,,ii #aah? ,,congress #a/ ,session ,s4 #bbha ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,july #ab1 #bjbc ,ms4 ,lummis 7= h]self & ,mrs4 ,gillibr&7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to provide = consum] protection & responsible f9ancial innovation1 to br+ crypto assets )9 ! regulatory p]imet]1 & = o!r purposes4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,lummis-,gillibr& ,responsible ,f9ancial ,innovation ,act4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4 ,sec4 #b4 ,def9itions4 ,,title ,i--,def9itions ,sec4 #aja4 ,def9itions4 ,,title ,,ii--,putt+ consum] protection fir/ ,sec4 #bja4 ,s5se ( ,congress relat+ to crypto asset en=cem5t p[]s4 ,sec4 #bjb4 ,en=cem5t ( consum] protection requirem5ts4 ,sec4 #bjc4 ,m&atory pro( ( res]ves2 annual v]ification4 ,sec4 #bjd4 ,pla9 language crypto asset cu/om] agreem5ts4 ,sec4 #bje4 ,basic consum] protection /&>ds = crypto assets4 ,sec4 #bjf4 ,clean+ up crypto asset l5d+4 ,sec4 #bjg4 ,settlem5t f9ality4 ,sec4 #bjh4 ,adv]tisem5ts ( crypto asset int]m$i>ies & c]ta9 o!r p]sons4 ,sec4 #bji4 ,cyb]security /&>ds = crypto asset int]m$i>ies4 ,,title ,,iii--,combat+ illicit f9ance ,sec4 #cja4 ,high] p5alties = crypto asset crimes4 ,sec4 #cjb4 ,anti-money laund]+ exam9ation /&>ds4 ,sec4 #cjc4 ,crypto asset kiosks4 ,sec4 #cjd4 ,indep5d5t ,f9ancial ,te*nology ,work+ ,gr\p to ,combat ,t]rorism & ,illicit ,f9anc+4 ,sec4 #cje4 ,sanctions compliance responsibilities ( paym5t /ableco9 issu]s4 ,sec4 #cjf4 ,crypto asset mix]s & tumbl]s4 ,sec4 #cjg4 ,f9ancial ,crimes ,en=cem5t ,network ,innovation ,laboratory4 ,,title ,,iv--,responsible ,commodities regulation ,sec4 #dja4 ,def9itions4 ,sec4 #djb4 ,report+ & recordkeep+4 ,sec4 #djc4 ,jurisdiction ov] crypto asset transactions4 ,sec4 #djd4 ,regi/ration ( crypto asset ex*anges4 ,sec4 #dje4 ,sup]vision ( affiliates4 ,sec4 #djf4 ,violations4 ,sec4 #djg4 ,m>ket reports4 ,sec4 #djh4 ,bankruptcy treatm5t ( crypto assets4 ,sec4 #dji4 ,id5tifi$ bank+ products4 ,sec4 #daj4 ,f9ancial in/itutions def9ition4 ,sec4 #daa4 ,(fsett+ ! co/s ( crypto asset regulation4 ,,title ,v--,responsible securities regulation ,sec4 #eja4 ,securities (f]+s involv+ c]ta9 intangible assets4 ,sec4 #ejb4 ,guidance relat+ to satisfactory control location4 ,,title ,,vi--,cu/om] protection & m>ket integrity au?ority ,sec4 #fja4 ,cu/om] protection & m>ket integrity au?ority4 ,sec4 #fjb4 ,regi/ration1 rulemak+1 & sup]vision ( cu/om] protection & m>ket integrity au?orities4 ,sec4 #fjc4 ,records & reports2 duties & p[]s ( cu/om] protection & m>ket integrity au?orities4 ,,title ,,vii--,responsible paym5ts innovation ,sec4 #gja4 ,issuance ( paym5t /ableco9s4 ,sec4 #gjb4 ,treatm5t ( endog5\sly ref]5c$ crypto assets4 ,sec4 #gjc4 ,c]tificate ( au?ority to comm5ce bank+4 ,sec4 #gjd4 ,hold+ company sup]vision ( cov]$ depository in/itutions4 ,sec4 #gje4 ,codify+ cu/odial pr9ciples = f9ancial in/itutions4 ,sec4 #gjf4 ,implem5tation rules to pres]ve adequate competition 9 paym5t /ableco9s4 ,sec4 #gjg4 ,/udy on use ( di/ribut$ l$g] te*nology = r$uction ( risk 9 depository in/itutions4 ,sec4 #gjh4 ,cl>ify+ application review times ) respect to ! ,f$]al bank+ ag5cies4 ,sec4 #gji4 ,con=m+ am5dm5ts4 ,,title ,,viii--,responsible taxation ( crypto assets ,sec4 #hja4 ,de m9imis ga9 f sale or ex*ange ( crypto assets4 ,sec4 #hjb4 ,in=mation report+ requirem5ts impos$ on brok]s ) respect to crypto assets4 ,sec4 #hjc4 ,s\rces ( income4 ,sec4 #hjd4 ,tax treatm5t ( crypto asset l5d+ agreem5ts & relat$ matt]s4 ,sec4 #hje4 ,loss f wa% sales ( crypto assets4 ,sec4 #hjf4 ,m>k-to-m>ket election4 ,sec4 #hjg4 ,=ks1 airdrops1 & subsidi>y value4 ,sec4 #hjh4 ,crypto asset m9+ & /ak+4 ,sec4 #hji4 ,*>itable contributions & qualifi$ appraisals4 ,,title ,,ix--,responsible int]ag5cy coord9ation ,sec4 #ija4 ,timel9e = int]pretive guidance issu$ by ,f$]al f9ancial ag5cies4 ,sec4 #ijb4 ,/ate money transmission coord9ation relat+ to crypto assets4 ,sec4 #ijc4 ,in=mation %>+ among ,f$]al & ,/ate f9ancial regulators4 ,sec4 #ijd4 ,report on en]gy consumption 9 crypto asset m>kets4 ,sec4 #ije4 ,analysis ( en]gy consumption by di/ribut$ l$g] te*nologies4 ,sec4 #ijf4 ,report on di/ribut$ l$g] applications 9 en]gy4 ,sec4 #ijg4 ,p]mitt+ ,f$]al ,gov]nm5t employees to ga9 exp]i5ce ) crypto asset te*nologies4 ,sec4 #ijh4 ,advisory ,committee on ,f9ancial ,innovation4 ,,title ,x--,equipp+ ag5cies to protect consum]s & promote responsible innovation ,sec4 #ajja4 ,executive ,(fice ( ! ,presid5t appropriations4 ,sec4 #ajjb4 ,f9ancial ,crimes ,en=cem5t ,network appropriations4 ,sec4 #ajjc4 ,commodity ,futures ,trad+ ,commission appropriations4 ,sec4 #ajjd4 ,securities & ,ex*ange ,commission appropriations4 ,sec4 #ajje4 ,f$]al ,trade ,commission appropriations4 ,sec4 #ajjf4 ,advisory ,commission on ,f9ancial ,innovation appropriations4 #b4 ,def9itions ,9 ?is ,act3 7#a7 ,commodity ,! t]m commodity has ! mean+ giv5 ! t]m 9 section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a74 7#b7 ,crypto asset2 crypto asset int]m$i>y2 di/ribut$ l$g] te*nology2 paym5t /ableco92 sm>t contract ,! t]ms crypto asset1 crypto asset int]m$i>y1 di/ribut$ l$g] te*nology1 paym5t /ableco9 & sm>t contract h ! mean+s giv5 ! t]ms 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code1 z add$ by section #aja ( ?is ,act4 7#c7 ,security ,except z o!rwise expressly provid$1 ! t]m security has ! mean+ giv5 ! t]m 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a774 ,i ,def9itions #aja4 ,def9itions 7a7 ,9 g5]al ,subtitle ,,vi ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by add+ aft] *apt] #ig ! foll[+3 #ih ,crypto assets ,sec4 #ihja4 ,def9itions4 #ihja4 ,def9itions ,9 ?is *apt]3 7#a7 ,appropriate commission ,! t]m appropriate commission means ! ,commodity ,futures ,trad+ ,commission or ! ,securities & ,ex*ange ,commission1 or bo?1 if applicable1 bas$ on ! commission t has /atutory jurisdiction ov] a crypto asset int]m$i>y & acts z ! prim>y regi/ration or lic5s+ au?ority = t int]m$i>y4 7#b7 ,crypto asset ,! t]m crypto asset-- 7,a7 means a natively electronic asset t-- 7i7 conf]s economic1 propriet>y1 or access rights or p[]s2 7ii7 is record$ us+ cryptographically secur$ di/ribut$ l$g] te*nology1 or any simil> analogue2 & 7iii7 does n repres5t1 d]ive value f1 or ma9ta9 back+ by1 a f9ancial asset 7except o!r crypto assets72 & 7,b7 does n include-- 7i7 a paym5t /ableco91 except z o!rwise provid$ by ?is *apt]2 & 7ii7 o!r int]e/s 9 f9ancial assets 7except o!r crypto assets7 repres5t$ on a di/ribut$ l$g] or any simil> analogue4 7#c7 ,crypto asset int]m$i>y ,! t]m crypto asset int]m$i>y-- 7,a7 means-- 7i7 a p]son :o holds a lic5se1 regi/ration1 or o!r simil> au?orization1 z specifi$ by ?is *apt]1 ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq471 ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;a et seq471 ! ,corporation ( ,=eign ,bondhold]s ,act1 #aicc 7#ae ,u4,s4,c4 #gg;bb et seq471 ! ,tru/ ,ind5ture ,act ( #aici 7#ae ,u4,s4,c4 #gg;aaa et seq471 ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq471 ! ,securities ,inve/or ,protection ,act ( #aigj 7#ae ,u4,s4,c4 #gh;aaa et seq471 ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#a et seq471 ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#a71 or ! ,omnibus ,small ,bus9ess ,capital ,=mation ,act ( #aihj 7#ae ,u4,s4,c4 #hj;c71 t conducts m>ket activities relat+ to crypto assets2 or 7ii7 a p]son :o is requir$ by law to hold a lic5se1 regi/ration1 or o!r simil> au?orization describ$ 9 clause 7i72 & 7,b7 does n include a depository in/itution4 7#d7 ,depository in/itution ,! t]m depository in/itution has ! mean+ giv5 ! t]m 9 section #ai7;b77#a7 ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #dfa7;b77#a774 7#e7 ,di/ribut$ l$g] te*nology ,! t]m di/ribut$ l$g] te*nology means te*nology t enables ! op]ation & use ( a l$g] t-- 7,a7 is %>$ across a set ( di/ribut$ nodes t p>ticipate 9 a network & /ore a complete or p>tial replica ( ! l$g]2 7,b7 is syn*roniz$ betwe5 ! nodes2 7,c7 has data app5d$ to ! l$g] by foll[+ ! specifi$ cons5sus me*anism ( ! l$g]2 7,d7 may be accessible to anyone or re/rict$ to a subset ( p>ticipants2 & 7,e7 may require p>ticipants to h au?orization to p]=m c]ta9 actions or require no au?orization4 7#f7 ,paym5t /ableco9 ,! t]m paym5t /ableco9 means a claim repres5t$ on a di/ribut$ l$g] or a simil> analogue t is-- 7,a7 r$eemable1 on dem&1 on a #a-to-#a basis = in/rum5ts d5om9at$ 9 ,unit$ ,/ates doll>s2 7,b7 issu$ by a bus9ess entity2 7,c7 accompani$ by a /atem5t f ! issu] t ! asset is r$eemable1 z specifi$ 9 subp>agraph 7,a71 f ! issu] or ano!r id5tifi$ p]son2 7,d7 back$ by #a or m f9ancial assets 7exclud+ o!r crypto assets71 consi/5t ) subp>agraph 7,a72 & 7,e7 int5d$ to be us$ z a m$ium ( ex*ange4 7#g7 ,security ,! t]m security has ! mean+ giv5 ! t]m 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a774 7#h7 ,sm>t contract ,! t]m sm>t contract-- 7,a7 means-- 7i7 comput] code deploy$ to a di/ribut$ l$g] te*nology network t executes an in/ruction bas$ on ! occurr5ce or nonoccurr5ce ( specifi$ conditions2 or 7ii7 any simil> analogue2 & 7,b7 includes tak+ possession or control ( a crypto asset & transf]r+ ! asset or issu+ executable in/ructions = ^! actions4 4 7b7 ,te*nical & con=m+ am5dm5t ,! table ( cont5ts = subtitle ,,vi ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 #ih4 ,crypto assets#ihja 4 ,,ii ,putt+ consum] protection fir/ #bja4 ,s5se ( ,congress relat+ to crypto asset en=cem5t p[]s 7#a7 ,congress f9ds ! foll[+ relat+ to ! au?ority ( ! ,commodity ,futures ,trad+ ,commission3 7,a7 ,! ,commodity ,futures ,trad+ ,commission has en=cem5t tools to ensure compliance ) ! commodities laws ( ! ,unit$ ,/ates1 :i* ,congress has design$ to promote responsible innovation ?r\gh a pr9ciples-bas$ approa* & to police fraud1 scams1 & wrongdo+4 7,b7 ,! au?ority ( ! ,commodity ,futures ,trad+ ,commission describ$ 9 subp>agraph 7,a7 includes ! foll[+3 7i7 ,recomm5d+ crim9al prosecution to ! ,dep>tm5t ( ,ju/ice & ,/ate prosecutors = fraud & conspiracy4 7ii7 ,br++ civil actions to enjo9 violations ( ?is ,act & o!r commodities laws4 7iii7 ,seek+ civil monet>y p5alties1 disgorgem5t ( b5efits1 & re/itution & freez+ assets4 7iv7 ,revok+ ex*ange trad+ privileges1 regi/ration1 lic5ses1 & o!r au?orizations4 7v7 ,issu+ cease & desi/ ord]s4 7,c7 ,congress has grant$ ! au?orities describ$ 9 ?is p>agraph to ! ,commodity ,futures ,trad+ ,commission to-- 7i7 ensure fair & transp>5t commodities m>kets ) accurate price discov]y & appropriate risk managem5t2 & 7ii7 facilitate responsible innovation4 7,d7 ,! ,commodity ,futures ,trad+ ,commission has a duty to use ! au?orities provid$ to ! ,commission to protect all m>ket p>ticipants1 reg>dless ( sophi/ication level1 f fraud1 scams1 & wrongdo+ relat+ to crypto assets t are n securities1 z def9$ 9 ?is ,act1 ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq471 & case law4 7#b7 ,congress f9ds ! foll[+ relat+ to ! au?ority ( ! ,securities & ,ex*ange ,commission3 7,a7 ,! ,securities & ,ex*ange ,commission has en=cem5t tools to-- 7i7 ensure compliance ) ! securities laws ( ! ,unit$ ,/ates1 :i* h made ,unit$ ,/ates m>kets ! envy ( ! _w2 & 7ii7 police fraud1 scams1 & wrongdo+4 7,b7 ,! au?ority ( ! ,securities & ,ex*ange ,commission describ$ 9 subp>agraph 7,a7 includes ! foll[+3 7i7 ,recomm5d+ crim9al proce$+s to ! ,dep>tm5t ( ,ju/ice or ,/ate prosecutors = fraud1 inve/m5t scams1 insid] trad+1 conspiracy1 & o!r violations ( ! securities laws ( ! ,unit$ ,/ates4 7ii7 ,br++ civil actions to enjo9 violations ( ?is ,act & ! o!r securities laws4 7iii7 ,seek+ civil monet>y p5alties1 disgorgem5t ( pr(its1 & re/itution4 7iv7 ,b>r+ individuals f ! securities indu/ry & f s]v+ z an (fic] or director ( a p>ticul> company4 7v7 ,revok+ regi/rations1 lic5ses1 or o!r au?orizations4 7vi7 ,issu+ cease & desi/ ord]s4 7,c7 ,congress has grant$ ! au?orities describ$ 9 ?is p>agraph to ! ,securities & ,ex*ange ,commission to ensure fair1 hone/1 & transp>5t securities m>kets t enable robu/ capital =mation & a ?riv+ economy4 7,d7 ,! ,securities & ,ex*ange ,commission has a duty to use ! au?orities provid$ to ! ,commission appropriately & proportionately to protect consum]s f fraud1 scams1 & wrongdo+ relat+ to crypto assets t are securities1 z def9$ 9 ?is ,act1 ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;a et seq471 ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq471 & case law1 :ile provid+ cle> guidance to innovators & m>ket p>ticipants s t ^? innovators & m>ket p>ticipants are able to cle>ly det]m9e _! legal obligations pursuant to ! laws enact$ by ,congress4 #bjb4 ,en=cem5t ( consum] protection requirem5ts 7a7 ,9 g5]al ,*apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z add$ by section #aja7;a7 ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 #ihjb4 ,en=cem5t2 rules 7a7 ,en=cem5t ( /&>ds ,except z o!rwise provid$ by ?is *apt]1 ! /&>ds ( ?is *apt] %all be en=c$ 9 an appropriate mann]1 comm5surate ) o!r cu/om] protection /&>ds-- 7#a7 9 ! case ( a crypto asset int]m$i>y1 if a crypto asset cu/om] protection & m>ket integrity au?ority has be5 *>t]$1 by t au?ority2 7#b7 9 ! case ( crypto asset int]m$i>y1 if a crypto asset cu/om] protection & m>ket integrity au?ority has n be5 *>t]$1 by ! ,f$]al or ,/ate lic5s+1 regi/ration1 or *>t]+ au?ority ( ! int]m$i>y2 & 7#c7 9 ! case ( a depository in/itution or o!r *>t]$ f9ancial in/itution1 by ! appropriate ,/ate or ,f$]al bank+ sup]visor4 7b7 ,rulemak+ ,! ,f$]al ag5cies specifi$ 9 p>agraphs 7#b7 & 7#c7 ( subsection 7a7 %all promulgate f9al rules to implem5t ?is title n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is section4 4 7b7 ,te*nical & con=m+ am5dm5t ,! table ( sections = *apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z add$ by section #aja7;a7 ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 #ihjb4 ,en=cem5t2 rules4 4 #bjc4 ,m&atory pro( ( res]ves2 annual v]ification 7a7 ,9 g5]al ,*apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #bjb ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 #ihjc4 ,m&atory pro( ( res]ves2 annual v]ification 7a7 ,m&atory pro( ( res]ves ,a crypto asset int]m$i>y %all ma9ta9 a sy/em1 & ! requisite policies & proc$ures1 to demon/rate cryptographically v]ifiable possession or control ( all crypto assets "u cu/ody or o!rwise provid$ = safekeep+ by a cu/om] to ! int]m$i>y4 ,a sy/em creat$ "u ?is subsection %all be protect$ aga9/ disclosure ( cu/om] data1 propriet>y int]m$i>y in=mation1 & o!r data :i* may lead to op]ational or cyb]security risk4 7b7 ,regul> f9ancial audit ,an indep5d5t public acc\ntant reta9$ by ! int]m$i>y %all annual v]ify possession or control ( all crypto assets "u cu/ody1 or o!rwise provid$ = safekeep+ by ! int]m$i>y1 consi/5t ) subsection 7a74 ,?is v]ification %all include an exam9ation ( ! sy/em & ! policies & proc$ures requir$ by subsection 7a7 & %all take place pursuant to a writt5 agreem5t betwe5 ! int]m$i>y & ! acc\ntant1 at a "t *os5 by ! acc\ntant )\t prior notice :i* is irregul> f ye> to ye>4 7c7 ,report & mat]ial discrepancies ,)9 #abj days ( conduct+ a v]ification "u subsection 7b71 ! indep5d5t public acc\ntant reta9$ "u subsection 7b7 %all file a report ) ! appropriate commission & ! applicable cu/om] protection & m>ket integrity au?ority1 /at+ t ! acc\ntant has v]ifi$ pro( ( res]ves consi/5t ) ?is section4 ,if mat]ial discrepancies 9 ! v]ification h be5 f\nd by ! indep5d5t public acc\ntant1 ! acc\ntant %all in=m ! appropriate commission & ! cu/om] protection & m>ket integrity au?ority )9 #a day ( ! conclusion ( ! v]ification4 7d7 ,/&>ds ,! ,public ,company ,acc\nt+ ,ov]sight ,bo>d %all adopt /&>ds to implem5t subsections 7a7 & 7b71 9 consultation ) ! ,securities & ,ex*ange ,commission & ,commodity ,futures ,trad+ ,commission4 4 7b7 ,te*nical & con=m+ am5dm5t ,! table ( sections = *apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #bjb1 is am5d$ by add+ at ! end ! foll[+3 #ihjc4 ,m&atory pro( ( res]ves2 annual v]ification4 4 #bjd4 ,pla9 language crypto asset cu/om] agreem5ts 7a7 ,9 g5]al ,*apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #bjc ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 #ihjd4 ,pla9 language crypto asset cu/om] agreem5ts 7a7 ,pla9 language cu/om] agreem5ts ,9 consultation ) ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission1 ! ,bureau ( ,consum] ,f9ancial ,protection %all issue guidance sett+ =? be/ practices = crypto asset int]m$i>y /&>d cu/om] agreem5ts & all disclosures requir$ to be made "u title ,,ii ( ! ,lummis-,gillibr& ,responsible ,f9ancial ,innovation ,act & o!r applicable law1 :i* %all require ! cu/om] agreem5ts & disclosures1 9 accordance ) applicable law1 to be writt5 9 pla9 language t is easily compreh5sible to cu/om]s4 ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is section1 ! ,bureau %all create a publicly available database = ! fil+ ( all requir$ docum5ts "u ?is section4 7b7 ,ancill>y asset disclosures 7#a7 ,9 g5]al ,! ,securities & ,ex*ange ,commission1 9 consultation ) ! ,bureau ( ,consum] ,f9ancial ,protection1 %all issue guidance sett+ =? be/ practices = issu]s "u section #db ( ! ,securities ,ex*ange ,act ( #aicd to create pla9 language summ>ies ( disclosures requir$ to be made to cu/om]s "u t section4 7#b7 ,cont5ts ,ea* summ>y describ$ 9 p>agraph 7#a7 %all be-- 7,a7 n m ?an #b pages 9 l5g?2 & 7,b7 fil$ by ! applicable issu] ) ! ,securities & ,ex*ange ,commission at ! same "t z disclosures are fil$ "u section #db ( ! ,securities ,ex*ange ,act ( #aicd4 7c7 ,requirem5t ,to file ,crypto asset int]m$i>ies %all file ! foll[+ ) ! ,bureau ( ,consum] ,f9ancial ,protection3 7#a7 ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is section1 ! /&>d cu/om] agreem5t us$ by ! int]m$i>y on ! date ( enactm5t4 7#b7 ,any /&>d cu/om] agreem5t us$ aft] ! date ( enactm5t ( ?is section1 b be=e ! database "u subsection 7a7 becomes op]ational1 to be fil$ n m ?an #fj days aft] ! date on :i* ! database "u subsection 7a7 becomes op]ational4 7#c7 ,any /&>d cu/om] agreem5t us$ aft] ! database "u subsection 7a7 becomes op]ational1 n m ?an #cj days aft] ! date on :i* ! agreem5t is fir/ us$ by cu/om]s4 7#d7 ,= all crypto assets support$ by ! crypto asset int]m$i>y1 all disclosures made "u section #db ( ! ,securities ,ex*ange ,act ( #aicd & ! accompany+ summ>ies4 7#e7 ,any o!r docum5t t conta9s requir$ disclosures "u title ,,ii ( ! ,lummis-,gillibr& ,responsible ,f9ancial ,innovation ,act1 n m ?an #cj days aft] ! date on :i* ! docum5t is made available to cu/om]s4 7d7 ,fil+ & summ>y ,:5 fil+ a /&>d cu/om] agreem5t "u subsection 7c71 a crypto asset int]m$i>y %all include a summ>y ( *anges 7z comp>$ to ! previ\s fil$ v]sion7 t is 9 pla9 language1 z det]m9$ by ! ,bureau ( ,consum] ,f9ancial ,protection4 7e7 ,rule ( con/ruction ,a fil+ "u ?is section may n be con/ru$ to p]mit ! ,bureau ( ,consum] ,f9ancial ,protection to approve ! cont5ts ( any /&>d cu/om] agreem5t4 7f7 ,rules ,! ,bureau ( ,consum] ,f9ancial ,protection %all adopt rules to implem5t ?is section1 ) a comm5t p]iod ( n less ?an #ij days4 4 7b7 ,te*nical & con=m+ am5dm5t ,! table ( sections = *apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #bjc ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 #ihjd4 ,pla9 language crypto asset cu/om] agreem5ts4 4 #bje4 ,basic consum] protection /&>ds = crypto assets 7a7 ,9 g5]al ,*apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #bjc ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 #ihje4 ,basic consum] protection /&>ds = crypto assets 7a7 ,9 g5]al ,ea* crypto asset int]m$i>y %all ensure t ! scope ( p]missible transactions t may be und]tak5 ) crypto assets belong+ to a cu/om] is disclos$ cle>ly 9 a cu/om] agreem5t4 7b7 ,notice ,ea* crypto asset int]m$i>y %all provide cle> notice to ea* cu/om] & require ackn[l$gm5t ( ! foll[+3 7#a7 ,:e!r cu/om] crypto assets are segregat$ f o!r cu/om] assets & ! mann] ( segregation4 7#b7 ,h[ ! crypto assets ( ! cu/om] w\ld be treat$ 9 a bankruptcy or insolv5cy sc5>io & ! risk ( loss4 7#c7 ,! "t p]iod & mann] 9 :i* ! int]m$i>y is obligat$ to return ! crypto asset ( ! cu/om] ^u reque/4 7#d7 ,applicable fees impos$ on a cu/om]4 7#e7 ,! dispute resolution process ( ! int]m$i>y4 7c7 ,subsidi>y proce$s 7#a7 ,def9itions ,9 ?is subsection3 7,a7 ,agreem5t ,! t]m agreem5t includes ! /&>d t]ms ( s]vice ( a crypto asset int]m$i>y4 7,b7 ,subsidi>y proce$s ,! t]m subsidi>y proce$s includes =ks1 airdrops1 /ak+1 & o!r ga9s t accrue to a crypto asset ?r\gh m>ket transactions z a f9ancial asset or z a result ( be+ held 9 cu/ody or safekeep+ by a crypto asset int]m$i>y4 7#b7 ,accrual to cu/om] ,except z o!rwise specifi$ by an agreem5t ) a cu/om]1 all subsidi>y proce$s relat+ to crypto asset s]vices provid$ to a cu/om] %all accrue to ! b5efit ( ! cu/om] 9 accordance ) p>agraph 7#c74 7#c7 ,election ,a crypto asset int]m$i>y may elect n to collect c]ta9 subsidi>y proce$s if ! election is disclos$ 9 an agreem5t ) ! cu/om]4 7#d7 ,)drawal ,a cu/om] may reque/ return ( a crypto asset f an int]m$i>y 9 a me?od t p]mits ! collection ( ! subsidi>y proce$s ( ! crypto asset4 7#e7 ,agreem5t ,a crypto asset int]m$i>y %all ent] into an agreem5t ) a cu/om]1 if desir$ by ! cu/om]1 reg>d+ ! mann] 9 :i* to inve/ subsidi>y proce$s or o!r ga9s attributable to ! crypto assets ( ! cu/om]4 7d7 ,,ceo atte/ations ,ea* ye>1 ! *ief executive (fic] ( a crypto asset int]m$i>y %all1 "u p5alty ( p]jury1 c]tify compliance ) ! foll[+1 to ! be/ ( ! k & belief ( ! *ief executive (fic]3 7#a7 ,applicable anti-money laund]+1 cu/om] id5tification1 prev5tion ( t]rori/ f9anc+1 & sanctions laws4 7#b7 ,applicable cu/odial & safekeep+ laws1 includ+ pro( ( res]ve requirem5ts4 7#c7 ,! o!r provisions ( ?is *apt]4 4 7b7 ,te*nical & con=m+ am5dm5t ,! table ( sections = *apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #bjd ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 #ihje4 ,basic consum] protection /&>ds = crypto assets4 4 #bjf4 ,clean+ up crypto asset l5d+ 7a7 ,9 g5]al ,*apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #bje ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 #ihjf4 ,crypto asset l5d+ arrangem5ts 7a7 ,l5d+ arrangem5ts ,a crypto asset int]m$i>y %all ensure t any l5d+ arrangem5ts relat+ to crypto assets are-- 7#a7 cle>ly disclos$ to cu/om]s be=e any l5d+ s]vices take place1 includ+ ! pot5tial bankruptcy treatm5t ( cu/om] assets 9 ! ev5t ( insolv5cy2 7#b7 subject to ! affirmative cons5t ( ! cu/om]2 7#c7 fully en=ceable z a matt] ( ,/ate comm]cial law1 includ+ ! ,uni=m ,comm]cial ,code2 7#d7 accompani$ by full disclosures ( applicable t]ms & risks1 yield1 & ! mann] 9 :i* ! yield is calculat$2 7#e7 accompani$ by appropriate disclosures relat+ to collat]al requirem5ts & policies1 includ+-- 7,a7 possible r$uctions 9 value & ov]collat]alization requirem5ts ) respect to a crypto asset2 7,b7 collat]al ! int]m$i>y accepts :5 call+ = additional collat]al f a cu/om]1 includ+ collat]al sub/itution2 7,c7 :e!r cu/om] collat]al is comm+l$ ) ! collat]al ( o!r cu/om]s or ( ! int]m$i>y2 & 7,d7 h[ cu/om] collat]al is inve/$ & :e!r ! yield belongs to ! cu/om] or to ! int]m$i>y2 7#f7 accompani$ by disclosures ( m>k-to-m>ket & monitor+ arrangem5ts1 includ+-- 7,a7 ! frequ5cy ( m>k-to-m>ket monitor+ & h[ frequ5tly ! int]m$i>y w call = additional collat]al f a cu/om]2 7,b7 ! "t p]iod 9 :i* ! cu/om] mu/ supply additional collat]al to ! int]m$i>y aft] a collat]al call is conduct$ consi/5t ) subp>agraph 7,a72 7,c7 :e!r ! int]m$i>y p]mits failures to deliv] cu/om] crypto assets or o!r collat]al2 & 7,d7 9 ! ev5t ( a failure to deliv]1 ! p]iod ( "t 9 :i* ! failure mu/ be cur$2 & 7#g7 compliant ) all applicable ,f$]al & ,/ate laws4 7b7 ,rehypo!cation 7#a7 ,def9ition ,9 ?is subsection1 ! t]m rehypo!cation means ! pl$g+ ( an asset z collat]al = a f9ancial transaction multiple times by a p]son1 includ+ ! pl$g+ ( a cu/om] asset by a crypto asset int]m$i>y z collat]al = a subsequ5t f9ancial transaction aft] deliv]y ( ! crypto asset to ! int]m$i>y by a cu/om]4 7#b7 ,rehypo!cation ,no rehypo!cation ( crypto assets by a crypto asset int]m$i>y %all be p]mitt$4 4 7b7 ,te*nical & con=m+ am5dm5t ,! table ( sections = *apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #bjb1 is am5d$ by add+ at ! end ! foll[+3 #ihjf4 ,crypto asset l5d+ arrangem5ts4 4 #bjg4 ,settlem5t f9ality 7a7 ,9 g5]al ,*apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #bjf ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 #ihjg4 ,settlem5t f9ality ,to promote legal c]ta9ty & cu/om] protection1 a crypto asset int]m$i>y & a cu/om] %all1 ^u ! op5+ ( an acc\nt1 agree on ! t]ms ( settlem5t f9ality = all transactions ) respect to crypto assets1 includ+ ! foll[+3 7#a7 ,! conditions "u :i* a crypto asset may be deem$ fully transf]r$1 provid$ t ^? legal conditions may div]ge f op]ational conditions "u :i* crypto assets are consid]$ transf]r$1 bas$ on ! di/ribut$ & probabili/ic nature ( crypto assets4 7#b7 ,! exact mom5t ( transf] ( a crypto asset4 7#c7 ,! dis*>ge ( any obligations ^u transf] ( a crypto asset4 7#d7 ,con=mity to applicable provisions ( ! ,uni=m ,comm]cial ,code4 4 7b7 ,te*nical & con=m+ am5dm5t ,! table ( sections = *apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #bjf ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 #ihjg4 ,settlem5t f9ality4 4 #bjh4 ,adv]tisem5ts ( crypto asset int]m$i>ies & c]ta9 o!r p]sons 7a7 ,9 g5]al ,*apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #bjg ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 #ihjh4 ,adv]tis+ ( crypto asset int]m$i>ies & c]ta9 o!r p]sons 7a7 ,def9itions ,9 ?is section3 7#a7 ,commissions ,! t]m ,commissions means ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission1 act+ jo9tly4 7#b7 ,cov]$ 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 crypto asset2 or 7,,ii7 ! availability ( crypto 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 crypto asset or ! availability ( crypto asset-relat$ s]vices4 7b7 ,approval by (fic] ,be=e a crypto asset int]m$i>y may make a cov]$ adv]tisem5t available to ! public1 an (fic] ( ! crypto asset int]m$i>y %all be requir$ to approve t cov]$ adv]tisem5t & c]tify compliance ) ! requirem5ts ( ?is section4 7c7 ,proc$ures 7#a7 ,9 g5]al ,ea* crypto asset int]m$i>y %all e/abli% writt5 proc$ures1 :i* are appropriate & reasonable to ! bus9ess1 size1 /ructure1 & cu/om]s ( ! crypto asset int]m$i>y1 = ! approval ( cov]$ adv]tisem5ts1 z requir$ "u subsection 7b71 :i* %all include-- 7,a7 provisions = ! education & tra9+ ( applicable employees ( ! crypto asset int]m$i>y reg>d+ ! proc$ures ( ! crypto 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 ! crypto asset int]m$i>y implem5ts & adh]es to ^? proc$ures4 7#b7 ,recordkeep+ 7,a7 ,p]iod ( ma9t5ance ,ea* crypto 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 crypto asset int]m$i>y is requir$ to ma9ta9 "u subp>agraph 7,a7 include1 ) respect to ea* cov]$ adv]tisem5t made by ! crypto 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] ( ! crypto asset int]m$i>y :o approv$ ! cov]$ adv]tisem5t1 z requir$ "u subsection 7b71 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 crypto asset int]m$i>y1 a copy ( ! rank+ or p]=mance us$4 7d7 ,requirem5ts = cov]$ 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> crypto asset or type ( crypto asset1 indu/ry1 or s]vice t is ! subject ( ! cov]$ adv]tisem5t4 7#b7 ,! cov]$ adv]tisem5t does 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 does 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 ( crypto assets1 ! am\nt ( pot5tial returns1 & op]ational risks = crypto 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$ict or project ! p]=mance ( a p>ticul> /rategy2 7ii7 an analysis tool or a writt5 report produc$ 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 crypto assets1 crypto asset int]m$i>ies1 or crypto asset-relat$ 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$]al law4 7,b7 ,! "n ( ! applicable crypto asset int]m$i>y4 7,c7 ,any relation%ip betwe5 ! applicable crypto asset int]m$i>y & any p]son t appe>s 9 ! cov]$ adv]tisem5t or any comp5sation (f]$ by t crypto asset int]m$i>y to su* a p]son4 7,d7 ,regi/rations1 lic5ses1 or o!r au?orizations 9 good /&+ t are held by ! applicable crypto asset int]m$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 ! crypto asset or crypto 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 = crypto 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+ crypto assets or ! p]=mance ( a crypto 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 crypto assets1 an id5tification ( ea* specific crypto asset4 7#ac7 ,if ! cov]$ adv]tisem5t includes a recomm5dation to pur*ase1 or o!rwise transact 91 a crypto 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$1 ! applicable crypto asset int]m$i>y 0 conduct+ trad+ activities 9 ! crypto asset2 7ii7 t ! applicable crypto 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/ ! crypto 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 crypto 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 ( crypto assets made by ! applicable crypto 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* crypto asset recomm5d$1 ! date & nature ( ea* su* recomm5dation 7su* z :e!r to buy1 sell1 or hold ! crypto asset71 ! m>ket price 7z ( ! date ( ! recomm5dation71 ! price at :i* a p]son 0 meant to act ^u ! recomm5dation1 & ! m>ket price ( ea* su* crypto asset1 z ( ! mo/ rec5t practicable date2 & 7ii7 conta9s ! foll[+ w>n+1 :i* %all appe> prom95tly )9 ! communication or li/3 ,x %\ld n be assum$ t recomm5dations made 9 ! future w be pr(itable or w equal ! p]=mance ( ! crypto assets 9 ?is li/44 7e7 ,s\rces support+ a recomm5dation 7#a7 ,9 g5]al ,a crypto 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 7d77#ac74 7#b7 ,price disclosure ,:5 a crypto asset int]m$i>y recomm5ds a crypto asset 9 a cov]$ adv]tisem5t1 z describ$ 9 subsection 7d77#ac71 ! crypto asset int]m$i>y %all provide ! price ( ! crypto asset1 z ( ! date on :i* ! recomm5dation is made4 7f7 ,in=mation provid$ 9 public appe>ances 7#a7 ,9 g5]al ,:5 an (fic] or employee ( a crypto asset int]m$i>y is sponsor+ or p>ticipat+ 9 a sem9>1 =um1 or broadca/1 or :5 su* an individual is o!rwise engag$ 9 a public appe>ance or speak+ activity1 p>agraphs 7#a71 7#b71 & 7#c7 ( subsection 7d71 %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 crypto asset int]m$i>y recomm5ds a crypto 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 ! crypto 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 7g7 ,proc$ures = public appe>ances ,ea* crypto asset int]m$i>y %all e/abli% writt5 proc$ures t are appropriate & reasonable to ! bus9ess1 size1 /ructure1 & cu/om]s ( ! crypto asset int]m$i>y 9 ord] to sup]vise ! public appe>ances ( ! (fic]s & employees ( ! crypto asset int]m$i>y1 :i* %all include-- 7#a7 provisions = ! education & tra9+ ( employees ( ! crypto asset int]m$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 ! crypto asset int]m$i>y implem5ts & adh]es to ^? proc$ures4 7h7 ,en=cem5t by ,commissions 7#a7 ,9 g5]al ,! ,securities & ,ex*ange ,commission1 ! ,commodity ,futures ,trad+ ,commission1 or a cu/om] protection & m>ket integrity au?ority op]at+ "u delegat$ au?ority by ! appropriate commission1 z applicable to a crypto asset int]m$i>y1 %all regul>ly asc]ta9 ! compliance ) ?is section by ! crypto asset int]m$i>y 7& applicable individuals7 at ! "t ( ea* regul> exam9ation ( ! int]m$i>y by ! applicable entity4 7#b7 ,inve/igations ,! appropriate commission or cu/om] protection & m>ket integrity au?ority1 z applicable1 may conduct an inve/igation into a suspect$ violation ( ?is section & take en=cem5t action outside ( a regul> exam9ation ( a crypto asset int]m$i>y1 :i* %all be compris$ ( ! foll[+3 7,a7 ,) respect to su* a violation by t crypto asset int]m$i>y1 ! foll[+3 7i7 ,= an initial violation ( ?is section1 ! imposition ( a civil monet>y p5alty 9 an am\nt t is n m ?an #ajj1jjj4 7ii7 ,= any subsequ5t violation ( ?is section1 ! imposition ( a civil monet>y p5alty 9 an am\nt t is n m ?an #a1jjj1jjj4 7iii7 ,! enjo9m5t ( future violations ( ?is section by ! crypto asset int]m$i>y & ! requirem5t t ! crypto asset int]m$i>y submit to ! en=c+ entity appropriate rem$iation plans4 7,b7 ,= repeat$1 kn[+ violations ( ?is section by an individual1 ! imposition ( a tempor>y or p]man5t b> f ! crypto asset indu/ry ) respect to t individual4 7i7 ,applicability to disclosures ,a docum5t fil$ ) ! ,securities & ,ex*ange ,commission1 z o!rwise requir$ by law or regulation1 is n subject to ! requirem5ts ( ?is section4 7j7 ,rules ,! ,commissions1 aft] n less ?an a #abj-;day comm5t p]iod1 %all adopt rules to implem5t ?is section4 4 7b7 ,te*nical & con=m+ am5dm5t ,! table ( section = *apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #bjf1 is am5d$ by add+ at ! end ! foll[+3 #ihjh4 ,adv]tis+ ( crypto asset int]m$i>ies & c]ta9 o!r p]sons4 4 #bji4 ,cyb]security /&>ds = crypto asset int]m$i>ies 7a7 ,applicability ( cyb] incid5t report+ = ,cyb] ,incid5t ,report+ = ,critical ,infra/ructure ,act ( #bjjb 7#a7 ,def9itions ,section #bbdj ( ! ,homel& ,security ,act ( #bjjb 7#f ,u4,s4,c4 #fha7 is am5d$ by /rik+ p>agraph 7#d7 & ins]t+ ! foll[+3 7#d7 ,cov]$ entity ,! t]m cov]$ entity-- 7,a7 means an entity 9 a critical infra/ructure sector1 z def9$ 9 ,presid5tial ,policy ,directive #ba1 t satisfies ! def9ition e/abli%$ by ! ,director 9 ! f9al rule issu$ pursuant to section #bbdb7;b72 & 7,b7 includes a crypto asset int]m$i>y1 z def9$ 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code4 4 7#b7 ,requir$ report+ ,if a crypto asset int]m$i>y makes a requir$ report "u section #bbdb ( ! ,homel& ,security ,act ( #bjjb 7#f ,u4,s4,c4 #fha;b71 ! crypto asset int]m$i>y %all make a copy ( t report available to ! ,f$]al or ,/ate f9ancial regulator responsible = lic5s+ or sup]vis+ ! crypto asset int]m$i>y4 7b7 ,requirem5t ,n lat] ?an #ah mon?s aft] ! date ( enactm5t ( ?is ,act1 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission1 9 consultation ) ! ,secret>y ( ! ,treasury & ! ,director ( ! ,cyb]security & ,infra/ructure ,security ,ag5cy1 %all develop compreh5sive1 pr9ciples-bas$ guidance relat+ to cyb]security = crypto asset int]m$i>ies t acc\nt =1 ) respect to su* a crypto asset int]m$i>y-- 7#a7 ! int]nal gov]nance1 & organizational culture1 ( ! cyb]security program ( ! crypto asset int]m$i>y2 7#b7 security op]ations ( ! crypto asset int]m$i>y1 includ+ ?reat id5tification1 incid5t response1 & mitigation2 7#c7 risk id5tification & measurem5t by ! crypto asset int]m$i>y2 7#d7 ! mitigation ( risk by ! crypto asset int]m$i>y1 includ+ policies ( ! crypto asset int]m$i>y1 controls implem5t$ by ! crypto asset int]m$i>y1 *ange managem5t ) respect to ! crypto asset int]m$i>y1 & ! supply *a9 integrity ( ! crypto asset int]m$i>y2 7#e7 assurance provid$ by1 & te/+ conduct$ by1 ! crypto asset int]m$i>y1 includ+ p5etration te/+ & indep5d5t audits s conduct$2 & 7#f7 ! pot5tial = crypto asset int]m$i>ies to be us$ to facilitate illicit activities1 includ+ sanctions avoidance4 7c7 ,consum] be/ practices ,n lat] ?an #ah mon?s aft] ! date ( enactm5t ( ?is ,act1 ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission1 9 consultation ) indu/ry & ! ,director ( ! ,cyb]security & ,infra/ructure ,security ,ag5cy1 %all adopt pla9-language cyb]security guidance = cu/om]s to safely transact 9 crypto assets4 ,,iii ,combat+ illicit f9ance #cja4 ,high] p5alties = crypto asset crimes ,section #abg ( ,public ,law #ia-ejh 7#ab ,u4,s4,c4 #aieg7 is am5d$ by ins]t+ 9 relation to a transaction pr9cipally compos$ ( crypto assets or aft] committ$4 #cjb4 ,anti-money laund]+ exam9ation /&>ds 7a7 ,treasury ,n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury1 9 consultation ) ! ,conf]5ce ( ,/ate ,bank ,sup]visors & ! ,f$]al ,f9ancial ,in/itutions ,exam9ation ,c\ncil1 %all e/abli% a risk-focus$ exam9ation & review process = money s]vice bus9esses1 z def9$ 9 section #ajaj4ajj ( title #ca1 ,code ( ,f$]al ,regulations1 to assess-- 7#a7 ! adequacy ( report+ obligations & anti-money laund]+ programs "u subsections 7g7 & 7h7 ( section #ecah ( title #ca1 ,unit$ ,/ates ,code1 respectively z appli$ to ^? bus9esses2 & 7#b7 compliance ( ^? bus9esses ) anti-money laund]+ & c\nt]+ ! f9anc+ ( t]rorism requirem5ts "u sub*apt] ,,ii ( *apt] #ec ( title #ca1 ,unit$ ,/ates ,code4 7b7 ,securities ,ex*ange ,commission ,n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act1 ! ,securities & ,ex*ange ,commission %all e/abli% a d$icat$ risk-focus$ exam9ation & review process = entities regulat$ by ! ,commission to assess-- 7#a7 ! adequacy ( report+ obligations & anti-money laund]+ programs "u subsections 7g7 & 7h7 ( section #ecah ( title #ca1 ,unit$ ,/ates ,code1 respectively z appli$ to ^? entities2 & 7#b7 compliance ( ^? entities ) anti-money laund]+ & c\nt]+ ! f9anc+ ( t]rorism requirem5ts "u sub*apt] ,,ii ( *apt] #ec ( title #ca1 ,unit$ ,/ates ,code4 7c7 ,commodity ,futures ,trad+ ,commission ,n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act1 ! ,commodity ,futures ,trad+ ,commission %all e/abli% a d$icat$ risk-focus$ exam9ation & review process = entities regulat$ by ! ,commodity ,futures ,trad+ ,commission to assess-- 7#a7 ! adequacy ( report+ obligations & anti-money laund]+ programs "u subsections 7g7 & 7h7 ( section #ecah ( title #ca1 ,unit$ ,/ates ,code1 respectively1 z appli$ to ^? entities2 & 7#b7 compliance ( ^? entities ) anti-money laund]+ & c\nt]+ ! f9anc+ ( t]rorism requirem5ts "u sub*apt] ,,ii ( *apt] #ec ( title #ca1 ,unit$ ,/ates ,code4 #cjc4 ,crypto asset kiosks 7a7 ,def9ition ,9 ?is section1 ! t]m crypto asset kiosk means a /&-alone ma*9e1 includ+ a crypto asset automat$ tell] ma*9e1 :i* facilitates ! buy+1 sell+1 or ex*ange ( crypto assets4 7b7 ,update ,beg9n+ n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act1 ! ,director ( ! ,f9ancial ,crimes ,en=cem5t ,network ( ! ,dep>tm5t ( ! ,treasury %all require crypto asset kiosk own]s & adm9i/rators to submit & update ! physical addresses ( ! kiosks own$ or op]at$ by ! own] or adm9i/rator1 z applicable1 once e #abj days4 7c7 ,rulemak+ ,n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act1 ! ,director ( ! ,f9ancial ,crimes ,en=cem5t ,network ( ! ,dep>tm5t ( ! ,treasury %all issue rules requir+ crypto asset kiosk own]s & adm9i/rators to v]ify ! id5tity ( ea* cu/om] us+ a valid =m ( gov]nm5t-issu$ id5tification or o!r docum5t>y me?od1 z det]m9$ by ! ,secret>y ( ! ,treasury4 7d7 ,reports 7#a7 ,f9ancial crimes en=cem5t network ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is ,act1 ! ,director ( ! ,f9ancial ,crimes ,en=cem5t ,network ( ! ,dep>tm5t ( ! ,treasury %all issue a public report id5tify+ unlic5s$ kiosk op]ators & adm9i/rators1 includ+ id5tification ( kn[n unlic5s$ op]ators & e/imates ( ! numb] & locations ( suspect$ unlic5s$ op]ators1 z applicable4 7#b7 ,drug en=cem5t ag5cy ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,drug ,en=cem5t ,adm9i/ration %all issue a report to ,congress id5tify+ recomm5dations to r$uce drug traffick+ ) crypto asset kiosks4 #cjd4 ,indep5d5t ,f9ancial ,te*nology ,work+ ,gr\p to ,combat ,t]rorism & ,illicit ,f9anc+ 7a7 ,def9itions ,9 ?is section3 7#a7 ,appropriate congressional committees ,! t]m appropriate congressional committees means-- 7,a7 ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs1 ! ,committee on ,homel& ,security & ,gov]nm5tal ,affairs1 ! ,committee on ! ,judici>y1 ! ,select ,committee on ,intellig5ce1 & ! ,committee on ,=eign ,relations ( ! ,s5ate2 & 7,b7 ! ,committee on ,f9ancial ,s]vices1 ! ,committee on ,homel& ,security1 ! ,committee on ! ,judici>y1 ! ,p]man5t ,select ,committee on ,intellig5ce1 & ! ,committee on ,=eign ,affairs ( ! ,h\se ( ,repres5tatives4 7#b7 ,di/ribut$ l$g] intellig5ce companies ,! t]m di/ribut$ l$g] intellig5ce companies means any bus9ess provid+ s(tw>e1 rese>*1 or o!r s]vices su* z b n limit$ to di/ribut$ l$g] trac+ tools1 ge(5c+1 transaction scre5+1 ! collection ( bus9ess data1 & sanctions scre5+1 :i* supports private & public sector inve/igations & risk managem5t activities involv+ cryptographically secur$ di/ribut$ l$g]s or any simil> analogue4 7#c7 ,=eign t]rori/ organization ,! t]m =eign t]rori/ organization means an organization t is designat$ z a =eign t]rori/ organization "u section #bai ( ! ,immigration & ,nationality ,act 7#h ,u4,s4,c4 #aahi74 7#d7 ,illicit use ,! t]m illicit use includes fraud1 d>knet m>ketplace transactions1 money laund]+1 ! pur*ase & sale ( illicit goods1 sanctions evasion1 !ft ( funds1 fund+ ( illegal activities1 transactions relat$ to *ild sexual abuse mat]ial1 & any o!r f9ancial transaction involv+ ! proce$s ( specifi$ unlawful activity 7z def9$ 9 section #aief7;c7 ( title #ah1 ,unit$ ,/ates ,code74 7#e7 ,t]rori/ ,! t]m t]rori/ includes a p]son c>ry+ out dome/ic t]rorism or int]national t]rorism 7z ^? t]ms are def9$ 9 section #bcca ( title #ah1 ,unit$ ,/ates ,code74 7#f7 ,work+ ,gr\p ,! t]m ,work+ ,gr\p means ! ,indep5d5t ,f9ancial ,te*nology ,work+ ,gr\p to ,combat ,t]rorism & ,illicit ,f9anc+ e/abli%$ "u subsection 7b74 7b7 ,e/abli%m5t ,!re is e/abli%$ ! ,indep5d5t ,f9ancial ,te*nology ,work+ ,gr\p to ,combat ,t]rorism & ,illicit ,f9anc+1 :i* %all consi/ ( ! foll[+3 7#a7 ,! ,secret>y ( ! ,treasury1 act+ ?r\gh ! ,"u ,secret>y = ,t]rorism & ,f9ancial ,intellig5ce1 :o %all s]ve z ! *air ( ! ,work+ ,gr\p4 7#b7 ,a s5ior-level repres5tative f ea* ( ! foll[+3 7,a7 ,ea* ( ! foll[+ compon5ts ( ! ,dep>tm5t ( ! ,treasury3 7i7 ,! ,f9ancial ,crimes ,en=cem5t ,network4 7ii7 ,! ,int]nal ,rev5ue ,s]vice4 7iii7 ,! ,(fice ( ,=eign ,assets ,control4 7,b7 ,! ,dep>tm5t ( ,ju/ice & ea* ( ! foll[+ compon5ts ( ! ,dep>tm5t3 7i7 ,! ,f$]al ,bureau ( ,inve/igation4 7ii7 ,! ,drug ,en=cem5t ,adm9i/ration4 7,c7 ,! ,dep>tm5t ( ,homel& ,security & ! ,unit$ ,/ates ,secret ,s]vice4 7,d7 ,! ,dep>tm5t ( ,/ate4 7#c7 ,five individuals appo9t$ by ! ,"u ,secret>y = ,t]rorism & ,f9ancial ,intellig5ce to repres5t ! foll[+3 7,a7 ,f9ancial te*nology companies4 7,b7 ,di/ribut$ l$g] intellig5ce companies4 7,c7 ,f9ancial in/itutions4 7,d7 ,in/itutions or organizations engag$ 9 rese>*4 7c7 ,duties ,! ,work+ ,gr\p %all-- 7#a7 conduct indep5d5t rese>* on t]rori/ & illicit use ( new f9ancial te*nologies1 includ+ crypto assets2 7#b7 analyze h[ crypto assets & em]g+ te*nologies may bol/] ! national security & economic competitiv5ess ( ! ,unit$ ,/ates 9 f9ancial innovation2 & 7#c7 develop legislative & regulatory proposals to improve anti-money laund]+1 c\nt]-t]rori/1 & o!r c\nt]-illicit f9anc+ ef=ts 9 ! ,unit$ ,/ates4 7d7 ,reports 7#a7 ,9 g5]al ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 & annually = ! #b ye>s !reaft]1 ! ,work+ ,gr\p %all submit to ! ,secret>y ( ! ,treasury1 ! heads ( ea* ag5cy repres5t$ 9 ! ,work+ ,gr\p pursuant to subsection 7b77#b71 & ! appropriate congressional committees a report conta9+ ! f9d+s & det]m9ations made by ! ,work+ ,gr\p 9 ! previ\s ye> & any legislative & regulatory proposals develop$ by ! ,work+ ,gr\p4 7#b7 ,f9al report ,be=e ! date on :i* ! ,work+ ,gr\p t]m9ates "u subsection 7f77#a71 ! ,work+ ,gr\p %all submit to ! appropriate congressional committees a f9al report detail+ ! f9d+s1 recomm5dations1 & activities ( ! ,work+ ,gr\p4 7e7 ,travel exp5ses ,memb]s ( ! ,work+ ,gr\p %all s]ve )\t pay1 b %all receive travel exp5ses 9 accordance ) sections #egjb & #egjc ( title #e1 ,unit$ ,/ates ,code4 7f7 ,sunset 7#a7 ,9 g5]al ,! ,work+ ,gr\p %all1 subject to p>agraph 7#c71 t]m9ate on ! date t is #d ye>s aft] ! date ( ! enactm5t ( ?is ,act4 7#b7 ,expiration & return ( appropriat$ funds ,on ! date on :i* ! ,work+ ,gr\p t]m9ates "u p>agraph 7#a7-- 7,a7 all au?orities grant$ to ! ,work+ ,gr\p "u ?is section %all expire1 subject to p>agraph 7#c72 & 7,b7 any funds appropriat$ = ! ,work+ ,gr\p t are available = obligation z ( t date %all be return$ to ! ,treasury4 7#c7 ,au?ority to w9d up activities ,! t]m9ation ( ! ,work+ ,gr\p "u p>agraph 7#a7 & ! expiration ( au?orities "u p>agraph 7#b7 %all n affect any inve/igations1 rese>*1 or o!r activities ( ! ,work+ ,gr\p ongo+ z ( ! date on :i* ! ,work+ ,gr\p t]m9ates "u p>agraph 7#a74 ,su* inve/igations1 rese>*1 & activities may cont9ue until _! completion4 7g7 ,report & /rategy ) respect to crypto assets & o!r relat$ em]g+ te*nologies 7#a7 ,9 g5]al ,n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is section1 ! ,presid5t1 act+ ?r\gh ! ,secret>y ( ! ,treasury1 & 9 consultation ) ! head ( ea* ag5cy repres5t$ on ! ,work+ ,gr\p "u subsection 7b71 %all submit to ! appropriate congressional committees a report t describes-- 7,a7 to ! ext5t n curr5tly disclos$ 9 o!r reports1 ! pot5tial uses ( crypto assets & o!r relat$ em]g+ te*nologies by /ates1 non-/ate actors1 & =eign t]rori/ organizations to evade sanctions1 f9ance t]rorism1 or laund] monet>y in/rum5ts1 & ?reat5 ,unit$ ,/ates national security2 & 7,b7 a /rategy h[ ! ,unit$ ,/ates w mitigate & prev5t ! illicit use ( crypto assets & o!r relat$ em]g+ te*nologies4 7#b7 ,=m ( report2 public availability 7,a7 ,9 g5]al ,! report requir$ by p>agraph 7#a7 %all be submitt$ 9 unclassifi$ =m1 b may include a classifi$ annex4 7,b7 ,public availability ,! unclassifi$ portion ( ! report requir$ by p>agraph 7#a7 %all be made available to ! public & po/$ on a publicly accessible website ( ! ,dep>tm5t ( ! ,treasury-- 7i7 9 precompress$1 easily d[nloadable v]sions1 9 all appropriate =mats2 & 7ii7 9 ma*9e-readable =mat1 if applicable4 7#c7 ,s\rces ( in=mation ,9 prep>+ ! report requir$ by p>agraph 7#a71 ! ,presid5t may utilize any cr$ible publication1 database1 or web-bas$ res\rce1 & any cr$ible in=mation compil$ by any gov]nm5t ag5cy1 nongov]nm5tal organization1 or o!r entity t is made available to ! ,presid5t4 7h7 ,brief+ ,n lat] ?an #b ye>s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all brief ! appropriate congressional committees on ! implem5tation ( ! /rategy requir$ by subsection 7g77#a74 #cje4 ,sanctions compliance responsibilities ( paym5t /ableco9 issu]s ,n lat] ?an #abj days aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all adopt guidance cl>ify+ ! sanctions compliance responsibilities & liability ( an issu] ( a paym5t /ableco9 ) respect to d[n/ream transactions relat+ to ! /ableco9 t take place aft] ! /ableco9 is fir/ provid$ to a cu/om] ( ! issu]4 #cjf4 ,crypto asset mix]s & tumbl]s 7a7 ,9 g5]al ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,director ( ! ,f9ancial ,crimes ,en=cem5t ,network ( ! ,dep>tm5t ( ! ,treasury %all submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives a report t analyzes ! foll[+ issues3 7#a7 ,curr5t 7z ( ! date on :i* ! report is submitt$7 typologies ( crypto asset mix]s & tumbl]s & hi/orical transaction volume4 7#b7 ,e/imates ( ! p]c5tage ( transactions relat+ to mix]s & tumbl]s :i* are us$ by actors engag$ 9 illicit f9ance4 7#c7 ,an assessm5t ( pot5tial non-illicit uses ( mix]s & tumbl]s describ$ 9 p>agraph 7#a74 7#d7 ,analysis ( regulatory approa*es employ$ by o!r jurisdictions relat+ to mix]s & tumbl]s4 7#e7 ,recomm5dations = legislation or regulation relat+ to mix]s & tumbl]s4 #cjg4 ,f9ancial ,crimes ,en=cem5t ,network ,innovation ,laboratory ,section #caj ( title #ca1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 by r$esignat+ subsections 7k7 & 7l7 z subsections 7l7 & 7m71 respectively2 & 7#b7 by ins]t+ aft] subsection 7j7 ! foll[+3 7k7 ,innovation laboratory 7#a7 ,9 g5]al ,!re is e/abli%$ )9 ! ,f9ancial ,crimes ,en=cem5t ,network an ,innovation ,laboratory to promote regulatory dialogue1 data %>+ betwe5 ! ,f9ancial ,crimes ,en=cem5t ,network & f9ancial companies1 & an assessm5t ( pot5tial *anges 9 law1 rules1 or policies to facilitate ! appropriate sup]vision ( f9ancial te*nology & ! laws "u ! jurisdiction ( ! bureau4 7#b7 ,*ief innovation (fic] ,! ,innovation ,(fic] appo9t$ )9 ! ,f9ancial ,crimes ,en=cem5t ,network "u section #fbjh ( ! ,anti-,money ,laund]+ ,act ( #bjbj 7#ca ,u4,s4,c4 #ecaa note7 %all manage ! ,innovation ,laboratory e/abli%$ "u p>agraph 7#a74 7#c7 ,pilot projects ,! ,innovation ,laboratory e/abli%$ "u p>agraph 7#a7 %all1 z appropriate1 conduct pilot projects ) f9ancial companies to m effectively facilitate ! sup]vision ( f9ancial te*nology1 consi/5t ) applicable law4 4 ,,iv ,responsible ,commodities regulation #dja4 ,def9itions ,section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a7 is am5d$-- 7#a7 9 p>agraph 7#i71 by /rik+ & froz5 conc5trat$ orange juice & ins]t+ froz5 conc5trat$ orange juice1 & a crypto asset 7consi/5t ) section #b7;c77#b77;,f772 7#b7 by r$esignat+ p>agraphs 7#ae7 ?r\gh 7#cg71 7#ch71 7#ci71 & 7#dj7 ?r\gh 7#ea7 z p>agraphs 7#ah7 ?r\gh 7#dj71 7#db71 7#dc71 & 7#de7 ?r\gh 7#ef71 respectively2 7#c7 by ins]t+ aft] p>agraph 7#ad7 ! foll[+3 7#ae7 ,crypto asset 7,a7 ,9 g5]al ,except z provid$ 9 subp>agraph 7,b71 ! t]m crypto asset has ! mean+ giv5 ! t]m 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code4 7,b7 ,exclusion ,! t]m crypto asset does n include an asset t provides ! hold] ( ! asset ) any ( ! foll[+ rights 9 a bus9ess entity3 7i7 ,a debt or equity int]e/ 9 t entity4 7ii7 ,liquidation rights ) respect to t entity4 7iii7 ,an entitlem5t to an int]e/ or divid5d paym5t f t entity4 7iv7 ,any o!r f9ancial int]e/ 9 t entity4 7#af7 ,crypto asset ex*ange ,! t]m crypto asset ex*ange means a trad+ facility t li/s = trad+ at lea/ #a crypto asset4 7#ag7 ,dec5traliz$ crypto asset ex*ange 7,a7 ,9 g5]al ,! t]m dec5traliz$ crypto asset ex*ange means s(tw>e t-- 7i7 comprises pr$et]m9$ & publicly disclos$ code deploy$ to a public di/ribut$ l$g]2 7ii7 p]mits a us] or gr\p ( us]s to create a pool or gr\p ( pools = crypto assets2 7iii7 enables a us] or gr\p ( us]s to conduct crypto asset transactions f a pool or gr\p ( pools1 ) su* transactions occurr+ pursuant to ! code describ$ 9 clause 7i72 & 7iv7 no p]son1 or gr\p ( p]sons1 kn[n to "o ano!r :o h ent]$ into an agreem5t 7impli$ or o!rwise7 to act 9 conc]t1 c unilat]ally control or cause to control ! s(tw>e protocol ?r\gh alt]+ transactions1 functions1 or actions on ! protocol1 or block+ or approv+ transactions on ! protocol4 7,b7 ,rule ( con/ruction ,= ! purposes ( subp>agraph 7,a77iv71 ! t]m control %all n include m9+1 validation1 or ! communication ( transactions to a di/ribut$ l$g]4 2 7#d7 9 p>agraph 7#ca77;,a77i7 7z s r$esignat$7-- 7,a7 9 subclause 7,i7-- 7i7 9 item 7aa7-- 7,i7 9 subitem 7,,ee71 by /rik+ or at ! end2 & 7,,ii7 by add+ at ! end ! foll[+3 7,,gg7 ! pur*ase or sale ( a crypto asset t is trad$ on or subject to ! rules ( a regi/]$ entity2 2 7ii7 9 item 7bb71 by /rik+ & at ! end & ins]t+ or2 & 7iii7 by add+ at ! end ! foll[+3 7cc7 act+ z a c\nt]p>ty 7n on a pr9cipal basis7 to any ca% or spot agreem5t1 contract1 or transaction involv+ a crypto asset1 :i* may include a paym5t /ableco91 ) a p]son :o is n an eligible contract p>ticipant1 unless ! activity is-- 7,,aa7 conduct$ 9 compliance ) ! laws ( ! ,/ate 9 :i* ! activity occurs2 7,,bb7 subject to regulation by ano!r ,f$]al au?ority2 or 7,,cc7 sep>ately regulat$ "u ?is ,act2 & 2 & 7,b7 9 subclause 7,,ii71 by /rik+ items 7aa7 or 7bb7 & ins]t+ item 7aa71 7bb71 or 7cc72 7#e7 by ins]t+ aft] p>agraph 7#dj7 7z s r$esignat$7 ! foll[+3 7#da7 ,paym5t /ableco9 ,! t]m paym5t /ableco9 has ! mean+ giv5 ! t]m 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code4 2 7#f7 by ins]t+ aft] p>agraph 7#dc7 7z s r$esignat$7 ! foll[+3 7#dd7 ,regi/]$ crypto asset ex*ange ,! t]m regi/]$ crypto asset ex*ange means a crypto asset ex*ange regi/]$ "u section #e;i4 2 7#g7 9 p>agraph 7#de7 7z s r$esignat$7-- 7,a7 9 subp>agraph 7,e71 by /rik+ & at ! end2 7,b7 by r$esignat+ subp>agraph 7,f7 z subp>agraph 7,g72 & 7,c7 by ins]t+ aft] subp>agraph 7,e7 ! foll[+3 7,f7 a regi/]$ crypto asset ex*ange2 & 2 & 7#h7 9 p>agraph 7#ef77;,b77i7 7z s r$esignat$71 by ins]t+ or a dec5traliz$ crypto asset ex*ange aft] execution algori?m4 #djb4 ,report+ & recordkeep+ ,section #d;g ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #f;g7 is am5d$-- 7#a7 9 subsection 7a71 by ins]t+ crypto assets or be=e commodities2 & 7#b7 9 subsection 7d71 9 ! second s5t5ce1 by /rik+ commodity futures & ins]t+ commodities4 #djc4 ,jurisdiction ov] crypto asset transactions 7a7 ,commission jurisdiction ov] retail crypto asset transactions 7#a7 ,9 g5]al ,section #b7;c77#b7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #b7;c77#b77 is am5d$-- 7,a7 9 subp>agraph 7,d77ii7-- 7i7 9 subclause 7,,iii71 9 ! matt] prec$+ item 7aa71 by ins]t+ ( a commodity1 o!r ?an a crypto asset1 aft] sale2 7ii7 by r$esignat+ subclauses 7,,iv7 & 7,v7 z subclauses 7,v7 & 7,,vi71 respectively2 & 7iii7 by ins]t+ aft] subclause 7,,iii7 ! foll[+3 7,,iv7 a contract ( sale ( a crypto asset t-- 7aa7 results 9 actual deliv]y )9 #b days or su* o!r p]iod z ! ,commission may det]m9e by rule bas$ ^u ! typical comm]cial practice 9 ca% or spot m>kets = ! crypto asset involv$2 or 7bb7 is execut$ on or subject to ! rules ( a regi/]$ crypto asset ex*ange or ) a regi/]$ futures commission m]*ant2 2 & 7,b7 by add+ at ! end ! foll[+3 7,f7 ,commission jurisdiction ov] crypto asset transactions 7i7 ,9 g5]al 7,i7 ,jurisdiction ,subject to sections #f;d & #ab7;e7 & section #djc ( ! ,commodity ,futures ,mod]nization ,act ( #bjjj 7#g ,u4,s4,c4 #bg;a7 & except z provid$ 9 subclauses 7,,ii7 & 7,,iii71 ! ,commission %all h exclusive jurisdiction ov] any agreem5t1 contract1 or transaction involv+ a contract ( sale ( a crypto asset 9 or affect+ int]/ate comm]ce1 includ+-- 7aa7 ancill>y assets t are 9 compliance ) ! requirem5ts ( section #db ( ! ,securities ,ex*ange ,act ( #aicd2 & 7bb7 all activities relat+ to a paym5t /ableco9 conduct$ by an entity regi/]$ "u ?is ,act1 includ+ brok]+1 trad+1 & cu/odial activities relat+ to paym5t /ableco9s4 7,,ii7 ,exceptions ,subclause 7,i7 %all n apply to specifi$ p]iodic report+ requirem5ts made by an issu] t provid$ ! hold] ( a security ) an ancill>y asset "u section #db7;b77#d7 ( ! ,securities ,ex*ange ,act ( #aicd & ! security t con/itutes an inve/m5t contract 7)9 ! mean+ ( section #b7;a77#a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a77#a777 ) respect to t ancill>y asset4 7,,iii7 ,fungibility requirem5t ,! ,commission %all only ex]cise jurisdiction ov] an agreem5t1 contract1 or transaction involv+ a contract ( sale ( a crypto asset t is comm]cially fungible1 :i* %all n include digital collectibles & o!r unique crypto assets4 7ii7 ,)hold+ ( rulemak+ au?ority ov] c]ta9 transactions ,no?