,,ii #aah? ,,congress #a/ ,session ,s4 #aceg ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,april #bg1 #bjbc,ms4 ,s9ema 7= h]self & ,ms4 ,lummis7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ,a ,,bill ,to address adv]tis+ by digital asset int]m$i>ies1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,responsible ,digital ,asset ,adv]tis+ ,act ( #bjbc4 #b4 ,def9itions ,9 ?is ,act3 7#a7 ,commissions ,! t]m ,commissions means ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission1 act+ jo9tly4 7#b7 ,cov]$ adv]tisem5t ,! t]m cov]$ adv]tisem5t-- 7,a7 means a communication t-- 7i7 relates to-- 7,i7 ! desirability ( pur*as+ or ent]+ into a transaction = a digital asset2 or 7,,ii7 ! availability ( digital asset-relat$ s]vices2 & 7ii7 is widely available to ! g5]al public1 z specifi$ by rule ( ! ,commissions2 & 7,b7 includes any script1 slide1 h&\t1 or o!r writt5 7includ+ electronic7 mat]ial us$ 9 connection ) a public appe>ance ) respect to a digital asset or ! availability ( digital asset-relat$ s]vices4 7#c7 ,digital asset ,! t]m digital asset means a natively electronic asset t-- 7,a7 conf]s economic1 propriet>y1 or access rights or au?orities2 & 7,b7 is record$ us+ cryptographically-secur$ di/ribut$ l$g] te*nology1 or any simil> analogue4 7#d7 ,digital asset int]m$i>y ,! t]m digital asset int]m$i>y means a p]son t-- 7,a7 holds a lic5se1 regi/ration1 or o!r simil> au?orization pursuant to ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq471 ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;a et seq471 ! ,corporation ( ,=eign ,bondhold]s ,act1 #aicc 7#ae ,u4,s4,c4 #gg;bb et seq471 ! ,tru/ ,ind5ture ,act ( #aici 7#ae ,u4,s4,c4 #gg;aaa et seq471 ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq471 ! ,securities ,inve/or ,protection ,act ( #aigj 7#ae ,u4,s4,c4 #gh;aaa et seq471 ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#a et seq471 ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#a et seq471 or ! ,omnibus ,small ,bus9ess ,capital ,=mation ,act ( #aihj 7title ,v ( ,public ,law #if-b72 & 7,b7 engages 9 m>ket activities relat+ to digital assets4 #c4 ,adv]tis+ by digital asset int]m$i>ies 7a7 ,approval by (fic] ,be=e a digital asset int]m$i>y may make a cov]$ adv]tisem5t available to ! public1 an (fic] ( ! digital asset int]m$i>y %all be requir$ to approve t cov]$ adv]tisem5t & c]tify compliance ) ! requirem5ts ( ?is section4 7b7 ,proc$ures 7#a7 ,9 g5]al ,ea* digital asset int]m$i>y %all e/abli% writt5 proc$ures1 :i* are appropriate & reasonable to ! bus9ess1 size1 /ructure1 & cu/om]s ( ! digital asset int]m$i>y1 = ! review ( cov]$ adv]tisem5ts1 z requir$ "u subsection 7a71 :i* %all include-- 7,a7 provisions = ! education & tra9+ ( applicable employees ( ! digital asset int]m$i>y reg>d+ ! proc$ures ( ! digital asset int]m$i>y gov]n+ cov]$ adv]tisem5ts2 7,b7 docum5tation ( ! education & tra9+ requir$ "u subp>agraph 7,a72 & 