds to pursue2 7,b7 ! in=mation requir$ by subsections 7b7 & 7c74 7b7 ,disclosure ( g5]al in=mation ,a p]son fil+ a notice ( int5t to regi/] "u subsection 7a7 %all disclose to ! ,commission ! foll[+3 7#a7 ,in=mation conc]n+ ! managem5t ( ! p]son1 includ+ in=mation describ+-- 7,a7 ! own]%ip & managem5t ( ! p]son2 7,b7 ! f9ancial condition ( ! p]son2 7,c7 affiliat$ entities2 & 7,d7 pot5tial conflicts ( int]e/4 7#b7 ,in=mation conc]n+ ! op]ations ( ! p]son1 includ+-- 7,a7 any rulebook or o!r cu/om] ord] fulfilm5t rules2 7,b7 risk managem5t proc$ures2 & 7,c7 a description ( ! product li/+ process4 7c7 ,li/+ in=mation ,a p]son fil+ a notice ( int5t to regi/] "u subsection 7a7 %all provide to ! ,commission & ! ,securities & ,ex*ange ,commission a detail$ description ( ! product li/+ det]m9ation made by ! p]son = ea* asset li/$ or (f]$ = trad+ by ! p]son4 7d7 ,requirem5ts ,a p]son fil+ a notice ( int5t to regi/] "u subsection 7a7 %all comply ) ! foll[+ requirem5ts3 7#a7 ,books & records ,! p]son %all keep _! books & records op5 to inspection & exam9ation by ! ,commission4 7#b7 ,cu/om] disclosures ,! p]son %all disclose to consum]s-- 7,a7 in=mation ab\t ! mat]ial risks & *>act]i/ics ( ! assets li/$ = trad+ on ! p]son2 & 7,b7 in=mation ab\t ! mat]ial risks & *>act]i/ics ( ! transactions facilitat$ by ! p]son4 7#c7 ,cu/om] assets 7,a7 ,9 g5]al ,! p]son %all-- 7i7 hold cu/om] money1 assets1 & prop]ty 9 a mann] to m9imize ! risk ( loss to ! cu/om] or unreasonable delay 9 cu/om] access to money1 assets1 & prop]ty ( ! cu/om]2 7ii7 treat & deal ) all money1 assets1 & prop]ty1 includ+ any rights associat$ ) any su* money1 assets1 or prop]ty1 ( any cu/om] receiv$ z belong+ to ! cu/om]2 7iii7 segregate all money1 assets1 & prop]ty receiv$ f any cu/om] ( ! p]son f ! funds ( ! p]son1 except t-- 7,i7 ! money1 assets1 & prop]ty ( any cu/om] may be comm+l$ ) t ( any o!r cu/om]1 if sep>ately acc\nt$ =2 & 7,,ii7 ! %>e ( ! money1 assets1 & prop]ty1 z 9 ! normal c\rse ( bus9ess are necess>y to m>g91 gu>antee1 secure1 transf]1 adju/1 or settle a contract ( sale ( a commodity asset1 may be )drawn & appli$ to d s1 includ+ ! paym5t ( commissions1 brok]age1 int]e/1 taxes1 /orage1 & o!r *>ges lawfully accru+ 9 connection ) ! contract ( sale ( a digital commodity4 7,b7 ,additional res\rces 7i7 ,9 g5]al ,?is section %all n prev5t or be con/ru$ to prev5t ! p]son f add+ to ! cu/om] money1 assets1 & prop]ty requir$ to be segregat$ "u subp>agraph 7,a71 additional am\nts ( money1 assets1 or prop]ty f ! acc\nt ( ! p]son z ! p]son det]m9es necess>y to prev5t ! acc\nt ( a cu/om] f becom+ "u-segregat$4 7ii7 ,treatm5t z cu/om] funds ,any money1 assets1 or prop]ty deposit$ pursuant to clause 7i7 %all be consid]$ cu/om] prop]ty )9 ! mean+ ( ?is subsection4 7e7 ,compliance & en=cem5t 7#a7 ,9 g5]al ,a p]son :o has fil$ a notice ( int5t to regi/] "u ?is section & is 9 compliance ) ?is section %all n be subject to an en=cem5t action by ! ,securities & ,ex*ange ,commission =-- 7,a7 li/+ or (f]+ a digital asset deem$ a security2 or 7,b7 fail+ to regi/] z a national securities ex*ange1 brok]1 deal]1 or cle>+ ag5cy1 = activities relat$ to digital assets deem$ a security4 7#b7 ,noncompliance ,p>agraph 7#a7 %all n apply if1 aft] notice f ! ,commission & a reasonable opportunity to correct ! defici5cy1 a p]son :o has submitt$ a notice ( int5t to regi/] is n 9 compliance ) ?is section4 7#c7 ,anti-fraud & anti-manipulation ,p>agraph 7#a7 %all n be con/ru$ to limit any anti-manipulation1 anti-fraud1 or false report+ en=cem5t au?ority ( ! ,commission or ! ,securities & ,ex*ange ,commission4 7#d7 ,deli/+ ,p>agraph 7#a7 %all n be con/ru$ to limit ! au?ority ( ! ,commission or ! ,securities & ,ex*ange ,commission to require a p]son to deli/ an asset = trad+ if ! ,commission or ! ,securities & ,ex*ange ,commission det]m9es t ! li/+ is inconsi/5t ) ! ,commodity ,ex*ange ,act1 ! securities laws 7includ+ regulations "u ^? laws71 or ?is ,act4 7f7 ,f9al regi/ration 7#a7 ,9 g5]al ,a p]son may n file a notice ( int5t to regi/] ) ! ,commission aft] ! ,commission has f9aliz$ its rules = ! regi/ration ( digital commodity ex*anges1 digital commodity brok]s1 or digital commodity deal]s1 z appropriate4 7#b7 ,transition to f9al regi/ration 7,a7 ,ongo+ def]ral = entities regi/]$ ) ! ,commission ,subsection 7e77#a7 %all cont9ue to apply to a p]son :o has submitt$ a notice ( int5t to regi/] :ile ! p]son is regi/]$ ) ! ,commission z a digital commodity ex*ange1 a digital commodity brok]1 or a digital commodity deal]1 z appropriate4 7,b7 ,end ( def]ral ,subsection 7e77#a7 %all n apply to a p]son :o has submitt$ a notice ( int5t to regi/] if-- 7i7 ! ,commission-- 7,i7 det]m9es t ! p]son has fail$ to comply ) ! requirem5ts ( ?is section2 or 7,,ii7 d5ies ! application ( ! p]son to regi/]2 or 7ii7 ! digital commodity ex*ange1 digital commodity brok]1 or digital commodity deal] t fil$ a notice ( int5t to regi/] fail$ to regi/] z su* ) ! ,commission )9 #ahj days aft] ! ,commission f9aliz$ ! rules ( ! ,commission = ! regi/ration ( digital commodity ex*anges1 digital commodity brok]s1 or digital commodity deal]s1 z appropriate4 7g7 ,liability ( ! fil] ,x %all be unlawful = any p]son to provide false in=mation 9 support ( a fil+ "u ?is section if ! p]son kn[+ly or reasonably %\ld h kn[n t ! in=mation 0 false4 #ajg4 ,notice ( int5t to regi/] = digital asset brok]s1 deal]s1 & trad+ sy/ems 7a7 ,9 g5]al 7#a7 ,notice ( int5t to regi/] ,any p]son may file a notice ( int5t to regi/] ) ! ,securities & ,ex*ange ,commission 79 ?is section ref]r$ to z ! ,commission7 z-- 7,a7 a digital asset trad+ sy/em1 = a p]son int5d+ to regi/] z a digital asset trad+ sy/em "u section #f7m7 ( ! ,securities ,ex*ange ,act ( #aicd2 7,b7 a digital asset brok]1 = a p]son int5d+ to regi/] z a digital asset brok] "u section #ae;,h ( ! ,securities ,ex*ange ,act ( #aicd2 or 7,c7 a digital asset deal]1 = a p]son int5d+ to regi/] z a digital asset deal] "u section #ae;,h ( ! ,securities ,ex*ange ,act ( #aicd4 7#b7 ,fil+ ,a p]son desir+ to file a notice ( int5t to regi/] "u p>agraph 7#a7 %all be 9 compliance ) ?is section if ! p]son submits to ! ,commission-- 7,a7 a /atem5t ( ! nature ( ! regi/rations ! fil] int5ds to pursue2 & 7,b7 ! in=mation requir$ by subsections 7b7 & 7c74 7b7 ,disclosure ( g5]al in=mation ,a p]son fil+ a notice ( int5t to regi/] "u subsection 7a7 %all disclose to ! ,commission ! foll[+3 7#a7 ,in=mation conc]n+ ! managem5t ( ! p]son1 includ+ in=mation describ+-- 7,a7 ! own]%ip & managem5t ( ! p]son2 7,b7 ! f9ancial condition ( ! p]son2 7,c7 affiliat$ entities2 & 7,d7 pot5tial conflicts ( int]e/4 7#b7 ,in=mation conc]n+ ! op]ations ( ! p]son1 includ+-- 7,a7 any rulebook or o!r cu/om] ord] fulfilm5t rules2 7,b7 risk managem5t proc$ures2 & 7,c7 a description ( ! product li/+ process4 7c7 ,li/+ in=mation ,a p]son fil+ a notice ( int5t to regi/] "u subsection 7a7 %all provide to ! ,commission & ! ,commodity ,futures ,trad+ ,commission a detail$ description ( ! product li/+ det]m9ation made by ! p]son = ea* asset li/$ or (f]$ = trad+ by ! p]son4 7d7 ,requirem5ts ,a p]son fil+ a notice ( int5t to regi/] "u subsection 7a7 %all comply ) ! foll[+ requirem5ts3 7#a7 ,national securities association ,! p]son %all be a memb] ( a national securities association regi/]$ "u section #ae;,a ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho-#c71 & %all comply ) ! rules ( ! association1 includ+ ! rules ( ! association p]ta9+ to cu/om] disclosures & protection ( cu/om] assets4 7#b7 ,books & records ,! p]son %all keep _! books & records op5 to inspection & exam9ation by ! ,commission4 7#c7 ,cu/om] disclosures ,! p]son %all disclose to cu/om]s-- 7,a7 in=mation ab\t ! mat]ial risks & *>act]i/ics ( ! assets li/$ = trad+ on ! p]son2 7,b7 in=mation ab\t ! mat]ial risks & *>act]i/ics ( ! transactions facilitat$ by ! p]son2 & 7,c7 9 _! disclosure docum5ts1 (f]+ docum5ts1 & promotional mat]ial1 9 a prom95t mann]1 t !y are n regi/]$ ) or regulat$ by ! ,commission4 7#d7 ,cu/om] assets 7,a7 ,9 g5]al ,! p]son %all-- 7i7 hold cu/om] money1 assets1 & prop]ty 9 a mann] to m9imize ! risk ( loss to ! cu/om] or unreasonable delay 9 cu/om] access to money1 assets1 & prop]ty ( ! cu/om]2 7ii7 treat & deal ) all money1 assets1 & prop]ty1 includ+ any rights associat$ ) any su* money1 assets1 or prop]ty1 ( any cu/om] receiv$ z belong+ to ! cu/om]2 7iii7 segregate all money1 assets1 & prop]ty receiv$ f any cu/om] ( ! p]son f ! funds ( ! p]son1 except t-- 7,i7 ! money1 assets1 & prop]ty ( any cu/om] may be comm+l$ ) t ( any o!r cu/om]1 if sep>ately acc\nt$ =2 & 7,,ii7 ! %>e ( ! money1 assets1 & prop]ty1 z 9 ! normal c\rse ( bus9ess are necess>y to m>g91 gu>antee1 secure1 transf]1 adju/1 or settle a contract ( sale ( a digital asset1 may be )drawn & appli$ to d s1 includ+ ! paym5t ( commissions1 brok]age1 int]e/1 taxes1 /orage1 & o!r *>ges lawfully accru+ 9 connection ) ! contract ( sale ( a digital asset4 7,b7 ,additional res\rces 7i7 ,9 g5]al ,?is section %all n prev5t or be con/ru$ to prev5t ! p]son f add+ to ! cu/om] money1 assets1 & prop]ty requir$ to be segregat$ "u subp>agraph 7,a7 additional am\nts ( money1 assets1 or prop]ty f ! acc\nt ( ! p]son z ! p]son det]m9es necess>y to hold money1 assets1 or prop]ty equal to or 9 excess ( ! total digital asset obligation ( ! p]son4 7ii7 ,treatm5t z cu/om] funds ,any money1 assets1 or prop]ty deposit$ pursuant to clause 7i7 %all be consid]$ cu/om] prop]ty )9 ! mean+ ( ?is subsection4 7e7 ,compliance 7#a7 ,9 g5]al ,a p]son :o has fil$ a notice ( int5t to regi/] "u ?is section & is 9 compliance ) ?is section %all be exempt f ,commission rules & regulations p]ta9+ to regi/]+ z a national securities ex*ange1 brok]1 deal]1 or cle>+ ag5cy1 = activities relat$ to a digital asset deem$ a security4 7#b7 ,noncompliance ,p>agraph 7#a7 %all n apply if1 aft] notice f ! ,commission & a reasonable opportunity to correct ! defici5cy1 a p]son :o has submitt$ a notice ( int5t to regi/] is n 9 compliance ) ?is section4 7#c7 ,anti-fraud & anti-manipulation ,p>agraph 7#a7 %all n be con/ru$ to limit any fraud1 anti-manipulation1 or false report+ en=cem5t au?ority ( ! ,commission or ! ,commodity ,futures ,trad+ ,commission4 7#d7 ,deli/+ ,p>agraph 7#a7 %all n be con/ru$ to limit ! au?ority ( ! ,commission & ! ,commodity ,futures ,trad+ ,commission to jo9tly require a p]son to deli/ an asset = trad+ if ! ,commission & ! ,commodity ,futures ,trad+ ,commission det]m9es t ! li/+ is inconsi/5t ) ! ,commodity ,ex*ange ,act1 ! securities laws 7includ+ regulations "u ^? laws71 or ?is ,act4 7f7 ,f9al regi/ration 7#a7 ,9 g5]al ,a p]son may n file a notice ( int5t to regi/] ) ! ,commission aft] ! ,commission has f9aliz$ its rules = ! regi/ration ( digital asset brok]s1 digital asset deal]s1 digital asset trad+ sy/ems1 & notice-regi/]$ cle>+ ag5cies1 z appropriate4 7#b7 ,transition to f9al regi/ration ,subsection 7e77#a7 %all n apply to a p]son :o has submitt$ a notice ( int5t to regi/] if-- 7,a7 ! ,commission-- 7i7 det]m9es t ! p]son has fail$ to comply ) ! requirem5ts ( ?is section2 or 7ii7 d5ies ! application ( ! p]son to regi/]2 or 7,b7 ! digital asset brok]1 digital asset deal]1 or digital asset trad+ sy/em t fil$ a notice ( int5t to regi/] fail$ to apply = regi/ration z su* ) ! ,commission )9 #ahj days aft] ! effective date ( ! ,commission's f9al rules = ! regi/ration ( digital asset brok]s1 digital asset deal]s1 & digital asset trad+ sy/ems1 z appropriate4 7g7 ,liability ( ! fil] ,x %all be unlawful = any p]son to provide false in=mation 9 support ( a fil+ "u ?is section if ! p]son knew or reasonably %\ld h kn[n t ! in=mation 0 false4 7h7 ,national securities association ,a national securities association %all adopt rules = memb]%ip ) su* association = p]sons requir$ to be memb]s ( su* association "u subsection 7d77#a7 )9 #ahj days aft] ! date ( enactm5t ( ?is ,act4 #ajh4 ,commodity ,ex*ange ,act sav+s provisions 7a7 ,9 g5]al ,no?+ 9 ?is ,act %all affect or apply to1 or be int]pret$ to affect or apply to-- 7#a7 any agreem5t1 contract1 or transaction t is subject to regulation "u ! ,commodity ,ex*ange ,act z-- 7,a7 a contract ( sale ( a commodity = future deliv]y or an option on su* a contract2 7,b7 a swap2 7,c7 a security futures product2 7,d7 an option au?oriz$ "u section #d;c ( su* ,act2 7,e7 an agreem5t1 contract1 or transaction describ$ 9 section #b7;c77#b77;,c77i7 ( su* ,act2 or 7,f7 a lev]age transaction au?oriz$ "u section #ai ( su* ,act2 or 7#b7 ! activities ( any p]son ) respect to any su* agreem5t1 contract1 or transaction4 7b7 ,prohibitions on spot digital commodity entities ,no?+ 9 ?is ,act au?orizes1 or %all be int]pret$ to au?orize1 a digital commodity ex*ange1 digital commodity brok]1 or digital commodity deal] to engage 9 any activities involv+ any transaction1 contract1 or agreem5t describ$ 9 subsection 7a77#a71 solely by virtue ( be+ regi/]$ or fil+ notice ( int5t to regi/] z a digital commodity ex*ange1 digital commodity brok]1 or digital commodity deal]4 7c7 ,def9itions ,9 ?is section1 ea* t]m %all h ! mean+ provid$ 9 ! ,commodity ,ex*ange ,act or ! regulations prescrib$ "u su* ,act4 #aji4 ,int]national h>monization ,9 ord] to promote effective & consi/5t global regulation ( digital assets1 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission1 z appropriate-- 7#a7 %all consult & coord9ate ) =eign regulatory au?orities on ! e/abli%m5t ( consi/5t int]national /&>ds ) respect to ! regulation ( digital assets1 re/rict$ digital assets1 & digital commodities2 & 7#b7 may agree to su* in=mation-%>+ arrangem5ts z may be deem$ to be necess>y or appropriate 9 ! public int]e/ or = ! protection ( inve/ors1 cu/om]s1 & us]s ( digital assets4 #aaj4 ,implem5tation 7a7 ,global rulemak+ timeframe ,unless o!rwise provid$ 9 ?is ,act or an am5dm5t made by ?is ,act1 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission1 or bo?1 %all individually1 & jo9tly :]e requir$1 promulgate rules & regulations requir$ ( ea* ,commission "u ?is ,act or an am5dm5t made by ?is ,act n lat] ?an #cfj days aft] ! date ( enactm5t ( ?is ,act4 7b7 ,rules & regi/ration be=e f9al effective dates 7#a7 ,9 g5]al ,9 ord] to prep>e = ! implem5tation ( ?is ,act1 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission may1 be=e any effective date provid$ 9 ?is ,act-- 7,a7 promulgate rules1 regulations1 or ord]s p]mitt$ or requir$ by ?is ,act2 7,b7 conduct /udies & prep>e reports & recomm5dations requir$ by ?is ,act2 7,c7 regi/] p]sons "u ?is ,act2 & 7,d7 exempt p]sons1 agreem5ts1 contracts1 or transactions f provisions ( ?is ,act1 "u ! t]ms conta9$ 9 ?is ,act4 7#b7 ,limitation on effectiv5ess ,an action by ! ,commodity ,futures ,trad+ ,commission or ! ,securities & ,ex*ange ,commission "u p>agraph 7#a7 %all n become effective be=e ! effective date o!rwise applicable to ! action "u ?is ,act4 ,,ii ,(f]s & ,sales ( ,digital ,assets #bja4 ,exempt$ transactions 9 digital assets 7a7 ,9 g5]al ,! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;a et seq47 is am5d$-- 7#a7 9 section #d7;a71 by add+ at ! end ! foll[+3 7#h7 transactions involv+ ! (f] or sale ( units ( a digital asset by a digital asset issu]1 if-- 7,a7 ! aggregate am\nt ( units ( ! digital asset sold by ! digital asset issu] 9 reliance on ! exemption provid$ "u ?is p>agraph1 dur+ ! #ab-mon? p]iod prec$+ ! date ( su* transaction1 includ+ ! am\nt sold 9 su* transaction1 is n m ?an #ge1jjj1jjj 7z su* am\nt is annually adju/$ by ! ,commission to reflect ! *ange 9 ! ,consum] ,price ,index = ,all ,urban ,consum]s publi%$ by ! ,bureau ( ,labor ,/ati/ics ( ! ,dep>tm5t ( ,labor72 7,b7 ) respect to a transaction involv+ ! pur*ase ( units ( a digital asset by a p]son :o is n an accr$it$ inve/or1 ! aggregate am\nt ( all units ( digital assets pur*as$ by su* p]son dur+ ! #ab-mon? p]iod prec$+ ! date ( su* transaction1 includ+ ! unit ( a digital asset pur*as$ 9 su* transaction1 does n exce$ ! great] (-- 7i7 #aj p]c5t ( ! p]son's annual income or jo9t income ) t p]son's sp\se or sp\sal equival5t2 or 7ii7 #aj p]c5t ( ! p]son's net wor? or jo9t net wor? ) ! p]son's sp\se or sp\sal equival5t2 7,c7 aft] ! completion ( ! transaction1 ! pur*as] does n own m ?an #aj p]c5t ( ! total am\nt ( ! units ( ! digital asset sold 9 reliance on ! exemption "u ?is p>agraph2 7,d7 ! transaction does n involve ! (f] or sale ( any digital asset n (f]$ z "p ( an inve/m5t contract2 7,e7 ! transaction does n involve ! (f] or sale ( a unit ( a digital asset by a digital asset issu] t-- 7i7 is n organiz$ "u ! laws ( a ,/ate1 a t]ritory ( ! ,unit$ ,/ates1 or ! ,di/rict ( ,columbia2 7ii7 is a developm5t /age company t ei!r-- 7,i7 has no specific bus9ess plan or purpose2 or 7,,ii7 has indicat$ t ! bus9ess plan ( ! company is to m]ge ) or acquire an unid5tifi$ company2 7iii7 is an inve/m5t company1 z def9$ 9 section #c ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#c71 or is exclud$ f ! def9ition ( inve/m5t company by section #c7;b7 or section #c7;c7 ( t ,act 7#ae ,u4,s4,c4 #hj;a-#c7;b7 or #hj;a-#c7;c772 7iv7 is issu+ fractional undivid$ int]e/s 9 oil or gas rights1 or a simil> int]e/ 9 o!r m9]al rights2 7v7 is1 or has be51 subject to any ord] ( ! ,commission ent]$ pursuant to section #ab7;j7 ( ! ,securities ,ex*ange ,act ( #aicd dur+ ! #e-ye> p]iod be=e ! fil+ ( ! (f]+ /atem5t2 or 7vi7 is disqualifi$ pursuant to section #bcj4bfb ( title #ag1 ,code ( ,f$]al ,regulations2 & 7,f7 ! issu] meets ! requirem5ts ( section #d;,b7a74 2 & 7#b7 by ins]t+ aft] section #d;,a ! foll[+3 #d;,b4 ,requirem5ts ) respect to c]ta9 digital asset transactions 7a7 ,requirem5ts = digital asset issu]s 7#a7 ,in=mation requir$ 9 /atem5t ,a digital asset issu] (f]+ or sell+ a unit ( digital asset 9 reliance on section #d7;a77#h7 %all file ) ! ,commission a /atem5t conta9+ ! foll[+ in=mation3 7,a7 ,! "n1 legal /atus 7includ+ ! jurisdiction 9 :i* ! issu] is organiz$ & ! date ( organization71 & website ( ! digital asset issu]4 7,b7 ,! address & telephone numb] ( ! issu] or a legal repres5tative ( ! issu]4 7,c7 ,a c]tification t ! digital asset issu] meets ! relevant requirem5ts describ$ "u section #d7;a77#h74 7,d7 ,an ov]view ( ! mat]ial aspects ( ! (f]+4 7,e7 ,a description ( ! purpose & int5d$ use ( ! (f]+ proce$s4 7,f7 ,a description ( ! plan ( di/ribution ( any unit ( a digital asset t is to be (f]$4 7,g7 ,a description ( ! mat]ial risks surr\nd+ own]%ip ( a unit ( a digital asset4 7,h7 ,a description ( ! mat]ial aspects ( ! digital asset issu]'s bus9ess4 7,i7 ,a description ( exempt (f]+s conduct$ )9 ! pa/ ?ree ye>s by ! digital asset issu]4 7,j7 ,a description ( ! digital asset issu] & ! curr5t numb] ( employees ( ! digital asset issu]4 7,k7 ,a description ( any mat]ial transactions or relation%ips betwe5 ! digital asset issu] & affiliat$ p]sons4 7,l7 ,a description ( exempt (f]+s conduct$ )9 ! pa/ ?ree ye>s4 7#b7 ,in=mation requir$ = pur*as]s ,a digital asset issu] %all disclose ! in=mation describ$ "u section #dc ( ! ,securities ,ex*ange ,act ( #aicd on a freely accessible public website4 7#c7 ,ongo+ disclosure requirem5ts ,a digital asset issu] t has fil$ a /atem5t "u p>agraph 7#a7 to (f] & sell a unit ( a digital asset 9 reliance on section #d7;a77#h7 %all file ! foll[+ ) ! ,commission3 7,a7 ,annual reports ,an annual report t includes any mat]ial *anges to ! in=mation describ$ "u p>agraph 7#b7 = ! curr5t fiscal ye> & = any fiscal ye> !reaft]1 unless ! issu] is no long] obligat$ to file su* annual report pursuant to p>agraph 7#d74 7,b7 ,semiannual reports ,along ) ea* annual report requir$ "u subp>agraph 7,a71 & sep>ately six mon?s !reaft]1 a report conta9+-- 7i7 an updat$ description ( ! curr5t /ate & timel9e = ! developm5t ( ! block*a9 sy/em to :i* ! digital asset relates1 %[+ h[ & :5 ! block*a9 sy/em int5ds or int5d$ to be consid]$ a functional network & a dec5traliz$ network2 7ii7 ! am\nt ( money rais$ by ! digital asset issu] 9 reliance on section #d7;a77#h71 h[ mu* ( t money has be5 sp5t1 & ! g5]al categories & am\nts on :i* t money has be5 sp5t2 & 7iii7 any mat]ial *anges to ! in=mation 9 ! mo/ rec5t annual report4 7,c7 ,curr5t reports ,a curr5t report %all be fil$ ) ! ,commission reflect+ any mat]ial *anges to ! in=mation previ\sly report$ to ! ,commission by ! digital asset issu]4 7#d7 ,t]m9ation ( report+ requirem5ts 7,a7 ,9 g5]al ,! ongo+ report+ requirem5ts "u p>agraph 7#c7 %all n apply to a digital asset issu] #ahj days aft] ! end ( ! cov]$ fiscal ye>4 7,b7 ,cov]$ fiscal ye> def9$ ,9 ?is p>agraph1 ! t]m cov]$ fiscal ye> means ! fir/ fiscal ye> ( an issu] 9 :i* ! block*a9 sy/em to :i* ! digital asset relates is a functional network & c]tifi$ to be a dec5traliz$ network "u section #dd ( ! ,securities ,ex*ange ,act ( #aicd4 7b7 ,requirem5ts = int]m$i>ies 7#a7 ,9 g5]al ,a p]son act+ z an int]m$i>y 9 a transaction involv+ ! (f] or sale ( a unit ( a digital asset 9 reliance on section #d7;a77#h7 %all-- 7,a7 regi/] ) ! ,commission z a digital asset brok]2 & 7,b7 be a memb] ( a national securities association regi/]$ "u section #ae;,a ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho-#c74 7#b7 ,pur*as] qualification 7,a7 ,9 g5]al ,ea* "t1 be=e accept+ any commitm5t 7includ+ any additional commitm5t f ! same p]son71 an int]m$i>y or digital asset issu] %all h a reasonable basis = believ+ t ! pur*as] satisfies ! requirem5ts ( section #d7;a77#h74 7,b7 ,reliance on pur*as]'s repres5tations ,= purposes ( subp>agraph 7,a71 an int]m$i>y or digital asset issu] may rely on a pur*as]'s repres5tations conc]n+ ! pur*as]'s annual income & net wor? & ! am\nt ( ! pur*as]'s o!r inve/m5ts made1 unless ! int]m$i>y or digital asset issu] has reason to "q ! reliability ( ! repres5tation4 7,c7 ,reliance on int]m$i>y ,= purposes ( det]m9+ :e!r a transaction meets ! requirem5ts describ$ "u subp>agraph 7,a7 ?r\gh 7,c7 ( section #d7;a77#h71 a digital asset issu] may rely on ! ef=ts ( an int]m$i>y4 7c7 ,additional provisions 7#a7 ,acceptance ( writt5 (f]s2 sales ,aft] an issu] files a /atem5t "u p>agraph 7#a7 to (f] & sell a digital asset 9 reliance on section #d7;a77#h7-- 7,a7 writt5 (f]s ( ! digital asset may be made2 & 7,b7 ! issu] may sell ! digital assets 9 reliance on section #d7;a77#h71 if su* sales meet all o!r requirem5ts4 7#b7 ,solicitation ( int]e/ 7,a7 ,9 g5]al ,at any "t be=e ! fil+ ( a /atem5t "u p>agraph 7#a71 a digital asset issu] may communicate orally or 9 writ+ to det]m9e :e!r !re is any int]e/ 9 a contemplat$ (f]+4 ,su* communications are deem$ to be an (f] ( a unit ( a digital asset = sale = purposes ( ! anti-fraud provisions ( ! ,f$]al securities laws4 ,no solicitation or acceptance ( money or o!r consid]ation1 nor ( any commitm5t1 b9d+ or o!rwise1 f any p]son is p]mitt$ until ! /atem5t is fil$4 7,b7 ,conditions ,9 any communication describ$ "u subp>agraph 7,a71 ! digital asset issu] %all-- 7i7 /ate t no money or o!r consid]ation is be+ solicit$1 & if s5t 9 response1 w n be accept$2 7ii7 /ate t no (f] to buy a unit ( a digital asset c be accept$ & no "p ( ! pur*ase price c be receiv$ until ! /atem5t is fil$ & !n only ?r\gh an int]m$i>y2 & 7iii7 /ate t a p]son's indication ( int]e/ involves no obligation or commitm5t ( any k9d4 7,c7 ,indications ( int]e/ ,any writt5 communication describ$ "u subp>agraph 7,a7 may include a means by :i* a p]son may indicate to ! digital asset issu] t su* p]son is int]e/$ 9 a pot5tial (f]+4 ,a digital asset issu] may require a "n1 address1 telephone numb]1 or email address 9 any response =m includ$ ) a communication describ$ "u subp>agraph 7,a74 7#c7 ,disqualification provisions ,! ,commission %all issue rules to apply ! disqualification provisions "u section #bcj4bfb ( title #ag1 ,code ( ,f$]al ,regulations1 to ! exemption provid$ "u section #d7;a77#h74 7#d7 ,digital assets deem$ re/rict$ digital asset ,a unit ( a digital asset acquir$ directly or indirectly f ! digital asset issu] 9 reliance on ! exemption provid$ "u section #d7;a77#h7 is deem$ a re/rict$ digital asset4 4 7b7 ,additional exemptions 7#a7 ,c]ta9 regi/ration requirem5ts ,section #ab7;g77#f7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #ghl7g77#f77 is am5d$ by /rik+ "u section #d7f7 & ins]t+ "u section #d7;a77#f7 or #d7;a77#h74 7#b7 ,exemption f ,/ate regulation ,section #ah7;b77#d7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #ggr7b77#d77 is am5d$-- 7,a7 9 section 7,b71 by /rik+ section #d7d7 & ins]t+ section #d7;a77#d72 7,b7 9 section 7,c71 by /rik+ section #d7f7 & ins]t+ section #d7;a77#f72 7,c7 9 subp>agraph 7,f7-- 7i7 by /rik+ section #d7b7 ea* place su* t]m appe>s & ins]t+ section #d7;a77#b72 7ii7 by /rik+ or at ! end2 7,d7 9 subp>agraph 7,g71 by /rik+ ! p]iod & ins]t+ 2 or2 & 7,e7 by add+ at ! end ! foll[+3 7,h7 section #d7;a77#h74 4 #bjb4 ,requirem5ts = (f]s & sales ( c]ta9 digital assets ,title ,i ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 is am5d$ by add+ at ! end ! foll[+3 #db4 ,requirem5ts = (f]s & sales ( c]ta9 digital assets 7a7 ,(f]s & sales ( c]ta9 re/rict$ digital assets 7#a7 ,9 g5]al ,not)/&+ any o!r provision ( law1 subject to p>agraph 7#b71 a re/rict$ digital asset may be (f]$ & sold on a digital asset trad+ sy/em by any p]son o!r ?an a digital asset issu] if1 at ! "t ( su* (f] or sale1 any block*a9 sy/em to :i* ! re/rict$ digital asset relates is a functional network & ! in=mation describ$ 9 section #dc has be5 c]tifi$ & made publicly available = any block*a9 sy/em to :i* ! re/rict$ digital asset relates4 7#b7 ,additional rules = relat$ p]sons & affiliat$ p]sons ,except z provid$ "u subsection 7c71 a re/rict$ digital asset own$ by a relat$ p]son or an affiliat$ p]son may only be (f]$ or sold aft] #ab mon?s aft] ! lat] (-- 7,a7 ! date on :i* su* re/rict$ digital asset 0 acquir$2 or 7,b7 ! digital asset maturity date4 7b7 ,(f]s & sales ( c]ta9 digital commodities 7#a7 ,9 g5]al ,subject to p>agraph 7#b71 a digital commodity may be (f]$ & sold by any p]son4 7#b7 ,rules = relat$ & affiliat$ p]sons ,except z provid$ "u subsection 7c71 a digital commodity may only be (f]$ or sold by a relat$ p]son or an affiliat$ p]son if-- 7,a7 ! hold] ( ! digital commodity own$ ! digital commodity :ile x 0 a re/rict$ digital asset = #ab mon?s aft] ! lat] (-- 7i7 ! date on :i* su* re/rict$ digital asset 0 acquir$2 or 7ii7 ! digital asset maturity date2 7,b7 any block*a9 sy/em to :i* ! digital commodity relates is c]tifi$ to be a dec5traliz$ network "u section #dd2 & 7,c7 ! digital commodity is (f]$ or sold on or subject to ! rules ( a digital commodity ex*ange regi/]$ "u section #e;i ( ! ,commodity ,ex*ange ,act4 7#c7 ,n an inve/m5t contract ,= purposes ( ! securities laws1 an (f] or sale ( a digital commodity t does n violate p>agraph 7#b7 %all n be a transaction 9 an inve/m5t contract4 7c7 ,sales re/rictions = affiliat$ p]sons ,a digital asset may be (f]$ & sold by an affiliat$ p]son "u subsection 7a7 or 7b7 if-- 7#a7 ! aggregate am\nt ( su* digital assets sold 9 any #c-mon? p]iod by ! affiliat$ p]son is n great] ?an "o p]c5t ( ! digital assets !n out/&+2 or 7#b7 ! affiliat$ p]son promptly1 foll[+ ! placem5t ( an ord] to sell "o p]c5t or m ( ! digital assets !n out/&+ dur+ any #c-mon? p]iod1 reports ! sale to-- 7,a7 ! ,commodity ,futures ,trad+ ,commission1 9 ! case ( an ord] to sell a digital commodity on or subject to ! rules ( a digital commodity ex*ange2 or 7,b7 ! ,securities & ,ex*ange ,commission1 9 ! case ( a sell ord] = a re/rict$ digital asset plac$ ) a digital asset trad+ sy/em4 7d7 ,treatm5t ( c]ta9 end us] di/ributions "u ! securities laws 7#a7 ,9 g5]al ,) respect to a digital asset1 an end us] di/ribution is describ$ "u ?is p>agraph if-- 7,a7 ea* block*a9 sy/em to :i* su* digital asset relates is a functional network2 & 7,b7 ) respect to ! digital asset & ea* block*a9 sy/em to :i* su* digital asset relates1 ! in=mation describ$ 9 section #dc has be5 c]tifi$ & made publicly available4 7#b7 ,n an inve/m5t contract ,= purposes ( ! securities laws1 an end us] di/ribution describ$ "u p>agraph 7#a7 %all n be a transaction 9 an inve/m5t contract4 7#c7 ,exemption ,section #e ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;e7 %all n apply to an end us] di/ribution describ$ "u p>agraph 7#a7 or a transaction 9 a unit ( digital asset issu$ 9 su* a di/ribution4 4 #bjc4 ,enhanc$ disclosure requirem5ts ,title ,i ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq471 z am5d$ by section #bjb1 is fur!r am5d$ by add+ at ! end ! foll[+3 #dc4 ,enhanc$ disclosure requirem5ts ) respect to digital assets 7a7 ,disclosure in=mation ,) respect to a digital asset & any block*a9 sy/em to :i* ! digital asset relates1 ! in=mation describ$ "u ?is section is z foll[s3 7#a7 ,s\rce code ,! s\rce code = any block*a9 sy/em to :i* ! digital asset relates4 7#b7 ,transaction hi/ory ,a description ( ! /eps necess>y to indep5d5tly access1 se>*1 & v]ify ! transaction hi/ory ( any block*a9 sy/em to :i* ! digital asset relates4 7#c7 ,digital asset economics ,a description ( ! purpose ( any block*a9 sy/em to :i* ! digital asset relates & ! op]ation ( any su* block*a9 sy/em1 includ+-- 7,a7 in=mation expla9+ ! laun* & supply process1 includ+ ! numb] ( digital assets to be issu$ 9 an initial allocation1 ! total numb] ( digital assets to be creat$1 ! release s*$ule = ! digital assets1 & ! total numb] ( digital assets !n out/&+2 7,b7 in=mation on any applicable cons5sus me*anism or process = validat+ transactions1 me?od ( g5]at+ or m9+ digital assets1 & any process = burn+ or de/roy+ digital assets on ! block*a9 sy/em2 7,c7 an explanation ( gov]nance me*anisms = implem5t+ *anges to ! block*a9 sy/em or =m+ cons5sus among hold]s ( su* digital assets2 & 7,d7 suffici5t in=mation = a ?ird p>ty to create a tool = v]ify+ ! transaction hi/ory ( ! digital asset4 7#d7 ,plan ( developm5t ,! curr5t /ate & timel9e = ! developm5t ( any block*a9 sy/em to :i* ! digital asset relates1 %[+ h[ & :5 ! block*a9 sy/em int5ds or int5d$ to be consid]$ a functional network & dec5traliz$ network4 7#e7 ,developm5t disclosures ,a li/ ( all p]sons :o are relat$ p]sons or affiliat$ p]sons :o h be5 issu$ a unit ( a digital asset by a digital asset issu] or h a "r to a unit ( a digital asset f a digital asset issu]4 7#f7 ,risk factor disclosures ,:]e appropriate1 provide "u ! caption ,risk ,factors a description ( ! mat]ial risks surr\nd+ own]%ip ( a unit ( a digital asset4 ,?is discussion %all be organiz$ logically ) relevant head+s & ea* risk factor %all be set =? "u a subcaption t adequately describes ! risk4 7b7 ,c]tification ,) respect to a digital asset & any block*a9 sy/em to :i* ! digital asset relates1 ! in=mation requir$ to be made available "u ?is section has be5 c]tifi$ if ! digital asset issu]1 an affiliat$ p]son1 a dec5traliz$ gov]nance sy/em1 or a digital commodity ex*ange c]tifies on a qu>t]ly basis to ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission t ! in=mation is true & correct4 4 #bjd4 ,c]tification ( c]ta9 digital assets ,title ,i ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq471 z am5d$ by section #bjc1 is fur!r am5d$ by add+ at ! end ! foll[+3 #dd4 ,c]tification ( c]ta9 digital assets 7a7 ,c]tification ,any p]son may c]tify to ! ,securities & ,ex*ange ,commission t ! block*a9 sy/em to :i* a digital asset relates is a dec5traliz$ network4 7b7 ,fil+ requirem5ts ,a c]tification describ$ "u subsection 7a7 %all be fil$ ) ! ,commission1 & include-- 7#a7 in=mation reg>d+ ! p]son mak+ ! c]tification2 7#b7 a description ( ! block*a9 sy/em & ! digital asset :i* relates to su* block*a9 sy/em1 includ+-- 7,a7 ! op]ation ( ! block*a9 sy/em2 7,b7 ! functionality ( ! relat$ digital asset2 7,c7 any dec5traliz$ gov]nance sy/em :i* relates to ! block*a9 sy/em2 & 7,d7 ! process to develop cons5sus or agreem5t )9 su* dec5traliz$ gov]nance sy/em2 7#c7 a description ( ! developm5t ( ! block*a9 sy/em & ! digital asset :i* relates to ! block*a9 sy/em1 includ+-- 7,a7 a hi/ory ( ! developm5t ( ! block*a9 sy/em & ! digital asset :i* relates to su* block*a9 sy/em2 7,b7 a description ( ! issuance process = ! digital asset :i* relates to ! block*a9 sy/em2 7,c7 in=mation id5tify+ ! digital asset issu] ( ! digital asset :i* relates to ! block*a9 sy/em2 & 7,d7 a li/ ( any affiliat$ p]son relat$ to ! digital asset issu]2 7#d7 an analysis ( ! factors on :i* su* p]son bas$ ! c]tification t ! block*a9 sy/em is a dec5traliz$ network1 includ+-- 7,a7 an explanation ( ! protections & prohibitions available dur+ ! previ\s #ab mon?s aga9/ any "o p]son be+ able to-- 7i7 control or mat]ially alt] ! block*a9 sy/em2 7ii7 exclude any o!r p]son f us+ or p>ticipat+ on ! block*a9 sy/em2 & 7iii7 exclude any o!r p]son f p>ticipat+ 9 a dec5traliz$ gov]nance sy/em2 7,b7 in=mation reg>d+ ! b5eficial own]%ip ( ! digital asset :i* relates to su* block*a9 sy/em & ! di/ribution ( vot+ p[] 9 any dec5traliz$ gov]nance sy/em dur+ ! previ\s #ab mon?s2 7,c7 in=mation reg>d+ ! hi/ory ( upgrades to ! s\rce code = su* block*a9 sy/em dur+ ! previ\s #c mon?s1 includ+-- 7i7 a description ( any cons5sus or agreem5t process utiliz$ to process or approve *anges to ! s\rce code2 7ii7 a li/ ( any mat]ial *anges to ! s\rce code1 ! purpose & effect ( ! *anges1 & ! contributor ( ! *anges1 if kn[n2 & 7iii7 any *anges to ! s\rce code made by ! digital asset issu]1 a relat$ p]son1 or an affiliat$ p]son2 7,d7 in=mation reg>d+ any activities conduct$ to m>ket ! digital asset :i* relates to ! block*a9 sy/em dur+ ! previ\s #c mon?s by ! digital asset issu] or an affiliat$ p]son ( ! digital asset issu]2 & 7,e7 in=mation reg>d+ any issuance ( a unit ( ! digital asset :i* relates to su* block*a9 sy/em dur+ ! previ\s #ab mon?s2 & 7#e7 ) respect to a block*a9 sy/em = :i* a c]tification has previ\sly be5 rebutt$ "u ?is section or )drawn "u section #e;i7m7 ( ! ,commodity ,ex*ange ,act1 specific in=mation relat+ to ! analysis provid$ 9 subsection 7f77#b7 9 connection ) su* rebuttal or su* section #e;i7m77#a77;,c7 9 connection ) su* )drawal4 7c7 ,rebuttable presumption ,! ,commission may rebut a c]tification describ$ "u subsection 7a7 ) respect to a block*a9 sy/em if ! ,commission1 )9 #fj days ( receiv+ su* c]tification1 det]m9es t ! block*a9 sy/em is n a dec5traliz$ network4 7d7 ,c]tification review 7#a7 ,9 g5]al ,any block*a9 sy/em t relates to a digital asset = :i* a c]tification has be5 made "u subsection 7a7 %all be consid]$ a dec5traliz$ network #fj days aft] ! date on :i* ! ,commission receives a c]tification "u subsection 7a71 unless ! ,commission notifies ! p]son :o made ! c]tification )9 su* "t t ! ,commission is /ay+ ! c]tification due to-- 7,a7 an inadequate explanation by ! p]son mak+ ! c]tification2 or 7,b7 any novel or complex issues :i* require additional "t to consid]4 7#b7 ,public notice ,! ,commission %all make ! foll[+ available to ! public & provide a copy to ! ,commodity ,futures ,trad+ ,commission3 7,a7 ,ea* c]tification receiv$ "u subsection 7a74 7,b7 ,ea* /ay ( ! ,commission "u ?is section1 & ! reasons !re=e4 7,c7 ,any response f a p]son mak+ a c]tification "u subsection 7a7 to a /ay ( ! c]tification by ! ,commission4 7#c7 ,consolidation ,! ,commission may consolidate & treat z "o submission multiple c]tifications made "u subsection 7a7 = ! same block*a9 sy/em :i* relates to a digital asset :i* are receiv$ dur+ ! review p]iod provid$ "u ?is subsection4 7e7 ,/ay ( c]tification 7#a7 ,9 g5]al ,a notification by ! ,commission pursuant to subsection 7d77#a7 %all /ay ! c]tification once = up to an additional #abj days f ! date ( ! notification4 7#b7 ,public comm5t p]iod ,be=e ! end ( ! #fj-;day p]iod describ$ "u subsection 7d77#a71 ! ,commission may beg9 a public comm5t p]iod ( at lea/ #cj days 9 conjunction ) a /ay "u ?is section4 7f7 ,disposition ( c]tification 7#a7 ,9 g5]al ,a c]tification made "u subsection 7a7 %all-- 7,a7 become effective-- 7i7 ^u ! publication ( a notification f ! ,commission to ! p]son :o made ! c]tification t ! ,commission does n object to ! c]tification2 or 7ii7 at ! expiration ( ! c]tification review p]iod2 & 7,b7 n become effective ^u ! publication ( a notification f ! ,commission to ! p]son :o made ! c]tification t ! ,commission has rebutt$ ! c]tification4 7#b7 ,detail$ analysis includ$ ) rebuttal ,! ,commission %all include1 ) ea* publication ( a notification ( rebuttal describ$ "u p>agraph 7#a77;,b71 a detail$ analysis ( ! factors on :i* ! decision 0 bas$4 7g7 ,rec]tification ,) respect to a block*a9 sy/em = :i* a c]tification has be5 rebutt$ "u ?is section1 no p]son may make a c]tification "u subsection 7a7 ) respect to su* block*a9 sy/em dur+ ! #ij-;day p]iod beg9n+ on ! date ( su* rebuttal4 7h7 ,appeal ( rebuttal 7#a7 ,9 g5]al ,if a c]tification is rebutt$ "u ?is section1 ! p]son mak+ su* c]tification may appeal ! decision to ! ,unit$ ,/ates ,c\rt ( ,appeals = ! ,di/rict ( ,columbia1 n lat] ?an #fj days aft] ! notice ( rebuttal is made4 7#b7 ,review ,9 an appeal "u p>agraph 7#a71 ! c\rt %all h de novo review ( ! det]m9ation to rebut ! c]tification4 7i7 ,liability = provid+ false in=mation ,x %all be unlawful = any p]son to provide false in=mation 9 support ( a c]tification "u ?is section if su* p]son knew or reasonably %\ld h kn[n su* in=mation 0 false4 4 #bje4 ,effective date ,unless o!rwise provid$ 9 ?is title1 ?is title & ! am5dm5ts made by ?is title %all take effect #cfj days aft] ! date ( enactm5t ( ?is ,act1 except t1 to ! ext5t a provision ( ?is title requires a rulemak+1 ! provision %all take effect on ! lat] (-- 7#a7 #cfj days aft] ! date ( enactm5t ( ?is ,act2 or 7#b7 #fj days aft] ! publication 9 ! ,f$]al ,regi/] ( ! f9al rule implem5t+ ! provision4 ,,iii ,regi/ration = ,digital ,asset ,int]m$i>ies at ! ,securities & ,ex*ange ,commission #cja4 ,treatm5t ( digital commodities & o!r digital assets 7a7 ,securities ,act ( #aicc ,section #b7;a77#a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a77#a77 is am5d$ by add+ at ! end ! foll[+3 ,! t]m does n include a digital commodity or p]mitt$ paym5t /ableco944 7b7 ,securities ,ex*ange ,act ( #aicd ,section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a77 is am5d$-- 7#a7 9 p>agraph 7#a71 by add+ at ! end ! foll[+3 ,! t]m ex*ange does n include a digital asset trad+ sy/em1 block*a9 protocol1 or any p]son or gr\p ( p]sons solely because ( _! developm5t ( a block*a9 protocol42 7#b7 9 p>agraph 7#b71 by add+ at ! end ! foll[+3 ,a digital asset trad+ sy/em is n a facility ( an ex*ange42 7#c7 9 p>agraph 7#d77;,a71 by ins]t+ 1 o!r ?an re/rict$ digital assets1 aft] securities2 7#d7 9 p>agraph 7#e77;,a71 by ins]t+ re/rict$ digital assets or aft] n includ+2 7#e7 9 p>agraph 7#bf7 by ins]t+ 7o!r ?an a notice-regi/]$ digital asset cle>+ ag5cy7 aft] or regi/]$ cle>+ ag5cy2 7#f7 9 p>agraph 7#bh7 by ins]t+ 7o!r ?an a notice-regi/]$ digital asset cle>+ ag5cy7 aft] regi/]$ cle>+ ag5cy2 & 7#g7 9 p>agraph 7#aj71 by add+ at ! end ! foll[+3 ,subject to subsection 7i71 ! t]m does n include a digital commodity or p]mitt$ paym5t /ableco944 7c7 ,inve/m5t ,advis]s ,act ( #aidj ,section #bjb7;a7 ( ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#b7 is am5d$-- 7#a7 9 p>agraph 7#ah71 by add+ at ! end ! foll[+3 ,! t]m does n include a digital commodity or p]mitt$ paym5t /ableco942 7#b7 by r$esignat+ ! second p>agraph 7#bi7 7relat+ to commodity pools7 z p>agraph 7#ca72 7#c7 by add+ at ! end1 ! foll[+3 7#cb7 ,digital asset-relat$ t]ms ,! t]ms digital commodity & p]mitt$ paym5t /ableco9 h ! mean+ giv5 ^? t]ms1 respectively1 "u section #b7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a774 4 7d7 ,inve/m5t ,company ,act ( #aidj ,section #b7;a7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#b7 is am5d$-- 7#a7 9 p>agraph 7#cf71 by add+ at ! end ! foll[+3 ,! t]m does n include a digital commodity or p]mitt$ paym5t /ableco942 & 7#b7 by add+ at ! end1 ! foll[+3 7#ee7 ,digital asset-relat$ t]ms ,! t]ms digital commodity & p]mitt$ paym5t /ableco9 h ! mean+ giv5 ^? t]ms1 respectively1 "u section #b7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a774 4 #cjb4 ,anti-fraud au?ority ov] p]mitt$ paym5t /ableco9s 7a7 ,9 g5]al ,section #aj ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;j7 is am5d$-- 7#a7 by mov+ subsection 7c7 s z to appe> aft] subsection 7b72 7#b7 by designat+ ! undesignat$ matt] at ! end ( t section z subsection 7d72 & 7#c7 by add+ at ! end ! foll[+3 7e7 7#a7 ,rules promulgat$ "u subsection 7b7 t prohibit fraud1 manipulation1 or insid] trad+ 7b n rules impos+ or specify+ report+ or recordkeep+ requirem5ts1 proc$ures1 or /&>ds z prophylactic measures aga9/ fraud1 manipulation1 or insid] trad+71 & judicial prec$5ts decid$ "u subsection 7b7 & rules promulgat$ !reund] t prohibit fraud1 manipulation1 or insid] trad+1 %all apply to p]mitt$ paym5t /ableco9s ) respect to ^? circum/ances 9 :i* ! p]mitt$ paym5t /ableco9s are brok]$1 trad$1 or cu/odi$ by a brok]1 deal]1 digital asset brok]1 or digital asset deal] or ?r\gh an alt]native trad+ sy/em or digital asset trad+ plat=m to ! same ext5t z !y apply to securities4 7#b7 ,judicial prec$5ts decid$ "u section #ag7;a7 ( ! ,securities ,act ( #aicc & sections #i1 #ae1 #af1 #bj1 & #ba;,a ( ?is title1 & judicial prec$5ts decid$ "u applicable rules promulgat$ "u su* sections1 %all apply to p]mitt$ paym5t /ableco9s ) respect to ^? circum/ances 9 :i* ! p]mitt$ paym5t /ableco9s are brok]$1 trad$1 or cu/odi$ by a digital asset brok]1 digital asset deal]1 or digital asset trad+ sy/em to ! same ext5t z !y apply to securities4 7#c7 ,no?