+ 9 ?is subp>agraph au?orizes ! ,commission to issue any rule reg>d+ any agreem5t1 contract1 or transaction t is n (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 7) ! exception ( entities requir$ to regi/] "u ?is ,act72 or 7,,ii7 by any o!r entity regi/]$ by ! ,commission4 7iii7 ,limitation ,clause 7i7 %all n apply to cu/odial activities ) respect to a crypto asset ( an entity sup]vis$ or regulat$ by a ,/ate or o!r ,f$]al regulatory ag5cy4 4 7#b7 ,con=m+ am5dm5t ,section #b7;a77#a77;,a7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #b7;a77#a77;,a77 is am5d$1 9 ! fir/ s5t5ce1 by /rik+ section #ai ( ?is ,act & ins]t+ subsection 7c77#b77;,f7 or section #ai4 7b7 ,segregation ( crypto assets ,section #d;d ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #f;d7 is am5d$ by add+ at ! end ! foll[+3 7i7 ,segregation ( crypto assets 7#a7 ,hold+ ( cu/om] assets 7,a7 ,9 g5]al ,ea* futures commission m]*ant %all hold cu/om] money1 assets1 & prop]ty 9 a mann] to m9imize ! cu/om]'s risk ( loss (1 or unreasonable delay 9 ! access to1 ! money1 assets1 & prop]ty4 7,b7 ,cu/odian ,a futures commission m]*ant %all hold ! prop]ty ( a cu/om] ( ! futures commission m]*ant ) a sep>ate lic5s$1 *>t]$1 or regi/]$ entity subject to regulation or sup]vision by #a ( ! foll[+ ag5cies3 7i7 ,! ,commission4 7ii7 ,! ,securities & ,ex*ange ,commission4 7iii7 ,an appropriate ,f$]al bank+ ag5cy 7z def9$ 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac774 7iv7 ,a ,/ate bank sup]visor 7z def9$ 9 t section74 7v7 ,an appropriate =eign gov]nm5tal au?ority 9 ! home c\ntry ( ! cu/odian4 7#b7 ,segregation ( funds 7,a7 ,def9ition ( crypto asset cu/om] ,9 ?is p>agraph1 ! t]m crypto asset cu/om] means a cu/om] involv$ 9 a ca% or spot1 lev]ag$1 m>g9$1 or f9anc$ crypto asset transaction1 :i* may include a paym5t /ableco91 9 :i* ! futures commission m]*ant is act+ z ! c\nt]p>ty4 7,b7 ,requirem5ts 7i7 ,9 g5]al ,a futures commission m]*ant %all treat & deal ) all money1 assets1 & prop]ty ( any crypto asset cu/om] receiv$ z belong+ to ! cu/om]4 7ii7 ,comm+l+ prohibit$ ,money1 assets1 & prop]ty ( a crypto asset cu/om] describ$ 9 clause 7i7-- 7,i7 %all be sep>ately acc\nt$ =2 & 7,,ii7 %all n be-- 7aa7 comm+l$ ) ! funds ( ! futures commission m]*ant2 or 7bb7 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 ! money1 assets1 or prop]ty are held4 7,c7 ,exceptions 7i7 ,use ( funds 7,i7 ,9 g5]al ,not)/&+ subp>agraph 7,b71 money1 assets1 & prop]ty ( a crypto asset cu/om] may1 = ! purposes describ$ 9 subclause 7,,ii71 be comm+l$ & deposit$ 9 ! same acc\nt or acc\nts ) an entity describ$ 9 p>agraph 7#a77;,b74 7,,ii7 ,)drawal ,not)/&+ subp>agraph 7,b71 ! %>e ( ! money1 assets1 & prop]ty describ$ 9 subclause 7,i7 z 9 ! normal c\rse ( bus9ess is necess>y to m>g91 gu>antee1 secure1 transf]1 adju/1 or settle a crypto asset transaction ) a regi/]$ entity may be )drawn & appli$ to ^? purposes1 includ+ ! paym5t ( commissions1 brok]age1 int]e/1 taxes1 /orage1 & o!r *>ges1 lawfully accru+ 9 connection ) ! crypto asset transaction4 7ii7 ,commission action ,not)/&+ subp>agraph 7,b71 9 accordance ) su* t]ms & conditions z ! ,commission may prescribe by rule or ord]1 any money1 assets1 or prop]ty ( a crypto asset cu/om] may be comm+l$ & deposit$ 9 cu/om] acc\nts ) any o!r money1 assets1 or prop]ty receiv$ by ! futures commission m]*ant & requir$ by ! ,commission to be sep>ately acc\nt$ = & treat$ & dealt ) z belong+ to ! crypto asset cu/om]4 7,d7 ,p]mitt$ inve/m5ts ,money ( a crypto asset cu/om] may be inve/$-- 7i7 9-- 7,i7 obligations ( ! ,unit$ ,/ates2 7,,ii7 g5]al obligations ( any ,/ate or ( any political subdivision ( a ,/ate t are inve/m5t-grade2 7,,iii7 obligations fully gu>ante$ z to pr9cipal & int]e/ by ! ,unit$ ,/ates2 or 7,,iv7 any o!r inve/m5t t ! ,commission may by rule prescribe2 & 7ii7 9 accordance ) su* rules & subject to su* conditions z ! ,commission may prescribe4 7,e7 ,prohibition ,x %all be unlawful = any p]son1 includ+ any d]ivatives cle>+ organization or depository in/itution1 t has receiv$ any money1 assets1 or prop]ty = deposit 9 a sep>ate acc\nt or acc\nts z requir$ by subp>agraph 7,b7 to hold1 dispose (1 or use any ( ! money1 assets1 or prop]ty t belongs to ! deposit+ futures commission m]*ant or any p]son o!r ?an ! crypto asset cu/om] ( ! futures commission m]*ant4 7#c7 ,cu/om] "r to opt out 7,a7 ,9 g5]al ,a cu/om] %all h ! "r to waive any requirem5t "u ?is subsection by affirmatively elect+1 9 writ+ to ! futures commission m]*ant1 to waive ! requirem5t4 7,b7 ,limitations ,! ,commission may1 by rule1 e/abli% notice & disclosure requirem5ts1 segregation requirem5ts1 inve/m5t limitations1 & o!r rules relat+ to ! waiv+ ( any requirem5t "u ?is subsection t are reasonably necess>y to protect cu/om]s1 includ+ eligible contract p>ticipants1 non-eligible contract p>ticipants1 & any o!r class ( cu/om]s4 4 7c7 ,limitation on futures commission m]*ants act+ z a c\nt]p>ty 9 crypto asset transactions ,section #d;d ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #f;d7 7z am5d$ by subsection 7b77 is am5d$ by add+ at ! end ! foll[+3 7j7 ,risk managem5t /&>ds = dec5traliz$ crypto asset ex*anges 7#a7 ,9 g5]al ,prior to conduct+ trad+ activity 7includ+ r\t+ ord]s & direct$ trad+7 ?r\gh a dec5traliz$ crypto asset ex*ange1 or o!rwise provid+ cu/om] access to a dec5traliz$ crypto asset ex*ange1 a futures commission m]*ant %all implem5t risk managem5t /&>ds ) respect to trad+ activity ?r\gh t dec5traliz$ crypto asset ex*ange4 7#b7 ,requirem5ts ,a futures commission m]*ant %all-- 7,a7 implem5t an effective risk-bas$ proc$ure = det]m9+ :e!r to execute1 reject1 or susp5d an incom+ or outgo+ transaction relat+ to a dec5traliz$ crypto asset ex*ange1 includ+ a det]m9ation bas$ on suspect$ money laund]+1 sanctions evasion1 fraud1 or m>ket manipulation2 7,b7 conduct an effective risk-bas$ analysis ( ! code ( ! dec5traliz$ crypto asset ex*ange to det]m9e :e!r crypto asset transactions c occur on ! ex*ange securely1 consi/5tly1 & immutably2 7,c7 v]ify t ! code = ! dec5traliz$ crypto asset ex*ange is widely available to ! public2 7,d7 v]ify t !re are appropriate develop] docum5ts relat+ to ! dec5traliz$ crypto asset ex*ange t appropriately disclose all risks ( ! s(tw>e2 7,e7 conduct an effective risk analysis ) respect to ! dec5traliz$ crypto asset ex*ange1 includ+-- 7i7 money laund]+ & sanctions evasion2 7ii7 settlem5t2 7iii7 fraud & m>ket manipulation2 & 7iv7 op]ational & cyb]security risk1 includ+-- 7,i7 ! use ( multi-signature wallets2 7,,ii7 integration ) ?ird-p>ty s(tw>e or v5dors2 7,,iii7 any mat]ial ef=ts to alt] ! functionality ( ! protocol2 & 7,,iv7 all o!r mat]ial risks2 7,f7 implem5t robu/ policies & proc$ures to mitigate ! risks id5tifi$ 9 subp>agraph 7,e72 7,g7 disclose ! risks id5tifi$ 9 subp>agraph 7,e7 us+ pla9 language to cu/om]s2 7,h7 ma9ta9 robu/ capability to detect m>ket manipulation1 fraud1 money laund]+1 & sanctions evasion occurr+ on ! dec5traliz$ crypto asset ex*ange1 includ+ ?r\gh ! use ( tools t w prop]ly t>get ^? risks1 includ+ ?r\gh di/ribut$ l$g] intellig5ce companies2 7,i7 ensure t ! m]*ant is n trad+ ) a dec5traliz$ crypto asset ex*ange on a pr9cipal basis1 b solely on an ag5cy basis at ! reque/ ( a cu/om]2 & 7,j7 consi/5t ) ?is subsection1 implem5t o!r /&>ds ! ,commission may require by rule4 7k7 ,risk managem5t /&>ds = self-,ho/$ wallets 7#a7 ,9 g5]al ,! ,commission %all adopt risk managem5t /&>ds relat+ to money laund]+1 cu/om] id5tification & sanctions = self-ho/$ wallets t conduct transactions ) a futures commission m]*ant4 7#b7 ,def9ition ( self-ho/$ wallet ,9 ?is subsection1 ! t]m self-ho/$ wallet means a digital int]face us$ to secure & transf] crypto assets1 9 :i* ! own] ( ! assets reta9s indep5d5t control 9 a mann] t is secur$ by t int]face4 4 7l7 ,limitation on futures commission m]*ants act+ z a c\nt]p>ty 9 crypto asset transactions ,a regi/]$ futures commission m]*ant %all n act z a c\nt]p>ty 9 any agreem5t1 contract1 or transaction involv+ a crypto asset t has n be5 li/$ = trad+ on a regi/]$ crypto asset ex*ange4 7m7 ,applicability ( o!r core pr9ciples ,! ,commission may require a regi/]$ futures commission m]*ant to comply ) o!r /&>ds ( section #e;i1 includ+ ! core pr9ciples describ$ 9 t section1 if appropriate bas$ on ! activities & risk pr(ile ( ! m]*ant4 4 7d7 ,common provisions applicable to regi/]$ entities ,section #e;c ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #g;a-#b7 is am5d$-- 7#a7 9 subsection 7a77#a71 by /rik+ #e7;d7 & #e;b7c77#b7 & ins]t+ #e7;d71 #e;b7c77#b71 & #e;i7c72 7#b7 9 subsection 7b71 by ins]t+ regi/]$ crypto asset 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 = ! li/+ ( c]ta9 crypto assets 7i7 ,9 g5]al ,9 ! case ( a li/+ = trad+ a crypto asset t has n previ\sly be5 li/$ = trad+ on ano!r regi/]$ entity-- 7,i7 p>agraphs 7#b7 & 7#c7 %all apply z if ! li/+ 7 a rule2 & 7,,ii7 p>agraph 7#b7 %all be appli$ by sub/itut+ #bj bus9ess days = #aj bus9ess days4 7ii7 ,transitional ext5sion ,dur+ ! #ah-mon? p]iod beg9n+ on ! date ( ! regi/ration ( ! fir/ crypto asset ex*ange1 ! ,commission %all h an additional #bj bus9ess days to review any c]tification "u clause 7i74 7iii7 ,consid]ation ( comm5ts ,9 conduct+ a review "u clause 7i71 ! ,commission %all consid] any comm5ts provid$ by ! ,securities & ,ex*ange ,commission ) respect to ! legal classification ( a crypto asset4 4 #djd4 ,regi/ration ( crypto asset ex*anges 7a7 ,9 g5]al ,! ,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 ( crypto asset ex*anges 7a7 ,def9ition ( cu/om] ,9 ?is section1 ! t]m cu/om] means any p]son t ma9ta9s an acc\nt = ! trad+ ( crypto assets or paym5t /ableco9s directly ) a regi/]$ crypto asset ex*ange 7o!r ?an a p]son t is own$ or controll$1 directly or indirectly1 by ! regi/]$ crypto asset ex*ange74 7b7 ,regi/ration 7#a7 ,9 g5]al ,any trad+ facility t (f]s or seeks to (f] a m>ket 9 crypto assets or paym5t /ableco9s %all regi/] ) ! ,commission z a crypto asset ex*ange by submitt+ to ! ,commission an application 9 su* =m & conta9+ su* in=mation z ! ,commission may require = ! purpose ( mak+ ! det]m9ations requir$ = approval "u subsections 7d7 & 7f74 7#b7 ,deem$ regi/ration ,a regi/]$ designat$ contract m>ket or regi/]$ swap execution facility t fulfills ! requirem5ts ( ?is section may elect to be consid]$ a regi/]$ crypto asset ex*ange1 9 su* =m & mann] z ! ,commission %all prescribe4 7#c7 ,additional regi/ration ,a regi/]$ crypto asset ex*ange %all be regi/]$ ) ! ,secret>y ( ! ,treasury z a money s]vices bus9ess & ) a cu/om] protection & m>ket integrity au?ority regi/]$ "u section #ihji ( title #ca1 ,unit$ ,/ates ,code4 7c7 ,trad+ 7#a7 ,9 g5]al ,a regi/]$ crypto asset ex*ange may make available = trad+ any crypto asset or paym5t /ableco91 t is n readily susceptible to manipulation1 subject to ?is subsection4 7#b7 ,requirem5ts 7,a7 ,ancill>y assets ,an ancill>y asset %all n be made available = trad+ on a regi/]$ crypto asset ex*ange unless ! asset is 9 compliance ) section #db ( ! ,securities ,ex*ange ,act ( #aicd4 7,b7 ,confirmation ,a regi/]$ crypto asset ex*ange %all h a duty to confirm an ancill>y asset is 9 compliance be=e mak+ ! asset available = trad+4 7#c7 ,rules gov]n+ m>g9$ or lev]ag$ trad+ ,! ,commission may make1 promulgate1 & en=ce su* additional rules gov]n+ m>g9$1 lev]ag$1 or f9anc$ transactions z are reasonably necess>y to protect m>ket p>ticipants & promote ! ord]ly settlem5t ( transactions ) respect to-- 7,a7 disclosure2 7,b7 recordkeep+2 7,c7 capital1 m>g91 & o!r f9ancial res\rces2 7,d7 report+2 7,e7 bus9ess conduct2 7,f7 docum5tation2 & 7,g7 su* o!r matt]s z ! ,commission det]m9es to be necess>y4 7#d7 ,prohibition 7,a7 ,9 g5]al ,regi/ration z a crypto asset ex*ange %all n p]mit a trad+ facility to (f] any contract ( sale ( a commodity = future deliv]y1 option1 or swap = trad+ )\t also be+ regi/]$ z a designat$ contract m>ket or swap execution facility4 7,b7 ,propriet>y trad+ ,a regi/]$ crypto asset ex*ange %all n conduct propriet>y trad+1 b may conduct m>ket mak+ "u /&>ds e/abli%$ by ! ,commission by rule4 7d7 ,core pr9ciples = crypto asset ex*anges 7#a7 ,compliance ) core pr9ciples 7,a7 ,9 g5]al ,to be regi/]$1 & ma9ta9 regi/ration1 z a crypto asset ex*ange1 ! regi/]$ crypto asset ex*ange %all comply )-- 7i7 ! core pr9ciples describ$ 9 ?is subsection1 & annually c]tify su* compliance2 & 7ii7 any requirem5t t ! ,commission may impose by rule pursuant to section #h;a7#e74 7,b7 ,reasonable discretion ( crypto asset ex*ange ,unless o!rwise det]m9$ by ! ,commission by rule1 a regi/]$ crypto asset ex*ange describ$ 9 subp>agraph 7,a7 %all h reasonable discretion 9 e/abli%+ ! mann] 9 :i* ! regi/]$ crypto asset ex*ange complies ) ! core pr9ciples describ$ 9 ?is subsection4 7#b7 ,compliance ) rules ,a regi/]$ crypto asset ex*ange %all-- 7,a7 e/abli% & en=ce compliance ) #a or m rules ( ! regi/]$ crypto asset ex*ange1 includ+-- 7i7 ! t]ms & conditions ( ! trades trad$ or process$ on or ?r\gh ! regi/]$ crypto asset ex*ange2 & 7ii7 any limitation on access to ! regi/]$ crypto asset ex*ange2 7,b7 e/abli% & en=ce compliance ) trad+1 trade process+1 & p>ticipation rules t w det] abuses & h ! capacity to detect1 inve/igate1 & en=ce violations ( ^? 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$2 & 7,c7 e/abli% rules gov]n+ ! op]ation ( ! regi/]$ crypto asset ex*ange1 includ+ rules specify+ trad+ proc$ures to be us$ 9 ent]+ & execut+ ord]s trad$ or po/$ on ! regi/]$ crypto asset ex*ange4 7#c7 ,crypto assets n readily susceptible to manipulation 7,a7 ,9 g5]al ,a regi/]$ crypto asset ex*ange %all p]mit trad+ only 9 assets t are n readily susceptible to manipulation4 7,b7 ,li/+ re/rictions ,a regi/]$ crypto asset ex*ange %all n p]mit trad+ 9 a crypto asset or paym5t /ableco9 if x is reasonably likely t-- 7i7 ! transaction hi/ory ( ! asset c be fraudul5tly alt]$ by any p]son or gr\p ( p]sons act+ collectively2 or 7ii7 ! functionality or op]ation ( ! asset c be mat]ially alt]$ by any p]son or gr\p ( p]sons "u common control4 7,c7 ,consid]ations ,9 assess+ a crypto asset or paym5t /ableco9 "u ?is p>agraph1 a regi/]$ crypto asset ex*ange %all consid]-- 7i7 ! purpose & use ( ! asset2 7ii7 ! creation or release process ( ! asset2 7iii7 ! cons5sus me*anism ( ! asset2 7iv7 ! gov]nance /ructure ( ! asset2 7v7 ! p>ticipation & di/ribution ( ! asset2 7vi7 ! curr5t & propos$ functionality ( ! asset2 7vii7 ! legal classification ( ! asset2 & 7viii7 any o!r factor requir$ by ! ,commission4 7#d7 ,treatm5t ( cu/om] assets 7,a7 ,requir$ /&>ds & proc$ures ,a regi/]$ crypto asset ex*ange %all e/abli% /&>ds & proc$ures t are design$ to protect & ensure ! safety ( cu/om] money1 assets1 & prop]ty4 7,b7 ,hold+ ( cu/om] assets 7i7 ,9 g5]al ,a regi/]$ crypto asset ex*ange %all hold cu/om] money1 assets1 & prop]ty 9 a mann] to m9imize ! cu/om]'s risk ( loss (1 or unreasonable delay 9 ! access to1 ! money1 assets1 & prop]ty4 7ii7 ,segregation ( funds 7,i7 ,9 g5]al ,a regi/]$ crypto asset ex*ange %all treat & deal ) all money1 assets1 & prop]ty ( any cu/om] receiv$ z belong+ to ! cu/om]4 7,,ii7 ,comm+l+ prohibit$ ,money1 assets1 & prop]ty ( a cu/om] describ$ 9 subclause 7,i7-- 7aa7 %all be sep>ately acc\nt$ =2 & 7bb7 %all n be-- 7,,aa7 comm+l$ ) ! funds ( ! regi/]$ crypto asset ex*ange2 or 7,,bb7 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 ! money1 assets1 or prop]ty are held4 7iii7 ,exceptions 7,i7 ,use ( funds 7aa7 ,9 g5]al ,not)/&+ clause 7ii71 money1 assets1 & prop]ty ( cu/om]s ( a regi/]$ crypto asset ex*ange may1 = ! purposes describ$ 9 item 7bb71 be comm+l$ & deposit$ ) an entity describ$ 9 section #d;d7i77#a77;,b74 7bb7 ,)drawal ,not)/&+ clause 7ii71 ! %>e ( ! money1 assets1 & prop]ty describ$ 9 item 7aa7 z 9 ! normal c\rse ( bus9ess is necess>y to m>g91 gu>antee1 secure1 transf]1 adju/1 or settle a crypto asset transaction ) a regi/]$ entity may be )drawn & appli$ to ^? purposes1 includ+ ! paym5t ( commissions1 brok]age1 int]e/1 taxes1 /orage1 & o!r *>ges1 lawfully accru+ 9 connection ) ! crypto asset transaction4 7,,ii7 ,commission action ,not)/&+ clause 7ii71 9 accordance ) su* t]ms & conditions z ! ,commission may prescribe by rule or ord]1 any money1 assets1 or prop]ty ( ! cu/om]s ( a regi/]$ crypto asset ex*ange may be comm+l$ & deposit$ 9 cu/om] acc\nts ) any o!r money1 assets1 or prop]ty receiv$ by ! regi/]$ crypto asset ex*ange & requir$ by ! ,commission to be sep>ately acc\nt$ = & treat$ & dealt ) z belong+ to ! cu/om] ( ! regi/]$ crypto asset ex*ange4 7,c7 ,p]mitt$ inve/m5ts ,money ref]r$ to 9 subp>agraph 7,b77ii77,i7 may be inve/$-- 7i7 9-- 7,i7 obligations ( ! ,unit$ ,/ates2 7,,ii7 g5]al obligations ( any ,/ate or ( any political subdivision ( a ,/ate t are inve/m5t-grade2 7,,iii7 obligations fully gu>ante$ z to pr9cipal & int]e/ by ! ,unit$ ,/ates2 or 7,,iv7 any o!r inve/m5t t ! ,commission may by rule prescribe2 & 7ii7 9 accordance ) su* rules & subject to su* conditions z ! ,commission may prescribe4 7,d7 ,misuse ( cu/om] prop]ty ,x %all be unlawful-- 7i7 = any regi/]$ crypto asset ex*ange t has receiv$ any cu/om] money1 assets1 or prop]ty = cu/ody to dispose (1 or use any ( ! money1 assets1 or prop]ty z belong+ to ! regi/]$ crypto asset ex*ange2 or 7ii7 = any o!r p]son1 includ+ any o!r regi/]$ crypto asset ex*ange or cu/odian t has receiv$ any cu/om] money1 assets1 or prop]ty = deposit1 to hold1 dispose (1 or use any ( ! money1 assets1 or prop]ty z belong+ to-- 7,i7 ! regi/]$ crypto asset ex*ange t deposit$ ! money1 assets1 or prop]ty2 or 7,,ii7 any p]son o!r ?an ! cu/om]s ( ! regi/]$ crypto asset ex*ange4 7,e7 ,cu/om] "r to opt out 7i7 ,9 g5]al ,a cu/om] %all h ! "r to waive any requirem5t "u subp>agraph 7,b7 by affirmatively elect+1 9 writ+ to ! regi/]$ crypto asset ex*ange1 to waive ! requirem5t4 7ii7 ,limitations ,! ,commission may1 by rule1 e/abli% notice & disclosure requirem5ts1 segregation requirem5ts1 inve/m5t limitations1 & o!r rules relat+ to ! waiv+ ( any requirem5t "u ?is p>agraph t is 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#e7 ,monitor+ ( trad+ & trade process+ 7,a7 ,9 g5]al ,a regi/]$ crypto asset ex*ange %all provide a competitive1 op51 & effici5t m>ket & me*anism = execut+ transactions t protects ! price discov]y process ( trad+ on ! regi/]$ crypto asset ex*ange4 7,b7 ,protection ( m>kets & m>ket p>ticipants ,a regi/]$ crypto asset ex*ange %all e/abli% & en=ce compliance ) 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 ! regi/]$ crypto asset ex*ange4 7,c7 ,proc$ures & monitor+ ,a regi/]$ crypto asset ex*ange %all-- 7i7 e/abli% & en=ce compliance ) 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 ( ! regi/]$ crypto asset ex*ange2 & 7,,ii7 proc$ures = trade process+ ( crypto assets on or ?r\gh ! facilities ( ! regi/]$ crypto asset ex*ange2 & 7ii7 monitor trad+ 9 crypto assets to prev5t manipulation1 price di/ortion1 & disruptions ( ! deliv]y or ca% settlem5t process ?r\gh surveillance1 & compliance1 includ+ me?ods = conduct+ real-"t monitor+ ( trad+ & compreh5sive & accurate trade recon/ructions4 7#f7 ,ability to obta9 in=mation ,a regi/]$ crypto asset ex*ange %all-- 7,a7 e/abli% & en=ce rules t w all[ ! regi/]$ crypto asset ex*ange 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 regi/]$ crypto asset 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 crypto asset or to susp5d or curtail trad+ 9 a crypto asset4 7#h7 ,report+ requirem5ts 7,a7 ,9 g5]al ,a regi/]$ crypto asset ex*ange %all provide to ! ,commission in=mation t is det]m9$ by ! ,commission to be necess>y to p]=m any responsibility ( ! ,commission "u ?is ,act4 7,b7 ,timely publication ( trad+ in=mation 7i7 ,9 g5]al 7,i7 ,publication ,a regi/]$ crypto asset ex*ange %all make public timely in=mation on price1 trad+ volume1 & o!r trad+ data on crypto assets to ! ext5t prescrib$ by ! ,commission4 7,,ii7 ,accessibility ,a regi/]$ crypto asset ex*ange may make trad+ data freely accessible to ! public "u rules e/abli%$ by ! ,commission4 7ii7 ,capacity ( crypto asset ex*ange ,a regi/]$ crypto asset ex*ange %all be requir$ to h ! capacity to electronically capture & transmit trade in=mation ) respect to transactions execut$ on ! regi/]$ crypto asset ex*ange4 7#i7 ,recordkeep+ & report+ 7,a7 ,9 g5]al ,a regi/]$ crypto asset ex*ange %all-- 7i7 ma9ta9 records ( all activities relat+ to ! bus9ess ( ! regi/]$ crypto asset ex*ange1 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 records relat+ to ancill>y assets 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 a cu/om] protection & m>ket integrity au?ority or o!r entity delegat$ regulatory & discipl9>y au?ority by a gov]nm5tal ag5cy2 7ii7 ! ,securities & ,ex*ange ,commission2 7iii7 an appropriate ,f$]al bank+ ag5cy 7z def9$ 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac772 7iv7 a ,/ate bank sup]visor 7z def9$ 9 t section72 7v7 a ,/ate securities or commodities regulator2 7vi7 ! ,f9ancial ,/ability ,ov]sight ,c\ncil2 7vii7 ! ,dep>tm5t ( ,ju/ice2 & 7viii7 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 ent] into a writt5 agreem5t ) ea* entity /at+ t ! entity %all abide by ! confid5tiality requirem5ts describ$ 9 section #h relat+ to ! in=mation on crypto asset transactions t is provid$4 7,d7 ,provid+ in=mation ,ea* regi/]$ crypto asset 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 regi/]$ crypto asset 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/]$ crypto asset ex*ange %all-- 7,a7 e/abli% & en=ce rules to m9imize conflicts ( int]e/ 9 ! decisionmak+ process ( ! regi/]$ crypto asset ex*ange2 7,b7 e/abli% a process = resolv+ conflicts ( int]e/ describ$ 9 subp>agraph 7,a72 & 7,c7 disclose fee arrangem5ts f affiliates & ?ird-p>ty s]vice provid]s1 & crypto assets trad$ on ! ex*ange 9 :i* ! ex*ange may h a f9ancial int]e/4 7#ab7 ,f9ancial res\rces 7,a7 ,9 g5]al ,a regi/]$ crypto asset ex*ange %all h adequate f9ancial1 op]ational1 & manag]ial res\rces1 z det]m9$ by ! ,commission1 to dis*>ge ea* responsibility ( ! regi/]$ crypto asset ex*ange4 7,b7 ,m9imum am\nt ( f9ancial res\rces ,a regi/]$ crypto asset ex*ange %all possess f9ancial res\rces t1 at a m9imum1 exce$ ! total am\nt t w\ld enable ! regi/]$ crypto asset ex*ange to conduct an ord]ly w9d-d[n ( ! activities ( ! regi/]$ crypto asset ex*ange4 7,c7 ,additional f9ancial res\rces = lev]age trad+ ,! ,commission may require su* additional f9ancial res\rces z are necess>y to enable a regi/]$ crypto asset ex*ange t (f]s m>g9$1 lev]ag$1 or f9anc$ transactions to fulfill ! cu/om] obligations ( ! regi/]$ crypto asset ex*ange4 7#ac7 ,gov]nance fitness /&>ds 7,a7 ,gov]nance arrangem5ts ,a regi/]$ crypto asset ex*ange %all-- 7i7 e/abli% gov]nance arrangem5ts t are transp>5t to fulfill public int]e/ requirem5ts2 & 7ii7 at all times1 ma9ta9 a *ief compliance (fic] & an appropriate compliance & risk managem5t function4 7,b7 ,fitness /&>ds ,a regi/]$ crypto asset ex*ange %all e/abli% & en=ce appropriate fitness /&>ds =-- 7i7 directors2 7ii7 any individual or entity ) legal or te*nological au?ority to execute ! settlem5t activities ( ! regi/]$ crypto asset ex*ange2 7iii7 any individual or entity ) direct access to any cu/odian affiliat$ ) ! regi/]$ crypto asset ex*ange2 7iv7 any entity (f]+ affiliat$ s]vices = ! regi/]$ crypto asset ex*ange2 & 7v7 any p>ty affiliat$ ) any individual or entity describ$ 9 clauses 7i7 ?r\gh 7iv74 7#ad7 ,sy/em safegu>ds ,a regi/]$ crypto asset 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$ures & automat$ sy/ems t-- 7i7 are reliable & secure2 & 7ii7 h adequate scalable capacity2 7,b7 e/abli% & ma9ta9 em]g5cy proc$ures1 backup facilities1 & a plan = disa/] recov]y t all[ =-- 7i7 ! timely recov]y & resumption ( op]ations2 & 7ii7 ! fulfillm5t ( ! responsibilities & obligations ( ! regi/]$ crypto asset ex*ange2 & 7,c7 p]iodically conduct te/s to v]ify t ! backup res\rces ( ! regi/]$ crypto asset ex*ange are suffici5t to ensure cont9u$-- 7i7 ord] process+ & trade mat*+2 7ii7 price report+2 7iii7 m>ket surveillance2 & 7iv7 ma9t5ance ( a compreh5sive & accurate audit trail4 7#ae7 ,dec5traliz$ crypto asset ex*anges 7,a7 ,9 g5]al ,prior to conduct+ trad+ activity 7includ+ r\t+ ord]s & direct$ trad+7 ?r\gh a dec5traliz$ crypto asset ex*ange1 or o!rwise provid+ cu/om] access to a dec5traliz$ crypto asset ex*ange1 a crypto asset ex*ange %all implem5t risk managem5t /&>ds ) respect to its trad+ activity us+ t dec5traliz$ crypto asset ex*ange4 7,b7 ,requirem5ts ,a crypto asset ex*ange %all-- 7i7 implem5t an effective risk-bas$ proc$ure = det]m9+ :e!r to execute1 reject1 or susp5d an incom+ or outgo+ transaction relat+ to a dec5traliz$ crypto asset ex*ange1 includ+ a det]m9ation bas$ on suspect$ money laund]+1 sanctions evasion1 fraud1 or m>ket manipulation2 7ii7 conduct an effective risk-bas$ analysis ( ! code ( ! dec5traliz$ crypto asset ex*ange to det]m9e :e!r crypto asset transactions c occur on ! ex*ange securely1 consi/5tly1 & immutably2 7iii7 v]ify t ! code = ! dec5traliz$ crypto asset ex*ange is widely available to ! public2 7iv7 v]ify t !re are appropriate develop] docum5ts relat+ to ! dec5traliz$ crypto asset ex*ange t appropriately disclose all risks ( ! s(tw>e2 7v7 conduct an effective risk analysis ) respect to ! dec5traliz$ crypto asset ex*ange1 includ+-- 7,i7 money laund]+ & sanctions evasion2 7,,ii7 settlem5t2 7,,iii7 fraud & m>ket manipulation2 & 7,,iv7 op]ational & cyb]security risk1 includ+-- 7aa7 ! use ( multi-signature wallets2 7bb7 integration ) ?ird-p>ty s(tw>e or v5dors2 7cc7 any mat]ial ef=ts to alt] ! functionality ( ! protocol2 & 7dd7 all o!r mat]ial risks2 7vi7 implem5t robu/ policies & proc$ures to mitigate ! risks id5tifi$ "u clause 7v72 7vii7 disclose ! risks id5tifi$ "u clause 7v7 us+ pla9 language to cu/om]s2 7viii7 ma9ta9 robu/ capability to detect m>ket manipulation1 fraud1 money laund]+1 & sanctions evasion occurr+ on ! dec5traliz$ crypto asset ex*ange1 includ+ ?r\gh ! use ( alt]native tools t w prop]ly t>get ^? risks1 includ+ ?r\gh di/ribut$ l$g] intellig5ce companies2 7ix7 ensure t ! m]*ant is n trad+ ) a dec5traliz$ crypto asset ex*ange on a pr9cipal basis1 b solely on an ag5cy basis at ! reque/ ( a cu/om]2 & 7x7 consi/5t ) ?is subsection1 implem5t o!r /&>ds :i* may be requir$ by ! ,commission by rule4 7e7 ,risk managem5t /&>ds = self-,ho/$ wallets 7#a7 ,9 g5]al ,! ,commission %all adopt risk managem5t /&>ds relat+ to money laund]+1 cu/om] id5tification1 & sanctions = self-ho/$ wallets t conduct transactions ) a regi/]$ crypto asset ex*ange1 :i* %all be consi/5t ) /&>ds "u section #d;d7k74 7#b7 ,def9ition ( self-ho/$ wallet ,9 ?is subsection1 ! t]m self-ho/$ wallet means a digital int]face us$ to secure & transf] crypto assets1 9 :i* ! own] ( ! assets reta9s indep5d5t control 9 a mann] t is secur$ by t int]face4 7f7 ,appo9tm5t ( tru/ee 7#a7 ,9 g5]al ,if a proce$+ "u section #e;e results 9 ! susp5sion or revocation ( ! regi/ration ( a crypto asset ex*ange1 or if a crypto asset ex*ange )draws f regi/ration1 ! ,commission1 aft] provid+ notice to ! crypto asset ex*ange1 may apply to ! di/rict c\rt ( ! ,unit$ ,/ates = ! judicial di/rict 9 :i* ! crypto asset ex*ange is locat$ = ! appo9tm5t ( a tru/ee4 7#b7 ,assumption ( jurisdiction ,if ! ,commission applies to a c\rt = appo9tm5t ( a tru/ee "u p>agraph 7#a7-- 7,a7 ! c\rt may take exclusive jurisdiction ov]-- 7i7 ! crypto asset ex*ange2 & 7ii7 ! records & assets ( ! crypto asset ex*ange1 :]ev] ^? records & assets are 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 ( ! crypto asset ex*ange 9 an ord]ly mann] = ! protection ( cu/om]s1 subject to su* t]ms & conditions z ! c\rt may prescribe4 7g7 ,cu/odian ,a regi/]$ crypto asset ex*ange %all deposit ) an entity describ$ 9 section #d;d7i77#a77;,b7 ea* crypto asset t is-- 7#a7 ! prop]ty ( a cu/om] ( ! regi/]$ crypto asset ex*ange2 7#b7 requir$ to be held by ! regi/]$ crypto asset ex*ange "u subsection 7c77#c7 or 7d77#ab72 or 7#c7 o!rwise requir$ by ! ,commission to be s held to reasonably protect cu/om]s or promote ! public int]e/4 7h7 ,*ange 9 control 7#a7 ,9 g5]al ,no p]son1 act+ directly or indirectly1 or ?r\gh or 9 conc]t ) #a or m p]sons1 %all acquire control ( a crypto asset ex*ange unless-- 7,a7 ! p]son has provid$ to ! ,commission prior notice ( ! propos$ acquisition2 & 7,b7 ! ,commission has n disapprov$ ! acquisition dur+ ! #fj-;day p]iod beg9n+ on ! date ( ! notice "u subp>agraph 7,a74 7#b7 ,vot+ securities ,no p]son :o has be5 approv$ to acquire control ( a crypto asset ex*ange & :o has ma9ta9$ t control %all acquire1 directly or indirectly1 or ?r\gh or 9 conc]t ) #a or m p]sons1 vot+ securities ( ! ex*ange if ! own]%ip1 control1 or p[] to vote ( t p]son w increase f less ?an #be p]c5t to #be p]c5t or m ( any class ( vot+ securities ( ! ex*ange unless-- 7,a7 ! p]son has provid$ to ! ,commission prior notice ( ! propos$ acquisition2 & 7,b7 ! ,commission has n disapprov$ ! acquisition dur+ ! #fj-;day p]iod beg9n+ on ! date ( ! notice "u subp>agraph 7,a74 7#c7 ,in=mation ,! ,commission may1 by rule1 specify in=mation relat+ to a propos$ acquisition describ$ 9 p>agraph 7#a7 or 7#b71 :i* %all be submitt$ ) an application4 7#d7 ,public notice ,z specifi$ by ! ,commission1 public notice ( a propos$ acquisition describ$ 9 p>agraph 7#a7 or 7#b7 %all be giv5 at ! "t an application is fil$4 7#e7 ,approval ,! ,commission %all approve a propos$ acquisition describ$ 9 p>agraph 7#a7 or 7#b7 unless1 by ord]1 x f9ds ei!r ( ! foll[+3 7,a7 ,! propos$ acquisition w\ld pose an unacceptable risk to cu/om]s or to ! op]ation ( ! ex*ange4 7,b7 ,! propos$ acquisition w\ld o!rwise violate ,f$]al law4 7#f7 ,def9ition ( control ,9 ?is subsection1 ! t]m control means ! p[]1 directly or indirectly1 to direct ! managem5t or policies ( a crypto asset ex*ange1 to vote #be p]c5t or m ( any class ( vot+ securities ( ! ex*ange or control 9 any mann] ! election ( a majority ( ! directors ( ! ex*ange1 z may be provid$ by rule4 7i7 ,jurisdiction ,except z o!rwise provid$ by ,f$]al law1 ! ,commission %all h exclusive jurisdiction ov] ! regulation1 sup]vision1 & all o!r activities ( a regi/]$ crypto asset ex*ange4 7j7 ,implem5tation ,! ,commission %all prescribe rules to implem5t ?is section4 4 7b7 ,c]ta9 crypto asset ex*ange functions n suffici5t ,to trigg] requirem5t ,to regi/] z futures commission m]*ant ,section #d;f7c7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #f;f7c77 is am5d$ by add+ at ! end ! foll[+3 7#ab7 ,cl>ification ( scope ( regi/ration requirem5t ,a regi/]$ crypto asset ex*ange %all n be requir$ to regi/] z a futures commission m]*ant = any activity = :i* ! regi/]$ crypto asset ex*ange is regulat$ "u section #e;i4 4 #dje4 ,sup]vision ( affiliates 7a7 ,9 g5]al ,! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq47 7z am5d$ by section #djd7;a77 is am5d$ by ins]t+ aft] section #e;i ! foll[+3 #e;j4 ,commission sup]vision ( crypto asset affiliates 7a7 ,def9ition ( cov]$ affiliate ,9 ?is section1 cov]$ affiliate means1 bas$ on ! totality ( ! facts & circum/ances z det]m9$ by ! ,commission1 a p]son ) a sub/antial legal or f9ancial relation%ip to an entity regi/]$ "u ?is ,act t is prim>ily engag$ 9 crypto asset activities1 bas$ on ! foll[+ factors3 7#a7 ,! degree to :i* conflicts ( int]e/ may be pres5t1 or ! f9ancial int]e/s ( ! entity may come into conflict ) ! fiduci>y duty ( ! entity to cu/om]s or ! prud5t op]ation ( ! entity4 7#b7 ,! legal relation%ip betwe5 ! entity & ! affiliate4 7#c7 ,! ov]all f9anc+ requirem5ts ( ! entity & ! affiliate1 & ! degree1 if any1 to :i* ! entity & ! affiliate are f9ancially dep5d5t on ea* o!r4 7#d7 ,! degree1 if any1 to :i* ! entity or its cu/om]s rely on ! affiliate = op]ational support or s]vices 9 connection ) ! bus9ess ( ! entity4 7#e7 ,! level ( m>ket1 cr$it1 or o!r risk pres5t 9 ! activities ( ! affiliate4 7#f7 ,! ext5t to :i* ! affiliate has ! au?ority or ! ability to cause a )drawal ( capital f ! entity4 7#g7 ,any o!r factor det]m9$ by ! ,commission by rule to be mat]ial4 7b7 ,commission designation ( cov]$ affiliates 7#a7 ,9 g5]al ,9 consultation ) an entity regi/]$ "u ?is ,act1 n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is section1 & n less frequ5tly ?an #ij days be=e ! exam9ation ( an entity by ! ,commission or a cu/om] protection & m>ket integrity au?ority regi/]$ "u section #ihji ( title #ca1 ,unit$ ,/ates ,code1 ! ,commission %all designate ! cov]$ affiliates ( ! entity4 7#b7 ,requirem5t ,ea* cov]$ affiliate ( ! entity %all be requir$ to provide to ! ,commission1 by n lat] ?an ! date on :i* an exam9ation ( ! entity by ! ,commission or a cu/om] protection & m>ket integrity au?ority regi/]$ "u section #ihji ( title #ca1 ,unit$ ,/ates ,code1 beg9s1 ! foll[+3 7,a7 ,a description ( all activities ! affiliate is engag$ ) relat+ to ! entity4 7,b7 ,! mo/ rec5t audit$ f9ancial /atem5ts ( ! affiliate4 7,c7 ,all legal agreem5ts ent]$ into betwe5 ! affiliate & ! entity4 7,d7 ,a description ( all transactions betwe5 ! affiliate & ! entity s9ce ! la/ exam9ation4 7,e7 ,any o!r in=mation t may be det]m9$ to be mat]ial by ! ,commission4 7c7 ,rem$ial measures ,if ! ,commission f9ds t x is 9 ! public int]e/ & has good cause to believe x is necess>y to protect ! cu/om]s ( an entity regi/]$ "u ?is ,act t is prim>ily engag$ 9 crypto asset activities1 ! ,commission may1 by ord]-- 7#a7 conduct an exam9ation ( a cov]$ affiliate2 7#b7 require a p]son ) control ( an entity to dive/ or sev] _! relation%ip ) ! entity2 or 7#c7 limit cov]$ affiliates f provid+ s]vices to an entity or ent]+ into legal relation%ips or specifi$ transactions ) an entity4 7d7 ,rules ,n lat] ?an #ah mon?s aft] ! date ( enactm5t ( ?is section1 ! ,commission %all issue rules to implem5t ?is section4 4 #djf4 ,violations ,section #i ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #ac7 is am5d$-- 7#a7 9 subsection 7a77#b71 by /rik+ subsection #d;c & ins]t+ section #d;c2 & 7#b7 9 subsection 7e7-- 7,a7 9 p>agraph 7#a71 by ins]t+ contracts = ! sale ( crypto assets1 aft] options !reon12 & 7,b7 9 p>agraph 7#b71 by ins]t+ or contracts = ! sale ( crypto assets aft] options !reon4 #djg4 ,m>ket reports ,section #af7;a7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #bj7;a77 is am5d$-- 7#a7 9 ! fir/ s5t5ce1 by /rik+ :i* are ! subject ( futures contracts1 & ins]t+ "u ! jurisdiction ( ! ,commission12 & 7#b7 9 ! second s5t5ce1 by /rik+ futures m>kets4 & ins]t+ m>kets "u ! jurisdiction ( ! ,commission44 #djh4 ,bankruptcy treatm5t ( crypto assets 7a7 ,9 g5]al ,section #bj7;a7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #bd7;a77 is am5d$ 9 p>agraphs 7#a7 & 7#b7 by ins]t+ crypto assets1 paym5t /ableco9s1 aft] securities1 ea* place x appe>s4 7b7 ,commodity brok] def9ition ,section #aja7f7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by ins]t+ regi/]$ crypto asset ex*ange1 z def9$ 9 section #a;a ( ! ,commodity ,ex*ange ,act1 be=e =eign4 7c7 ,commodities contracts ,section #eef ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by ins]t+ a regi/]$ crypto asset ex*ange1 z def9$ 9 section #a;a ( ! ,commodity ,ex*ange ,act1 be=e a contract4 7d7 ,contractual rights ,section #efa ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by ins]t+ 1 a regi/]$ crypto asset ex*ange1 z def9$ 9 section #a;a ( ! ,commodity ,ex*ange ,act1 aft] designat$ "u ! ,commodity ,ex*ange ,act ea* place x appe>s4 7e7 ,def9itions ,section #gfa ( title #aa1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 p>agraph 7#d7-- 7,a7 9 subp>agraph 7,a71 by ins]t+ crypto asset1 paym5t /ableco91 or a be=e commodity2 7,b7 9 subp>agraph 7,i71 by /rik+ or at ! end2 7,c7 9 subp>agraph 7,j71 by add+ or at ! end2 & 7,d7 by add+ at ! end ! foll[+3 7,k7 a contract = ! sale ( a crypto asset or paym5t /ableco9 by a regi/]$ crypto asset ex*ange2 2 & 7#b7 9 p>agraph 7#aj7-- 7,a7 9 ! matt] prec$+ subp>agraph 7,a7-- 7i7 by ins]t+ a crypto asset1 paym5t /ableco91 aft] a security12 & 7ii7 by ins]t+ crypto asset1 paym5t /ableco91 aft] ca%1 security12 7,b7 9 subp>agraph 7,a7-- 7i7 9 clause 7vi71 by ins]t+ a crypto asset1 paym5t /ableco9 aft] a security12 & 7ii7 9 clause 7vii7-- 7,i7 by ins]t+ paym5t /ableco9 or a crypto asset be=e held z prop]ty2 7,,ii7 by ins]t+ paym5t /ableco9 or crypto asset aft] su* security2 & 7,,iii7 by ins]t+ paym5t /ableco9 or crypto asset aft] bas$ on a security2 & 7,c7 9 subp>agraph 7,b7-- 7i7 by /rik+ n includ+ prop]ty & ins]t+ 8n includ+-- 7i7 prop]ty 2 7ii7 9 clause 7i71 z s designat$1 by add+ & at ! end2 & 7iii7 by add+ at ! end ! foll[+3 7ii7 money1 assets1 or prop]ty ) respect to :i* any requirem5t "u subsection 7i7 ( section #d;d ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #f;d7 is waiv$ pursuant to p>agraph 7#c7 ( t subsection1 or any requirem5t "u subp>agraph 7,b7 ( p>agraph 7#d7 ( section #e;i7d7 ( t ,act is waiv$ pursuant to subp>agraph 7,e7 ( t p>agraph2 4 7f7 ,voidable transf]s ,section #gfd7;b77#a7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by ins]t+ 1 crypto assets be=e 1 or o!r prop]ty4 7g7 ,treatm5t ( cu/om] prop]ty ,section #gff ( title #aa1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 subsection 7b77#a71 by /rik+ physical commodity und]ly+ & ins]t+ commodity und]ly+2 7#b7 9 subsection 7c71 by ins]t+ crypto asset1 paym5t /ableco9 be=e or commodity contract ea* place ! t]m appe>s2 7#c7 9 subsection 7d71 by ins]t+ crypto asset1 paym5t /ableco9 be=e or commodity contract ea* place ! t]m appe>s2 7#d7 9 subsection 7f7-- 7,a7 9 /rik+ & o!r prop]ty & ins]t+ crypto assets1 paym5t /ableco9s & o!r prop]ty2 & 7,b7 by /rik+ or prop]ty & ins]t+ 1 crypto assets1 paym5t /ableco9s or prop]ty2 7#e7 9 subsection 7g71 by /rik+ security or prop]ty & ins]t+ security1 crypto asset1 paym5t /ableco9 or prop]ty2 & 7#f7 9 subsection 7h77#b71 by ins]t+ crypto assets1 paym5t /ableco9s1 aft] cu/om] securities14 #dji4 ,id5tifi$ bank+ products ,section #bjf7;a7 ( ! ,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4 #gh;c note7 is am5d$-- 7#a7 9 p>agraph 7#e77;,b77ii71 by /rik+ or at ! end2 7#b7 9 p>agraph 7#f71 by /rik+ ! p]iod at ! end & ins]t+ 2 or2 & 7#c7 by add+ at ! end ! foll[+3 7#g7 a paym5t /ableco9 issu$ by a depository in/itution "u section #gbb;,a1 except z provid$ "u section #b7;c77#b77;,f7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #b7;c77#b77;,f774 4 #daj4 ,f9ancial in/itutions def9ition ,section #ecab7;c77#a7 ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 7,b7 ,a regi/]$ crypto asset ex*ange1 z def9$ 9 section #a;a ( ! ,commodity ,ex*ange ,act4 4 #daa4 ,(fsett+ ! co/s ( crypto asset regulation ,! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq47 is am5d$ by add+ at ! end ! foll[+3 #bd4 ,(fsett+ ! co/s ( crypto asset regulation 7a7 ,recov]y ( c]ta9 co/s ( annual appropriation 7#a7 ,9 g5]al ,effective beg9n+ ,octob] #a1 #bjbd1 ! ,commission may1 by rule1 collect fees-- 7,a7 to fund exp5ses relat+ to regulation ( crypto asset ca% & spot m>kets2 & 7,b7 t are design$ to recov] ! co/s to ! ,f$]al ,gov]nm5t ( ! annual appropriation to ! ,commission by ,congress4 7#b7 ,regi/]$ entities ,fees "u p>agraph 7#a7 %all only be impos$-- 7,a7 on regi/]$ entities engag$ 9 ca% or spot crypto asset activities2 & 7,b7 9 relation to ! regulation ( ^? activities "u ?is ,act4 7#c7 ,fee rates ,fees "u p>agraph 7#a7 %all-- 7,a7 be /rictly relat$ to ! co/ to ! ,commission ( ! regulation ( crypto asset ca% & spot m>kets2 7,b7 be r$uc$ = newly regi/]$ entities ) less ?an #ajj1jjj1jjj 9 daily trad+ volume2 & 7,c7 7i7 m9imize negative impacts on m>ket liquidity2 & 7ii7 ma9ta9 ! effici5cy1 competitiv5ess1 & f9ancial integrity ( crypto asset m>kets4 7#d7 ,collection ( fees ,! ,commission %all collect fees "u ?is subsection 9 su* mann] & )9 su* "t z may be specifi$ by ! ,commission by rule4 7b7 ,fee rate ord]s 7#a7 ,9 g5]al ,n lat] ?an #fj days aft] ! date on :i* a law provid+ a regul> appropriation to ! ,commission = a fiscal ye> is enact$1 ! ,commission %all adopt an ord] sett+ rates = fees to be collect$ "u subsection 7a7 = t fiscal ye>4 7#b7 ,publication ,! ,commission %all publi% 9 ! ,f$]al ,regi/] ! ord] adopt$ "u p>agraph 7#a71 includ+-- 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>-- 7,a7 %all be deposit$ & cr$it$ z (fsett+ collections to ! acc\nt provid+ appropriations to ! ,commission2 & 7,b7 %all 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 fees collect$ "u subsection 7a7 %all be deposit$ & cr$it$ z g5]al rev5ue ( ! ,treasury4 7d7 ,lapse ( appropriations ,if a regul> appropriation to ! ,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>4 7e7 ,limitations 7#a7 ,lev]ag$1 m>g9$1 or f9anc$ transactions ,no?+ 9 ?is section au?orizes ! imposition ( fees on a regi/]$ entity relat+ to lev]ag$1 m>g9$1 or f9anc$ transactions "u ?is ,act1 includ+ ^? activities relat+ to crypto assets4 7#b7 ,o!r appropriations ,not)/&+ any o!r provision ( law1 ! ,commission may use appropriations o!rwise made available by law to fund exp5ses relat+ to ! regulation ( crypto asset ca% & spot m>kets4 7f7 ,ceil+ on ,fees ,unless o!rwise provid$ by law1 fees collect$ "u ?is section %all n exce$ #cj1jjj1jjj4 7g7 ,au?orization requir$ ,! au?ority "u ?is section to impose & collect fees %all only be 9 effect dur+ a p]iod t a legislative au?orization ( ! ,commission is 9 effect1 z o!rwise provid$ by law4 4 ,v ,responsible securities regulation #eja4 ,securities (f]+s involv+ c]ta9 intangible 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 ,securities (f]+s involv+ c]ta9 intangible assets 7a7 ,def9itions ,9 ?is section3 7#a7 ,ancill>y asset 7,a7 ,9 g5]al ,! t]m ancill>y asset means an intangible1 fungible asset t is (f]$1 sold1 or o!rwise provid$ to a p]son 9 connection ) ! pur*ase & sale ( a security ?r\gh an arrangem5t or s*eme t con/itutes an inve/m5t contract1 z t t]m is us$ 9 section #b7;a77#a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a77#a774 7,b7 ,exclusion ,! t]m ancill>y asset does n include an asset t provides ! hold] ( ! asset ) any ( ! foll[+ rights 9 a bus9ess entity3 7i7 ,a debt or equity int]e/ 9 t entity4 7ii7 ,liquidation rights ) respect to t entity4 7iii7 ,an entitlem5t to an int]e/ or divid5d paym5t f t entity4 7iv7 ,any o!r f9ancial int]e/ 9 t entity4 7#b7 ,bus9ess entity ,! t]m bus9ess entity means-- 7,a7 a corporation1 limit$ liability company1 or o!r entity t is creat$ by fil+ a docum5t ) ! ,secret>y ( ,/ate ( a ,/ate 7or a simil> (fice72 or 7,b7 a =eign entity t is eligible = regi/ration1 or t is regi/]$ to d bus9ess1 "u ! laws ( a ,/ate or ,indian ,tribe4 7#c7 ,=eign private issu] ,! t]m =eign private issu] means a =eign issu]1 o!r ?an a =eign gov]nm5t1 except t ! t]m does n include a =eign issu] t1 z ( ! la/ bus9ess day ( ! mo/ rec5tly complet$ fiscal qu>t] ( ! issu]1 satisfies ! foll[+ conditions3 7,a7 ,m ?an #ej p]c5t ( ! out/&+ vot+ securities ( ! issu] are directly or indirectly own$ by resid5ts ( ! ,unit$ ,/ates4 7,b7 ,any ( ! foll[+3 7i7 ,! majority ( ! executive (fic]s or directors ( ! issu] are citiz5s or resid5ts ( ! ,unit$ ,/ates4 7ii7 ,m ?an #ej p]c5t ( ! assets ( ! issu] are locat$ 9 ! ,unit$ ,/ates4 7iii7 ,! bus9ess ( ! issu] is pr9cipally adm9i/]$ 9 ! ,unit$ ,/ates4 7b7 ,disclosure requirem5ts 7#a7 ,initial compliance ) specifi$ p]iodic disclosure requirem5ts ,subject to p>agraphs 7#d7 & 7#e71 an issu] engag$ 9 bus9ess 9 or affect+ int]/ate comm]ce1 or t is organiz$ outside ( ! ,unit$ ,/ates & is n a =eign private issu]1 t (f]s1 sells1 or o!rwise provides a security ?r\gh an arrangem5t or s*eme t con/itutes an inve/m5t contract1 z t t]m is us$ 9 section #b7;a77#a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a77#a771 & t provides or proposes to provide any hold] ( ! security ) an ancill>y asset1 %all be subject to ! p]iodic disclosure requirem5ts "u subsection 7c7 = ! #a-ye> p]iod beg9n+ on ! date t is #ahj days aft] ! fir/ date on :i* ! security is (f]$1 sold1 or o!rwise provid$ by ! issu]1 if-- 7,a7 ! av]age daily aggregate value ( all ancill>y assets (f]$1 sold1 or o!rwise provid$ by ! issu] 9 relation to ! (f]1 sale1 or provision ( ! security 9 all spot m>kets op5 to ! public 9 ! ,unit$ ,/ates 7bas$ on ! k ( ! issu] aft] due inquiry7 is great] ?an #e1jjj1jjj = ! #ahj-;day p]iod imm$iately succe$+ ! date ( t fir/ (f]1 sale1 or provision2 & 7,b7 dur+ ! #ahj-;day p]iod describ$ 9 subp>agraph 7,a71 ! issu]1 or any p]son own+ n less ?an #aj p]c5t ( any class ( equity securities ( ! issu]1 engag$ 9 entrepr5eurial or manag]ial ef=ts t prim>ily det]m9$ ! value ( ! ancill>y asset4 7#b7 ,ongo+ compliance ) specifi$ p]iodic disclosure requirem5ts ,subject to p>agraphs 7#d7 & 7#e71 an issu] t is engag$ 9 bus9ess 9 or affect+ int]/ate comm]ce1 or t is organiz$ outside ( ! ,unit$ ,/ates & is n a =eign private issu]1 t (f]s1 sells1 or o!rwise provides a security ?r\gh an arrangem5t or s*eme t con/itutes an inve/m5t contract1 z t t]m is us$ 9 section #b7;a77#a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a77#a771 & t provides ! hold] ( ! security ) an ancill>y asset 9 connection ) ! acquisition ( ! security1 %all be subject to ! p]iodic disclosure requirem5ts "u subsection 7c7 = a giv5 fiscal ye> ( t issu]1 if1 9 ! imm$iately prec$+ fiscal ye> ( ! issu] 7or any portion !re(7-- 7,a7 ! av]age daily aggregate value ( all trad+ 9 ! ancill>y asset 9 all spot m>kets op5 to ! public 9 ! ,unit$ ,/ates 0 great] ?an #e1jjj1jjj1 bas$ on ! k ( ! issu] aft] due inquiry2 & 7,b7 ! issu]1 or any p]son own+ n less ?an #aj p]c5t ( any class ( equity securities ( ! issu]1 engag$ 9 entrepr5eurial or manag]ial ef=ts t prim>ily det]m9$ ! value ( ! ancill>y asset4 7#c7 ,transition rule ,subject to p>agraphs 7#d7 & 7#e71 an issu] t is engag$ 9 bus9ess 9 or affect+ int]/ate comm]ce1 or t is organiz$ outside ( ! ,unit$ ,/ates & is n a =eign private issu]1 t (f]s1 sells1 or o!rwise provides a security ?r\gh an arrangem5t or s*eme t con/itutes an inve/m5t contract1 z t t]m is us$ 9 section #b7;a77#a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a77#a771 & t provides ! hold] ( ! security ) an ancill>y asset be=e ,janu>y #a1 #bjbe1 9 connection ) ! acquisition ( ! security %all be subject to ! p]iodic disclosure requirem5ts "u subsection 7c7 beg9n+ 9 ! fir/ fiscal ye> ( ! issu] t beg9s on or aft] t date1 if1 9 ! imm$iately prec$+ fiscal ye> ( ! issu]-- 7,a7 ! av]age daily aggregate value ( trad+ 9 ! ancill>y asset 9 all spot m>kets op5 to ! public = :i* trad+ volume is g5]ally available 0 great] ?an #e1jjj1jjj1 bas$ on ! k ( ! issu] aft] due inquiry2 & 7,b7 ! issu]1 or any p]son own+ n less ?an #aj p]c5t ( any class ( equity securities ( ! issu]1 engag$ 9 entrepr5eurial or manag]ial ef=ts t prim>ily det]m9$ ! value ( ! ancill>y asset4 7#d7 ,treatm5t ( ancill>y assets 7,a7 ,9 g5]al ,not)/&+ any o!r provision ( law1 if an issu] issues a security ?r\gh an arrangem5t or s*eme t con/itutes an inve/m5t contract1 z t t]m is us$ 9 section #b7;a77#a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a77#a771 is subject to p>agraph 7#a71 7#b71 or 7#c71 & has compli$ ) ! p]iodic disclosure requirem5ts "u subsection 7c71 to ! ext5t applicable1 an ancill>y asset own$ by ! issu]1 or any p]son affiliat$ ) ! issu]1 %all be presum$-- 7i7 to be a commodity1 consi/5t ) section #b7;c77#b77;,f7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #b7;c77#b77;,f772 & 7ii7 n to be a security "u-- 7,i7 section #c7;a72 7,,ii7 su* section #b7;a77#a72 7,,iii7 section #b7;a7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#b7;a772 7,,iv7 section #bjb7;a7 ( ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#b7;a772 or 7,v7 any applicable provision ( ,/ate law4 7,b7 ,o!r p]sons ,a p]son :o is n an issu]1 an entity controll$ by an issu] 7includ+ a p]son t acquires an ancill>y asset f su* an issu] = ! purpose ( resale or di/ribution ( ! ancill>y asset71 or a p]son act+ at ! direction or on ! behalf ( an issu] %all be n requir$ to treat an ancill>y asset provid$ by1 or on behalf (1 an issu] z a security "u ?is ,act or any provision ( law describ$ 9 subp>agraph 7,a77ii74 7,c7 ,exception 7i7 ,9 g5]al ,subp>agraph 7,a7 %all n apply to an ancill>y asset if ! ,unit$ ,/ates ,c\rt ( ,appeals = ! ,di/rict ( ,columbia ,circuit1 aft] an appropriate proce$+1 issues an ord] f9d+ by cle> & conv9c+ evid5ce t ! ancill>y asset meets n less ?an #a ( ! bases = exclusion "u subsection 7a77#a77;,b74 7ii7 ,rules ( con/ruction ,no?+ 9 ?is subp>agraph %all be con/ru$ to preclude ! ,commission f ent]+ into a settlem5t agreem5t relat+ to violations or alleg$ violations ( ?is section4 ,compliance "u ?is section %all n be us$ 9 any adm9i/rative or judicial proce$+ z evid5ce t an ancill>y asset is a security4 7#e7 ,calculation ,= ! purposes ( p>agraphs 7#a71 7#b71 & 7#c71 ! calculation ( daily aggregate value %all be bas$ on data disclos$ by spot m>kets or o!rwise available to ! public = inspection4 7c7 ,specifi$ p]iodic disclosure requirem5ts ,if an issu] is subject to p>agraph 7#a71 7#b71 or 7#c7 ( subsection 7b71 ! issu] %all file1 or cause ! relevant affiliate to file1 ) ! ,commission1 on a semi-annual basis1 in=mation t ! ,commission may1 by rule1 require relat+ to ! issu] & any relevant ancill>y asset1 z necess>y or appropriate 9 ! public int]e/ or = ! protection ( inve/ors1 :i* %all be exclusively compris$ ( ! foll[+3 7#a7 ,basic corporate in=mation reg>d+ ! issu]1 includ+ ! foll[+3 7,a7 ,! exp]i5ce ( ! issu] 9 develop+ assets simil> to ! ancill>y asset4 7,b7 ,if ! issu] has previ\sly provid$ ancill>y assets to pur*as]s ( securities1 in=mation on ! subsequ5t hi/ory ( ^? previ\sly provid$ ancill>y assets1 includ+ price hi/ory1 if ! in=mation is publicly available4 7,c7 ,! activities t ! issu] has tak5 9 ! relevant disclosure p]iod1 & is project+ to take 9 ! #a-ye> p]iod foll[+ ! submission ( ! disclosure1 ) respect to promot+ ! use1 value1 or resale ( ! ancill>y asset 7includ+ any activity to facilitate ! creation or ma9t5ance ( a trad+ m>ket = ! ancill>y asset & any network or sy/em t utilizes ! ancill>y asset74 7,d7 ,! anticipat$ co/ ( ! activities ( ! issu] 9 subp>agraph 7,c7 & :e!r ! issu] has un5cumb]$1 liquid funds equal to t am\nt4 7,e7 ,to ! ext5t ! ancill>y asset involves ! use ( a p>ticul> te*nology1 ! exp]i5ce ( ! issu] ) ! use ( t te*nology4 7,f7 ,! backgr\nds ( ! bo>d ( directors 7or equival5t body71 s5ior managem5t1 & key employees ( ! issu]1 ! exp]i5ce or functions ( :om are mat]ial to ! value ( ! ancill>y asset1 z well z any p]sonnel *anges relat+ to ! issu] dur+ ! p]iod cov]$ by ! disclosure4 7,g7 ,a description ( ! assets & liabilities ( ! issu]1 to ! ext5t mat]ial to ! value ( ! ancill>y asset4 7,h7 ,a description ( any legal proce$+s 9 :i* ! issu] is engag$ 7includ+ inquiries by gov]nm5tal ag5cies into ! activities ( ! issu]71 to ! ext5t mat]ial to ! value ( ! ancill>y asset4 7,i7 ,risk factors relat+ to ! impact ( ! issu] on1 or unique k relat+ to1 ! value ( ! ancill>y asset4 7,j7 ,in=mation relat+ to own]%ip ( ! ancill>y asset by-- 7i7 p]sons own+ n less ?an #aj p]c5t ( any class ( equity security ( ! issu]2 & 7ii7 ! managem5t ( ! issu]4 7,k7 ,in=mation relat+ to transactions involv+ ! ancill>y asset by ! issu] ) relat$ p]sons1 promot]s1 & control p]sons4 7,l7 ,rec5t sales or simil> dispositions ( ancill>y assets by ! issu] & affiliates ( ! issu]4 7,m7 ,pur*ases or simil> dispositions ( ancill>y assets by ! issu] & affiliates ( ! issu]4 7,n7 ,a go+ conc]n /atem5t f ! *ief f9ancial (fic] ( ! issu] or equival5t (ficial1 sign$ "u p5alty ( p]jury1 /at+ :e!r ! issu] ma9ta9s ! f9ancial res\rces to cont9ue bus9ess z a go+ conc]n = ! #a-ye> p]iod foll[+ ! submission ( ! disclosure1 abs5t a mat]ial *ange 9 circum/ances4 7#b7 ,in=mation relat+ to ! ancill>y asset1 includ+ ! foll[+3 7,a7 ,a g5]al description ( ! ancill>y asset1 includ+ ! /&>d unit ( measure ) respect to ! ancill>y asset1 ! int5d$ or kn[n functionality & uses ( ! ancill>y asset1 ! m>ket = ! ancill>y asset1 o!r assets or s]vices t may compete ) ! ancill>y asset1 & ! total supply ( ! ancill>y asset or ! mann] & rate ( ! ongo+ production or creation ( ! ancill>y asset4 7,b7 ,if ancill>y assets h be5 (f]$1 sold1 or o!rwise provid$ by ! issu] to inve/ors1 int]m$i>ies1 or resell]s1 a description ( ! am\nt ( assets (f]$1 sold1 or provid$1 ! t]ms ( ea* su* transaction1 & any contractual or o!r re/rictions on ! resale ( ! assets by int]m$i>ies4 7,c7 ,if ancill>y assets 7 di/ribut$ )\t *>ge1 a description ( ea* di/ribution1 includ+ ! id5tity ( any recipi5t t receiv$ m ?an #e p]c5t ( ! total am\nt ( ! ancill>y assets 9 any su* di/ribution4 7,d7 ,! am\nt ( ancill>y assets own$ by ! issu]4 7,e7 ,= ! #a-ye> p]iod foll[+ ! submission ( ! disclosure1 a description ( ! plans ( ! issu] to support 7or to cease support+7 ! use or developm5t ( ! ancill>y asset1 includ+ m>kets = ! ancill>y asset & ea* plat=m or sy/em t uses ! ancill>y asset4 7,f7 ,ea* ?ird p>ty n affiliat$ ) ! issu]1 ! activities ( :i* may h a mat]ial impact on ! value ( ! ancill>y asset4 7,g7 ,risk factors kn[n to ! issu] t may limit dem& =1 or int]e/ 91 ! ancill>y asset4 7,h7 ,! names & locations ( ! m>kets 9 :i* ! ancill>y asset is kn[n by ! issu] to be available = sale or pur*ase4 7,i7 ,to ! ext5t available to ! issu]1 ! av]age daily price = a con/ant unit ( value ( ! ancill>y asset dur+ ! relevant report+ p]iod1 z well z ! #ab-mon? high & l[ prices = ! ancill>y asset4 7,j7 ,if applicable1 in=mation relat+ to any ext]nal audit ( ! code & functionality ( ! ancill>y asset1 includ+ ! entity p]=m+ ! audit & ! exp]i5ce ( ! entity 9 conduct+ simil> audits4 7,k7 ,if applicable1 any valuation report or economic analysis commission$ by ! issu] reg>d+ ! ancill>y asset or ! project$ m>ket ( ! ancill>y asset4 7,l7 ,if ! ancill>y asset is intangible1 in=mation relat+ to cu/ody by ! own] ( ! ancill>y asset or a ?ird p>ty4 7,m7 ,in=mation on intellectual prop]ty rights claim$ or disput$ relat+ to ! ancill>y asset4 7,n7 ,a description ( ! te*nology und]ly+ ! issuance & trad+ ( ! ancill>y asset4 7,o7 ,any mat]ial tax consid]ations applicable to own+1 /or+1 us+1 or trad+ ! ancill>y asset4 7,p7 ,any mat]ial legal or regulatory consid]ations applicable to own+1 /or+1 us+1 or trad+ ! ancill>y asset1 includ+ any legal proce$+ t may impact ! value ( ! ancill>y asset4 7,q7 ,any o!r mat]ial factor or in=mation t may impact ! value ( ! ancill>y asset & ab\t :i* ! issu] is reasonably aw>e4 7d7 ,application to successor entities & c]ta9 affiliates 7#a7 ,9 g5]al ,if an issu] w\ld o!rwise be subject to specifi$ p]iodic disclosure requirem5ts "u subsection 7c7 & is no long] 9 op]ation1 any successor entity t directly or indirectly receiv$ n less ?an #ej p]c5t ( ! rema9+ proce$s rais$ by ! sale ( ! relat$ securities ( t issu] %all file1 or cause to be fil$1 ) ! ,commission ! in=mation requir$ "u t subsection4 7#b7 ,c]ta9 affiliates ,if an entity controll$ by an issu] is subject to specifi$ p]iodic disclosure requirem5ts "u subsection 7c7 & is engag$ 9 entrepr5eurial or manag]ial ef=ts t prim>ily det]m9e ! value ( an ancill>y asset1 ! entity may file ) ! ,commission ! in=mation requir$ "u t subsection4 7e7 ,volunt>y disclosure ,an issu] t is n subject to ! specifi$ p]iodic disclosure requirem5ts "u subsection 7c7 & t (f]s or sells a security ?r\gh an arrangem5t or s*eme t con/itutes an inve/m5t contract1 z t t]m is us$ 9 section #b7;a77#a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a77#a771 & t provides ! hold] ( t security ) an ancill>y asset 9 connection ) ! acquisition ( ! security may volunt>ily file ) ! ,commission ! in=mation requir$ "u t subsection if ! issu] believes t x is reasonably likely t ! issu] w become subject to ^? requirem5ts 9 ! future4 7f7 ,exemptions ,! ,commission may1 by ord]1 exempt an ancill>y asset f ! specifi$ p]iodic disclosure requirem5ts "u subsection 7c7 if ! ,commission det]m9es t ! public policy goals ( disclosure & consum] protection are n satisfi$ by requir+ disclosures relat+ to an ancill>y asset4 7g7 ,rule ( con/ruction ,if an issu] fails to comply ) a provision ( ?is section1 an ancill>y asset provid$ by ! issu] %all n be presum$ to be a security "u a provision ( law describ$ 9 subsection 7b77#d77;,a77ii71 solely because ( su* failure4 7h7 ,liability = false & mislead+ /atem5ts ,any /atem5t made 9 a disclosure1 application1 or o!r docum5t fil$ "u ?is section %all be subject to section #ah4 7i7 ,t]m9ation ( specifi$ p]iodic disclosure requirem5ts 7#a7 ,9 g5]al ,! obligation ( an issu] to file ! in=mation requir$ "u subsection 7c7 %all t]m9ate on ! date t is #ij days1 or su* %ort] p]iod z ! ,commission may det]m9e1 aft] ! date on :i* ! issu] files a c]tification describ$ 9 p>agraph 7#b74 7#b7 ,c]tification 7,a7 ,9 g5]al ,a c]tification describ$ 9 ?is p>agraph %all be support$ by reasonable evid5ce1 bas$ on ! k ( ! issu] fil+ ! c]tification1 aft] due inquiry1 t-- 7i7 ! av]age daily aggregate value ( all trad+ 9 ! applicable ancill>y asset 9 all spot m>kets op5 to ! public 9 ! ,unit$ ,/ates 9 ! #ab-mon? p]iod prec$+ ! date on :i* ! c]tification is fil$ 0 n great] ?an #e1jjj1jjj2 or 7ii7 dur+ ! #ab-mon? p]iod prec$+ ! date on :i* ! c]tification is fil$1 nei!r ! applicable issu]1 nor any entity controll$ by ! applicable issu]1 engag$ 9 entrepr5eurial or manag]ial ef=ts t prim>ily det]m9$ ! value ( ! ancill>y asset4 7,b7 ,d5ial 7i7 ,9 g5]al ,subject to subp>agraph 7,c77ii71 ! ,commission may1 by majority vote & aft] notice & opportunity = he>+1 d5y a c]tification fil$ "u p>agraph 7#a7 if ! ,commission f9ds t ! c]tification is n support$ by sub/antial evid5ce4 7ii7 ,effect ,! d5ial1 "u clause 7i71 ( a c]tification fil$ "u p>agraph 7#a7-- 7,i7 %all t]m9ate ! c]tification s fil$2 & 7,,ii7 %all n prev5t ! applicable issu] f fil+ ano!r c]tification "u p>agraph 7#a71 if ! re-fil$ c]tification is fil$ n e>li] ?an #ahj days aft] ! date on :i* ! orig9al c]tification is d5i$4 7,c7 ,p5d+ /atus 7i7 ,9 g5]al ,t]m9ation ( ! disclosure requirem5ts describ$ 9 p>agraph 7#a7 applicable to an issu] t has fil$ a c]tification "u t p>agraph %all be def]r$ p5d+ review by ! ,commission ( ! evid5ce support+ ! c]tification4 7ii7 ,effect ( delay ,if1 z ( ! date t is #ij days aft] receiv+ a c]tification fil$ "u p>agraph 7#a71 ! ,commission has n reque/$ additional evid5ce ) respect to ! c]tification f ! applicable issu]1 ! disclosure obligations t are ! subject ( ! c]tification %all t]m9ate4 7j7 ,rules ,! ,commission may adopt rules & guidance to implem5t ?is section1 consi/5t ) ! /atutory int5t ( ?is section4 4 #ejb4 ,guidance relat+ to satisfactory control location ,n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is ,act1 ! ,securities & ,ex*ange ,commission %all issue guidance relat+ to section #bdj4ae;c#c-c ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulation1 provid+ t ! requirem5t to designate a satisfactory control location = a crypto asset t is1 or may repres5t own]%ip (1 a security may be satisfi$ by protect+ ! crypto asset ?r\gh comm]cially reasonable cyb]security practices to ma9ta9 control ( suffici5t private key mat]ial to transf] control ( ! crypto asset to ano!r p]son1 or to cause ano!r p]son to obta9 control ( ! crypto asset1 includ+ by means ( a sm>t contract t g5]ates private key mat]ial )\t ! involvem5t ( a natural p]son4 ,,vi ,cu/om] protection & m>ket integrity au?ority #fja4 ,cu/om] protection & m>ket integrity au?ority 7a7 ,9 g5]al ,*apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #bjh1 is am5d$ by add+ at ! end ! foll[+3 #ihji4 ,cu/om] protection & m>ket integrity au?orities 7a7 ,def9itions ,9 ?is section3 7#a7 ,nonmemb] pr(essional ,! t]m nonmemb] pr(essional means any p]son t-- 7,a7 is a crypto asset int]m$i>y2 & 7,b7 is a n a memb] ( a cu/om] protection & m>ket integrity au?ority or affiliat$ organization4 7#b7 ,regi/ration in=mation ,! t]m regi/ration in=mation means ! in=mation report$ 9 connection ) ! lic5s+1 regi/ration1 or o!r au?orization ( crypto asset int]m$i>ies & _! associat$ p]sons1 includ+-- 7,a7 discipl9>y actions1 regulatory1 judicial1 & arbitration proce$+s1 & o!r in=mation requir$ by law or au?ority rule2 & 7,b7 ! s\rce & /atus ( ! in=mation describ$ 9 subp>agraph 7,a74 7b7 ,regi/ration2 application ,an association ( crypto asset int]m$i>ies may be regi/]$ z a cu/om] protection & m>ket integrity au?ority1 "u ! t]ms & conditions provid$ 9 ?is section1 & 9 accordance ) ! provisions ( ?is section & section #ihaj1 by jo9tly fil+ ) ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission an application = regi/ration1 9 su* =m z ! commissions may require1 conta9+ ! rules ( ! au?ority & su* o!r in=mation & docum5ts t may be prescrib$ z necess>y or appropriate 9 ! public int]e/ or = cu/om] protection4 7c7 ,det]m9ations by commissions requisite to regi/ration ,an association ( crypto asset int]m$i>ies may n be regi/]$ z a cu/om] protection & m>ket integrity au?ority "u subsection 7b7 unless a majority ( ! memb]s ( ea* ( ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission1 vot+ sep>ately1 det]m9e t ea* ( ! foll[+ is satisfi$3 7#a7 ,by reason ( ! numb] & ! scope ( ! transactions ( ! au?ority1 ! au?ority w be able to c>ry out ! purposes ( ?is section4 7#b7 ,! au?ority is s organiz$1 & has ! capacity1 to-- 7,a7 be able to c>ry out ! purposes ( ?is section & o!r applicable ,/ate & ,f$]al laws2 & 7,b7 subject to any rule or ord] ( ! appropriate commission1 en=ce compliance by memb]s ( ! au?ority 7& p]sons associat$ ) ^? memb]s7 ) ! provisions ( applicable law1 ! rules "u ^? provisions1 & ! rules ( ! au?ority4 7#c7 ,! rules ( ! au?ority provide t any crypto asset int]m$i>y may become a memb] ( ! au?ority & any p]son may become associat$ ) a memb] ( ! au?ority4 7#d7 ,! rules ( ! au?ority provide = ! foll[+ allocation ( a #ac-memb] bo>d ( directors3 7,a7 #c gov]nm5tal directors1 z foll[s3 7i7 ,! ,director ( ! ,(fice ( ,f9ancial ,innovation ( ! ,commodity ,futures ,trad+ ,commission1 or ! designee ( ! ,director4 7ii7 ,! ,director ( ! ,(fice ( ,f9ancial ,innovation ( ! ,securities & ,ex*ange ,commission1 or ! designee ( ! ,director4 7iii7 ,! ,director ( ! ,f9ancial ,crimes ,en=cem5t ,network1 or ! designee ( ! ,director4 7,b7 #d indep5d5t directors-- 7i7 :o are appo9t$ by ! ,presid5t1 ) specializations 9 f9ancial te*nology1 consum] protection1 & f9ancial m>kets1 except t ^? #d directors %all n be affiliat$1 ?r\gh a close relative or a f9ancial int]e/ ) any memb] ( ! au?ority2 & 7ii7 #a ( :om is designat$ by ! ,presid5t z *air ( ! au?ority4 7,c7 #f directors appo9t$ by ! memb]s ( ! prospective au?ority4 7#e7 ,! rules ( ! au?ority provide = ! equitable allocation ( reasonable dues1 fees1 & o!r *>ges among memb]s ( ! au?ority & o!r p]sons us+ any facility or sy/em t ! au?ority op]ates or controls4 7#f7 ,! rules ( ! au?ority-- 7,a7 are design$ to-- 7i7 prev5t fraudul5t & manipulative acts & practices 9 ord] to promote j & equitable pr9ciples ( trade2 7ii7 fo/] coop]ation & coord9ation ) p]sons engag$ 9 regulat+1 cle>+1 settl+1 process+ in=mation ) respect to1 & facilitat+ transactions 9 crypto assets2 7iii7 remove imp$im5ts to1 & p]fect ! me*anism (1 a free & op5 m>ket2 & 7iv7 protect cu/om]s & ! public int]e/2 & 7,b7 are n design$ to-- 7i7 p]mit unfair discrim9ation betwe5 cu/om]s & crypto asset int]m$i>ies2 7ii7 fix m9imum pr(its2 7iii7 impose any s*$ule or fix rates ( commissions1 all[ances1 disc\nts1 or o!r fees to be *>g$ by ! memb]s ( ! au?ority2 or 7iv7 regulate by virtue ( any au?ority conf]r$ by law matt]s n relat$ to ! purposes ( ?is section or ! adm9i/ration ( ! au?ority4 7#g7 ,! rules ( ! au?ority provide t1 subject to any rule or ord] ( ! appropriate commission1 ! memb]s ( ! au?ority 7& p]sons associat$ ) ^? memb]s7 %all be appropriately discipl9$ = a violation ( any provision ( applicable law1 ! rules "u su* a provision1 or ! rules ( ! au?ority by expulsion1 susp5sion1 limitation ( activities1 functions1 & op]ations1 f9e1 c5sure1 a susp5sion or b> f be+ associat$ ) a memb]1 or any o!r fitt+ sanction4 7#h7 ,! rules ( ! au?ority are consi/5t ) ! provisions ( subsection 7h7 &1 9 g5]al1 provide a fair proc$ure =-- 7,a7 ! discipl9+ ( memb]s & p]sons associat$ ) memb]s2 7,b7 ! d5ial ( memb]%ip to any p]son seek+ memb]%ip 9 ! au?ority2 7,c7 ! b>r+ ( any p]son f becom+ associat$ ) a memb] ( ! au?ority2 & 7,d7 ! prohibition or limitation by ! au?ority ( any p]son ) respect to access to s]vices (f]$ by ! au?ority or a memb] ( ! au?ority4 7#i7 ,! rules ( ! au?ority d n impose any burd5 on competition n necess>y or appropriate 9 fur!rance ( ! purposes ( ?is section4 7#aj7 ,! requirem5ts ( subsection 7d71 z applicable1 are satisfi$4 7#aa7 ,! rules ( ! au?ority include provisions gov]n+ ! =m & cont5t ( quotations relat+ to crypto assets1 :i* %all be design$ to-- 7,a7 produce fair & in=mative quotations2 7,b7 prev5t fictiti\s or mislead+ quotations2 & 7,c7 promote ord]ly proc$ures = collect+1 di/ribut+1 & publi%+ quotations4 7d7 ,rules2 provision = regi/ration ( affiliat$ organization 7#a7 ,9 g5]al ,! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission may p]mit or require ! rules ( an au?ority apply+ = regi/ration "u subsection 7b7 to provide = ! admission ( an organization regi/]$ z an affiliat$ organization pursuant to subsection 7e71 to p>ticipate 9 ! applicant au?ority z an affiliate ( ! applicant au?ority1 "u t]ms p]mitt+ p[]s & responsibilities to ! affiliate1 & "u su* o!r appropriate t]ms & conditions1 z may be provid$ by ! rules ( ! applicant au?ority1 if ^? rules appe> to ! commissions jo9tly to be necess>y or appropriate 9 ! public int]e/ or = cu/om] protection & to c>ry out ! purposes ( ?is section4 7#b7 ,duties & p[]s ( ! commissions ,! duties & p[]s ( ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission ) respect to any au?ority or affiliate organization %all 9 no way be limit$ by reason ( any su* affiliation4 7e7 ,regi/ration z affiliat$ organization2 pr]equisites2 au?ority rules 7#a7 ,9 g5]al ,an applicant organization %all n be regi/]$ z an affiliat$ organization1 unless-- 7,a7 ! organization1 not)/&+ t ! organization does n satisfy ! requirem5ts "u subsection 7c77#a71 w1 ^u ! regi/ration ( ! organization "u ?is subsection1 be admitt$ to affiliation ) an organization regi/]$ z an au?ority pursuant to subsection 7c71 9 ! mann] & "u ! t]ms & conditions provid$ by ! rules ( ! cu/om] protection & m>ket integrity au?ority 9 accordance ) subsection 7d72 & 7,b7 ! organization & ! rules ( ! organization satisfy ! requirem5ts "u p>agraphs 7#b7 ?r\gh 7#aa7 ( subsection 7c74 7#b7 ,exception ,any re/rictions ^u memb]%ip ( an applicant organization %all n be less /r+5t ?an 9 ! case ( ! cu/om] protection & m>ket integrity au?ority ) :i* ! organization is to be affiliat$4 7f7 ,deal+s ) nonmemb] pr(essionals 7#a7 ,9 g5]al ,! rules ( a cu/om] protection & m>ket integrity au?ority may provide t no memb] ( ! au?ority may deal ) any nonmemb] pr(essional except at ! same prices1 = ! same commissions or fees1 & on ! same t]ms & conditions ! memb] accords to ! g5]al public4 7#b7 ,rule ( con/ruction ,no?+ 9 ?is subsection may be con/ru$ to prev5t any memb] ( a cu/om] protection & m>ket integrity au?ority f grant+ to any o!r memb] ( any o!r su* au?ority any disc\nt1 all[ance1 commission1 or special t]ms 9 connection ) a crypto asset transaction4 7g7 ,d5ial ( memb]%ip 7#a7 ,9 g5]al ,memb]%ip 9 a cu/om] protection & m>ket integrity au?ority "u ?is section %all be limit$ to crypto asset int]m$i>ies4 7#b7 ,d5ial = public int]e/ or consum] protection 7,a7 ,9 g5]al ,a cu/om] protection & m>ket integrity au?ority may1 & ! appropriate commission1 by ord]1 may direct su* an au?ority to1 z necess>y or appropriate 9 ! public int]e/ or = cu/om] protection1 d5y memb]%ip to any p]son1 & b> f becom+ associat$ ) a memb] any p]son1 t is subject to a /atutory disqualification )9 ! laws "u ! jurisdiction ( t commission4 7,b7 ,notice ,a cu/om] protection & m>ket integrity au?ority %all file notice ) ! appropriate commission1 9 su* =m & conta9+ su* in=mation z ! appropriate commission %all require1 n less ?an #cj days be=e admitt+ any p]son to memb]%ip or p]mitt+ any p]son to become associat$ ) a memb]1 if ! au?ority knew1 or 9 ! ex]cise ( reasonable c>e %\ld h kn[n1 t su* p]son 0 subject to a /atutory disqualification4 7#c7 ,proc$ure 7,a7 ,9 g5]al ,a cu/om] protection & m>ket integrity au?ority may-- 7i7 d5y memb]%ip to1 or condition ! memb]%ip (1 a crypto asset int]m$i>y1 if-- 7,i7 ! int]m$i>y does n meet su* /&>ds ( f9ancial responsibility or op]ational capability1 or su* int]m$i>y or any individual associat$ ) ! int]m$i>y does n meet su* /&>ds ( tra9+1 exp]i5ce1 & compet5ce1 z are prescrib$ by ! rules ( ! au?ority2 or 7,,ii7 ! int]m$i>y or p]son associat$ ) ! int]m$i>y has engag$1 & !re is a reasonable likelihood ! int]m$i>y or p]son w aga9 engage1 9 acts or practices inconsi/5t ) j & equitable pr9ciples ( trade2 & 7ii7 exam9e & v]ify ! qualifications ( an applicant to become a memb] & ! individuals associat$ ) ! applicant 9 accordance ) proc$ures e/abli%$ by ! rules ( ! au?ority4 7,b7 ,au?ority ,a cu/om] protection & m>ket integrity au?ority may-- 7i7 b> an individual f becom+ associat$ ) a memb]1 or condition ! association ( an individual ) a memb]1 if t individual-- 7,i7 does n meet su* /&>ds ( tra9+1 exp]i5ce1 & compet5ce z are prescrib$ by ! rules ( ! au?ority2 or 7,,ii7 has engag$1 & !re is a reasonable likelihood ! individual w aga9 engage1 9 acts or practices inconsi/5t ) j & equitable pr9ciples ( trade2 7ii7 exam9e & v]ify ! qualifications ( an applicant to become a p]son associat$ ) a memb] 9 accordance ) proc$ures e/abli%$ by ! rules ( ! au?ority2 & 7iii7 require an individual associat$ ) a memb]1 or any class ( su* individuals1 to be regi/]$ ) ! au?ority 9 accordance ) proc$ures s e/abli%$4 7,c7 ,b> on association ,a cu/om] protection & m>ket integrity au?ority may b> any p]son f becom+ associat$ ) a memb] if t p]son does n agree-- 7i7 to supply ! au?ority ) su* in=mation ) respect to ! relation%ip & deal+s ( ! p]son ) ! memb] z may be specifi$ 9 ! rules ( ! au?ority2 & 7ii7 to p]mit exam9ation ( ! records ( ! p]son to v]ify ! accuracy ( any in=mation suppli$ by ! p]son "u clause 7i74 7#d7 ,d5ial = type ( bus9ess 7,a7 ,9 g5]al ,subject to subp>agraph 7,b71 a cu/om] protection & m>ket integrity au?ority may d5y memb]%ip to a crypto asset int]m$i>y n engag$ 9 a type ( bus9ess 9 :i* ! rules ( ! au?ority require memb]s to be engag$4 7,b7 ,condition ,no cu/om] protection & m>ket integrity au?ority may d5y memb]%ip to a crypto asset int]m$i>y by reason ( ! am\nt ( su* type ( bus9ess done by su* int]m$i>y or ! o!r types ( bus9ess 9 :i* ! int]m$i>y is engag$4 7h7 ,discipl9e ( cu/om] protection & m>ket integrity au?ority memb]s & p]sons associat$ ) memb]s2 summ>y proce$+s 7#a7 ,discipl9e 7,a7 ,notification ,9 any proce$+ by a cu/om] protection & m>ket integrity au?ority to det]m9e :e!r a memb]1 or a p]son associat$ ) a memb]1 %\ld be discipl9$ 7o!r ?an a summ>y proce$+ pursuant to p>agraph 7#c771 ! au?ority %all br+ specific *>ges1 notify su* memb] or p]son ( 7& give ! p]son an opportunity to def5d aga9/7 ^? *>ges1 & keep a record4 7,b7 ,/atem5t ,a det]m9ation by a cu/om] protection & m>ket integrity au?ority to impose discipl9e 9 a proce$+ "u subp>agraph 7,a7 %all be support$ by a /atem5t sett+ =?-- 7i7 any act or practice 9 :i* ! memb]1 or p]son associat$ ) a memb]1 has be5 f\nd to h engag$1 or t su* memb] or p]son has be5 f\nd to h omitt$2 7ii7 ! specific provision ( law1 ! rules "u su* a provision1 or ! rules ( ! au?ority t an act or practice describ$ 9 clause 7i71 or omission to act1 is *>g$ ) violat+2 & 7iii7 ! sanction impos$ & a ju/ification = ! sanction4 7#b7 ,d5ial ( memb]%ip or s]vices 7,a7 ,notification ,9 any proce$+ by a cu/om] protection & m>ket integrity au?ority to det]m9e :e!r a p]son %all be d5i$ memb]%ip1 b>r$ f becom+ associat$ ) a memb]1 or prohibit$ or limit$ ) respect to access to s]vices (f]$ by ! au?ority or a memb] ( ! au?ority 7o!r ?an a summ>y proce$+ pursuant to p>agraph 7#c771 ! au?ority %all-- 7i7 notify t p]son & give ! p]son an opportunity to be he>d2 7ii7 provide ! p]son ! specific gr\nds = d5ial1 b>1 or prohibition or limitation "u consid]ation2 & 7iii7 ma9ta9 a record4 7,b7 ,/atem5t ,a det]m9ation by a cu/om] protection & m>ket integrity au?ority to d5y memb]%ip1 b> a p]son f becom+ associat$ ) a memb]1 or prohibit or limit a p]son ) respect to access to s]vices (f]$ by ! au?ority or a memb] "u subp>agraph 7,a7 %all be support$ by a /atem5t sett+ =? ! specific gr\nds on :i* ! d5ial1 b>1 or prohibition or limitation is bas$4 7#c7 ,summ>y proce$+ 7,a7 ,9 g5]al ,a cu/om] protection & m>ket integrity au?ority may summ>ily-- 7i7 susp5d a memb] ( ! au?ority1 or a p]son associat$ ) su* a memb]1 t is-- 7,i7 expell$ or susp5d$ f any o!r au?ority or entity delegat$ regulatory & discipl9>y au?ority by a gov]nm5tal ag5cy2 or 7,,ii7 b>r$ or susp5d$ f be+ associat$ ) a memb] ( ano!r au?ority2 7ii7 susp5d a memb] ( ! au?ority t is 9 su* f9ancial or op]at+ difficulty t ! au?ority det]m9es 7& s notifies ! appropriate commission7 t ! memb] _c be p]mitt$ to cont9ue to d bus9ess z a memb]1 9 ord] to protect cu/om]s1 cr$itors1 o!r memb]s1 or ! au?ority2 or 7iii7 limit or prohibit any p]son f access+ s]vices (f]$ by ! au?ority if clause 7i7 or 7ii7 is applicable to t p]son1 or1 9 ! case ( a p]son t is n a memb] ( ! au?ority1 if ! au?ority det]m9es t ! p]son-- 7,i7 does n meet ! qualification requirem5ts or o!r pr]equisites = t access2 & 7,,ii7 _c be p]mitt$ to cont9ue to h su* access ) safety1 9 ord] to protect cu/om]s1 cr$itors1 memb]s1 or ! au?ority4 7,b7 ,opportunity = he>+ ,any p]son aggriev$ by a summ>y action "u subp>agraph 7,a7 %all be promptly af=d$ an opportunity = a he>+ by ! applicable au?ority 9 accordance ) ! provisions ( p>agraph 7#a7 or 7#b74 7,c7 ,/ay ,! appropriate commission1 by ord]1 may /ay a summ>y action describ$ 9 subp>agraph 7,a7 on ! motion ( ! commission or ^u application by any p]son aggriev$ by ! summ>y action1 if ! commission det]m9es summ>ily or aft] notice & opportunity = he>+ 7:i* may consi/ solely ( ! submission ( affidavits or pres5tation ( oral argum5ts7 t ! /ay is consi/5t ) ! public int]e/ & cu/om] protection4 7i7 ,obligation ,to ma9ta9 regi/ration1 discipl9>y1 & o!r data 7#a7 ,ma9t5ance ( sy/em to respond to inquiries ,a cu/om] protection & m>ket integrity au?ority %all e/abli% & ma9ta9-- 7,a7 a sy/em = collect+ & reta9+ regi/ration in=mation2 & 7,b7 a website1 includ+ an application programm+ int]face1 to receive & promptly respond to inquiries reg>d+ regi/ration in=mation on ! memb]s ( ! au?ority & associat$ p]sons ) respect to ^? memb]s4 7#b7 ,recov]y ( co/s ,a cu/om] protection & m>ket integrity au?ority may *>ge p]sons mak+ inquiries describ$ 9 p>agraph 7#a77;,b71 o!r ?an individual cu/om]s ( crypto asset int]m$i>ies1 reasonable fees = responses4 7#c7 ,process = disput$ in=mation ,ea* cu/om] protection & m>ket integrity au?ority %all adopt rules e/abli%+ a process = disput+ ! accuracy ( in=mation provid$ 9 response to inquiries "u ?is subsection4 7#d7 ,limitation on liability ,a cu/om] protection & m>ket integrity au?ority1 or any crypto asset int]m$i>y report+ in=mation to su* an au?ority1 %all n h any liability to any p]son = any actions tak5 or omitt$ 9 good fai? "u ?is subsection4 7j7 ,avoidance ( duplicative rules 7#a7 ,9 g5]al ,ea* cu/om] protection & m>ket integrity au?ority regi/]$ "u subsection 7b7 %all issue rules z necess>y to avoid duplicative or conflict+ rules applicable to any crypto asset int]m$i>y t is a memb] ( a national securities ex*ange1 bo>d ( trade1 contract m>ket1 regi/]$ securities association1 regi/]$ futures association1 or simil> entity4 7#b7 ,o!r memb]%ip ,a crypto asset int]m$i>y %all n be requir$ to become a memb] ( ano!r entity delegat$ regulatory & discipl9>y au?ority by a gov]nm5tal ag5cy unless ! int]m$i>y p]=ms activities ) f9ancial assets o!r ?an crypto assets4 7#c7 ,non-crypto asset activities 7,a7 ,rules by commissions ,! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission %all jo9tly prescribe rules "u :i* a crypto asset int]m$i>y t is a memb] or affiliate ( a cu/om] protection & m>ket integrity au?ority regi/]$ "u ?is section may p]=m activities ) f9ancial assets o!r ?an crypto assets1 if ^? activities are n a majority ( ! bus9ess ( an int]m$i>y & are conduct$ 9 a responsible mann]1 )\t memb]%ip 9 ano!r entity delegat$ regulatory & discipl9>y au?ority by a gov]nm5tal ag5cy4 7,b7 ,rules by cu/om] protection & m>ket integrity au?ority ,a cu/om] protection & m>ket integrity au?ority "u ?is section %all adopt rules gov]n+ activities ) f9ancial assets o!r ?an crypto assets1 :i* %all be consi/5t ) exi/+ law1 rule1 guidance or indu/ry be/ practices or ! rules ( o!r entities delegat$ regulatory & discipl9>y au?ority by a gov]nm5tal ag5cy4 4 7b7 ,te*nical & con=m+ am5dm5t ,! table ( sections = *apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #bjh1 is am5d$ by add+ at ! end ! foll[+3 #ihji4 ,cu/om] protection & m>ket integrity au?orities4 4 #fjb4 ,regi/ration1 rulemak+1 & sup]vision ( cu/om] protection & m>ket integrity au?orities 7a7 ,9 g5]al ,*apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #fja1 is am5d$ by add+ at ! end ! foll[+3 #ihaj4 ,regi/ration1 rulemak+1 & sup]vision ( cu/om] protection & m>ket integrity au?orities 7a7 ,regi/ration proc$ures2 notice ( fil+2 o!r regulatory ag5cies 7#a7 ,publication ( notice 7,a7 ,9 g5]al ,! ,securities & ,ex*ange ,commission & ,commodity ,futures ,trad+ ,commission %all1 ^u ! fil+ ( an application = regi/ration z a cu/om] protection & m>ket integrity au?ority "u section #ihji1 publi% notice ( t fil+ & af=d int]e/$ p]sons an opportunity to submit writt5 data1 views1 & argum5ts conc]n+ ! application4 7,b7 ,requirem5ts ,n lat] ?an #ij days aft] ! date on :i* notice is publi%$ "u subp>agraph 7,a71 or )9 a long] p]iod to :i* ! applicable applicant cons5ts1 ! ,securities & ,ex*ange ,commission & ,commodity ,futures ,trad+ ,commission %all-- 7i7 by jo9t ord]1 grant regi/ration ( ! cu/om] protection & m>ket integrity au?ority2 or 7ii7 in/itute proce$+s to det]m9e :e!r regi/ration %\ld be d5i$4 7,c7 ,proce$+s 7i7 ,9 g5]al ,proce$+s in/itut$ "u subp>agraph 7,b77ii7 %all include notice ( ! gr\nds = d5ial "u consid]ation & opportunity = he>+ be=e ! jo9t commissions4 7ii7 ,he>+ ,a he>+ describ$ 9 clause 7i7 %all be conclud$ n lat] ?an #ahj days aft] ! date on :i* notice ( ! fil+ ( ! application = regi/ration is publi%$ "u subp>agraph 7,a74 7iii7 ,fur!r proce$+s 7,i7 ,sep>ate votes ,at ! conclusion ( a he>+ conduct$ "u ?is subp>agraph1 & n lat] ?an ! end ( ! #ahj-;day p]iod describ$ 9 clause 7ii71 ! ,securities & ,ex*ange ,commission & ,commodity ,futures ,trad+ ,commission1 vot+ sep>ately1 %all act to grant or d5y ! applicable regi/ration4 7,,ii7 ,effect ( failure to issue jo9t ord] ,! failure ( ! ,securities & ,ex*ange ,commission & ,commodity ,futures ,trad+ ,commission to issue a jo9t ord] dur+ ! p]iod describ$ 9 subclause 7,i7 %all be deem$ to be a d5ial ( ! applicable regi/ration4 7,d7 ,consid]ations ,) respect to an application = regi/ration describ$ 9 ?is p>agraph1 ! ,securities & ,ex*ange ,commission & ,commodity ,futures ,trad+ ,commission %all-- 7i7 grant regi/ration if all /atutory requirem5ts h be5 met & ! rules "u ^? /atutory provisions ) respect to ! applicant are satisfi$2 & 7ii7 d5y su* regi/ration if ! commissions d n make ! f9d+s describ$ 9 clause 7i74 7#b7 ,)drawal f regi/ration 7,a7 ,9 g5]al ,a cu/om] protection & m>ket integrity au?ority may1 ^u su* t]ms & conditions z ! ,securities & ,ex*ange ,commission & ,commodity ,futures ,trad+ ,commission1 by rule1 det]m9e necess>y or appropriate 9 ! public int]e/ or = ! protection ( cu/om]s1 )draw f regi/ration describ$ 9 p>agraph 7#a7 by fil+ a writt5 notice ( )drawal ) ! commissions4 7,b7 ,consid]ations ,if ! ,securities & ,ex*ange ,commission & ,commodity ,futures ,trad+ ,commission1 vot+ sep>ately1 ea* f9ds t a cu/om] protection & m>ket integrity au?ority is no long] 9 exi/5ce or has ceas$ to d bus9ess 9 ! capacity specifi$ 9 ! application = regi/ration submitt$ by ! au?ority1 ! commissions may cancel ! regi/ration ( ! au?ority4 7,c7 ,effect ( )drawal1 cancellation1 susp5sion1 or revocation ,^u )drawal by regi/ration or ! cancellation1 susp5sion1 or revocation ( ! regi/ration ( a cu/om] protection & m>ket integrity au?ority1 ! regi/ration ( any affiliate %all automatically t]m9ate4 7b7 ,propos$ rule *anges2 notice2 proce$+s 7#a7 ,9 g5]al ,except z o!rwise provid$ 9 p>agraph 7#b7-- 7,a7 a cu/om] protection & m>ket integrity au?ority %all file ) ! appropriate commission1 9 accordance ) ! rules ( t commission1 copies ( any propos$ rule or any propos$ *ange 91 addition to1 or deletion f ! rules ( su* cu/om] protection & m>ket integrity au?ority accompani$ by a concise g5]al /atem5t ( ! basis & purpose ( su* propos$ rule *ange2 7,b7 ! appropriate commission %all-- 7i7 z soon z practicable aft] ! date on :i* a propos$ rule *ange is fil$ "u subp>agraph 7,a71 publi% notice ( t fil+ toge!r ) ! t]ms ( sub/ance ( ! propos$ rule *ange or a description ( ! subjects & issues involv$2 & 7ii7 give int]e/$ p]sons an opportunity to submit writt5 data1 views1 & argum5ts conc]n+ t propos$ rule *ange2 7,c7 no propos$ rule *ange describ$ 9 subp>agraph 7,a7 %all take effect unless approv$ by ! appropriate commission or o!rwise p]mitt$ 9 accordance ) ! provisions ( ?is subsection2 & 7,d7 no propos$ rule *ange describ$ 9 subp>agraph 7,a7 relat+ to a matt] "u ! jurisdiction ( m ?an #a commission may be fil$4 7#b7 ,approval process 7,a7 ,approval process e/abli%$ 7i7 ,9 g5]al ,except z provid$ 9 clause 7ii71 n lat] ?an #cj days aft] ! date on :i* notice ( a propos$ rule *ange is publi%$ "u p>agraph 7#a71 ! appropriate commission %all-- 7,i7 by ord]1 approve or disapprove ! propos$ rule *ange2 or 7,,ii7 in/itute proce$+s "u subp>agraph 7,b7 to det]m9e :e!r ! propos$ rule *ange %\ld be disapprov$4 7ii7 ,ext5sion ( "t p]iod ,! appropriate commission may ext5d ! p]iod e/abli%$ "u clause 7i7 by n m ?an an additional #cj days1 if-- 7,i7 ! commission det]m9es t a long] p]iod is appropriate & publi%es ! reasons = t det]m9ation2 or 7,,ii7 ! cu/om] protection & m>ket integrity au?ority t fil$ ! propos$ rule *ange cons5ts to a long] p]iod4 7,b7 ,proce$+s 7i7 ,notice & he>+ ,if ! appropriate commission does n approve or disapprove a propos$ rule *ange "u subp>agraph 7,a71 ! commission %all provide to ! cu/om] protection & m>ket integrity au?ority t fil$ ! propos$ rule *ange-- 7,i7 notice ( ! gr\nds = disapproval "u consid]ation2 & 7,,ii7 opportunity = he>+1 to be conclud$ n lat] ?an #ahj days aft] ! date ( publication ( notice ( ! fil+ ( ! propos$ rule *ange4 7ii7 ,ord] ( approval or disapproval 7,i7 ,9 g5]al ,except z provid$ 9 subclause 7,,ii71 n lat] ?an #ahj days aft] ! date on :i* notice is publi%$ "u p>agraph 7#a71 ! appropriate commission %all issue an ord] approv+ or disapprov+ ! propos$ rule *ange t is ! subject ( ! notice4 7,,ii7 ,ext5sion ( "t p]iod ,! appropriate commission may ext5d ! p]iod = issuance "u clause 7,i7 by n m ?an #fj days1 if-- 7aa7 ! commission det]m9es t a long] p]iod is appropriate & publi%es ! reasons = su* det]m9ation2 or 7bb7 ! cu/om] protection & m>ket integrity au?ority t fil$ ! propos$ rule *ange cons5ts to ! long] p]iod4 7,c7 ,/&>ds = approval & disapproval 7i7 ,approval ,! appropriate commission %all approve a propos$ rule *ange ( a cu/om] protection & m>ket integrity au?ority if ! commission f9ds t ! propos$ rule *ange is consi/5t ) law4 7ii7 ,"t = approval ,! appropriate commission may n approve a propos$ rule *ange e>li] ?an #cj days aft] ! date ( publication ( notice ) respect to ! propos$ rule *ange "u p>agraph 7#a71 unless ! commission f9ds good cause = s do+ & publi%es ! reason = ! f9d+4 7,d7 ,result ( failure to in/itute or conclude proce$+s ,a propos$ rule *ange %all be deem$ to h be5 approv$ by ! appropriate commission1 if-- 7i7 ! commission does n approve or disapprove ! propos$ rule *ange1 or beg9 proce$+s "u subp>agraph 7,b71 )9 ! p]iod describ$ 9 subp>agraph 7,a72 or 7ii7 ! commission does n issue an ord] approv+ or disapprov+ ! propos$ rule *ange "u subp>agraph 7,b7 )9 ! p]iod describ$ 9 subp>agraph 7,b77ii74 7,e7 ,publication date bas$ on f$]al regi/] publi%+ 7i7 ,9 g5]al ,= purposes ( ?is p>agraph1 if1 aft] fil+ a propos$ rule *ange ) ! appropriate commission "u p>agraph 7#a71 a cu/om] protection & m>ket integrity au?ority publi%es a notice ( ! fil+ ( t propos$ rule *ange1 toge!r ) ! sub/antive t]ms ( t propos$ rule *ange1 on a publicly accessible website1 ! commission %all s5d ! notice to ! ,f$]al ,regi/] = publication ( ! propos$ rule *ange "u p>agraph 7#a7 n lat] ?an #e days aft] ! date on :i* t website publication is made4 7ii7 ,effect ( fail+ to s5d ,if ! appropriate commission fails to s5d notice "u clause 7i7 dur+ ! #e-;day p]iod describ$ 9 t clause1 ! date ( publication %all be deem$ to be ! date on :i* ! applicable website publication is made4 7#c7 ,int]nal gov]nance ,) respect to a propos$ rule relat+ to ! int]nal op]ation1 gov]nance1 & proc$ures ( a cu/om] protection & m>ket integrity au?ority1 or a propos$ rule relat+ to ! det]m9ation ( ! legal "* ( a crypto asset-- 7,a7 ! propos$ rule %all be-- 7i7 subject to approval by ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission2 & 7ii7 deem$ to be approv$ on ! date t is #e days aft] ! date on :i* ! propos$ rule is submitt$1 unless ei!r commission objects to ! propos$ rule *ange2 & 7,b7 if a commission objects to ! propos$ rule *ange "u subp>agraph 7,a77ii7-- 7i7 ! commission %all1 9 a public =mat1 provide to ! au?ority & ! non-object+ commission ! reasons = ! objection2 7ii7 ! au?ority1 & int]e/$ memb]s ( ! public1 may provide writt5 comm5ts to ! commissions dur+ ! #bj-;day p]iod beg9n+ on ! date on :i* ! objection is not$2 & 7iii7 ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission1 vot+ sep>ately1 %all jo9tly issue an ord] approv+ or disapprov+ ! propos$ rule1 ) ! failure to issue su* a jo9t ord] be+ deem$ to be approval ( ! propos$ rule4 7#d7 ,exception 7,a7 ,9 g5]al ,not)/&+ p>agraphs 7#b7 & 7#c71 a propos$ rule *ange %all take effect ^u fil+ if self-c]tifi$ by an au?ority z-- 7i7 con/itut+ a /at$ policy1 practice1 or int]pretation ) respect to ! mean+1 adm9i/ration1 or en=cem5t ( an exi/+ rule ( ! au?ority2 7ii7 e/abli%+ or *ang+ a due1 fee1 or o!r *>ge impos$ by ! au?ority on any p]son1 :e!r or n ! p]son is a memb] ( ! au?ority2 or 7iii7 not)/&+ any o!r provision ( ?is subsection1 necess>y = cu/om] protection1 ! ma9t5ance ( fair & ord]ly m>kets1 or ! safegu>d+ ( crypto assets1 cu/om] funds1 or o!r prop]ty1 9 :i* case ! propos$ rule *ange "u %all be fil$ promptly !reaft] 9 accordance ) p>agraph 7#a74 7,b7 ,en=cem5t 7i7 ,9 g5]al ,any propos$ rule *ange ( an au?ority t has tak5 effect "u subp>agraph 7,a7 may be en=c$ by ! au?ority to ! ext5t ! rule *ange is n inconsi/5t ) applicable law4 7ii7 ,susp5sion 7,i7 ,9 g5]al ,at any "t dur+ ! #fj-;day p]iod beg9n+ on ! date on :i* a propos$ rule *ange is fil$ "u p>agraph 7#a71 ! appropriate commission may tempor>ily & summ>ily susp5d ! *ange 9 ! rules ( ! au?ority on a tempor>y basis1 if ! commission det]m9es t su* action is necess>y or appropriate 9 ! public int]e/1 = cu/om] protection1 or to o!rwise comply ) applicable law4 7,,ii7 ,requirem5ts ,if a commission takes action "u subclause 7,i71 ! commission %all in/itute proce$+s "u p>agraph 7#b77;,b7 to det]m9e :e!r ! applicable propos$ rule %\ld be approv$ or disapprov$4 7iii7 ,rule ( con/ruction ,action "u ?is subp>agraph %all n affect ! validity or =ce ( a propos$ rule *ange dur+ ! p]iod ! rule *ange 0 9 effect & %all n be reviewable 9 a judicial proce$+1 nor deem$ to be f9al ag5cy action = purposes ( section #gjd ( title #e4 7#e7 ,rule ( con/ruction relat+ to fil+ date ( propos$ rule *anges 7,a7 ,9 g5]al ,= purposes ( ?is subsection1 ! date ( fil+ ( a propos$ rule *ange %all be deem$ to be ! date on :i* ! applicable commission receives ! propos$ rule *ange4 7,b7 ,exception 7i7 ,9 g5]al ,subject to clause 7ii71 a propos$ rule has n be5 receiv$ by ! applicable commission = purposes ( subp>agraph 7,a71 if1 n lat] ?an #g bus9ess days aft] ! date on :i* ! commission receives ! rule1 ! commission notifies ! au?ority t ! propos$ rule *ange does n comply ) ! rules ( ! commission relat+ to ! requir$ =m ( a propos$ rule *ange4 7ii7 ,l5g?y & complex propos$ rule *anges 7,i7 ,9 g5]al ,if ! applicable commission det]m9es t a propos$ rule *ange is unusually l5g?y1 & is complex or raises novel regulatory issues1 ! commission %all in=m ! au?ority ( t det]m9ation n lat] ?an #g bus9ess days aft] ! date on :i* ! commission receives ! rule4 7,,ii7 ,deadl9e ,= ! purposes ( subp>agraph 7,a71 a propos$ rule *ange describ$ 9 subclause 7,i7 has n be5 receiv$ by ! applicable commission1 if1 n lat] ?an #ba days aft] ! date on :i* ! commission receives ! rule1 ! commission notifies ! applicable au?ority t ! propos$ rule *ange does n comply ) ! rules ( ! commission relat+ to ! requir$ =m ( a propos$ rule *ange4 7,c7 ,applicability ,?is p>agraph %all n apply to a rule relat+ to ! int]nal op]ations1 gov]nance1 & proc$ure ( an au?ority4 7c7 ,am5dm5t ( rules ( au?orities 7#a7 ,9 g5]al ,! appropriate commission may1 by rule1 abrogate1 add to1 & delete f ! rules ( an au?ority z ! commission det]m9es necess>y or appropriate to ensure ! fair adm9i/ration ( ! au?ority or to con=m ! rules ( ! au?ority to law or applicable rule1 9 ! foll[+ mann]3 7,a7 ,! appropriate commission %all notify ! au?ority & publi% notice ( ! propos$ rulemak+ 9 ! ,f$]al ,regi/]1 :i* %all include ! text ( ! propos$ am5dm5t to ! rules ( ! au?ority & a /atem5t ( ! reasons ( ! commission1 includ+ any p]t95t facts1 = comm5c+ ! propos$ rulemak+4 7,b7 7i7 ,! appropriate commission %all give int]e/$ p]sons an opportunity = ! oral pres5tation ( data1 views1 & argum5ts1 9 addition to an opportunity to make writt5 submissions4 7ii7 ,a transcript %all be kept ( any oral pres5tation "u clause 7i74 7,c7 ,a rule adopt$ pursuant to ?is p>agraph %all incorporate ! text ( ! am5dm5t to ! rules ( ! au?ority & a /atem5t ( ! appropriate commission reg>d+ ! basis = am5dm5t ( ! rule1 :i* %all include an id5tification ( any facts on :i* ! det]m9ation ( ! commission to am5d ! rules ( ! au?ority is bas$1 includ+ ! reasons = ! conclusions ( ! commission relat+ to any facts t 7 disput$ 9 ! rulemak+4 7#b7 ,rule ( con/ruction ,no?