7,c7 surveillance & foll[-up measures to ensure t ! digital asset int]m$i>y implem5ts & adh]es to ^? proc$ures4 7#b7 ,recordkeep+ 7,a7 ,p]iod ( ma9t5ance ,ea* digital asset int]m$i>y %all ma9ta9 ! records requir$ "u ?is subsection = n less ?an #e ye>s4 7,b7 ,types ( records ,! types ( records t a digital asset int]m$i>y is requir$ to ma9ta9 "u subp>agraph 7,a7 include1 ) respect to ea* cov]$ adv]tisem5t made by ! digital asset int]m$i>y-- 7i7 a copy ( ! cov]$ adv]tisem5t2 7ii7 ! dates ( ! fir/ &1 if applicable1 la/ use ( ! cov]$ adv]tisem5t2 7iii7 ! "n ( ! (fic] ( ! digital asset int]m$i>y :o approv$ ! cov]$ adv]tisem5t1 z requir$ "u subsection 7a71 includ+ ! date on :i* ! (fic] gave t approval2 7iv7 in=mation conc]n+ ! s\rce ( all data1 /ati/ical tables1 *>ts1 graphs1 or o!r illu/rations or outside s\rces us$ 9 ! cov]$ adv]tisem5t2 & 7v7 = a cov]$ adv]tisem5t t includes or incorporates a p]=mance rank+ or comp>ison ) ano!r digital asset int]m$i>y1 a copy ( ! rank+ or p]=mance us$4 7c7 ,requirem5ts = cov]$ adv]tisem5ts ,ea* cov]$ adv]tisem5t %all adh]e to ! foll[+ /&>ds3 7#a7 ,! cov]$ adv]tisem5t %all-- 7,a7 be bas$ on pr9ciples ( fair deal+ & good fai?2 & 7,b7 provide a s\nd basis = evaluat+ ! facts ) respect to any p>ticul> digital asset or type ( digital asset1 indu/ry1 or s]vice t is ! subject ( ! cov]$ adv]tisem5t4 7#b7 ,! cov]$ adv]tisem5t may n omit any mat]ial fact or qualification if t omission1 9 light ( ! context ( ! mat]ial pres5t$1 w\ld cause ! cov]$ adv]tisem5t to be mislead+4 7#c7 ,! cov]$ adv]tisem5t may n make any false1 exagg]at$1 unw>rant$1 promissory1 or mislead+ /atem5t or claim4 7#d7 ,in=mation may be plac$ 9 a leg5d or footnote )9 ! cov]$ adv]tisem5t only if t placem5t w\ld n inhibit und]/&+ ( ! cov]$ adv]tisem5t4 7#e7 ,! cov]$ adv]tisem5t %all be consi/5t ) risks t are pres5t ) respect to ! subject matt] ( ! cov]$ adv]tisem5t1 includ+ volatility ) respect to ! value ( digital assets1 ! am\nt ( pot5tial returns1 & op]ational risks = digital asset int]m$i>ies4 7#f7 ,! cov]$ adv]tisem5t %all-- 7,a7 consid] ! nature ( ! audi5ce to :i* ! cov]$ adv]tisem5t w be direct$2 & 7,b7 provide details & explanations t are appropriate = ! audi5ce describ$ 9 subp>agraph 7,a74 7#g7 7,a7 ,! cov]$ adv]tisem5t may n pr$ict or project p]=mance1 imply t pa/ p]=mance w recur1 or make any exagg]at$ or unw>rant$ claim1 op9ion1 or =eca/4 7,b7 ,no?+ 9 subp>agraph 7,a7 may be con/ru$ to prohibit ! use (-- 7i7 a hypo!tical illu/ration ( ma!matical pr9ciples1 if t illu/ration does n pr$ict or project ! p]=mance ( a p>ticul> /rategy2 7ii7 an analysis tool1 or a writt5 report produc$ by an analysis tool2 or 7iii7 a price t>get conta9$ 9 a rese>* report1 if ! t>get has a reasonable basis1 ! report discloses ! valuation me?ods us$ to det]m9e ! price t>get1 & ! price t>get is accompani$ by a disclosure conc]n+ ! risks t may imp$e a*ievem5t ( ! price t>get4 7#h7 ,any comp>ison 