+ 9 ?is subsection may be con/ru$ to provide ! ,commission au?ority to make any rule1 regulation1 requirem5t1 or obligation on a p]mitt$ paym5t /ableco9 issu] reg>d+ ! op]ations ( a p]mitt$ paym5t /ableco9 issu] or a p]mitt$ paym5t /ableco91 includ+ any aspect ( ! op]ation ( a p]mitt$ paym5t /ableco9 issu] or p]mitt$ paym5t /ableco94 4 7b7 ,treatm5t ( p]mitt$ paym5t /ableco9s ,title ,i ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq471 z am5d$ by section #cjd1 is am5d$ by ins]t+ aft] section #f;,b ! foll[+ #f;,c4 ,treatm5t ( transactions 9 p]mitt$ paym5t /ableco9s 7a7 ,au?ority to brok]1 trade1 & cu/ody p]mitt$ paym5t /ableco9s ,p]mitt$ paym5t /ableco9s may be brok]$1 trad$1 or cu/odi$ by a brok]1 deal]1 digital asset brok]1 or digital asset deal] or ?r\gh an alt]native trad+ sy/em or digital asset trad+ plat=m4 7b7 ,commission jurisdiction ,! ,commission %all h jurisdiction ov] a transaction 9 a p]mitt$ paym5t /ableco9 ) respect to ^? circum/ances 9 :i* a p]mitt$ paym5t /ableco9 is brok]$1 trad$1 or cu/odi$-- 7#a7 by a brok]1 deal]1 digital asset brok]1 or digital asset deal]2 or 7#b7 ?r\gh an alt]native trad+ sy/em or digital asset trad+ sy/em4 7c7 ,limitation ,subsection 7b7 %all only apply to a transaction describ$ 9 subsection 7b7 = ! purposes ( regulat+ ! (f]1 execution1 solicitation1 or acceptance ( a p]mitt$ paym5t /ableco9 9 ^? circum/ances 9 :i* ! p]mitt$ paym5t /ableco9 is brok]$1 trad$1 or cu/odi$-- 7#a7 by a brok]1 deal]1 digital asset brok]1 or digital asset deal]2 or 7#b7 ?r\gh an alt]native trad+ sy/em or digital asset trad+ sy/em4 4 #cjc4 ,regi/ration ( digital asset trad+ sy/ems ,section #f ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;f7 is am5d$ by add+ at ! end ! foll[+3 7m7 ,digital asset trad+ sy/em 7#a7 ,9 g5]al ,x %all be unlawful = any digital asset trad+ sy/em to make use ( ! mails or any means or in/rum5tality ( int]/ate comm]ce )9 or subject to ! jurisdiction ( ! ,unit$ ,/ates to effect any transaction 9 a re/rict$ digital asset1 unless su* digital asset trad+ sy/em is regi/]$ ) ! ,commission4 7#b7 ,application ,a p]son desir+ to regi/] z a digital asset trad+ sy/em %all submit to ! ,commission an application 9 su* =m & conta9+ su* in=mation z ! ,commission may require = ! purpose ( mak+ ! det]m9ations requir$ = approval4 7#c7 ,exemptions ,a digital asset trad+ sy/em t (f]s or seeks to (f] at lea/ "o re/rict$ digital asset %all n be requir$ to regi/] "u ?is section 7& subp>agraph 7,a7 %all n apply to su* digital asset trad+ sy/em7 if ! trad+ sy/em satisfies any exemption conta9$ on a li/ ( exemptions prep>$ by ! ,commission to be z close z practicable to ^? exemptions set =? 9 section #bdj4c;b-#af7;b7 ( title #ag1 ,code ( ,f$]al ,regulations1 applicable to ! def9ition ( an ex*ange4 7#d7 ,additional regi/rations 7,a7 ,) ! commission 7i7 ,9 g5]al ,a regi/]$ digital asset trad+ sy/em %all be p]mitt$ to ma9ta9 any o!r regi/ration ) ! ,commission relat+ to ! o!r activities ( ! regi/]$ digital asset trad+ sy/em1 includ+ z a-- 7,i7 national securities ex*ange2 7,,ii7 brok]2 7,,iii7 deal]2 7,,iv7 alt]native trad+ sy/em1 pursuant to "p #bdb ( title #ag1 ,code ( ,f$]al ,regulations1 z 9 effect on ! date ( enactm5t ( ?is subsection2 7,v7 digital asset brok]2 or 7,,vi7 digital asset deal]4 7ii7 ,rulemak+ ,! ,commission %all prescribe rules = an entity ) multiple regi/rations describ$ "u subp>agraph 7,a7 to exempt ! entity f duplicative1 conflict+1 or unduly burd5some provisions ( ?is ,act & ! rules "u ?is ,act1 to ! ext5t su* an exemption w\ld protect inve/ors1 ma9ta9 fair1 ord]ly1 & effici5t m>kets1 & facilitate capital =mation4 7,b7 ,) ! ,commodity ,futures ,trad+ ,commission ,a regi/]$ digital asset trad+ sy/em %all be p]mitt$ to ma9ta9 a regi/ration ) ! ,commodity ,futures ,trad+ ,commission z a digital commodity ex*ange to (f] contracts ( sale = digital commodities4 4 #cjd4 ,requirem5ts = digital asset trad+ sy/ems ,title ,i ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 is am5d$ by ins]t+ aft] section #f ! foll[+3 #f;,a4 ,requirem5ts = digital asset trad+ sy/ems 7a7 ,hold+ ( cu/om] assets 7#a7 ,9 g5]al ,a digital asset trad+ sy/em %all hold cu/om] money1 assets1 & prop]ty 9 a mann] to m9imize ! risk ( loss to ! cu/om] or unreasonable delay 9 ! access to ! money1 assets1 & prop]ty ( ! cu/om]4 7#b7 ,qualifi$ digital asset cu/odian requir$ ,a digital asset trad+ sy/em %all hold cu/om] re/rict$ digital assets describ$ 9 p>agraph 7#a7 ) a qualifi$ digital asset cu/odian describ$ "u section #f;,b4 7#c7 ,cu/ody prohibit$ ,a digital asset trad+ sy/em1 9 its capacity z su*1 may n hold cu/ody ( cu/om] money1 assets1 or prop]ty4 7b7 ,rulemak+ ,! ,commission %all prescribe rules = digital asset trad+ sy/ems relat+ to ! foll[+3 7#a7 ,notice ,notice to ! ,commission ( ! initial op]ation ( a digital asset trad+ sy/em or any mat]ial *ange to ! op]ation ( ! digital asset trad+ sy/em4 7#b7 ,ord] display ,! ?re%olds at :i* a digital asset trad+ sy/em is requir$ to display ! ord]s ( ! digital asset trad+ sy/em1 & ! mann] ( su* display4 7#c7 ,fair access ,! ?re%olds at :i* a digital asset trad+ sy/em is requir$ to h policies reg>d+ provid+ fair access to ! digital asset trad+ sy/em4 7#d7 ,capacity1 integrity1 & security ( automat$ sy/ems ,policies & proc$ures reasonably design$ to ensure ! capacity1 integrity1 & security ( ! digital asset trad+ sy/em1 tak+ into acc\nt ! p>ticul> nature ( digital asset trad+ sy/ems4 7#e7 ,exam9ations1 inspections1 & inve/igations ,! exam9ation & inspection ( ! premises1 sy/ems1 & records ( ! digital asset trad+ sy/em by ! ,commission or by a self-regulatory organization ( :i* su* digital asset trad+ sy/em is a memb]4 7#f7 ,recordkeep+ ,! mak+1 keep+ curr5t1 & pres]vation ( records relat$ to trad+ activity on ! digital asset trad+ sy/em4 7#g7 ,report+ ,! report+ ( transactions 9 digital assets t occur ?r\gh ! digital asset trad+ sy/em4 7#h7 ,proc$ures ,! e/abli%m5t ( adequate writt5 safegu>ds & writt5 proc$ures to protect confid5tial trad+ in=mation4 7c7 ,"n requirem5t ,a digital asset trad+ sy/em may n use ! ^w ex*ange 9 ! "n ( ! digital asset trad+ sy/em1 unless ! digital asset trad+ sy/em-- 7#a7 is op]at$ by a regi/]$ national securities ex*ange2 & 7#b7 is cle>ly indicat$ z be+ provid$ outside ( ! sy/em's capacity z a national securities ex*ange4 7d7 ,treatm5t "u ! ,bank ,secrecy ,act ,a digital asset trad+ sy/em %all be treat$ z a f9ancial in/itution = purposes ( ! ,bank ,secrecy ,act4 #f;,b4 ,requirem5ts = qualifi$ digital asset cu/odians 7a7 ,9 g5]al ,a digital asset cu/odian is a qualifi$ digital asset cu/odian if ! digital asset cu/odian complies ) ! requirem5ts ( ?is section4 7b7 ,sup]vision requirem5t 7#a7 ,9 g5]al ,a digital asset cu/odian %all-- 7,a7 be subject to adequate sup]vision & appropriate regulation by-- 7i7 ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em2 7ii7 ! ,comptroll] ( ! ,curr5cy2 7iii7 ! ,f$]al ,deposit ,insurance ,corporation2 7iv7 ! ,commodity ,futures ,trad+ ,commission2 7v7 ! ,securities & ,ex*ange ,commission2 7vi7 a ,/ate bank sup]visor 7)9 ! mean+ ( section #c ( ! ,f$]al ,deposit ,insurance ,act72 or 7vii7 an appropriate =eign gov]nm5tal au?ority 9 ! home c\ntry ( ! digital asset cu/odian2 & 7,b7 n be prohibit$ by ! applicable sup]visor f engag+ 9 an activity ) respect to ! cu/ody & safekeep+ ( digital assets4 7#b7 ,adequate sup]vision & appropriate regulation ,= purposes ( p>agraph 7#a71 ! t]ms adequate sup]vision & appropriate regulation mean su* m9imum /&>ds = sup]vision & regulation z are reasonably necess>y to protect ! digital assets ( cu/om]s ( an entity regi/]$ ) ! ,commission1 includ+ m9imum /&>ds relat+ to-- 7,a7 accessibility ( cu/om] assets2 7,b7 f9ancial res\rces2 7,c7 risk managem5t requirem5ts2 7,d7 gov]nance arrangem5ts2 7,e7 fitness /&>ds = (fic]s & directors2 7,f7 recordkeep+2 7,g7 in=mation %>+2 & 7,h7 conflicts ( int]e/4 7#c7 ,deem$ compliance ,a digital asset cu/odian %all be deem$ to be subject to adequate sup]vision & appropriate regulation1 if-- 7,a7 x is sup]vis$ by an ag5cy describ$ "u any ( clauses 7i7 ?r\gh 7v7 ( p>agraph 7#a77;,a72 or 7,b7 x is a bank sup]vis$ by a ,/ate bank sup]visor 7)9 ! mean+ ( section #c ( ! ,f$]al ,deposit ,insurance ,act74 7#d7 ,rulemak+ ) respect to def9itions ,= purposes ( ?is subsection1 ! ,commission may1 by rule1 fur!r def9e ! t]ms adequate sup]vision & appropriate regulation z necess>y 9 ! public int]e/1 z appropriate = ! protection ( inve/ors1 & consi/5t ) ! purposes ( ?is ,act4 7c7 ,in=mation %>+ ,ea* digital asset cu/odian %all p]iodically %>e ( in=mation ) ! ,commission1 z ! ,commission det]m9es by rule to be reasonably necess>y to effectuate any ( ! provisions1 or to accompli% any ( ! purposes1 ( ?is ,act4 4 #cje4 ,regi/ration ( digital asset brok]s & digital asset deal]s ,! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 is am5d$ by ins]t+ aft] section #ae;,g ! foll[+3 #ae;,h4 ,regi/ration ( digital asset brok]s & digital asset deal]s 7a7 ,regi/ration 7#a7 ,9 g5]al ,x %all be unlawful = any digital asset brok] or digital asset deal] 7o!r ?an a natural p]son associat$ ) a digital asset brok] or digital asset deal]1 & o!r ?an su* a digital asset brok] or digital asset deal] ^: bus9ess is exclusively intra/ate & :o does n make use ( any facility ( a digital asset trad+ plat=m7 to make use ( ! mails or any means or in/rum5tality ( int]/ate comm]ce to effect any transactions 91 or to induce or attempt to induce ! pur*ase or sale (1 any re/rict$ digital asset unless su* digital asset brok] or digital asset deal] is regi/]$ 9 accordance ) ?is section4 7#b7 ,application ,a p]son desir+ to regi/] z a digital asset brok] or digital asset deal] %all submit to ! ,commission an application 9 su* =m & conta9+ su* in=mation z ! ,commission may require = ! purpose ( mak+ ! det]m9ations requir$ = approval4 7b7 ,national securities association memb]%ip 7#a7 ,9 g5]al ,a digital asset brok] or digital asset deal] may n regi/] or ma9ta9 regi/ration "u ?is section unless su* digital asset brok] or digital asset deal] is a memb] ( a national securities association regi/]$ "u section #ae;,a4 7#b7 ,treatm5t "u section #ae;,a 7,a7 ,9 g5]al ,= purposes ( section #ae;,a-- 7i7 ! t]m brok] includes a digital asset brok]2 7ii7 ! t]m deal] includes a digital asset deal]2 & 7iii7 ! t]m security includes a re/rict$ digital asset4 7,b7 ,cl>ification ,not)/&+ subp>agraph 7,a71 a national securities association %all only exam9e = & en=ce aga9/ a digital asset brok] & digital asset deal] rules ( su* national securities association writt5 specifically = digital asset brok]s & a digital asset deal]s4 7#c7 ,exception ,a digital asset brok] or digital asset deal] may regi/] "u ?is section )\t obta9+ memb]%ip 9 a national securities association until ! end ( ! #cfj-;day p]iod beg9n+ on ! date ! fir/ national securities association adopts rules to admit digital asset brok]s or digital asset deal]s z memb]s4 7c7 ,additional regi/rations ) ! ,commission 7#a7 ,9 g5]al ,a regi/]$ digital asset brok] or regi/]$ digital asset deal] %all be p]mitt$ to ma9ta9 any o!r regi/ration ) ! ,commission relat+ to ! o!r activities ( ! regi/]$ digital asset brok] or regi/]$ digital asset deal]1 includ+ z-- 7,a7 a national securities ex*ange2 7,b7 a brok]2 7,c7 a deal]2 7,d7 an alt]native trad+ sy/em1 pursuant to "p #bdb ( title #ag1 ,code ( ,f$]al ,regulations1 z 9 effect on ! date ( enactm5t ( ?is section2 or 7,e7 a digital asset trad+ sy/em4 7#b7 ,rulemak+ ,! ,commission %all prescribe rules = an entity ) multiple regi/rations describ$ "u p>agraph 7#a7 to exempt ! entity f duplicative1 conflict+1 or unduly burd5some provisions ( ?is ,act & ! rules "u ?is ,act1 to ! ext5t su* an exemption w\ld protect inve/ors1 ma9ta9 fair1 ord]ly1 & effici5t m>kets1 & facilitate capital =mation4 7#c7 ,self-regulatory organizations ,! ,commission %all require any self-regulatory organization ) a regi/]$ digital asset brok] or regi/]$ digital asset deal] z a memb] to provide su* rules z may be necess>y to fur!r compliance ) ?is section1 protect inve/ors1 ma9ta9 fair1 ord]ly1 & effici5t m>kets1 & facilitate capital =mation4 7d7 ,additional regi/rations ) ! ,commodity ,futures ,trad+ ,commission ,a regi/]$ digital asset brok] or regi/]$ digital asset deal] %all be p]mitt$ to ma9ta9 a regi/ration ) ! ,commodity ,futures ,trad+ ,commission z a digital commodity brok] or digital commodity deal]1 to li/ or trade contracts ( sale = digital commodities4 4 #cjf4 ,requirem5ts ( digital asset brok]s & digital asset deal]s ,section #ae;,h ( ! ,securities ,ex*ange ,act ( #aicd1 z add$ by section #cje1 is am5d$ by add+ at ! end ! foll[+3 7e7 ,anti-fraud ,no digital asset brok] or digital asset deal] %all make use ( ! mails or any means or in/rum5tality ( int]/ate comm]ce to effect any transaction 91 or to induce or attempt to induce ! pur*ase or sale (1 any re/rict$ digital asset by means ( any manipulative1 deceptive1 or o!r fraudul5t device or contrivance4 7f7 ,hold+ ( cu/om] assets 7#a7 ,9 g5]al ,a digital asset brok] or digital asset deal] %all hold cu/om] money1 assets1 & prop]ty 9 a mann] to m9imize ! risk ( loss to ! cu/om] or unreasonable delay 9 ! access to ! money1 assets1 & prop]ty ( ! cu/om]4 7#b7 ,qualifi$ digital asset cu/odian requir$ ,a digital asset brok] or digital asset deal] %all hold cu/om] re/rict$ digital assets describ$ 9 p>agraph 7#a7 ) a qualifi$ digital asset cu/odian describ$ "u section #f;,b4 7#c7 ,segregation ( funds 7,a7 ,9 g5]al ,a digital asset brok] or digital asset deal] %all treat & deal ) all money1 assets1 & prop]ty held = a cu/om] ( ! digital asset brok] or digital asset deal]1 or t accrues to a cu/om] z a result ( trad+ 9 re/rict$ digital assets1 z belong+ to ! cu/om]4 7,b7 ,comm+l+ prohibit$ ,money1 assets1 & prop]ty ( a cu/om] describ$ 9 subp>agraph 7,a7 %all be sep>ately acc\nt$ = & %all n be comm+l$ ) ! funds ( ! digital asset brok] or digital asset deal] or be us$ to m>g91 secure1 or gu>antee any trades ( any p]son o!r ?an ! cu/om] ( ! digital asset brok] or digital asset deal] = :om ! same are held4 7#d7 ,exceptions 7,a7 ,use ( funds 7i7 ,9 g5]al ,not)/&+ p>agraph 7#c71 money1 assets1 & prop]ty ( cu/om]s ( a digital asset brok] or digital asset deal] describ$ 9 p>agraph 7#c7 may be ma9ta9$ & deposit$ 9 ! same acc\nt or acc\nts ) any bank1 tru/ company1 or qualifi$ digital asset cu/odian describ$ "u section #f;,b1 if ! money1 assets1 & prop]ty rema9 segregat$ f ! money1 assets1 & prop]ty ( ! digital asset brok] or digital asset deal]4 7ii7 ,)drawal ,not)/&+ p>agraph 7#c71 su* %>e ( ! money1 assets1 & prop]ty describ$ 9 p>agraph 7#c7 z 9 ! normal c\rse ( bus9ess %all be necess>y to transf]1 adju/1 or settle a re/rict$ digital asset transaction pursuant to a cu/om]'s in/ruction 7/&+ or o!rwise7 may be )drawn & appli$ to su* purposes1 includ+ ! )drawal & paym5t ( commissions1 brok]age1 int]e/1 taxes1 /orage1 & o!r *>ges lawfully accru+ 9 connection ) a re/rict$ digital asset transaction4 7iii7 ,commission action ,9 accordance ) su* t]ms & conditions z ! ,commission may prescribe by rule1 regulation1 or ord]1 any money1 assets1 or prop]ty ( a cu/om] ( a digital asset brok] or digital asset deal] describ$ 9 p>agraph 7#c7 may be comm+l$ & deposit$ z provid$ 9 ?is section ) any o!r money1 assets1 or prop]ty receiv$ by ! digital asset brok] or digital asset deal] & requir$ by ! ,commission to be sep>ately acc\nt$ = & treat$ & dealt ) z belong+ to ! cu/om] ( ! digital asset brok] or digital asset deal]4 7,b7 ,p>ticipation 9 block*a9 s]vices 7i7 ,9 g5]al ,a cu/om] %all h ! "r to waive ! re/rictions 9 p>agraph 7#c7 = any unit ( a digital asset to be us$ "u clause 7ii71 by affirmatively elect+1 9 writ+ to ! digital asset brok] or digital asset deal]1 to waive ! re/rictions4 7ii7 ,use ( funds ,cu/om] digital assets remov$ f segregation "u clause 7i7 may be pool$ & us$ by ! digital asset brok] or digital asset deal] or its designee to provide a block*a9 s]vice = a block*a9 sy/em to :i* ! unit ( ! digital asset remov$ f segregation "u clause 7i7 relates4 7iii7 ,limitations ,! ,commission may1 by rule1 e/abli% notice & disclosure requirem5ts1 & any o!r limitations & rules relat$ to ! waiv+ ( any re/rictions "u ?is subp>agraph t are reasonably necess>y to protect cu/om]s4 7iv7 ,block*a9 s]vice def9$ ,9 ?is subp>agraph1 ! t]m block*a9 s]vice means any activity relat+ to validat+ transactions on a block*a9 sy/em1 provid+ security = a block*a9 sy/em1 or o!r simil> activity requir$ = ! ongo+ op]ation ( a block*a9 sy/em4 7#e7 ,fur!r ,limitations ,no p]son %all treat or deal ) a re/rict$ digital asset held on behalf ( any cu/om] pursuant to p>agraph 7#c7 by utiliz+ any unit ( su* re/rict$ digital asset to p>ticipate 9 a block*a9 s]vice 7z def9$ 9 p>agraph 7#d77;,b77iv7 or a dec5traliz$ gov]nance sy/em associat$ ) ! re/rict$ digital asset or ! block*a9 sy/em to :i* ! re/rict$ digital asset relates 9 any mann] o!r ?an t :i* is expressly direct$ by ! cu/om] f :i* su* unit ( a re/rict$ digital asset 0 receiv$4 7g7 ,capital requirem5ts 7#a7 ,9 g5]al ,ea* regi/]$ digital asset brok] & regi/]$ digital asset deal] %all meet su* m9imum capital requirem5ts z ! ,commission may prescribe to ensure t ! digital asset brok] or digital asset deal] is able to-- 7,a7 conduct an ord]ly w9d-d[n ( ! activities ( ! digital asset brok] or digital asset deal]2 & 7,b7 fulfill ! cu/om] obligations ( ! digital asset brok] or digital asset deal]4 7#b7 ,calculation ,= purposes ( any ,commission rule or ord] adopt$ "u ?is section or any int]pretation !re( regulat+ a digital asset brok] or digital asset deal]'s f9ancial responsibility obligations & capital requirem5ts1 a regi/]$ digital asset brok] or digital asset deal] t ma9ta9s control ( cu/om] digital assets 9 a mann] t satisfies ! rules issu$ by ! ,commission "u subsection 7f77#b7 %all n be requir$ to include ! value ( su* digital assets z assets or liabilities ( ! digital asset brok] or digital asset deal]4 7#c7 ,coord9ation ( capital requirem5ts 7,a7 ,commission rule ,! ,commission %all1 by rule1 provide appropriate (fsets to any applicable capital requirem5t = a p]son ) multiple regi/rations1 includ+ z a brok]1 deal]1 digital asset brok]1 or digital asset deal]4 7,b7 ,jo9t rule ,! ,commission & ! ,commodity ,futures ,trad+ ,commission %all jo9tly1 by rule1 provide appropriate (fsets to any applicable capital requirem5t = a p]son ) multiple regi/rations1 includ+ z a digital asset brok]1 digital asset deal]1 digital asset trad+ sy/em1 digital commodity brok]1 digital commodity deal]1 or digital commodity ex*ange4 7h7 ,report+ & recordkeep+ ,ea* regi/]$ digital asset brok] & digital asset deal]-- 7#a7 %all make su* reports z are requir$ by ! ,commission by rule or regulation reg>d+ ! transactions1 positions1 & f9ancial condition ( ! digital asset brok] or digital asset deal]2 7#b7 %all keep books & records 9 su* =m & mann] & = su* p]iod z may be prescrib$ by ! ,commission by rule or regulation2 & 7#c7 %all keep ! books & records op5 to inspection & exam9ation by any repres5tative ( ! ,commission4 7i7 ,treatm5t "u ! ,bank ,secrecy ,act ,a digital asset brok] & a digital asset deal] %all be treat$ z a f9ancial in/itution = purposes ( ! ,bank ,secrecy ,act4 4 #cjg4 ,rules relat$ to conflicts ( int]e/ ,! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 is am5d$ by ins]t+ aft] section #aj;,d ! foll[+3 #aj;,e4 ,conflicts ( int]e/ relat$ to digital assets ,ea* regi/]$ digital asset trad+ sy/em1 regi/]$ digital asset brok]1 regi/]$ digital asset deal]1 & notice-regi/]$ digital asset cle>+ ag5cy %all e/abli%1 ma9ta91 & en=ce writt5 policies & proc$ures reasonably design$1 tak+ into consid]ation ! nature ( su* p]son's bus9ess1 to mitigate any conflicts ( int]e/ & transactions or arrangem5ts ) affiliates4 4 #cjh4 ,treatm5t ( c]ta9 digital assets 9 connection ) f$]ally regulat$ int]m$i>ies ,section #ah7;b7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #ggr7b77 is am5d$ by add+ at ! end ! foll[+3 7#e7 ,exemption = c]ta9 digital assets 9 connection ) f$]ally regulat$ int]m$i>ies ,a re/rict$ digital asset is a cov]$ security ) respect to a transaction t is exempt f regi/ration "u ?is ,act :5-- 7,a7 x is brok]$1 trad$1 cu/odi$1 or cle>$ by a digital asset brok] or digital asset deal] regi/]$ "u section #ae;,h ( ! ,securities ,ex*ange ,act ( #aicd2 or 7,b7 trad$ ?r\gh a digital asset trad+ sy/em4 4 #cji4 ,exclusion = ancill>y activities ,! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq471 z am5d$ by section #cje1 is fur!r am5d$ by ins]t+ aft] section #ae;,h ! foll[+3 #ae;,i4 ,exclusion = ancill>y activities 7a7 ,9 g5]al ,not)/&+ any o!r provision ( ?is ,act1 a p]son %all n be subject to ?is ,act & ! regulations !reund] solely bas$ on ! p]son und]tak+ any ancill>y activities4 7b7 ,exceptions ,subsection 7a7 %all n be con/ru$ to apply to ! anti-fraud & anti-manipulation au?orities ( ! ,commission4 7c7 ,ancill>y activities def9$ ,9 ?is section1 ! t]m ancill>y activities means any ( ! foll[+ activities relat$ to ! op]ation ( a block*a9 sy/em3 7#a7 ,compil+ network transactions1 op]at+ or p>ticipat+ 9 a liquidity pool1 relay+1 se>*+1 sequ5c+1 validat+1 or act+ 9 a simil> capacity ) respect to a digital asset4 7#b7 ,provid+ computational "w1 op]at+ a node1 or procur+1 (f]+1 or utiliz+ network b&wid?1 or o!r simil> incid5tal s]vices ) respect to a digital asset4 7#c7 ,provid+ a us]-int]face t enables a us] to read & access data ab\t a block*a9 sy/em1 s5d messages1 or o!rwise int]act ) a block*a9 sy/em4 7#d7 ,develop+1 publi%+1 con/itut+1 adm9i/]+1 ma9ta9+1 or o!rwise di/ribut+ a block*a9 sy/em4 7#e7 ,develop+1 publi%+1 con/itut+1 adm9i/]+1 ma9ta9+1 or o!rwise di/ribut+ s(tw>e or sy/ems t create or deploy a h>dw>e or s(tw>e wallet or o!r sy/em facilitat+ an individual us]'s own p]sonal ability to keep1 safegu>d1 or cu/ody ! us]'s digital assets or relat$ private keys4 4 #caj4 ,regi/ration & requirem5ts = notice-regi/]$ digital asset cle>+ ag5cies ,section #ag;,a7b7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #ghq-#a7;b77 is am5d$-- 7#a7 9 subsection 7#a71 by ins]t+ 7o!r ?an a notice-regi/]$ digital asset cle>+ ag5cy7 aft] unlawful = any cle>+ ag5cy2 & 7#b7 by add+ at ! end ! foll[+3 7#i7 ,regi/ration & requirem5ts = notice-regi/]$ digital asset cle>+ ag5cy 7,a7 ,eligibility ,a p]son may regi/] ) ! ,commission z a notice-regi/]$ digital asset cle>+ ag5cy if ! p]son-- 7i7 is o!rwise regi/]$ z a digital asset brok] or digital asset deal] ) ! ,commission & is engag+ 9 a bus9ess involv+ re/rict$ digital assets1 9 compliance ) ,commission rules pursuant to section #ae;,h7f72 or 7ii7 is a bank engag+ 9 a bus9ess involv+ digital assets1 9 compliance ) applicable bank+ law & regulation relat+ to ! cu/ody & safekeep+ ( su* assets4 7,b7 ,regi/ration ,a p]son may regi/] ) ! ,commission z a notice-regi/]$ digital asset cle>+ ag5cy by provid+ ! ,commission ) notice ( ! activities ( ! p]son or plann$ activities 9 su* =m z ! ,commission det]m9es appropriate4 ,su* notice %all include in=mation describ+ ! p]son's policies & proc$ures relat+ to ! hold+ ( cu/om] assets4 7,c7 ,rulemak+ ,! ,commission may adopt rules1 :i* may n take effect until at lea/ #cfj days foll[+ ! date ( enactm5t ( ?is p>agraph1 ) reg>d to ! activities ( notice-regi/]$ digital asset cle>+ ag5cies1 tak+ into acc\nt ! nature ( re/rict$ digital assets4 4 #caa4 ,treatm5t ( cu/ody activities by bank+ in/itutions 7a7 ,treatm5t ( cu/ody activities ,! appropriate ,f$]al bank+ ag5cy 7z def9$ "u section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac771 ! ,national ,cr$it ,union ,adm9i/ration 79 ! case ( a cr$it union71 & ! ,securities & ,ex*ange ,commission may n require1 or take sup]visory action t w\ld cause1 a depository in/itution1 national bank1 ,f$]al cr$it union1 ,/ate cr$it union1 or tru/ company1 or any affiliate 7z su* t]m is def9$ "u section #b ( ! ,bank ,hold+ ,company ,act ( #aief7 !re(-- 7#a7 to include assets held 9 cu/ody or safekeep+1 or ! assets associat$ ) a cryptographic key held 9 cu/ody or safekeep+1 z a liability on su* in/itution's f9ancial /atem5t or balance %eet1 except t ca% held = a ?ird p>ty by su* in/itution t is comm+l$ ) ! g5]al assets ( su* in/itution may be reflect$ z a liability on a f9ancial /atem5t or balance %eet2 7#b7 to hold additional regulatory capital aga9/ assets 9 cu/ody or safekeep+1 or ! assets associat$ ) a cryptographic key held 9 cu/ody or safekeep+1 except z necess>y to mitigate aga9/ op]ational risks inh]5t ) ! cu/ody or safekeep+ s]vices1 z det]m9$ by-- 7,a7 ! appropriate ,f$]al bank+ ag5cy2 7,b7 ! ,national ,cr$it ,union ,adm9i/ration 79 ! case ( a cr$it union72 7,c7 a ,/ate bank sup]visor 7z def9$ "u section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac772 or 7,d7 a ,/ate cr$it union sup]visor 7z def9$ "u section #fjjc ( ! ,anti-,money ,laund]+ ,act ( #bjbj72 7#c7 to recognize a liability = any obligations relat$ to activities or s]vices p]=m$ = digital assets ) respect to :i* su* in/itution does n h b5eficial own]%ip if t liability w\ld exce$ ! exp5se recogniz$ 9 ! income /atem5t z a result ( ! correspond+ obligation4 7b7 ,def9itions ,9 ?is section3 7#a7 ,depository in/itution ,! t]m depository in/itution has ! mean+ giv5 t t]m "u section #c ( ! ,f$]al ,deposit ,insurance ,act4 7#b7 ,cr$it union t]ms ,! t]ms ,f$]al cr$it union & ,/ate cr$it union h ! mean+ giv5 ^? t]ms1 respectively1 "u section #aja ( ! ,f$]al ,cr$it ,union ,act4 #cab4 ,effective date2 adm9i/ration 7a7 ,9 g5]al ,except z o!rwise provid$ "u ?is title1 ?is title & ! am5dm5ts made by ?is title %all take effect #cfj days aft] ! date ( enactm5t ( ?is ,act1 except t1 to ! ext5t a provision ( ?is title requires a rulemak+1 ! provision %all take effect on ! lat] (-- 7#a7 #cfj days aft] ! date ( enactm5t ( ?is ,act2 or 7#b7 #fj days aft] ! publication 9 ! ,f$]al ,regi/] ( ! f9al rule implem5t+ ! provision4 7b7 ,limitation ,dur+ fiscal ye>s #bjbd1 #bjbe1 & #bjbf1 regi/ration fees collect$ by ! ,securities & ,ex*ange ,commission %all n be deposit$ 9 ! ,securities & ,ex*ange ,commission ,res]ve ,fund4 ,,iv ,regi/ration = ,digital ,asset ,int]m$i>ies at ! ,commodity ,futures ,trad+ ,commission #dja4 ,commission jurisdiction ov] digital commodity transactions 7a7 ,9 g5]al ,section #b7;a77#a7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #b7;a77#a77 is am5d$ by add+ at ! end ! foll[+3 7,j7 ,except z expressly provid$ 9 ?is ,act1 no?+ 9 ! ,f9ancial ,innovation & ,te*nology = ! #ba/ ,c5tury ,act %all affect or apply to1 or be int]pret$ to affect or apply to-- 7i7 any agreem5t1 contract1 or transaction t is subject to regulation "u ?is ,act z-- 7,i7 a contract ( sale ( a commodity = future deliv]y or an option on su* a contract2 7,,ii7 a swap2 7,,iii7 a security futures product2 7,,iv7 an option au?oriz$ "u section #d;c ( ?is ,act2 7,v7 an agreem5t1 contract1 or transaction describ$ 9 subp>agraph 7,c77i7 or 7,d77i7 ( subsection 7c77#b7 ( ?is section2 or 7,,vi7 a lev]age transaction au?oriz$ "u section #ai ( ?is ,act2 or 7ii7 ! activities ( any p]son ) respect to any su* an agreem5t1 contract1 or transaction4 4 7b7 ,9 g5]al ,section #b7;c77#a7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #b7;c77#a77 is am5d$-- 7#a7 9 subp>agraph 7,f71 by /rik+ or at ! end2 7#b7 9 subp>agraph 7,g71 by /rik+ ! p]iod & ins]t+ 2 or2 & 7#c7 by add+ at ! end ! foll[+3 7,h7 p]mitt$ paym5t /ableco9s4 4 7c7 ,9 g5]al ,section #b7;c77#b7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #b7;c77#b77 is am5d$-- 7#a7 9 subp>agraph 7,d77ii7-- 7,a7 9 subclause 7,,iii71 9 ! matt] t prec$es item 7aa71 by ins]t+ ( a commodity1 o!r ?an a digital commodity1 be=e t2 & 7,b7 by r$esignat+ subclauses 7,,iv7 & 7,v7 z subclauses 7,v7 & 7,,vi7 & ins]t+ aft] subclause 7,,iii7 ! foll[+3 7,,iv7 a contract ( sale ( a digital commodity t-- 7aa7 results 9 actual deliv]y1 z ! ,commission %all by rule det]m9e1 )9 #b days or su* o!r p]iod z ! ,commission may det]m9e by rule or regulation bas$ ^u ! typical comm]cial practice 9 ca% or spot m>kets = ! digital commodity involv$2 or 7bb7 is execut$ ) a regi/]$ digital commodity deal]-- 7,,aa7 directly2 7,,bb7 ?r\gh a regi/]$ digital commodity brok]2 or 7,,cc7 on or subject to ! rules ( a regi/]$ digital commodity ex*ange2 2 & 7#b7 by add+ at ! end ! foll[+3 7,f7 ,commission jurisdiction ) respect to digital commodity transactions 7i7 ,9 g5]al ,subject to sections #f;d & #ab7;e71 ! ,commission %all h exclusive jurisdiction ) respect to any acc\nt1 agreem5t1 contract1 or transaction involv+ a contract ( sale ( a digital commodity 9 int]/ate comm]ce1 includ+ 9 a digital commodity ca% or spot m>ket1 t is (f]$1 solicit$1 trad$1 facilitat$1 execut$1 cle>$1 report$1 or o!rwise dealt 9-- 7,i7 on or subject to ! rules ( a regi/]$ entity or an entity t is requir$ to be regi/]$ z a regi/]$ entity2 or 7,,ii7 by any o!r entity regi/]$1 or requir$ to be regi/]$1 ) ! ,commission4 7ii7 ,limitations ,clause 7i7 %all n apply ) respect to cu/odial or depository activities = a digital commodity1 or cu/odial or depository activities = any promise or "r to a future digital commodity1 ( an entity regulat$ by an appropriate ,f$]al bank+ ag5cy or a ,/ate bank sup]visor 7)9 ! mean+ ( section #c ( ! ,f$]al ,deposit ,insurance ,act74 7iii7 ,mix$ digital asset transactions 7,i7 ,9 g5]al ,clause 7i7 %all n apply to a mix$ digital asset transaction4 7,,ii7 ,ov]sight ( mix$ digital asset transactions 7aa7 ,on a ,,cftc regulat$ plat=m ,a mix$ digital asset transaction t occurs on or subject to ! rules ( a regi/]$ entity or by any o!r entity regi/]$ ) ! ,commission-- 7,,aa7 %all n occur except on or subject to ! rules ( a regi/]$ entity or by any o!r entity t is dually regi/]$ ) ! ,commission & ! ,securities & ,ex*ange ,commission2 & 7,,bb7 %all be subject to ! jurisdiction ( ! ,commission & ! ,securities & ,ex*ange ,commission4 7bb7 ,(f ex*ange ,a mix$ digital asset transaction t does n occur on or subject to ! rules ( a regi/]$ entity or by any o!r entity regi/]$ ) ! ,commission %all be subject to ! exclusive jurisdiction ( ! ,securities & ,ex*ange ,commission4 7,,iii7 ,reports on mix$ digital asset transactions ,a digital asset issu]1 relat$ p]son1 affiliat$ p]son1 or o!r p]son regi/]$ ) ! ,securities & ,ex*ange ,commission t engages 9 a mix$ digital asset transaction1 %all1 on reque/1 op5 to inspection & exam9ation by ! ,commodity ,futures ,trad+ ,commission all books & records relat+ to ! mix$ digital asset transaction1 subject to ! confid5tiality & disclosure requirem5ts ( section #h4 7,g7 ,agreem5ts1 contracts1 & transactions 9 /ableco9s 7i7 ,treatm5t ( p]mitt$ paym5t /ableco9s on commission-regi/]$ entities ,except z provid$ 9 clauses 7ii7 & 7iii71 ! ,commission %all only h jurisdiction ov] a ca% or spot agreem5t1 contract1 or transaction 9 a p]mitt$ paym5t /ableco9 t is (f]$1 (f]$ to ent] into1 ent]$ into1 execut$1 confirm$ ! execution (1 solicit$1 or accept$-- 7,i7 on or subject to ! rules ( a regi/]$ entity2 or 7,,ii7 by any o!r entity regi/]$ by ! ,commission4 7ii7 ,p]mitt$ paym5t /ableco9 transaction rules ,?is ,act %all only apply to a transaction describ$ 9 clause 7i7 = ! purposes ( regulat+ ! (f]1 execution1 solicitation1 or acceptance ( a ca% or spot p]mitt$ paym5t /ableco9 transaction on a regi/]$ entity or o!r entity regi/]$ by ! ,commission ) respect to requirem5ts impos$ ) respect to-- 7,i7 recordkeep+2 7,,ii7 cu/ody2 7,,iii7 segregation2 7,,iv7 report+2 7,v7 trad+ proc$ures & trade process+ requirem5ts2 7,,vi7 in=mation %>+2 7,,vii7 conflicts ( int]e/2 7,,viii7 antifraud1 antimanipulation1 or false report+2 or 7,,ix7 any o!r transaction level requirem5t impos$ on ! regi/]$ entity or o!r entity regi/]$ by ! ,commission t ! ,commission by rule det]m9es w\ld fo/] ! developm5t ( fair & ord]ly ca% or spot m>kets 9 digital commodities1 be necess>y or appropriate 9 ! public int]e/1 & be consi/5t ) ! protection ( cu/om]s4 7iii7 ,no au?ority ov] p]mitt$ paym5t /ableco9s ,not)/&+ clause 7ii71 ! ,commission %all n make a rule or regulation1 impose a requirem5t or obligation on a regi/]$ entity or o!r entity regi/]$ by ! ,commission1 or impose a requirem5t or obligation on a p]mitt$ paym5t /ableco9 issu]1 reg>d+ ! op]ation ( a p]mitt$ paym5t /ableco9 issu] or a p]mitt$ paym5t /ableco91 includ+ a requirem5t or obligation reg>d+-- 7,i7 design2 7,,ii7 /ructure2 7,,iii7 issuance2 7,,iv7 r$emption2 7,v7 f9ancial res\rces2 7,,vi7 collat]al2 or 7,,vii7 any o!r aspect ( su* an op]ation or su* a /ableco94 4 7d7 ,con=m+ am5dm5t ,section #b7;a77#a77;,a7 ( su* ,act 7#g ,u4,s4,c4 #b7;a77#a77;,a77 is am5d$ 9 ! #a/ s5t5ce by ins]t+ subsection 7c77#b77;,f7 ( ?is section or be=e section #ai4 #djb4 ,requir+ futures commission m]*ants to use qualifi$ digital commodity cu/odians ,section #d;d ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #f;d7 is am5d$-- 7#a7 9 subsection 7a77#b7-- 7,a7 9 ! #a/ proviso1 by /rik+ any bank or tru/ company & ins]t+ any bank1 tru/ company1 or qualifi$ digital commodity cu/odian2 & 7,b7 by ins]t+ 3 ,provid$ fur!r1 ,t any su* prop]ty t is a digital commodity %all be held 9 a qualifi$ digital commodity cu/odian be=e ! p]iod at ! end2 & 7#b7 9 subsection 7f77#c77;,a77i71 by /rik+ any bank or tru/ company & ins]t+ any bank1 tru/ company1 or qualifi$ digital commodity cu/odian4 #djc4 ,trad+ c]tification & approval = digital commodities ,section #e;c ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #g;a-#b7 is am5d$-- 7#a7 9 subsection 7a71 by /rik+ #e7;d7 & #e;b7c77#b7 & ins]t+ #e7;d71 #e;b7c77#b71 & #e;i7c72 7#b7 9 subsection 7b7-- 7,a7 9 ea* ( p>agraphs 7#a7 & 7#b71 by ins]t+ digital commodity ex*ange1 be=e d]ivatives2 & 7,b7 9 p>agraph 7#c71 by ins]t+ digital commodity ex*ange1 be=e d]ivatives ea* place x appe>s2 7#c7 9 subsection 7c7-- 7,a7 9 p>agraph 7#b71 by ins]t+ or p>ticipants be=e 792 7,b7 9 p>agraph 7#d77;,b71 by /rik+ #a;a7#aj7 & ins]t+ #a;a7#i72 & 7,c7 9 p>agraph 7#e71 by add+ at ! end ! foll[+3 7,d7 ,special rules = digital commodity contracts ,9 c]tify+ any new rule or rule am5dm5t1 or li/+ any new contract or in/rum5t1 9 connection ) a contract ( sale ( a commodity = future deliv]y1 option1 swap1 or o!r agreem5t1 contract1 or transaction1 t is bas$ on or ref]5ces a digital commodity1 a regi/]$ entity %all make or rely on a c]tification "u subsection 7d7 = ! digital commodity4 2 & 7#d7 by ins]t+ aft] subsection 7c7 ! foll[+3 7d7 ,c]tifications = digital commodity trad+ 7#a7 ,9 g5]al ,not)/&+ subsection 7c71 = ! purposes ( li/+ or (f]+ a digital commodity = trad+ 9 a digital commodity ca% or spot m>ket1 an eligible entity %all issue a writt5 c]tification t ! digital commodity meets ! requirem5ts ( ?is ,act 7includ+ regulations !reund]74 7#b7 ,cont5ts ( ! c]tification 7,a7 ,9 g5]al ,9 mak+ a writt5 c]tification "u ?is p>agraph1 ! eligible entity %all furni% to ! ,commission-- 7i7 an analysis ( h[ ! digital commodity meets ! requirem5ts ( section #e;i7c77#c72 7ii7 in=mation ab\t ! digital commodity reg>d+-- 7,i7 its purpose & use2 7,,ii7 its unit creation or release process2 7,,iii7 its cons5sus me*anism2 7,,iv7 its gov]nance /ructure2 7,v7 its p>ticipation & di/ribution2 & 7,,vi7 its curr5t & propos$ functionality2 & 7iii7 any o!r in=mation1 analysis1 or docum5tation ! ,commission may1 by rule1 require4 7,b7 ,reliance on prior disclosures ,9 mak+ a c]tification "u ?is subsection1 an eligible entity may rely on ! records & disclosures ( any relevant p]son regi/]$ ) ! ,securities & ,ex*ange ,commission or o!r ,/ate or ,f$]al ag5cy4 7#c7 ,modifications 7,a7 ,9 g5]al ,an eligible entity %all modify a c]tification made "u p>agraph 7#a7 to-- 7i7 acc\nt = significant *anges 9 any in=mation provid$ to ! ,commission "u p>agraph 7#b77;,a77ii72 or 7ii7 p]mit or re/rict trad+ 9 units ( a digital commodity asset held by a relat$ p]son or an affiliat$ p]son4 7,b7 ,rec]tification ,modifications requir$ by ?is subsection %all be subject to ! same disapproval & review process z a new c]tification "u p>agraphs 7#d7 & 7#e74 7#d7 ,disapproval 7,a7 ,9 g5]al ,! writt5 c]tification describ$ 9 p>agraph 7#a7 %all become effective unless ! ,commission f9ds t ! digital asset does n meet ! requirem5ts ( ?is ,act or ! rules & regulations !reund]4 7,b7 ,analysis requir$ ,! ,commission %all include1 ) any f9d+s ref]r$ to 9 subp>agraph 7,a71 a detail$ analysis ( ! factors on :i* ! decision 0 bas$4 7,c7 ,public f9d+s ,! ,commission %all make public any disapproval decision1 & any relat$ f9d+s & analysis1 made "u ?is p>agraph4 7#e7 ,review 7,a7 ,9 g5]al ,unless ! ,commission makes a disapproval decision "u p>agraph 7#d71 ! writt5 c]tification describ$ 9 p>agraph 7#a7 %all become effective1 pursuant to ! c]tification by ! eligible entity & notice ( ! c]tification to ! public 79 a mann] det]m9$ by ! ,commission7 on ! date t is-- 7i7 #bj bus9ess days aft] ! date ! ,commission receives ! c]tification 7or su* %ort] p]iod z det]m9$ by ! ,commission by rule or regulation71 9 ! case ( a digital commodity t has n be5 c]tifi$ "u ?is section or = :i* a c]tification is be+ modifi$ "u p>agraph 7#c72 or 7ii7 #b bus9ess days aft] ! date ! ,commission receives ! c]tification 7or su* %ort] p]iod z det]m9$ by ! ,commission by rule or regulation7 = any digital commodity t has be5 c]tifi$ "u ?is section4 7,b7 ,ext5sions ,! "t = consid]ation "u subp>agraph 7,a7 may be ext5d$ ?r\gh notice to ! eligible entity t !re are novel or complex issues t require additional "t to analyze1 t ! explanation by ! submitt+ eligible entity is inadequate1 or ( a pot5tial inconsi/5cy ) ?is ,act-- 7i7 once1 = #cj bus9ess days1 ?r\gh writt5 notice to ! eligible entity by ! ,*airman2 & 7ii7 once1 = an additional #cj bus9ess days1 ?r\gh writt5 notice to ! digital commodity ex*ange f ! ,commission t includes a description ( any defici5cies ) ! c]tification1 includ+ any-- 7,i7 novel or complex issues :i* require additional "t to analyze2 7,,ii7 miss+ in=mation or inadequate explanations2 or 7,,iii7 pot5tial inconsi/5cies ) ?is ,act4 7#f7 ,c]tification requir$ ,not)/&+ any o!r requirem5t ( ?is ,act1 a regi/]$ entity or o!r entity regi/]$ ) ! ,commission %all n li/ = trad+1 accept = cle>+1 (f] to ent] into1 ent] into1 execute1 confirm ! execution (1 or conduct any (fice or bus9ess any:]e 9 ! ,unit$ ,/ates1 its t]ritories or possessions1 = ! purpose ( solicit+1 or accept+ any ord] =1 or o!rwise deal+ 91 any transaction 91 or 9 connection )1 a digital asset1 unless a c]tification has be5 made "u ?is section = ! digital asset4 7#g7 ,eligible entity def9$ ,9 ?is subsection1 ! t]m eligible entity means a regi/]$ entity or gr\p ( regi/]$ entities act+ jo9tly4 4 #djd4 ,regi/ration ( digital commodity ex*anges ,! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq47 is am5d$ by ins]t+ aft] section #e;h ! foll[+3 #e;i4 ,regi/ration ( digital commodity ex*anges 7a7 ,9 g5]al 7#a7 ,regi/ration 7,a7 ,9 g5]al ,a trad+ facility t (f]s or seeks to (f] a ca% or spot m>ket 9 at lea/ #a digital commodity %all regi/] ) ! ,commission z a digital commodity ex*ange4 7,b7 ,application ,a p]son desir+ to regi/] z a digital commodity ex*ange %all submit to ! ,commission an application 9 su* =m & conta9+ su* in=mation z ! ,commission may require = ! purpose ( mak+ ! det]m9ations requir$ = approval4 7,c7 ,exemptions ,a trad+ facility t (f]s or seeks to (f] a ca% or spot m>ket 9 at lea/ #a digital commodity %all n be requir$ to regi/] "u ?is section if ! trad+ facility-- 7i7 p]mits no m ?an a de m9imis am\nt ( trad+ activity2 or 7ii7 s]ves only cu/om]s 9 a s+le ,/ate or t]ritory4 7#b7 ,additional regi/rations 7,a7 ,) ! ,commission 7i7 ,9 g5]al ,a regi/]$ digital commodity ex*ange may also regi/] z-- 7,i7 a designat$ contract m>ket2 or 7,,ii7 a swap execution facility4 7ii7 ,rules ,= an entity ) multiple regi/rations "u clause 7i71 ! ,commission-- 7,i7 %all prescribe rules to exempt ! entity f duplicative1 conflict+1 or unduly burd5some provisions ( ?is ,act & ! rules "u ?is ,act1 to ! ext5t su* an exemption w\ld fo/] ! developm5t ( fair & ord]ly ca% or spot m>kets 9 digital commodities1 be necess>y or appropriate 9 ! public int]e/1 & be consi/5t ) ! protection ( cu/om]s2 & 7,,ii7 may1 aft] an analysis ( ! risks & b5efits1 prescribe rules to provide = portfolio m>g9+1 z may be necess>y to protect m>ket p>ticipants1 promote fair & equitable trad+ 9 digital commodity m>kets1 & promote responsible economic or f9ancial innovation4 7,b7 ,) ! ,securities & ,ex*ange ,commission ,a regi/]$ digital commodity ex*ange may regi/] ) ! ,securities & ,ex*ange ,commission z a digital asset trad+ sy/em to li/ or trade contracts ( sale = digital assets deem$ securities4 7,c7 ,) a regi/]$ futures association 7i7 ,9 g5]al ,a regi/]$ digital commodity ex*ange %all also be a memb] ( a regi/]$ futures association & comply ) rules relat$ to su* activity1 if ! regi/]$ digital commodity ex*ange accepts cu/om] funds requir$ to be segregat$ "u subsection 7d74 7ii7 ,rulemak+ requir$ ,! ,commission %all require any regi/]$ futures association ) a digital commodity ex*ange z a memb] to provide su* rules z may be necess>y to fur!r compliance ) subsection 7d71 protect cu/om]s1 & promote ! public int]e/4 7,d7 ,regi/ration requir$ ,a p]son requir$ to be regi/]$ z a digital commodity ex*ange "u ?is section %all regi/] ) ! ,commission z su* reg>dless ( :e!r ! p]son is regi/]$ z su* ) ano!r ,/ate or ,f$]al regulator4 7b7 ,trad+ 7#a7 ,prohibition on c]ta9 trad+ practices 7,a7 ,section #d;b %all apply to any agreem5t1 contract1 or transaction 9 a digital commodity z if ! agreem5t1 contract1 or transaction 7 a contract ( sale ( a commodity = future deliv]y4 7,b7 ,section #d;c %all apply to any agreem5t1 contract1 or transaction 9 a digital commodity z if ! agreem5t1 contract1 or transaction 7 a transaction involv+ ! pur*ase or sale ( a commodity = future deliv]y4 7#b7 ,prohibition on act+ z a c\nt]p>ty ,a regi/]$ digital commodity ex*ange or any affiliate ( su* an ex*ange %all n act z c\nt]p>ty to any transaction execut$ on or subject to ! rules ( ! regi/]$ digital commodity ex*ange4 7#c7 ,trad+ securities ,a regi/]$ digital commodity ex*ange t is also regi/]$ ) ! ,securities & ,ex*ange ,commission may (f] a contract ( sale ( a digital asset deem$ a security4 7#d7 ,rules = c]ta9 digital asset sales ,! digital commodity ex*ange %all h 9 place su* rules z may be necess>y to reasonably ensure ! ord]ly sale ( any unit ( a digital commodity sold by a relat$ p]son or an affiliat$ p]son4 7c7 ,core pr9ciples = digital commodity ex*anges 7#a7 ,compliance ) core pr9ciples 7,a7 ,9 g5]al ,to be regi/]$1 & ma9ta9 regi/ration1 z a digital commodity ex*ange1 a digital commodity ex*ange %all comply )-- 7i7 ! core pr9ciples describ$ 9 ?is subsection2 & 7ii7 any requirem5t t ! ,commission may impose by rule or regulation pursuant to section #h;a7#e74 7,b7 ,reasonable discretion ( a digital commodity ex*ange ,unless o!rwise det]m9$ by ! ,commission by rule or regulation1 a digital commodity ex*ange describ$ 9 subp>agraph 7,a7 %all h reasonable discretion 9 e/abli%+ ! mann] 9 :i* ! digital commodity ex*ange complies ) ! core pr9ciples describ$ 9 ?is subsection4 7#b7 ,compliance ) rules ,a digital commodity ex*ange %all-- 7,a7 e/abli% & en=ce compliance ) any rule ( ! digital commodity ex*ange1 includ+-- 7i7 ! t]ms & conditions ( ! trades trad$ or process$ on or ?r\gh ! digital commodity ex*ange2 & 7ii7 any limitation on access to ! digital commodity ex*ange2 7,b7 e/abli% & en=ce trad+1 trade process+1 & p>ticipation rules t w det] abuses & h ! capacity to detect1 inve/igate1 & en=ce ^? rules1 includ+ means-- 7i7 to provide m>ket p>ticipants ) imp>tial access to ! m>ket2 & 7ii7 to capture in=mation t may be us$ 9 e/abli%+ :e!r rule violations h occurr$2 & 7,c7 e/abli% rules gov]n+ ! op]ation ( ! ex*ange1 includ+ rules specify+ trad+ proc$ures to be us$ 9 ent]+ & execut+ ord]s trad$ or po/$ on ! facility4 7#c7 ,li/+ /&>ds = digital commodities 7,a7 ,9 g5]al ,a digital commodity ex*ange %all p]mit trad+ only 9 a digital commodity t is n readily susceptible to manipulation4 7,b7 ,public in=mation requirem5ts 7i7 ,9 g5]al ,a digital commodity ex*ange %all p]mit trad+ only 9 a digital commodity if ! in=mation requir$ 9 clause 7ii7 is correct1 curr5t1 & available to ! public4 7ii7 ,requir$ in=mation ,) respect to a digital commodity & ea* block*a9 sy/em to :i* ! digital commodity relates = :i* ! digital commodity ex*ange w make ! digital commodity available to ! cu/om]s ( ! digital commodity ex*ange1 ! in=mation requir$ 9 ?is clause is z foll[s3 7,i7 ,s\rce code ,! s\rce code = any block*a9 sy/em to :i* ! digital commodity relates4 7,,ii7 ,transaction hi/ory ,a n>rative description ( ! /eps necess>y to indep5d5tly access1 se>*1 & v]ify ! transaction hi/ory ( any block*a9 sy/em to :i* ! digital commodity relates4 7,,iii7 ,digital asset economics ,a n>rative description ( ! purpose ( any block*a9 sy/em to :i* ! digital asset relates & ! op]ation ( any su* block*a9 sy/em1 includ+-- 7aa7 in=mation expla9+ ! laun* & supply process1 includ+ ! numb] ( digital assets to be issu$ 9 an initial allocation1 ! total numb] ( digital assets to be creat$1 ! release s*$ule = ! digital assets1 & ! total numb] ( digital assets !n out/&+2 7bb7 in=mation detail+ any applicable cons5sus me*anism or process = validat+ transactions1 me?od ( g5]at+ or m9+ digital assets1 & any process = burn+ or de/roy+ digital assets on ! block*a9 sy/em2 7cc7 an explanation ( gov]nance me*anisms = implem5t+ *anges to ! block*a9 sy/em or =m+ cons5sus among hold]s ( ! digital assets2 & 7dd7 suffici5t in=mation = a ?ird p>ty to create a tool = v]ify+ ! transaction hi/ory ( ! digital asset4 7,,iv7 ,additional in=mation ,su* additional in=mation z ! ,commission may1 by rule1 det]m9e to be necess>y = a cu/om] to und]/& ! f9ancial & op]ational risks ( a digital commodity1 & to be 9 ! public int]e/ or 9 fur!rance ( ! requirem5ts ( ?is ,act4 7,c7 ,additional li/+ consid]ations ,9 addition to ! requirem5ts ( subp>agraphs 7,a7 & 7,b71 a digital commodity ex*ange %all consid]-- 7i7 if a suffici5t p]c5tage ( ! units ( ! digital asset are units ( a digital commodity to p]mit robu/ price discov]y2 7ii7 if x is reasonably unlikely t ! transaction hi/ory c be fraudul5tly alt]$ by any p]son or gr\p ( p]sons act+ collectively2 7iii7 if ! op]at+ /ructure & sy/em ( ! digital commodity is secure f cyb]security ?reats2 7iv7 if ! functionality ( ! digital commodity w protect hold]s f op]ational failures2 7v7 if suffici5t public in=mation ab\t ! op]ation1 functionality1 & use ( ! digital commodity is available2 & 7vi7 any o!r factor :i* ! ,commission has1 by rule1 det]m9$ to be 9 ! public int]e/ or 9 fur!rance ( ! requirem5ts ( ?is ,act4 7,d7 ,re/rict$ digital assets ,a digital commodity ex*ange %all n p]mit ! trad+ ( a unit ( a digital asset t is a re/rict$ digital asset4 7#d7 ,treatm5t ( cu/om] assets ,a digital commodity ex*ange %all e/abli% /&>ds & proc$ures t are design$ to protect & ensure ! safety ( cu/om] money1 assets1 & prop]ty4 7#e7 ,monitor+ ( trad+ & trade process+ 7,a7 ,9 g5]al ,a digital commodity ex*ange %all provide a competitive1 op51 & effici5t m>ket & me*anism = execut+ transactions t protects ! price discov]y process ( trad+ on ! ex*ange4 7,b7 ,protection ( m>kets & m>ket p>ticipants ,a digital commodity ex*ange %all e/abli% & en=ce rules-- 7i7 to protect m>kets & m>ket p>ticipants f abusive practices committ$ by any p>ty1 includ+ abusive practices committ$ by a p>ty act+ z an ag5t = a p>ticipant2 & 7ii7 to promote fair & equitable trad+ on ! ex*ange4 7,c7 ,trad+ proc$ures ,a digital commodity ex*ange %all-- 7i7 e/abli% & en=ce rules or t]ms & conditions def9+1 or specifications detail+-- 7,i7 trad+ proc$ures to be us$ 9 ent]+ & execut+ ord]s trad$ on or ?r\gh ! facilities ( ! digital commodity ex*ange2 & 7,,ii7 proc$ures = trade process+ ( digital commodities on or ?r\gh ! facilities ( ! digital commodity ex*ange2 & 7ii7 monitor trad+ 9 digital commodities to prev5t manipulation1 price di/ortion1 & disruptions ( ! deliv]y or ca% settlem5t process ?r\gh surveillance1 compliance1 & discipl9>y practices & proc$ures1 includ+ me?ods = conduct+ real-"t monitor+ ( trad+ & compreh5sive & accurate trade recon/ructions4 7#f7 ,ability to obta9 in=mation ,a digital commodity ex*ange %all-- 7,a7 e/abli% & en=ce rules t w all[ ! facility to obta9 any necess>y in=mation to p]=m any ( ! functions describ$ 9 ?is section2 7,b7 provide ! in=mation to ! ,commission on reque/2 & 7,c7 h ! capacity to c>ry out su* int]national in=mation-%>+ agreem5ts z ! ,commission may require4 7#g7 ,em]g5cy au?ority ,a digital commodity ex*ange %all adopt rules to provide = ! ex]cise ( em]g5cy au?ority1 9 consultation or coop]ation ) ! ,commission or a regi/]$ entity1 z is necess>y & appropriate1 includ+ ! au?ority to facilitate ! liquidation or transf] ( op5 positions 9 any digital commodity or to susp5d or curtail trad+ 9 a digital commodity4 7#h7 ,timely publication ( trad+ in=mation 7,a7 ,9 g5]al ,a digital commodity ex*ange %all make public timely in=mation on price1 trad+ volume1 & o!r trad+ data on digital commodities to ! ext5t prescrib$ by ! ,commission4 7,b7 ,capacity ( digital commodity ex*ange ,a digital commodity ex*ange %all h ! capacity to electronically capture & transmit trade in=mation ) respect to transactions execut$ on ! ex*ange4 7#i7 ,recordkeep+ & report+ 7,a7 ,9 g5]al ,a digital commodity ex*ange %all-- 7i7 ma9ta9 records ( all activities relat+ to ! bus9ess ( ! facility1 includ+ a complete audit trail1 9 a =m & mann] acceptable to ! ,commission = a p]iod ( #e ye>s2 7ii7 report to ! ,commission1 9 a =m & mann] acceptable to ! ,commission1 su* in=mation z ! ,commission det]m9es to be necess>y or appropriate = ! ,commission to p]=m ! duties ( ! ,commission "u ?is ,act2 & 7iii7 keep any su* records ( digital commodities :i* relate to a security op5 to inspection & exam9ation by ! ,securities & ,ex*ange ,commission4 7,b7 ,in=mation %>+ ,subject to section #h1 & on reque/1 ! ,commission %all %>e in=mation collect$ "u subp>agraph 7,a7 )-- 7i7 ! ,bo>d2 7ii7 ! ,securities & ,ex*ange ,commission2 7iii7 ea* appropriate ,f$]al bank+ ag5cy2 7iv7 ea* appropriate ,/ate bank sup]visor 7)9 ! mean+ ( section #c ( ! ,f$]al ,deposit ,insurance ,act72 7v7 ! ,f9ancial ,/ability ,ov]sight ,c\ncil2 7vi7 ! ,dep>tm5t ( ,ju/ice2 & 7vii7 any o!r p]son t ! ,commission det]m9es to be appropriate1 includ+-- 7,i7 =eign f9ancial sup]visors 7includ+ =eign futures au?orities72 7,,ii7 =eign c5tral banks2 & 7,,iii7 =eign m9i/ries4 7,c7 ,confid5tiality agreem5t ,be=e ! ,commission may %>e in=mation ) any entity describ$ 9 subp>agraph 7,b71 ! ,commission %all receive a writt5 agreem5t f ! entity /at+ t ! entity %all abide by ! confid5tiality requirem5ts describ$ 9 section #h relat+ to ! in=mation on digital commodities t is provid$4 7,d7 ,provid+ in=mation ,a digital commodity ex*ange %all provide to ! ,commission 7includ+ any designee ( ! ,commission7 in=mation "u subp>agraph 7,a7 9 su* =m & at su* frequ5cy z is requir$ by ! ,commission4 7#aj7 ,antitru/ consid]ations ,unless necess>y or appropriate to a*ieve ! purposes ( ?is ,act1 a digital commodity ex*ange %all n-- 7,a7 adopt any rules or take any actions t result 9 any unreasonable re/ra9t ( trade2 or 7,b7 impose any mat]ial anticompetitive burd5 on trad+4 7#aa7 ,conflicts ( int]e/ ,a regi/]$ digital commodity ex*ange %all implem5t conflict-(-int]e/ sy/ems & proc$ures t-- 7,a7 e/abli% /ructural & in/itutional safegu>ds-- 7i7 to m9imize conflicts ( int]e/ t might pot5tially bias ! judgm5t or sup]vision ( ! digital commodity ex*ange & contrav5e ! pr9ciples ( fair & equitable trad+ & ! bus9ess conduct /&>ds describ$ 9 ?is ,act1 includ+ conflicts aris+ out ( transactions or arrangem5ts ) affiliates 7includ+ affiliates engag+ 9 digital commodity activities7 :i* may include in=mation p>titions & ! legal sep>ation ( diff]5t p]sons or entities involv$ 9 digital commodity activities2 & 7ii7 to ensure t ! activities ( any p]son )9 ! digital commodity ex*ange or any affiliat$ entity relat+ to rese>* or analysis ( ! price or m>ket = any digital commodity or act+ 9 a role ( provid+ deal+1 brok]+1 or advis+ activities are sep>at$ by appropriate in=mational p>titions )9 ! digital commodity ex*ange or any affiliat$ entity f ! review1 pressure1 or ov]sight ( p]sons ^: involvem5t 9 pric+1 trad+1 ex*ange1 or cle>+ activities might pot5tially bias _! judgm5t or sup]vision & contrav5e ! core pr9ciples ( op5 access & ! bus9ess conduct /&>ds describ$ 9 ?is ,act2 & 7,b7 address su* o!r issues z ! ,commission det]m9es to be appropriate4 7#ab7 ,f9ancial res\rces 7,a7 ,9 g5]al ,a digital commodity ex*ange %all h adequate f9ancial1 op]ational1 & manag]ial res\rces1 z det]m9$ by ! ,commission1 to dis*>ge ea* responsibility ( ! digital commodity ex*ange4 7,b7 ,m9imum am\nt ( f9ancial res\rces ,a digital commodity ex*ange %all possess f9ancial res\rces t1 at a m9imum1 exce$ ! total am\nt t w\ld enable ! digital commodity ex*ange to conduct an ord]ly w9d-d[n ( its activities4 7#ac7 ,discipl9>y proc$ures ,a digital commodity ex*ange %all e/abli% & en=ce discipl9>y proc$ures t au?orize ! digital commodity ex*ange to discipl9e1 susp5d1 or expel memb]s or m>ket p>ticipants t violate ! rules ( ! digital commodity ex*ange1 or simil> me?ods = p]=m+ ! same functions1 includ+ delegation ( ! functions to ?ird p>ties4 7#ad7 ,gov]nance fitness /&>ds 7,a7 ,gov]nance arrangem5ts ,a digital commodity ex*ange %all e/abli% gov]nance arrangem5ts t are transp>5t to fulfill public int]e/ requirem5ts4 7,b7 ,fitness /&>ds ,a digital commodity ex*ange %all e/abli% & en=ce appropriate fitness /&>ds =-- 7i7 directors2 & 7ii7 any individual or entity ) direct access to1 or control (1 cu/om] assets4 7#ae7 ,sy/em safegu>ds ,a digital commodity ex*ange %all-- 7,a7 e/abli% & ma9ta9 a program ( risk analysis & ov]sight to id5tify & m9imize s\rces ( op]ational & security risks1 ?r\gh ! developm5t ( appropriate controls & proc$ures1 & automat$ sy/ems1 t-- 7i7 are reliable & secure2 & 7ii7 h adequate scalable capacity2 7,b7 e/abli% & ma9ta9 em]g5cy proc$ures1 backup facilities1 & a plan = disa/] recov]y t all[ =-- 7i7 ! timely recov]y & resumption ( op]ations2 & 7ii7 ! fulfillm5t ( ! responsibilities & obligations ( ! digital commodity ex*ange2 & 7,c7 p]iodically conduct te/s to v]ify t ! backup res\rces ( ! digital commodity ex*ange are suffici5t to ensure cont9u$-- 7i7 ord] process+ & trade mat*+2 7ii7 price report+2 7iii7 m>ket surveillance2 & 7iv7 ma9t5ance ( a compreh5sive & accurate audit trail4 7d7 ,hold+ ( cu/om] assets 7#a7 ,9 g5]al ,a digital commodity ex*ange %all hold cu/om] money1 assets1 & prop]ty 9 a mann] to m9imize ! risk ( loss to ! cu/om] or unreasonable delay 9 ! access to ! money1 assets1 & prop]ty ( ! cu/om]4 7,a7 ,segregation ( funds 7i7 ,9 g5]al ,a digital commodity ex*ange %all treat & deal ) all money1 assets1 & prop]ty t is receiv$ by ! digital commodity ex*ange1 or accrues to a cu/om] z ! result ( trad+ 9 digital commodities1 z belong+ to ! cu/om]4 7ii7 ,comm+l+ prohibit$ ,money1 assets1 & prop]ty ( a cu/om] describ$ 9 clause 7i7 %all be sep>ately acc\nt$ = & %all n be comm+l$ ) ! funds ( ! digital commodity ex*ange or be us$ to m>g91 secure1 or gu>antee any trades or acc\nts ( any cu/om] or p]son o!r ?an ! p]son = :om ! same are held4 7,b7 ,exceptions 7i7 ,use ( funds 7,i7 ,9 g5]al ,not)/&+ subp>agraph 7,a71 money1 assets1 & prop]ty ( cu/om]s ( a digital commodity ex*ange describ$ 9 subp>agraph 7,a7 may1 = conv5i5ce1 be comm+l$ & deposit$ 9 ! same acc\nt or acc\nts ) any bank1 tru/ company1 d]ivatives cle>+ organization1 or qualifi$ digital commodity cu/odian4 7,,ii7 ,)drawal ,not)/&+ subp>agraph 7,a71 su* %>e ( ! money1 assets1 & prop]ty describ$ 9 item 7aa7 z 9 ! normal c\rse ( bus9ess %all be necess>y to m>g91 gu>antee1 secure1 transf]1 adju/1 or settle a contract ( sale ( a digital commodity ) a regi/]$ entity may be )drawn & appli$ to su* purposes1 includ+ ! paym5t ( commissions1 brok]age1 int]e/1 taxes1 /orage1 & o!r *>ges1 lawfully accru+ 9 connection ) ! contract ( sale ( a digital commodity4 7ii7 ,commission action ,not)/&+ subp>agraph 7,a71 9 accordance ) su* t]ms & conditions z ! ,commission may prescribe by rule1 regulation1 or ord]1 any money1 assets1 or prop]ty ( ! cu/om]s ( a digital commodity ex*ange describ$ 9 subp>agraph 7,a7 may be comm+l$ & deposit$ 9 cu/om] acc\nts ) any o!r money1 assets1 or prop]ty receiv$ by ! digital commodity ex*ange & requir$ by ! ,commission to be sep>ately acc\nt$ = & treat$ & dealt ) z belong+ to ! cu/om] ( ! digital commodity ex*ange4 7#b7 ,p]mitt$ inve/m5ts ,money describ$ 9 subp>agraph 7,a7 may be inve/$ 9 obligations ( ! ,unit$ ,/ates1 9 g5]al obligations ( any ,/ate or ( any political subdivision ( a ,/ate1 & 9 obligations fully gu>ante$ z to pr9cipal & int]e/ by ! ,unit$ ,/ates1 or 9 any o!r inve/m5t t ! ,commission may by rule or regulation prescribe1 & su* inve/m5ts %all be made 9 accordance ) su* rules & regulations & subject to su* conditions z ! ,commission may prescribe4 7#c7 ,cu/om] protection dur+ bankruptcy 7,a7 ,cu/om] prop]ty ,all assets held on behalf ( a cu/om] by a digital commodity ex*ange1 & all money1 assets1 & prop]ty ( any cu/om] receiv$ by a digital commodity ex*ange regi/]$ "u section #e;i ( ?is ,act = trad+ or cu/ody1 or to facilitate1 m>g91 gu>antee1 or secure contracts ( sale ( a digital commodity 7includ+ money1 assets1 or prop]ty accru+ to ! cu/om] z ! result ( ! transactions71 %all be consid]$ cu/om] prop]ty = purposes ( section #gfa ( title #aa1 ,unit$ ,/ates ,code4 7,b7 ,transactions ,a transaction involv+ a unit ( a digital commodity occurr+ on or subject to ! rules ( a digital commodity ex*ange %all be consid]$ a contract = ! pur*ase or sale ( a commodity = future deliv]y1 on or subject to ! rules (1 a contract m>ket or bo>d ( trade = ! purposes ( ! def9ition ( a commodity contract 9 section #gfa ( title #aa1 ,unit$ ,/ates ,code4 7,c7 ,ex*anges ,a digital commodity ex*ange %all be consid]$ a futures commission m]*ant = purposes ( section #gfa ( title #aa1 ,unit$ ,/ates ,code4 7#d7 ,misuse ( cu/om] prop]ty 7,a7 ,9 g5]al ,x %all be unlawful-- 7i7 = any digital commodity ex*ange t has receiv$ any cu/om] money1 assets1 or prop]ty = cu/ody to dispose (1 or use any su* money1 assets1 or prop]ty z belong+ to ! digital commodity ex*ange2 or 7ii7 = any o!r p]son1 includ+ any depository1 o!r digital commodity ex*ange1 or digital commodity cu/odian t has receiv$ any cu/om] money1 assets1 or prop]ty = deposit1 to hold1 dispose (1 or use any su* money1 assets1 or prop]ty1 or prop]ty1 z belong+ to ! deposit+ digital commodity ex*ange or any p]son o!r ?an ! cu/om]s ( ! digital commodity ex*ange4 7,b7 ,use fur!r def9$ ,= purposes ( ?is section1 use ( a digital commodity includes utiliz+ any unit ( a digital asset to p>ticipate 9 a block*a9 s]vice def9$ 9 p>agraph 7#e7 or a dec5traliz$ gov]nance sy/em associat$ ) ! digital commodity or ! block*a9 sy/em to :i* ! digital commodity relates 9 any mann] o!r ?an t expressly direct$ by ! cu/om] f :om ! unit ( a digital commodity 0 receiv$4 7#e7 ,p>ticipation 9 block*a9 s]vices 7,a7 ,9 g5]al ,a cu/om] %all h ! "r to waive ! re/rictions 9 p>agraph 7#a7 = any unit ( a digital commodity1 by affirmatively elect+1 9 writ+ to ! digital commodity ex*ange1 to waive ! re/rictions4 7,b7 ,use ( funds ,cu/om] digital commodities remov$ f segregation "u subp>agraph 7,a7 may be pool$ & us$ by ! digital commodity ex*ange or its designee to provide a block*a9 s]vice = a block*a9 sy/em to :i* ! unit ( ! digital asset remov$ f segregation 9 subp>agraph 7,a7 relates4 7,c7 ,limitations ,! ,commission may1 by rule1 e/abli% notice & disclosure requirem5ts1 & any o!r limitations & rules relat$ to ! waiv+ ( any re/rictions "u ?is p>agraph t are reasonably necess>y to protect cu/om]s1 includ+ eligible contract p>ticipants1 non-eligible contract p>ticipants1 or any o!r class ( cu/om]s4 7,d7 ,block*a9 s]vice def9$ ,9 ?is subp>agraph1 ! t]m block*a9 s]vice means any activity relat+ to validat+ transactions on a block*a9 sy/em1 provid+ security = a block*a9 sy/em1 or o!r simil> activity requir$ = ! ongo+ op]ation ( a block*a9 sy/em4 7e7 ,m>ket access requirem5ts 7#a7 ,9 g5]al ,a digital commodity ex*ange %all require any p]son :o is n an eligible contract p>ticipant to access trad+ on ! ex*ange ?r\gh a digital commodity brok]4 7#b7 ,affiliat$ commodity brok]s ,a regi/]$ digital commodity ex*ange may ma9ta9 an affiliat$ digital commodity brok] to facilitate access to ! digital commodity ex*ange1 if-- 7,a7 no o!r digital commodity brok]s are p]mitt$ to facilitate access to ! ex*ange2 7,b7 ! affiliat$ digital commodity brok] limits its activities only to provid+ cu/om] access to ! digital commodity ex*ange2 & 7,c7 ! affiliat$ digital commodity brok] is n also regi/]$ z a digital commodity deal]4 7#c7 ,direct access = eligible contract p>ticipants ,no?