#aai? ,,congress #a/ ,session ,h4 ,r4 #cfcc ,,an ,,act ,to provide = a sy/em ( regulation ( ! (f] & sale ( digital commodities by ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission1 to am5d ! ,f$]al ,res]ve ,act to prohibit ! ,f$]al res]ve banks f (f]+ c]ta9 products or s]vices directly to an individual1 to prohibit ! use ( c5tral bank digital curr5cy = monet>y policy1 & = o!r purposes4 #a4 ,%ort titles2 table ( cont5ts 7a7 ,%ort titles ,?is ,act may be cit$ z ! ,digital ,asset ,m>ket ,cl>ity ,act ( #bjbe or ! ,,cl>ity ,act ( #bjbe & ! ,anti-,,cbdc ,surveillance ,/ate ,act4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort titles2 table ( cont5ts4 ,title ,i--,def9itions2 ,rulemak+2 ,exp$it$ ,regi/ration ,sec4 #aja4 ,def9itions "u ! ,securities ,act ( #aicc4 ,sec4 #ajb4 ,def9itions "u ! ,securities ,ex*ange ,act ( #aicd4 ,sec4 #ajc4 ,def9itions "u ! ,commodity ,ex*ange ,act4 ,sec4 #ajd4 ,def9itions "u ?is ,act4 ,sec4 #aje4 ,rulemak+s4 ,sec4 #ajf4 ,exp$it$ regi/ration = digital commodity ex*anges1 brok]s1 & deal]s2 provisional /atus4 ,sec4 #ajg4 ,commodity ,ex*ange ,act & securities laws sav+s provisions4 ,sec4 #ajh4 ,adm9i/rative requirem5ts4 ,sec4 #aji4 ,treatm5t ( c]ta9 non-controll+ block*a9 develop]s4 ,sec4 #aaj4 ,application ( ! ,bank ,secrecy ,act4 ,sec4 #aaa4 ,rule ( con/ruction4 ,sec4 #aab4 ,implem5tation4 ,title ,,ii--,(f]s & ,sales ( ,digital ,commodities ,sec4 #bja4 ,treatm5t ( inve/m5t contract assets4 ,sec4 #bjb4 ,exempt$ prim>y transactions 9 digital commodities4 ,sec4 #bjc4 ,treatm5t ( second>y transactions 9 digital commodities t orig9ally involv$ inve/m5t contracts4 ,sec4 #bjd4 ,requirem5ts = (f]s & sales ( digital commodities by digital commodity relat$ p]sons & digital commodity affiliat$ p]sons4 ,sec4 #bje4 ,mature block*a9 sy/em requirem5ts4 ,sec4 #bjf4 ,effective date4 ,title ,,iii--,regi/ration = ,int]m$i>ies at ! ,securities & ,ex*ange ,commission ,sec4 #cja4 ,treatm5t ( digital commodities & p]mitt$ paym5t /ableco9s4 ,sec4 #cjb4 ,anti-fraud au?ority ov] p]mitt$ paym5t /ableco9s & c]ta9 digital commodity transactions4 ,sec4 #cjc4 ,eligibility ( alt]native trad+ sy/ems4 ,sec4 #cjd4 ,rulemak+ = dual-regi/]$ entities4 ,sec4 #cje4 ,mod]nization ( recordkeep+ requirem5ts4 ,sec4 #cjf4 ,exemptive au?ority4 ,sec4 #cjg4 ,additional regi/rations ) ! ,commodity ,futures ,trad+ ,commission4 ,sec4 #cjh4 ,exempt+ digital commodities f ,/ate securities laws4 ,sec4 #cji4 ,exclusion = dec5traliz$ f9ance activities4 ,sec4 #caj4 ,treatm5t ( cu/ody activities by bank+ in/itutions4 ,sec4 #caa4 ,brok] & deal] disclosures reg>d+ ! treatm5t ( assets4 ,sec4 #cab4 ,digital commodity activities t are f9ancial 9 nature4 ,sec4 #cac4 ,effective date2 adm9i/ration4 ,sec4 #cad4 ,educational mat]ial requirem5ts4 ,sec4 #cae4 ,discretion>y ,surplus ,fund4 ,title ,,iv--,regi/ration = ,digital ,commodity ,int]m$i>ies at ! ,commodity ,futures ,trad+ ,commission ,sec4 #dja4 ,commission jurisdiction ov] digital commodity transactions4 ,sec4 #djb4 ,requir+ futures commission m]*ants to use qualifi$ digital asset cu/odians4 ,sec4 #djc4 ,trad+ c]tification & approval = digital commodities4 ,sec4 #djd4 ,regi/ration ( digital commodity ex*anges4 ,sec4 #dje4 ,qualifi$ digital asset cu/odians4 ,sec4 #djf4 ,regi/ration & regulation ( digital commodity brok]s & deal]s4 ,sec4 #djg4 ,regi/ration ( associat$ p]sons4 ,sec4 #djh4 ,regi/ration ( commodity pool op]ators & commodity trad+ advisors4 ,sec4 #dji4 ,exclusion = dec5traliz$ f9ance activities4 ,sec4 #daj4 ,res\rces = implem5tation & en=cem5t4 ,sec4 #daa4 ,requirem5ts relat$ to control p]sons4 ,sec4 #dab4 ,o!r tradable assets4 ,sec4 #dac4 ,conflict ( int]e/ rulemak+4 ,sec4 #dad4 ,effective date4 ,sec4 #dae4 ,s5se ( ,congress4 ,title ,v--,innovation & ,te*nology ,improvem5ts ,sec4 #eja4 ,f9d+s2 s5se ( ,congress4 ,sec4 #ejb4 ,/rategic ,hub = ,innovation & ,f9ancial ,te*nology4 ,sec4 #ejc4 ,codification ( ,lab,c,f,t,c4 ,sec4 #ejd4 ,/udy on dec5traliz$ f9ance4 ,sec4 #eje4 ,/udy on non-fungible tok5s4 ,sec4 #ejf4 ,/udy on exp&+ f9ancial lit]acy among/ digital commodity hold]s4 ,sec4 #ejg4 ,/udy on f9ancial m>ket infra/ructure improvem5ts4 ,sec4 #ejh4 ,/udy on block*a9 9 paym5ts4 ,sec4 #eji4 ,/udy on illicit use ( digital assets4 ,sec4 #eaj4 ,,gao /udy on c]ta9 c5traliz$ int]m$i>ies t are prim>ily locat$ 9 =eign jurisdictions4 ,sec4 #eaa4 ,/udies on =eign adv]s>y p>ticipation4 ,sec4 #eab4 ,con=m+ am5dm5ts4 ,title ,,vi--,anti-,,cbdc ,surveillance ,/ate ,act ,sec4 #fja4 ,%ort title4 ,sec4 #fjb4 ,prohibition on ,f$]al res]ve banks relat+ to c]ta9 products or s]vices = individuals & prohibition on directly issu+ a c5tral bank digital curr5cy4 ,sec4 #fjc4 ,prohibition on ,f$]al res]ve banks indirectly issu+ a c5tral bank digital curr5cy4 ,sec4 #fjd4 ,prohibition ) respect to c5tral bank digital curr5cy4 ,sec4 #fje4 ,s5se ( ,congress4 ,i ,def9itions2 ,rulemak+2 ,exp$it$ ,regi/ration #aja4 ,def9itions "u ! ,securities ,act ( #aicc ,section #b7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a77 is am5d$ by add+ at ! end ! foll[+3 7#bj7 ,block*a9 ,! t]m block*a9 means-- 7,a7 any te*nology-- 7i7 :]e data is-- 7,i7 %>$ across a network to create a di/ribut$ l$g] ( indep5d5tly v]ifiable transactions or in=mation among network p>ticipants2 7,,ii7 l9k$ us+ cryptography to ma9ta9 ! integrity ( ! di/ribut$ l$g] & to execute o!r functions2 & 7,,iii7 propagat$ among network p>ticipants to rea* cons5sus on ! /ate ( ! di/ribut$ l$g] & any o!r functions2 & 7ii7 compos$ ( s\rce code t is publicly available2 & 7,b7 any simil> te*nology to ! te*nology describ$ 9 subp>agraph 7,a74 7#ba7 ,block*a9 application ,! t]m block*a9 application means any executable s(tw>e t is deploy$ to a block*a9 & compos$ ( s\rce code t is publicly available1 includ+ a sm>t contract or any network ( sm>t contracts1 or o!r simil> te*nology4 7#bb7 ,block*a9 protocol ,! t]m block*a9 protocol means publicly available s\rce code ( a block*a9 t is execut$ by ! network p>ticipants ( a block*a9 to facilitate its function+1 or o!r simil> te*nology4 7#bc7 ,block*a9 sy/em ,! t]m block*a9 sy/em means any block*a91 toge!r ) its block*a9 protocol or any block*a9 application or network ( block*a9 applications4 7#bd7 ,dec5traliz$ gov]nance sy/em 7,a7 ,9 g5]al ,! t]m dec5traliz$ gov]nance sy/em means1 ) respect to a block*a9 sy/em1 any transp>5t1 rules-bas$ sy/em p]mitt+ p]sons to =m cons5sus or rea* agreem5t 9 ! developm5t1 provision1 publication1 ma9t5ance1 or adm9i/ration ( su* block*a9 sy/em1 :]e p>ticipation is n limit$ to1 or "u ! effective control (1 any p]son or gr\p ( p]sons "u common control4 7,b7 ,relation%ip ( p]sons to dec5traliz$ gov]nance sy/ems ,) respect to a dec5traliz$ gov]nance sy/em1 ! dec5traliz$ gov]nance sy/em & any p]sons p>ticipat+ 9 ! dec5traliz$ gov]nance sy/em %all be treat$ z sep>ate p]sons unless su* p]sons are "u common control or act+ pursuant to an agreem5t to act 9 conc]t4 7,c7 ,legal entities = dec5traliz$ gov]nance sy/ems ,! t]m dec5traliz$ gov]nance sy/em %all include a legal entity us$ to implem5t ! rules-bas$ sy/em describ$ 9 subp>agraph 7,a71 provid$ t ! legal entity does n op]ate pursuant to c5traliz$ managem5t4 ,= ! purposes ( ?is subp>agraph1 ! delegation ( m9i/]ial or adm9i/rative au?ority at ! direction ( ! p>ticipants 9 a dec5traliz$ gov]nance sy/em %all n be con/ru$ to be c5traliz$ managem5t4 7#be7 ,digital asset ,! t]m digital asset means any digital repres5tation ( value :i* is record$ on a cryptographically-secur$ di/ribut$ l$g] or o!r simil> te*nology4 7#bf7 ,digital commodity ,! t]m digital commodity has ! mean+ giv5 t t]m "u section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a74 7#bg7 ,digital commodity affiliat$ p]son ,! t]m digital commodity affiliat$ p]son-- 7,a7 means a p]son 7includ+ a digital commodity relat$ p]son7 t1 ) respect to any digital commodity-- 7i7 acquires or has any "r to acquire #e p]c5t or m ( ! total out/&+ units ( su* digital commodity f a digital commodity issu] or an ag5t or und]writ] !re(2 7ii7 is a f\nd] ( ! digital commodity issu]2 or 7iii7 is an executive (fic]1 director1 tru/ee1 g5]al p>tn]1 or p]son s]v+ 9 a simil> capacity ( ! digital commodity issu] or held su* role at any po9t 9 ! previ\s #ab-mon? p]iod2 & 7,b7 does n include a dec5traliz$ gov]nance sy/em4 7#bh7 ,digital commodity issu] 7,a7 ,9 g5]al ,) respect to a digital commodity1 ! t]m digital commodity issu] means any p]son t-- 7i7 issues or causes to be issu$1 or proposes to issue or cause to be issu$1 a unit ( su* digital commodity to a p]son2 or 7ii7 (f]s or sells a "r to a future issuance ( a unit ( su* digital commodity to a p]son4 7,b7 ,prohibition on evasion ,x %all be unlawful = any p]son to kn[+ly evade classification z a digital commodity issu] & facilitate an arrangem5t = ! prim>y purpose ( effect+ an (f]1 sale1 di/ribution1 or o!r issuance ( a digital commodity1 includ+ via any arrangem5t involv+ ! transf] ( intellectual prop]ty associat$ ) ! block*a9 sy/em to :i* ! digital commodity relates4 7#bi7 ,digital commodity relat$ p]son 7,a7 ,9 g5]al ,) respect to a digital commodity issu]1 ! t]m digital commodity relat$ p]son-- 7i7 means a p]son-- 7,i7 t is or 0 9 ! previ\s #f-mon? p]iod a promot]1 s5ior employee1 advisory bo>d memb]1 consultant1 advisor1 or p]son s]v+ 9 a simil> capacity2 or 7,,ii7 t acquires or has any "r to acquire #a p]c5t or m ( ! total out/&+ units ( su* digital commodity f a digital commodity issu] or an ag5t or und]writ] !re(2 & 7ii7 does n include a dec5traliz$ gov]nance sy/em4 7,b7 ,s5ior employee def9$ ,9 ?is p>agraph & ) respect to a digital commodity issu]1 ! t]m s5ior employee means any employee mat]ially involv$ 9 ! managem5t ( ! digital commodity issu]1 includ+ managem5t ( ! developm5t ( ! block*a9 sy/em to :i* ! digital commodity relates4 7#cj7 ,end us] di/ribution 7,a7 ,9 g5]al ,! t]m end us] di/ribution means a di/ribution ( a unit ( a digital commodity t-- 7i7 does n involve an ex*ange ( m ?an a nom9al value ( ca%1 prop]ty1 or o!r assets2 & 7ii7 is di/ribut$ 9 a broad & equitable mann] bas$ on conditions capable ( be+ satisfi$ by any p>ticipant 9 ! block*a9 sy/em1 includ+1 z inc5tive-bas$ rew>ds-- 7,i7 to us]s ( ! digital commodity or any block*a9 sy/em to :i* ! digital commodity relates2 7,,ii7 = activities directly relat$ to ! op]ation ( ! block*a9 sy/em1 su* z m9+1 validat+1 /ak+1 or o!r activity directly ti$ to ! op]ation ( ! block*a9 sy/em2 or 7,,iii7 to ! exi/+ hold]s ( ano!r digital commodity1 9 proportion to ! total units ( su* o!r digital commodity z are held by ea* p]son4 7,b7 ,protocol cons5sus p>ticipation ,! t]m end us] di/ribution includes ! foll[+3 7i7 ,self /ak+ ,! di/ribution ( a unit ( a digital commodity z a programmatic result ( validat+ or /ak+ activity = a block*a9 sy/em's cons5sus me*anism1 includ+ ! /ak+ ( a digital commodity & ! op]ation ( a node or validator = su* activity :]e ! own] ( ! /ak$ digital commodity & op]ator ( ! node or validator are ! same p]son or entity4 7ii7 ,self-cu/odial /ak+ ) a ?ird p>ty ,! di/ribution ( a unit ( a digital commodity z a programmatic result ( validat+ or /ak+ activity = a block*a9 sy/em's cons5sus me*anism1 includ+ ! /ak+ ( a digital commodity & ! op]ation ( a node or validator = su* activity :]e-- 7,i7 ! own] ( ! /ak$ digital commodity & op]ator ( ! node or validator = su* activity are diff]5t p]sons or entities2 & 7,,ii7 ! op]ator ( ! node or validator does n ma9ta9 cu/ody or control ( ! /ak$ digital commodity4 7iii7 ,cu/odial & ancill>y /ak+ s]vices ,subject to ! rules issu$ pursuant to subp>agraph 7,c71 ! provision ( cu/odial or ancill>y /ak+ s]vices enabl+ ! own] ( a digital commodity to p>ticipate 9 validat+ or /ak+ activity = a block*a9 sy/em's cons5sus me*anism t results 9 ! programmatic di/ribution ( a unit ( a digital commodity1 provid$ t su* cu/odial or ancill>y s]vices are exclusively adm9i/rative or m9i/]ial 9 nature4 7,c7 ,rulemak+ to def9e ! cu/odial & ancill>y /ak+ s]vices ,n lat] ?an #bgj days aft] ! date ( ! enactm5t ( ?is p>agraph1 ! ,commission %all issue rules def9+ ! cu/odial & ancill>y /ak+ s]vices describ$ 9 subp>agraph 7,b77iii7 t are exclusively adm9i/rative or m9i/]ial 9 nature1 consi/5t ) :at is necess>y or appropriate = ! public int]e/ or = ! protection ( inve/ors4 7#ca7 ,mature block*a9 sy/em ,! t]m #8mature block*a9 sy/em' means a block*a9 sy/em1 toge!r ) its relat$ digital commodity1 t is n controll$ by any p]son or gr\p ( p]sons "u common control4 7#cb7 ,p]mitt$ paym5t /ableco9 ,! t]m p]mitt$ paym5t /ableco9 means a paym5t /ableco9 7z def9$ 9 section #b ( ! ,,g5ius ,act7 issu$ by a p]mitt$ paym5t /ableco9 issu]4 7#cc7 ,p]mitt$ paym5t /ableco9 issu] ,! t]m p]mitt$ paym5t /ableco9 issu] has ! mean+ giv5 t t]m 9 section #b ( ! ,,g5ius ,act4 4 #ajb4 ,def9itions "u ! ,securities ,ex*ange ,act ( #aicd ,section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a77 is am5d$-- 7#a7 by r$esignat+ ! second p>agraph 7#hj7 7relat+ to fund+ portals7 z p>agraph 7#ha72 & 7#b7 by add+ at ! end ! foll[+3 7#hb7 ,bank ,secrecy ,act ,! t]m ,bank ,secrecy ,act means-- 7,a7 section #ba ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbi;b72 7,b7 *apt] #b ( title ,i ( ,public ,law #ia-ejh 7#ab ,u4,s4,c4 #aiea et seq472 & 7,c7 sub*apt] ,,ii ( *apt] #ec ( title #ca1 ,unit$ ,/ates ,code4 7#hc7 ,additional digital commodity-relat$ t]ms 7,a7 ,securities ,act ( #aicc ,! t]ms block*a9 sy/em1 dec5traliz$ gov]nance sy/em1 digital asset1 digital commodity affiliat$ p]son1 digital commodity issu]1 digital commodity relat$ p]son1 end us] di/ribution1 mature block*a9 sy/em1 p]mitt$ paym5t /ableco91 & p]mitt$ paym5t /ableco9 issu] h ! mean+ giv5 ^? t]ms1 respectively1 "u section #b7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a774 7,b7 ,commodity ,ex*ange ,act ,! t]ms digital commodity1 digital commodity brok]1 digital commodity deal]1 digital commodity ex*ange1 dec5traliz$ f9ance messag+ sy/em1 & dec5traliz$ f9ance trad+ protocol h ! mean+ giv5 ^? t]ms1 respectively1 "u section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a74 4 #ajc4 ,def9itions "u ! ,commodity ,ex*ange ,act 7a7 ,9 g5]al ,section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a7 is am5d$-- 7#a7 9 p>agraph 7#aj7-- 7,a7 9 subp>agraph 7,a7-- 7i7 by r$esignat+ clauses 7iii7 & 7iv7 z clauses 7iv7 & 7v71 respectively2 & 7ii7 by ins]t+ aft] clause 7ii7 ! foll[+3 7iii7 digital commodity2 2 & 7,b7 by r$esignat+ subp>agraph 7,b7 z subp>agraph 7,c7 & ins]t+ aft] subp>agraph 7,a7 ! foll[+3 7,b7 ,exclusion ,= purposes ( ?is p>agraph1 ! t]m trad+ 9 commodity int]e/s %all n include transact+ 9 digital commodities = ! purpose (-- 7i7 act+ z a digital commodity cu/odian2 7ii7 e/abli%+1 ma9ta9+1 or manag+ inv5tory or paym5t in/rum5ts = comm]cial purposes2 or 7iii7 ma9ta9+ or support+ ! op]ation (1 or validat+ transactions on1 a block*a9 sy/em4 2 7#b7 9 p>agraph 7#aa7-- 7,a7 9 subp>agraph 7,a77i7-- 7i7 by r$esignat+ subclauses 7,,iii7 & 7,,iv7 z subclauses 7,,iv7 & 7,v71 respectively2 & 7ii7 by ins]t+ aft] subclause 7,,ii7 ! foll[+3 7,,iii7 digital commodity2 2 & 7,b7 by r$esignat+ subp>agraph 7,b7 z subp>agraph 7,c7 & ins]t+ aft] subp>agraph 7,a7 ! foll[+3 7,b7 ,exclusion ,= purposes ( ?is p>agraph1 ! t]m trad+ 9 commodity int]e/s %all n include transact+ 9 digital commodities = ! purpose (-- 7i7 act+ z a digital commodity cu/odian2 7ii7 e/abli%+1 ma9ta9+1 or manag+ inv5tory or paym5t in/rum5ts = comm]cial purposes2 or 7iii7 ma9ta9+ or support+ ! op]ation (1 or validat+ transactions on1 a block*a9 sy/em4 2 7#c7 9 p>agraph 7#ab77;,a77i7-- 7,a7 9 subclause 7,,ii71 by add+ at ! end a semicolon2 7,b7 by r$esignat+ subclauses 7,,iii7 & 7,,iv7 z subclauses 7,,iv7 & 7,v71 respectively2 & 7,c7 by ins]t+ aft] subclause 7,,ii7 ! foll[+3 7,,iii7 a digital commodity2 2 7#d7 by r$esignat+ p>agraphs 7#af7 ?r\gh 7#ea7 z p>agraphs 7#ag7 ?r\gh 7#eb71 respectively1 & ins]t+ aft] p>agraph 7#ae7 ! foll[+3 7#af7 ,t]ms relat$ to digital commodities 7,a7 ,associat$ p]son ( a digital commodity brok] 7i7 ,9 g5]al ,except z provid$ 9 clause 7ii71 ! t]m associat$ p]son ( a digital commodity brok] means a p]son :o is associat$ ) a digital commodity brok] z a p>tn]1 (fic]1 employee1 or ag5t 7or any p]son occupy+ a simil> /atus or p]=m+ simil> functions7 9 any capacity t involves-- 7,i7 ! solicitation or acceptance ( an ord] = ! pur*ase or sale ( a digital commodity2 or 7,,ii7 ! sup]vision ( any p]son engag$ 9 ! solicitation or acceptance ( an ord] = ! pur*ase or sale ( a digital commodity4 7ii7 ,exclusion ,! t]m associat$ p]son ( a digital commodity brok] does n include any p]son associat$ ) a digital commodity brok] ! functions ( :i* are solely cl]ical or m9i/]ial4 7,b7 ,associat$ p]son ( a digital commodity deal] 7i7 ,9 g5]al ,except z provid$ 9 clause 7ii71 ! t]m associat$ p]son ( a digital commodity deal] means a p]son :o is associat$ ) a digital commodity deal] z a p>tn]1 (fic]1 employee1 or ag5t 7or any p]son occupy+ a simil> /atus or p]=m+ simil> functions7 9 any capacity t involves-- 7,i7 ! solicitation or acceptance ( a contract = ! pur*ase or sale ( a digital commodity2 or 7,,ii7 ! sup]vision ( any p]son engag$ 9 ! solicitation or acceptance ( a contract = ! pur*ase or sale ( a digital commodity4 7ii7 ,exclusion ,! t]m associat$ p]son ( a digital commodity deal] does n include any p]son associat$ ) a digital commodity deal] ! functions ( :i* are solely cl]ical or m9i/]ial4 7,c7 ,bank ,secrecy ,act ,! t]m ,bank ,secrecy ,act means-- 7i7 section #ba ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbi;b72 7ii7 *apt] #b ( title ,i ( ,public ,law #ia-ejh 7#ab ,u4,s4,c4 #aiea et seq472 & 7iii7 sub*apt] ,,ii ( *apt] #ec ( title #ca1 ,unit$ ,/ates ,code4 7,d7 ,dec5traliz$ f9ance messag+ sy/em 7i7 ,9 g5]al ,! t]m dec5traliz$ f9ance messag+ sy/em means a s(tw>e application t provides a us] ) ! ability to create or submit an in/ruction1 communication1 or message to a dec5traliz$ f9ance trad+ protocol = ! purpose ( execut+ a transaction by ! us]4 7ii7 ,additional requirem5ts ,! t]m dec5traliz$ f9ance messag+ sy/em does n include any sy/em t provides any p]son o!r ?an ! us] ) control ov]-- 7,i7 ! funds ( ! us]2 or 7,,ii7 ! execution ( ! transaction ( ! us]4 7,e7 ,dec5traliz$ f9ance trad+ protocol 7i7 ,9 g5]al ,! t]m dec5traliz$ f9ance trad+ protocol means a block*a9 sy/em ?r\gh :i* multiple p>ticipants c execute a f9ancial transaction-- 7,i7 9 accordance ) an automat$ rule or algori?m t is pr$et]m9$ & non-discretion>y2 & 7,,ii7 )\t reliance on any o!r p]son to ma9ta9 control ( ! digital assets ( ! us] dur+ any "p ( ! f9ancial transaction4 7ii7 ,exclusions 7,i7 ,9 g5]al ,! t]m dec5traliz$ f9ance trad+ protocol does n include a block*a9 sy/em if-- 7aa7 a p]son or gr\p ( p]sons "u common control or act+ pursuant to an agreem5t to act 9 conc]t has ! au?ority1 directly or indirectly1 ?r\gh any contract1 arrangem5t1 und]/&+1 relation%ip1 or o!rwise1 to control or mat]ially alt] ! functionality1 op]ation1 or rules ( cons5sus or agreem5t ( ! block*a9 sy/em2 or 7bb7 ! block*a9 sy/em does n op]ate1 execute1 & en=ce its op]ations & transactions bas$ solely on pre-e/abli%$1 transp>5t rules encod$ directly )9 ! s\rce code ( ! block*a9 sy/em4 7,,ii7 ,special rule ,= purposes ( subclause 7,i71 a dec5traliz$ gov]nance sy/em %all n be consid]$ to be a p]son or a gr\p ( p]sons "u common control or act+ pursuant to an agreem5t to act 9 conc]t4 7,f7 ,digital commodity 7i7 ,9 g5]al ,! t]m digital commodity means a digital asset t is intr9sically l9k$ to a block*a9 sy/em1 & ! value ( :i* is d]iv$ f or is reasonably expect$ to be d]iv$ f ! use ( ! block*a9 sy/em4 7ii7 ,relation%ip to a block*a9 sy/em ,= purposes ( ?is subp>agraph1 a digital asset is intr9sically l9k$ to a block*a9 sy/em if ! digital asset is directly relat$ to ! functionality or op]ation ( ! block*a9 sy/em or to ! activities or s]vices = :i* ! block*a9 sy/em is creat$ or utiliz$1 includ+ :]e ! digital asset is-- 7,i7 issu$ or g5]at$ by ! programmatic function+ ( ! block*a9 sy/em2 7,,ii7 us$ to transf] value betwe5 p>ticipants 9 ! block*a9 sy/em2 7,,iii7 us$ to access ! activities or s]vices ( ! block*a9 sy/em2 7,,iv7 us$ to p>ticipate 9 ! dec5traliz$ gov]nance sy/em ( ! block*a9 sy/em2 7,v7 us$ or remov$ f circulation 9 :ole or 9 "p to pay fees or o!rwise v]ify or validate transactions on ! block*a9 sy/em2 7,,vi7 us$ z paym5t or inc5tive to p>ticipants 9 ! block*a9 sy/em to engage 9 ! activities ( ! block*a9 sy/em1 provide s]vices to o!r p>ticipants 9 ! block*a9 sy/em1 or o!rwise p>ticipate 9 ! functionality ( ! block*a9 sy/em2 or 7,,vii7 us$ z paym5t or inc5tive to p>ticipants 9 ! block*a9 sy/em to validate transactions1 secure ! block*a9 sy/em1 provide computational s]vices1 ma9ta9 or di/ribute in=mation1 or o!rwise p>ticipate 9 ! op]ations ( ! block*a9 sy/em4 7iii7 ,exclusion ,! t]m digital commodity does n include any ( ! foll[+3 7,i7 ,security 7aa7 ,any security1 o!r ?an a note1 an inve/m5t contract1 or a c]tificate ( int]e/ or p>ticipation 9 any pr(it-%>+ agreem5t4 7bb7 ,a note1 an inve/m5t contract1 or a c]tificate ( int]e/ or p>ticipation 9 any pr(it-%>+ agreem5t t-- 7,,aa7 repres5ts or gives ! hold] an own]%ip int]e/ or o!r int]e/ 9 ! rev5ues1 pr(its1 obligations1 debts1 assets1 or assets or debts to be acquir$ ( ! issu] ( ! digital asset or ano!r p]son 7o!r ?an a dec5traliz$ gov]nance sy/em72 7,,bb7 makes ! hold] a cr$itor ( ! issu] ( ! digital asset or ano!r p]son2 or 7,,cc7 repres5ts or gives ! hold] ! "r to receive int]e/ or ! return ( pr9cipal f ! issu] ( ! digital asset or ano!r p]son4 7,,ii7 ,security d]ivative ,a digital asset t1 bas$ on its t]ms & o!r *>act]i/ics1 is1 repres5ts1 or is functionally equival5t to an agreem5t1 contract1 or transaction t is-- 7aa7 a security future1 z def9$ 9 section #b;a ( ! ,securities ,act ( #aicc2 7bb7 a security-bas$ swap1 z def9$ 9 section #b;a ( ! ,securities ,act ( #aicc2 7cc7 a put1 call1 /raddle1 option1 or privilege on any security1 c]tificate ( deposit1 or gr\p or index ( securities 7includ+ any int]e/ !re9 or bas$ on ! value !re(71 z def9$ 9 section #b;a ( ! ,securities ,act ( #aicc2 or 7dd7 a put1 call1 /raddle1 option1 or privilege on any security1 z def9$ 9 section #b;a ( ! ,securities ,act ( #aicc4 7,,iii7 ,p]mitt$ paym5t /ableco9 ,a digital asset t is a p]mitt$ paym5t /ableco94 7,,iv7 ,bank+ deposit 7aa7 ,a deposit 7z def9$ "u section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac771 reg>dless ( ! te*nology us$ to record ! deposit4 7bb7 ,an acc\nt 7z def9$ 9 section #aja ( ! ,f$]al ,cr$it ,union ,act 7#ab ,u4,s4,c4 #ageb771 reg>dless ( ! te*nology us$ to record ! acc\nt4 7,v7 ,commodity ,a digital asset t ref]5ces1 repres5ts an int]e/ 91 or is functionally equival5t to-- 7aa7 an agricultural commodity2 7bb7 an exclud$ commodity1 o!r ?an a security2 or 7cc7 an exempt commodity1 o!r ?an ! digital commodity itself1 z %all be fur!r def9$ by ! ,commission4 7,,vi7 ,commodity d]ivative ,a digital asset t1 bas$ on its t]ms & o!r *>act]i/ics1 is1 repres5ts1 or is functionally equival5t to an agreem5t1 contract1 or transaction t is-- 7aa7 a contract ( sale ( a commodity = future deliv]y or an option !reon2 7bb7 a security futures product2 7cc7 a swap2 7dd7 an agreem5t1 contract1 or transaction describ$ 9 section #b7;c77#b77;,c77i7 or section #b7;c77#b77;,d77i72 7ee7 a commodity option au?oriz$ "u section #d;c2 or 7ff7 a lev]age transaction au?oriz$ "u section #ai4 7,,vii7 ,pool$ inve/m5t vehicle 7aa7 ,9 g5]al ,a digital asset n describ$ by subclause 7,i7 t1 bas$ on its t]ms & o!r *>act]i/ics1 is1 repres5ts1 or is functionally equival5t to an int]e/ 9-- 7,,aa7 a commodity pool1 z def9$ 9 ?is ,act2 or 7,,bb7 a pool$ inve/m5t vehicle4 7bb7 ,pool$ inve/m5t vehicle def9$ ,9 ?is subclause1 ! t]m pool$ inve/m5t vehicle means-- 7,,aa7 any inve/m5t company z def9$ 9 section #c7;a7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#c7;a772 7,,bb7 any company 7z def9$ 9 section #b ( su* ,act 7#ae ,u4,s4,c4 #hj;a-#b77 t w\ld be an inve/m5t company "u section #c7;a7 ( su* ,act b = ! exclusions provid$ f t def9ition by section #c7;c7 ( su* ,act1 if = purposes ( ?is subclause ! company 7 assum$ to be an issu] 7z def9$ 9 section #b ( su* ,act72 or 7,,cc7 any entity or p]son t is n an inve/m5t company b holds or w hold assets o!r ?an securities4 7,,viii7 ,good1 collectible1 & o!r non-commodity asset ,a digital asset t has value1 utility1 or significance beyond its m]e exi/5ce z a digital asset1 includ+ ! digital equival5t ( a tangible or intangible good1 su* z-- 7aa7 a "w ( art1 a musical composition1 a lit]>y "w1 or o!r intellectual prop]ty2 7bb7 collectibles1 m]*&ise1 virtual l&1 & video game assets2 7cc7 aff9ity1 rew>ds1 or loyalty po9ts1 includ+ airl9e miles or cr$it c>d po9ts1 t are n prim>ily speculative 9 nature2 or 7dd7 rights1 lic5ses1 & tickets4 7iv7 ,rule ( con/ruction ,no presumption %all exi/ t a digital asset is a security1 nor %all a digital asset be exclud$ f be+ a digital commodity pursuant to clause 7iii77,i71 solely due to-- 7,i7 ! digital asset provid+ vot+ or economic rights ) respect to ! block*a9 sy/em to :i* ! digital asset relates or ! dec5traliz$ gov]nance sy/em ( ! block*a9 sy/em to :i* ! digital asset relates2 7,,ii7 ! value ( ! digital asset hav+ ! pot5tial to appreciate or depreciate 9 response to ! ef=ts1 op]ations1 or f9ancial p]=mance ( ! block*a9 sy/em to :i* ! digital asset relates or ! dec5traliz$ gov]nance sy/em ( ! block*a9 sy/em to :i* ! digital asset relates2 or 7,,iii7 ! value ( ! digital asset appreciat+ or depreciat+ due to ! use ( ! block*a9 sy/em to :i* ! digital asset relates or ! dec5traliz$ gov]nance sy/em ( ! block*a9 sy/em to :i* ! digital asset relates4 7,g7 ,digital commodity brok] 7i7 ,9 g5]al ,! t]m digital commodity brok] means any p]son :o1 z a regul> bus9ess-- 7,i7 is engag$ 9-- 7aa7 solicit+ or accept+ an ord] f a cu/om] =-- 7,,aa7 ! pur*ase or sale ( a digital commodity2 or 7,,bb7 an agreem5t1 contract1 or transaction describ$ 9 section #b7;c77#b77;,d77iv72 & 7bb7 9 conjunction ) ! activities 9 item 7aa71 accepts or ma9ta9s control ov]-- 7,,aa7 ! funds ( any cu/om]2 or 7,,bb7 ! execution ( any transaction ( a cu/om]2 7,,ii7 is engag$ 9 solicit+ or accept+ ord]s f a cu/om] = ! pur*ase or sale ( a unit ( a digital commodity on or subject to ! rules ( a regi/]$ entity2 or 7,,iii7 is regi/]$ ) ! ,commission z a digital commodity brok]4 7ii7 ,exceptions ,! t]m #8digital commodity brok]' does n include a p]son solely because ! p]son-- 7,i7 solicits or accepts an ord] describ$ 9 clause 7i77,i77aa77,,aa7 f a cu/om] :o is an eligible contract p>ticipant2 7,,ii7 ent]s into #a or m digital commodity transactions t are attributable or solely incid5tal to mak+1 s5d+1 receiv+1 or facilitat+ paym5ts1 :e!r involv+ a paym5t s]vice provid] or on a pe]-to-pe] basis2 or 7,,iii7 is a bank 7z def9$ "u section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd7 engag+ 9 c]ta9 bank+ activities ) respect to a digital commodity 9 ! same or a simil> mann] z a bank is exclud$ f ! def9ition ( a brok] "u su* section1 z det]m9$ by ! ,commission4 7iii7 ,fur!r def9ition ,! ,commission1 by rule or regulation1 may exclude f ! t]m digital commodity brok] any p]son or class ( p]sons if ! ,commission det]m9es t ! rule or regulation w effectuate ! purposes ( ?is ,act4 7,h7 ,digital commodity deal] 7i7 ,9 g5]al ,! t]m digital commodity deal] means any p]son :o1 z a regul> bus9ess-- 7,i7 is1 or (f]s to be a c\nt]p>ty to a p]son = ! pur*ase or sale ( a digital commodity z a regul> bus9ess1 & 9 conjunction ) ! activities1 accepts or ma9ta9s control ov] ! funds ( any c\nt]p>ty2 or 7,,ii7 is regi/]$ ) ! ,commission z a digital commodity deal]4 7ii7 ,exception ,! t]m digital commodity deal] does n include a p]son solely because ! p]son-- 7,i7 is or (f]s to be a c\nt]p>ty to a p]son :o is an eligible contract p>ticipant2 7,,ii7 ent]s into a digital commodity transaction ) an eligible contract p>ticipant2 7,,iii7 ent]s into a digital commodity transaction on or ?r\gh a regi/]$ digital commodity ex*ange1 ) a regi/]$ digital commodity brok]1 or ?r\gh a dec5traliz$ f9ance trad+ protocol2 7,,iv7 ent]s into a digital commodity transaction = ! p]son's own acc\nt1 ei!r individually or 9 a fiduci>y capacity1 b n z a "p ( a regul> bus9ess2 7,v7 ent]s into #a or m digital commodity transactions t are attributable or solely incid5tal to mak+1 s5d+1 receiv+1 or facilitat+ paym5ts1 :e!r involv+ a paym5t s]vice provid] or on a pe]-to-pe] basis2 or 7,,vi7 is a bank 7z def9$ "u section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd7 engag+ 9 c]ta9 bank+ activities ) respect to a digital commodity 9 ! same or a simil> mann] z a bank is exclud$ f ! def9ition ( a deal] "u section #c7;a77#e7 ( su* ,act1 z det]m9$ by ! ,commission4 7iii7 ,fur!r def9ition ,! ,commission1 by rule or regulation1 may exclude f ! t]m digital commodity deal] any p]son or class ( p]sons if ! ,commission det]m9es t ! rule or regulation w effectuate ! purposes ( ?is ,act4 7,i7 ,digital commodity ex*ange ,! t]m digital commodity ex*ange means a trad+ facility t (f]s or seeks to (f] a ca% or spot m>ket 9 at lea/ #a digital commodity4 7,j7 ,mix$ digital asset transaction ,! t]m mix$ digital asset transaction means a transaction 9 :i* a digital commodity is trad$ = a security4 7,k7 ,t]ms def9$ "u ! ,securities ,act ( #aicc ,! t]ms block*a9 sy/em1 dec5traliz$ gov]nance sy/em1 digital asset1 digital commodity issu]1 digital commodity affiliat$ p]son1 digital commodity relat$ p]son1 end us] di/ribution1 mature block*a9 sy/em1 p]mitt$ paym5t /ableco91 & p]mitt$ paym5t /ableco9 issu] h ! mean+ giv5 ^? t]ms1 respectively1 "u section #b7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a774 2 & 7#e7 9 p>agraph 7#da7 7z s r$esignat$ by p>agraph 7#d7 ( ?is subsection7-- 7,a7 by /rik+ & at ! end ( subp>agraph 7,e72 7,b7 by /rik+ ! p]iod at ! end ( subp>agraph 7,f7 & ins]t+ 2 &2 & 7,c7 by add+ at ! end ! foll[+3 7,g7 a digital commodity ex*ange regi/]$ "u section #e;i4 4 7b7 ,con=m+ am5dm5ts 7#a7 ,ea* ( ! foll[+ provisions ( law is am5d$ by /rik+ #a;a7#ah7 & ins]t+ #a;a7#ai73 7,a7 ,section #ds7h77#e77;,a77i7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #fs7h77#e77;,a77i774 7,b7 ,section #e7;e7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;e7e774 7,c7 ,section #f7;g77#e77;,b7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;f7g77#e77;,b774 7,d7 ,section #ae;,f7h77#e77;,a77i7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho-#aj7;h77#e77;,a77i774 7#b7 ,section #geb ( ! ,wall ,/reet ,transp>5cy & ,acc\ntability ,act ( #bjaj 7#ae ,u4,s4,c4 #hcbe7 is am5d$ by /rik+ #a;a7#ci7 & ins]t+ #a;a7#dj74 7#c7 ,section #ds7f77#a77;,d7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #fs7f77#a77;,d77 is am5d$ by /rik+ #a;a7#dg77;,a7 & ins]t+ #a;a7#dh77;,a74 7#d7 ,ea* ( ! foll[+ provisions ( ! ,commodity ,ex*ange ,act is am5d$ by /rik+ #a;a7#dg77;,a77v7 & ins]t+ #a;a7#dh77;,a77v73 7,a7 ,section #dt7b77#a77;,c7 7#g ,u4,s4,c4 #ft7b77#a77;,c774 7,b7 ,section #e7;d77#bc7 7#g ,u4,s4,c4 #g7;d77#bc774 7,c7 ,section #e;b7k77#c7 7#g ,u4,s4,c4 #g;a-#a7k77#c774 7,d7 ,section #e;h7f77#aj77;,a77iii7 7#g ,u4,s4,c4 #g;b-#c7;f77#aj77;,a77iii774 7#e7 ,section #ba7;f77#d77;,c7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #bd;a7f77#d77;,c77 is am5d$ by /rik+ #a;a7#dh7 & ins]t+ #a;a7#di74 7#f7 ,section #djc ( ! ,legal ,c]ta9ty = ,bank ,products ,act ( #bjjj 7#g ,u4,s4,c4 #bg;a7 is am5d$-- 7,a7 9 subsection 7a77#b71 by /rik+ #a;a7#dg77;,a77v7 & ins]t+ #a;a7#dh77;,a77v72 & 7,b7 9 ea* ( subsections 7b77#a7 & 7c77#b71 by /rik+ #a;a7#dg7 & ins]t+ #a;a7#dh74 7#g7 ,section #gab ( ! ,wall ,/reet ,transp>5cy & ,acc\ntability ,act ( #bjaj 7#ae ,u4,s4,c4 #hcjb7 is am5d$-- 7,a7 9 subsection 7a77#h71 by /rik+ #a;a7#dg77;,d7 ea* place x appe>s & ins]t+ #a;a7#dh77;,d72 & 7,b7 9 subsection 7d77#a71 by /rik+ #a;a7#dg77;,a77v7 ea* place x appe>s & ins]t+ #a;a7#dh77;,a77v74 #ajd4 ,def9itions "u ?is ,act ,9 ?is ,act3 7#a7 ,def9itions "u ! ,commodity ,ex*ange ,act ,! t]ms dec5traliz$ f9ance messag+ sy/em1 dec5traliz$ f9ance trad+ protocol1 digital commodity1 digital commodity brok]1 digital commodity deal]1 digital commodity ex*ange1 & mix$ digital asset transaction h ! mean+ giv5 ^? t]ms1 respectively1 "u section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a74 7#b7 ,def9itions "u ! ,securities ,act ( #aicc ,! t]ms block*a91 block*a9 sy/em1 block*a9 protocol1 dec5traliz$ gov]nance sy/em1 digital asset1 digital commodity issu]1 end us] di/ribution1 mature block*a9 sy/em1 p]mitt$ paym5t /ableco91 & p]mitt$ paym5t /ableco9 issu] h ! mean+ giv5 ^? t]ms1 respectively1 "u section #b7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a774 7#c7 ,def9itions "u ! ,securities ,ex*ange ,act ( #aicd ,! t]ms ,bank ,secrecy ,act1 securities laws1 & self-regulatory organization h ! mean+ giv5 ^? t]ms1 respectively1 "u section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a774 #aje4 ,rulemak+s 7a7 ,def9itions ,! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all jo9tly issue rules to fur!r def9e ! foll[+ t]ms3 7#a7 ,! t]ms-- 7,a7 block*a91 block*a9 application1 block*a9 sy/em1 block*a9 protocol1 dec5traliz$ gov]nance sy/em1 digital commodity affiliat$ p]son1 digital commodity issu]1 digital commodity relat$ p]son1 end us] di/ribution1 & mature block*a9 sy/em1 z def9$ "u section #b7;a7 ( ! ,securities ,act ( #aicc2 7,b7 unilat]al au?ority1 z su* t]m is us$ 9 section #db ( ! ,securities ,ex*ange ,act ( #aicd & section #a;a ( ! ,commodity ,ex*ange ,act2 & 7,c7 programmatic function+1 z su* t]m is us$ 9 sections #d;,c ( ! ,securities ,act ( #aicc1 section #db ( ! ,securities ,ex*ange ,act ( #aicd1 & section #a;a ( ! ,commodity ,ex*ange ,act4 7#b7 ,! t]ms digital commodity1 dec5traliz$ f9ance messag+ sy/em1 & dec5traliz$ f9ance trad+ protocol1 z def9$ "u section #a;a ( ! ,commodity ,ex*ange ,act4 7b7 ,jo9t rulemak+ = mix$ digital asset transactions ,! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission %all jo9tly issue rules applicable to mix$ digital asset transactions "u ?is ,act & ! am5dm5ts made by ?is ,act1 includ+ by fur!r def9+ su* t]m4 7c7 ,protection ( self-,cu/ody 7#a7 ,9 g5]al ,a ,unit$ ,/ates individual %all reta9 ! "r to-- 7,a7 ma9ta9 a h>dw>e wallet or s(tw>e wallet = ! purpose ( facilitat+ ! individual's own lawful cu/ody ( digital assets2 & 7,b7 engage 9 direct1 pe]-to-pe] transactions 9 digital assets ) ano!r individual or entity = ! individual's own lawful purposes us+ a h>dw>e wallet or s(tw>e wallet1 if-- 7i7 su* o!r individual or entity is n a f9ancial in/itution 7z def9$ 9 section #ecab ( title #ca1 ,unit$ ,/ates ,code72 & 7ii7 ! transactions d n involve any prop]ty or int]e/s 9 prop]ty t are block$ pursuant to1 or are o!rwise prohibit$ by1 ,unit$ ,/ates sanctions4 7#b7 ,application ,?is subsection-- 7,a7 applies solely to p]sonal use by individuals2 & 7,b7 does n apply to individuals act+ 9 a cu/odial or fiduci>y capacity = o!rs4 7#c7 ,rule ( con/ruction ,no?+ 9 ?is subsection %all be con/ru$ to limit ! au?ority ( ! ,secret>y ( ! ,treasury1 ! ,securities & ,ex*ange ,commission1 ! ,commodity ,futures ,trad+ ,commission1 ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 ! ,comptroll] ( ! ,curr5cy1 ! ,f$]al ,deposit ,insurance ,corporation1 or ! ,national ,cr$it ,union ,adm9i/ration to c>ry out any en=cem5t action or special measure au?oriz$ "u applicable law1 includ+-- 7,a7 ! ,bank ,secrecy ,act1 section #igad ( ! ,combat+ ,russian ,money ,laund]+ ,act 7#ca ,u4,s4,c4 #ecah;,a note71 & section #gbac;,a ( ! ,f5tanyl ,sanctions ,act 7#ba ,u4,s4,c4 #bcac;a72 or 7,b7 any o!r law relat+ to illicit f9ance1 money laund]+1 t]rorism f9anc+1 or ,unit$ ,/ates sanctions4 7d7 ,jo9t rulemak+1 proc$ures1 or guidance = deli/+ ,n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is ,act1 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all jo9tly issue rules1 proc$ures1 or guidance 7z det]m9$ appropriate by ! ,commissions7 reg>d+ ! process to deli/ an asset = trad+ "u section #ajf if ! ,commissions det]m9e t ! li/+ is inconsi/5t ) ! ,commodity ,ex*ange ,act1 ! securities laws 7includ+ regulations "u ^? laws71 or ?is ,act4 7e7 ,jo9t rules = portfolio m>g9+ det]m9ations 7#a7 ,9 g5]al ,n lat] ?an #cfj days aft] ! date ( ! enactm5t ( ?is ,act1 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all jo9tly issue rules describ+ ! process = p]sons regi/]$ ) ei!r su* ,commission to seek a jo9t ord] or det]m9ation ) respect to m>g91 cu/om] protection1 segregation1 or o!r requirem5ts z necess>y to facilitate portfolio m>g9+ ( securities 7includ+ relat$ ext5sions ( cr$it71 security-bas$ swaps1 contracts = future deliv]y1 options on a contract = future deliv]y1 swaps1 & digital commodities1 or any subset !re(1 9-- 7,a7 a securities acc\nt c>ri$ by a regi/]$ brok] or deal] or a security-bas$ swap acc\nt c>ri$ by a regi/]$ security-bas$ swap deal]2 7,b7 a futures or cle>$ swap acc\nt c>ri$ by a regi/]$ futures commission m]*ant2 7,c7 a swap acc\nt c>ri$ by a swap deal]2 or 7,d7 a digital commodity acc\nt c>ri$ by a regi/]$ digital commodity brok] or digital commodity deal] t is also regi/]$ 9 su* o!r capacity z is necess>y to also c>ry ! o!r cu/om] or c\nt]p>ty positions be+ held 9 ! acc\nt4 7#b7 ,process ,) respect to a jo9t ord] or det]m9ation describ$ 9 p>agraph 7#a71 ! rules requir$ to be issu$ pursuant to p>agraph 7#a7 %all require-- 7,a7 ! jo9t ord] or det]m9ation to be issu$ only if ! ord] or det]m9ation is 9 ! public int]e/ & provides = ! appropriate protection ( cu/om]s2 7,b7 applicants to file a /&>d application1 9 a =m & mann] det]m9$ by ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission1 :i* %all include ! in=mation necess>y to make ! jo9t ord] or det]m9ation2 7,c7 ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission to make a f9al det]m9ation n lat] ?an #bgj days aft] ! fil+ ( a complet$ application2 7,d7 ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission to consid] ! public int]e/ ( ! jo9t ord] or det]m9ation ?r\gh ! solicitation ( public comm5ts2 & 7,e7 ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission to consult ) o!r relevant =eign or dome/ic regulators1 includ+ ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 ! ,f$]al ,deposit ,insurance ,corporation1 & ! ,(fice ( ! ,comptroll] ( ! ,curr5cy1 z appropriate4 7f7 ,capital requirem5ts to address nett+ agreem5ts ,no lat] ?an #cfj days foll[+ ! date ( enactm5t ( ?is ,act1 ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 ! ,comptroll] ( ! ,curr5cy1 & ! ,f$]al ,deposit ,insurance ,corporation %all develop risk-bas$ & lev]age capital requirem5ts = insur$ depository in/itutions1 depository in/itution hold+ companies1 & nonbank f9ancial companies sup]vis$ by ! ,bo>d ( ,gov]nors t address nett+ agreem5ts t provide = t]m9ation & close-out nett+ across multiple types ( f9ancial transactions1 consi/5t ) subsection 7e71 9 ! ev5t ( a c\nt]p>ty's default4 #ajf4 ,exp$it$ regi/ration = digital commodity ex*anges1 brok]s1 & deal]s2 provisional /atus 7a7 ,regi/ration 7#a7 ,9 g5]al ,unless exempt$ f regi/ration1 a p]son %all n act z a digital commodity brok]1 digital commodity deal]1 or digital commodity ex*ange aft] ! end ( ! #ij-;day p]iod beg9n+ on ! date ! process describ$ 9 p>agraph 7#b7 is adopt$ by ! ,commodity ,futures ,trad+ ,commission1 unless1 z ! case may be1 ! p]son is regi/]$ z a-- 7,a7 digital commodity brok] pursuant to section #du ( ! ,commodity ,ex*ange ,act2 7,b7 digital commodity deal] pursuant to section #du ( ! ,commodity ,ex*ange ,act2 or 7,c7 digital commodity ex*ange pursuant to section #e;i ( ! ,commodity ,ex*ange ,act4 7#b7 ,exp$it$ process ,)9 #ahj days aft] ! date ( ! enactm5t ( ?is ,act1 ! ,commodity ,futures ,trad+ ,commission %all adopt1 by rule1 regulation1 or ord]1 a process = exp$it$ regi/ration ( p]sons requir$ to be regi/]$ pursuant to p>agraph 7#a74 7b7 ,provisional /atus 7#a7 ,9 g5]al ,a p]son :o is regi/]$ 9 accordance ) subsection 7a7 ( ?is section %all be 9 provisional /atus until-- 7,a7 9 ! case ( a digital commodity brok] or deal]1 #bgj days aft] ! f9al effective date ( ! rulemak+s requir$ "u section #du ( ! ,commodity ,ex*ange ,act2 or 7,b7 9 ! case ( a digital commodity ex*ange1 #bgj days aft] ! f9al effective date ( ! rulemak+s requir$ "u section #e;i ( su* ,act4 7#b7 ,paym5t ( fees ,a p]son 9 provisional /atus %all pay all fees & p5alties requir$ "u section #daj4 7c7 ,op]ations prior to regulations 7#a7 ,requirem5ts ,a p]son 9 provisional /atus %all be subject to ! requirem5ts ( ?is section & ! ,commodity ,ex*ange ,act & any rules or regulations promulgat$ "u ?is section or ! ,commodity ,ex*ange ,act1 z applicable4 7#b7 ,li/+s 7,a7 ,9 g5]al ,except z provid$ 9 subp>agraph 7,b71 a p]son 9 provisional /atus may cont9ue to (f]1 solicit1 trade1 facilitate1 execute1 cle>1 report1 or o!rwise deal 9 any digital asset (f]$ on or ?r\gh ! facilities ( ! p]son be=e ! date ( regi/ration "u ?is section1 until su* "t z ! jo9t rulemak+ on def9itions requir$ "u section #aje7;a7 is effective4 7,b7 ,deli/+ ,be=e ! effective date ( ! jo9t rulemak+ on def9itions "u section #aje7;a71 a p]son 9 provisional /atus %all cease (f]+1 solicit+1 trad+1 facilitat+1 execut+1 cle>+1 report+1 or o!rwise deal+ 9 any digital asset requir$ to be deli/$ pursuant to a jo9t deli/+ process e/abli%$ "u section #aje7;d74 7#c7 ,exemptive au?ority ,9 ord] to promote responsible innovation & fair competition1 or protect cu/om]s1 ! ,commodity ,futures ,trad+ ,commission may exempt any p]sons or class ( p]sons regi/]$ pursuant to subsection 7a7 & 9 provisional /atus pursuant to subsection 7b7 f any requirem5ts ( ?is section or ! ,commodity ,ex*ange ,act or any rules or regulations promulgat$ "u ?is section or ! ,commodity ,ex*ange ,act1 z applicable4 7d7 ,cu/om] disclosure be=e regi/ration 7#a7 ,9 g5]al ,beg9n+ #cj days aft] ! date ( ! enactm5t ( ?is ,act1 any p]son act+ z a digital commodity ex*ange1 digital commodity brok]1 or digital commodity deal] %all disclose to ! cu/om]s ( ! p]son s act+1 9 ! disclosure docum5ts1 (f]+ docum5ts1 & promotional mat]ial ( ! p]son s act+1 9 a prom95t mann]1 t ! p]son is n regi/]$ ) or regulat$ by ! ,commodity ,futures ,trad+ ,commission4 7#b7 ,expiration ,p>agraph 7#a7 ( ?is subsection %all n apply to any p]son :o regi/]s pursuant to subsection 7a74 #ajg4 ,commodity ,ex*ange ,act & securities laws sav+s provisions 7a7 ,9 g5]al ,no?+ 9 ?is ,act %all affect or apply to1 or be int]pret$ to affect or apply to-- 7#a7 any agreem5t1 contract1 or transaction t is subject to ! ,commodity ,ex*ange ,act z-- 7,a7 a contract ( sale ( a commodity = future deliv]y or an option on su* a contract2 7,b7 a swap2 7,c7 a security futures product2 7,d7 an option au?oriz$ "u section #d;c ( su* ,act2 7,e7 an agreem5t1 contract1 or transaction describ$ 9 section #b7;c77#b77;,c77i7 ( su* ,act2 or 7,f7 a lev]age transaction au?oriz$ "u section #ai ( su* ,act2 7#b7 any agreem5t1 contract1 or transaction t is subject to ! securities laws z-- 7,a7 a security-bas$ swap2 7,b7 a security futures product2 or 7,c7 an option on or bas$ on ! value ( a security2 or 7#c7 ! activities ( any p]son ) respect to any su* agreem5t1 contract1 or transaction4 7b7 ,prohibitions on spot digital commodity entities ,no?+ 9 ?is ,act au?orizes1 or %all be int]pret$ to au?orize1 a digital commodity ex*ange1 digital commodity brok]1 or digital commodity deal] to engage 9 any activities involv+ any transaction1 contract1 or agreem5t describ$ 9 subsection 7a77#a71 solely by virtue ( be+ regi/]$ z a digital commodity ex*ange1 digital commodity brok]1 or digital commodity deal]4 7c7 ,def9itions ,9 ?is section1 ea* t]m %all h ! mean+ provid$ 9 ! ,commodity ,ex*ange ,act or ! regulations prescrib$ "u su* ,act4 #ajh4 ,adm9i/rative requirem5ts ,section #d;c7a7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #f;c7a77 is am5d$-- 7#a7 9 p>agraph 7#c7-- 7,a7 9 subp>agraph 7,b71 by /rik+ or at ! end2 7,b7 9 subp>agraph 7,c71 by /rik+ ! p]iod & ins]t+ 2 or2 & 7,c7 by add+ at ! end ! foll[+3 7,d7 a contract ( sale ( a digital commodity4 2 7#b7 9 p>agraph 7#d7-- 7,a7 9 subp>agraph 7,a7-- 7i7 9 clause 7ii71 by /rik+ or at ! end2 7ii7 9 clause 7iii71 by /rik+ ! p]iod & ins]t+ 2 or2 & 7iii7 by add+ at ! end ! foll[+3 7iv7 a contract ( sale ( a digital commodity4 2 7,b7 9 subp>agraph 7,b7-- 7i7 9 clause 7ii71 by /rik+ or at ! end2 7ii7 9 clause 7iii71 by /rik+ ! p]iod & ins]t+ 2 or2 & 7iii7 by add+ at ! end ! foll[+3 7iv7 a contract ( sale ( a digital commodity4 2 & 7,c7 9 subp>agraph 7,c7-- 7i7 9 clause 7ii71 by /rik+ or at ! end2 7ii7 by /rik+ 7iii7 a swap1 provid$ h[ev]1 & ins]t+ ! foll[+3 7iii7 a swap2 or 7iv7 a contract ( sale ( a digital commodity1 provid$1 h[ev]1 2 & 7iii7 by /rik+ clauses 7i71 7ii71 or 7iii7 & ins]t any ( clauses 7i7 ?r\gh 7iv74 #aji4 ,treatm5t ( c]ta9 non-controll+ block*a9 develop]s 7a7 ,9 g5]al ,not)/&+ applicable law1 a non-controll+ block*a9 develop] or provid] ( a block*a9 s]vice %all n be treat$ z a money transmitt] or z engag$ 9 money transmitt+ or1 foll[+ ! date ( enactm5t ( ?is ,act1 be o!rwise subject to any new regi/ration requirem5t t is sub/antially simil> to ! requirem5t t curr5tly applies to money transmitt]s1 solely on ! basis (-- 7#a7 creat+ or publi%+ s(tw>e to facilitate ! creation (1 or provision ( ma9t5ance s]vices to1 a block*a9 or block*a9 s]vice2 7#b7 provid+ h>dw>e or s(tw>e to facilitate a cu/om]'s own cu/ody or safekeep+ ( ! cu/om]'s digital assets2 or 7#c7 provid+ infra/ructure support to ma9ta9 a block*a9 s]vice4 7b7 ,rule ( ,con/ruction ,no?+ 9 ?is section %all be con/ru$ to affect :e!r a block*a9 develop] or provid] ( a block*a9 s]vice is o!rwise subject to classification or treatm5t z a money transmitt]1 or z engag$ 9 money transmitt+1 "u applicable ,/ate or ,f$]al law1 includ+ laws relat+ to anti-money laund]+ or c\nt]+ ! f9anc+ ( t]rorism1 bas$ on conduct outside ! scope ( subsection 7a74 ,no?+ 9 ?is section %all be con/ru$ to affect :e!r a block*a9 develop] or provid] ( a block*a9 s]vice is o!rwise subject to classification or treatm5t z a f9ancial in/itution "u ! ,bank ,secrecy ,act1 ?is ,act1 or any ,act enact$ aft] ! date ( enactm5t ( ?is ,act4 7c7 ,effect on o!r laws 7#a7 ,intellectual prop]ty law ,no?+ 9 ?is section %all be con/ru$ to limit or exp& any law p]ta9+ to intellectual prop]ty4 7#b7 ,/ate law ,no?+ 9 ?is section %all be con/ru$ to prev5t any ,/ate f en=c+ any ,/ate law t is consi/5t ) ?is section4 ,no cause ( action may be br\ght & no liability may be impos$ "u any ,/ate or local law t is inconsi/5t ) ?is section4 7d7 ,def9itions ,9 ?is section3 7#a7 ,block*a9 develop] ,! t]m block*a9 develop] means any p]son or bus9ess t creates or publi%es s(tw>e to facilitate ! creation (1 or provide ma9t5ance to1 a block*a9 or a block*a9 s]vice4 7#b7 ,block*a9 s]vice ,! t]m block*a9 s]vice means any in=mation1 transaction1 or comput+ s]vice or sy/em t provides or enables access to a block*a9 network by multiple us]s1 includ+ specifically a s]vice or sy/em t enables us]s to s5d1 receive1 ex*ange1 or /ore digital assets describ$ by block*a9 networks4 7#c7 ,non-controll+ block*a9 develop] or provid] ( a block*a9 s]vice ,! t]m non-controll+ block*a9 develop] or provid] ( a block*a9 s]vice means a block*a9 develop] or provid] ( a block*a9 s]vice t 9 ! regul> c\rse ( op]ations1 does n h ! legal "r or ! unilat]al & indep5d5t ability to control1 initiate ^u dem&1 or effectuate transactions involv+ digital assets t us]s are entitl$ to1 )\t ! approval1 cons5t1 or direction ( any o!r ?ird p>ty4 #aaj4 ,application ( ! ,bank ,secrecy ,act 7a7 ,9 g5]al ,section #ecab7;c77#a77;,a7 ( title #ca1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 by ins]t+ digital commodity brok]1 digital commodity deal]1 aft] futures commission m]*ant12 & 7#b7 by ins]t+ be=e ! p]iod ! foll[+3 & any digital commodity ex*ange regi/]$1 or requir$ to regi/]1 "u ! ,commodity ,ex*ange ,act :i* p]mits direct cu/om] access4 7b7 ,bank ,secrecy ,act requirem5ts 7#a7 ,regulations ,! ,secret>y ( ! ,treasury1 act+ ?r\gh ! ,director ( ! ,f9ancial ,crimes ,en=cem5t ,network1 & 9 consultation ) ,commodity ,futures ,trad+ ,commission1 %all issue requirem5ts consi/5t ) ! requirem5ts ( futures commission m]*ants to apply ! ,bank ,secrecy ,act to digital commodity brok]s1 digital commodity deal]s1 & digital commodity ex*anges t are tailor$ to ! size & complexity ( su* entities1 includ+ by requir+ ea* su* entity to-- 7,a7 e/abli% & ma9ta9 an anti-money laund]+ & c\nt]+ ! f9anc+ ( t]rorism program1 :i* %all include-- 7i7 an appropriate risk assessm5t2 7ii7 ! developm5t ( int]nal policies1 proc$ures1 & controls2 7iii7 ! designation ( a compliance (fic]2 7iv7 an ongo+ employee tra9+ program2 & 7v7 an indep5d5t audit function to te/ su* program2 7,b7 reta9 appropriate records ( transactions2 7,c7 monitor & report suspici\s activity1 :i* may include use ( appropriate di/ribut$ l$g] analytics2 & 7,d7 ma9ta9 an effective cu/om] id5tification program to id5tify & v]ify acc\nt hold]s & c>ry out appropriate cu/om] due dilig5ce4 7#b7 ,compliance ) sanctions ,a digital commodity brok]1 digital commodity deal]1 or digital commodity ex*ange %all comply ) all laws & regulations relat$ to ,unit$ ,/ates sanctions adm9i/]$ by ! ,(fice ( ,=eign ,assets ,control4 #aaa4 ,rule ( con/ruction ,no?+ 9 ?is ,act1 or ! am5dm5ts made by ?is ,act1 %all be con/ru$ to limit or prev5t ! cont9u$ application ( applicable e?ics /atutes & regulations adm9i/]$ by ! ,(fice ( ,gov]nm5t ,e?ics1 or ! e?ics rules ( ! ,s5ate & ! ,h\se ( ,repres5tatives1 includ+ section #bjh ( title #ah1 ,unit$ ,/ates ,code1 & sections #bfce4gjb & #bfce4hjb ( title #e1 ,code ( ,f$]al ,regulations4 ,= ! avoidance ( d\bt1 exi/+ ,(fice ( ,gov]nm5t ,e?ics laws & ! e?ics rules ( ! ,s5ate & ! ,h\se ( ,repres5tatives prohibit any memb] ( ,congress or s5ior executive bran* (ficial f issu+ a digital commodity dur+ _! "t 9 public s]vice4 ,= ! purposes ( ?is section1 an employee describ$ 9 section #bjb ( title #ah1 ,unit$ ,/ates ,code1 %all be deem$ an executive bran* employee = purposes ( comply+ ) section #bjh ( t title4 #aab4 ,implem5tation 7a7 ,global rulemak+ timeframe ,unless o!rwise provid$ 9 ?is ,act or an am5dm5t made by ?is ,act1 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission1 or bo?1 %all individually1 & jo9tly :]e requir$1 promulgate rules & regulations requir$ ( ea* ,commission "u ?is ,act or an am5dm5t made by ?is ,act n lat] ?an #cfj days aft] ! date ( enactm5t ( ?is ,act4 7b7 ,rules & regi/ration be=e f9al effective dates 7#a7 ,9 g5]al ,9 ord] to prep>e = ! implem5tation ( ?is ,act1 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission may1 be=e any effective date provid$ 9 ?is ,act-- 7,a7 promulgate rules1 regulations1 or ord]s p]mitt$ or requir$ by ?is ,act2 7,b7 conduct /udies & prep>e reports & recomm5dations requir$ by ?is ,act2 7,c7 regi/] p]sons "u ?is ,act2 & 7,d7 exempt p]sons1 agreem5ts1 contracts1 or transactions f provisions ( ?is ,act1 "u ! t]ms conta9$ 9 ?is ,act4 7#b7 ,limitation on effectiv5ess ,an action by ! ,commodity ,futures ,trad+ ,commission or ! ,securities & ,ex*ange ,commission "u p>agraph 7#a7 %all n become effective be=e ! effective date o!rwise applicable to ! action "u ?is ,act4 ,,ii ,(f]s & ,sales ( ,digital ,commodities #bja4 ,treatm5t ( inve/m5t contract assets 7a7 ,securities ,act ( #aicc ,section #b7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a771 z am5d$ by section #aja1 is fur!r am5d$-- 7#a7 9 p>agraph 7#a71 by add+ at ! end ! foll[+3 ,! t]m inve/m5t contract does n include an inve/m5t contract asset42 & 7#b7 by add+ at ! end ! foll[+3 7#cf7 ,! t]m inve/m5t contract asset means a digital commodity-- 7,a7 t c be exclusively possess$ & transf]r$1 p]son to p]son1 )\t necess>y reliance on an int]m$i>y1 & is record$ on a block*a92 & 7,b7 sold or o!rwise transf]r$1 or int5d$ to be sold or o!rwise transf]r$1 pursuant to an inve/m5t contract4 4 7b7 ,inve/m5t ,advis]s ,act ( #aidj ,section #bjb7;a77#ah7 ( ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#b7;a77#ah77 is am5d$ by add+ at ! end ! foll[+3 ,! t]m inve/m5t contract does n include an inve/m5t contract asset 7z su* t]m is def9$ "u section #b7;a7 ( ! ,securities ,act ( #aicc744 7c7 ,inve/m5t ,company ,act ( #aidj ,section #b7;a77#cf7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#b7;a77#cf77 is am5d$ by add+ at ! end ! foll[+3 ,! t]m inve/m5t contract does n include an inve/m5t contract asset 7z su* t]m is def9$ "u section #b7;a7 ( ! ,securities ,act ( #aicc744 7d7 ,securities ,ex*ange ,act ( #aicd ,section #c7;a77#aj7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a77#aj77 is am5d$ by add+ at ! end ! foll[+3 ,! t]m inve/m5t contract does n include an inve/m5t contract asset 7z su* t]m is def9$ "u section #b7;a7 ( ! ,securities ,act ( #aicc744 7e7 ,securities ,inve/or ,protection ,act ( #aigj ,section #af7ad7 ( ! ,securities ,inve/or ,protection ,act ( #aigj 7#ae ,u4,s4,c4 #ghlll7#ad77 is am5d$ by add+ at ! end ! foll[+3 ,! t]m inve/m5t contract does n include an inve/m5t contract asset 7z su* t]m is def9$ "u section #b7;a7 ( ! ,securities ,act ( #aicc744 #bjb4 ,exempt$ prim>y transactions 9 digital commodities 7a7 ,9 g5]al ,! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;a et seq47 is am5d$-- 7#a7 9 section #d7;a71 by add+ at ! end ! foll[+3 7#h7 ! (f] or sale ( an inve/m5t contract involv+ units ( a digital commodity by its digital commodity issu] 7includ+ all entities controll$ by or "u common control ) ! issu]71 if-- 7,a7 ! block*a9 sy/em to :i* ! digital commodity relates1 toge!r ) ! digital commodity1 is c]tifi$ z a mature block*a9 sy/em "u section #db ( ! ,securities ,ex*ange ,act ( #aicd or ! issu] int5ds = ! block*a9 sy/em to :i* ! digital commodity relates to be a mature block*a9 sy/em by ! lat] (-- 7i7 ! date t is f\r ye>s aft] ! fir/ sale ( ! inve/m5t contract involv+ a unit ( su* digital commodity 9 reliance on ! exemption provid$ "u ?is p>agraph1 subject to any ext5sions z may be grant$ by ! ,commission2 or 7ii7 ! date t is f\r ye>s aft] ! effective date ( ?is p>agraph2 7,b7 ! sum ( all ca% & o!r consid]ation to be receiv$ by ! digital commodity issu] 9 reliance on ! exemption provid$ "u ?is p>agraph1 dur+ ! #ab-mon? p]iod prec$+ ! date ( su* (f]+1 includ+ ! am\nt receiv$ 9 su* (f]+1 is n m ?an #ej1jjj1jjj 7z su* am\nt is annually adju/$ by ! ,commission to reflect ! *ange 9 ! ,consum] ,price ,index = ,all ,urban ,consum]s publi%$ by ! ,bureau ( ,labor ,/ati/ics ( ! ,dep>tm5t ( ,labor72 7,c7 aft] ! completion ( ! transaction1 a pur*as] does n own m ?an #aj p]c5t ( ! total am\nt ( ! out/&+ units ( ! digital commodity2 7,d7 ! transaction does n involve ! (f] or sale ( an inve/m5t contract involv+ units ( a digital commodity by its digital commodity issu] t-- 7i7 is n organiz$ "u ! laws ( a ,/ate1 a t]ritory ( ! ,unit$ ,/ates1 or ! ,di/rict ( ,columbia2 7ii7 is a developm5t /age company t ei!r-- 7,i7 has no specific bus9ess plan or purpose2 or 7,,ii7 has indicat$ t ! bus9ess plan ( ! company is to m]ge ) or acquire an unid5tifi$ company2 7iii7 is an inve/m5t company1 z def9$ 9 section #c ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#c71 or is exclud$ f ! def9ition ( inve/m5t company by section #c7;c7 ( t ,act 7#ae ,u4,s4,c4 #hj;a-#c7;b7 or #hj;a-#c7;c772 7iv7 is issu+ fractional undivid$ int]e/s 9 oil or gas rights1 or a simil> int]e/ 9 o!r m9]al rights2 7v7 is1 or has be51 subject to any ord] ( ! ,commission ent]$ pursuant to section #ab7;j7 ( ! ,securities ,ex*ange ,act ( #aicd dur+ ! #e-ye> p]iod be=e ! fil+ ( ! (f]+ /atem5t2 or 7vi7 is disqualifi$ pursuant to section #bcj4bfb ( title #ag1 ,code ( ,f$]al ,regulations2 & 7,e7 ! issu] meets ! requirem5ts ( section #d;,b7b74 2 & 7#b7 by ins]t+ aft] section #d;,a ! foll[+3 #d;,b4 ,requirem5ts ) respect to c]ta9 digital commodity transactions 7a7 ,commission jurisdiction ,= ! purposes ( ?is section3 7#a7 ,! ,commission %all h jurisdiction & en=cem5t au?ority ) respect to disclosures describ$ 9 ?is section4 7#b7 ,section #ag %all apply to a /atem5t made 9 an (f]+ /atem5t1 disclosure1 or report fil$ "u ?is section to ! same ext5t z su* section #ag applies to a /atem5t made 9 any o!r (f]+ /atem5t1 disclosure1 or report fil$ "u ?is ,act4 7b7 ,requirem5ts = digital commodity issu]s 7#a7 ,t]ms & conditions ,a digital commodity issu] (f]+ or sell+ an inve/m5t contract involv+ units ( a digital commodity 9 reliance on section #d7;a77#h7 %all file ) ! ,commission an (f]+ /atem5t & any relat$ docum5ts1 9 su* =m & ) su* cont5t z prescrib$ by ! ,commission1 includ+ f9ancial in=mation1 a description ( ! issu] & ! op]ations ( ! issu]1 ! f9ancial condition ( ! issu]1 a description ( ! plan ( di/ribution ( any unit ( a digital commodity t is to be (f]$ z well z ! int5d$ use ( ! (f]+ proce$s1 & a description ( ! developm5t plan = ! block*a9 sy/em1 & ! relat$ digital commodity1 to become a mature block*a9 sy/em1 if su* block*a9 sy/em is n already c]tifi$ z a mature block*a9 sy/em pursuant to section #db ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq474 7#b7 ,in=mation requir$ = pur*as]s ,a digital commodity issu] t has fil$ a /atem5t "u p>agraph 7#a7 to (f] & sell an inve/m5t contract involv+ a unit ( a digital commodity 9 reliance on section #d7;a77#h7 %all include 9 su* /atem5t ! foll[+ in=mation3 7,a7 ,maturity /atus ,:e!r ! block*a9 sy/em to :i* ! digital commodity relates has be5 c]tifi$ z a mature block*a9 sy/em pursuant to section #db ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 &1 :]e su* block*a9 sy/em is n s c]tifi$1 a /atem5t ( ! digital commodity issu]'s int5t = ! block*a9 sy/em to :i* ! digital commodity relates to be a mature block*a9 sy/em )9 ! "t p]iod describ$ 9 section #d7;a77#h77;,a74 7,b7 ,s\rce code ,! s\rce code1 or a publicly accessible webpage display+ su* s\rce code1 = any block*a9 sy/em to :i* ! digital commodity relates1 & :e!r ! s\rce code 0 s\rc$ f an ext]nal ?ird p>ty1 :e!r !re are any exi/+ ext]nal dep5d5cies1 & :e!r ! code und]w5t a ?ird-p>ty security audit1 along ) mat]ial results ( any su* audit4 7,c7 ,transaction hi/ory ,a description ( ! /eps necess>y to indep5d5tly access1 se>*1 & v]ify ! transaction hi/ory ( any block*a9 sy/em to :i* ! digital commodity relates1 to ! ext5t any su* indep5d5t access1 se>*1 & v]ification activities are te*nically feasible ) respect to su* block*a9 sy/em4 7,d7 ,digital commodity economics ,a description ( ! purpose ( any block*a9 sy/em to :i* ! digital commodity relates & ! op]ation ( any su* block*a9 sy/em1 includ+-- 7i7 in=mation expla9+ ! laun* & supply process1 includ+ ! numb] ( units ( ! digital commodity to be issu$ 9 an initial allocation1 ! total numb] ( units ( ! digital commodity to be creat$1 ! release s*$ule = ! units ( ! digital commodity1 & ! total numb] ( units ( ! digital commodity out/&+2 7ii7 in=mation expla9+ ! te*nical requirem5ts = hold+1 access+1 & transf]r+ ! digital commodity2 7iii7 in=mation on any applicable cons5sus me*anism or process = validat+ transactions1 me?od ( g5]at+ or m9+ digital commodities1 & any process = burn+ or de/roy+ units ( ! digital commodity on ! block*a9 sy/em2 7iv7 an explanation ( any me*anism = driv+ value to ! digital commodity ( su* block*a9 sy/em2 & 7v7 an explanation ( gov]nance me*anisms = implem5t+ *anges to ! block*a9 sy/em or =m+ cons5sus among hold]s ( units ( su* digital commodity4 7,e7 ,plan ( developm5t ,! curr5t /ate & timel9e = ! developm5t ( any block*a9 sy/em to :i* ! digital commodity relates1 detail+ h[ & :5 ! block*a9 sy/em is int5d$ to be a mature block*a9 sy/em1 if ! block*a9 sy/em is n yet c]tifi$ z a mature block*a9 sy/em1 & ! v>i\s roles t exi/ or are int5d$ to exi/ 9 connection ) ! block*a9 sy/em1 su* z us]s1 s]vice provid]s1 develop]s1 transaction validators1 & gov]nance p>ticipants1 includ+ a discussion ( any me*anisms by :i* control or au?ority are ex]t$ ) respect to ! block*a9 sy/em or its relat$ digital commodity1 & any critical op]ational dep5d5cies ( ! block*a9 sy/em or its relat$ digital commodity4 7,f7 ,own]%ip disclosures 7i7 ,9 g5]al ,a li/ ( all p]sons :o are digital commodity relat$ p]sons or digital commodity affiliat$ p]sons :o h be5 issu$ a unit ( ! digital commodity by ! digital commodity issu] or h a "r to a unit ( ! digital commodity f ! digital commodity issu]4 7ii7 ,confid5tiality ,! ,commission %all keep ea* li/ describ$ "u clause 7i7 confid5tial1 consi/5t ) :at is necess>y or appropriate 9 ! public int]e/ or = ! protection ( inve/ors4 7,g7 ,risk factor disclosures ,a description ( ! mat]ial risks surr\nd+ own]%ip ( a unit ( a digital commodity4 7#c7 ,ongo+ disclosure requirem5ts = matur+ block*a9 sy/ems ,subject to p>agraph 7#e71 ! issu] ( a digital commodity relat$ to a block*a9 sy/em t is n yet c]tifi$ z a mature block*a9 sy/em "u section #db ( ! ,securities ,ex*ange ,act ( #aicd t has fil$ a /atem5t "u p>agraph 7#a7 to (f] & sell an inve/m5t contract involv+ a unit ( a digital commodity 9 reliance on section #d7;a77#h7 %all file ! foll[+ ) ! ,commission3 7,a7 ,semiannual reports ,e #f mon?s1 a report conta9+-- 7i7 an updat$ description ( ! curr5t /ate & timel9e = ! developm5t ( ! block*a9 sy/em to :i* ! digital commodity relates1 %[+ h[ & :5 ! block*a9 is int5d$ to be a mature block*a9 sy/em2 7ii7 a description ( ! ef=ts ( ! issu] & digital commodity relat$ p]sons 9 develop+ ! block*a9 sy/em to :i* ! digital commodity relates2 7iii7 ! am\nt ( money rais$ by ! digital commodity issu] 9 reliance on section #d7;a77#h71 h[ mu* ( t money has be5 sp5t1 & ! g5]al categories ( activities = :i* t money has be5 sp5t & am\nts sp5t p] category2 & 7iv7 f9ancial /atem5ts1 :]e applicable4 7,b7 ,curr5t reports ,a curr5t report reflect+ any mat]ial *anges relevant to ! in=mation previ\sly report$ to ! ,commission by ! digital commodity issu]1 :i* %all be fil$ z soon z practicable aft] ! mat]ial *ange occurr$1 9 accordance ) su* rules z ! ,commission may prescribe z necess>y or appropriate 9 ! public int]e/ or = ! protection ( inve/ors4 7#d7 ,rulemak+ ,n lat] ?an #cfj days aft] ! date ( ! enactm5t ( ?is section1 ! ,commission %all prescribe rules on requirem5ts applicable to issu]s ( digital commodities 9 reliance on section #d7;a77#h74 7#e7 ,t]m9ation ( c]ta9 report+ requirem5ts2 po/-maturity report+ requirem5ts 7,a7 ,9 g5]al ,! ongo+ report+ requirem5ts "u p>agraph 7#c7 %all n apply to a digital commodity issu] #ahj days aft] ! end ( ! cov]$ fiscal ye>1 if ! in=mation ) respect to ! digital commodity & ! block*a9 sy/em to :i* x relates describ$ 9 subp>agraphs 7,a7 ?r\gh 7,c7 ( p>agraph 7#b7 is made publicly available & ! disclosure requirem5ts "u subp>agraph 7,c7 ( ?is p>agraph are satisfi$4 7,b7 ,cov]$ fiscal ye> def9$ ,9 ?is p>agraph1 ! t]m cov]$ fiscal ye> means1 ) respect to a digital commodity1 ! fir/ fiscal ye> ( a digital commodity issu] 9 :i* ! block*a9 sy/em to :i* su* digital commodity relates is c]tifi$ z a mature block*a9 sy/em "u section #db ( ! ,securities ,ex*ange ,act ( #aicd4 7,c7 ,po/-maturity report+ requirem5ts ,aft] ! block*a9 sy/em to :i* a digital commodity relates is c]tifi$ z a mature block*a9 sy/em "u section #db ( ! ,securities ,ex*ange ,act ( #aicd1 any digital commodity issu] t has fil$ a /atem5t "u p>agraph 7#a7 to (f] & sell an inve/m5t contract involv+ a unit ( a digital commodity 9 reliance on section #d7;a77#h7 & is engag$ 9 mat]ial ongo+ ef=ts relat$ to ! mature block*a9 sy/em %all disclose1 9 a mann] reasonably calculat$ to in=m ! public1 & at su* frequ5cy z ! ,commission may prescribe1 by rule1 a description ( su* ef=ts1 includ+-- 7i7 any p>ticipation 9 a dec5traliz$ gov]nance sy/em ( su* block*a9 sy/em2 7ii7 any p>ticipation 9 alt]ations or propos$ alt]ations to ! functionality or op]ation ( su* block*a9 sy/em2 7iii7 ! use or plann$ use ( any funds rais$ 9 reliance on section #d7;a77#h7 or any rulemak+ pursuant to section #bjb7;c7 ( ! ,,cl>ity ,act ( #bjbe 9 su* ef=ts2 7iv7 ! am\nt ( units ( ! digital commodity1 or rights !reto1 own$ & controll$ by su* issu] & any use1 sale1 trad+1 or o!r disposition !re(2 & 7v7 any affiliations ( su* issu] mat]ial to ! ef=ts ( su* issu]4 7,d7 ,t]m9ation ( & exemption f po/-maturity report+ requirem5ts ,n lat] ?an #bgj days aft] ! date ( ! enactm5t ( ?is section1 ! ,commission %all issue rules-- 7i7 = t]m9at+ ! disclosure requirem5ts describ$ 9 subp>agraph 7,c7 dur+ ! fir/ fiscal ye> 9 :i* ! digital commodity issu] does n engage 9 mat]ial ongo+ ef=ts relat$ to ! mature block*a9 sy/em2 & 7ii7 to1 z is necess>y or appropriate 9 ! public int]e/ or = ! protection ( inve/ors1 exempt a digital commodity issu] f ! requirem5ts describ$ 9 subp>agraph 7,c7 :]e only a de m9imis am\nt ( m>ket activity involv+ ! digital commodity ( su* digital commodity issu] is tak+ place4 7,e7 ,rule ( con/ruction ,no?+ 9 subp>agraph 7,c7 may be con/ru$ to make any digital commodity describ$ 9 su* subp>agraph a security4 7c7 ,requirem5ts = int]m$i>ies ,a p]son act+ z an int]m$i>y 9 connection ) ! (f] or sale ( an inve/m5t contract involv+ units ( a digital commodity 9 reliance on section #d7;a77#h7 %all-- 7#a7 regi/] ) ! ,commission z a brok] or deal]2 & 7#b7 be a memb] ( a national securities association regi/]$ "u section #ae;,a ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho-#c74 7d7 ,disqualification provisions ,! ,commission %all issue rules to apply ! disqualification provisions "u section #bcj4bfb ( title #ag1 ,code ( ,f$]al ,regulations1 to ! exemption provid$ "u section #d7;a77#h74 7e7 ,failure ,to mature 7#a7 ,9 g5]al ,n lat] ?an #bgj days aft] ! date ( ! enactm5t ( ?is section1 ! ,commission %all issue rules apply+ su* additional obligations & disclosures = ! digital commodity issu]s1 digital commodity relat$ p]sons1 & digital commodity affiliat$ p]sons ( a block*a9 sy/em describ$ "u subsection 7b77#a7 t does n become a mature block*a9 sy/em )9 ! "t p]iod describ$ 9 section #d7;a77#h77;,a7 z are necess>y or appropriate 9 ! public int]e/ or = ! protection ( inve/ors4 ,su* obligations & disclosures %all include ! foll[+3 7,a7 ,disclosures ,disclosures reg>d+ ! foll[+3 7i7 ,failure to mature ,a detail$ explanation ( ! reason t ! block*a9 sy/em has n become a mature block*a9 sy/em )9 ! "t p]iod describ$ 9 section #d7;a77#h77;,a74 7ii7 ,developm5t plans ,! future plans ( developm5t ( ! block*a9 sy/em1 includ+ in=mation requir$ "u subsection 7b77#c74 7iii7 ,risk factor disclosures ,! mat]ial risks surr\nd+ own]%ip ( a unit ( a digital commodity t relates to a block*a9 sy/em describ$ "u subsection 7b77#a7 t has n become a mature block*a9 sy/em )9 ! "t p]iod describ$ 9 section #d7;a77#h77;,a74 7,b7 ,obligations ,transaction report+ & b5eficial own]%ip disclosure obligations applicable to digital commodity relat$ p]sons & digital commodity affiliat$ p]sons ( su* block*a9 sy/em4 7#b7 ,qualification requir$ ,! ,commission may n p]mit any additional reliance on an exempt (f]+ = ! (f] or sale ( an inve/m5t contract involv+ a unit ( a digital commodity by ! issu] ( ! digital commodity relat$ to a block*a9 sy/em describ$ "u subsection 7a77#a7 t has n become a mature block*a9 sy/em )9 ! "t p]iod describ$ 9 section #d7;a77#h77;,a7 unless ! ,commission has qualifi$ any (f]+ /atem5t relat$ to su* exempt (f]+4 4 7b7 ,additional exemptions 7#a7 ,c]ta9 regi/ration requirem5ts ,section #ab7;g77#f7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #ghl7g77#f77 is am5d$ by /rik+ "u section #d7f7 & ins]t+ "u section #d7;a77#f7 or #d7;a77#h74 7#b7 ,exemption f ,/ate regulation ,section #ah7;b77#d7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #ggr7b77#d77 is am5d$-- 7,a7 9 subp>agraph 7,b71 by /rik+ section #d7d7 & ins]t+ section #d7;a77#d72 7,b7 9 subp>agraph 7,c71 by /rik+ section #d7f7 & ins]t+ section #d7;a77#f72 7,c7 9 subp>agraph 7,f7-- 7i7 by /rik+ section #d7b7 ea* place su* t]m appe>s & ins]t+ section #d7;a77#b72 & 7ii7 by /rik+ or at ! end2 7,d7 9 subp>agraph 7,g71 by /rik+ ! p]iod & ins]t+ 2 or2 & 7,e7 by add+ at ! end ! foll[+3 7,h7 section #d7;a77#h74 4 7c7 ,use ( o!r exemptions 7#a7 ,rule ( con/ruction ,except z provid$ 9 ?is subsection1 no?+ 9 ?is section or ! am5dm5ts made by ?is section may be con/ru$ z prohibit+ ! (f] or sale ( an inve/m5t contract involv+ units ( a digital commodity 9 reliance on an exemption f regi/ration "u ! ,securities ,act ( #aicc1 includ+ z provid$ "u section #c1 #d7;a71 or #ai ( ! ,securities ,act ( #aicc1 o!r ?an t provid$ "u section #d7;a77#h7 ( ! ,securities ,act ( #aicc4 7#b7 ,rulemak+s 7,a7 ,! ,securities & ,ex*ange ,commission may issue rules-- 7i7 to p]mit ! issu] ( a digital commodity relat$ to a block*a9 sy/em describ$ "u section #d;,b7b77#a7 ( ! ,securities ,act ( #aicc t has n become a mature block*a9 sy/em )9 ! "t p]iod describ$ 9 section #d7;a77#h77;,a7 ( su* ,act1 or ! issu] ( a digital commodity describ$ 9 subp>agraph 7,b77iii71 to utilize an exempt (f]+ to (f] or sell an inve/m5t contract involv+ ! digital commodity1 if ! ,commission qualifies any (f]+ /atem5t relat$ to su* exempt (f]+2 & 7ii7 = ! (f] & sale ( inve/m5t contracts involv+ units ( a digital commodity by issu]s t are n organiz$ "u ! laws ( a ,/ate1 a t]ritory ( ! ,unit$ ,/ates1 or ! ,di/rict ( ,columbia4 7,b7 ,n lat] ?an #bgj days aft] ! date ( ! enactm5t ( ?is section1 ! ,securities & ,ex*ange ,commission %all issue ! foll[+ rules3 7i7 ,a rule requir+ a digital commodity issu] t la/ (f]$ or sold an inve/m5t contract involv+ units ( a digital commodity 9 reliance on an exemption f regi/ration "u ! ,securities ,act ( #aicc1 includ+ z provid$ "u section #c1 #d7;a71 or #ai ( ! ,securities ,act ( #aicc1 prior to ! date ( enactm5t ( ?is ,act1 to file a comp>able set ( disclosures to ^? describ$ "u section #d;,b ( ! ,securities ,act ( #aicc z ! ,commission det]m9es appropriate bas$ on ! exemption1 ! maturity ( ! block*a9 sy/em to :i* su* digital commodity relates1 & any mat]ial ongo+ ef=ts ( su* digital commodity issu] 7provid$ t = block*a9s c]tifi$ z a mature block*a9 sy/em "u section #db ( ! ,securities ,ex*ange ,act ( #aicd1 su* disclosures %all be comp>able to ^? "u section #d;,b7b77#e77;,c771 n lat] ?an ! lat] (-- 7,i7 "o ye> aft] ! effective date ( ?is section2 or 7,,ii7 ! date ( any second>y m>ket sale ( su* digital commodity made 9 reliance on section #bjc4 7ii7 ,a rule requir+ a digital commodity issu] t (f]s or sells an inve/m5t contract involv+ units ( a digital commodity 9 reliance on an exemption f regi/ration "u ! ,securities ,act ( #aicc1 includ+ z provid$ "u section #c1 #d7;a71 or #ai ( ! ,securities ,act ( #aicc1 o!r ?an t provid$ "u section #d7;a77#h7 ( ! ,securities ,act ( #aicc1 on or aft] ! date ( enactm5t ( ?is ,act1 to file a comp>able set ( disclosures to ^? describ$ "u section #d;,b ( ! ,securities ,act ( #aicc z ! ,commission det]m9es appropriate bas$ on ! exemption1 ! maturity ( ! block*a9 sy/em to :i* su* digital commodity relates1 & any mat]ial ongo+ ef=ts ( su* digital commodity issu]1 prior to ! date ( any second>y m>ket sale ( su* digital commodity made 9 reliance on section #bjc4 7iii7 ,) respect to a digital commodity :]e ! digital commodity issu] is requir$ to file disclosures "u clause 7i7 or 7ii7 & :]e ! block*a9 sy/em to :i* ! digital commodity relates is n c]tifi$ z a mature block*a9 sy/em pursuant to section #db ( ! ,securities ,ex*ange ,act ( #aicd aft] ! #d-ye> p]iod beg9n+ on ! date t ! fir/ su* disclosure is fil$-- 7,i7 a rule prohibit+ ! (f] or sale ( an inve/m5t contract involv+ units ( ! digital commodity unless ! ,commission has qualifi$ any (f]+ /atem5t relat$ to su* (f] or sale1 :]e su* (f] or sale is p]mitt$ pursuant to subp>agraph 7,a77i72 & 7,,ii7 a rule requir+ ! digital commodity issu] to make disclosures comp>able to ^? describ$ 9 #d;,b7e77#a77;,a7 ( ! ,securities ,act ( #aicc4 7iv7 ,a rule p]mitt+ a successor to a digital commodity issu]1 or su* o!r appropriate p]son z designat$ by ! ,commission1 to make ! disclosures requir$ "u clause 7i71 :]e su* issu] does n make ! requir$ disclosures4 #bjc4 ,treatm5t ( second>y transactions 9 digital commodities t orig9ally involv$ inve/m5t contracts 7a7 ,second>y m>ket treatm5t ,not)/&+ any o!r provision ( law1 ! (f] or sale ( a digital commodity t orig9ally involv$ an inve/m5t contract by a p]son o!r ?an ! issu] ( su* digital commodity1 or an ag5t or und]writ] !re(1 %all be deem$ n to be an (f] or sale ( su* inve/m5t contract betwe5 ! issu] ( ! inve/m5t contract involv+ ! digital commodity1 or an ag5t or und]writ] !re(1 & ! pur*as] ( su* digital commodity "u-- 7#a7 ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;a et seq472 7#b7 ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#a et seq472 7#c7 ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#a et seq472 7#d7 ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq472 7#e7 ! ,securities ,inve/or ,protection ,act ( #aigj 7#ae ,u4,s4,c4 #gh;aaa et seq472 & 7#f7 any applicable provisions ( ,/ate law4 7b7 ,end us] di/ributions n an (f] or sale ( a security ,an end us] di/ribution does n involve ! (f] or sale ( a security4 7c7 ,ag5t def9$ ,9 ?is section & ) respect to a digital commodity issu]1 ! t]m ag5t means any p]son directly or indirectly controll$ by ! issu] or "u direct or indirect common control ) ! issu]4 #bjd4 ,requirem5ts = (f]s & sales ( digital commodities by digital commodity relat$ p]sons & digital commodity affiliat$ p]sons ,! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;a et seq471 z am5d$ by section #bjb1 is fur!r am5d$ by ins]t+ aft] section #d;,b ! foll[+3 #d;,c4 ,requirem5ts = (f]s & sales ( digital commodities by digital commodity relat$ p]sons & digital commodity affiliat$ p]sons 7a7 ,9 g5]al ,x %all be a violation ( ?is ,act = a digital commodity affiliat$ p]son or a digital commodity relat$ p]son to (f] or sell a digital commodity acquir$ directly f its issu]1 or an ag5t or und]writ] !re(1 pursuant to an inve/m5t contract 9 reliance on section #d7;a77#h7 or ano!r exemption "u ?is ,act1 o!r ?an z provid$ 9 ?is section4 7b7 ,commission jurisdiction 7#a7 ,:]e a digital commodity affiliat$ p]son or a digital commodity relat$ p]son (f]s or sells a digital commodity acquir$ directly f its issu]1 or an ag5t or und]writ] !re(1 pursuant to an inve/m5t contract 9 reliance on section #d7;a77#h71 or ano!r exemption "u ?is ,act1 o!r ?an z provid$ 9 ?is section1 su* digital commodity affiliat$ p]son or digital commodity relat$ p]son %all be consid]$ an issu] ( su* inve/m5t contract4 7#b7 ,= ! purposes ( ?is section1 ! ,commission %all h jurisdiction & en=cem5t au?ority ) respect to an (f] or sale ( a digital commodity describ$ 9 subsection 7a74 7c7 ,re/rictions on digital commodity relat$ p]sons & digital commodity affiliat$ p]sons 7#a7 ,prior to be+ a mature block*a9 sy/em ,prior to ! block*a9 sy/em to :i* a digital commodity relates be+ c]tifi$ z a mature block*a9 sy/em "u section #db ( ! ,securities ,ex*ange ,act ( #aicd1 units ( ! digital commodity acquir$ by a digital commodity relat$ p]son or digital commodity affiliat$ p]son directly f its issu] 7or an ag5t or und]writ] !re(7 pursuant to an inve/m5t contract 9 reliance on section #d7;a77#h71 or ano!r exemption "u ?is ,act1 may be (f]$ or sold by su* digital commodity relat$ p]son or digital commodity affiliat$ p]son if-- 7,a7 reports ) respect to su* digital commodity1 :]e requir$ "u section #d;,b7b77#c7 7or1 ) respect to a digital commodity n issu$ 9 reliance on section #d7;a77#h71 a comp>able set ( reports :]e requir$ by ! ,commission7 h be5 fil$ ) ! ,commission2 7,b7 ! digital commodity relat$ p]son or digital commodity affiliat$ p]son has held ! units = n less ?an #ab mon?s2 & 7,c7 ! aggregate am\nt ( ! units ( ! digital commodity (f]$ or sold by ! digital commodity relat$ p]son or digital commodity affiliat$ p]son is-- 7i7 9 any #ab-mon? p]iod1 or %ort] p]iod z ! ,commission may prescribe1 n less ?an #e p]c5t or great] ?an #bj p]c5t ( ! total units ( ! digital commodity acquir$ directly f its issu] 7or an ag5t or und]writ] !re(7 by ! digital commodity relat$ p]son or digital commodity affiliat$ p]son1 z det]m9$ by ! ,commission pursuant to p>agraph 7#c72 & 7ii7 an am\nt1 z det]m9$ by ! ,commission pursuant to p>agraph 7#c71 n less ?an #cj p]c5t or great] ?an #ej p]c5t ( ! total units ( ! digital commodity acquir$ directly f its issu] 7or an ag5t or und]writ] !re(7 by ! digital commodity relat$ p]son or digital commodity affiliat$ p]son4 7#b7 ,aft] becom+ a mature block*a9 sy/em ,aft] ! block*a9 sy/em to :i* a digital commodity relates is c]tifi$ z a mature block*a9 sy/em "u section #db ( ! ,securities ,ex*ange ,act ( #aicd1 units ( ! digital commodity acquir$ by a digital commodity relat$ p]son or digital commodity affiliat$ p]son directly f its issu] 7or an ag5t or und]writ] !re(7 pursuant to an inve/m5t contract 9 reliance on section #d7;a77#h7 or ano!r exemption "u ?is ,act1 may be-- 7,a7 (f]$ or sold by a digital commodity relat$ p]son2 or 7,b7 (f]$ or sold by a digital commodity affiliat$ p]son if-- 7i7 in=mation describ$ 9 section #d;,b7b77#e77;,c71 :]e requir$ 7or1 ) respect to a digital commodity n issu$ 9 reliance on section #d7;a77#h71 a comp>able set ( in=mation1 :]e requir$7 is publicly available2 7ii7 ! digital commodity affiliat$ p]son has held ! units = n less ?an ! e>li] (-- 7,i7 #ab mon?s2 or 7,,ii7 #c mon?s foll[+ ! date on :i* ! block*a9 sy/em is c]tifi$ z a mature block*a9 sy/em "u section #db ( ! ,securities ,ex*ange ,act ( #aicd2 & 7iii7 ! aggregate am\nt ( ! units ( ! digital commodity (f]$ or sold by ! digital commodity affiliat$ p]son 9 any #ab-mon? p]iod is an am\nt1 z det]m9$ by ! ,commission pursuant to p>agraph 7#c71 n less ?an #e p]c5t or great] ?an #aj p]c5t ( ! total out/&+ am\nt ( ! digital commodity4 7#c7 ,rulemak+s requir$ ,n lat] ?an #bgj days aft] ! date ( ! enactm5t ( ?is section1 consi/5t ) protect+ inve/ors1 ma9ta9+ fair1 ord]ly1 & effici5t m>kets1 & facilitat+ capital =mation1 & to fo/] ! developm5t ( mature block*a9 sy/ems1 ! ,commission1 by rule1 aft] notice & comm5t-- 7,a7 %all set ! p]c5tage am\nts describ$ 9 p>agraphs 7#a77;,c77i71 7#a77;,c77ii71 & 7#b77;,b77iii72 & 7,b7 may provide an exemption f ! limitation describ$ 9 p>agraph 7#a77;,c77ii71 if ! ,commission requires any (f] or sale pursuant to su* exemption ( a digital commodity relat$ to a block*a9 sy/em t has fail$ to become a mature block*a9 sy/em "u ?is ,act or any rule promulgat$ h]eund] to be accompani$ by ! disclosures requir$ "u1 z applicable1 section #d;,b7e77#a77;,a7 or section #bjb7;c77#b77;,b77iii77,,ii7 ( ! ,,cl>ity ,act ( #bjbe4 7d7 ,rules ( con/ruction ,= purposes ( ?is section1 ! use ( a digital commodity 9 ! programmatic function+ ( ! block*a9 sy/em to :i* x relates is n an (f] or sale ( a digital commodity4 7e7 ,manipulative & deceptive devices2 report+ 7#a7 ,9 g5]al ,x %all be unlawful = any digital commodity issu]1 digital commodity relat$ p]son1 or digital commodity affiliat$ p]son1 directly or indirectly1 by ! use ( any means or in/rum5tality ( int]/ate comm]ce or ( ! mails1 to use or employ1 9 connection ) ! pur*ase or sale ( any digital commodity1 any manipulative or deceptive device or contrivance 9 contrav5tion ( su* rules & regulations z ! ,commission may prescribe z necess>y or appropriate 9 ! public int]e/ or = ! protection ( inve/ors4 7#b7 ,affirmative def5se ,n lat] ?an #bgj days aft] ! date ( ! enactm5t ( ?is section1 ! ,commission %all issue rules to implem5t p>agraph 7#a71 includ+ by provid+ any affirmative def5ses to an en=cem5t action !reund] z ! ,commission may prescribe z necess>y or appropriate 9 ! public int]e/ or = ! protection ( inve/ors4 7#c7 ,report+ ,n lat] ?an #bgj days aft] ! date ( ! enactm5t ( ?is section1 ! ,commission %all issue rules to prescribe su* transaction report+ & b5eficial own]%ip disclosure obligations applicable to digital commodity relat$ p]sons & digital commodity affiliat$ p]sons1 z necess>y or appropriate 9 ! public int]e/ or = ! protection ( inve/ors4 7#d7 ,diff]5tiation betwe5 p]sons ,9 issu+ rules requir$ "u p>agraphs 7#b7 & 7#c71 ! ,commission %all diff]5tiate betwe5 digital commodity relat$ p]sons & digital commodity affiliat$ p]sons1 z necess>y or appropriate 9 ! public int]e/ or = ! protection ( inve/ors4 7f7 ,c]ta9 units receiv$ prior to enactm5t ,a unit ( a digital commodity receiv$ f ! digital commodity issu] prior to ! date ( ! enactm5t ( ?is section ?r\gh an (f] or sale ( an inve/m5t contract involv+ units ( a digital commodity 9 reliance on an exemption f regi/ration "u ?is ,act1 includ+ z provid$ "u section #c1 #d7;a71 or #ai1 may be (f]$ or sold by a digital commodity relat$ p]son or digital commodity affiliat$ p]son1 if-- 7#a7 ! digital commodity issu] is no long] engag$ 9 mat]ial ongo+ ef=ts relat$ to ! block*a9 sy/em to :i* ! digital commodity relates & ! block*a9 sy/em to :i* ! digital commodity relates is c]tifi$ z a mature block*a9 sy/em "u section #db ( ! ,securities ,ex*ange ,act ( #aicd2 or 7#b7 ! appropriate disclosures requir$ "u section #bjb7;c77#b77;,b7 ( ! ,,cl>ity ,act ( #bjbe h be5 made ) ! ,commission4 7g7 ,rulemak+ on fur!r usage ( digital commodities ,! ,commission1 consi/5t ) protect+ inve/ors1 ma9ta9+ fair1 ord]ly1 & effici5t m>kets1 & facilitat+ capital =mation1 z well z fo/]+ ! developm5t ( mature block*a9 sy/ems1 may1 by rule1 exempt unconditionally or on /at$ t]ms or conditions1 a digital commodity relat$ p]son or a digital commodity affiliat$ p]son1 or any class !re(1 f ! requirem5ts ( ?is section = ! (f] or sale ( a digital commodity1 includ+ = ! purposes ( promot+ m>ket liquidity4 4 #bje4 ,mature block*a9 sy/em requirem5ts ,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 ,mature block*a9 sy/ems 7a7 ,c]tification ( block*a9 sy/ems 7#a7 ,c]tification ,a digital commodity issu]1 digital commodity relat$ p]son1 digital commodity affiliat$ p]son1 dec5traliz$ gov]nance sy/em ( ! block*a9 sy/em1 or a regi/]$ digital commodity ex*ange1 or any o!r appropriate p]son z designat$ by ! ,commission1 may c]tify to ! ,commission t ! block*a9 sy/em to :i* a digital commodity relates is a mature block*a9 sy/em4 7#b7 ,fil+ requirem5ts ,a c]tification describ$ "u p>agraph 7#a7 %all be fil$ ) ! ,commission1 & include su* in=mation t is reasonably necess>y to e/abli% t ! block*a9 sy/em is n controll$ by any p]son or gr\p ( p]sons "u common control1 :i* may include in=mation reg>d+-- 7,a7 ! op]ation ( ! block*a9 sy/em2 7,b7 ! functionality ( ! relat$ digital commodity2 7,c7 h[ ! m>ket value ( ! digital commodity is sub/antially d]iv$ f ! programmatic function+ ( su* block*a9 sy/em2 7,d7 any dec5traliz$ gov]nance sy/em :i* relates to ! block*a9 sy/em2 & 7,e7 ! curr5t roles1 if any1 ( ! digital commodity issu]1 digital commodity affiliat$ p]sons1 & digital commodity relat$ p]sons :]e su* roles are mat]ial to ! developm5t or op]ation ( su* block*a9 sy/em or ! dec5traliz$ gov]nance sy/em ( su* block*a9 sy/em4 7#c7 ,rebuttable presumption ,! ,commission may rebut a c]tification describ$ "u p>agraph 7#a7 ) respect to a block*a9 sy/em if ! ,commission1 )9 #fj days ( receiv+ su* c]tification1 det]m9es t ! block*a9 sy/em is n a mature block*a9 sy/em4 7#d7 ,c]tification review 7,a7 ,9 g5]al ,any block*a9 sy/em t relates to a digital commodity = :i* a c]tification has be5 made "u p>agraph 7#a7 %all be consid]$ a mature block*a9 sy/em #fj days aft] ! date on :i* ! ,commission receives a c]tification "u p>agraph 7#a71 unless ! ,commission notifies ! p]son :o made ! c]tification )9 su* "t t ! ,commission is /ay+ ! c]tification due to-- 7i7 an inadequate explanation by ! p]son mak+ ! c]tification2 or 7ii7 any novel or complex issues :i* require additional "t to consid]4 7,b7 ,public notice ,! ,commission %all make ! foll[+ available to ! public & provide a copy to ! ,commodity ,futures ,trad+ ,commission3 7i7 ,ea* c]tification receiv$ "u p>agraph 7#a74 7ii7 ,ea* /ay ( ! ,commission "u ?is subsection1 & ! reasons !re=4 7iii7 ,any response f a p]son mak+ a c]tification "u p>agraph 7#a7 to a /ay ( ! c]tification by ! ,commission4 7,c7 ,consolidation ,! ,commission may consolidate & treat z "o submission multiple c]tifications made "u p>agraph 7#a7 = ! same block*a9 sy/em :i* relates to a digital commodity :i* are receiv$ dur+ ! review p]iod provid$ "u ?is p>agraph4 7#e7 ,/ay ( c]tification 7,a7 ,9 g5]al ,a notification by ! ,commission pursuant to p>agraph 7#d77;,a7 %all /ay ! c]tification once = up to an additional #abj days f ! date ( ! notification4 7,b7 ,public comm5t p]iod ,be=e ! end ( ! #fj-;day p]iod describ$ "u p>agraph 7#d77;,a71 ! ,commission may beg9 a public comm5t p]iod ( at lea/ #cj days 9 conjunction ) a /ay "u ?is subsection4 7#f7 ,disposition ( c]tification ,a c]tification made "u p>agraph 7#a7 %all-- 7,a7 become effective-- 7i7 ^u ! publication ( a notification f ! ,commission to ! p]son :o made ! c]tification t ! ,commission does n object to ! c]tification2 or 7ii7 at ! expiration ( ! c]tification review p]iod2 & 7,b7 n become effective ^u ! publication ( a notification f ! ,commission to ! p]son :o made ! c]tification t ! ,commission has rebutt$ ! c]tification4 7#g7 ,rec]tification ,) respect to a block*a9 sy/em = :i* a c]tification has be5 rebutt$ "u ?is subsection1 no p]son may make a c]tification "u p>agraph 7#a7 ) respect to su* block*a9 sy/em dur+ ! #ij-;day p]iod beg9n+ on ! date ( su* rebuttal4 7#h7 ,appeal ( rebuttal 7,a7 ,9 g5]al ,if a c]tification is rebutt$ "u ?is section1 ! p]son mak+ su* c]tification may appeal ! decision to ! ,unit$ ,/ates ,c\rt ( ,appeals = ! ,di/rict ( ,columbia1 n lat] ?an #fj days aft] ! notice ( rebuttal is made4 7,b7 ,review ,9 an appeal "u subp>agraph 7,a71 ! c\rt %all h de novo review ( ! det]m9ation to rebut ! c]tification4 7b7 ,maturity crit]ia 7#a7 ,s5se ( ,congress ,x is ! s5se ( ! ,congress t protect+ inve/ors1 ma9ta9+ fair1 ord]ly1 & effici5t m>kets1 & facilitat+ capital =mation necessitates e/abli%+ cle> crit]ia = block*a9 sy/ems to be deem$ mature1 z well z enabl+ ! ,commission to develop1 )\t prejudice to any su* crit]ia codifi$ 9 /atute1 alt]native crit]ia by :i* block*a9 sy/ems may be consid]$ n to be controll$ by any p]son or gr\p ( p]sons "u common control 9 ord] to accommodate *anges 9 m>kets & te*nology4 7#b7 ,9 g5]al ,! ,commission may issue rules id5tify+ conditions by :i* a block*a9 sy/em1 toge!r ) its relat$ digital commodity1 %all be consid]$ a mature block*a9 sy/em1 consi/5t ) ! protection ( inve/ors1 ma9t5ance ( fair1 ord]ly1 & effici5t m>kets1 & ! facilitation ( capital =mation4 7#c7 ,rules ( con/ruction 7,a7 ,no?+ 9 ?is subsection may be con/ru$ to p]mit ! ,commission to impose additional crit]ia to ! crit]ia 9 subsection 7c7 = c]tify+ t a block*a9 sy/em is a mature block*a9 sy/em pursuant to subsection 7c74 7,b7 ,no?+ 9 ?is subsection or subsection 7c7 may be con/ru$ to limit ! ,commission's ability to id5tify alt]native conditions & crit]ia by :i* a block*a9 sy/em may be consid]$ a mature block*a9 sy/em4 7c7 ,deem$ mature 7#a7 ,9 g5]al ,not)/&+ subsection 7b71 = ! purposes ( subsection 7a71 a digital commodity issu]1 digital commodity relat$ p]son1 digital commodity affiliat$ p]son1 or dec5traliz$ gov]nance sy/em ( ! block*a9 sy/em may e/abli% t a block*a9 sy/em1 toge!r ) its relat$ digital commodity1 is n controll$ by any p]son or gr\p ( p]sons "u common control1 if ! block*a9 sy/em1 toge!r ) its relat$ digital asset1 meets ! requirem5ts describ$ 9 p>agraph 7#b7 or 7#c74 7#b7 ,crit]ia = any block*a9 sy/em ,! requirem5ts describ$ 9 ?is p>agraph are ! foll[+3 7,a7 ,sy/em value 7i7 ,m>ket value ,! digital commodity has a value t is sub/antially d]iv$ f ! use & function+ ( ! block*a9 sy/em4 7ii7 ,developm5t ( value me*anism sub/antially complet$ ,:]e ! digital commodity issu] has made public a developm5t plan describ+ h[ ! digital commodity's value is reasonably expect$ to be d]iv$ f ! programmatic function+ ( ! block*a9 sy/em1 ! developm5t ( su* me*anisms has be5 sub/antially complet$4 7,b7 ,functional sy/em ,! block*a9 sy/em all[s network p>ticipants to engage 9 ! activities ! block*a9 sy/em is int5d$ to provide1 includ+-- 7i7 us+1 transmitt+1 or /or+ value1 or o!rwise execut+ transactions1 on ! block*a9 sy/em2 7ii7 deploy+1 execut+1 or access+ s(tw>e or s]vices1 or o!rwise (f]+ or p>ticipat+ 9 s]vices1 deploy$ on or integrat$ ) ! block*a9 sy/em2 7iii7 p>ticipat+ 9 ! cons5sus me*anism1 transaction validation process1 or dec5traliz$ gov]nance sy/em ( ! block*a9 sy/em2 or 7iv7 op]at+ any cli5t1 node1 validator1 or o!r =m ( computational infra/ructure ) respect to ! block*a9 sy/em4 7,c7 ,op5 & int]op]able sy/em ,! block*a9 sy/em-- 7i7 is compos$ ( s\rce code t is op5 s\rce2 & 7ii7 does n re/rict or prohibit bas$ on ! ex]cise ( unilat]al au?ority any p]son1 o!r ?an a digital commodity issu]1 digital commodity relat$ p]son1 or digital commodity affiliat$ p]son f engag+ 9 ! activities ! block*a9 sy/em is int5d$ to provide1 includ+ ! activities describ$ 9 subp>agraph 7,b74 7,d7 ,programmatic sy/em ,! block*a9 sy/em op]ates1 executes1 & en=ces its op]ations & transactions bas$ solely on pre-e/abli%$1 transp>5t rules encod$ directly )9 ! s\rce code ( ! block*a9 sy/em4 7,e7 ,sy/em gov]nance ,no p]son or gr\p ( p]sons "u common control-- 7i7 has ! unilat]al au?ority1 directly or indirectly1 ?r\gh any contract1 arrangem5t1 und]/&+1 relation%ip1 or o!rwise1 to control or mat]ially alt] ! functionality1 op]ation1 or rules ( cons5sus or agreem5t ( ! block*a9 sy/em or its relat$ digital commodity2 or 7ii7 has ! unilat]al au?ority to direct ! vot+1 9 ! aggregate1 ( #bj p]c5t or m ( ! out/&+ vot+ p[] ( su* block*a9 sy/em by means ( a relat$ digital commodity1 nodes or validators1 a dec5traliz$ gov]nance sy/em1 or o!rwise1 9 a block*a9 sy/em :i* c be alt]$ by a vot+ sy/em4 7,f7 ,imp>tial sy/em ,no p]son or gr\p ( p]sons "u common control possesses a unique p]mission or privilege ) respect to functionality1 op]ation1 or rules ( cons5sus or agreem5t ( ! block*a9 sy/em or its relat$ digital commodity1 unless su* alt]ation-- 7i7 addresses errors1 regul> ma9t5ance1 or cyb]security risks ( ! block*a9 sy/em t affect ! programmatic function+ ( ! block*a9 sy/em2 & 7ii7 is adopt$ ?r\gh ! cons5sus or agreem5t ( a dec5traliz$ gov]nance sy/em4 7,g7 ,di/ribut$ own]%ip ,no digital commodity issu]1 digital commodity relat$ p]son1 or digital commodity affiliat$ p]son b5eficially owns1 9 ! aggregate1 #bj p]c5t or m ( ! total am\nt ( units ( ! digital commodity4 7#c7 ,optional crit]ia = preexi/+ block*a9 sy/ems ,! requirem5ts describ$ 9 ?is p>agraph are t ! block*a9 sy/em-- 7,a7 0 creat$ prior to ! date ( enactm5t ( ?is section2 7,b7 met ! requirem5ts ( subp>agraphs 7,a7 ?r\gh 7,f7 ( p>agraph 7#b7 prior to ! date ( enactm5t ( ?is section2 & 7,c7 at lea/ #ej p]c5t ( ! units ( ! digital commodity relat$ to ! block*a9 sy/em are held by p]sons o!r ?an ! digital commodity issu]1 a digital commodity relat$ p]son1 or a digital commodity affiliat$ p]son4 7d7 ,dec5traliz$ gov]nance sy/em 7#a7 ,= ! purposes ( ?is section1 a dec5traliz$ gov]nance sy/em is n a p]son or a gr\p ( p]sons "u common control4 7#b7 ,a block*a9 sy/em1 toge!r ) its digital commodity1 %all n be preclud$ f be+ consid]$ a mature block*a9 sy/em solely bas$ on a functional1 adm9i/rative1 cl]ical1 or m9i/]ial action ( a dec5traliz$ gov]nance sy/em1 includ+ any su* action tak5 by a p]son act+ on behalf ( & at ! direction ( ! dec5traliz$ gov]nance sy/em1 z det]m9$ by ! ,commission & consi/5t ) ! protection ( inve/ors1 ma9t5ance ( fair1 ord]ly1 & effici5t m>kets1 & ! facilitation ( capital =mation4 7e7 ,rulemak+ ,n m ?an #bgj days aft] ! date ( enactm5t ( ?is section1 ! ,commission %all issue rules to c>ry out ?is section4 4 #bjf4 ,effective date ,unless o!rwise provid$ 9 ?is title1 ?is title & ! am5dm5ts made by ?is title %all take effect #cfj days aft] ! date ( enactm5t ( ?is ,act1 except t1 to ! ext5t a provision ( ?is title requires a rulemak+1 ! provision %all take effect on ! lat] (-- 7#a7 #cfj days aft] ! date ( enactm5t ( ?is ,act2 or 7#b7 #fj days aft] ! publication 9 ! ,f$]al ,regi/] ( ! f9al rule implem5t+ ! provision4 ,,iii ,regi/ration = ,int]m$i>ies at ! ,securities & ,ex*ange ,commission #cja4 ,treatm5t ( digital commodities & p]mitt$ paym5t /ableco9s 7a7 ,securities ,act ( #aicc ,section #b7;a77#a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a77#a771 z am5d$ by ! ,,g5ius ,act1 is am5d$ by /rik+ ! f9al s5t5ce & ins]t+ ! foll[+3 ,! t]m does n include a digital commodity or p]mitt$ paym5t /ableco944 7b7 ,securities ,ex*ange ,act ( #aicd ,section #c7;a77#aj7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a771 z am5d$ by ! ,,g5ius ,act1 is am5d$ by /rik+ ! f9al s5t5ce & ins]t+ ! foll[+3 ,! t]m does n include a digital commodity or p]mitt$ paym5t /ableco944 7c7 ,inve/m5t ,advis]s ,act ( #aidj ,section #bjb7;a7 ( ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#b7;a77 is am5d$-- 7#a7 9 p>agraph 7#ah71 z am5d$ by ! ,,g5ius ,act1 by /rik+ ! f9al s5t5ce & ins]t+ ! foll[+3 ,! t]m does n include a digital commodity or p]mitt$ paym5t /ableco942 7#b7 by r$esignat+ ! second p>agraph 7#bi7 7relat+ to commodity pools7 z p>agraph 7#ca72 & 7#c7 by add+ at ! end1 ! foll[+3 7#cb7 ,digital commodity-relat$ t]ms ,! t]ms digital commodity & p]mitt$ paym5t /ableco9 h ! mean+ giv5 ^? t]ms1 respectively1 "u section #b7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a774 4 7d7 ,inve/m5t ,company ,act ( #aidj ,section #b7;a7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#b7 is am5d$-- 7#a7 9 p>agraph 7#cf71 z am5d$ by ! ,,g5ius ,act1 by /rik+ ! f9al s5t5ce & ins]t+ ! foll[+3 ,! t]m does n include a digital commodity or p]mitt$ paym5t /ableco942 & 7#b7 by add+ at ! end1 ! foll[+3 7#ee7 ,digital commodity-relat$ t]ms ,! t]ms digital commodity & p]mitt$ paym5t /ableco9 h ! mean+ giv5 ^? t]ms1 respectively1 "u section #b7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a774 4 7e7 ,securities ,inve/or ,protection ,act ( #aigj ,section #af ( ! ,securities ,inve/or ,protection ,act ( #aigj 7#ae ,u4,s4,c4 #ghlll7 is am5d$-- 7#a7 9 p>agraph 7#ad71 z am5d$ by ! ,,g5ius ,act1 by /rik+ ! f9al s5t5ce & ins]t+ ! foll[+3 ,! t]m does n include a digital commodity or p]mitt$ paym5t /ableco91 z su* t]ms are def9$1 respectively1 "u section #b7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a772 & 7#b7 by add+ at ! end ! foll[+3 7#ae7 ,treatm5t ( p]mitt$ paym5t /ableco9s ,a p]mitt$ paym5t /ableco91 z def9$ 9 section #b7;a7 ( ! ,securities ,act ( #aicc1 %all n qualify z ca% & a claim = a p]mitt$ paym5t /ableco9 %all n qualify z a claim = ca%4 4 #cjb4 ,anti-fraud au?ority ov] p]mitt$ paym5t /ableco9s & c]ta9 digital commodity transactions 7a7 ,9 g5]al ,section #aj ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;j7 is am5d$-- 7#a7 by mov+ subsection 7c7 s z to appe> aft] subsection 7b72 7#b7 by ins]t+ aft] subsection 7c7 ! foll[+3 7d7 ,to use or employ1 9 connection ) ! pur*ase or sale ( any p]mitt$ paym5t /ableco9 or digital commodity1 by or ?r\gh1 z applicable1 a brok]1 deal]1 national securities ex*ange1 or an alt]native trad+ sy/em1 any manipulative or deceptive device or contrivance 9 contrav5tion ( su* rules & regulations z ! ,commission may prescribe z necess>y or appropriate 9 ! public int]e/ or = ! protection ( inve/ors4 2 & 7#c7 by add+ at ! end ! foll[+3 ,rules promulgat$ "u subsection 7b7 t prohibit fraud1 manipulation1 or insid] trad+ 7b n rules impos+ or specify+ report+ or recordkeep+ requirem5ts1 proc$ures1 or /&>ds z prophylactic measures aga9/ fraud1 manipulation1 or insid] trad+71 & judicial prec$5ts decid$ "u subsection 7b7 & rules promulgat$ !reund] t prohibit fraud1 manipulation1 or insid] trad+1 %all apply ) respect to p]mitt$ paym5t /ableco9 & digital commodity transactions engag$ 9 by or ?r\gh a brok] or deal] or ?r\gh an alt]native trad+ sy/em or1 z applicable1 a national securities ex*ange to ! same ext5t z !y apply to securities transactions4 ,judicial prec$5ts decid$ "u section #ag7;a7 ( ! ,securities ,act ( #aicc & sections #i1 #ae1 #af1 #bj1 & #ba;,a ( ?is title1 & judicial prec$5ts decid$ "u applicable rules promulgat$ "u su* sections1 %all apply to p]mitt$ paym5t /ableco9s & digital commodities ) respect to ^? circum/ances 9 :i* ! p]mitt$ paym5t /ableco9s & digital commodities are1 z applicable1 brok]$1 trad$1 or cu/odi$ by or ?r\gh a brok] or deal] or ?r\gh an alt]native trad+ sy/em or a national securities ex*ange to ! same ext5t z !y apply to securities44 4 7b7 ,treatm5t ( p]mitt$ paym5t /ableco9s ,title ,i ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 is am5d$ by ins]t+ aft] section #f ! foll[+3 #f;,a4 ,treatm5t ( transactions 9 p]mitt$ paym5t /ableco9s 7a7 ,au?ority ,to brok]1 trade1 & cu/ody p]mitt$ paym5t /ableco9s ,p]mitt$ paym5t /ableco9s may be brok]$1 trad$1 or cu/odi$ by a brok] or deal] or ?r\gh an alt]native trad+ sy/em or national securities ex*ange4 7b7 ,commission jurisdiction ,! ,commission %all only h jurisdiction ov] a transaction 9 a p]mitt$ paym5t /ableco9 ) respect to ^? circum/ances 9 :i* a p]mitt$ paym5t /ableco9 is brok]$1 trad$1 or cu/odi$-- 7#a7 by a brok] or deal]2 7#b7 ?r\gh a national securities ex*ange2 or 7#c7 ?r\gh an alt]native trad+ sy/em4 7c7 ,limitation ,subsection 7b7 %all only apply to a transaction describ$ 9 subsection 7b7 = ! purposes ( regulat+ ! (f]1 execution1 solicitation1 or acceptance ( a p]mitt$ paym5t /ableco9 9 ^? circum/ances 9 :i* ! p]mitt$ paym5t /ableco9 is brok]$1 trad$1 or cu/odi$-- 7#a7 by a brok] or deal]2 7#b7 ?r\gh a national securities ex*ange2 or 7#c7 ?r\gh an alt]native trad+ sy/em4 4 #cjc4 ,eligibility ( alt]native trad+ sy/ems 7a7 ,9 g5]al ,section #e ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;e7 is am5d$-- 7#a7 by /rik+ ,x & ins]t+ ! foll[+3 7a7 ,9 g5]al ,x 2 & 7#b7 by add+ at ! end ! foll[+3 7b7 ,digital commodity protections 7#a7 ,9 g5]al ,! ,commission may n preclude a trad+ plat=m f op]at+ pursuant to a cov]$ exemption to ex*ange regi/ration "u section #f ( ?is title on ! basis t ! assets trad$ or to be trad$ on su* plat=m include-- 7,a7 digital commodities or p]mitt$ paym5t /ableco9s2 & 7,b7 securities4 7#b7 ,cov]$ exemption ,9 ?is subsection1 ! t]m cov]$ exemption means an exemption-- 7,a7 describ$ 9 subsection 7a77#b72 or 7,b7 ) respect to any o!r rule ( ! ,commission relat+ to ! def9ition ( ex*ange4 4 7b7 ,securities ,ex*ange ,act ( #aicd ,section #c7;a77#b7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a77#b77 is am5d$ by add+ at ! end ! foll[+3 ,nei!r an alt]native trad+ sy/em pr$om9antly facilitat+ ! trad+ ( digital commodities1 p]mitt$ paym5t /ableco9s1 or bo?1 relative to its securities trad$1 nor a digital commodity ex*ange1 is a facility ( an ex*ange44 7c7 ,rule ( con/ruction ,no?+ 9 ?is section1 ! am5dm5ts made by ?is section1 or section #cjd may be con/ru$ to-- 7#a7 prohibit a national securities ex*ange f own+ or op]at+ any o!r type ( alt]native trad+ sy/em2 or 7#b7 create a presumption t any o!r type ( alt]native trad+ sy/em own$ or op]at$ by a national securities ex*ange is a facility ( t ex*ange4 #cjd4 ,rulemak+ = dual-regi/]$ entities 7a7 ,conflict ( int]e/ policies & proc$ures ,ea* p]son or entity dual-regi/]$ ) ! ,commodity ,futures ,trad+ ,commission z p]mitt$ "u section #ae7p7 ( ! ,securities ,ex*ange ,act ( #aicd %all e/abli%1 ma9ta91 &1 z applicable1 en=ce & comply ) writt5 policies & proc$ures reasonably design$ to mitigate any conflicts ( int]e/1 includ+ ) respect to transactions or arrangem5ts ) affiliates regi/]$ ) ! ,securities & ,ex*ange ,commission1 tak+ into consid]ation ! nature ( ! bus9ess ( su* p]son or entity4 7b7 ,exemption f duplicative1 conflict+1 or unduly burd5some provisions ,! ,securities & ,ex*ange ,commission %all prescribe rules = a p]son or entity ) multiple regi/rations1 :]e at lea/ "o su* regi/ration includes any dual regi/ration p]mitt$ "u section #ae7p7 ( ! ,securities ,ex*ange ,act ( #aicd1 to exempt ! p]son or entity f duplicative1 conflict+1 or unduly burd5some provisions ( ! ,securities ,ex*ange ,act ( #aicd & rules !reund]1 to ! ext5t su* an exemption w\ld protect inve/ors1 ma9ta9 fair1 ord]ly1 & effici5t m>kets1 & facilitate capital =mation4 7c7 ,implem5t+ organizations ,! ,securities & ,ex*ange ,commission %all require any regi/]$ national securities association t has z a memb] a regi/]$ brok] or regi/]$ deal] t is regi/]$ ) ! ,commodity ,futures ,trad+ ,commission z a digital commodity brok] or digital commodity deal] z p]mitt$ "u section #ae7p77#a7 ( ! ,securities ,ex*ange ,act ( #aicd or o!rwise transacts 9 p]mitt$ paym5t /ableco9s to revise su* rules z may be necess>y to fur!r ! purposes ( & compliance ) ?is section4 7d7 ,memor&um ( und]/&+ ,! ,securities & ,ex*ange ,commission %all ent] into a memor&um ( und]/&+ ) ! ,commodity ,futures ,trad+ ,commission to ensure-- 7#a7 non-duplicative sup]vision & en=cem5t ) respect to regi/rants ( ! ,securities & ,ex*ange ,commission dual-regi/]$ ) ! ,commodity ,futures ,trad+ ,commission z p]mitt$ "u section #ae7p7 ( ! ,securities ,ex*ange ,act ( #aicd2 & 7#b7 appropriate in=mation %>+ betwe5 ! ,commissions to fur!r ! purposes ( & compliance ) ?is section1 ! ,securities ,ex*ange ,act ( #aicd1 & ! ,commodity ,ex*ange ,act4 7e7 ,rule ( con/ruction ,no?+ 9 ?is section %all be con/ru$ to limit ! anti-fraud1 anti-manipulation1 or false report+ en=cem5t au?orities ( ! ,commodity ,futures ,trad+ ,commission ) respect to a contract ( sale ( a commodity & p]sons effect+ su* contracts4 #cje4 ,mod]nization ( recordkeep+ requirem5ts 7a7 ,9 g5]al ,= purposes ( books & records requirem5ts = brok]s1 deal]s1 transf] ag5ts1 national securities ex*anges "u ! ,securities & ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq471 inve/m5t advis]s "u ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#a et seq471 & inve/m5t companies "u ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#a et seq471 a p]son may1 consi/5t ) any rules promulgat$ "u subsection 7b71 utilize records f a block*a9 sy/em4 7b7 ,revision ( rules ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is ,act1 ! ,securities & ,ex*ange ,commission %all issue & revise su* rules z may be necess>y to implem5t ?is section4 #cjf4 ,exemptive au?ority ,section #bh ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #ggz-#c7 is am5d$ by /rik+ by rule or regulation & ins]t+ by rule1 regulation1 or ord]4 #cjg4 ,additional regi/rations ) ! ,commodity ,futures ,trad+ ,commission ,section #ae ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho7 is am5d$ by add+ at ! end ! foll[+3 7p7 ,additional regi/rations ) ! ,commodity ,futures ,trad+ ,commission 7#a7 ,regi/]$ brok]s & deal]s ,a regi/]$ brok] or regi/]$ deal] %all be p]mitt$ to ma9ta9 a regi/ration ) ! ,commodity ,futures ,trad+ ,commission z a digital commodity brok] or digital commodity deal]4 7#b7 ,national securities ex*anges ,a national securities ex*ange or affiliate !re( %all be p]mitt$ to ma9ta9 a regi/ration ) ! ,commodity ,futures ,trad+ ,commission z a digital commodity ex*ange4 7#c7 ,alt]native trad+ sy/ems ,an alt]native trad+ sy/em1 & ! op]ator !re(1 %all be p]mitt$ to ma9ta9 a regi/ration ) ! ,commodity ,futures ,trad+ ,commission z a digital commodity ex*ange4 7#d7 ,notice ( application ,any p]son or entity describ$ 9 p>agraph 7#a7 ?r\gh 7#c7 %all provide to ! ,securities & ,ex*ange ,commission1 at su* "t & 9 su* =m & mann] z ! ,securities & ,ex*ange ,commission %all prescribe1 notice ( any application to regi/] ) ! ,commodity ,futures ,trad+ ,commission z a digital commodity brok]1 digital commodity deal]1 or digital commodity ex*ange4 4 #cjh4 ,exempt+ digital commodities f ,/ate securities laws 7a7 ,cov]$ security ,section #ah7;b7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #ggr7b77 is am5d$ by add+ at ! end ! foll[+3 7#e7 ,exemption 9 connection ) digital commodities ,a digital commodity %all be treat$ z a cov]$ security4 4 7b7 ,rule ( con/ruction ,no?+ 9 ?is section1 section #bjb1 or ! am5dm5ts made by su* sections may be con/ru$ to limit ! exi/+ au?ority describ$ 9 section #ah7;c77#a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #ggr7c77#a77 ( a securities commission 7or any ag5cy or (fice p]=m+ l functions7 ( any ,/ate ) respect to a cov]$ security or any security4 #cji4 ,exclusion = dec5traliz$ f9ance activities ,! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 is am5d$ by ins]t+ aft] section #ae;,g ! foll[+3 #ae;,h4 ,dec5traliz$ f9ance activities n subject to ?is ,act 7a7 ,9 g5]al ,not)/&+ any o!r provision ( ?is ,act1 a p]son %all n be subject to ?is ,act & ! regulations promulgat$ "u ?is ,act bas$ on ! p]son directly or indirectly engag+ 9 any ( ! foll[+ activities1 :e!r s+ly or 9 comb9ation1 9 relation to ! op]ation ( a block*a9 sy/em or 9 relation to a dec5traliz$ f9ance trad+ protocol3 7#a7 ,compil+ network transactions or relay+1 se>*+1 sequ5c+1 validat+1 or act+ 9 a simil> capacity4 7#b7 ,provid+ computational "w1 op]at+ a node or oracle s]vice1 or procur+1 (f]+1 or utiliz+ network b&wid?1 or provid+ o!r simil> incid5tal s]vices4 7#c7 ,provid+ a us]-int]face t enables a us] to read & access data ab\t a block*a9 sy/em4 7#d7 ,develop+1 publi%+1 con/itut+1 adm9i/]+1 ma9ta9+1 or o!rwise di/ribut+ a block*a9 sy/em or a dec5traliz$ f9ance trad+ protocol4 7#e7 ,develop+1 publi%+1 con/itut+1 adm9i/]+1 ma9ta9+1 or o!rwise di/ribut+ a dec5traliz$ f9ance messag+ sy/em1 or op]at+ or p>ticipat+ 9 a liquidity pool1 = ! purpose ( execut+ a spot contract = ! pur*ase or sale ( a digital commodity 9 relation to a dec5traliz$ f9ance trad+ protocol4 7#f7 ,develop+1 publi%+1 con/itut+1 adm9i/]+1 ma9ta9+1 or o!rwise di/ribut+ s(tw>e or sy/ems t create or deploy h>dw>e or s(tw>e1 includ+ wallets or o!r sy/ems1 facilitat+ an individual us]'s own p]sonal ability to keep1 safegu>d1 or cu/ody ! us]'s digital assets or relat$ private keys4 7b7 ,exceptions ,subsection 7a7 %all n apply to ! anti-fraud & anti-manipulation au?orities ( ! ,commission4 4 #caj4 ,treatm5t ( cu/ody activities by bank+ in/itutions 7a7 ,treatm5t ( cu/ody activities ,! appropriate ,f$]al bank+ ag5cy1 ! ,national ,cr$it ,union ,adm9i/ration 79 ! case ( a cr$it union71 & ! ,securities & ,ex*ange ,commission may n require a depository in/itution1 national bank1 ,f$]al cr$it union1 ,/ate cr$it union1 tru/ company1 brok]1 or deal]1 or any affiliate !re( 7! entity7-- 7#a7 to include assets held 9 cu/ody t are n acc\nt$ = z assets ( ! entity z a liability on ! f9ancial /atem5t or balance %eet ( ! entity1 includ+ digital commodity or p]mitt$ paym5t /ableco9 cu/ody or safekeep+ s]vices2 & 7#b7 to hold regulatory capital aga9/ assets1 includ+ res]ves back+ su* assets1 9 cu/ody or safekeep+1 except z necess>y to mitigate aga9/ op]ational risks inh]5t ) ! cu/ody or safekeep+ s]vices1 z det]m9$ by-- 7,a7 ! appropriate ,f$]al bank+ ag5cy2 7,b7 ! ,national ,cr$it ,union ,adm9i/ration 79 ! case ( a cr$it union72 7,c7 a ,/ate bank sup]visor2 7,d7 a ,/ate cr$it union sup]visor 7z def9$ 9 section #fjjc ( ! ,anti-,money ,laund]+ ,act ( #bjbj 7#ca ,u4,s4,c4 #ecaa note772 or 7,e7 ! ,securities & ,ex*ange ,commission 79 ! case ( a brok] or deal]74 7b7 ,def9itions ,9 ?is section3 7#a7 ,bank+ t]ms ,! t]ms appropriate ,f$]al bank+ ag5cy1 depository in/itution1 national bank1 & ,/ate bank sup]visor h ! mean+ giv5 ^? t]ms1 respectively1 "u section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7#b7 ,cr$it union t]ms ,! t]ms ,f$]al cr$it union & ,/ate cr$it union h ! mean+ giv5 ^? t]ms1 respectively1 "u section #aja ( ! ,f$]al ,cr$it ,union ,act 7#ab ,u4,s4,c4 #ageb74 #caa4 ,brok] & deal] disclosures reg>d+ ! treatm5t ( assets 7a7 ,9 g5]al ,n lat] ?an #bgj days aft] ! date ( ! enactm5t ( ?is ,act1 ! ,securities & ,ex*ange ,commission %all issue rules requir+ writt5 disclosures reg>d+ ! treatm5t ( cu/om] assets 9 ! ev5t ( an insolv5cy1 resolution1 or liquidation proce$+ to be provid$ by a regi/]$ brok] or deal] to an inve/or be=e a digital commodity1 a p]mitt$ paym5t /ableco91 or an inve/m5t contract involv+ a unit ( a digital commodity is receiv$1 acquir$1 or held by ! brok] or deal] = ! acc\nt ( ! inve/or1 :i* %all include1 z necess>y or appropriate = ! protection ( inve/ors-- 7#a7 a description ( ! mann] 9 :i* any digital commodity1 p]mitt$ paym5t /ableco91 or inve/m5t contact involv+ a unit ( a digital commodity receiv$1 acquir$1 or held by ! brok] or deal] = ! acc\nt ( su* inve/or w\ld be treat$ 9 an insolv5cy1 resolution1 or liquidation proce$+ ) respect to ! brok] or deal] "u-- 7,a7 title ,,ii ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #echa et seq472 7,b7 ! ,securities ,inve/or ,protection ,act ( #aigj 7#ae ,u4,s4,c4 #gh;aaa et seq472 or 7,c7 z applicable1 *apt] #g or *apt] #aa ( title #aa1 ,unit$ ,/ates ,code2 & 7#b7 h[ ! treatm5t describ$ 9 p>agraph 7#a7 diff]s f ! treatm5t ( securities & ca% receiv$1 acquir$1 or held by ! brok] or deal] = ! acc\nt ( su* inve/or 9 ! ev5t ( an insolv5cy1 resolution1 or liquidation proce$+ ) respect to ! brok] or deal] "u ea* law describ$ "u subp>agraph 7,a7 ?r\gh 7,c7 ( p>agraph 7#a74 #cab4 ,digital commodity activities t are f9ancial 9 nature 7a7 ,digital commodity activities t are f9ancial 9 nature ,section #d7k77#d7 ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahdc7k77#d77 is am5d$-- 7#a7 9 subp>agraph 7,a71 by /rik+ or securities & ins]t+ 1 securities1 or digital commodities2 & 7#b7 9 subp>agraph 7,e71 by ins]t+ or digital commodities be=e ! p]iod at ! end4 7b7 ,national bank activity 7#a7 ,9 g5]al ,a national bank may use a digital asset or block*a9 sy/em to p]=m1 provide1 or deliv] any activity1 function1 product1 or s]vice t ! national bank is o!rwise au?oriz$ by law to p]=m1 provide1 or deliv]4 7#b7 ,rule ( con/ruction ,no?+ 9 ?is subsection may be con/ru$ to exempt a national bank's p]=mance1 provision1 or deliv]y ( an activity1 function1 product1 or s]vice f a requirem5t t w\ld apply if ! activity 7 n p]=m$1 provid$1 or deliv]$ us+ a digital asset or block*a9 sy/em4 7c7 ,insur$ ,/ate banks & subsidi>ies ( insur$ ,/ate banks ,= purposes ( sections #bd7;a7 & #bd7;d7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahca;a7a7 & 7d771 all ( ! activities au?oriz$ = a national bank "u subsection 7b7 t are pr9cipal activities %all be p]missible = an insur$ ,/ate bank & subsidi>y ( an insur$ ,/ate bank4 #cac4 ,effective date2 adm9i/ration ,except z o!rwise provid$ "u ?is title1 ?is title & ! am5dm5ts made by ?is title %all take effect #cfj days aft] ! date ( enactm5t ( ?is ,act1 except t1 to ! ext5t a provision ( ?is title requires a rulemak+1 ! provision %all take effect on ! lat] (-- 7#a7 #cfj days aft] ! date ( enactm5t ( ?is ,act2 or 7#b7 #fj days aft] ! publication 9 ! ,f$]al ,regi/] ( ! f9al rule implem5t+ ! provision4 #cad4 ,educational mat]ial requirem5ts ,! ,securities & ,ex*ange ,commission1 9 consultation ) ! ,commodity ,futures ,trad+ ,commission1 %all require any regi/]$ entity t facilitates ! trad+ ( digital commodities or inve/m5t contracts involv+ units ( a digital commodity to provide cle> & accessible educational mat]ials to ! public1 includ+-- 7#a7 an ov]view ( h[ block*a9 te*nology functions2 7#b7 a description ( common risks associat$ ) digital commodities2 7#c7 a description ( ! diff]5ces betwe5 digital commodity m>kets & traditional f9ancial m>kets2 7#d7 in=mation on report+ requirem5ts relat$ to digital commodity transactions or inve/m5t contracts involv+ units ( a digital commodity2 & 7#e7 guidance on recogniz+ fraudul5t s*emes & in/ructions = report+ suspect$ fraud4 #cae4 ,discretion>y ,surplus ,fund 7a7 ,9 g5]al ,! doll> am\nt specifi$ "u section #g7;a77#c77;,a7 ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #bhi7;a77#c77;,a77 is r$uc$ by #ae1jjj1jjj4 7b7 ,effective date ,! am5dm5t made by subsection 7a7 %all take effect on ,septemb] #cj1 #bjce4 ,,iv ,regi/ration = ,digital ,commodity ,int]m$i>ies at ! ,commodity ,futures ,trad+ ,commission #dja4 ,commission jurisdiction ov] digital commodity transactions 7a7 ,sav+s clause ,section #b7;a77#a7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #b7;a77#a77 is am5d$ by add+ at ! end ! foll[+3 7,j7 ,except z expressly provid$ 9 ?is ,act1 no?