9 ! cov]$ adv]tisem5t betwe5 digital assets1 digital asset int]m$i>ies1 or digital asset-relat$ s]vices %all disclose key mat]ial diff]5ces betwe5 ! applicable items1 includ+1 z applicable1 diff]5ces ) respect to return objectives1 co/s & exp5ses1 liquidity1 safety1 gu>antees or insurance1 volatility1 & tax features4 7#i7 ,! cov]$ adv]tisem5t %all prom95tly disclose ! foll[+3 7,a7 ,! fact t ! cov]$ adv]tisem5t is gov]n$ by ?is section & is subject to ,f$]al law4 7,b7 ,! "n ( ! applicable digital asset int]m$i>y4 7,c7 ,! "n ( ! (fic] :o made ! c]tification ) respect to ! cov]$ adv]tisem5t1 z requir$ "u subsection 7a74 7,d7 ,any relation%ip betwe5 ! applicable digital asset int]m$i>y & any p]son t appe>s 9 ! cov]$ adv]tisem5t or any comp5sation (f]$ by t digital asset int]m$i>y to su* a p]son4 7,e7 ,regi/rations1 lic5ses1 or o!r au?orizations 9 good /&+ t are held by ! applicable digital asset int]m$i>y4 7#aj7 7,a7 ,9 ! cov]$ adv]tisem5t1 any ref]5ce to tax-free or tax-exempt income %all indicate :i* taxes apply1 or :i* d n1 unless income is free f all applicable taxes4 7,b7 ,= ! purposes ( subp>agraph 7,a71 ! cov]$ adv]tisem5t may n *>act]ize income or returns z tax-free or exempt f income tax if tax liability is m]ely po/pon$ or def]r$1 su* z :5 taxes are payable ^u r$emption4 7,c7 ,! ,commissions may1 by rule1 adopt fur!r /&>ds reg>d+ tax consid]ations t appe> 9 cov]$ adv]tisem5ts4 7#aa7 ,! cov]$ adv]tisem5t %all disclose ! am\nts ( ! foll[+ fees ) respect to ! digital asset or digital asset-relat$ s]vices t are ! subject ( ! cov]$ adv]tisem5t1 :i* %all be set =? prom95tly &1 9 any pr9t adv]tisem5t1 9 a prom95t text box t conta9s only su* in=mation3 7,a7 ,cu/ody fees4 7,b7 ,acc\nt fees4 7,c7 ,applicable bank fees4 7#ab7 ,if any te/imonial 9 ! cov]$ adv]tisem5t conc]ns a te*nical aspect ( pur*as+ or o!rwise ent]+ into a transaction = digital assets-- 7,a7 ! p]son mak+ ! te/imonial %all h ! k & exp]i5ce to =m a valid op9ion reg>d+ ! issue2 & 7,b7 ! te/imonial1 if ! te/imonial conc]ns ! advisability ( pur*as+ digital assets or ! p]=mance ( a digital asset1 %all prom95tly disclose-- 7i7 ! fact t ! te/imonial may n be repres5tative ( ! exp]i5ce ( o!r cu/om]s2 7ii7 ! fact t ! te/imonial is no gu>antee ( future p]=mance or success2 & 7iii7 if m ?an #a1jjj 9 value is paid = ! te/imonial-- 7,i7 ! fact t ! te/imonial is a paid te/imonial2 & 7,,ii7 ! am\nt & type ( comp5sation paid1 :i* %all include1 if comp5sation 0 paid 9 digital assets1 an id5tification ( ea* specific digital asset4 7#ac7 ,if ! cov]$ adv]tisem5t includes a recomm5dation to pur*ase1 or o!rwise transact 91 a digital asset1 ! cov]$ adv]tisem5t %all-- 7,a7 h a reasonable basis = ! recomm5dation2 & 7,b7 if applicable1 disclose-- 7i7 t1 at ! "t ! cov]$ adv]tisem5t 0 publi%$ or di/ribut$1 ! applicable digital asset int]m$i>y 0 conduct+ trad+ activities 9 ! digital asset2 7ii7 t ! applicable digital asset