+ 9 ?is section %all prohibit a digital commodity ex*ange 9 compliance ) ?is section f p]mitt+ direct access = eligible contract p>ticipants4 7#d7 ,additional requirem5ts 7,a7 ,9 g5]al ,! ,commission may1 by rule1 impose any additional requirem5ts relat$ to ! op]ations & activities ( ! digital commodity ex*ange & ! affiliat$ digital commodity brok] necess>y to protect m>ket p>ticipants1 promote fair & equitable trad+ on ! digital commodity ex*ange1 & promote responsible economic or f9ancial innovation4 7,b7 ,delegation ( au?ority ,! ,commission may delegate to a regi/]$ futures association su* ov]sight & regulatory requirem5ts z ! ,commission det]m9es are necess>y to-- 7i7 sup]vise ! activities ( ! digital commodity ex*ange & an affiliat$ digital commodity brok]2 & 7ii7 protect m>ket p>ticipants1 promote fair & equitable trad+ on ! digital commodity ex*ange1 & promote responsible economic or f9ancial innovation4 7f7 ,designation ( *ief compliance (fic] 7#a7 ,9 g5]al ,a digital commodity ex*ange %all designate an individual to s]ve z a *ief compliance (fic]4 7#b7 ,duties ,! *ief compliance (fic] %all-- 7,a7 report directly to ! bo>d or to ! s5ior (fic] ( ! ex*ange2 7,b7 review compliance ) ! core pr9ciples 9 ?is subsection2 7,c7 9 consultation ) ! bo>d ( ! ex*ange1 a body p]=m+ a function simil> to t ( a bo>d1 or ! s5ior (fic] ( ! ex*ange1 resolve any conflicts ( int]e/ t may arise2 7,d7 e/abli% & adm9i/] ! policies & proc$ures requir$ to be e/abli%$ pursuant to ?is section2 7,e7 ensure compliance ) ?is ,act & ! rules & regulations issu$ "u ?is ,act1 includ+ rules prescrib$ by ! ,commission pursuant to ?is section2 & 7,f7 e/abli% proc$ures = ! rem$iation ( noncompliance issues f\nd dur+ compliance (fice reviews1 look backs1 int]nal or ext]nal audit f9d+s1 self-report$ errors1 or ?r\gh validat$ compla9ts4 7#c7 ,requirem5ts = proc$ures ,9 e/abli%+ proc$ures "u p>agraph 7#b77;,f71 ! *ief compliance (fic] %all design ! proc$ures to e/abli% ! h&l+1 managem5t response1 rem$iation1 rete/+1 & clos+ ( noncompliance issues4 7#d7 ,annual reports 7,a7 ,9 g5]al ,9 accordance ) rules prescrib$ by ! ,commission1 ! *ief compliance (fic] %all annually prep>e & sign a report t conta9s a description (-- 7i7 ! compliance ( ! digital commodity ex*ange ) ?is ,act2 & 7ii7 ! policies & proc$ures1 includ+ ! code ( e?ics & conflict ( int]e/ policies1 ( ! digital commodity ex*ange4 7,b7 ,requirem5ts ,! *ief compliance (fic] %all-- 7i7 submit ea* report describ$ 9 subp>agraph 7,a7 ) ! appropriate f9ancial report ( ! digital commodity ex*ange t is requir$ to be submitt$ to ! ,commission pursuant to ?is section2 & 7ii7 include 9 ! report a c]tification t1 "u p5alty ( law1 ! report is accurate & complete4 7g7 ,appo9tm5t ( tru/ee 7#a7 ,9 g5]al ,if a proce$+ "u section #e;e results 9 ! susp5sion or revocation ( ! regi/ration ( a digital commodity ex*ange1 or if a digital commodity ex*ange )draws f regi/ration1 ! ,commission1 on notice to ! digital commodity ex*ange1 may apply to ! appropriate ,unit$ ,/ates di/rict c\rt :]e ! digital commodity ex*ange is locat$ = ! appo9tm5t ( a tru/ee4 7#b7 ,assumption ( jurisdiction ,if ! ,commission applies = appo9tm5t ( a tru/ee "u p>agraph 7#a7-- 7,a7 ! c\rt may take exclusive jurisdiction ov] ! digital commodity ex*ange & ! records & assets ( ! digital commodity ex*ange1 :]ev] locat$2 & 7,b7 if ! c\rt takes jurisdiction "u subp>agraph 7,a71 ! c\rt %all appo9t ! ,commission1 or a p]son designat$ by ! ,commission1 z tru/ee ) p[] to take possession & cont9ue to op]ate or t]m9ate ! op]ations ( ! digital commodity ex*ange 9 an ord]ly mann] = ! protection ( cu/om]s subject to su* t]ms & conditions z ! c\rt may prescribe4 7h7 ,qualifi$ digital commodity cu/odian ,a digital commodity ex*ange %all hold 9 a qualifi$ digital commodity cu/odian ea* unit ( a digital commodity t is-- 7#a7 ! prop]ty ( a cu/om] ( ! digital commodity ex*ange2 7#b7 requir$ to be held by ! digital commodity ex*ange "u subsection 7c77#ab7 ( ?is section2 or 7#c7 o!rwise s requir$ by ! ,commission to reasonably protect cu/om]s or promote ! public int]e/4 7i7 ,exemptions ,9 ord] to promote responsible economic or f9ancial innovation & fair competition1 or protect cu/om]s1 ! ,commission may 7on its own initiative or on application ( ! regi/]$ digital commodity ex*ange7 exempt1 ei!r unconditionally or on /at$ t]ms or conditions or = /at$ p]iods & ei!r retroactively or prospectively1 or bo?1 a regi/]$ digital commodity ex*ange f ! requirem5ts ( ?is section1 if ! ,commission det]m9es t-- 7#a7 7,a7 ! exemption w\ld be consi/5t ) ! public int]e/ & ! purposes ( ?is ,act2 & 7,b7 ! exemption w n h a mat]ial adv]se effect on ! ability ( ! ,commission or ! digital commodity ex*ange to dis*>ge regulatory or self-regulatory duties "u ?is ,act2 or 7#b7 ! digital commodity ex*ange is subject to comp>able1 compreh5sive sup]vision & regulation by ! appropriate gov]nm5t au?orities 9 ! home c\ntry ( ! ex*ange4 7j7 ,cu/om] def9$ ,9 ?is section1 ! t]m cu/om] means any p]son t ma9ta9s an acc\nt = ! trad+ ( digital commodities directly ) a digital commodity ex*ange 7o!r ?an a p]son t is own$ or controll$1 directly or indirectly1 by ! digital commodity ex*ange7 = its own behalf or on behalf ( o!r any p]son4 7k7 ,f$]al preemption ,not)/&+ any o!r provision ( law1 ! ,commission %all h exclusive jurisdiction ov] any digital commodity ex*ange regi/]$ "u ?is section4 7l7 ,treatm5t "u ! ,bank ,secrecy ,act ,a regi/]$ digital commodity ex*ange %all be treat$ z a f9ancial in/itution = purposes ( ! ,bank ,secrecy ,act4 4 #dje4 ,qualifi$ digital commodity cu/odians ,! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq471 z am5d$ by ! prec$+ provisions ( ?is ,act1 is am5d$ by ins]t+ aft] section #e;i ! foll[+3 #e;j4 ,qualifi$ digital commodity cu/odians 7a7 ,9 g5]al ,= purposes ( ?is ,act1 a qualifi$ digital commodity cu/odian is a digital commodity cu/odian :o meets ! foll[+ conditions3 7#a7 ,sup]vision ,! digital commodity cu/odian is subject to adequate sup]vision & appropriate regulation4 7#b7 ,no prohibition ,! digital commodity cu/odian is-- 7,a7 subject to ! sup]vision (-- 7i7 an appropriate ,f$]al bank+ ag5cy2 7ii7 a ,/ate bank sup]visor 7)9 ! mean+ ( section #c ( ! ,f$]al ,deposit ,insurance ,act72 or 7iii7 an appropriate =eign gov]nm5tal au?ority 9 ! home c\ntry ( ! digital commodity cu/odian2 & 7,b7 n prohibit$ by ! applicable sup]visor ref]r$ to 9 subp>agraph 7,a7 f engag+ 9 any activity ) respect to ! hold+ ( digital commodities4 7#c7 ,in=mation %>+ 7,a7 ,9 g5]al ,! digital commodity cu/odian agrees to su* p]iodic %>+ ( in=mation reg>d+ cu/om] acc\nts ! digital commodity cu/odian holds on behalf ( an entity regi/]$ ) ! ,commission1 z ! ,commission det]m9es by rule %all be reasonably necess>y to effectuate any ( ! provisions1 or to accompli% any ( ! purposes1 ( ?is ,act4 7,b7 ,provision ( in=mation ,any p]son t is subject to regulation & exam9ation by a prud5tial regulator may satisfy any in=mation reque/ describ$ 9 subp>agraph 7,a71 by provid+ ! ,commission ) a detail$ li/+1 9 writ+1 ( ! digital commodities ( a cu/om] )9 ! cu/ody or use ( ! p]son4 7b7 ,adequate sup]vision & appropriate regulation fur!r def9$ 7#a7 ,9 g5]al ,9 subsection 7a71 ! t]ms adequate sup]vision & appropriate regulation mean su* m9imum /&>ds = sup]vision & regulation z are reasonably necess>y to protect ! digital commodities ( cu/om]s ( an entity regi/]$ ) ! ,commission1 includ+ m9imum /&>ds relat+ to-- 7,a7 accessibility ( cu/om] assets2 7,b7 f9ancial res\rces2 7,c7 risk managem5t requirem5ts2 7,d7 gov]nance arrangem5ts2 7,e7 fitness /&>ds2 7,f7 recordkeep+2 7,g7 in=mation %>+2 & 7,h7 conflicts ( int]e/4 7#b7 ,deem$ compliance ,= purposes ( subsection 7a71 a bank subject to ! sup]vision ( an appropriate ,f$]al bank+ ag5cy or a ,/ate bank sup]visor 7)9 ! mean+ ( section #c ( ! ,f$]al ,deposit ,insurance ,act7 is deem$ to be subject to adequate sup]vision & appropriate regulation4 7#c7 ,rulemak+ au?ority ,= purposes ( subsection 7a71 ! ,commission1 by rule or ord]1 may fur!r def9e ! t]ms adequate sup]vision & appropriate regulation z necess>y 9 ! public int]e/1 z appropriate = ! protection ( cu/om]s1 & consi/5t ) ! purposes ( ?is ,act4 7c7 ,au?ority ,to tempor>ily susp5d /&>ds ,! ,commission may1 by rule or ord]1 tempor>ily susp5d1 9 :ole or 9 "p1 any requirem5t impos$ "u1 or any /&>d ref]r$ to 91 ?is section if ! ,commission det]m9es t ! susp5sion w\ld be consi/5t ) ! public int]e/ & ! purposes ( ?is ,act4 4 #djf4 ,regi/ration & regulation ( digital commodity brok]s & deal]s ,! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq471 z am5d$ by ! prec$+ provisions ( ?is ,act1 is am5d$ by ins]t+ aft] section #dt ! foll[+3 #du4 ,regi/ration & regulation ( digital commodity brok]s & deal]s 7a7 ,regi/ration ,x %all be unlawful = any p]son to act z a digital commodity brok] or digital commodity deal] unless ! p]son is regi/]$ z su* ) ! ,commission4 7b7 ,requirem5ts 7#a7 ,9 g5]al ,a p]son %all regi/] z a digital commodity brok] or digital commodity deal] by fil+ a regi/ration application ) ! ,commission4 7#b7 ,cont5ts 7,a7 ,9 g5]al ,! application %all be made 9 su* =m & mann] z is prescrib$ by ! ,commission1 & %all conta9 su* in=mation z ! ,commission consid]s necess>y conc]n+ ! bus9ess 9 :i* ! applicant is or w be engag$4 7,b7 ,cont9ual report+ ,a p]son t is regi/]$ z a digital commodity brok] or digital commodity deal] %all cont9ue to submit to ! ,commission reports t conta9 su* in=mation p]ta9+ to ! bus9ess ( ! p]son z ! ,commission may require4 7#c7 ,transition ,)9 #ahj days aft] ! date ( ! enactm5t ( ?is section1 ! ,commission %all prescribe rules provid+ = ! regi/ration ( digital commodity brok]s & digital commodity deal]s "u ?is section4 7#d7 ,/atutory disqualification ,except to ! ext5t o!rwise specifically provid$ by rule1 regulation1 or ord]1 x %all be unlawful = a digital commodity brok] or digital commodity deal] to p]mit any p]son :o is associat$ ) a digital commodity brok] or a digital commodity deal] & :o is subject to a /atutory disqualification to effect or be involv$ 9 effect+ a contract = sale ( a digital commodity on behalf ( ! digital commodity brok] or ! digital commodity deal]1 respectively1 if ! digital commodity brok] or digital commodity deal]1 respectively1 knew1 or 9 ! ex]cise ( reasonable c>e %\ld h kn[n1 ( ! /atutory disqualification4 7#e7 ,limitations on c]ta9 assets ,a regi/]$ digital commodity brok] or regi/]$ digital commodity deal] %all n (f]1 (f] to ent] into1 ent] into1 or facilitate any contract = sale ( a digital commodity t has n be5 c]tifi$ "u section #e;c7d74 7c7 ,additional regi/rations 7#a7 ,) ! ,commission ,any p]son requir$ to be regi/]$ z a digital commodity brok] or digital commodity deal] may also be regi/]$ z a futures commission m]*ant1 introduc+ brok]1 or swap deal]4 7#b7 ,) ! ,securities & ,ex*ange ,commission ,any p]son requir$ to be regi/]$ z a digital commodity brok] or digital commodity deal] "u ?is section may regi/] ) ! ,securities & ,ex*ange ,commission z a digital asset brok] or digital asset deal]1 pursuant to section #ae7;b7 ( ! ,securities ,ex*ange ,act ( #aicd1 z applicable1 if ! digital asset brok] or digital asset deal] limits its solicitation ( ord]s1 acceptance ( ord]s1 or execution ( ord]s1 or plac+ ( ord]s on behalf ( o!rs involv+ any contract ( sale ( digital assets4 7#c7 ,) memb]%ip 9 a regi/]$ futures association ,any p]son requir$ to be regi/]$ z a digital commodity brok] or digital commodity deal] "u ?is section %all be a memb] ( a regi/]$ futures association4 7#d7 ,regi/ration requir$ ,any p]son requir$ to be regi/]$ z a digital commodity brok] or digital commodity deal] "u ?is section %all regi/] ) ! ,commission z su* reg>dless ( :e!r ! p]son is regi/]$ z su* ) ano!r ,/ate or ,f$]al regulator4 7d7 ,rulemak+ 7#a7 ,9 g5]al ,! ,commission %all prescribe su* rules applicable to regi/]$ digital commodity brok]s & regi/]$ digital commodity deal]s z are appropriate to c>ry out ?is section1 includ+ rules 9 ! public int]e/ t limit ! activities ( digital commodity brok]s & digital commodity deal]s4 7#b7 ,multiple regi/rants ,! ,commission %all prescribe rules or regulations p]mitt+1 or may o!rwise au?orize1 exemptions or additional requirem5ts applicable to p]sons ) multiple regi/rations "u ?is ,act1 includ+ z futures commission m]*ants1 introduc+ brok]s1 digital commodity brok]s1 digital commodity deal]s1 or swap deal]s1 z may be 9 ! public int]e/ to r$uce compliance co/s & promote cu/om] protection4 7e7 ,capital requirem5ts 7#a7 ,9 g5]al ,ea* regi/]$ digital commodity brok] & regi/]$ digital commodity deal] %all meet su* m9imum capital requirem5ts z ! ,commission may prescribe to ensure t ! digital commodity brok] or digital commodity deal]1 respectively1 is able to-- 7,a7 meet1 & cont9ue to meet1 at all times1 ! obligations ( su* a regi/rant2 7,b7 conduct an ord]ly w9d-d[n ( ! activities ( ! digital commodity brok] or digital commodity deal]1 respectively2 & 7,c7 9 ! case ( a digital commodity deal]1 fulfill ! cu/om] obligations ( ! digital commodity deal] = any m>g9$1 lev]ag$1 or f9anc$ transactions4 7#b7 ,rule ( con/ruction ,no?+ 9 ?is section %all limit1 or be con/ru$ to limit1 ! au?ority ( ! ,securities & ,ex*ange ,commission to set f9ancial responsibility rules = a brok] or deal] regi/]$ pursuant to section #ae7;b7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho7b77 7except = section #ae7;b77#aa7 ( su* ,act 7#ae ,u4,s4,c4 #gho7b77#aa77 9 accordance ) section #ae7;c77#c7 ( su* ,act 7#ae ,u4,s4,c4 #gho7c77#c774 7#c7 ,futures commission m]*ants & o!r deal]s 7,a7 ,9 g5]al ,ea* futures commission m]*ant1 introduc+ brok]1 digital commodity brok]1 digital commodity deal]1 brok]1 & deal] %all ma9ta9 suffici5t capital to comply ) ! /rict] ( any applicable capital requirem5ts to :i* ! futures commission m]*ant1 introduc+ brok]1 digital commodity brok]1 digital commodity deal]1 brok]1 or deal]1 respectively1 is subject "u ?is ,act or ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq474 7,b7 ,coord9ation ( capital requirem5ts 7i7 ,commission rule ,! ,commission %all1 by rule1 provide appropriate (fsets to any applicable capital requirem5t = a p]son ) multiple regi/rations z a digital commodity deal]1 digital commodity brok]1 futures commission m]*ant1 or introduc+ brok]4 7ii7 ,jo9t rule ,! ,commission & ! ,securities & ,ex*ange ,commission %all jo9tly1 by rule1 provide appropriate (fsets to any applicable capital requirem5t = a p]son ) multiple regi/rations z a digital commodity deal]1 digital commodity brok]1 futures commission m]*ant1 introduc+ brok]1 brok]1 or deal]4 7f7 ,report+ & recordkeep+ ,ea* regi/]$ digital commodity brok] & regi/]$ digital commodity deal]-- 7#a7 %all make su* reports z are requir$ by ! ,commission by rule or regulation reg>d+ ! transactions1 positions1 & f9ancial condition ( ! digital commodity brok] or digital commodity deal]1 respectively2 7#b7 %all keep books & records 9 su* =m & mann] & = su* p]iod z may be prescrib$ by ! ,commission by rule or regulation2 & 7#c7 %all keep ! books & records op5 to inspection & exam9ation by any repres5tative ( ! ,commission4 7g7 ,daily trad+ records 7#a7 ,9 g5]al ,ea* regi/]$ digital commodity brok] & regi/]$ digital commodity deal] %all ma9ta9 daily trad+ records ( ! transactions ( ! digital commodity brok] or digital commodity deal]1 respectively1 & all relat$ records 7includ+ relat$ =w>d or d]ivatives transactions7 & record$ communications1 includ+ electronic mail1 in/ant messages1 & record+s ( telephone calls1 = su* p]iod z ! ,commission may require by rule or regulation4 7#b7 ,in=mation requirem5ts ,! daily trad+ records %all include su* in=mation z ! ,commission %all require by rule or regulation4 7#c7 ,c\nt]p>ty records ,ea* regi/]$ digital commodity brok] & regi/]$ digital commodity deal] %all ma9ta9 daily trad+ records = ea* cu/om] or c\nt]p>ty 9 a mann] & =m t is id5tifiable ) ea* digital commodity transaction4 7#d7 ,audit trail ,ea* regi/]$ digital commodity brok] & regi/]$ digital commodity deal] %all ma9ta9 a complete audit trail = conduct+ compreh5sive & accurate trade recon/ructions4 7h7 ,bus9ess conduct /&>ds 7#a7 ,9 g5]al ,ea* regi/]$ digital commodity brok] & regi/]$ digital commodity deal] %all con=m ) su* bus9ess conduct /&>ds z ! ,commission1 by rule or regulation1 prescribes relat$ to-- 7,a7 fraud1 manipulation1 & o!r abusive practices involv+ spot or m>g9$1 lev]ag$1 or f9anc$ digital commodity transactions 7includ+ transactions t are (f]$ b n ent]$ into72 7,b7 dilig5t sup]vision ( ! bus9ess ( ! regi/]$ digital commodity brok] or digital commodity deal]1 respectively2 & 7,c7 su* o!r matt]s z ! ,commission deems appropriate4 7#b7 ,bus9ess conduct requirem5ts ,! ,commission %all1 by rule1 prescribe bus9ess conduct requirem5ts :i*-- 7,a7 require disclosure by a regi/]$ digital commodity brok] & regi/]$ digital commodity deal] to any c\nt]p>ty to ! transaction 7o!r ?an an eligible contract p>ticipant7 (-- 7i7 in=mation ab\t ! mat]ial risks & *>act]i/ics ( ! digital commodity2 & 7ii7 in=mation ab\t ! mat]ial risks & *>act]i/ics ( ! transaction2 7,b7 e/abli% a duty = su* a digital commodity brok] & su* a digital commodity deal] to communicate 9 a fair & balanc$ mann] bas$ on pr9ciples ( fair deal+ & good fai?2 7,c7 e/abli% /&>ds gov]n+ digital commodity plat=m m>ket+ & adv]tis+1 includ+ te/imonials & endorsem5ts2 & 7,d7 e/abli% su* o!r /&>ds & requirem5ts z ! ,commission may det]m9e are-- 7i7 9 ! public int]e/2 7ii7 appropriate = ! protection ( cu/om]s2 or 7iii7 o!rwise 9 fur!rance ( ! purposes ( ?is ,act4 7#c7 ,prohibition on fraudul5t practices ,x %all be unlawful = a regi/]$ digital commodity brok] or regi/]$ digital commodity deal] to-- 7,a7 employ any device1 s*eme1 or artifice to defraud any cu/om] or c\nt]p>ty2 7,b7 engage 9 any transaction1 practice1 or c\rse ( bus9ess t op]ates z a fraud or deceit on any cu/om] or c\nt]p>ty2 or 7,c7 engage 9 any act1 practice1 or c\rse ( bus9ess t is fraudul5t1 deceptive1 or manipulative4 7i7 ,duties 7#a7 ,risk managem5t proc$ures ,ea* regi/]$ digital commodity brok] & regi/]$ digital commodity