+ 9 ?is subsection may be con/ru$ to impair or limit ! au?ority ( ! appropriate commission to make1 or to modify or alt] ! proc$ures ! commission may foll[ 9 mak+1 rules pursuant to any o!r au?ority grant$ by law t is consi/5t ) ?is subsection4 7#c7 ,effect ( rules ,any am5dm5t to ! rules ( an au?ority made by ! appropriate commission "u ?is subsection %all be consid]$ = all purposes to be "p ( ! rules ( t au?ority & %all n be consid]$ to be a rule ( t commission4 7#d7 ,consultations ,) respect to rules describ$ 9 subsection 7b77#d77;,a77iii71 ! appropriate commission %all consult ) & consid] ! views ( ! o!r commission & ! ,secret>y ( ! ,treasury be=e abrogat+1 add+ to1 & delet+ f ^? rules1 except :]e ! commission det]m9es t an em]g5cy exi/s requir+ exp$iti\s or summ>y action & publi%es ! reasons ( ! commission = tak+ t action4 7d7 ,notice ( discipl9>y action tak5 by au?ority aga9/ a memb] or p>ticipant2 review ( action by appropriate commission2 proc$ure 7#a7 ,9 g5]al ,if an au?ority imposes any f9al discipl9>y sanction on any memb] ( ! au?ority1 or any p>ticipant ) respect to ! au?ority1 d5ies memb]%ip or p>ticipation to any applicant1 prohibits or limits any p]son f access+ s]vices (f]$ by ! au?ority or a memb] ( ! au?ority1 imposes any f9al discipl9>y sanction on any p]son associat$ ) a memb]1 or b>s any p]son f becom+ associat$ ) a memb]1 ! au?ority %all promptly file notice ( t action ) ! appropriate commission4 7#b7 ,review 7,a7 ,9 g5]al ,any action ) respect to :i* an au?ority is requir$ to file notice "u p>agraph 7#a7 %all be subject to review by ! appropriate commission = ! applicable memb]1 p>ticipant1 applicant1 or o!r p]son1 on its own motion1 or ^u application by any p]son aggriev$ by t action if fil$ n lat] ?an #cj days aft] ! date on :i* ! notice 0 fil$ ) ! appropriate commission & receiv$ by ! aggriev$ p]son1 or )9 su* long] p]iod z ! appropriate commission may det]m9e4 7,b7 ,application ,application to ! appropriate commission = review1 or ! in/itution ( review by ! commission on its own motion1 %all n op]ate z a /ay ( an action describ$ 9 subp>agraph 7,a7 unless ! appropriate commission o!rwise ord]s1 summ>ily or aft] notice & opportunity = he>+ on ! "q ( a /ay1 :i* may consi/ solely ( ! submission ( affidavits or pres5tation ( oral argum5ts4 7,c7 ,/ays ,= ! purposes ( ?is p>agraph1 ea* ( ! appropriate commissions %all e/abli% = appropriate cases an exp$it$ proc$ure = consid]ation & det]m9ation ( ! "q ( a /ay4 7#c7 ,applicability ,?is subsection %all apply only to ! ext5t t an au?ority imposes any f9al discipl9>y sanction =-- 7,a7 a violation ( ,f$]al law or ! rules issu$ "u ,f$]al law2 or 7,b7 a violation ( a rule ( ! au?ority1 z to :i* a propos$ *ange w\ld be requir$ to be fil$ "u ?is section4 7e7 ,disposition ( review2 cancellation1 r$uction1 or remission ( sanction 7#a7 ,9 g5]al ,9 any proce$+ to review a f9al discipl9>y sanction impos$ by an au?ority on a memb]1 a p>ticipant ) respect to ! au?ority1 or a p]son associat$ ) su* a memb]1 aft] notice & opportunity = he>+1 :i* may consi/ solely ( consid]ation ( ! record be=e ! au?ority & opportunity = ! pres5tation ( support+ reasons to affirm1 modify1 or set aside ! sanction-- 7,a7 if ! appropriate commission f9ds t su* memb]1 p>ticipant1 or p]son associat$ ) a memb] has engag$ 9 su* acts or practices1 or has omitt$ su* acts1 z ! au?ority has f\nd t p]son to h engag$ 9 or omitt$1 t su* acts or practices1 or omissions to act1 are 9 violation ( law1 ! rules !reund]1 or ! rules ( ! au?ority1 & t su* provisions are1 & 7 appli$ 9 a mann]1 consi/5t ) law1 ! commission1 by ord]1 %all-- 7i7 make a decl>ation reg>d+ t f9d+2 & 7ii7 z appropriate-- 7,i7 affirm ! sanction impos$ by ! au?ority2 7,,ii7 modify ! sanction 9 accordance ) p>agraph 7#b72 or 7,,iii7 rem& to ! au?ority = fur!r proce$+s2 or 7,b7 if ! appropriate commission does n make a f9d+ describ$ 9 subp>agraph 7,a71 ! commission %all1 by ord]-- 7i7 set aside ! sanction impos$ by ! au?ority2 & 7ii7 if appropriate1 rem& to ! au?ority = fur!r proce$+s4 7#b7 ,modification ,if ! appropriate commission = a memb]1 p>ticipant1 or p]son associat$ ) a memb]1 hav+ due reg>d = ! public int]e/ & cu/om] protection1 f9ds1 aft] a proce$+ "u p>agraph 7#a71 t a sanction impos$ by a au?ority ^u t memb]1 p>ticipant1 or p]son associat$ ) a memb] imposes any burd5 on competition n necess>y or appropriate or is excessive or oppressive1 ! commission may cancel1 r$uce1 or require ! remission ( t sanction4 7f7 ,dismissal ( review proce$+ 7#a7 ,9 g5]al ,9 any proce$+ to review ! d5ial ( memb]%ip or p>ticipation 9 an au?ority to any applicant1 ! b>r+ ( any p]son f becom+ associat$ ) a memb] ( an au?ority1 or ! prohibition or limitation by an au?ority ( any p]son f access+ s]vices (f]$ by ! au?ority or any memb]1 if ! appropriate commission1 aft] notice & opportunity = he>+1 :i* may consi/ solely ( consid]ation ( ! record be=e ! au?ority & opportunity = ! pres5tation ( support+ reasons to dismiss ! proce$+ or set aside ! action ( ! au?ority1 f9ds t ! specific gr\nds on :i* t d5ial1 b>1 or prohibition or limitation is bas$ exi/ 9 fact1 t su* d5ial1 b>1 or prohibition or limitation is 9 accordance ) ! rules ( ! au?ority1 & t su* rules are1 & 7 appli$ 9 a mann]1 consi/5t ) law1 ! appropriate commission1 by ord]1 %all dismiss ! proce$+4 7#b7 ,failure to make f9d+ ,if ! appropriate commission does n make a f9d+ describ$ 9 p>agraph 7#a71 or if ! commission f9ds t ! applicable d5ial1 b>1 prohibition1 or limitation imposes any burd5 on competition n necess>y or appropriate1 ! commission1 by ord]1 %all set aside ! action ( ! au?ority & require ! au?ority to admit ! applicable applicant to memb]%ip or p>ticipation1 p]mit t p]son to become associat$ ) a memb]1 or grant t p]son access to s]vices (f]$ by ! au?ority or a memb]4 7g7 ,susp5sion or revocation ( au?ority regi/ration2 o!r sanctions 7#a7 ,9 g5]al ,if necess>y or appropriate 9 ! public int]e/1 = cu/om] protection1 or o!rwise 9 fur!rance ( ! purposes ( ?is section1 ! appropriate commissions1 vot+ sep>ately1 may issue a jo9t ord] susp5d+ = a p]iod n exce$+ #a ye> or revok+ ! regi/ration ( an au?ority1 or c5sur+ or impos+ limitations ^u ! activities1 functions1 & op]ations ( an au?ority1 if1 ! commissions f9d1 on ! record aft] notice & opportunity = he>+1 t ! au?ority-- 7,a7 has violat$ or is unable to comply ) any provision ( law1 rule1 or ! rules ( ! au?ority )\t reasonable ju/ification or excuse2 or 7,b7 has fail$ to en=ce compliance ) any provision by a memb] ( ! au?ority or a p]son associat$ ) a memb] ( ! au?ority4 7#b7 ,expulsion ,! appropriate commission may1 by ord]1 if necess>y or appropriate 9 ! public int]e/1 = cu/om] protection1 or o!rwise 9 fur!rance ( ! purposes ( ?is section1 to susp5d = a p]iod n exce$+ #a ye> or expel f an au?ority1 any memb] ( an au?ority1 or p>ticipant ) respect to an au?ority1 if su* memb] or p>ticipant is subject to an ord] ( ! commission or if ! commission1 on ! record aft] notice & opportunity = he>+1 det]m9es t ! memb] or p>ticipant has willfully violat$1 or has effect$ any transaction = any o!r p]son :o ! memb] or p>ticipant _h reason to believe 0 violat+1 ) respect to su* transaction any applicable provision ( law "u ! jurisdiction ( ! commission4 7#c7 ,b> on association ,! applicable commission may1 by ord]1 if necess>y or appropriate 9 ! public int]e/1 = cu/om] protection1 or o!rwise 9 fur!rance ( ! purposes ( ?is section1 to susp5d = a p]iod n exce$+ #a ye> or to b> any p]son f be+ associat$ ) a memb] ( su* au?ority1 if ! p]son is subject to an ord] ( ! appropriate commission or if ! appropriate commission f9ds1 on ! record aft] notice & opportunity = he>+1 t ! p]son has willfully violat$1 or has effect$ any transaction = any o!r p]son :o ! p]son associat$ ) a memb] _h reason to believe 0 violat+1 ) respect to ! transaction any applicable provision ( law "u ! jurisdiction ( ! commission4 7#d7 ,removal f (fice ,if necess>y or appropriate 9 ! public int]e/1 = cu/om] protection1 or o!rwise 9 fur!rance ( ! purposes ( ?is section1 ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission1 vot+ sep>ately1 may1 by jo9t ord]1 remove f (fice or c5sure any p]son :o is1 or at ! "t ( ! alleg$ misconduct 01 an (fic] or director ( an au?ority1 if ! commissions f9d1 on ! record aft] notice & opportunity = a he>+ be=e an imp>tial he>+ (fic]1 t su* p]son has willfully violat$ any provision ( law1 ! rules !reund]1 or ! rules ( su* au?ority1 willfully abus$ ! au?ority ( ! p]son1 or )\t reasonable ju/ification or excuse has fail$ to en=ce compliance ) any provision ( law by any memb] or p]son associat$ ) a memb]4 7h7 ,int]ag5cy work+ gr\p ,! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission %all ea* appo9t an equal numb] ( employees1 "u ! sup]vision ( ! ,*airman ( ! respective commissions1 to an int]ag5cy work+ gr\p1 :i* %all coord9ate & facilitate ! responsibilities & p[]s ( ! respective commissions "u ?is *apt]4 4 7b7 ,te*nical & con=m+ am5dm5t ,! table ( sections = *apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #fja1 is am5d$ by add+ at ! end ! foll[+3 #ihaj4 ,regi/ration1 rulemak+1 & sup]vision ( cu/om] protection & m>ket integrity au?orities4 4 #fjc4 ,records & reports2 duties & p[]s ( cu/om] protection & m>ket integrity au?orities 7a7 ,9 g5]al ,*apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #fjb1 is am5d$ by add+ at ! end ! foll[+3 #ihaa4 ,records & reports2 duties & p[]s ( cu/om] protection & m>ket integrity au?orities 7a7 ,9 g5]al ,ea* cu/om] protection & m>ket integrity au?ority %all-- 7#a7 ) respect to ! memb]s ( ! au?ority1 asc]ta9 & en=ce compliance ) ! rules ( ! au?ority1 ,f$]al & ,/ate law to :i* ^? memb]s are subject1 & any rules issu$ by any su* memb]1 includ+ any rule issu$ "u section #e;i ( ! ,commodity ,ex*ange ,act 7#e ,u4,s4,c4 #g;i72 7#b7 discipl9e memb]s ( ! au?ority & o!r p]sons subject to ! jurisdiction ( ! au?ority "u ?is *apt]2 & 7#c7 make1 & keep = prescrib$ p]iods1 su* electronic records & dissem9ate reports z ! cu/om] protection & m>ket integrity au?ority1 by rule1 prescribes z necess>y or appropriate 9 ! public int]e/4 7b7 ,records subject to exam9ation 7#a7 ,proc$ures = coop]ation ) o!r ag5cies 7,a7 ,9 g5]al ,all records ( a memb] describ$ 9 subsection 7a7 are subject at any "t1 or f "t to "t1 to reasonable p]iodic1 special1 or o!r exam9ations by ! cu/om] protection & m>ket integrity au?ority ( ! memb]4 7,b7 ,notice ,be=e conduct+ an exam9ation "u subp>agraph 7,a71 ! exam9+ au?ority %all-- 7i7 in=m all o!r relevant regulatory ag5cies & entities ) jurisdiction ov] ! memb] reg>d+ ! propos$ exam9ation2 & 7ii7 consult conc]n+ ! feasibility & desirability ( coord9at+ su* exam9ation ) exam9ations conduct$ by o!r entities ) a view to avoid+ unnecess>y duplication & undue regulatory burd54 7,c7 ,exam9ations ( memb]s ,^u a %[+ ( good cause1 ! ,securities & ,ex*ange ,commission or ! ,commodity ,futures ,trad+ ,commission1 z applicable1 may conduct a special exam9ation ( a cu/om] protection & m>ket integrity au?ority or a memb] ( su* an au?ority4 7,d7 ,report ,) respect to an exam9ation "u ?is p>agraph1 ! exam9+ au?ority %all %>e su* in=mation1 includ+ reports ( ! exam9ation1 cu/om] compla9t in=mation1 & o!r nonpublic regulatory in=mation1 z may be appropriate to fo/] a coord9at$ approa* to regulatory ov]sight = memb]s t are subject to exam9ation by m ?an #a exam9+ au?ority4 7,e7 ,requirem5ts :5 exam9ation n ongo+ ,a cu/om] protection & m>ket integrity au?ority1 at all times :5 an exam9ation "u ?is p>agraph is n 9 progress1 %all conduct ongo+ sup]vision ( memb]s ( ! au?ority1 z may be provid$ by ! rules ( ! au?ority4 7#b7 ,exam9ation /&>ds ,a cu/om] protection & m>ket integrity au?ority %all-- 7,a7 adopt tailor$ sup]vision & exam9ation /&>ds comm5surate ) ! size & complexity ( ! au?ority & risks fac$ by memb]s ( ! au?ority2 & 7,b7 develop /&>d =m cu/om] agreem5ts = ! execution ( crypto asset transactions4 7c7 ,au?orities 7#a7 ,9 g5]al ,! ,securities & ,ex*ange ,commission & ,commodity ,futures ,trad+ ,commission1 %all1 by rule or ord]1 9 ord] to fo/] coop]ation & coord9ation-- 7,a7 ) respect to any p]son t is a memb] ( or p>ticipant 9 m ?an #a cu/om] protection & m>ket integrity au?ority or o!r entity delegat$ regulatory & discipl9>y au?ority by a gov]nm5tal ag5cy or1 relieve ! au?ority or entity ( any responsibility-- 7i7 to receive regulatory reports f ! p]son2 7ii7 to exam9e ! p]son = compliance2 or 7iii7 to c>ry out o!r specifi$ regulatory functions ) respect to ! p]son2 & 7,b7 allocate among entities ! au?ority to adopt rules ) respect to matt]s z to :i*1 9 ! abs5ce ( ! allocation1 su* entities %>e au?ority4 7#b7 ,consid]ations 7,a7 ,9 g5]al ,9 mak+ a rule1 or ent]+ an ord]1 "u p>agraph 7#a71 ! appropriate commission %all take into consid]ation ! regulatory capabilities & proc$ures ( ! entities1 availability ( /aff1 conv5i5ce ( location1 unnecess>y regulatory duplication1 & all o!r factors applicable to cu/om] protection1 coop]ation & coord9ation1 & ! developm5t ( a heal?y crypto asset m>ket1 :i* may include provid+ = ! acceptance ( exam9ation reports prep>$ by a cu/om] protection & m>ket integrity au?ority "u ?is *apt] ) respect to a crypto asset int]m$i>y = :i* crypto asset activities con/itute a majority ( bus9ess1 9 lieu ( exam9ations conduct$ by o!r entities4 7,b7 ,notification requirem5t ,! ,securities & ,ex*ange ,commission or ,commodity ,futures ,trad+ ,commission1 by rule or ord]1 may require t an au?ority reliev$ ( any responsibility "u ?is p>agraph1 & any p]son ) respect to :i* t responsibility relates1 take su* /eps z are specifi$ 9 any rule or ord] to notify cu/om]s (1 & p]sons do+ bus9ess )1 ! p]son ( ! limit$ nature ( ! responsibility ( t regi/]$ au?ority = ! acts1 practices1 & c\rse ( bus9ess ( ! p]son4 7d7 ,miss+ & /ol5 crypto assets ,ea* memb] ( a cu/om] protection & m>ket integrity au?ority or o!r f9ancial in/itution conduct+ crypto asset transactions %all report to ! ,f9ancial ,crimes ,en=cem5t ,network ( ! ,dep>tm5t ( ! ,treasury su* in=mation z may be requir$ by rule relat+ to crypto asset !ft or miss+ private keys = ! possession or control ( crypto assets4 7e7 ,confid5tiality 7#a7 ,%>+ ( in=mation 7,a7 ,9 g5]al ,section #bd ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #ghx7 %all apply to ! %>+ ( in=mation by ! ,securities & ,ex*ange ,commission & ,commodity ,futures ,trad+ ,commission 9 accordance ) ?is subsection4 7,b7 ,protection f inappropriate disclosure ,! commissions & a cu/om] protection & m>ket integrity au?ority %all ensure t all confid5tial in=mation is n inappropriately disclos$ pursuant to subp>agraph 7,a74 7#b7 ,appropriate disclosure n prohibit$ ,no?+ 9 ?is subsection may be con/ru$ to au?orize ! ,securities & ,ex*ange ,commission & ,commodity ,futures ,trad+ ,commission or a cu/om] protection & m>ket integrity au?ority to-- 7,a7 )hold in=mation f ,congress2 or 7,b7 prev5t ! commissions1 an au?ority or o!r entity delegat$ regulatory & discipl9>y au?ority by a gov]nm5tal ag5cy f comply+ )-- 7i7 a reque/ = in=mation f any ,f$]al or ,/ate dep>tm5t or ag5cy reque/+ ! in=mation = purposes )9 ! scope ( ! jurisdiction ( t dep>tm5t or ag5cy2 or 7ii7 an ord] ( a c\rt ( ! ,unit$ ,/ates 9 an action br\ght by ! ,unit$ ,/ates or ! commissions4 7f7 ,be/ execution ,a cu/om] protection & m>ket integrity au?ority1 9 consultation ) memb]s ( ! au?ority1 ! ,securities & ,ex*ange ,commission1 & ! ,commodity ,futures ,trad+ ,commission1 %all develop rules gov]n+ ! be/ execution ( crypto asset transactions4 7g7 ,initial det]m9ation ( legal "* 7#a7 ,9 g5]al 7,a7 ,initial det]m9ation ,a cu/om] protection & m>ket integrity au?ority may make an initial det]m9ation ( ! legal "* ( a crypto asset z a security1 an ancill>y asset1 a commodity 7z def9$ 9 section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a771 or z o!rwise provid$ by law1 ^u ! writt5 reque/ ( a memb] ( ! au?ority4 7,b7 ,consultation2 he>+s ,^u receipt ( a reque/ "u subp>agraph 7,a71 a cu/om] protection & m>ket integrity au?ority-- 7i7 %all consult ) ! commissions & make an initial det]m9ation reg>d+ ! reque/1 aft] public notice & comm5t1 n lat] ?an #de days aft] ! date on :i* ! au?ority receives ! reque/2 & 7ii7 may hold a public he>+ ) respect to an initial det]m9ation describ$ 9 clause 7i71 if-- 7,i7 ! matt] is ( significant prec$5tial value or complex2 or 7,,ii7 hold+ su* a he>+ is o!rwise 9 ! public int]e/4 7#b7 ,publication ,a cu/om] protection & m>ket integrity au?ority %all publi% all det]m9ations made "u p>agraph 7#a7 on ! website ( ! au?ority4 7h7 ,objection to initial det]m9ation 7#a7 ,9 g5]al 7,a7 ,deadl9e = objection ,n lat] ?an #cj days aft] ! date on :i* an initial det]m9ation is made "u subsection 7g71 ! ,securities & ,ex*ange ,commission or ,commodity ,futures ,trad+ ,commission may object to ! initial det]m9ation ( ! cu/om] protection & m>ket integrity au?ority by issu+ an ord]1 aft] public notice1 comm5t1 & a he>+4 7,b7 ,effect ( objection ,^u an objection "u subp>agraph 7,a71 ! initial det]m9ation to :i* ! objection applies %all be held 9 abeyance4 7#b7 ,ord] 7,a7 ,deadl9e = objection ,n lat] ?an #cj days aft] ! date on :i* an initial det]m9ation is made "u subsection 7g71 ! ,securities & ,ex*ange ,commission or ! ,commodity ,futures ,trad+ ,commission may object to ! initial det]m9ation by issu+ an ord]1 aft] public notice1 comm5t1 & a he>+4 7,b7 ,effect ( objection ,^u an objection "u subp>agraph 7,a71 ! initial det]m9ation to :i* ! objection applies %all be held 9 abeyance1 p5d+ resolution "u section #db7;b77#d77;,c7 ( ! ,securities ,ex*ange ,act ( #aicd4 4 7b7 ,te*nical & con=m+ am5dm5t ,! table ( sections = *apt] #ih ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #fjb1 is am5d$ by add+ at ! end ! foll[+3 #ihaa4 ,records & reports2 duties & p[]s ( cu/om] protection & m>ket integrity au?orities4 4 ,,vii ,responsible paym5ts innovation #gja4 ,issuance ( paym5t /ableco9s ,subtitle ,c ( title ,,vii ( ! ,gramm-,lea*-,bliley ,act 7,public ,law #ajf-ajb2 #aac ,/at4 #adgj7 is am5d$ by add+ at ! end ! foll[+3 #gbb;,a4 ,issuance ( paym5t /ableco9s 7a7 ,prohibitions 7#a7 ,9 g5]al ,x %all be unlawful = any p]son o!r ?an a depository in/itution 9 accordance ) ?is section1 or subsidi>y !re(1 to issue a paym5t /ableco94 7#b7 ,kn[+ p>ticipation ,:oev] kn[+ly p>ticipates 9 a violation ( ?is section %all be f9$ n m ?an #a1jjj1jjj1 imprison$ = n m ?an #e ye>s1 or bo?4 7#c7 ,(f] or sale ,x %all be unlawful = any p]son to (f] or sell a paym5t /ableco9 ?r\gh ! use ( any m$ium or by any means ( access 9 int]/ate comm]ce 9 ! ,unit$ ,/ates or to (f] or sell a paym5t /ableco9 to a ,unit$ ,/ates p]son unless su* paym5t /ableco9 is issu$ by a depository in/itution "u ?is section1 except z o!rwise provid$ by ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em4 7#d7 ,extrat]ritorial effect ,?is subsection is int5d$ to h extrat]ritorial effect4 7#e7 ,civil action ,! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em may br+ an action 9 ! appropriate di/rict c\rt ( ! ,unit$ ,/ates or ! c\rt ( any t]ritory ( ! ,unit$ ,/ates = ! en=cem5t ( ?is section & su* c\rts %all h jurisdiction & p[] to ord] & require compliance h]e)1 includ+ ?r\gh injunctive relief4 7b7 ,activities ,a depository in/itution may issue1 r$eem1 & conduct all incid5tal activities relat+ to paym5t /ableco9s 9 accordance ) ?is section4 7c7 ,requir$ paym5t /ableco9 assets ,a depository in/itution1 or a subsidi>y !re(1 %all ma9ta9 high-quality liquid assets "u ?is section equal to n less ?an #ajj p]c5t ( ! face am\nt ( ! liabilities ( ! in/itution on paym5t /ableco9s issu$ by ! in/itution4 ,9 ! case ( a depository in/itution describ$ 9 subsection 7n77#a77;,a7 t engages 9 ! bus9ess ( bank+ o!r ?an ! issuance ( a paym5t /ableco9 & relat$ activities "u ?is section1 issuance ( ! paym5t /ableco9 & all relat$ activities %all take place )9 a :olly own$ subsidi>y ( ! depository in/itution1 )9 ! same hold+ company /ructure4 ,paym5t /ableco9 assets may n be pl$g$1 rehypo!cat$1 or reus$1 except = ! purpose ( creat+ liquidity to meet reasonable expectations ( reque/s to r$eem paym5t /ableco9s4 ,! provisions ( section #bd7;j7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaca;a7j77 %all apply to a subsidi>y 9 ! same mann] z ! depository in/itution4 ,high-quality liquid assets t a bank is p]mitt$ to ma9ta9 "u ?is section %all include ! foll[+3 7#a7 ,unit$ ,/ates co9s & curr5cy & any o!r in/rum5t t is legal t5d]1 z def9$ 9 section #eajc ( title #ca1 ,unit$ ,/ates ,code4 7#b7 ,dem& deposits at a depository in/itution1 except t deposits 9 an insur$ depository in/itution %all n exce$ ! limit ( deposit or %>e insurance available = t acc\nt1 or %all be ma9ta9$ 9 a special1 cu/odial1 or tru/ acc\nt or o!r (f-balance %eet acc\nt held by ! insur$ depository in/itution4 7#c7 ,balances held at a ,f$]al ,res]ve bank1 :i* may be held 9 a ma/] acc\nt or segregat$ balance acc\nt4 7#d7 ,=eign )drawable res]ves1 z def9$ 9 section #bdi4c ( title #ab1 ,code ( ,f$]al ,regulations1 consi/5t ) any =eign unit ( acc\nt 9 :i* ! paym5t /ableco9 is d5om9at$ or pegg$4 7#e7 ,a security t is issu$ by1 or unconditionally gu>ante$ z to ! timely paym5t ( pr9cipal & int]e/ by1 ! ,dep>tm5t ( ! ,treasury1 ) an orig9al maturity ( #a ye> or less4 7#f7 ,a res]ve repur*ase agreem5t relat+ to a security describ$ 9 p>agraph 7#e74 7#g7 ,any o!r high-quality1 liquid asset det]m9$ to be consi/5t ) safe & s\nd bank+ practices1 z det]m9$ by ! appropriate ,f$]al bank+ ag5cy or ,/ate bank sup]visor4 7d7 ,disclosures ,n lat] ?an #aj bus9ess days aft] ! end ( ea* mon?1 a depository in/itution %all disclose1 9 a publicly accessible mann]1 a summ>y description ( ! assets back+ ! paym5t /ableco91 ! value ( ! assets1 & ! numb] ( out/&+ paym5t /ableco9s1 z ( ! la/ day ( ! mon?4 ,su* explanation %all be fil$ ) ! ,secret>y ( ! ,treasury "u p5alty ( p]jury by ! *ief f9ancial (fic] ( ! in/itution1 & made available on a website ( ! ,dep>tm5t ( ! ,treasury1 n less ?an #aj bus9ess days aft] fil+4 ,! depository in/itution %all also report on ! summ>y description any in/ances 9 :i* ! in/itution fail$ to comply ) any requirem5t ( subsection 7b74 ,z applicable1 ! appropriate ,f$]al bank+ ag5cy or ,/ate bank sup]visor %all1 z "p ( a regul> exam9ation ( ! depository in/itution1 at ! frequ5cy o!rwise requir$ by law1 v]ify ! composition ( ! assets & ! accuracy ( ! summ>y descriptions made "u ?is subsection & reports "u subsection 7d74 ,depository in/itutions %all cle>ly disclose to cu/om]s t a paym5t /ableco9 is n gu>ante$ by ! ,unit$ ,/ates ,gov]nm5t or subject to deposit insurance by ! ,f$]al ,deposit ,insurance ,corporation or by %>e insurance ( ! ,national ,cr$it ,union ,adm9i/ration4 ,misrepres5tation t a paym5t /ableco9 is gu>ante$ by ! ,unit$ ,/ates ,gov]nm5t or subject to deposit or %>e insurance %all be a violation ( section #ah7;a77#d7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbh7;a77#d77 or section #gji ( title #ah1 ,unit$ ,/ates ,code1 z applicable4 7e7 ,call report ,z applicable1 ! appropriate ,f$]al bank+ ag5cy or ,/ate bank sup]visor %all require a depository in/itution t issues a paym5t /ableco9 to report1 9 detail1 on ! composition ( ! assets & liabilities 9 ea* p]iodic report ( condition1 or 9 an alt]native =mat approv$ by ! ,f$]al ,f9ancial ,in/itutions ,exam9ation ,c\ncil1 at ! frequ5cy o!rwise requir$ by law4 7f7 ,p]mission ,a depository in/itution %all1 z applicable1 obta9 p]mission f ! appropriate ,f$]al bank+ ag5cy & ,/ate bank sup]visor1 ) an application submitt$ n less ?an #f mon?s be=e int5d$ issuance ( ! paym5t /ableco91 b :i* may be submitt$ z "p ( a *>t] application4 ,a depository in/itution "u subsection 7n77#a77;,b7 *>t]$ by ! ,(fice ( ! ,comptroll] ( ! ,curr5cy or a ,/ate bank sup]visor1 consi/5t ) ! /&>ds ( ?is section1 %all1 ^u approval by ! *>t]+ au?ority1 become a memb] bank ( ! ,f$]al ,res]ve ,sy/em1 & be subject to sup]vision by ! appropriate ,f$]al ,res]ve bank4 ,z "p ( an application "u ?is section1 a depository in/itution %all develop a tailor$ recov]y & resolution plan1 consi/5t ) ! /&>ds adopt$ "u subsection 7k77#a77;,f71 t w\ld p]mit ! ord]ly resumption ( a safe & s\nd op]ation or ! ord]ly w9d-d[n ( op]ations 9 ! ev5t ( di/ress1 includ+ ! r$emption ( all out/&+ paym5t /ableco9s4 ,! application %all also conta9 a draft cu/om] agreem5t1 fl[ ( funds explanation1 a robu/ in=mation te*nology plan & op]ational design ( ! paym5t /ableco94 ,z applicable1 ! appropriate ,f$]al bank+ ag5cy or ,/ate bank sup]visor %all r5d] a writt5 decision1 ) appropriate f9d+s1 on ! application )9 #d mon?s ( ! date ( fil+1 & %all approve ! application unless-- 7#a7 ! paym5t /ableco9 activities are n likely to be able to op]ate 9 a safe & s\nd mann]2 7#b7 ! depository in/itution does n h ! requir$ res\rces & exp]tise to manage ! op]ation ( ! paym5t /ableco91 comm5surate ) ! size & scale ( project$ op]ations2 or 7#c7 ! depository in/itution does n h requir$ policies & proc$ures relat+ to mat]ial areas ( ! op]ation ( ! paym5t /ableco9 activities4 7g7 ,r$emption ( paym5t /ableco9s ,^u ! dem& ( a cu/om]1 a depository in/itution %all r$eem an out/&+ paym5t /ableco9 at p> 9 ! co9s1 curr5cy1 or o!r in/rum5ts t are legal t5d]1 z def9$ 9 section #eajc ( title #ca1 ,unit$ ,/ates ,code1 or ! simil> laws ( ! jurisdiction ( ! unit ( acc\nt 9 :i* ! paym5t /ableco9 is d5om9at$ or to :i* ! value ( ! paym5t /ableco9 is pegg$4 ,a depository in/itution may r$eem a paym5t /ableco9 issu$ by ano!r depository in/itution at p>1 ^u dem&4 ,! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 ?r\gh ! ,f$]al ,res]ve banks1 %all provide = ! cle>+ & settlem5t ( paym5t /ableco9 liabilities among depository in/itutions "u ?is section & %all ensure competitive equality 9 all cle>+1 settlem5t & relat$ s]vices4 7h7 ,collat]al availability 9 ! capital m>kets ,! appropriate ,f$]al bank+ ag5cies1 9 consultation ) ,/ate bank sup]visors1 ! ,securities & ,ex*ange ,commission1 & ,commodity ,futures ,trad+ ,commission1 %all monitor use ( ! high-quality liquid assets au?oriz$ "u subsection 7b7 & ! impact on collat]al availability & ! effici5t function+ ( ! capital m>kets4 7i7 ,receiv]%ip priority ,9 ! ev5t ( ! receiv]%ip ( a depository in/itution t has issu$ a paym5t /ableco9 "u ?is section1 a p]son t has a valid claim on a paym5t /ableco9 issu$ by t in/itution %all h priority ov] all o!r claims on ! in/itution ) respect to any requir$ paym5t /ableco9 assets1 includ+ claims ) respect to insur$ deposits1 o!r ?an adm9i/rative co/s incurr$ by ! appropriate ,f$]al bank+ ag5cy & ,/ate bank sup]visor1 z applicable1 relat+ to ! receiv]%ip ( ! in/itution1 if applicable4 ,consi/5t ) subsection 7f71 a depository in/itution t r$eems a paym5t /ableco9 issu$ by a depository in/itution 9 receiv]%ip %all be consid]$ to h a valid claim1 ) correspond+ priority "u ?is subsection1 on a paym5t /ableco9 issu$ by ! in/itution 9 receiv]%ip4 7j7 ,incid5tal activities ,a depository in/itution may conduct all incid5tal activities relat+ to ! issuance & r$emption ( paym5t /ableco9s1 :i* %all include ! foll[+3 7#a7 ,managem5t ( requir$ paym5t /ableco9 assets 9 accordance ) subsection 7b74 7#b7 ,cu/odial s]vices4 7#c7 ,settlem5t & cle>+4 7#d7 ,po/-trade s]vices4 7#e7 ,all o!r activities consi/5t ) a safe & s\nd op]ation1 z det]m9$ by ! appropriate ,f$]al bank+ ag5cy or ,/ate bank sup]visor4 7k7 ,applicability ( data privacy provisions ,title ,v ( ?is ,act %all apply to ! paym5t /ableco9 activities ( a depository in/itution "u ?is section4 7l7 ,rules 7#a7 ,9 g5]al ,! appropriate ,f$]al bank+ ag5cies1 9 consultation ) ,/ate bank sup]visors1 %all adopt rules to implem5t ?is section1 includ+-- 7,a7 capital treatm5t = depository in/itutions describ$ 9 subsection 7n77#a7 9 accordance ) p>agraph 7#b72 7,b7 liquidity1 lev]age1 & int]e/ rate risk2 7,c7 ?ird-p>ty s]vice provid] activities-- 7i7 includ+ cu/odial wallet provid]s2 & 7ii7 n includ+ lic5s+ or capital requirem5ts = ?ird-p>ty s]vice provid]s2 7,d7 managem5t practices ) respect to requir$ paym5t /ableco9 assets2 7,e7 appropriate op]ational1 compliance1 & in=mation te*nology risk managem5t2 7,f7 tailor$ recov]y & resolution /&>ds relat+ to paym5t /ableco9s2 & 7,g7 any o!r mat]ial topic4 7#b7 ,significant diff]5ces ,9 accordance ) section #eafi7;c77#c77;,a7 ( ! ,revis$ ,/atutes1 9 det]m9+ capital & lev]age requirem5ts applicable to a depository in/itution t has no mat]ial assets o!r ?an requir$ paym5t /ableco9 assets "u ?is section-- 7,a7 ! depository in/itution %all n be subject to section #aga ( ! ,f9ancial ,/ability ,act ( #bjaj 7#ab ,u4,s4,c4 #ecga72 & 7,b7 ! appropriate ,f$]al bank+ ag5cies %all take into acc\nt ! significant diff]5ces betwe5 ! risks ( ! assets ( ! in/itution & ^? ( depository in/itutions ) assets t consi/ prim>ily ( comm]cial or consum] loans4 7m7 ,rule ( con/ruction ,no?+ 9 ?is section may be con/ru$ z-- 7#a7 prev5t+ a ,/ate bank sup]visor f impos+ additional or m /rict regulatory /&>ds on a bank p]mitt$ to issue paym5t /ableco9s2 7#b7 sup]s$+ any requirem5t ( ,/ate law relat+ to money transmitt+ bus9esses op]at+ 9 t ,/ate1 o!r ?an = paym5t /ableco9 issu]s "u ?is section2 or 7#c7 limit+ ! au?ority ( an insur$ depository in/itution to engage 9 activities p]missible pursuant to applicable ,/ate & ,f$]al law1 includ+ accept+ or receiv+ deposits repres5t$ on a di/ribut$ l$g] or any simil> analogue4 7n7 ,def9itions ,9 ?is section3 7#a7 ,depository in/itution ,! t]m depository in/itution has ! mean+ giv5 ! t]m 9 section #ai7;b77#a7 ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #dfa7;b77#a77 & includes-- 7,a7 an insur$ depository in/itution2 or 7,b7 a depository in/itution op]at+ "u subsection 7c7 ( section #eafi ( ! ,revis$ ,/atutes 7#ab ,u4,s4,c4 #bg71 or a sub/antially simil> ,/ate law1 :i* is exclusively engag$ 9 issu+ paym5t /ableco9s1 provid+ safekeep+1 tru/ or cu/odial s]vices1 or activities incid5tal to ! =ego+4 7#b7 ,paym5t /ableco9 ,! t]m paym5t /ableco9 has ! mean+ giv5 ! t]m 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code4 7#c7 ,segregat$ balance acc\nt ,! t]m segregat$ balance acc\nt includes an acc\nt ( a depository in/itution ) a ,f$]al ,res]ve bank or a =eign c5tral bank to :i* only requir$ paym5t /ableco9 assets are cr$it$4 4 #gjb4 ,treatm5t ( endog5\sly ref]5c$ crypto assets 7a7 ,def9ition ,z us$ 9 ?is section1 endog5\sly ref]5c$ crypto asset means a crypto asset t-- 7#a7 its orig9ator has repres5t$ w be conv]t$1 r$eem$1 or repur*as$ = a fix$ am\nt ( monet>y value1 or a me*anism exi/s or is provid$ to a*ieve any ( ! prec$+2 & 7#b7 "o ( ! foll[+3 7,a7 ,! crypto asset relies solely on ! value ( ano!r crypto asset to ma9ta9 ! fix$ am\nt ( monet>y value4 7,b7 ,! crypto asset relies on algori?mic means to ma9ta9 ! fix$ am\nt ( monet>y value4 7,c7 ,a comb9ation ( subp>agraphs 7,a7 & 7,b74 7b7 ,legal classification ,endog5\sly ref]5c$ crypto assets are hybrid in/rum5ts1 z def9$ 9 section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a74 7c7 ,prohibition on use ( t]m /ableco9 ,endog5\sly ref]5c$ crypto assets %all n use ! t]m paym5t /ableco9 or /ableco9 9 adv]tis+ or m>ket+ mat]ials4 #gjc4 ,c]tificate ( au?ority to comm5ce bank+ ,section #eafi ( ! ,revis$ ,/atutes 7#ab ,u4,s4,c4 #bg7 is am5d$-- 7#a7 9 subsection 7a71 9 ! ?ird s5t5ce1 by /rik+ to ^? ( a tru/ company & activities relat$ !reto4 & ins]t+ ! foll[+3 to-- 7#a7 ^? ( a tru/ company & fiduci>y activities relat$ !reto2 or 7#b7 ^? ( a depository in/itution requir$ to ma9ta9 assets valu$ at n less ?an #ajj p]c5t ( ! deposits ( ! in/itution1 = ! purposes ( issu+ a paym5t /ableco9 7z def9$ 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code7 & activities relat$ !reto consi/5t ) subsection 7c7 ( ?is section & )\t ! requirem5t to ma9ta9 deposit insurance "u ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaa et seq474 2 & 7#b7 by add+ at ! end ! foll[+3 7c7 7#a7 ,not)/&+ any o!r provision ( law1 a ,national ,bank ,association describ$ 9 subsection 7a7 may n engage 9 maturity trans=mation or facilitate consum] l5d+ ?r\gh ?ird p>ties4 7#b7 ,re/rictions on affiliate transactions applicable = insur$ depository in/itutions %all apply to su* depository in/itutions4 7#c7 ,! ,comptroll] ( ! ,curr5cy1 9 close consultation ) ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em & ,/ate bank sup]visors1 %all develop ! foll[+3 7,a7 ,a simplifi$ capital framework bas$ on ! foll[+3 7i7 ,paym5t sy/em risk4 7ii7 ,! great] (-- 7,i7 all project$ co/s ( receiv]%ip2 or 7,,ii7 #c ye>s ( project$ op]at+ exp5ses4 7,b7 ,appropriate /&>ds = ! depository in/itution to develop a community contribution plan1 :i* may include consum] education1 f9ancial lit]acy1 *>itable donations1 volunte]ism1 job tra9+ & int]n%ips or simil> involvem5t4 7,c7 ,a tailor$ recov]y & resolution plan t w\ld p]mit ! ord]ly resumption ( a safe & s\nd op]ation or ! ord]ly w9d-d[n ( op]ations relat+ to a paym5t /ableco9 9 ! ev5t ( di/ress4 7,d7 ,tailor$ hold+ company sup]vision1 z specifi$ by section #ae ( ! ,bank ,hold+ ,company ,act ( #aief4 7#d7 ,9 design+ ! simplifi$ capital framework requir$ by p>agraph 7#c77;,a71 ! ,comptroll] ( ! ,curr5cy-- 7,a7 %all n subject depository in/itutions to ! /&>ds ( section #aga ( ! ,f9ancial ,/ability ,act ( #bjaj 7#ab ,u4,s4,c4 #ecga72 & 7,b7 %all take into acc\nt ! significant diff]5ces betwe5 ! risks ( ! assets ( ! in/itution & ^? ( depository in/itutions ) assets t consi/ prim>ily ( comm]cial or consum] loans4 7d7 ,! ,comptroll] ( ! ,curr5cy may promulgate rules to c>ry out ?is section4 4 #gjd4 ,hold+ company sup]vision ( cov]$ depository in/itutions ,! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahda et seq47 is am5d$-- 7#a7 9 section #b7;c7 7#ab ,u4,s4,c4 #ahda7;c771 by /rik+ p>agraph 7#b7 & by ins]t+ ! foll[+3 7#b7 ,exceptions ,! t]m bank does n include a cov]$ depository in/itution subject to tailor$ hold+ company sup]vision "u section #ae4 2 & 7#b7 by add+ at ! end ! foll[+3 #ae4 ,hold+ company sup]vision = c]ta9 depository in/itutions 7a7 ,def9itions ,9 ?is section3 7#a7 ,appropriate bank+ sup]visor ,! t]m appropriate bank+ sup]visor means ! ,comptroll] ( ! ,curr5cy1 a ,/ate bank sup]visor1 9 ! case ( a ,/ate memb] bank1 ! ,bo>d1 or 9 ! case ( an insur$ bank1 ! ,f$]al ,deposit ,insurance ,corporation1 z applicable4 7#b7 ,controll+ int]e/ ,! t]m controll+ int]e/ means a circum/ance :5 a p]son1 directly or indirectly1 or act+ ?r\gh or 9 conc]t ) #a or m p]sons-- 7,a7 owns1 controls1 or has ! p[] to vote #be p]c5t or m ( any class ( vot+ securities ( a cov]$ depository in/itution2 7,b7 controls 9 any mann] ! election ( a majority ( ! directors ( ! cov]$ depository in/itution2 or 7,c7 has ! p[] to ex]cise a controll+ influ5ce ov] ! managem5t or policies ( ! cov]$ depository in/itution4 7#c7 ,cov]$ depository in/itution ,! t]m cov]$ depository in/itution means a depository in/itution op]at+ "u subsection 7c7 ( section #eafi ( ! ,revis$ ,/atutes 7#ab ,u4,s4,c4 #bg71 or a sub/antially simil> ,/ate law1 o!r ?an a bank1 z def9$ 9 section #b ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahda71 or an insur$ depository in/itution1 z def9$ 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac71 :i* is exclusively engag$ 9 issu+ paym5t /ableco9s1 provid+ safekeep+1 tru/ or cu/odial s]vices1 or activities incid5tal to ! =ego+4 7b7 ,controll+ int]e/ ,a p]son ) a controll+ int]e/ 9 a cov]$ depository in/itution %all-- 7#a7 submit annual audit$ f9ancial /atem5ts & o!r in=mation z o!rwise reasonably requir$ by ! appropriate bank+ sup]visor2 & 7#b7 provide a description ( all affiliat$ or p>5t entities & _! relation%ips ) ! in/itution1 includ+ annual updates4 7c7 ,tax allocation agreem5t ,! appropriate bank+ sup]visor may require a legal entity ) a controll+ int]e/ 9 a cov]$ depository in/itution to execute a tax allocation agreem5t ) ! in/itution t-- 7#a7 expressly /ates t an ag5cy relation%ip exi/s betwe5 ! p]son & ! in/itution ) respect to tax assets g5]at$ by ! in/itution1 & t ! assets are held 9 tru/ by ! p]son = ! b5efit ( ! in/itution & w be promptly remitt$ to ! in/itution2 & 7#b7 may provide t ! am\nt & tim+ ( any paym5ts or refunds to ! in/itution by ! p]son %\ld be no less favorable ?an if ! in/itution 7 a sep>ate taxpay]4 7d7 ,prohibition on controll+ int]e/s ,a p]son t is a comm]cial firm1 z def9$ 9 section #fjb ( ! ,bank & ,sav+s ,association ,hold+ ,company & ,depository ,in/itution ,regulatory ,improvem5ts ,act ( #bjaj 7#ab ,u4,s4,c4 #ahae note71 %all n obta9 a controll+ int]e/ 9 a cov]$ depository in/itution4 7e7 ,public int]e/ ,if ! appropriate bank+ sup]visor f9ds t x is 9 ! public int]e/ & has reasonable cause to believe x is necess>y to protect ! cu/om]s ( a cov]$ depository in/itution1 ! sup]visor may-- 7#a7 conduct an exam9ation ( a legal entity ) a controll+ int]e/ 9 a cov]$ depository in/itution or o!rwise require in=mation f ! p]son2 & 7#b7 require a p]son ) a controll+ int]e/ 9 a cov]$ depository in/itution to dive/ or sev] _! relation%ip ) ! in/itution1 if necess>y to ma9ta9 safety & s\ndness4 4 #gje4 ,codify+ cu/odial pr9ciples = f9ancial in/itutions 7a7 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,! laws surr\nd+ cu/ody ( f9ancial assets is l>gely cu/om>y1 uncodifi$1 & poorly und]/ood4 7#b7 ,lack ( uni=mity among/ v>i\s jurisdictions' laws relat+ to cu/ody has l>gely n be5 address$ by regulators1 c contribute to risk1 & is produc+ unc]ta9ty = innovators4 7#c7 ,codify+ basic pr9ciples ar\nd cu/ody ( f9ancial assets w r$uce sy/emic risk1 cle>ly def9e ! rights & duties ( bo? cu/odian & cu/om]1 & contribute to a m uni=m & effective bank+ sy/em4 7b7 ,def9ition ,9 ?is section1 ! t]m cu/ody means ! safekeep+1 s]vic+ & managem5t ( cu/om] f9ancial assets1 includ+ curr5cy1 securities & commodities1 on an (f-balance %eet basis4 7c7 ,cu/ody 7#a7 ,9 g5]al ,except z provid$ 9 p>agraph 7#b71 cu/ody ( f9ancial assets is accompli%$ by a bailm5t & e/abli%$ by a writt5 cu/om] agreem5t4 ,cu/ody %all n be a fiduci>y or tru/ activity unless ! cu/odian is provid+ sub/antial discretion>y s]vices ) respect to an acc\nt1 includ+ ?r\gh inve/m5t advice or inve/m5t discretion1 & ! cu/odian owes a cu/om] a high] /&>d ( c>e or duty ) respect to ! cu/om] ( t acc\nt4 7#b7 ,exception ,a cu/odian & cu/om] may e/abli% a legal relation%ip o!r ?an a bailm5t pursuant to a writt5 cu/om] agreem5t4 7d7 ,prop] docum5tation ,a cu/odial acc\nt %all be prop]ly docum5t$ 9 a cu/om] agreem5t1 ) a cle>ly def9$ legal relation%ip betwe5 ! cu/odian & cu/om]4 ,cu/odial assets %all be prop]ly id5tifi$ & segregat$ f ! assets ( ! cu/odian1 ) prop] docum5tation ( asset segregation4 7e7 ,n assets or liabilities ,assets prop]ly held 9 a cu/odial acc\nt "u ?is section are n assets or liabilities ( ! cu/odian & %all be ma9ta9$ on an (f-balance %eet basis1 includ+ = ! purpose ( acc\nt+ treatm5t = ! cu/odian1 not)/&+ ! =m 9 :i* ! assets are ma9ta9$4 7f7 ,applicability ,?is section %all apply to all depository in/itutions1 z def9$ 9 section #ai7;b77#a7 ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #dfa7;b77#a771 & non-depository tru/ companies *>t]$ "u section #eafi ( ! ,revis$ ,/atutes 7#ab ,u4,s4,c4 #bg74 #gjf4 ,implem5tation rules to pres]ve adequate competition 9 paym5t /ableco9s 7a7 ,9 g5]al ,! application ( a non-depository tru/ company or ! hold] ( a ,/ate lic5se t only p]sons engag$ 9 crypto asset activities may obta91 :i* 0 *>t]$ or issu$ "u ! laws ( a ,/ate or ! ,national ,bank ,act be=e ! date ( enactm5t ( ?is ,act1 to receive a *>t] z a depository in/itution & to op]ate "u subsection 7c7 ( section #eafi ( ! ,revis$ ,/atutes 7#ab ,u4,s4,c4 #bg71 z add$ by section #gjc ( ?is ,act1 %all be decid$ ^u by ! ,comptroll] ( ! ,curr5cy be=e an application = a *>t] to op]ate "u t section f ano!r entity t is fil$ on or aft] ! date ( enactm5t ( ?is ,act4 7b7 ,application ,! application ( a cov]$ depository in/itution1 z def9$ 9 section #ae7;a7 ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahec7;a771 *>t]$ be=e ! date ( enactm5t ( ?is ,act to become a ,/ate memb] bank 9 ! ,f$]al ,res]ve ,sy/em or = access to ,f$]al ,res]ve s]vices "u section #aa;,a ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #bdh;a7 %all be decid$ ^u by ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 or a ,f$]al ,res]ve bank1 z applicable1 be=e any application to become a ,/ate memb] bank or = ,f$]al ,res]ve s]vices f any o!r entity :i* seeks to op]ate z a cov]$ depository in/itution & :i* is fil$ on or aft] ! date ( enactm5t ( ?is ,act4 7c7 ,decision ,! applications describ$ 9 subsections 7a7 & 7b7 ( ?is section %all be decid$ ^u by ! appropriate ,f$]al bank+ ag5cy 7z def9$ 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac77 or ,f$]al ,res]ve bank1 z applicable1 be=e an insur$ depository in/itution 9 op]ation be=e ! enactm5t date ( ?is ,act may issue a paym5t /ableco9 9 accordance ) section #gbb;,a ( ! ,gramm-,lea*-,bliley ,act1 z add$ by section #fja ( ?is ,act4 #gjg4 ,/udy on use ( di/ribut$ l$g] te*nology = r$uction ( risk 9 depository in/itutions ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is ,act1 ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em %all complete a /udy & submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives a report reg>d+ ! mann] 9 :i* di/ribut$ l$g] te*nology may r$uce risk = depository in/itutions1 z def9$ 9 section #ai7;b77#a7 ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #dfa7;b77#a771 includ+ settlem5t risk1 op]ational risk & capital requirem5ts4 #gjh4 ,cl>ify+ application review times ) respect to ! ,f$]al bank+ ag5cies ,section #cdc ( ! ,riegle ,community ,developm5t & ,regulatory ,improvem5t ,act ( #aiid 7#ab ,u4,s4,c4 #dhjg7 is am5d$ by /rik+ subsections 7a7 & 7b7 & ins]t+ ! foll[+3 7a7 ,f9al action 7#a7 ,def9ition ,9 ?is subsection1 ! t]m complet$ application-- 7,a7 means ! in=mation reque/$ by ! ,f$]al bank+ ag5cy at ! outset ( an application ?r\gh application =ms or simil> means2 & 7,b7 does n include supplem5tal in=mation reque/$ by ! ag5cy aft] fil+ ( an application4 7#b7 ,action ,ea* ,f$]al bank+ ag5cy1 includ+ ,f$]al ,res]ve banks1 %all take f9al action on any application to ! ag5cy be=e ! end ( ! #a-ye> p]iod beg9n+ on ! date on :i* a complet$ application is receiv$ by ! ag5cy4 7b7 ,report ,ea* ,f$]al bank+ ag5cy1 includ+ ! ,f$]al ,res]ve banks1 %all annually report to ,congress a li/ ( ! applications t h be5 p5d+ = #ab mon?s or long] s9ce ! date ( ! initial application fil$ by an applicant1 & ! date on :i* a complet$ application 0 receiv$4 ,su* li/-- 7#a7 %all disclose ! reason :y ! application has n yet be5 approv$ or d5i$ by ! ,f$]al bank+ ag5cy2 & 7#b7 %all n conta9 confid5tial sup]visory in=mation4 7c7 ,waiv] by applicant au?oriz$ ,any p]son submitt+ an application to a ,f$]al bank+ ag5cy may waive ! applicability ( subsection 7a7 ) respect to su* application at any "t4 4 #gji4 ,con=m+ am5dm5ts 7a7 ,f$]al deposit insurance act ,section #ab ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbb7 is am5d$ by add+ at ! end ! foll[+3 7g7 ,appo9tm5t ( receiv] 7#a7 ,def9ition ,9 ?is subsection1 ! t]m cov]$ depository in/itution has ! mean+ giv5 ! t]m 9 section #ae7;a7 ( ! ,bank ,hold+ ,company ,act ( #aief4 7#b7 ,appo9tm5t ,! ,corporation may be appo9t$ z receiv] ( a cov]$ depository in/itution1 z def9$ 9 section #ae7;a7 ( ! ,bank ,hold+ ,company ,act ( #aief4 7#c7 ,premiums ,a cov]$ depository in/itution may n be *>g$ deposit insurance premiums = ! purpose ( ?is subsection1 b ! ,corporation may use ! capital ( ! cov]$ depository in/itution to fund ! co/s ( ! receiv]%ip4 7#d7 ,rules ,! ,corporation may promulgate rules to c>ry out ?is subsection1 :i* %all-- 7,a7 be sub/antially consi/5t ) ! rules = receiv]%ip ( an insur$ depository in/itution2 & 7,b7 acc\nt = ! limit$ activities1 capital1 & ! requir$ tailor$ recov]y & resolution plan ( ! cov]$ depository in/itution4 4 7b7 ,f$]al ,res]ve ,act ,! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #bba et seq47 is am5d$-- 7#a7 9 section #ai7;b77#a77;,a7 7#ab ,u4,s4,c4 #dfa7;b77#a77;,a77-- 7,a7 9 clause 7vi71 by /rik+ & at ! end2 7,b7 9 clause 7vii71 by /rik+ ! p]iod at ! end & ins]t+ 2 &2 & 7,c7 by add+ at ! end ! foll[+3 7viii7 a cov]$ depository in/itution1 z def9$ 9 section #ae7;a7 ( ! ,bank ,hold+ ,company ,act ( #aief4 2 & 7#b7 9 ! fir/ undesignat$ p>agraph ( section #i 7#ab ,u4,s4,c4 #cba71 9 ! fir/ s5t5ce1 by ins]t+ 1 cov]$ depository in/itutions1 z def9$ 9 section #ae7;a7 ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahec7;a771 aft] ,plan banks4 ,,viii ,responsible taxation ( crypto assets #hja4 ,de m9imis ga9 f sale or ex*ange ( crypto assets 7a7 ,9 g5]al ,"p ,,iii ( sub*apt] ,b ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #aci;,i ! foll[+ new section3 #aci;,j4 ,de m9imis ga9 f sale or ex*ange ( crypto assets 7a7 ,9 g5]al ,subject to subsection 7b71 gross income %all n include ga9 f ! sale or ex*ange ( any crypto asset 7z def9$ 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code71 unless ! sale or ex*ange is =-- 7#a7 ca% or ca% equival5ts1 7#b7 any prop]ty us$ by ! taxpay] 9 ! active conduct ( a trade or bus9ess1 or 7#c7 any prop]ty held by ! taxpay] = ! production ( income 7z describ$ 9 section #bab7b774 7b7 ,limitation 7#a7 ,9 g5]al ,subsection 7a7 %all n apply 9 ! case ( any sale or ex*ange = :i*-- 7,a7 ! total value ( su* sale or ex*ange exce$s #bjj1 or 7,b7 ! total ga9 :i* w\ld o!rwise be recogniz$ ) respect to su* sale or ex*ange exce$s #bjj4 7#b7 ,aggregation rule ,= purposes ( ?is subsection1 all sales or ex*anges :i* are "p ( ! same transaction 7or a s]ies ( relat$ transactions7 %all be treat$ z "o sale or ex*ange4 7c7 ,inflation adju/m5t ,9 ! case ( any taxable ye> beg9n+ 9 a cal5d> ye> aft] #bjbd1 ea* doll> am\nt 9 subsection 7b77#a7 %all be increas$ by an am\nt equal to-- 7#a7 su* doll> am\nt1 multipli$ by 7#b7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 det]m9$ by sub/itut+ cal5d> ye> #bjbc = cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 !re(4 ,any increase det]m9$ "u ! prec$+ s5t5ce %all be r\nd$ to ! ne>e/ multiple ( #aj4 4 7b7 ,cl]ical am5dm5t ,! table ( sections = "p ,,iii ( sub*apt] ,b ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] ! item relat+ to section #aci;,i ! foll[+ new item3 ,sec4 #aci;,j4 ,de m9imis ga9 f sale or ex*ange ( crypto assets4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbd4 #hjb4 ,in=mation report+ requirem5ts impos$ on brok]s ) respect to crypto assets 7a7 ,cl>ification ( def9ition ( brok] 7#a7 ,9 g5]al ,section #fjde7;c77#a77;,d7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7,d7 any p]son :o 7= consid]ation7 /&s ready 9 ! ord9>y c\rse ( a trade or bus9ess to effect sales ( crypto assets at ! direction ( _! cu/om]s4 4 7#b7 ,effective date ,! am5dm5t made by ?is subsection %all apply to returns requir$ to be fil$ & /atem5ts requir$ to be furni%$ aft] ,decemb] #ca1 #bjbe4 7b7 ,report+ ( crypto assets 7#a7 ,applicable date ,section #fjde7;g77#c7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7,a7 9 subp>agraph 7,b77iv71 by /rik+ digital asset & ins]t+ crypto asset1 7,b7 9 subp>agraph 7,c71 by /rik+ clause 7iii7 & ins]t+ ! foll[+3 7iii7 ,janu>y #a1 #bjbe1 9 ! case ( any specifi$ security :i* is a crypto asset1 & 1 & 7,c7 by /rik+ subp>agraph 7,d7 & ins]t+ ! foll[+3 7,d7 ,crypto asset ,! t]m crypto asset has ! mean+ giv5 su* t]m 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code4 4 7#b7 ,furni%+ ( in=mation ,section #fjde;,a7d7 ( su* ,code is am5d$ to read z foll[s3 7d7 ,return requirem5t = c]ta9 transf]s ( crypto assets n o!rwise subject to report+ ,any brok]1 ) respect to any transf] 7:i* is n "p ( a sale or ex*ange execut$ by su* brok]7 dur+ a cal5d> ye> ( a cov]$ security :i* is a crypto asset 7z def9$ 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code7 f an acc\nt :olly controll$ & ma9ta9$ by su* brok] to an acc\nt :i* is n ma9ta9$ by1 or an address n associat$ )1 a p]son t su* brok] kn[s or has reason to "k is also a brok]1 %all make a return = su* cal5d> ye>1 9 su* =m z det]m9$ by ! ,secret>y1 %[+ ! in=mation o!rwise requir$ to be furni%$ ) respect to transf]s subject to subsection 7a74 ,in=mation report$ by brok]s "u ?is section %all be limit$ to cu/om] in=mation t is volunt>ily provid$ by ! cu/om] & held by ! brok] = a legitimate bus9ess purpose4 4 7#c7 ,delay$ effective date = c]ta9 in=mation report+ *anges2 rev]sal ( c]ta9 additions to #fjej;,i 7,a7 ,9 g5]al ,section #fjej;,i7d7 ( su* ,code is am5d$-- 7i7 9 p>agraph 7#a71 by add+ & at ! end1 7ii7 9 p>agraph 7#b71 by /rik+ 1 & & ins]t+ a p]iod1 & 7iii7 by /rik+ p>agraph 7#c74 7,b7 ,delay$ effective date ,section #hjfjc7;c7 ( ! ,infra/ructure ,inve/m5t & ,jobs ,act is am5d$ by /rik+ ,decemb] #ca1 #bjbc & ins]t+ ,decemb] #ca1 #bjbe4 7#d7 ,effective dates 7,a7 ,! am5dm5ts made by p>agraphs 7#a7 & 7#b7 %all apply to returns requir$ to be fil$ & /atem5ts requir$ to be furni%$ aft] ,decemb] #ca1 #bjbe4 7,b7 ,! am5dm5ts made by p>agraph 7#c7 %all take effect z if includ$ 9 ! enactm5t ( section #hjfjc ( ! ,infra/ructure ,inve/m5t & ,jobs ,act4 #hjc4 ,s\rces ( income 7a7 ,9 g5]al ,p>agraph 7#b7 ( section #hfd7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by r$esignat+ subp>agraph 7,c7 z subp>agraph 7,d7 & by ins]t+ aft] subp>agraph 7,b7 ! foll[+ new subp>agraph3 7,c7 ,crypto assets 7i7 ,9 g5]al ,trad+ 9 crypto assets ?r\gh a resid5t brok]1 commission ag5t1 cu/odian1 crypto asset ex*ange1 or o!r indep5d5t ag5t4 7ii7 ,trad+ = taxpay]'s own acc\nt ,trad+ 9 crypto assets = ! taxpay]'s own acc\nt1 :e!r by ! taxpay] or ! taxpay]'s employees or ?r\gh a resid5t brok]1 commission ag5t1 cu/odian1 crypto asset ex*ange1 or o!r ag5t1 & :e!r or n any su* employee or ag5t has discretion>y au?ority to make decisions 9 effect+ ! transactions4 ,?is clause %all n apply 9 ! case ( a deal] 9 crypto assets4 7iii7 ,def9itions ,= purposes ( ?is subp>agraph-- 7,i7 ,crypto asset ex*ange ,! t]m crypto asset ex*ange means a c5traliz$ or dec5traliz$ plat=m :i* facilitates ! transf] ( crypto assets4 7,,ii7 ,crypto asset ,! t]m crypto asset has ! mean+ giv5 su* t]m 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code4 7iv7 ,limitation ,?is subp>agraph %all apply only if ! crypto assets are ( a k9d cu/om>ily dealt 9 on a crypto asset ex*ange & if ! transaction is ( a k9d cu/om>ily consummat$ at su* ex*ange4 4 7b7 ,con=m+ am5dm5t ,subp>agraph 7,d7 ( section #hfd7;b77#b7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z r$esignat$ by subsection 7a71 is am5d$ by /rik+ 7,a77i7 & 7,b77i7 & ins]t+ 7,a77i71 7,b77i71 & 7,c77i74 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( enactm5t ( ?is ,act4 #hjd4 ,tax treatm5t ( crypto asset l5d+ agreem5ts & relat$ matt]s 7a7 ,9 g5]al ,subsection 7a7 ( section #ajeh ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ 7z def9$ 9 section #abcf7;c774 7b7 ,fix$ t]m ,p>agraph 7#a7 ( subsection 7b7 ( section #ajeh ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ 1 includ+ a fix$-t]m transf] t occurs 9 ! ord9>y c\rse ( a securities l5d+ or inve/m5t managem5t bus9ess aft] transf]r$4 7c7 ,basis ,subsection 7c7 ( section #ajeh ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+3 ,all appropriate basis adju/m5ts to an agreem5t "u subsection 7b7 %all be made1 z det]m9$ by ! ,secret>y1 includ+ ^u ! return ( ! l5t securities to ! taxpay]44 7d7 ,securities ,section #ajeh ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsections3 7d7 ,securities ,= purposes ( ?is section1 ! t]m securities has ! mean+ giv5 su* t]m by section #abcf7;c71 except t su* t]m includes any crypto asset 7z def9$ 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code7 &1 ) respect to a crypto asset1 does n require a call option4 7e7 ,income ,an am\nt equal to ! income :i* w\ld o!rwise accrue to ! l5d] b = a l5d+ transaction "u ?is section %all be includ$ 9 ! gross income ( ! l5d]4 4 7e7 ,rule ( con/ruction ,no?+ 9 ?is section1 or any am5dm5ts made by ?is section1 %all be con/ru$ to create any inf]5ce ) respect to ! classification ( any crypto asset z a security "u ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;a et seq47 or ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq474 7f7 ,rulemak+ au?ority ,! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 may adopt rules to implem5t ! am5dm5ts made by ?is section1 includ+ ! application ( ! am5dm5ts made by ?is section to =ks1 airdrops1 & simil> subsidi>y value4 7g7 ,effective date ,! am5dm5ts made by ?is section %all apply to sales & ex*anges 9 taxable ye>s beg9n+ aft] ! date ( enactm5t ( ?is ,act4 #hje4 ,loss f wa% sales ( crypto assets 7a7 ,9 g5]al ,section #ajia ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 #ajia4 ,loss f wa% sales ( specifi$ assets 7a7 ,disall[ance ( loss d$uction 7#a7 ,9 g5]al ,no d$uction %all be all[$ ) respect to any loss claim$ to h be5 su/a9$ f any sale or o!r disposition 7includ+ any t]m9ation7 ( specifi$ assets :]e x appe>s t1 )9 a p]iod beg9n+ #cj days be=e ! date ( su* sale or o!r disposition & end+ #cj days aft] su* date1 ! taxpay] has-- 7,a7 acquir$ 7by pur*ase1 by an ex*ange on :i* ! entire am\nt ( ga9 or loss 0 recogniz$ by law1 or by ent]+ into7 sub/antially id5tical specifi$ assets1 or 7,b7 ent]$ into a contract or option to acquire1 or long notional pr9cipal contract 9 respect (1 sub/antially id5tical specifi$ assets4 7#b7 ,exception = deal]s ,p>agraph 7#a7 %all n apply if-- 7,a7 ! taxpay] is a deal] 9 specifi$ assets1 7,b7 ! loss is su/a9$ 9 a transaction made 9 ! ord9>y c\rse ( its bus9ess z a deal]1 & 7,c7 ! acquisition 7or ! ent]+ into ( ! contract or option to acquire or long notional pr9cipal contract7 :i* 7)\t reg>d to ?is p>agraph7 w\ld h result$ 9 ! non-d$uctibility ( ! loss 0 simil>ly made 9 ! ord9>y c\rse ( su* bus9ess4 7b7 ,specifi$ assets acquir$ less ?an specifi$ assets sold ,if ! am\nt ( specifi$ assets acquir$ 7or cov]$ by ! contract or option to acquire or long notional pr9cipal contract7 is less ?an ! am\nt ( specifi$ assets sold or o!rwise dispos$ (1 !n ! p>ticul> specifi$ assets ! loss f ! sale or o!r disposition ( :i* is n d$uctible %all be det]m9$ "u regulations prescrib$ by ! ,secret>y4 7c7 ,specifi$ assets acquir$ n less ?an specifi$ assets sold ,if ! am\nt ( specifi$ assets acquir$ 7or cov]$ by ! contract or option to acquire or long notional pr9cipal contract7 is n less ?an ! am\nt ( specifi$ assets sold or o!rwise dispos$ (1 !n ! p>ticul> specifi$ assets ! acquisition ( :i* 7or ! ent]+ into ( ! contract or option to acquire or long notional pr9cipal contract ( :i*7 result$ 9 ! non-d$uctibility ( ! loss %all be det]m9$ "u regulations prescrib$ by ! ,secret>y4 7d7 ,adju/m5t to basis 9 case ( wa% sale 7#a7 ,9 g5]al ,! basis ( ! specifi$ asset acquir$ 7or ! contract1 option1 or long notional pr9cipal contract ent]$ into7 %all be increas$ by ! am\nt ( ! d$uction disall[$ "u subsection 7a7 7r$uc$ by any am\nt ( su* d$uction tak5 into acc\nt "u ?is subsection to increase ! basis ( any specifi$ asset previ\sly acquir$ or any contract1 option1 or long notional pr9cipal contract previ\sly ent]$ into74 7#b7 ,rules ) respect to c]ta9 acquisitions 7,a7 ,9 g5]al ,9 any case 9 :i*-- 7i7 ! taxpay] ent]s into a contract or option to acquire1 or long notional pr9cipal contract 9 respect (1 sub/antially id5tical specifi$ assets 7)9 ! p]iod specifi$ 9 subsection 7a771 & 7ii7 ! taxpay] also acquires 7)9 ! p]iod specifi$ 9 subsection 7a77 sub/antially id5tical specifi$ assets & su* acquisition w\ld1 b = ! ent]+ into ( ! contract1 option1 or long notional pr9cipal contract describ$ 9 clause 7i71 h trigg]$ a disall[ance "u subsection 7a71 !n1 subject to su* exceptions z ! ,secret>y may prescribe1 p>agraph 7#a7 %all apply to ! sub/antially id5tical specifi$ assets describ$ 9 clause 7ii7 & n to ! contract1 option1 or long t]m pr9cipal contract describ$ 9 clause 7i74 7,b7 ,special rule = contracts & options ,subject to su* exceptions z ! ,secret>y may prescribe1 if ! acquisition ( any sub/antially id5tical specifi$ asset is pursuant to a contract or option describ$ 9 subp>agraph 7,a77i71 !n1 not)/&+ :e!r su* asset 0 acquir$ )9 ! p]iod specifi$ 9 subsection 7a71 p>agraph 7#a7 %all apply to ! sub/antially id5tical specifi$ asset acquir$ pursuant to ! contract or option & n to ! contract or option4 7e7 ,c]ta9 %ort sales ( specifi$ assets & contracts ,to sell ,rules simil> to ! rules ( subsection 7a7 %all apply to any loss realiz$ on ! clos+ ( a %ort sale ( 7or ! sale1 disposition1 or t]m9ation ( a contract or option to sell or a %ort notional pr9cipal contract 9 respect (7 specifi$ assets if1 )9 a p]iod beg9n+ #cj days be=e ! date ( su* clos+ & end+ #cj days aft] su* date1 ano!r su* %ort sale ( 7or contract or option to sell or %ort notional pr9cipal contract 9 respect (7 sub/antially id5tical specifi$ assets 0 ent]$ into by ! taxpay]4 7f7 ,ca% settlem5t ,?is section %all n fail to apply to a contract or option to acquire or sell specifi$ assets solely by reason ( ! fact t ! contract or option settles 9 7or c\ld be settl$ 97 ca% or prop]ty o!r ?an su* specifi$ assets4 7g7 ,specifi$ asset ,= purposes ( ?is section1 ! t]m specifi$ asset means any ( ! foll[+3 7#a7 ,any security 7z def9$ 9 section #dge7;c77#b774 7#b7 ,except z o!rwise provid$ by ! ,secret>y-- 7,a7 any crypto asset 7z def9$ 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code7 :i* is actively trad$ 7)9 ! mean+ ( section #ajib7;d77#a771 7,b7 any notional pr9cipal contract ) respect to any crypto asset describ$ 9 subp>agraph 7,a71 & 7,c7 any evid5ce ( an int]e/ 91 or a d]ivative in/rum5t 91 any crypto asset describ$ 9 subp>agraph 7,a7 or 7,b71 includ+ any option1 =w>d contract1 futures contract1 %ort position1 & any simil> in/rum5t 9 su* a crypto asset4 ,su* t]m %all1 except z provid$ 9 regulations1 include contracts or options to acquire or sell1 or notional pr9cipal contracts 9 respect (1 any specifi$ assets4 7h7 ,exception = bus9ess ne$s & h$g+ transactions 7#a7 ,9 g5]al ,except z provid$ 9 regulations prescrib$ by ! ,secret>y1 9 ! case ( a specifi$ asset to :i* ?is subsection applies1 subsection 7a7 %all n apply to ! ext5t t bo? ! sale or o!r disposition ( su* asset & ! acquisition ( 7or ! ent]+ into ( ! contract or option to acquire or long notional pr9cipal contract 9 respect (7 are-- 7,a7 directly relat$ to ! bus9ess ne$s ( a trade or bus9ess ( ! taxpay] 7o!r ?an ! trade or bus9ess ( trad+ specifi$ assets describ$ 9 subsection 7g77#b771 or 7,b7 "p ( a h$g+ transaction 7z def9$ 9 section #abba7;b77#b7 or #ihh7;d77#b774 7#b7 ,specifi$ asset to :i* ?is subsection applies ,to ! ext5t provid$ by ! ,secret>y1 ?is subsection applies to assets describ$ 9 subsection 7g77#b74 7i7 ,regulations ,! ,secret>y %all prescribe su* regulations or o!r guidance z may be necess>y to c>ry out ! purposes ( ?is section1 includ+ regulations or o!r guidance = det]m9+ :e!r specifi$ assets are sub/antially id5tical4 4 7b7 ,con=m+ am5dm5ts 7#a7 ,section #abbc7c7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7,a7 by /rik+ /ock or securities ! fir/ place x appe>s & ins]t+ specifi$ assets 7z def9$ 9 section #ajia7;g771 7,b7 by /rik+ /ock or securities ! second & ?ird place x appe>s & ins]t+ specifi$ assets 7z s def9$71 & 7,c7 by /rik+ 7or ! contract or option to acquire :i*7 & ins]t+ 7or ! ent]+ into ( a contract or option to acquire or long notional pr9cipal contract 9 respect ( :i*74 7#b7 ,section #fjde7;g77#b77;,b7 ( su* ,code is am5d$-- 7,a7 9 clause 7i77,i7-- 7i7 by /rik+ security 7o!r ?an /ock & ins]t+ cov]$ security 7o!r ?an /ock1 & 7ii7 by /rik+ /ock sold or transf]r$ & ins]t+ cov]$ security sold or transf]r$1 & 7,b7 9 clause 7ii7-- 7i7 by /rik+ /ock or securities & ins]t+ specifi$ assets1 & 7ii7 by /rik+ id5tical securities & ins]t+ id5tical specifi$ assets 7z def9$ 9 section #ajia7;g774 7#c7 ,! table ( sections = "p ,,vii ( sub*apt] ,o ( *apt] #a ( su* ,code is am5d$ by /rik+ ! item relat+ to section #ajia & ins]t+ ! foll[+ new item3 ,sec4 #ajia4 ,loss f wa% sales ( specifi$ assets4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to sales1 dispositions1 & t]m9ations 9 taxable ye>s beg9n+ aft] ! date ( enactm5t ( ?is ,act4 #hjf4 ,m>k-to-m>ket election 7a7 ,9 g5]al ,section #dge7;e77#b77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ 7z def9$ 9 section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a77 aft] commodity4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( enactm5t ( ?is ,act4 #hjg4 ,=ks1 airdrops1 & subsidi>y value 7a7 ,9 g5]al ,"p ,,ii ( sub*apt] ,b ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ be=e section #gb ! foll[+ new section3 #ga4 ,=ks1 airdrops1 & subsidi>y value 7a7 ,9 g5]al ,9 ! case ( any applicable asset receiv$ by a taxpay] = :i* ! taxpay] has tak5 affirmative /eps relat+ to control ( su* asset1 ! value ( su* asset %all be includ$ 9 gross income = ! taxable ye> 9 :i* su* asset is sold or o!rwise dispos$ ( by ! taxpay]4 7b7 ,"* ( income ,= purposes ( ?is subtitle1 ! am\nt includ$ 9 gross income "u ?is section %all be treat$ z ord9>y income 7z def9$ 9 section #fd74 7c7 ,applicable asset ,= purposes ( ?is section1 ! t]m applicable asset means-- 7#a7 a crypto asset =k1 7#b7 a crypto asset airdrop1 or 7#c7 any o!r simil> =m ( subsidi>y value relat+ to a crypto asset 7z def9$ 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code74 7d7 ,regulations ,n lat] ?an #ab mon?s aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y %all prescribe su* regulations or o!r guidance z may be necess>y to c>ry out ! purposes ( ?is section4 4 7b7 ,con=m+ am5dm5t ,! table ( sections ( "p ,,ii ( sub*apt] ,b ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ be=e ! item relat+ to section #gb ! foll[+ new item3 ,sec4 #ga4 ,=ks1 airdrops1 & subsidi>y value4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( enactm5t ( ?is ,act4 #hjh4 ,crypto asset m9+ & /ak+ 7a7 ,9 g5]al ,section #dea ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7l7 ,def]ral ( income recognition = crypto asset activities ,9 ! case ( a taxpay] :o conducts crypto asset m9+ or /ak+ activities1 ! am\nt ( income relat+ to su* activities %all n be includ$ 9 ! gross income ( ! taxpay] until ! taxable ye> ( ! sale or o!r disposition ( ! assets produc$ or receiv$ 9 connection ) ! m9+ or /ak+ activities4 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( enactm5t ( ?is ,act4 #hji4 ,*>itable contributions & qualifi$ appraisals 7a7 ,9 g5]al ,section #agj7;f77#aa77;,a77ii77,i7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ actively trad$ crypto assets 7z def9$ 9 section #ihja ( title #ca1 ,unit$ ,/ates ,code71 be=e & any qualifi$ vehicle4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to contributions made 9 taxable ye>s beg9n+ aft] ! date ( enactm5t ( ?is ,act4 ,,ix ,responsible int]ag5cy coord9ation #ija4 ,timel9e = int]pretive guidance issu$ by ,f$]al f9ancial ag5cies 7a7 ,9 g5]al ,title #ca1 ,unit$ ,/ates ,code1 is am5d$ by add+ aft] *apt] #ih1 z add$ by section #aja7;a7 ( ?is ,act1 ! foll[+3 #ii ,responsible int]ag5cy coord9ation ,sec4 #iija4 ,timel9e = int]pretive guidance issues by ,f$]al f9ancial ag5cies4 #iija4 ,timel9e = int]pretive guidance issues by ,f$]al f9ancial ag5cies 7a7 ,9 g5]al ,9 ?is section3 7#a7 ,f$]al f9ancial regulator ,! t]m ,f$]al f9ancial regulator means-- 7,a7 ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em & ! ,f$]al ,res]ve banks2 7,b7 ,commodity ,futures ,trad+ ,commission2 7,c7 ,dep>tm5t ( ! ,treasury2 7,d7 ,f$]al ,deposit ,insurance ,corporation2 7,e7 ,f$]al ,h\s+ ,f9ance ,ag5cy2 7,f7 ,national ,cr$it ,union ,adm9i/ration2 7,g7 ,(fice ( ! ,comptroll] ( ! ,curr5cy2 7,h7 ,consum] ,f9ancial ,protection ,bureau2 & 7,i7 ,securities & ,ex*ange ,commission4 7#b7 ,reque/+ p]son ,! t]m reque/+ p]son-- 7,a7 means any entity t is requir$ to be *>t]$1 lic5s$1 sup]vis$ or regi/]$ by t ag5cy2 & 7,b7 includes ,/ate ag5cies1 a cu/om] protection & m>ket integrity au?ority1 & any o!r entity delegat$ regulatory & discipl9>y au?ority by a gov]nm5tal ag5cy4 7b7 ,response ,n lat] ?an #ahj days aft] fil+ a writt5 reque/ = individualiz$ int]pretive guidance ) respect to ! application ( a /atute1 rule or policy "u ! jurisdiction ( a ,f$]al f9ancial regulator1 ! ag5cy %all provide a f9al1 complete & writt5 response to ! reque/+ p]son4 ,?is subsection %all n apply to reque/s = guidance t ! ,f$]al f9ancial regulator det]m9e lack sub/ance4 7c7 ,o!r matt]s ,) respect to matt]s delegat$ or o!rwise "u ! jurisdiction ( a cu/om] protection & m>ket integrity au?ority or o!r entity delegat$ regulatory & discipl9>y au?ority by a gov]nm5t ag5cy1 includ+ national securities ex*anges & bo>ds ( trade1 ! entity %all be subject to ! same requirem5ts z a ,f$]al f9ancial regulator "u ?is section4 4 #ijb4 ,/ate money transmission coord9ation relat+ to crypto assets 7a7 ,9 g5]al ,9 ord] to increase uni=mity1 r$uce regulatory burd51 & enhance consum] protection1 ! ,/ates1 ?r\gh ! ,conf]5ce ( ,/ate ,bank ,sup]visors & ! ,money ,transmission ,regulators ,association1 %all1 n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act1 ensure uni=m treatm5t ( crypto assets = ! purposes ( ,/ate money transmission laws on ! foll[+ matt]s3 7#a7 ,:e!r crypto assets are subject to money transmission lic5s+ requirem5ts1 z appropriate1 :i* %all include ! ex*ange ( crypto assets = legal t5d]4 7#b7 ,treatm5t ( paym5t /ableco9s4 7#c7 ,non-applicability to p]sons or s(tw>e t engage 9 validation ( transactions1 non-cu/odial wallet provid]s1 or s(tw>e or h>dw>e developm5t4 7#d7 ,tangible net wor? & p]missible inve/m5t requirem5ts4 7#e7 ,disclosures1 report+1 & recordkeep+4 7#f7 ,common exam9ation & exam9] tra9+ /&>ds1 includ+ common cu/om] id5tification1 anti-money laund]+1 & sanctions be/ practices develop$ 9 consultation ) ! ,f9ancial ,crimes ,en=cem5t ,network & ! ,(fice ( ,=eign ,assets ,control4 7b7 ,regulations ,if ! ,director ( ! ,bureau ( ,consum] ,f9ancial ,protection det]m9es t a ,/ate does n h ! requirem5ts ( subsection 7a7 9 effect by law 7includ+ regulations7 t are sub/antively consi/5t ) ! requirem5ts ( ! sev]al ,/ates on ! date t is #b ye>s aft] ! date ( enactm5t ( ?is section1 ! ,director %all adopt rules applicable to t ,/ate t a*ieve ! purposes ( subsection 7a7 & t are consi/5t ) ! /&>ds adopt$ 9 ! ,/ates t h ! requirem5ts ( subsection 7a7 9 effect4 ,! ,director may ext5d ! deadl9e "u ?is section = n m ?an #a ye> if a ,/ate has %[n a good fai? ef=t t[>ds implem5tation4 ,! ,director may promulgate regulations to monitor ,/ate compliance ) ?is subsection4 #ijc4 ,in=mation %>+ among ,f$]al & ,/ate f9ancial regulators ,subtitle ,c ( title ,,vii ( ! ,gramm-,lea*-,bliley ,act 7,public ,law #ajf-ajb2 #aac ,/at4 #adgj71 z am5d$ by section #gja ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 #gbb;,b4 ,in=mation %>+ among ,f$]al & ,/ate f9ancial regulators 7a7 ,confid5tiality ,not)/&+ any o!r provision ( law1 any requirem5t "u ,f$]al or ,/ate law reg>d+ ! privacy or confid5tiality ( any in=mation or mat]ials ex*ang$ among f9ancial regulators & any privilege aris+ "u ,f$]al or ,/ate law 7includ+ ! rules ( any ,f$]al or ,/ate c\rt7 ) respect to su* in=mation or mat]ial1 %all cont9ue to apply to su* in=mation or mat]ial aft] ! in=mation or mat]ial has be5 disclos$ to any ,/ate or ,f$]al f9ancial regulator4 7b7 ,non-,applicability ( c]ta9 requirem5ts ,in=mation or mat]ial t is subject to privilege or confid5tiality "u subsection 7a7 %all n be subject to-- 7#a7 disclosure "u any ,f$]al or ,/ate law gov]n+ ! disclosure to ! public ( in=mation held by an (fic] or an ag5cy ( ! ,f$]al ,gov]nm5t or ! respective ,/ate2 or 7#b7 subpo5a or discov]y1 or admission into evid5ce1 9 any private civil action or adm9i/rative process1 unless ) respect to any privilege held by ! ,nationwide ,mortgage ,lic5s+ ,sy/em & ,regi/ry or ! ,director ) respect to su* in=mation or mat]ial1 ! p]son to :om su* in=mation or mat]ial p]ta9s waives t privilege1 9 :ole or 9 "p1 bas$ on ! discretion ( su* p]son4 7c7 ,coord9ation ) o!r law ,any ,/ate or ,f$]al law1 includ+ any ,/ate op5 records law1 relat+ to ! disclosure ( confid5tial sup]visory in=mation or any in=mation or mat]ial describ$ 9 subsection 7a7 t is inconsi/5t ) subsection 7a7 %all be sup]s$$ by ! requirem5ts ( su* provision to ! ext5t ! ,/ate or ,f$]al law provides less confid5tiality or a weak] privilege4 7d7 ,conf]5ce ( ,/ate ,bank ,sup]visors ,! ,conf]5ce ( ,/ate ,bank ,sup]visors %all be consid]$ ! ag5t ( ! ,/ate f9ancial regulators = ! purposes ( %>+ in=mation "u ?is provision4 7e7 ,def9ition ,9 ?is section1 ! t]m f9ancial regulator means-- 7#a7 ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em & ! ,f$]al ,res]ve banks2 7#b7 ! ,commodity ,futures ,trad+ ,commission2 7#c7 ! ,dep>tm5t ( ! ,treasury1 includ+ ! ,f9ancial ,crimes ,en=cem5t ,network & ! ,(fice ( ,=eign ,assets ,control2 7#d7 ! ,f$]al ,deposit ,insurance ,corporation2 7#e7 ! ,f$]al ,h\s+ ,f9ance ,ag5cy2 7#f7 ! ,national ,cr$it ,union ,adm9i/ration2 7#g7 ! ,(fice ( ! ,comptroll] ( ! ,curr5cy2 7#h7 ! ,bureau ( ,consum] ,f9ancial ,protection2 7#i7 ! ,securities & ,ex*ange ,commission2 & 7#aj7 ,/ate ag5cies t regulate1 sup]vise1 or lic5se banks1 tru/ companies1 cr$it unions1 consum] cr$it1 consum] protection1 money transmission1 securities1 commodities1 & simil> areas4 4 #ijd4 ,report on en]gy consumption 9 crypto asset m>kets 7a7 ,9 g5]al ,n lat] ?an ,decemb] #ca ( ea* ye>1 ! ,adm9i/rator ( ! ,en]gy ,in=mation ,adm9i/ration %all submit to ! ,committees on ,en]gy & ,natural ,res\rces & ,environm5t & ,public ,works ( ! ,s5ate & ! ,committees on ,en]gy & ,comm]ce & ,natural ,res\rces ( ! ,h\se ( ,repres5tatives1 & make publicly available 9 a ma*9e-readable =mat1 a report conta9+ an analysis ( ! foll[+ topics ) respect to crypto assets3 7#a7 ,en]gy consumption = m9+ & /ak+ ( crypto asset transactions 9 ! f9ancial s]vices indu/ry4 7#b7 ,! effect ( en]gy consumption describ$ 9 p>agraph 7#a7 on national1 regional1 & local en]gy prices4 7#c7 ,! effects ( m9+ & /ak+ ( crypto asset transactions on baseload p[] levels4 7#d7 ,! use ( r5ewable en]gy s\rces or nonr5ewable en]gy s\rces = p[]+ crypto asset m9+ op]ations t w\ld o!rwise be exp5d$4 7#e7 ,a comp>ison ( crypto asset m>ket en]gy consumption ) ! en]gy consumption ( ! f9ancial s]vices indu/ry & economy z a :ole4 7#f7 ,! s\rces & reliability ( ! data us$ to analyze ! topics describ$ 9 p>agraphs 7#a7 ?r\gh 7#e74 7b7 ,consultation ,! ,adm9i/rator ( ! ,en]gy ,in=mation ,adm9i/ration %all prep>e ! report "u subsection 7a7 9 consultation ) ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission4 #ije4 ,analysis ( en]gy consumption by di/ribut$ l$g] te*nologies 7a7 ,agreem5t ,! ,director ( ! ,national ,in/itute ( ,/&>ds & ,te*nology %all seek to ent] into an agreem5t ) ! ,national ,academies ( ,sci5ces1 ,eng9e]+1 & ,m$ic9e 79 ?is section ref]r$ to z ! ,national ,academies7 to conduct ! analysis "u subsection 7b7 & submit ! report "u subsection 7c74 7b7 ,analysis ,"u an agreem5t betwe5 ! ,director & ! ,national ,academies ent]$ into pursuant to subsection 7a71 ! ,national ,academies %all conduct an analysis ( matt]s relat+ to en]gy consumption by di/ribut$ l$g] te*nologies1 includ+ analysis ( ! foll[+ topics z !y p]ta9 to su* te*nologies3 7#a7 ,evid5ce-bas$ analysis ( en]gy consumption by pro( ( /ake & pro( ( "w cons5sus me*anisms relat+ to di/ribut$ l$g] te*nology g5]ally4 7#b7 ,indu/ry be/ practices to r$uce en]gy consumption us+ pro( ( /ake & pro( ( "w cons5sus me*anisms4 7#c7 ,recomm5dations = legislative or adm9i/rative action to r$uce en]gy consumption & inc5tivize en]gy effici5cy across relat$ indu/ries4 7c7 ,report ,"u an agreem5t ent]$ into betwe5 ! ,director & ! ,national ,academies "u subsection 7a71 ! ,national ,academies %all1 n lat] ?an #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 submit to ! ,director1 ! ,secret>y ( ,en]gy1 ! ,committee on ,en]gy & ,natural ,res\rces & ! ,committee on ,environm5t & ,public ,works ( ! ,s5ate1 & ! ,committee on ,en]gy & ,comm]ce & ! ,committee on ,natural ,res\rces ( ! ,h\se ( ,repres5tatives a report conta9+ ! f9d+s ( ! ,national ,academies ) respect to ! analysis "u subsection 7b7 & a detail$ description ( su* analysis4 #ijf4 ,report on di/ribut$ l$g] applications 9 en]gy 7a7 ,9 g5]al ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ,en]gy %all submit to ! ,committees on ,en]gy & ,natural ,res\rces & ,environm5t & ,public ,works ( ! ,s5ate & ! ,committees on ,en]gy & ,comm]ce & ,natural ,res\rces ( ! ,h\se ( ,repres5tatives a report conta9+-- 7#a7 an analysis (1 ) respect to di/ribut$ l$g] te*nology 9 en]gy-- 7,a7 exi/+1 develop+1 & pot5tial use cases ( di/ribut$ l$g] te*nology 9 en]gy developm5t & transmission1 & relat$ topics1 z det]m9$ by ! ,secret>y2 & 7,b7 indu/ry be/ practices to implem5t di/ribut$ l$g] te*nology2 & 7#b7 recomm5dations = any necess>y guidel9es = ! usage ( di/ribut$ l$g] te*nology4 7b7 ,consultation ,! ,secret>y ( ,en]gy %all prep>e ! report "u subsection 7a7 9 consultation ) ! ,national ,in/itute ( ,/&>ds & ,te*nology & ! ,secret>y ( ,comm]ce4 #ijg4 ,p]mitt+ ,f$]al ,gov]nm5t employees to ga9 exp]i5ce ) crypto asset te*nologies 7a7 ,9 g5]al ,solely = ! purposes ( section #bfdj4bjb ( title #e1 ,code ( ,f$]al ,regulations1 or any successor regulation1 crypto assets li/$ = trad$ on a crypto asset ex*ange regi/]$ "u ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 et seq47 %all be consid]$ to be publicly trad$ securities1 except t ! de m9imis exemption "u p>agraph 7a77#b7 ( t section1 aft] aggregation ( all crypto assets1 %all be #a1jjj4 7b7 ,legal op9ions ,! legal advisories issu$ by ! ,(fice ( ,gov]nm5t ,e?ics entitl$ ,guidance = ,report+ ,virtual ,curr5cy on ,f9ancial ,disclosure ,reports 7,,la-#ah-jf2 issu$ ,june #ah1 #bjah7 & ,application ( ! ,securities & ,mutual ,fund ,exemptions to ,cryptocurr5cy1 ,/ableco9s1 & ,relat$ ,inve/m5ts 7,,la-#bb-jd2 issu$ ,july #e1 #bjbb7 %all h no =ce or effect to ! ext5t t ei!r su* advisory is inconsi/5t ) subsection 7a74 #ijh4 ,advisory ,committee on ,f9ancial ,innovation 7a7 ,e/abli%m5t ,!re is e/abli%$ ! ,advisory ,committee on ,f9ancial ,innovation 79 ?is section ref]r$ to z ! ,committee74 7b7 ,memb]%ip 7#a7 ,composition ,! ,committee %all be compos$ ( #aa memb]s1 z foll[s3 7,a7 #b memb]s appo9t$ by ! ,presid5t f ! f9ancial te*nology indu/ry4 7,b7 #d memb]s appo9t$ by ! ,presid5t ) specializations 9 consum] protection1 consum] education1 f9ancial lit]acy1 or f9ancial inclusion4 7,c7 ,! ,director ( ! ,(fice ( ,f9ancial ,innovation ( ! ,commodity ,futures ,trad+ ,commission4 7,d7 ,! ,director ( ! ,(fice ( ,f9ancial ,innovation ( ! ,securities & ,ex*ange ,commission4 7,e7 ,a memb] ( ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 z vot$ ^u by ! ,bo>d4 7,f7 ,a ,/ate bank+ sup]visor1 z designat$ by ! ,conf]5ce ( ,/ate ,bank ,sup]visors4 7,g7 ,a ,/ate securities regulator1 z designat$ by ! ,national ,association ( ,/ate ,securities ,adm9i/rators4 7#b7 ,political affiliation ,n m ?an #d ( ! memb]s ( ! ,committee %all be f ! same political p>ty4 7#c7 ,appo9tm5t date ,! appo9tm5ts ( ! memb]s ( ! ,committee %all be made n lat] ?an #fj days aft] ! date ( enactm5t ( ?is ,act4 7#d7 ,p]iod ( appo9tm5t2 vacancies 7,a7 ,9 g5]al ,a memb] ( ! ,committee %all be appo9t$ = a t]m ( #d ye>s4 7,b7 ,vacancies ,a vacancy 9 ! ,committee-- 7i7 %all n affect ! p[]s ( ! ,committee2 & 7ii7 %all be fill$ 9 ! same mann] z ! orig9al appo9tm5t4 7#e7 ,meet+s 7,a7 ,initial meet+ ,n lat] ?an #fj days aft] ! date on :i* all memb]s ( ! ,committee h be5 appo9t$1 ! ,committee %all hold its fir/ meet+4 7,b7 ,frequ5cy ,! ,committee %all meet at ! call ( ! ,*air4 7,c7 ,quorum ,a majority ( ! memb]s ( ! ,committee %all con/itute a quorum1 b a less] numb] ( memb]s may hold he>+s4 7#f7 ,*airp]son ,! memb]s describ$ 9 subp>agraphs 7,c7 & 7,d7 ( p>agraph 7#a7 %all alt]nate1 on a ye>ly basis1 z ,*airp]son ( ! ,committee1 ) ! memb] describ$ 9 su* subp>agraph 7,d7 s]v+ z ! ,*air = ! #a-ye> p]iod foll[+ e/abli%m5t ( ! ,committee4 7c7 ,duties 7#a7 ,matt]s /udi$ ,! matt]s /udi$ by ! ,committee %all include-- 7,a7 crypto assets2 7,b7 consum] education & f9ancial lit]acy2 7,c7 innovations 9 ! securities & commodities m>kets2 7,d7 innovations bank+1 paym5ts1 & settlem5t2 7,e7 consum] cr$it2 7,f7 f9ancial inclusion1 includ+ r$uc+ ! co/ ( f9ancial s]vices = all p ( ! ,unit$ ,/ates & promot+ access to ^? s]vices2 7,g7 effici5cy 9 ! f9ancial sy/em2 7,h7 r$uction ( sy/emic risk2 7,i7 competition 9 f9ancial s]vices2 & 7,j7 ! ,/ate-,f$]al p>tn]%ip 9 f9ancial s]vices regulation4 7#b7 ,report ,on an annual basis1 or z o!rwise det]m9$ necess>y by ! ,*air ( ! ,committee1 ! ,committee %all report to ! ,presid5t & to ,congress on1 & provide recomm5dations = legislation1 regulation1 & sup]vision relat+ to innovation 91 ! matt]s /udi$ "u p>agraph 7#a74 7d7 ,p[]s 7#a7 ,he>+s ,! ,committee %all hold n less ?an #b he>+s p] cal5d> ye> to he> f int]e/$ p>ties & to discuss ! "w ( ! ,committee4 7#b7 ,in=mation f ,f$]al ag5cies 7,a7 ,9 g5]al ,! ,committee may secure directly f a ,f$]al dep>tm5t or ag5cy su* in=mation z ! ,committee consid]s necess>y to c>ry out ?is section4 7,b7 ,furni%+ in=mation ,on reque/ ( ! ,*air ( ! ,committee1 ! head ( ! dep>tm5t or ag5cy %all furni% ! in=mation to ! ,committee4 7#c7 ,po/al s]vices ,! ,committee may use ! ,unit$ ,/ates mails 9 ! same mann] & "u ! same conditions z o!r dep>tm5ts & ag5cies ( ! ,f$]al ,gov]nm5t4 7e7 ,comp5sation 7#a7 ,9 g5]al ,all memb]s ( ! ,committee %all s]ve )\t comp5sation 9 addition to t receiv$ = _! s]vices z (fic]s or employees ( ! ,unit$ ,/ates1 & all o!r memb]s ( ! ,committee %all s]ve )\t comp5sation4 7#b7 ,travel exp5ses ,ea* memb] ( ! ,committee may be all[$ travel exp5ses1 includ+ p] diem 9 lieu ( subsi/5ce1 9 accordance ) sections #egjb & #egjc ( title #e1 ,unit$ ,/ates ,code1 :ile away f _! homes or regul> places ( bus9ess 9 p]=mance ( s]vices = ! ,c\ncil4 7f7 ,/aff 7#a7 ,9 g5]al ,! ,*air ( ! ,committee may1 )\t reg>d to ! civil s]vice laws 7includ+ regulations71 appo9t & t]m9ate an executive director & su* o!r additional p]sonnel z may be necess>y to enable ! ,committee to p]=m its duties1 except t ! employm5t ( an executive director %all be subject to confirmation by ! ,committee4 7#b7 ,comp5sation ,! ,*air ( ! ,committee may fix ! comp5sation ( ! executive director & o!r p]sonnel )\t reg>d to *apt] #ea & sub*apt] ,,iii ( *apt] #ec ( title #e1 ,unit$ ,/ates ,code1 relat+ to classification ( positions & ,g5]al ,s*$ule pay rates1 except t ! rate ( pay = ! executive director & o!r p]sonnel may n exce$ ! rate payable = level ,v ( ! ,executive ,s*$ule "u section #ecaf ( t title4 7g7 ,detail ( gov]nm5t employees ,a ,f$]al ,gov]nm5t employee may be detail$ to ! ,committee )\t reimbursem5t1 & su* detail %all be )\t int]ruption or loss ( civil s]vice /atus or privilege4 7h7 ,procurem5t ( tempor>y & int]mitt5t s]vices ,! ,*air ( ! ,committee may procure tempor>y & int]mitt5t s]vices "u section #caji7;b7 ( title #e1 ,unit$ ,/ates ,code1 at rates = individuals t d n exce$ ! daily equival5t ( ! annual rate ( basic pay prescrib$ = level ,v ( ! ,executive ,s*$ule "u section #ecaf ( t title4 7i7 ,t]m9ation ,section #ad ( ! ,f$]al ,advisory ,committee ,act 7#e ,u4,s4,c4 ,app47 %all n apply to ! ,committee4 ,x ,equipp+ ag5cies to protect consum]s & promote responsible innovation #ajja4 ,executive ,(fice ( ! ,presid5t appropriations 7a7 ,(fice ( sci5ce & te*nology policy ,= ! purposes ( hir+ speciali/ positions )9 ! ,(fice ( ,sci5ce & ,te*nology ,policy to coord9ate ,f$]al activities & advise ! ,presid5t on matt]s ( rese>* & developm5t relat+ to crypto assets1 di/ribut$ l$g] te*nology1 artificial intellig5ce & o!r innovative f9ancial te*nologies1 includ+ fund+ ! position creat$ by section #ajfga ( #acf ,/at4 #afhh & coord9at+ ! national rese>* & developm5t /rategy requir$ by section #eiac ( #acf ,/at4 #bcie1 !re is au?oriz$ to be appropriat$ to ! ,executive ,(fice ( ! ,presid5t ! foll[+3 7#a7 #b1ejj1jjj = fiscal ye> #bjbc1 to rema9 available until ,septemb] #cj1 #bjbd4 7#b7 #b1ejj1jjj = fiscal ye> #bjbd1 to rema9 available until ,septemb] #cj1 #bjbe4 7#c7 #b1ejj1jjj = fiscal ye> #bjbe1 to rema9 available until ,septemb] #cj1 #bjbf4 7#d7 #b1ejj1jjj = fiscal ye> #bjbf1 to rema9 available until ,septemb] #cj1 #bjbg4 7#e7 #b1ejj1jjj = fiscal ye> #bjbg1 to rema9 available until ,septemb] #cj1 #bjbh4 7b7 ,national economic c\ncil ,= ! purposes ( hir+ speciali/ positions )9 ! ,national ,economic ,c\ncil to coord9ate ,f$]al activities & advise ! ,presid5t on matt]s ( f9ancial & economic policy relat+ to crypto assets1 di/ribut$ l$g] te*nology1 artificial intellig5ce & o!r innovative f9ancial te*nologies1 !re is au?oriz$ to be appropriat$ to ! ,executive ,(fice ( ! ,presid5t ! foll[+3 7#a7 #b1ejj1jjj = fiscal ye> #bjbc1 to rema9 available "u ,septemb] #cj1 #bjbd4 7#b7 #b1ejj1jjj = fiscal ye> #bjbd1 to rema9 available until ,septemb] #cj1 #bjbe4 7#c7 #b1ejj1jjj = fiscal ye> #bjbe1 to rema9 available until ,septemb] #cj1 #bjbf4 7#d7 #b1ejj1jjj = fiscal ye> #bjbf1 to rema9 available until ,septemb] #cj1 #bjbg4 7#e7 #b1ejj1jjj = fiscal ye> #bjbg1 to rema9 available until ,septemb] #cj1 #bjbh4 #ajjb4 ,f9ancial ,crimes ,en=cem5t ,network appropriations 7a7 ,au?orization ( appropriations ,= ! purposes ( develop+ policy relat+ to crypto assets1 acquir+ in=mation te*nology res\rces1 e/abli%+ ! ,f9ancial ,crimes ,en=cem5t ,network ,innovation ,laboratory & en=cem5t ( ! laws )9 its jurisdiction relat+ to crypto assets1 !re is au?oriz$ to be appropriat$ to ! ,f9ancial ,crimes ,en=cem5t ,network ( ! ,dep>tm5t ( ! ,treasury ! foll[+3 7#a7 #cj1jjj1jjj = fiscal ye> #bjbc1 to rema9 available until ,septemb] #cj1 #bjbd4 7#b7 #cj1jjj1jjj = fiscal ye> #bjbd1 to rema9 available until ,septemb] #cj1 #bjbe4 7#c7 #cj1jjj1jjj = fiscal ye> #bjbe1 to rema9 available until ,septemb] #cj1 #bjbf4 7#d7 #cj1jjj1jjj = fiscal ye> #bjbf1 to rema9 available until ,septemb] #cj1 #bjbg4 7#e7 #cj1jjj1jjj = fiscal ye> #bjbg1 to rema9 available until ,septemb] #cj1 #bjbh4 7b7 ,inc5tive premium = highly qualifi$ individuals ,not)/&+ any o!r provision ( law or regulation1 ! ,director ( ! ,f9ancial ,crimes ,en=cem5t ,network ( ! ,dep>tm5t ( ! ,treasury may pay an annual inc5tive premium ( n m ?an #bj p]c5t ( ! annual rate ( basic pay = a position if necess>y to attract highly qualifi$ individuals = positions t ! ,director has c]tifi$ to ! ,director ( ! ,(fice ( ,p]sonnel ,managem5ts reflect ! ne$s ( ! ,f9ancial ,crimes ,en=cem5t ,network4 #ajjc4 ,commodity ,futures ,trad+ ,commission appropriations 7a7 ,(fice ( f9ancial innovation 7#a7 ,9 g5]al ,!re is e/abli%$ )9 ! ,commodity ,futures ,trad+ ,commission 7ref]r$ to 9 ?is subsection z ! ,commission7 ! ,(fice ( ,f9ancial ,innovation 7ref]r$ to 9 ?is subsection z ! ,(fice74 7#b7 ,director ,! ,commission %all appo9t a ,director ( ! ,(fice-- 7,a7 to manage ! duties ( ! ,(fice2 & 7,b7 to s]ve z ! pr9cipal advisor to ! ,commission on matt]s relat+ to responsible f9ancial innovation4 7#c7 ,duties ,! duties ( ! ,(fice %all be-- 7,a7 to coord9ate ! activities ( ! ,commission ) respect to responsible f9ancial innovation1 includ+ protection ( consum]s2 7,b7 to ensure ! global competitiv5ess ( ! ,unit$ ,/ates f9ancial sy/em2 7,c7 to conduct rese>*2 & 7,d7 to c>ry out any o!r duties z o!rwise provid$ by law4 7b7 ,au?orization ( appropriations 7#a7 ,9 g5]al ,!re is au?oriz$ to be appropriat$ to ! ,commodity ,futures ,trad+ ,commission #ajj1jjj1jjj = ea* ( fiscal ye>s #bjbc ?r\gh #bjbg = ! purposes (-- 7,a7 implem5t+ ?is ,act & ! am5dm5ts made by ?is ,act2 7,b7 develop+ policy relat+ to crypto assets2 7,c7 e/abli%+ ! ,(fice ( ,f9ancial ,innovation "u subsection 7a72 7,d7 hir+ exp]ts2 7,e7 rulemak+2 7,f7 adm9i/rative & %>$ s]vices2 & 7,g7 acquir+ in=mation te*nology res\rces relat+ to crypto assets4 7#b7 ,availability ,am\nts made available pursuant to p>agraph 7#a7 %all rema9 available = a p]iod ( #a fiscal ye>4 7#c7 ,limitations ,am\nts made available pursuant to p>agraph 7#a7-- 7,a7 ) ! exception ( appropriations made available = fiscal ye> #bjbd1 %all n be available until a cu/om] protection & m>ket integrity au?ority has be5 regi/]$ "u section #ihji ( title #ca1 ,unit$ ,/ates ,code2 & 7,b7 may n be us$ = en=cem5t activities1 unless o!rwise provid$ by law4 #ajjd4 ,securities & ,ex*ange ,commission appropriations 7a7 ,(fice ( f9ancial innovation 7#a7 ,e/abli%m5t ,!re is e/abli%$ )9 ! ,securities & ,ex*ange ,commission 7ref]r$ to 9 ?is section z ! ,commission7 ! ,(fice ( ,f9ancial ,innovation 7ref]r$ to 9 ?is section z ! ,(fice7 to coord9ate ! activities ( ! ,commission ) respect to responsible f9ancial innovation1 includ+-- 7,a7 ) respect to ! protection ( consum]s2 & 7,b7 by-- 7i7 conduct+ rese>*2 7ii7 ensur+ ! global competitiv5ess ( ! f9ancial sy/em ( ! ,unit$ ,/ates2 & 7iii7 p]=m+ duties z o!rwise provid$ by law4 7#b7 ,director ,! ,commission %all appo9t a ,director-- 7,a7 to-- 7i7 manage ! duties ( ! ,(fice2 & 7ii7 s]ve z pr9cipal advisor to ! ,commission on matt]s relat+ to responsible f9ancial innovation2 & 7,b7 :o %all be acc\ntable to ! ,commission4 7b7 ,au?orization ( appropriations ,subject to subsection 7c71 = ! purposes ( implem5t+ ?is ,act1 develop+ policy relat+ to crypto assets1 e/abli%+ ! ,(fice1 appo9t+ individuals :o are exp]ts 9 _! fields1 conduct+ rulemak+s1 c>ry+ out adm9i/rative & %>$ s]vices1 & acquir+ in=mation te*nology res\rces )9 ! jurisdiction ( ! ,commission relat+ to crypto assets1 !re is au?oriz$ to be appropriat$ to ! ,commission ! foll[+3 7#a7 #ajj1jjj1jjj = fiscal ye> #bjbc1 to rema9 available until ,septemb] #cj1 #bjbd4 7#b7 #ajj1jjj1jjj = fiscal ye> #bjbd1 to rema9 available until ,septemb] #cj1 #bjbe4 7#c7 #ajj1jjj1jjj = fiscal ye> #bjbe1 to rema9 available until ,septemb] #cj1 #bjbf4 7#d7 #ajj1jjj1jjj = fiscal ye> #bjbf1 to rema9 available until ,septemb] #cj1 #bjbg4 7#e7 #ajj1jjj1jjj = fiscal ye> #bjbg1 to rema9 available until ,septemb] #cj1 #bjbh4 7c7 ,limitations ,) respect to am\nts t are appropriat$ pursuant to ! au?orization "u subsection 7b71 ^? am\nts-- 7#a7 except ) respect to am\nts t are made available = fiscal ye> #bjbd1 %all n be available until a cu/om] protection & m>ket integrity au?ority has be5 regi/]$ "u section #ihji ( title #ca1 ,unit$ ,/ates ,code1 z add$ by section #fja2 & 7#b7 may n be us$ = en=cem5t activities1 unless o!rwise provid$ by law4 #ajje4 ,f$]al ,trade ,commission appropriations 7a7 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,x is important t ! ,unit$ ,/ates rema9s a lead] 9 innovation4 7#b7 ,crypto assets & di/ribut$ l$g] te*nology are driv+ innovation & provid+ consum]s ) increas$ *oice & conv5i5ce4 7#c7 ,! use ( crypto assets & di/ribut$ l$g] te*nology is likely to increase 9 ! future4 7#d7 ,! ,f$]al ,trade ,commission is responsible = protect+ consum]s f unfair or deceptive acts or practices1 includ+ relat+ to crypto assets4 7#e7 ,! ,f$]al ,trade ,commission has previ\sly tak5 action aga9/ unscrupul\s companies & individuals t committ$ unfair or deceptive acts or practices involv+ crypto assets4 7#f7 ,to bol/] ! ability ( ! ,f$]al ,trade ,commission to en=ce aga9/ unfair or deceptive acts or practices involv+ crypto assets1 ! ,commission %\ld ensure /aff h appropriate tra9+ & res\rces to id5tify & pursue su* cases4 7b7 ,au?orization ( appropriations ,= ! purposes ( execut+ ! duties set =? 9 subsection 7c7 ( ?is section1 !re is au?oriz$ to be appropriat$ to ! ,f$]al ,trade ,commission ! foll[+3 7#a7 #cj1jjj1jjj = fiscal ye> #bjbc1 to rema9 available until ,septemb] #cj1 #bjbd4 7#b7 #cj1jjj1jjj = fiscal ye> #bjbd1 to rema9 available until ,septemb] #cj1 #bjbe4 7#c7 #cj1jjj1jjj = fiscal ye> #bjbe1 to rema9 available until ,septemb] #cj1 #bjbf4 7#d7 #cj1jjj1jjj = fiscal ye> #bjbf1 to rema9 available until ,septemb] #cj1 #bjbg4 7#e7 #cj1jjj1jjj = fiscal ye> #bjbg1 to rema9 available until ,septemb] #cj1 #bjbh4 7c7 ,purposes ,! ,f$]al ,trade ,commission %all use ! funds appropriat$ "u subsection 7b7 = ! foll[+ purposes3 7#a7 ,en=cem5t relat+ to unfair or deceptive acts or practices by p]sons 9 ! crypto asset indu/ry :i* are n curr5tly sup]vis$ by a ,f$]al or ,/ate f9ancial regulator4 7#b7 ,highlight+ be/ practices by lawful crypto asset bus9esses4 7#c7 ,promot+ responsible innovation4 7#d7 ,consum] education relat+ to fraudul5t crypto asset activity4 7#e7 ,inve/igat+ unlawful re/ra9ts ( trade 9 ! crypto asset indu/ry4 7#f7 ,op]ations ( ! ,(fice ( ,crypto ,asset ,consum] ,protection1 z specifi$ by subsection 7d74 7d7 ,(fice ( crypto asset consum] protection ,!re is creat$ )9 ! ,f$]al ,trade ,commission ! ,(fice ( ,crypto ,asset ,consum] ,protection4 ,! ,(fice %all conduct consum] education relat+ to crypto assets & develop be/ practices = consum] protection = ! crypto asset indu/ry1 & recomm5d en=cem5t action1 z appropriate1 to ! ,division ( ,en=cem5t ( ! ,commission4 7e7 ,report to ,congress ,n lat] ?an ,septemb] #cj ( ea* ye> = :i* an appropriation 0 made available "u subsection 7a71 ! ,f$]al ,trade ,commission %all provide a report ( activities conduct$ pursuant to subsection 7b7 ( ?is section to ! foll[+ committees ( ,congress3 7#a7 ,! ,committee on ,comm]ce1 ,sci5ce1 & ,transportation ( ! ,s5ate4 7#b7 ,! ,committee on ,appropriations ( ! ,s5ate4 7#c7 ,! ,committee on ,en]gy & ,comm]ce ( ! ,h\se ( ,repres5tatives4 7#d7 ,! ,committee on ,appropriations ( ! ,h\se ( ,repres5tatives4 #ajjf4 ,advisory ,commission on ,f9ancial ,innovation appropriations ,to c>ry out ! duties ( ! ,advisory ,committee on ,f9ancial ,innovation creat$ by section #ijh ( ?is ,act1 !re is appropriat$3 7#a7 #b1ejj1jjj = fiscal ye> #bjbc1 to rema9 available until ,septemb] #cj1 #bjbd4 7#b7 #b1ejj1jjj = fiscal ye> #bjbd1 to rema9 available until ,septemb] #cj1 #bjbe4 7#c7 #b1ejj1jjj = fiscal ye> #bjbe1 to rema9 available until ,septemb] #cj1 #bjbf4 7#d7 #b1ejj1jjj = fiscal ye> #bjbf1 to rema9 available until ,septemb] #cj1 #bjbg4 7#e7 #b1ejj1jjj = fiscal ye> #bjbg1 to rema9 available until ,septemb] #cj1 #bjbh4