int]m$i>y-- 7,i7 is directly & mat]ially involv$ 9 ! prep>ation ( ! cont5t ( ! cov]$ adv]tisem5t2 & 7,,ii7 has a f9ancial int]e/ ! digital assets be+ recomm5d$2 & 7iii7 ! nature ( any f9ancial int]e/ disclos$ "u clause 7ii71 includ+ :e!r t f9ancial int]e/ consi/s ( any option1 "r1 w>rant1 future1 or long or %ort position1 unless ! ext5t ( t f9ancial int]e/ is nom9al4 7#ad7 7,a7 ,except z o!rwise provid$ by subp>agraph 7,b71 ! cov]$ adv]tisem5t may n ref]1 directly or indirectly1 to pa/ specific recomm5dations made by ! applicable digital asset int]m$i>y t 7 or w\ld h be5 pr(itable to any p]son4 7,b7 ,! cov]$ adv]tisem5t may set out or (f] to furni% a li/ ( all recomm5dations z to ! same type ( digital assets made by ! applicable digital asset int]m$i>y dur+ ! #a-ye> p]iod prec$+ ! date on :i* ! cov]$ adv]tisem5t is releas$1 if ! communication or li/-- 7i7 /ates ! "n ( ea* digital asset recomm5d$1 ! date & nature ( ea* su* recomm5dation 7su* z :e!r to buy1 sell1 or hold ! digital asset71 ! m>ket price 7z ( ! date ( ! recomm5dation71 ! price at :i* a p]son 0 meant to act ^u ! recomm5dation1 & ! m>ket price ( ea* su* digital asset1 z ( ! mo/ rec5t practicable date2 & 7ii7 conta9s ! foll[+ w>n+1 :i* %all appe> prom95tly )9 ! communication or li/3 x %\ld n be assum$ t recomm5dations made 9 ! future w be pr(itable or w equal ! p]=mance ( ! digital assets 9 ?is li/44 7d7 ,s\rces support+ a recomm5dation 7#a7 ,9 g5]al ,a digital asset int]m$i>y %all provide1 or (f] to provide ^u reque/1 available in=mation or s\rces support+ any recomm5dation describ$ 9 subsection 7c77#ac74 7#b7 ,price disclosure ,:5 a digital asset int]m$i>y recomm5ds a digital asset 9 a cov]$ adv]tisem5t1 z describ$ 9 subsection 7c77#ac71 ! digital asset int]m$i>y %all provide ! price ( ! digital asset1 z ( ! date on :i* ! recomm5dation is made4 7e7 ,in=mation provid$ 9 public appe>ances 7#a7 ,9 g5]al ,:5 an (fic] or employee ( a digital asset int]m$i>y is sponsor+ or p>ticipat+ 9 a sem9>1 =um1 or radio or television int]view1 or :5 su* an individual is o!rwise engag$ 9 a public appe>ance or speak+ activity1 p>agraphs 7#a71 7#b71 & 7#c7 ( subsection 7c7 %all apply to t appe>ance to ! same ext5t z ^? provisions apply to a cov]$ adv]tisem5t4 7#b7 ,recomm5dations ,if an (fic] or employee ( a digital asset int]m$i>y recomm5ds a digital asset 9 a public appe>ance1 t individual %all-- 7,a7 h a reasonable basis = ! recomm5dation2 & 7,b7 disclose1 z applicable-- 7i7 :e!r ! individual has a f9ancial int]e/ 9 ! digital asset recomm5d$2 7ii7 ! nature ( ! f9ancial int]e/ disclos$ "u clause 7i71 includ+ :e!r t f9ancial int]e/ consi/s ( any option1 "r1 w>rant1 future1 or long or %ort position1 unless ! ext5t ( t f9ancial int]e/ is nom9al2 & 7iii7 any o!r actual1 mat]ial conflict ( int]e/ ( :i* ! individual kn[s or has reason to "k at ! "t ( ! public appe>ance4 7f7 ,proc$ures = public appe>ances ,ea* digital asset int]m$i>y %all e/abli% writt5 proc$ures t are appropriate & reasonable to ! bus9ess1 size1 /ructure1 & cu/om]s ( ! digital asset int]m$i>y 9 ord] to sup]vise ! public appe>ances ( ! (fic]s & employees ( ! digital asset int]m$i>y1 :i* %all include-- 7#a7 provisions = ! education & tra9+ ( employees ( ! digital asset int]m$i>y reg>d+ ^? proc$ures2 7#b7 docum5tation ( ! education & tra9+ requir$ "u p>agraph 7#a72 & 7#c7 surveillance & foll[-up measures to ensure t ! digital asset int]m$i>y implem5ts & adh]es to ^? proc$ures4 7g7 ,en=cem5t by ,commissions 7#a7 ,9 g5]al ,! ,securities & ,ex*ange ,commission1 ! ,commodity ,futures ,trad+ ,commission1 or any applicable self-regulatory organization op]at+ "u delegat$ au?ority by ! appropriate commission1 z applicable to a digital asset int]m$i>y1 %all regul>ly asc]ta9 ! compliance ) ?is section by ! digital asset int]m$i>y 7& applicable individuals7 at ! "t ( ea* regul> exam9ation ( ! int]m$i>y by ! applicable entity4 7#b7 ,inve/igations ,! appropriate commission or self-regulatory organization1 z applicable1 may conduct an inve/igation into a suspect$ violation ( ?is section & take en=cem5t action outside ( a regul> exam9ation ( a digital asset int]m$i>y1 :i* %all be compris$ ( ! foll[+3 7,a7 ,) respect to su* a violation by t digital asset int]m$i>y1 ! foll[+3 7i7 ,= an initial violation ( ?is section1 ! imposition ( a civil monet>y p5alty 9 an am\nt t is n m ?an #ajj1jjj4 7ii7 ,= any subsequ5t violation ( ?is section1 ! imposition ( a civil monet>y p5alty 9 an am\nt t is n m ?an #a1jjj1jjj4 7iii7 ,! enjo9m5t ( future violations ( ?is section by ! digital asset int]m$i>y & ! requirem5t t ! digital asset int]m$i>y submit to ! en=c+ entity appropriate rem$iation plans4 7,b7 ,= repeat$1 kn[+ violations ( ?is section by an individual1 ! imposition ( a tempor>y or p]man5t b> f ! digital asset indu/ry ) respect to t individual4 7h7 ,applicability to disclosures ,a docum5t fil$ ) ! ,securities & ,ex*ange ,commission1 z o!rwise requir$ by law or regulation1 is n subject to ! requirem5ts ( ?is section4 7i7 ,rules ,! ,commissions1 aft] n less ?an a #abj-;day comm5t p]iod1 %all adopt rules to implem5t ?is section4 7j7 ,au?orization ( appropriations ,= ! purposes ( appo9t+ employees to en=ce ! requirem5ts ( ?is section1 & = o!r co/s relat+ to ! en=cem5t ( ?is section1 !re is au?oriz$ to be appropriat$1 = fiscal ye> #bjbc1 to rema9 available until ,septemb] #cj1 #bjbd-- 7#a7 #be1jjj1jjj to ! ,securities & ,ex*ange ,commission2 & 7#b7 #be1jjj1jjj to ! ,commodity ,futures ,trad+ ,commission4 #d4 ,(fsett+ ! co/s ( digital asset adv]tis+ sup]vision 7a7 ,recov]y ( c]ta9 co/s ( annual appropriations 7#a7 ,9 g5]al ,beg9n+ ,octob] #a1 #bjbd1 ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission may1 jo9tly1 by rule1 collect fees-- 7,a7 to fund exp5ses relat+ to ! sup]vision ( adv]tis+ by digital asset int]m$i>ies2 & 7,b7 t are design$ to