deal] %all e/abli% robu/ & pr(essional risk managem5t sy/ems adequate = manag+ ! day-to-day bus9ess ( ! digital commodity brok] or digital commodity deal]1 respectively4 7#b7 ,disclosure ( g5]al in=mation ,ea* regi/]$ digital commodity brok] & regi/]$ digital commodity deal] %all disclose to ! ,commission in=mation conc]n+-- 7,a7 ! t]ms & conditions ( ! transactions ( ! digital commodity brok] or digital commodity deal]1 respectively2 7,b7 ! trad+ op]ations1 me*anisms1 & practices ( ! digital commodity brok] or digital commodity deal]1 respectively2 7,c7 f9ancial integrity protections relat+ to ! activities ( ! digital commodity brok] or digital commodity deal]1 respectively2 & 7,d7 o!r in=mation relevant to trad+ 9 digital commodities by ! digital commodity brok] or digital commodity deal]1 respectively4 7#c7 ,ability to obta9 in=mation ,ea* regi/]$ digital commodity brok] & regi/]$ digital commodity deal] %all-- 7,a7 e/abli% & en=ce int]nal sy/ems & proc$ures to obta9 any necess>y in=mation to p]=m any ( ! functions describ$ 9 ?is section2 & 7,b7 provide ! in=mation to ! ,commission1 on reque/4 7#d7 ,conflicts ( int]e/ ,ea* regi/]$ digital commodity brok] & digital commodity deal] %all implem5t conflict-(-int]e/ sy/ems & proc$ures t-- 7,a7 e/abli% /ructural & in/itutional safegu>ds-- 7i7 to m9imize conflicts ( int]e/ t might pot5tially bias ! judgm5t or sup]vision ( ! digital commodity brok] or digital commodity deal]1 respectively1 & contrav5e ! pr9ciples ( fair & equitable trad+ & ! bus9ess conduct /&>ds describ$ 9 ?is ,act1 includ+ conflicts aris+ out ( transactions or arrangem5ts ) affiliates 7includ+ affiliates act+ z digital asset issu]s1 digital commodity deal]s1 or qualifi$ digital commodity cu/odians71 :i* may include in=mation p>titions & ! legal sep>ation ( diff]5t digital commodity transaction int]m$i>ies2 & 7ii7 to ensure t ! activities ( any p]son )9 ! digital commodity brok] or digital commodity deal] relat+ to rese>* or analysis ( ! price or m>ket = any digital commodity or act+ 9 a role ( provid+ ex*ange activities or mak+ det]m9ations z to accept+ ex*ange cu/om]s are sep>at$ by appropriate in=mational p>titions )9 ! digital commodity brok] or digital commodity deal] f ! review1 pressure1 or ov]sight ( p]sons ^: involvem5t 9 pric+1 trad+1 ex*ange1 or cle>+ activities might pot5tially bias _! judgm5t or sup]vision & contrav5e ! core pr9ciples ( op5 access & ! bus9ess conduct /&>ds describ$ 9 ?is ,act2 & 7,b7 address su* o!r issues z ! ,commission det]m9es to be appropriate4 7#e7 ,antitru/ consid]ations ,unless necess>y or appropriate to a*ieve ! purposes ( ?is ,act1 a digital commodity brok] or digital commodity deal] %all n-- 7,a7 adopt any process or take any action t results 9 any unreasonable re/ra9t ( trade2 or 7,b7 impose any mat]ial anticompetitive burd5 on trad+ or cle>+4 7j7 ,designation ( *ief compliance (fic] 7#a7 ,9 g5]al ,ea* regi/]$ digital commodity brok] & regi/]$ digital commodity deal] %all designate an individual to s]ve z a *ief compliance (fic]4 7#b7 ,duties ,! *ief compliance (fic] %all-- 7,a7 report directly to ! bo>d or to ! s5ior (fic] ( ! regi/]$ digital commodity brok] or regi/]$ digital commodity deal]2 7,b7 review ! compliance ( ! regi/]$ digital commodity brok] or regi/]$ digital commodity deal] ) respect to ! regi/]$ digital commodity brok] & regi/]$ digital commodity deal] requirem5ts describ$ 9 ?is section2 7,c7 9 consultation ) ! bo>d ( directors1 a body p]=m+ a function simil> to ! bo>d1 or ! s5ior (fic] ( ! organization1 resolve any conflicts ( int]e/ t may arise2 7,d7 be responsible = adm9i/]+ ea* policy & proc$ure t is requir$ to be e/abli%$ pursuant to ?is section2 7,e7 ensure compliance ) ?is ,act 7includ+ regulations71 includ+ ea* rule prescrib$ by ! ,commission "u ?is section2 7,f7 e/abli% proc$ures = ! rem$iation ( noncompliance issues id5tifi$ by ! *ief compliance (fic] ?r\gh any-- 7i7 compliance (fice review2 7ii7 look-back2 7iii7 int]nal or ext]nal audit f9d+2 7iv7 self-report$ error2 or 7v7 validat$ compla9t2 & 7,g7 e/abli% & foll[ appropriate proc$ures = ! h&l+1 managem5t response1 rem$iation1 rete/+1 & clos+ ( noncompliance issues4 7#c7 ,annual reports 7,a7 ,9 g5]al ,9 accordance ) rules prescrib$ by ! ,commission1 ! *ief compliance (fic] %all annually prep>e & sign a report t conta9s a description (-- 7i7 ! compliance ( ! regi/]$ digital commodity brok] or regi/]$ digital commodity deal] ) respect to ?is ,act 7includ+ regulations72 & 7ii7 ea* policy & proc$ure ( ! regi/]$ digital commodity brok] or regi/]$ digital commodity deal] ( ! *ief compliance (fic] 7includ+ ! code ( e?ics & conflict ( int]e/ policies74 7,b7 ,requirem5ts ,! *ief compliance (fic] %all ensure t a compliance report "u subp>agraph 7,a7-- 7i7 accompanies ea* appropriate f9ancial report ( ! regi/]$ digital commodity brok] or regi/]$ digital commodity deal] t is requir$ to be furni%$ to ! ,commission pursuant to ?is section2 & 7ii7 includes a c]tification t1 "u p5alty ( law1 ! compliance report is accurate & complete4 7k7 ,segregation ( digital commodities 7#a7 ,hold+ ( cu/om] assets 7,a7 ,9 g5]al ,ea* regi/]$ digital commodity brok] & regi/]$ digital commodity deal] %all hold cu/om] money1 assets1 & prop]ty 9 a mann] to m9imize ! risk ( loss to ! cu/om] or unreasonable delay 9 cu/om] access to ! money1 assets1 & prop]ty ( ! cu/om]4 7,b7 ,qualifi$ digital commodity cu/odian ,ea* regi/]$ digital commodity brok] & regi/]$ digital commodity deal] %all hold 9 a qualifi$ digital commodity cu/odian ea* unit ( a digital commodity t is-- 7i7 ! prop]ty ( a cu/om] or c\nt]p>ty ( ! digital commodity brok] or digital commodity deal]1 respectively2 or 7ii7 o!rwise s requir$ by ! ,commission to reasonably protect cu/om]s or promote ! public int]e/4 7#b7 ,segregation ( funds 7,a7 ,9 g5]al ,ea* regi/]$ digital commodity brok] & regi/]$ digital commodity deal] %all treat & deal ) all money1 assets1 & prop]ty t is receiv$ by ! regi/]$ digital commodity brok] or regi/]$ digital commodity deal]1 or accrues to a cu/om] z ! result ( trad+ 9 digital commodities1 z belong+ to ! cu/om]4 7,b7 ,comm+l+ prohibit$ 7i7 ,9 g5]al ,except z provid$ 9 clause 7ii71 ea* regi/]$ digital commodity brok] & regi/]$ digital commodity deal] %all sep>ately acc\nt = money1 assets1 & prop]ty ( a digital commodity cu/om]1 & %all n comm+le any su* money1 assets1 or prop]ty ) ! funds ( ! digital commodity brok] or digital commodity deal]1 respectively1 or use any su* money1 assets1 or prop]ty to m>g91 secure1 or gu>antee any trades or acc\nts ( any cu/om] or p]son o!r ?an ! p]son = :om ! money1 assets1 or prop]ty are held4 7ii7 ,exceptions 7,i7 ,use ( funds 7aa7 ,9 g5]al ,a regi/]$ digital commodity brok] or regi/]$ digital commodity deal] may1 = conv5i5ce1 comm+le & deposit 9 ! same acc\nt or acc\nts ) any bank1 tru/ company1 d]ivatives cle>+ organization1 or qualifi$ digital commodity cu/odian money1 assets1 & prop]ty ( cu/om]s4 7bb7 ,)drawal ,! %>e ( ! money1 assets1 & prop]ty describ$ 9 item 7aa7 z 9 ! normal c\rse ( bus9ess %all be necess>y to m>g91 gu>antee1 secure1 transf]1 adju/1 or settle a contract = sale ( a digital commodity ) a regi/]$ entity may be )drawn & appli$ to su* purposes1 includ+ ! paym5t ( commissions1 brok]age1 int]e/1 taxes1 /orage1 & o!r *>ges1 lawfully accru+ 9 connection ) ! contract4 7,,ii7 ,commission action ,9 accordance ) su* t]ms & conditions z ! ,commission may prescribe by rule1 regulation1 or ord]1 any money1 assets1 or prop]ty ( ! cu/om]s ( a regi/]$ digital commodity brok] or regi/]$ digital commodity deal] may be comm+l$ & deposit$ 9 cu/om] acc\nts ) any o!r money1 assets1 or prop]ty receiv$ by ! digital commodity brok] or digital commodity deal]1 respectively1 & requir$ by ! ,commission to be sep>ately acc\nt$ = & treat$ & dealt ) z belong+ to ! cu/om] ( ! digital commodity brok] or digital commodity deal]1 respectively4 7#c7 ,p]mitt$ inve/m5ts ,money describ$ 9 p>agraph 7#b7 may be inve/$ 9 obligations ( ! ,unit$ ,/ates1 9 g5]al obligations ( any ,/ate or ( any political subdivision ( a ,/ate1 9 obligations fully gu>ante$ z to pr9cipal & int]e/ by ! ,unit$ ,/ates1 or 9 any o!r inve/m5t t ! ,commission may by rule or regulation all[4 7#d7 ,cu/om] protection dur+ bankruptcy 7,a7 ,cu/om] prop]ty ,all money1 assets1 or prop]ty describ$ 9 p>agraph 7#b7 %all be consid]$ cu/om] prop]ty = purposes ( section #gfa ( title #aa1 ,unit$ ,/ates ,code4 7,b7 ,transactions ,a transaction involv+ a unit ( a digital commodity occurr+ ) a digital commodity deal] %all be consid]$ a contract = ! pur*ase or sale ( a commodity = future deliv]y1 on or subject to ! rules (1 a contract m>ket or bo>d ( trade = purposes ( ! def9ition ( a commodity contract 9 section #gfa ( title #aa1 ,unit$ ,/ates ,code4 7,c7 ,brok]s & deal]s ,a regi/]$ digital commodity deal] & a regi/]$ digital commodity brok] %all be consid]$ a futures commission m]*ant = purposes ( section #gfa ( title #aa1 ,unit$ ,/ates ,code4 7,d7 ,assets remov$ f segregation ,assets remov$ f segregation due to a cu/om] election "u p>agraph 7#e7 %all n be consid]$ cu/om] prop]ty = purposes ( section #gfa ( title #aa1 ,unit$ ,/ates ,code4 7#e7 ,misuse ( cu/om] prop]ty 7,a7 ,9 g5]al ,x %all be unlawful-- 7i7 = any digital commodity brok] or digital commodity deal] t has receiv$ any cu/om] money1 assets1 or prop]ty = cu/ody to dispose (1 or use any su* money1 assets1 or prop]ty z belong+ to ! digital commodity brok] or digital commodity deal]1 respectively2 or 7ii7 = any o!r p]son1 includ+ any depository1 digital commodity ex*ange1 o!r digital commodity brok]1 o!r digital commodity deal]1 or digital commodity cu/odian t has receiv$ any cu/om] money1 assets1 or prop]ty = deposit1 to hold1 dispose (1 or use any su* money1 assets1 or prop]ty1 z belong+ to ! deposit+ digital commodity brok] or digital commodity deal] or any p]son o!r ?an ! cu/om]s ( ! digital commodity brok] or digital commodity deal]1 respectively4 7,b7 ,use fur!r def9$ ,= purposes ( ?is section1 use ( a digital commodity includes utiliz+ any unit ( a digital asset to p>ticipate 9 a block*a9 s]vice def9$ 9 p>agraph 7#e7 or a dec5traliz$ gov]nance sy/em associat$ ) ! digital commodity or ! block*a9 sy/em to :i* ! digital commodity relates 9 any mann] o!r ?an t expressly direct$ by ! cu/om] f :om ! unit ( a digital commodity 0 receiv$4 7#f7 ,p>ticipation 9 block*a9 s]vices 7,a7 ,9 g5]al ,a cu/om] %all h ! "r to waive ! re/rictions 9 p>agraph 7#a7 = any unit ( a digital commodity1 by affirmatively elect+1 9 writ+ to ! digital commodity brok] or digital commodity deal]1 to waive ! re/rictions4 7,b7 ,use ( funds ,cu/om] digital commodities remov$ f segregation "u subp>agraph 7,a7 may be pool$ & us$ by ! digital commodity brok] or digital commodity deal]1 or "o ( _! designees1 to provide a block*a9 s]vice = a block*a9 sy/em to :i* ! unit ( ! digital asset remov$ f segregation 9 subp>agraph 7,a7 relates4 7,c7 ,limitations ,! ,commission may1 by rule1 e/abli% notice & disclosure requirem5ts1 & any o!r limitations & rules relat$ to ! waiv+ ( any re/rictions "u ?is p>agraph t are reasonably necess>y to protect cu/om]s1 includ+ eligible contract p>ticipants1 non-eligible contract p>ticipants1 or any o!r class ( cu/om]s4 7,d7 ,block*a9 s]vice def9$ ,9 ?is subp>agraph1 ! t]m block*a9 s]vice means any activity relat+ to validat+ transactions on a block*a9 sy/em1 provid+ security = a block*a9 sy/em1 or o!r simil> activity requir$ = ! ongo+ op]ation ( a block*a9 sy/em4 7l7 ,f$]al preemption ,not)/&+ any o!r provision ( law1 ! ,commission %all h exclusive jurisdiction ov] any digital commodity brok] or digital commodity deal] regi/]$ "u ?is section4 7m7 ,exemptions ,9 ord] to promote responsible economic or f9ancial innovation & fair competition1 or protect cu/om]s1 ! ,commission may 7on its own initiative or on application ( ! regi/]$ digital commodity brok] or regi/]$ digital commodity deal]7 exempt1 unconditionally or on /at$ t]ms or conditions1 or = /at$ p]iods1 & retroactively or prospectively1 or bo?1 a regi/]$ digital commodity brok] or regi/]$ digital commodity deal] f ! requirem5ts ( ?is section1 if ! ,commission det]m9es t-- 7#a7 7,a7 ! exemption w\ld be consi/5t ) ! public int]e/ & ! purposes ( ?is ,act2 & 7,b7 ! exemption w n h a mat]ial adv]se effect on ! ability ( ! ,commission or ! digital commodity brok] or digital commodity deal] to dis*>ge regulatory duties "u ?is ,act2 or 7#b7 ! regi/]$ digital commodity brok] or regi/]$ digital commodity deal] is subject to comp>able1 compreh5sive sup]vision & regulation by ! appropriate gov]nm5t au?orities 9 ! home c\ntry ( ! regi/]$ digital commodity brok] or regi/]$ digital commodity deal]1 respectively4 7n7 ,treatm5t "u ! ,bank ,secrecy ,act ,a regi/]$ digital commodity brok] & a regi/]$ digital commodity deal] %all be treat$ z a f9ancial in/itution = purposes ( ! ,bank ,secrecy ,act4 4 #djg4 ,regi/ration ( associat$ p]sons 7a7 ,9 g5]al ,section #dk ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #fk7 is am5d$-- 7#a7 by r$esignat+ subsections 7#d7 ?r\gh 7#f7 z subsections 7#e7 ?r\gh 7#g71 respectively2 & 7#b7 by ins]t+ aft] subsection 7#c7 ! foll[+3 7#d7 ,x %all be unlawful = any p]son to act z an associat$ p]son ( a digital commodity brok] or an associat$ p]son ( a digital commodity deal] unless ! p]son is regi/]$ ) ! ,commission "u ?is ,act & su* regi/ration %all n h expir$1 be5 susp5d$ 7& ! p]iod ( susp5sion has n expir$71 or be5 revok$4 ,x %all be unlawful = a digital commodity brok] or a digital commodity deal] to p]mit su* a p]son to become or rema9 associat$ ) ! digital commodity brok] or digital commodity deal] if ! digital commodity brok] or digital commodity deal] knew or %\ld h kn[n t ! p]son 0 n s regi/]$ or t ! regi/ration _h expir$1 be5 susp5d$ 7& ! p]iod ( susp5sion has n expir$71 or be5 revok$4 2 & 7#c7 9 subsection 7#e7 7z s r$esignat$71 by /rik+ or ( a commodity trad+ advisor & ins]t+ ( a commodity trad+ advisor1 ( a digital commodity brok]1 or ( a digital commodity deal]4 7b7 ,con=m+ am5dm5ts ,! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a et seq47 is am5d$ by /rik+ section #dk7#f7 ea* place x appe>s & ins]t+ section #dk7#g74 #djh4 ,regi/ration ( commodity pool op]ators & commodity trad+ advisors ,section #dm7#c7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #fm7#c77 is am5d$-- 7#a7 9 subp>agraph 7,a7-- 7,a7 by /rik+ any commodity trad+ advisor & ins]t+ a commodity pool op]ator or commodity trad+ advisor2 & 7,b7 by /rik+ act+ z a commodity trad+ advisor & ins]t+ act+ z a commodity pool op]ator or commodity trad+ advisor2 & 7#b7 9 subp>agraph 7,c71 by ins]t+ digital commodities1 aft] physical commodities14 #dji4 ,exclusion = ancill>y activities ,! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq471 z am5d$ by ! prec$+ provisions ( ?is ,act1 is am5d$ by ins]t+ aft] section #du ! foll[+3 #dv4 ,exclusion = ancill>y activities 7a7 ,9 g5]al ,not)/&+ any o!r provision ( ?is ,act1 a p]son %all n be subject to ?is ,act & ! regulations promulgat$ "u ?is ,act solely bas$ on ! p]son und]tak+ any ancill>y activities4 7b7 ,exceptions ,subsection 7a7 %all n be con/ru$ to apply to ! antimanipulation1 antifraud1 or false report+ en=cem5t au?orities ( ! ,commission4 7c7 ,ancill>y activities def9$ ,9 ?is section1 ! t]m ancill>y activities means any ( ! foll[+ activities relat$ to ! op]ation ( a block*a9 sy/em3 7#a7 ,compil+ network transactions1 op]at+ a pool1 relay+1 se>*+1 sequ5c+1 validat+1 or act+ 9 a simil> capacity ) respect to a digital commodity transaction4 7#b7 ,provid+ computational "w1 op]at+ a node1 or procur+1 (f]+1 or utiliz+ network b&wid?1 or o!r simil> incid5tal s]vices ) respect to a digital commodity transaction4 7#c7 ,provid+ a us] int]face t enables a us] to read1 & access data ab\t a block*a9 sy/em1 s5d messages1 or o!rwise int]act ) a block*a9 sy/em4 7#d7 ,develop+1 publi%+1 con/itut+1 adm9i/]+1 ma9ta9+1 or o!rwise di/ribut+ a block*a9 sy/em4 7#e7 ,develop+1 publi%+1 con/itut+1 adm9i/]+1 ma9ta9+1 or o!rwise di/ribut+ s(tw>e or sy/ems t create or deploy h>dw>e or s(tw>e1 includ+ wallets or o!r sy/ems1 facilitat+ an individual us]'s own p]sonal ability to keep1 safegu>d1 or cu/ody a us]'s digital commodities or relat$ private keys4 4 #daj4 ,effective date ,unless o!rwise provid$ 9 ?is title1 ?is title & ! am5dm5ts made by ?is title %all take effect #cfj days aft] ! date ( enactm5t ( ?is ,act1 except t1 to ! ext5t a provision ( ?is title requires a rulemak+1 ! provision %all take effect on ! lat] (-- 7#a7 #cfj days aft] ! date ( enactm5t ( ?is ,act2 or 7#b7 #fj days aft] ! publication 9 ! ,f$]al ,regi/] ( ! f9al rule implem5t+ ! provision4 ,v ,innovation & ,te*nology ,improvem5ts #eja4 ,codification ( ! ,,sec ,/rategic ,hub = ,innovation & ,f9ancial ,te*nology ,section #d ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;d7 is am5d$ by add+ at ! end ! foll[+3 7l7 ,/rategic ,hub = ,innovation & ,f9ancial ,te*nology 7#a7 ,(fice e/abli%$ ,!re is e/abli%$ )9 ! ,commission ! ,/rategic ,hub = ,innovation & ,f9ancial ,te*nology 7ref]r$ to 9 ?is section z ! ,fin,hub74 7#b7 ,purposes ,! purposes ( ,fin,hub are z foll[s3 7,a7 ,to assi/ 9 %ap+ ! approa* ( ! ,commission to te*nological advancem5ts 9 ! f9ancial indu/ry4 7,b7 ,to exam9e f9ancial te*nology innovations )9 capital m>kets1 m>ket p>ticipants1 & inve/ors4 7,c7 ,to coord9ate ! response ( ! ,commission to em]g+ te*nologies 9 f9ancial1 regulatory1 & sup]visory sy/ems4 7#c7 ,director ( ,fin,hub ,fin,hub %all h a ,director :o %all be appo9t$ by ! ,commission1 f among individuals hav+ exp]i5ce 9 bo? em]g+ te*nologies & ,f$]al securities law & s]ve at ! pleasure ( ! ,commission4 ,! ,director %all report directly to ! ,commission & p]=m su* functions & duties z ! ,commission may prescribe4 7#d7 ,responsibilities ,fin,hub %all-- 7,a7 fo/] responsible te*nological innovation & fair competition )9 ! ,commission1 includ+ ar\nd f9ancial te*nology1 regulatory te*nology1 & sup]visory te*nology2 7,b7 provide int]nal education & tra9+ to ! ,commission reg>d+ f9ancial te*nology2 7,c7 advise ! ,commission reg>d+ f9ancial te*nology t w\ld s]ve ! ,commission's ov]sight functions2 7,d7 analyze te*nological advancem5ts & ! impact ( regulatory requirem5ts on f9ancial te*nology companies2 7,e7 advise ! ,commission ) respect to rulemak+s or o!r ag5cy or /aff action reg>d+ f9ancial te*nology2 7,f7 provide bus9esses work+ 9 em]g+ f9ancial te*nology fields ) in=mation on ! ,commission1 its rules & regulations2 & 7,g7 enc\rage firms work+ 9 em]g+ te*nology fields to engage ) ! ,commission & obta9 fe$back f ! ,commission on pot5tial regulatory issues4 7#e7 ,access to docum5ts ,! ,commission %all ensure t ,fin,hub has full access to ! docum5ts & in=mation ( ! ,commission & any self-regulatory organization1 z necess>y to c>ry out ! functions ( ,fin,hub4 7#f7 ,report to ,congress 7,a7 ,9 g5]al ,n lat] ?an ,octob] #ca ( ea* ye> aft] #bjbd1 ,fin,hub %all submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives a report on ! activities ( ,fin,hub dur+ ! imm$iately prec$+ fiscal ye>4 7,b7 ,cont5ts ,ea* report requir$ "u subp>agraph 7,a7 %all include-- 7i7 ! total numb] ( p]sons t met ) ,fin,hub2 7ii7 ! total numb] ( m>ket p>ticipants ,fin,hub met )1 includ+ ! classification ( ^? p>ticipants2 7iii7 a summ>y ( g5]al issues discuss$ dur+ meet+s ) p]sons2 7iv7 in=mation on /eps ,fin,hub has tak5 to improve ,commission s]vices1 includ+ responsiv5ess to ! conc]ns ( p]sons2 7v7 recomm5dations-- 7,i7 ) respect to ! regulations ( ! ,commission & ! guidance & ord]s ( ! ,commission2 & 7,,ii7 = su* legislative actions z ! ,fin,hub det]m9es appropriate2 & 7vi7 any o!r in=mation1 z det]m9$ appropriate by ! ,director ( ,fin,hub4 7,c7 ,confid5tiality ,a report "u subp>agraph 7,a7 may n conta9 confid5tial in=mation4 7#g7 ,sy/ems ( records 7,a7 ,9 g5]al ,! ,commission %all e/abli% a detail$ sy/em ( records 7z def9$ "u section #eeb;a ( title #e1 ,unit$ ,/ates ,code7 to assi/ ,fin,hub 9 communicat+ ) int]e/$ p>ties4 7,b7 ,entities cov]$ by ! sy/em ,entities cov]$ by ! sy/em requir$ "u