+ 9 ! ,,cl>ity ,act ( #bjbe %all affect or apply to1 or be int]pret$ to affect or apply to-- 7i7 any agreem5t1 contract1 or transaction t is subject to ?is ,act z-- 7,i7 a contract ( sale ( a commodity = future deliv]y or an option on su* a contract2 7,,ii7 a swap2 7,,iii7 a security futures product2 7,,iv7 an option au?oriz$ "u section #d;c ( ?is ,act2 7,v7 an agreem5t1 contract1 or transaction describ$ 9 subp>agraph 7,c77i7 or 7,d77i7 ( subsection 7c77#b7 ( ?is section2 or 7,,vi7 a lev]age transaction au?oriz$ "u section #ai2 or 7ii7 ! activities ( any p]son ) respect to any su* an agreem5t1 contract1 or transaction4 4 7b7 ,limitation on au?ority ov] p]mitt$ paym5t /ableco9s ,section #b7;c77#a7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #b7;c77#a77 is am5d$-- 7#a7 9 subp>agraph 7,f71 by /rik+ or at ! end2 7#b7 9 subp>agraph 7,g71 by /rik+ ! p]iod & ins]t+ 2 or2 & 7#c7 by add+ at ! end ! foll[+3 7,h7 p]mitt$ paym5t /ableco9s4 4 7c7 ,commission jurisdiction ov] f9anc+ agreem5ts ,section #b7;c77#b77;,d7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #b7;c77#b77;,d77 is am5d$-- 7#a7 9 clause 7ii77,i71 by ins]t+ aft] p>agraph 7#a7 ! foll[+3 7o!r ?an an agreem5t1 contract1 or transaction 9 a p]mitt$ paym5t /ableco972 & 7#b7 by r$esignat+ clause 7iv7 z clause 7v7 & ins]t+ aft] clause 7iii7 ! foll[+3 7iv7 ,agreem5ts = m>g9 f9anc+ ,not)/&+ clause 7iii71 a digital commodity brok] may1 subject to ! requirem5ts ( section #du7c77#b71 (f] to or ent] into an agreem5t = m>g9 f9anc+ ) a cu/om] = ! pur*ase or sale ( a digital commodity1 provid$ any pur*ase or sale made pursuant to ! agreem5t %all result 9 ! deliv]y ( ! digital commodity into or f an acc\nt c>ri$ = ! cu/om] by ! digital commodity brok]1 z det]m9$ by ! ,commission by rule or regulation1 bas$ on comm]cial spot m>ket practices4 4 7d7 ,commission au?ority ov] c]ta9 digital commodity & /ableco9 spot transactions ,section #b7;c77#b7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #b7;c77#b77 is am5d$ by add+ at ! end ! foll[+3 7,f7 ,commission jurisdiction ) respect to digital commodity transactions 7i7 ,9 g5]al ,subject to sections #f;d & #ab7;e71 ! ,commission %all h exclusive jurisdiction ) respect to any acc\nt1 agreem5t1 contract1 or transaction involv+ a contract ( sale ( a digital commodity or tradable asset 7z def9$ 9 section #dx7 9 int]/ate comm]ce1 includ+ 9 a digital commodity or tradable asset 7z s def9$7 ca% or spot m>ket1 t is (f]$1 solicit$1 trad$1 facilitat$1 execut$1 cle>$1 report$1 or o!rwise dealt 9-- 7,i7 on or subject to ! rules ( a regi/]$ entity or an entity t is requir$ to be regi/]$ z a regi/]$ entity2 or 7,,ii7 by any o!r entity regi/]$1 or requir$ to be regi/]$1 ) ! ,commission4 7ii7 ,limitations ,clause 7i7 %all n apply ) respect to-- 7,i7 cu/odial or depository activities = a digital commodity ( an entity regulat$ by an appropriate ,f$]al bank+ ag5cy or a ,/ate bank sup]visor 7)9 ! mean+ ( section #c ( ! ,f$]al ,deposit ,insurance ,act72 or 7,,ii7 an (f] or sale ( an inve/m5t contract involv+ a digital commodity or ( a securities (f] or sale involv+ a digital commodity4 7iii7 ,mix$ digital asset transactions 7,i7 ,9 g5]al ,clause 7i7 %all n apply to a mix$ digital asset transaction4 7,,ii7 ,reports on mix$ digital asset transactions ,a digital commodity issu]1 digital commodity relat$ p]son1 digital commodity affiliat$ p]son1 or o!r p]son regi/]$ ) ! ,securities & ,ex*ange ,commission t engages 9 a mix$ digital asset transaction1 %all1 on reque/ ( ! ,commission1 op5 to inspection & exam9ation by ! ,commission all books & records relat+ to ! mix$ digital asset transaction1 subject to ! confid5tiality & disclosure requirem5ts ( section #h4 7,g7 ,agreem5ts1 contracts1 & transactions 9 /ableco9s 7i7 ,treatm5t ( p]mitt$ paym5t /ableco9s on commission-regi/]$ entities ,subject to clauses 7ii7 & 7iii71 ! ,commission %all h jurisdiction ov] a ca% or spot agreem5t1 contract1 or transaction 9 a p]mitt$ paym5t /ableco9 t is (f]$1 (f]$ to ent] into1 ent]$ into1 execut$1 solicit$1 or accept$1 or = :i* ! execution ( is confirm$-- 7,i7 on or subject to ! rules ( a regi/]$ entity2 or 7,,ii7 by any o!r entity regi/]$ ) ! ,commission4 7ii7 ,p]mitt$ paym5t /ableco9 transaction rules ,?is ,act %all apply to a transaction describ$ 9 clause 7i7 only = ! purpose ( regulat+ ! (f]1 execution1 solicitation1 or acceptance ( a ca% or spot p]mitt$ paym5t /ableco9 transaction on a regi/]$ entity or by any o!r entity regi/]$ ) ! ,commission1 z if ! p]mitt$ paym5t /ableco9 7 a digital commodity4 7iii7 ,no au?ority ov] p]mitt$ paym5t /ableco9s ,not)/&+ clauses 7i7 & 7ii71 ! ,commission %all n make a rule or regulation1 impose a requirem5t or obligation on a regi/]$ entity or o!r entity regi/]$ ) ! ,commission1 or impose a requirem5t or obligation on a p]mitt$ paym5t /ableco9 issu]1 reg>d+ ! op]ation ( a p]mitt$ paym5t /ableco9 issu] or a p]mitt$ paym5t /ableco94 4 7e7 ,con=m+ am5dm5ts ,! ,commodity ,ex*ange ,act is am5d$-- 7#a7 9 section #a;a7#i7 7#g ,u4,s4,c4 #a;a7#i771 z am5d$ by ! ,,g5ius ,act1 by /rik+ ! second s5t5ce2 & 7#b7 9 section #b7;a77#a77;,a7 7#g ,u4,s4,c4 #b7;a77#a77;,a771 9 ! #a/ s5t5ce1 by ins]t+ subp>agraphs 7,f7 & 7,g7 ( subsection 7c77#b7 ( ?is section or be=e section #ai4 #djb4 ,requir+ futures commission m]*ants to use qualifi$ digital asset cu/odians ,section #d;d ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #f;d7 is am5d$-- 7#a7 9 subsection 7a77#b7-- 7,a7 9 ! #a/ proviso1 by /rik+ any bank or tru/ company & ins]t+ any bank1 tru/ company1 or qualifi$ digital asset cu/odian1 z applicable12 & 7,b7 by ins]t+ 3 ,provid$ fur!r1 ,t any su* prop]ty t is a digital asset %all be held 9 a qualifi$ digital asset cu/odian be=e ! p]iod at ! end2 & 7#b7 9 subsection 7f77#c77;,a77i71 by /rik+ any bank or tru/ company & ins]t+ any bank1 tru/ company1 or qualifi$ digital asset cu/odian4 #djc4 ,trad+ c]tification & approval = digital commodities ,section #e;c ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #g;a-#b7 is am5d$-- 7#a7 9 subsection 7a71 by /rik+ #e7;d7 & #e;b7c77#b7 & ins]t+ #e7;d71 #e;b7c77#b71 & #e;i7c72 7#b7 9 subsection 7b7-- 7,a7 9 ea* ( p>agraphs 7#a7 & 7#b71 by ins]t+ digital commodity ex*ange1 be=e d]ivatives2 & 7,b7 9 p>agraph 7#c71 by ins]t+ digital commodity ex*ange1 be=e d]ivatives ea* place x appe>s2 7#c7 9 subsection 7c7-- 7,a7 9 p>agraph 7#b71 by ins]t+ or p>ticipants be=e 79 a2 7,b7 9 p>agraph 7#d77;,b71 by /rik+ #a;a7#aj7 & ins]t+ #a;a7#i72 & 7,c7 9 p>agraph 7#e71 by add+ at ! end ! foll[+3 7,d7 ,special rules = digital commodity contracts ,9 c]tify+ any new rule or rule am5dm5t1 or li/+ any new contract or in/rum5t1 9 connection ) a contract ( sale ( a commodity = future deliv]y1 option1 swap1 or o!r agreem5t1 contract1 or transaction1 t is bas$ on or ref]5ces a digital commodity1 a regi/]$ entity %all make or rely on a c]tification "u subsection 7d7 = ! digital commodity4 2 & 7#d7 by ins]t+ aft] subsection 7c7 ! foll[+3 7d7 ,c]tifications = digital commodity trad+ 7#a7 ,9 g5]al ,not)/&+ subsection 7c71 = ! purposes ( li/+ or (f]+ a digital commodity = trad+ 9 a digital commodity ca% or spot m>ket1 an eligible entity %all submit a writt5 c]tification to ! ,commission t ! digital commodity meets ! requirem5ts ( ?is ,act 7includ+ ! regulations prescrib$ "u ?is ,act74 7#b7 ,cont5ts ( ! c]tification 7,a7 ,9 g5]al ,9 mak+ a writt5 c]tification "u ?is p>agraph1 ! eligible entity %all furni% to ! ,commission an analysis ( h[ ! digital commodity meets ! requirem5ts ( section #e;i7c77#c74 7,b7 ,reliance on prior disclosures ,9 mak+ a c]tification "u ?is subsection1 an eligible entity may rely on ! records & disclosures ( any relevant p]son regi/]$ ) ! ,securities & ,ex*ange ,commission or o!r ,/ate or ,f$]al ag5cy4 7#c7 ,modifications 7,a7 ,9 g5]al ,an eligible entity %all modify a c]tification made "u p>agraph 7#a7 to-- 7i7 acc\nt = significant *anges 9 any in=mation provid$ to ! ,commission "u p>agraph 7#b77;,a77ii72 or 7ii7 p]mit or re/rict trad+ 9 units ( a digital commodity held by a digital commodity relat$ p]son or a digital commodity affiliat$ p]son4 7,b7 ,rec]tification ,modifications requir$ by ?is subsection %all be subject to ! same disapproval & review process z a new c]tification "u p>agraphs 7#d7 & 7#e74 7#d7 ,disapproval 7,a7 ,9 g5]al ,! writt5 c]tification describ$ 9 p>agraph 7#a7 %all become effective unless ! ,commission f9ds t ! li/+ ( ! digital commodity is inconsi/5t ) ! requirem5ts ( ?is ,act or ! rules & regulations prescrib$ "u ?is ,act4 7,b7 ,analysis requir$ ,! ,commission %all include1 ) any f9d+s ref]r$ to 9 subp>agraph 7,a71 a detail$ analysis ( ! factors on :i* ! decision 0 bas$4 7,c7 ,public f9d+s ,! ,commission %all make public any disapproval decision1 & any relat$ f9d+s & analysis1 made "u ?is p>agraph4 7#e7 ,review 7,a7 ,9 g5]al ,unless ! ,commission makes a disapproval decision "u p>agraph 7#d71 ! writt5 c]tification describ$ 9 p>agraph 7#a7 %all become effective1 pursuant to ! c]tification by ! eligible entity & notice ( ! c]tification to ! public 79 a mann] det]m9$ by ! ,commission7 on ! date t is-- 7i7 #bj bus9ess days aft] ! date ! ,commission receives ! c]tification 7or su* %ort] p]iod z det]m9$ by ! ,commission by rule or regulation71 9 ! case ( a digital commodity t has n be5 c]tifi$ "u ?is section or = :i* a c]tification is be+ modifi$ "u p>agraph 7#c72 or 7ii7 #a bus9ess day aft] ! date ! ,commission receives ! c]tification 7or su* %ort] p]iod z det]m9$ by ! ,commission by rule or regulation7 = any digital commodity t has be5 c]tifi$ "u ?is section4 7,b7 ,ext5sions ,! "t = consid]ation "u subp>agraph 7,a7 may be ext5d$ ?r\gh notice to ! eligible entity t !re are novel or complex issues t require additional "t to analyze1 t ! explanation by ! submitt+ eligible entity is inadequate1 or ( a pot5tial inconsi/5cy ) ?is ,act-- 7i7 once1 = #cj bus9ess days1 ?r\gh writt5 notice to ! eligible entity by ! ,commission2 & 7ii7 once1 = an additional #cj bus9ess days1 ?r\gh writt5 notice to ! eligible entity f ! ,commission t includes a description ( any defici5cies ) ! c]tification1 includ+ any-- 7,i7 novel or complex issues :i* require additional "t to analyze2 7,,ii7 miss+ in=mation or inadequate explanations2 or 7,,iii7 pot5tial inconsi/5cies ) ?is ,act4 7#f7 ,prior approval be=e regi/ration 7,a7 ,9 g5]al ,a p]son apply+ = regi/ration ) ! ,commission = ! purposes ( li/+ or (f]+ a digital commodity = trad+ 9 a digital commodity ca% or spot m>ket may reque/ t ! ,commission grant prior approval = ! p]son to li/ or (f] ! digital commodity on be+ regi/]$ ) ! ,commission4 7,b7 ,reque/ = prior approval ,a p]son seek+ prior approval "u subp>agraph 7,a7 %all furni% ! ,commission ) a writt5 c]tification t ! digital commodity meets ! requirem5ts ( ?is ,act 7includ+ ! regulations prescrib$ "u ?is ,act7 & ! in=mation describ$ 9 p>agraph 7#b74 7,c7 ,deadl9e ,! ,commission %all take f9al action on a reque/ = prior approval n lat] ?an #ij bus9ess days aft] submission ( ! reque/1 unless ! p]son submitt+ ! reque/ agrees to an ext5sion ( ! "t limitation e/abli%$ "u ?is subp>agraph4 7,d7 ,disapproval 7i7 ,9 g5]al ,! ,commission %all approve ! li/+ ( ! digital commodity unless ! ,commission f9ds t ! li/+ is inconsi/5t ) ?is ,act 7includ+ any regulation prescrib$ "u ?is ,act74 7ii7 ,analysis requir$ ,! ,commission %all include1 ) any f9d+s made "u clause 7i71 a detail$ analysis ( ! factors on :i* ! decision is bas$4 7iii7 ,public f9d+s ,! ,commission %all make public any disapproval decision1 & any relat$ f9d+s & analysis1 made "u ?is p>agraph4 7#g7 ,eligible entity def9$ ,9 ?is subsection1 ! t]m eligible entity means a regi/]$ entity or gr\p ( regi/]$ entities act+ jo9tly4 4 #djd4 ,regi/ration ( digital commodity ex*anges ,! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq47 is am5d$ by ins]t+ aft] section #e;h ! foll[+3 #e;i4 ,regi/ration ( digital commodity ex*anges 7a7 ,9 g5]al 7#a7 ,regi/ration 7,a7 ,9 g5]al ,a trad+ facility t (f]s or seeks to (f] a ca% or spot m>ket 9 at lea/ #a digital commodity %all regi/] ) ! ,commission z a digital commodity ex*ange4 7,b7 ,application ,a p]son desir+ to regi/] z a digital commodity ex*ange %all submit to ! ,commission an application 9 su* =m & conta9+ su* in=mation z ! ,commission may require = ! purpose ( mak+ ! det]m9ations requir$ = approval4 7,c7 ,exemptions ,a trad+ facility t (f]s or seeks to (f] a ca% or spot m>ket 9 at lea/ #a digital commodity %all n be requir$ to regi/] "u ?is section if ! trad+ facility-- 7i7 p]mits no m ?an a de m9imis am\nt ( trad+ activity1 z ! ,commission may det]m9e by rule or regulation1 9 a digital commodity2 or 7ii7 s]ves only cu/om]s 9 a s+le ,/ate1 t]ritory1 or possession ( ! ,unit$ ,/ates4 7#b7 ,additional regi/rations 7,a7 ,) ! ,commission ,9 ord] to fo/] ! developm5t ( fair & ord]ly m>kets1 protect cu/om]s1 & promote responsible innovation1 ! ,commission-- 7i7 %all prescribe rules to exempt an entity regi/]$ ) ! ,commission "u m ?an #a section ( ?is ,act f duplicative1 conflict+1 or unduly burd5some provisions ( ?is ,act & ! rules "u ?is ,act2 7ii7 %all prescribe rules to address conflicts ( int]e/s & activities ( ! entity2 & 7iii7 may1 aft] an analysis ( ! risks & b5efits1 prescribe rules to provide = portfolio m>g9+4 7,b7 ,) a regi/]$ futures association 7i7 ,9 g5]al ,a regi/]$ digital commodity ex*ange %all become & rema9 a memb] ( a regi/]$ futures association & comply ) rules relat$ to su* activity1 if ! regi/]$ digital commodity ex*ange accepts cu/om] funds requir$ to be segregat$ "u subsection 7d74 7ii7 ,rulemak+ requir$ ,! ,commission %all require any regi/]$ futures association ) a digital commodity ex*ange z a memb] to provide su* rules z may be necess>y to fur!r compliance ) subsection 7d71 protect cu/om]s1 & promote ! public int]e/4 7,c7 ,regi/ration requir$ ,a p]son requir$ to be regi/]$ z a digital commodity ex*ange "u ?is section %all regi/] ) ! ,commission z su* reg>dless ( :e!r ! p]son is regi/]$ ) ano!r ,/ate or ,f$]al regulator4 7b7 ,trad+ 7#a7 ,prohibition on c]ta9 trad+ practices 7,a7 ,section #d;b %all apply to any agreem5t1 contract1 or transaction 9 a digital commodity z if ! agreem5t1 contract1 or transaction 7 a contract ( sale ( a commodity = future deliv]y4 7,b7 ,section #d;c %all apply to any agreem5t1 contract1 or transaction 9 a digital commodity z if ! agreem5t1 contract1 or transaction 7 a transaction involv+ ! pur*ase or sale ( a commodity = future deliv]y4 7,c7 ,section #d;b-#a %all apply to any agreem5t1 contract1 or transaction 9 a digital commodity z if ! agreem5t1 contract1 or transaction 7 a contract ( sale ( a commodity = future deliv]y4 7#b7 ,prohibition on act+ z a c\nt]p>ty 7,a7 ,9 g5]al ,a digital commodity ex*ange or any affiliate ( su* an ex*ange %all n trade on or subject to ! rules ( ! digital commodity ex*ange = its own acc\nt4 7,b7 ,exceptions ,subject to any conditions1 requirem5ts1 or limitations impos$ by ! ,commission pursuant to subp>agraph 7,c71 a digital commodity ex*ange may engage 9 trad+ on ! ex*ange s long z ! trad+ is n solely = ! purpose ( ! pr(it ( ! ex*ange1 includ+ ! foll[+3 7i7 ,cu/om] direction ,a transaction =1 or ent]$ into at ! direction (1 or = ! b5efit (1 an unaffiliat$ cu/om]4 7ii7 ,risk managem5t ,a transaction to manage ! cr$it1 m>ket1 & liquidity risks associat$ ) ! digital commodity bus9ess ( ! ex*ange4 7iii7 ,op]ational ne$s ,a transaction relat$ to ! op]ational ne$s ( ! bus9ess ( ! digital commodity ex*ange or its affiliate4 7iv7 ,functional use ,a transaction relat$ to ! functional op]ation ( a block*a9 sy/em4 7,c7 ,rulemak+ ,! ,commission may1 by rule1 e/abli% conditions1 requirem5ts1 or o!r limitations on ! activities ( a digital commodity ex*ange & its affiliate p]mitt$ pursuant to subp>agraph 7,b7 t are necess>y = ! protection ( cu/om]s1 ! promotion ( innovation1 or ! ma9t5ance ( fair1 ord]ly1 & effici5t m>kets4 7,d7 ,notice requirem5t ,9 ord] = a digital commodity ex*ange or any affiliate ( a digital commodity ex*ange to engage 9 trad+ on ! affiliat$ ex*ange pursuant to subsection 7,b71 notice mu/ be giv5 to ! ,commission t %all enum]ate h[ any propos$ activity is consi/5t ) ! exceptions 9 subsection 7,b7 & ! purposes ( ?is ,act4 7c7 ,core pr9ciples = digital commodity ex*anges 7#a7 ,compliance ) core pr9ciples 7,a7 ,9 g5]al ,to be regi/]$1 & ma9ta9 regi/ration1 z a digital commodity ex*ange1 a digital commodity ex*ange %all comply )-- 7i7 ! core pr9ciples describ$ 9 ?is subsection2 & 7ii7 any requirem5t t ! ,commission may impose by rule or regulation pursuant to section #h;a7#e74 7,b7 ,reasonable discretion ( a digital commodity ex*ange ,unless o!rwise det]m9$ by ! ,commission by rule or regulation1 a digital commodity ex*ange describ$ 9 subp>agraph 7,a7 %all h reasonable discretion 9 e/abli%+ ! mann] 9 :i* ! digital commodity ex*ange complies ) ! core pr9ciples describ$ 9 ?is subsection4 7#b7 ,compliance ) rules ,a digital commodity ex*ange %all-- 7,a7 e/abli% & en=ce compliance ) any rule ( ! digital commodity ex*ange1 includ+-- 7i7 ! t]ms & conditions ( ! trades trad$ or process$ on or ?r\gh ! digital commodity ex*ange2 & 7ii7 any limitation on access to ! digital commodity ex*ange2 7,b7 e/abli% & en=ce trad+1 trade process+1 & p>ticipation rules t w det] abuses & h ! capacity to detect1 inve/igate1 & en=ce ^? rules1 includ+ means-- 7i7 to provide m>ket p>ticipants ) imp>tial access to ! m>ket2 & 7ii7 to capture in=mation t may be us$ 9 e/abli%+ :e!r rule violations h occurr$2 & 7,c7 e/abli% rules gov]n+ ! op]ation ( ! ex*ange1 includ+ rules specify+ trad+ proc$ures to be us$ 9 ent]+ & execut+ ord]s trad$ or po/$ on ! facility4 7#c7 ,li/+ /&>ds = digital commodities 7,a7 ,9 g5]al ,a digital commodity ex*ange %all e/abli% policies & proc$ures to p]mit trad+ 9 a digital commodity only if-- 7i7 reports ) respect to ! digital commodity requir$ "u1 z applicable1 section #d;,b7b77#c7 or #d;,b7b77#e77;,c7 ( ! ,securities ,act ( #aicc 7or1 ) respect to a digital commodity n issu$ 9 reliance on section #d7;a77#h7 ( ! ,securities ,act ( #aicc1 a comp>able set ( reports1 :]e requir$ by ! ,securities & ,ex*ange ,commission7 h be5 fil$ ) ! ,securities & ,ex*ange ,commission2 or 7ii7 su* o!r simil> in=mation z ! ,commission may1 by rule or regulation require1 t is relat$ to ! ongo+ developm5t plan ( ! block*a9 sy/em & is able to be publicly asc]ta9$1 has be5 provid$ to ! public4 7,b7 ,public in=mation requirem5ts 7i7 ,9 g5]al ,a digital commodity ex*ange %all-- 7,i7 p]mit trad+ 9 a digital commodity only if ! digital commodity ex*ange reasonably det]m9es t ! in=mation requir$ by clause 7ii7 is correct1 curr5t1 & available to ! public2 & 7,,ii7 e/abli% policies & proc$ures to det]m9e t ! in=mation provid$ pursuant to clause 7ii7 is correct1 curr5t1 & available to ! public4 7ii7 ,requir$ in=mation ,) respect to a digital commodity & ea* block*a9 sy/em to :i* ! digital commodity relates = :i* ! digital commodity ex*ange w make ! digital commodity available to ! cu/om]s ( ! digital commodity ex*ange1 ! foll[+ in=mation3 7,i7 ,s\rce code ,! s\rce code = any block*a9 sy/em to :i* ! digital commodity relates4 7,,ii7 ,transaction hi/ory ,a description ( ! /eps necess>y to indep5d5tly access1 se>*1 & v]ify ! transaction hi/ory ( any block*a9 sy/em to :i* ! digital commodity relates1 to ! ext5t any su* indep5d5t access1 se>*1 & v]ification activities are te*nically feasible ) respect to ! block*a9 sy/em4 7,,iii7 ,digital commodity economics ,a n>rative description ( ! purpose ( any block*a9 sy/em to :i* ! digital commodity relates & ! op]ation ( any su* block*a9 sy/em1 includ+-- 7aa7 in=mation expla9+ ! laun* & supply process1 includ+ ! numb] ( digital assets to be issu$ 9 an initial allocation1 ! total numb] ( digital commodities to be creat$1 ! release s*$ule = ! digital commodities1 & ! total numb] ( digital commodities !n out/&+2 7bb7 in=mation detail+ any applicable cons5sus me*anism or process = validat+ transactions1 me?od ( g5]at+ or m9+ digital commodities1 & any process = burn+ or de/roy+ digital commodities on ! block*a9 sy/em2 7cc7 an explanation ( gov]nance me*anisms = implem5t+ *anges to ! block*a9 sy/em or =m+ cons5sus among hold]s ( ! digital commodities2 & 7dd7 suffici5t in=mation = a ?ird p>ty to create a tool = v]ify+ ! transaction hi/ory ( ! digital asset4 7,,iv7 ,trad+ volume & volatility ,! trad+ volume & volatility ( ! digital commodity on ! ex*ange4 7,v7 ,additional in=mation ,su* additional in=mation z ! ,commission may det]m9e by rule to be necess>y = a cu/om] to und]/& ! f9ancial & op]ational risks ( a digital commodity1 & to be practically feasible to provide4 7iii7 ,=mat ,! ,commission %all prescribe rules & regulations = ! /&>dization & simplification ( disclosures "u clause 7ii71 includ+ requir+ t disclosures-- 7,i7 be conspicu\s2 7,,ii7 use pla9 language compreh5sible to cu/om]s2 7,,iii7 are n draft$ 9 a way t presumes ! cu/om] already has a base k1 famili>ity1 or und]/&+ ( ! basic t]m9ology1 op]ation1 & function ( block*a9 sy/ems2 & 7,,iv7 succ9ctly expla9 ! in=mation t is requir$ to be communicat$ to ! cu/om]4 7iv7 ,reliance on previ\s disclosures ,9 comply+ ) ?is subp>agraph1 a digital commodity ex*ange may rely on & make available to ! public relevant in=mation publicly disclos$ to ! ,commission1 ! ,securities & ,ex*ange ,commission1 or an appropriate ,f$]al bank+ ag5cy4 7,c7 ,digital commodities held by relat$ & digital commodity affiliat$ p]sons ,a digital commodity ex*ange %all e/abli% policies & proc$ures design$ to p]mit ! trad+ ( a unit ( a digital commodity acquir$ f ! issu] & held by a digital commodity affiliat$ p]son or a digital commodity relat$ p]son1 only 9 accordance ) ! requirem5ts ( section #d;,c ( ! ,securities ,act ( #aicc4 7#d7 ,treatm5t ( cu/om] assets ,a digital commodity ex*ange %all e/abli% policies & proc$ures t are design$ to protect & ensure ! safety ( cu/om] money1 assets1 & prop]ty4 7#e7 ,monitor+ ( trad+ & trade process+ 7,a7 ,9 g5]al ,a digital commodity ex*ange %all provide a competitive1 op51 & effici5t m>ket & me*anism = execut+ transactions t protects ! price discov]y process ( trad+ on ! ex*ange4 7,b7 ,protection ( m>kets & m>ket p>ticipants ,a digital commodity ex*ange %all e/abli% & en=ce rules-- 7i7 to protect m>kets & m>ket p>ticipants f abusive practices committ$ by any p>ty1 includ+ abusive practices committ$ by a p>ty act+ z an ag5t = a p>ticipant2 & 7ii7 to promote fair & equitable trad+ on ! ex*ange4 7,c7 ,trad+ proc$ures ,a digital commodity ex*ange %all-- 7i7 e/abli% & en=ce rules or t]ms & conditions def9+1 or specifications detail+-- 7,i7 trad+ proc$ures to be us$ 9 ent]+ & execut+ ord]s trad$ on or ?r\gh ! facilities ( ! digital commodity ex*ange2 & 7,,ii7 proc$ures = trade process+ ( digital commodities on or ?r\gh ! facilities ( ! digital commodity ex*ange2 & 7ii7 monitor trad+ 9 digital commodities to prev5t manipulation1 price di/ortion1 & disruptions1 ?r\gh surveillance1 compliance1 & discipl9>y practices & proc$ures1 includ+ me?ods = conduct+ real-"t monitor+ ( trad+ & compreh5sive & accurate trade recon/ructions4 7#f7 ,ability to obta9 in=mation ,a digital commodity ex*ange %all-- 7,a7 e/abli% & en=ce rules t w all[ ! facility to obta9 any necess>y in=mation to p]=m any ( ! functions describ$ 9 ?is section2 7,b7 provide ! in=mation to ! ,commission on reque/2 & 7,c7 h ! capacity to c>ry out su* int]national in=mation-%>+ agreem5ts z ! ,commission may require4 7#g7 ,em]g5cy au?ority ,a digital commodity ex*ange %all adopt rules to provide = ! ex]cise ( em]g5cy au?ority1 9 consultation or coop]ation ) ! ,commission or a regi/]$ entity1 z is necess>y & appropriate1 includ+ ! au?ority to facilitate ! liquidation or transf] ( op5 positions 9 any digital commodity or to susp5d or curtail trad+ 9 a digital commodity4 7#h7 ,timely publication ( trad+ in=mation 7,a7 ,9 g5]al ,a digital commodity ex*ange %all make public timely in=mation on price1 trad+ volume1 & o!r trad+ data on digital commodities to ! ext5t prescrib$ by ! ,commission4 7,b7 ,capacity ( digital commodity ex*ange ,a digital commodity ex*ange %all h ! capacity to electronically capture & transmit trade in=mation ) respect to transactions execut$ on ! ex*ange4 7#i7 ,recordkeep+ & report+ 7,a7 ,9 g5]al ,a digital commodity ex*ange %all-- 7i7 ma9ta9 records relat+ to ! bus9ess ( ! 