recov] ! co/s to ! ,f$]al ,gov]nm5t ( ! annual appropriation to ea* commission by ,congress = ! co/ ( ! sup]vision ( adv]tis+ by digital asset int]m$i>ies4 7#b7 ,regi/]$ entities ,a fee %all be impos$ "u p>agraph 7#a7 only-- 7,a7 on an entity t-- 7i7 is lic5s$1 regi/]$1 or simil>ly au?oriz$ pursuant to a provision ( law describ$ 9 section #b7d77;,a72 & 7ii7 is engag$ 9 activities relat+ to digital assets1 includ+ a digital asset int]m$i>y t is regi/]$ ) ei!r commission z o!rwise may be provid$ by ,f$]al law2 & 7,b7 9 relation to ! regulation ( ^? activities "u a provision ( law describ$ 9 section #b7d77;,a74 7#c7 ,fee rates ,a fee impos$ "u p>agraph 7#a7 %all-- 7,a7 be /rictly relat$ to ! co/ to ! ,commissions relat+ to ! sup]vision ( adv]tis+ by digital asset int]m$i>ies2 7,b7 m9imize negative impacts on m>ket liquidity2 & 7,c7 ma9ta9 ! effici5cy1 competitiv5ess1 & f9ancial integrity ( digital asset m>kets4 7#d7 ,collection ( fees ,! ,commissions %all collect fees "u ?is subsection 9 su* mann] & )9 su* "t z may be specifi$ by ! ,commissions1 by rule4 7b7 ,fee rate ord]s 7#a7 ,9 g5]al ,ea* fiscal ye>1 ! ,commissions %all jo9tly adopt an ord] sett+ rates = fees t are collect$ "u subsection 7a7 dur+ t fiscal ye>4 7#b7 ,publication ,! ,commissions %all publi% 9 ! ,f$]al ,regi/] ea* ord] adopt$ "u p>agraph 7#a71 :i* %all include-- 7,a7 projections on :i* ! fees are bas$2 & 7,b7 an explanation ( ! me?od us$ = calculat+ applicable fee rates4 7c7 ,deposit ( fees 7#a7 ,(fsett+ collections ,fees collect$ "u subsection 7a7 = any fiscal ye> %all-- 7,a7 be split ev5ly betwe5 ! ,commissions2 7,b7 be deposit$ & cr$it$ z (fsett+ collections to ! acc\nts provid+ appropriations to ea* respective commission2 & 7,c7 n be collect$ or available = obligation = any fiscal ye> except to ! ext5t provid$ 9 advance 9 appropriation ,acts4 7#b7 ,g5]al rev5ues prohibit$ ,no fee collect$ "u subsection 7a7 may be deposit$ & cr$it$ z g5]al rev5ue ( ! ,treasury4 7d7 ,lapse ( appropriations ,if a regul> appropriation to a commission has n be5 enact$ on ! fir/ day ( a fiscal ye>1 ! commission %all cont9ue to collect fees "u ?is section at ! rates 9 effect on ,septemb] #cj ( ! prec$+ fiscal ye> until ! regul> appropriation = ! fiscal ye> has be5 enact$ & ! commission has publi%$ fees bas$ on ! appropriation "u subsection 7b77#b74 7e7 ,limitations 7#a7 ,lev]ag$1 m>g9$1 or f9anc$ transactions ,no?+ 9 ?is section may be con/ru$ to au?orize ! imposition ( fees on a regi/]$ entity relat+ to lev]ag$1 m>g9$1 or f9anc$ transactions "u ?is ,act1 includ+ ^? activities relat+ to digital assets4 7#b7 ,o!r appropriations ,not)/&+ any o!r provision ( law1 a commission may use appropriations o!rwise made available by law to fund exp5ses relat+ to ! sup]vision ( digital asset adv]tis+ "u section #b4 7f7 ,ceil+ on fees ,unless o!rwise provid$ by law1 ! total am\nt ( fees collect$ "u ?is section %all n exce$ #ej1jjj1jjj4