subp>agraph 7,a7 include entities or p]sons submitt+ reque/s or inquiries & o!r in=mation to ,commission ?r\gh ,fin,hub4 7,c7 ,security & /orage ( records ,fin,hub %all /ore-- 7i7 electronic records-- 7,i7 9 ! sy/em requir$ "u subp>agraph 7,a72 or 7,,ii7 on ! secure network or o!r electronic m$ium1 su* z encrypt$ h>d drives or back-up m$ia1 ( ! ,commission2 & 7ii7 pap] records 9 secure facilities4 7#h7 ,effective date ,?is subsection %all take effect on ! date t is #ahj days aft] ! date ( ! enactm5t ( ?is subsection4 4 #ejb4 ,codification ( ,lab,c,f,t,c 7a7 ,9 g5]al ,section #ah ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #bb7 is am5d$ by add+ at ! end ! foll[+3 7c7 ,lab,c,f,t,c 7#a7 ,e/abli%m5t ,!re is e/abli%$ 9 ! ,commission ,lab,c,f,t,c4 7#b7 ,purpose ,! purposes ( ,lab,c,f,t,c are to-- 7,a7 promote responsible f9ancial te*nology innovation & fair competition = ! b5efit ( ! ,am]ican public2 7,b7 s]ve z an in=mation plat=m to in=m ! ,commission ab\t new f9ancial te*nology innovation2 & 7,c7 provide outrea* to f9ancial te*nology innovators to discuss _! innovations & ! regulatory framework e/abli%$ by ?is ,act & ! regulations promulgat$ !reund]4 7#c7 ,director ,lab,c,f,t,c %all h a ,director1 :o %all be appo9t$ by ! ,commission & s]ve at ! pleasure ( ! ,commission4 ,not)/&+ section #b7;a77#f77;,a71 ! ,director %all report directly to ! ,commission & p]=m su* functions & duties z ! ,commission may prescribe4 7#d7 ,duties ,lab,c,f,t,c %all-- 7,a7 advise ! ,commission ) respect to rulemak+s or o!r ag5cy or /aff action reg>d+ f9ancial te*nology2 7,b7 provide int]nal education & tra9+ to ! ,commission reg>d+ f9ancial te*nology2 7,c7 advise ! ,commission reg>d+ f9ancial te*nology t w\ld bol/] ! ,commission's ov]sight functions2 7,d7 engage ) academia1 /ud5ts1 & pr(essionals on f9ancial te*nology issues1 ideas1 & te*nology relevant to activities "u ?is ,act2 7,e7 provide p]sons work+ 9 em]g+ te*nology fields ) in=mation on ! ,commission1 its rules & regulations1 & ! role ( a regi/]$ futures association2 & 7,f7 enc\rage p]sons work+ 9 em]g+ te*nology fields to engage ) ! ,commission & obta9 fe$back f ! ,commission on pot5tial regulatory issues4 7#e7 ,access to docum5ts ,! ,commission %all ensure t ,lab,c,f,t,c has full access to ! docum5ts & in=mation ( ! ,commission & any self-regulatory organization or regi/]$ futures association1 z necess>y to c>ry out ! functions ( ,lab,c,f,t,c4 7#f7 ,report to ,congress 7,a7 ,9 g5]al ,n lat] ?an ,octob] #ca ( ea* ye> aft] #bjbd1 ,lab,c,f,t,c %all submit to ! ,committee on ,agriculture ( ! ,h\se ( ,repres5tatives & ! ,committee on ,agriculture1 ,nutrition1 & ,=e/ry ( ! ,s5ate a report on its activities4 7,b7 ,cont5ts ,ea* report requir$ "u p>agraph 7#a7 %all include-- 7i7 ! total numb] ( p]sons t met ) ,lab,c,f,t,c2 7ii7 a summ>y ( g5]al issues discuss$ dur+ meet+s ) ! p]son2 7iii7 in=mation on /eps ,lab,c,f,t,c has tak5 to improve ,commission s]vices1 includ+ responsiv5ess to ! conc]ns ( p]sons2 7iv7 recomm5dations made to ! ,commission ) respect to ! regulations1 guidance1 & ord]s ( ! ,commission & su* legislative actions z may be appropriate2 & 7v7 any o!r in=mation det]m9$ appropriate by ! ,director ( ,lab,c,f,t,c4 7,c7 ,confid5tiality ,a report "u p>agraph 7,a7 %all abide by ! confid5tiality requirem5ts 9 section #h4 7#g7 ,sy/ems ( records 7,a7 ,9 g5]al ,! ,commission %all e/abli% a detail$ sy/em ( records 7z def9$ 9 section #eeb;a ( title #e1 ,unit$ ,/ates ,code7 to assi/ ,lab,c,f,t,c 9 communicat+ ) int]e/$ p>ties4 7,b7 ,p]sons cov]$ by ! sy/em ,! p]sons cov]$ by ! sy/em ( records %all include p]sons submitt+ reque/s or inquiries & o!r in=mation to ! ,commission ?r\gh ,lab,c,f,t,c4 7,c7 ,security & /orage ( records ,! sy/em ( records %all /ore records electronically or on pap] 9 secure facilities1 & %all /ore electronic records on ! secure network ( ! ,commission & on o!r electronic m$ia1 su* z encrypt$ h>d drives & back-up m$ia1 z ne$$4 4 7b7 ,con=m+ am5dm5ts ,section #b7;a77#f77;,a7 ( su* ,act 7#g ,u4,s4,c4 #b7;a77#f77;,a77 is am5d$-- 7#a7 by /rik+ p>agraph & 9 & ins]t+ p>agraph12 & 7#b7 by ins]t+ & section #ah7;c77#c71 be=e ! executive4 7c7 ,effective date ,! ,commodity ,futures ,trad+ ,commission %all implem5t ! am5dm5ts made by ?is section 7includ+ comply+ ) section #ah7;c77#g7 ( ! ,commodity ,ex*ange ,act7 )9 #ahj days aft] ! date ( ! enactm5t ( ?is ,act4 #ejc4 ,,cftc-,,sec ,jo9t ,advisory ,committee on ,digital ,assets 7a7 ,e/abli%m5t ,! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission 79 ?is section ref]r$ to z ! ,commissions7 %all jo9tly e/abli% ! ,jo9t ,advisory ,committee on ,digital ,assets 79 ?is section ref]r$ to z ! ,committee74 7b7 ,purpose 7#a7 ,9 g5]al ,! ,committee %all-- 7,a7 provide ! ,commissions ) advice on ! rules1 regulations1 & policies ( ! ,commissions relat$ to digital assets2 7,b7 fur!r ! regulatory h>monization ( digital asset policy betwe5 ! ,commissions2 7,c7 exam9e & dissem9ate me?ods = describ+1 measur+1 & quantify+ digital asset-- 7i7 dec5tralization2 7ii7 functionality2 7iii7 in=mation asymmetries2 & 7iv7 transaction & network security2 7,d7 exam9e ! pot5tial = digital assets1 block*a9 sy/ems1 & di/ribut$ l$g] te*nology to improve effici5cy 9 ! op]ation ( f9ancial m>ket infra/ructure & bett] protect f9ancial m>ket p>ticipants1 includ+ s]vices & sy/ems :i* provide-- 7i7 improv$ cu/om] protections2 7ii7 public availability ( in=mation2 7iii7 great] transp>5cy reg>d+ cu/om] funds2 7iv7 r$uc$ transaction co/2 & 7v7 increas$ access to f9ancial m>ket s]vices2 & 7,e7 discuss ! implem5tation by ! ,commissions ( ?is ,act & ! am5dm5ts made by ?is ,act4 7#b7 ,review by ,ag5cies ,ea* ,commission %all-- 7,a7 review ! f9d+s & recomm5dations ( ! ,committee2 7,b7 promptly issue a public /atem5t ea* "t ! ,committee submits a f9d+ or recomm5dation to a ,commission-- 7i7 assess+ ! f9d+ or recomm5dation ( ! ,committee2 7ii7 disclos+ ! action or decision n to take action made by ! ,commission 9 response to a f9d+ or recomm5dation2 & 7iii7 expla9+ ! reasons = ! action or decision n to take action2 & 7,c7 ea* "t ! ,committee submits a f9d+ or recomm5dation to a ,commission1 provide ! ,committee ) a =mal response to ! f9d+ or recomm5dation n lat] ?an #c mon?s aft] ! date ( ! submission ( ! f9d+ or recomm5dation4 7c7 ,memb]%ip & lead]%ip 7#a7 ,non-f$]al memb]s 7,a7 ,9 g5]al ,! ,commissions %all appo9t at lea/ #bj nongov]nm5tal /akehold]s ) a wide div]sity ( op9ion & :o repres5t a broad spectrum ( int]e/s repres5t+ ! digital asset ecosy/em1 equally divid$ betwe5 ! ,commissions1 to s]ve z memb]s ( ! ,committee4 ,! appo9tees %all include-- 7i7 digital asset issu]s2 7ii7 p]sons regi/]$ ) ! ,commissions & engag$ 9 digital asset relat$ activities2 7iii7 individuals engag$ 9 academic rese>* relat+ to digital assets2 & 7iv7 digital asset us]s4 7,b7 ,memb]s n ,commission employees ,memb]s appo9t$ "u subp>agraph 7,a7 %all n be deem$ to be employees or ag5ts ( a ,commission solely by reason ( memb]%ip on ! ,committee4 7#b7 ,co-designat$ ,f$]al (fic]s 7,a7 ,numb]2 appo9tm5t ,!re %all be #b co-designat$ ,f$]al (fic]s ( ! ,committee1 z foll[s3 7i7 ,! ,director ( ,lab,c,f,t,c ( ! ,commodity ,futures ,trad+ ,commission4 7ii7 ,! ,director ( ! ,/rategic ,hub = ,innovation & ,f9ancial ,te*nology ( ! ,securities & ,ex*ange ,commission4 7,b7 ,duties ,! duties requir$ by *apt] #aj ( title #e1 ,unit$ ,/ates ,code1 to be c>ri$ out by a designat$ ,f$]al (fic] ) respect to ! ,committee %all be %>$ by ! co-designat$ ,f$]al (fic]s ( ! ,committee4 7#c7 ,committee lead]%ip 7,a7 ,composition2 election ,! ,committee memb]s %all elect1 f among ! ,committee memb]s-- 7i7 a *air2 7ii7 a vice *air2 7iii7 a secret>y2 & 7iv7 an assi/ant secret>y4 7,b7 ,t]m ( (fice ,ea* memb] elect$ "u subp>agraph 7,a7 9 a #b-ye> p]iod ref]r$ to 9 section #ajac7;b77#b7 ( title #e1 ,unit$ ,/ates ,code1 %all s]ve 9 ! capacity = :i* ! memb] 0 s elect$1 until ! end ( ! #b-ye> p]iod4 7d7 ,no comp5sation = ,committee memb]s 7#a7 ,non-,f$]al memb]s ,all ,committee memb]s appo9t$ "u subsection 7c77#a7 %all-- 7,a7 s]ve )\t comp5sation2 & 7,b7 :ile away f ! home or regul> place ( bus9ess ( ! memb] 9 ! p]=mance ( s]vices = ! ,committee1 be all[$ travel exp5ses1 includ+ p] diem 9 lieu ( subsi/5ce1 9 ! same mann] z p]sons employ$ int]mitt5tly 9 ! ,gov]nm5t s]vice are all[$ exp5ses "u section #egjc7;b7 ( title #e1 ,unit$ ,/ates ,code4 7#b7 ,no comp5sation = co-designat$ ,f$]al (fic]s ,! co-designat$ ,f$]al (fic]s %all s]ve )\t comp5sation 9 addition to t receiv$ = _! s]vices z (fic]s or employees ( ! ,unit$ ,/ates4 7e7 ,frequ5cy ( meet+s ,! ,committee %all meet-- 7#a7 n less frequ5tly ?an twice annually2 & 7#b7 at su* o!r times z ei!r ,commission may reque/4 7f7 ,duration ,section #ajac7;a77#b7 ( title #e1 ,unit$ ,/ates ,code1 %all n apply to ! ,committee4 7g7 ,"t limits ,! ,commissions %all-- 7#a7 adopt a jo9t *>t] = ! ,committee )9 #ij days aft] ! date ( ! enactm5t ( ?is section2 7#b7 appo9t memb]s to ! ,committee )9 #abj days aft] su* date ( enactm5t2 & 7#c7 hold ! initial meet+ ( ! ,committee )9 #ahj days aft] su* date ( enactm5t4 7h7 ,fund+ ,! ,commissions %all jo9tly fund ! ,committee4 #ejd4 ,/udy on dec5traliz$ f9ance 7a7 ,9 g5]al ,! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all jo9tly c>ry out a /udy on dec5traliz$ f9ance t analyzes-- 7#a7 ! nature1 size1 role1 & use ( dec5traliz$ f9ance block*a9 protocols2 7#b7 ! op]ation ( block*a9 protocols t comprise dec5traliz$ f9ance2 7#c7 ! int]op]ability ( block*a9 protocols & block*a9 sy/ems2 7#d7 ! int]op]ability ( block*a9 protocols & s(tw>e-bas$ sy/ems1 includ+ websites & wallets2 7#e7 ! dec5traliz$ gov]nance sy/ems ?r\gh :i* block*a9 protocols may be develop$1 publi%$1 con/itut$1 adm9i/]$1 ma9ta9$1 or o!rwise di/ribut$1 includ+-- 7,a7 :e!r ! sy/ems enhance or detract f-- 7i7 ! dec5tralization ( ! dec5traliz$ f9ance2 & 7ii7 ! inh]5t risks ( ! dec5traliz$ gov]nance sy/em2 & 7,b7 any proc$ures or requirem5ts t w\ld mitigate ! risks id5tifi$ 9 subp>agraph 7,a77ii72 7#f7 ! b5efits ( dec5traliz$ f9ance1 includ+-- 7,a7 op]ational resili5ce & int]op]ability ( block*a9-bas$ sy/ems2 7,b7 m>ket competition & innovation2 7,c7 transaction effici5cy2 7,d7 transp>5cy & traceability ( transactions2 & 7,e7 dis9t]m$iation2 7#g7 ! risks ( dec5traliz$ f9ance1 includ+-- 7,a7 pseudonymity ( us]s & transactions2 7,b7 dis9t]m$iation2 & 7,c7 cyb]security vuln]abilities2 7#h7 ! ext5t to :i* dec5traliz$ f9ance has integrat$ ) ! traditional f9ancial m>kets & any pot5tial risks to /ability ( ! m>kets2 7#i7 h[ ! levels ( illicit activity 9 dec5traliz$ f9ance comp>e ) ! levels ( illicit activity 9 traditional f9ancial m>kets2 7#aj7 h[ dec5traliz$ f9ance may increase ! accessibility ( cross-bord] transactions2 & 7#aa7 ! feasibility ( emb$d+ self-execut+ compliance & risk controls into dec5traliz$ f9ance4 7b7 ,report ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all jo9tly submit to ! relevant congressional committees a report t includes ! results ( ! /udy requir$ by subsection 7a74 7c7 ,,gao ,/udy ,! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all-- 7#a7 c>ry out a /udy on dec5traliz$ f9ance t analyzes ! in=mation describ$ "u p>agraphs 7#a7 ?r\gh 7#aa7 ( subsection 7a72 & 7#b7 n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 submit to ! relevant congressional committees a report t includes ! results ( ! /udy requir$ by p>agraph 7#a74 7d7 ,def9itions ,9 ?is section3 7#a7 ,dec5traliz$ f9ance 7,a7 ,9 g5]al ,! t]m dec5traliz$ f9ance means block*a9 protocols t all[ us]s to engage 9 f9ancial transactions 9 a self-direct$ mann] s t a ?ird-p>ty int]m$i>y does n effectuate ! transactions or take cu/ody ( digital assets ( a us] dur+ any "p ( ! transactions4 7,b7 ,relation%ip to ancill>y activities ,! t]m dec5traliz$ f9ance %all n be int]pret$ to limit or exclude any activity f ! mean+ ( ancill>y activities1 z def9$ 9 section #ae;,h7c7 ( ! ,securities ,ex*ange ,act ( #aicd or section #dv7c7 ( ! ,commodity ,ex*ange ,act4 7#b7 ,relevant congressional committees ,! t]m relevant congressional committees means-- 7,a7 ! ,committees on ,f9ancial ,s]vices & ,agriculture ( ! ,h\se ( ,repres5tatives2 & 7,b7 ! ,committees on ,bank+1 ,h\s+1 & ,urban ,affairs & ,agriculture1 ,nutrition1 & ,=e/ry ( ! ,s5ate4 #eje4 ,/udy on non-fungible digital assets 7a7 ,! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all c>ry out a /udy ( non-fungible digital assets t analyzes-- 7#a7 ! nature1 size1 role1 purpose1 & use ( non-fungible digital assets2 7#b7 ! simil>ities & diff]5ces betwe5 non-fungible digital assets & o!r digital assets1 includ+ digital commodities & paym5t /ableco9s1 & h[ ! m>kets = ^? digital assets int]sect ) ea* o!r2 7#c7 h[ non-fungible digital assets are m9t$ by issu]s & subsequ5tly adm9i/]$ to pur*as]s2 7#d7 h[ non-fungible digital assets are /or$ aft] be+ pur*as$ by a consum]2 7#e7 ! int]op]ability ( non-fungible digital assets betwe5 diff]5t block*a9 sy/ems2 7#f7 ! scalability ( diff]5t non-fungible digital asset m>ketplaces2 7#g7 ! b5efits ( non-fungible digital assets1 includ+ v]ifiable digital own]%ip2 7#h7 ! risks ( non-fungible tok5s1 includ+-- 7,a7 intellectual prop]ty rights2 7,b7 cyb]security risks2 & 7,c7 m>ket risks2 7#i7 :e!r & h[ non-fungible digital assets h integrat$ ) traditional m>ketplaces1 includ+ ^? = music1 real e/ate1 gam+1 ev5ts1 & travel2 7#aj7 :e!r non-fungible tok5s c be us$ to facilitate comm]ce or o!r activities ?r\gh ! repres5tation ( docum5ts1 id5tification1 contracts1 lic5ses1 & o!r comm]cial1 gov]nm5t1 or p]sonal records2 7#aa7 any pot5tial risks to traditional m>kets f su* integration2 & 7#ab7 ! levels & types ( illicit activity 9 non-fungible digital asset m>kets4 7b7 ,report ,n lat] ?an #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ,comm]ce1 %all make publicly available a report t includes ! results ( ! /udy requir$ by subsection 7a74 #ejf4 ,/udy on exp&+ f9ancial lit]acy among/ digital asset hold]s 7a7 ,9 g5]al ,! ,commodity ,futures ,trad+ ,commission ) ! ,securities & ,ex*ange ,commission %all jo9tly conduct a /udy to id5tify-- 7#a7 ! exi/+ level ( f9ancial lit]acy among retail digital asset hold]s1 includ+ subgr\ps ( inve/ors id5tifi$ by ! ,commodity ,futures ,trad+ ,commission ) ! ,securities & ,ex*ange ,commission2 7#b7 me?ods to improve ! tim+1 cont5t1 & =mat ( f9ancial lit]acy mat]ials reg>d+ digital assets provid$ by ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission2 7#c7 me?ods to improve coord9ation betwe5 ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission ) o!r ag5cies1 includ+ ! ,f9ancial ,lit]acy & ,education ,commission z well z nonpr(it organizations & ,/ate & local jurisdictions1 to bett] dissem9ate f9ancial lit]acy mat]ials2 7#d7 ! efficacy ( curr5t f9ancial lit]acy ef=ts ) a focus on rural communities & communities ) majority m9ority populations2 7#e7 ! mo/ useful & und]/&able relevant in=mation t retail digital asset hold]s ne$ to make in=m$ f9ancial decisions be=e engag+ ) or pur*as+ a digital asset or s]vice t is typically sold to retail inve/ors ( digital assets2 7#f7 ! mo/ effective public-private p>tn]%ips 9 provid+ f9ancial lit]acy reg>d+ digital assets to consum]s2 7#g7 ! mo/ relevant metrics to measure successful improvem5t ( ! f9ancial lit]acy ( an individual aft] engag+ ) f9ancial lit]acy ef=ts2 & 7#h7 9 consultation ) ! ,f9ancial ,lit]acy & ,education ,commission1 a /rategy 7includ+ to ! ext5t practicable1 measurable goals & objectives7 to increase f9ancial lit]acy ( inve/ors reg>d+ digital assets4 7b7 ,report ,n lat] ?an #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all jo9tly submit a writt5 report on ! /udy requir$ by subsection 7a7 to ! ,committees on ,f9ancial ,s]vices & on ,agriculture ( ! ,h\se ( ,repres5tatives & ! ,committees on ,bank+1 ,h\s+1 & ,urban ,affairs & on ,agriculture1 ,nutrition1 & ,=e/ry ( ! ,s5ate4 #ejg4 ,/udy on f9ancial m>ket infra/ructure improvem5ts 7a7 ,9 g5]al ,! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all jo9tly conduct a /udy to assess :e!r additional guidance or rules are necess>y to facilitate ! developm5t ( tok5iz$ securities & d]ivatives products1 & to ! ext5t su* guidance or rules w\ld fo/] ! developm5t ( fair & ord]ly f9ancial m>kets1 be necess>y or appropriate 9 ! public int]e/1 & be consi/5t ) ! protection ( inve/ors & cu/om]s4 7b7 ,report 7#a7 ,"t limit ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all jo9tly submit to ! relevant congressional committees a report t includes ! results ( ! /udy requir$ by subsection 7a74 7#b7 ,relevant congressional committees def9$ ,9 ?is section1 ! t]m relevant congressional committees means-- 7,a7 ! ,committees on ,f9ancial ,s]vices & on ,agriculture ( ! ,h\se ( ,repres5tatives2 & 7,b7 ! ,committees on ,bank+1 ,h\s+1 & ,urban ,affairs & on ,agriculture1 ,nutrition1 & ,=e/ry ( ! ,s5ate4 ,,vi ,miscellane\s #fja4 ,f9d+s2 s5se ( ,congress 7a7 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,entrepr5eurs & innovators are build+ & deploy+ ?is next g5]ation ( ! int]net4 7#b7 ,digital asset networks repres5t a new way = p to jo9 toge!r & coop]ate ) "o ano!r to und]take c]ta9 activities4 7#c7 ,digital assets h ! pot5tial to be ! f\ndational build+ blocks ( ^! networks1 align+ ! economic inc5tive = individuals to coop]ate ) "o ano!r to a*ieve a common purpose4 7#d7 ,! digital asset ecosy/em has ! pot5tial to gr[ our economy & improve ev]yday lives ( ,am]icans by facilitat+ collaboration ?r\gh ! use ( te*nology to manage activities1 allocate res\rces1 & facilitate decision mak+4 7#e7 ,block*a9 networks & ! digital assets !y emp[] provide creator control1 enhance transp>5cy1 r$uce transaction co/s1 & increase effici5cy if prop] protections are put 9 place = inve/ors1 consum]s1 our f9ancial sy/em1 & our national security4 7#f7 ,block*a9 te*nology facilitates new types ( network p>ticipation :i* bus9esses 9 ! ,unit$ ,/ates may utilize 9 innovative ways4 7#g7 ,o!r digital asset companies are sett+ up _! op]ations outside ( ! ,unit$ ,/ates1 :]e c\ntries are e/abli%+ frameworks to embrace ! pot5tial ( block*a9 te*nology & digital assets & provide safegu>ds = consum]s4 7#h7 ,digital assets1 despite ! purport$ anonymity1 provide law en=cem5t ) an exceptional trac+ tool to id5tify illicit activity & br+ crim9als to ju/ice4 7#i7 ,! ,f9ancial ,s]vices ,committee ( ! ,h\se ( ,repres5tatives has held multiple he>+s highlight+ v>i\s risks t digital assets c pose to ! f9ancial m>kets1 consum]s1 & inve/ors t mu/ be address$ z we seek to h>ness ! b5efits ( ^! innovations4 7b7 ,s5se ( ,congress ,x is ! s5se ( ,congress t-- 7#a7 ! ,unit$ ,/ates %\ld seek to prioritize und]/&+ ! pot5tial opportunities ( ! next g5]ation ( ! int]net2 7#b7 ! ,unit$ ,/ates %\ld seek to fo/] advances 9 te*nology t h robu/ evid5ce indicat+ !y c improve our f9ancial sy/em & create m fair & equitable access to f9ancial s]vices = ev]yday ,am]icans :ile protect+ our f9ancial sy/em1 inve/ors1 & consum]s2 7#c7 ! ,unit$ ,/ates mu/ support ! responsible developm5t ( digital assets & ! und]ly+ te*nology 9 ! ,unit$ ,/ates or risk ! %ift+ ( ! developm5t ( su* assets & te*nology outside ( ! ,unit$ ,/ates1 to less regulat$ c\ntries2 7#d7 ,congress %\ld consult ) public & private sector /akehold]s to und]/& h[ to enact a functional framework tailor$ to ! specific risks & unique b5efits ( diff]5t digital asset-relat$ activities1 di/ribut$ l$g] te*nology1 di/ribut$ networks1 & dec5traliz$ sy/ems2 & 7#e7 enact a functional framework tailor$ to ! specific risks ( diff]5t digital asset-relat$ activities & unique b5efits ( di/ribut$ l$g] te*nology1 di/ribut$ networks1 & dec5traliz$ sy/ems2 & 7#f7 consum]s & m>ket p>ticipants w b5efit f a framework = digital assets consi/5t ) long/&+ inve/or protections 9 securities & commodities m>kets1 yet tailor$ to ! unique b5efits & risks ( ! digital asset ecosy/em4 ,may #f1 #bjbd ,report$ f ! ,committee on ,agriculture ) an am5dm5t ,may #f1 #bjbd ,report$ f ! ,committee on ,f9ancial ,s]vices ) an am5dm5t2 committ$ to ! ,committee ( ! ,:ole ,h\se on ! ,/ate ( ! ,union & ord]$ to be pr9t$