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 su* records ( digital commodities :i* relate to a security op5 to inspection & exam9ation by ! ,securities & ,ex*ange ,commission4 7,b7 ,in=mation-%>+ ,subject to section #h1 & on reque/1 ! ,commission %all %>e in=mation collect$ "u subp>agraph 7,a7 )-- 7i7 ! ,bo>d2 7ii7 ! ,securities & ,ex*ange ,commission2 7iii7 ea* appropriate ,f$]al bank+ ag5cy2 7iv7 ea* appropriate ,/ate bank sup]visor 7)9 ! mean+ ( section #c ( ! ,f$]al ,deposit ,insurance ,act72 7v7 ! ,f9ancial ,/ability ,ov]sight ,c\ncil2 7vi7 ! ,dep>tm5t ( ,ju/ice2 & 7vii7 any o!r p]son t ! ,commission det]m9es to be appropriate1 includ+-- 7,i7 =eign f9ancial sup]visors 7includ+ =eign futures au?orities72 7,,ii7 =eign c5tral banks2 & 7,,iii7 =eign m9i/ries4 7,c7 ,confid5tiality agreem5t ,be=e ! ,commission may %>e in=mation ) any entity describ$ 9 subp>agraph 7,b71 ! ,commission %all receive a writt5 agreem5t f ! entity /at+ t ! entity %all abide by ! confid5tiality requirem5ts describ$ 9 section #h relat+ to ! in=mation on digital commodities t is provid$4 7,d7 ,provid+ in=mation ,a digital commodity ex*ange %all provide to ! ,commission 7includ+ any designee ( ! ,commission7 in=mation "u subp>agraph 7,a7 9 su* =m & at su* frequ5cy z is requir$ by ! ,commission4 7#aj7 ,antitru/ consid]ations ,unless necess>y or appropriate to a*ieve ! purposes ( ?is ,act1 a digital commodity ex*ange %all n-- 7,a7 adopt any rules or take any actions t result 9 any unreasonable re/ra9t ( trade2 or 7,b7 impose any mat]ial anticompetitive burd5 on trad+4 7#aa7 ,conflicts ( int]e/ ,! digital commodity ex*ange %all e/abli% & en=ce rules-- 7,a7 to m9imize conflicts ( int]e/ 9 ! decision mak+ processes ( ! contract m>ket2 & 7,b7 to e/abli% a process = resolv+ conflicts ( int]e/ ref]r$ to 9 subp>agraph 7,a74 7#ab7 ,f9ancial res\rces 7,a7 ,9 g5]al ,a digital commodity ex*ange %all h adequate f9ancial1 op]ational1 & manag]ial res\rces1 z det]m9$ by ! ,commission1 to dis*>ge ea* responsibility ( ! digital commodity ex*ange4 7,b7 ,m9imum am\nt ( f9ancial res\rces ,a digital commodity ex*ange %all possess f9ancial res\rces t1 at a m9imum1 exce$ ! sum (-- 7i7 ! total am\nt t w\ld enable ! digital commodity ex*ange to cov] ! op]at+ co/s ( ! digital commodity ex*ange = a #a-ye> p]iod1 z calculat$ on a roll+ basis2 & 7ii7 ! total am\nt necess>y to meet ! f9ancial obligations ( ! digital commodity ex*ange to all cu/om]s ( ! digital commodity ex*ange4 7#ac7 ,discipl9>y proc$ures ,a digital commodity ex*ange %all e/abli% & en=ce discipl9>y proc$ures t au?orize ! digital commodity ex*ange to discipl9e1 susp5d1 or expel memb]s or m>ket p>ticipants t violate ! rules ( ! digital commodity ex*ange1 or simil> me?ods = p]=m+ ! same functions1 includ+ delegation ( ! functions to ?ird p>ties4 7#ad7 ,gov]nance fitness /&>ds 7,a7 ,gov]nance arrangem5ts ,a digital commodity ex*ange %all e/abli% gov]nance arrangem5ts t are transp>5t & design$ to p]mit consid]ation ( ! views ( m>ket p>ticipants4 7,b7 ,fitness /&>ds ,a digital commodity ex*ange %all e/abli% & en=ce appropriate fitness /&>ds =-- 7i7 (fic]s & directors2 & 7ii7 any individual or entity ) direct access to1 or control (1 cu/om] assets4 7#ae7 ,sy/em safegu>ds ,a digital commodity ex*ange %all-- 7,a7 e/abli% & ma9ta9 a program ( risk analysis & ov]sight to id5tify & m9imize s\rces ( op]ational & security risks1 ?r\gh ! developm5t ( appropriate controls & proc$ures1 & automat$ sy/ems 9 accordance ) indu/ry /&>ds1 t-- 7i7 are reliable & secure2 & 7ii7 h adequate scalable capacity2 7,b7 e/abli% & ma9ta9 em]g5cy proc$ures1 backup res\rces1 & a plan = disa/] recov]y t all[ =-- 7i7 ! timely recov]y & resumption ( op]ations2 & 7ii7 ! fulfillm5t ( ! responsibilities & obligations ( ! digital commodity ex*ange2 & 7,c7 p]iodically conduct te/s to v]ify t ! backup res\rces ( ! digital commodity ex*ange are suffici5t to ensure cont9u$-- 7i7 ord] process+ & trade mat*+2 7ii7 price report+2 7iii7 m>ket surveillance2 & 7iv7 ma9t5ance ( a compreh5sive & accurate audit trail4 7d7 ,hold+ ( cu/om] assets 7#a7 ,9 g5]al ,a digital commodity ex*ange %all hold cu/om] money1 assets1 & prop]ty 9 a mann] to m9imize ! risk ( loss to ! cu/om] or unreasonable delay 9 cu/om] access to ! money1 assets1 & prop]ty ( ! cu/om]4 7#b7 ,segregation ( funds 7,a7 ,9 g5]al ,a digital commodity ex*ange %all treat & deal ) all money1 assets1 & prop]ty t is receiv$ by ! digital commodity ex*ange1 or accrues to a cu/om] z ! result ( trad+ 9 digital commodities1 z belong+ to ! cu/om]4 7,b7 ,comm+l+ prohibit$ ,money1 assets1 & prop]ty describ$ 9 subp>agraph 7,a7 %all be sep>ately acc\nt$ = & %all n be comm+l$ ) ! funds ( ! digital commodity ex*ange or be us$ to m>g91 secure1 or gu>antee any trades or acc\nts ( any cu/om] or p]son o!r ?an ! p]son = :om ! same are held4 7,c7 ,exceptions 7i7 ,use ( funds 7,i7 ,9 g5]al ,not)/&+ subp>agraph 7,a71 money1 assets1 & prop]ty describ$ 9 subp>agraph 7,a7 may1 = conv5i5ce1 be comm+l$ & deposit$ 9 ! same acc\nt or acc\nts ) any bank1 tru/ company1 d]ivatives cle>+ organization1 or qualifi$ digital asset cu/odian4 7,,ii7 ,)drawal ,not)/&+ subp>agraph 7,a71 su* %>e ( ! money1 assets1 & prop]ty describ$ 9 subp>agraph 7,a7 z 9 ! normal c\rse ( bus9ess %all be necess>y to m>g91 gu>antee1 secure1 transf]1 adju/1 or settle a contract ( sale ( a digital commodity ) a regi/]$ entity may be )drawn & appli$ to su* purposes1 includ+ ! paym5t ( commissions1 brok]age1 int]e/1 taxes1 /orage1 & o!r *>ges1 lawfully accru+ 9 connection ) ! contract4 7ii7 ,commission action ,not)/&+ subp>agraph 7,a71 9 accordance ) su* t]ms & conditions z ! ,commission may prescribe by rule1 regulation1 or ord]1 any money1 assets1 or prop]ty ( ! cu/om]s ( a digital commodity ex*ange may be comm+l$ & deposit$ 9 cu/om] acc\nts ) any o!r money1 assets1 or prop]ty receiv$ by ! digital commodity ex*ange & requir$ by ! ,commission to be sep>ately acc\nt$ = & treat$ & dealt ) z belong+ to ! cu/om] ( ! digital commodity ex*ange4 7#c7 ,p]mitt$ inve/m5ts ,money describ$ 9 p>agraph 7#b7 may be inve/$ 9 obligations ( ! ,unit$ ,/ates1 9 g5]al obligations ( any ,/ate or ( any political subdivision ( a ,/ate1 & 9 obligations fully gu>ante$ z to pr9cipal & int]e/ by ! ,unit$ ,/ates1 or 9 any o!r inve/m5t t ! ,commission may by rule or regulation prescribe1 & su* inve/m5ts %all be made 9 accordance ) su* rules & regulations & subject to su* conditions z ! ,commission may prescribe4 7#d7 ,cu/om] protection dur+ bankruptcy 7,a7 ,cu/om] prop]ty ,all assets held on behalf ( a cu/om] by a digital commodity ex*ange1 & all money1 assets1 & prop]ty ( any cu/om] receiv$ by a digital commodity ex*ange = trad+ or cu/ody1 or to facilitate1 m>g91 gu>antee1 or secure contracts ( sale ( a digital commodity 7includ+ money1 assets1 or prop]ty accru+ to ! cu/om] z ! result ( ! transactions71 %all be consid]$ cu/om] prop]ty = purposes ( section #gfa ( title #aa1 ,unit$ ,/ates ,code4 7,b7 ,transactions ,a transaction involv+ ! sale ( a unit ( a digital commodity occurr+ on or subject to ! rules ( a digital commodity ex*ange %all be consid]$ a contract = ! pur*ase or sale ( a commodity = future deliv]y1 on or subject to ! rules (1 a contract m>ket or bo>d ( trade = purposes ( ! def9ition ( commodity contract 9 section #gfa ( title #aa1 ,unit$ ,/ates ,code4 7,c7 ,ex*anges ,a digital commodity ex*ange %all be consid]$ a futures commission m]*ant = purposes ( section #gfa ( title #aa1 ,unit$ ,/ates ,code4 7,d7 ,assets remov$ f segregation ,assets remov$ f segregation due to a cu/om] election "u p>agraph 7#f7 %all n be consid]$ cu/om] prop]ty = purposes ( section #gfa ( title #aa1 ,unit$ ,/ates ,code4 7#e7 ,misuse ( cu/om] prop]ty 7,a7 ,9 g5]al ,x %all be unlawful-- 7i7 = any digital commodity ex*ange t has receiv$ any cu/om] money1 assets1 or prop]ty = cu/ody to dispose (1 or use any su* money1 assets1 or prop]ty z belong+ to ! digital commodity ex*ange or any p]son o!r ?an a cu/om] ( ! digital commodity ex*ange2 or 7ii7 = any o!r p]son1 includ+ any depository1 o!r digital commodity ex*ange1 or digital asset cu/odian t has receiv$ any cu/om] money1 assets1 or prop]ty = deposit1 to hold1 dispose (1 or use any su* money1 assets1 or prop]ty1 or prop]ty1 z belong+ to ! deposit+ digital commodity ex*ange or any p]son o!r ?an ! cu/om]s ( ! digital commodity ex*ange4 7,b7 ,use fur!r def9$ ,= purposes ( ?is section1 use ( a digital commodity includes utiliz+ any unit ( a digital asset to p>ticipate 9 a block*a9 s]vice def9$ 9 p>agraph 7#f7 or a dec5traliz$ gov]nance sy/em associat$ ) ! digital commodity or ! block*a9 sy/em to :i* ! digital commodity relates 9 any mann] o!r ?an t expressly direct$ by ! cu/om] f :om ! unit ( a digital commodity 0 receiv$4 7#f7 ,p>ticipation 9 block*a9 s]vices 7,a7 ,use ( funds ,a digital commodity ex*ange 7or a designee ( a digital commodity ex*ange7 may use a unit ( a digital commodity belong+ to a cu/om] to provide a block*a9 s]vice = a block*a9 sy/em to :i* ! unit ( ! digital commodity relates if-- 7i7 ! cu/om] expressly p]mits ! use1 9 writ+ to ! digital commodity ex*ange2 & 7ii7 ! digital commodity ex*ange complies ) subp>agraph 7,b74 7,b7 ,limitations 7i7 ,9 g5]al ,! ,commission %all1 by rule1 e/abli% notice & disclosure requirem5ts1 & may1 by rule1 e/abli% any o!r limitations & rules relat$ to a p]mission provid$ "u subp>agraph 7,a7 t are reasonably necess>y to protect cu/om]s1 includ+ eligible contract p>ticipants1 non-eligible contract p>ticipants1 or any o!r class ( cu/om]s4 7ii7 ,cu/om] *oice ,a digital commodity ex*ange may n require a cu/om] to provide ! p]mission ref]r$ to 9 subp>agraph 7,a7 z a condition ( do+ bus9ess on ! ex*ange4 7,c7 ,requirem5ts ,! ,commission may1 by rule1 waive or modify ! requirem5ts ( p>agraph 7#b7 or subsection 7h71 to facilitate ! use ( a unit ( a digital commodity belong+ to a cu/om] to provide a block*a9 s]vice4 7,d7 ,block*a9 s]vice def9$ ,9 ?is p>agraph1 ! t]m block*a9 s]vice means any activity relat+ to validat+ transactions on a block*a9 sy/em1 provid+ security = a block*a9 sy/em1 or o!r simil> activity1 includ+ protocol cons5sus p>ticipation activities describ$ 9 section #b7;a77#cj77;,b7 ( ! ,securities ,act ( #aicc1 requir$ = ! ongo+ op]ation ( a block*a9 sy/em4 7e7 ,m>ket access requirem5ts ,! ,commission may1 by rule1 impose any additional requirem5ts relat$ to ! op]ations & activities ( ! digital commodity ex*ange & an affiliat$ digital commodity brok] necess>y to protect m>ket p>ticipants1 promote fair & equitable trad+ on ! digital commodity ex*ange1 & promote responsible innovation4 7f7 ,designation ( *ief compliance (fic] 7#a7 ,9 g5]al ,a digital commodity ex*ange %all designate an individual to s]ve z a *ief compliance (fic]4 7#b7 ,duties ,! *ief compliance (fic] %all-- 7,a7 report directly to ! bo>d or to ! s5ior (fic] ( ! ex*ange2 7,b7 review compliance ) ! core pr9ciples 9 ?is subsection2 7,c7 9 consultation ) ! bo>d ( ! ex*ange1 a body p]=m+ a function simil> to t ( a bo>d1 or ! s5ior (fic] ( ! ex*ange1 resolve any conflicts ( int]e/ t may arise2 7,d7 e/abli% & adm9i/] ! policies & proc$ures requir$ to be e/abli%$ pursuant to ?is section2 7,e7 ensure compliance ) ?is ,act & ! rules & regulations issu$ "u ?is ,act1 includ+ rules prescrib$ by ! ,commission pursuant to ?is section2 & 7,f7 e/abli% proc$ures = ! rem$iation ( noncompliance issues f\nd dur+ compliance (fice reviews1 look backs1 int]nal or ext]nal audit f9d+s1 self-report$ errors1 or ?r\gh validat$ compla9ts4 7#c7 ,requirem5ts = proc$ures ,9 e/abli%+ proc$ures "u p>agraph 7#b77;,f71 ! *ief compliance (fic] %all design ! proc$ures to e/abli% ! h&l+1 managem5t response1 rem$iation1 rete/+1 & clos+ ( noncompliance issues4 7#d7 ,annual reports 7,a7 ,9 g5]al ,9 accordance ) rules prescrib$ by ! ,commission1 ! *ief compliance (fic] %all annually prep>e & sign a report t conta9s a description (-- 7i7 ! compliance ( ! digital commodity ex*ange ) ?is ,act2 & 7ii7 ! policies & proc$ures1 includ+ ! code ( e?ics & conflicts ( int]e/ policies1 ( ! digital commodity ex*ange4 7,b7 ,requirem5ts ,! *ief compliance (fic] %all-- 7i7 submit ea* report describ$ 9 subp>agraph 7,a7 ) ! appropriate f9ancial report ( ! digital commodity ex*ange t is requir$ to be submitt$ to ! ,commission pursuant to ?is section2 & 7ii7 include 9 ! report a c]tification t1 "u p5alty ( law1 ! report is accurate & complete4 7g7 ,appo9tm5t ( tru/ee 7#a7 ,9 g5]al ,if a proce$+ "u section #e;e results 9 ! susp5sion or revocation ( ! regi/ration ( a digital commodity ex*ange1 or if a digital commodity ex*ange )draws f regi/ration1 ! ,commission1 on notice to ! digital commodity ex*ange1 may apply to ! appropriate ,unit$ ,/ates di/rict c\rt :]e ! digital commodity ex*ange is locat$ = ! appo9tm5t ( a tru/ee4 7#b7 ,assumption ( jurisdiction ,if ! ,commission applies = appo9tm5t ( a tru/ee "u p>agraph 7#a7-- 7,a7 ! c\rt may take exclusive jurisdiction ov] ! digital commodity ex*ange & ! records & assets ( ! digital commodity ex*ange1 :]ev] locat$2 & 7,b7 if ! c\rt takes jurisdiction "u subp>agraph 7,a71 ! c\rt %all appo9t ! ,commission1 or a p]son designat$ by ! ,commission1 z tru/ee ) p[] to take possession & cont9ue to op]ate or t]m9ate ! op]ations ( ! digital commodity ex*ange 9 an ord]ly mann] = ! protection ( cu/om]s subject to su* t]ms & conditions z ! c\rt may prescribe4 7h7 ,qualifi$ digital asset cu/odian ,a digital commodity ex*ange %all hold 9 a qualifi$ digital asset cu/odian ea* unit ( a digital asset t is-- 7#a7 ! prop]ty ( a cu/om] ( ! digital commodity ex*ange2 7#b7 requir$ to be held by ! digital commodity ex*ange "u subsection 7c77#ab7 ( ?is section2 or 7#c7 o!rwise s requir$ by ! ,commission to reasonably protect cu/om]s4 7i7 ,exemptions 7#a7 ,9 g5]al ,9 ord] to promote responsible innovation & fair competition1 or protect cu/om]s1 ! ,commission may 7on its own initiative or on application ( ! digital commodity ex*ange7 exempt1 ei!r unconditionally or on /at$ t]ms or conditions or = /at$ p]iods & ei!r retroactively or prospectively1 or bo?1 a digital commodity ex*ange f ! requirem5ts ( ?is ,act1 if ! ,commission det]m9es t-- 7,a7 ! exemption w\ld be consi/5t ) ! public int]e/ & ! purposes ( ?is ,act2 & 7,b7 ! exemption w n h a mat]ial adv]se effect on ! ability ( ! ,commission or ! digital commodity ex*ange to dis*>ge regulatory or self-regulatory duties "u ?is ,act4 7#b7 ,=eign ex*anges ,! ,commission may exempt1 conditionally or unconditionally1 a digital commodity ex*ange f regi/ration "u ?is section if ! ,commission f9ds t ! digital commodity ex*ange is subject to comp>able1 compreh5sive sup]vision & regulation on a consolidat$ basis by ! appropriate gov]nm5tal au?orities 9 ! home c\ntry ( ! facility4 7j7 ,cu/om] def9$ ,9 ?is section1 ! t]m cu/om] means any p]son t ma9ta9s an acc\nt = ! trad+ ( digital commodities directly ) a digital commodity ex*ange 7o!r ?an a p]son t is own$ or controll$1 directly or indirectly1 by ! digital commodity ex*ange7 = its own behalf or on behalf ( any o!r p]son4 7k7 ,f$]al preemption ,not)/&+ any o!r provision ( law1 ! ,commission %all h exclusive jurisdiction ov] any digital commodity ex*ange regi/]$ "u ?is section ) respect to activities & transactions subject to ?is ,act4 4 #dje4 ,qualifi$ digital asset cu/odians ,! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq471 z am5d$ by ! prec$+ provisions ( ?is ,act1 is am5d$ by ins]t+ aft] section #e;i ! foll[+3 #e;j4 ,qualifi$ digital asset cu/odians 7a7 ,9 g5]al ,a p]son is a qualifi$ digital asset cu/odian = purposes ( ?is ,act if ! p]son-- 7#a7 holds digital assets on behalf ( a p]son regi/]$ "u ?is ,act or a cu/om] ( a p]son regi/]$ "u ?is ,act2 & 7#b7 is 9 compliance ) subsections 7b7 & 7c74 7b7 ,sup]vision requirem5t ,a p]son is 9 compliance ) ?is subsection if ! p]son is subject to-- 7#a7 sup]vision & exam9ation = cu/ody & safekeep+ ( digital assets by an appropriate ,f$]al bank+ ag5cy1 ! ,national ,cr$it ,union ,adm9i/ration1 ! ,commission1 or ! ,securities & ,ex*ange ,commission2 or 7#b7 adequate sup]vision & appropriate regulation = cu/ody & safekeep+ ( digital assets by-- 7,a7 a ,/ate bank sup]visor 7)9 ! mean+ ( section #c ( ! ,f$]al ,deposit ,insurance ,act72 7,b7 a ,/ate (fic]1 ag5cy1 or o!r entity :i* has prim>y regulatory au?ority ov] nondepository ,/ate tru/ companies2 7,c7 a ,/ate cr$it union sup]visor1 z def9$ "u section #fjjc ( ! ,anti-,money ,laund]+ ,act ( #bjbj2 or 7,d7 an appropriate =eign gov]nm5tal au?ority 9 ! home c\ntry ( su* p]son4 7c7 ,o!r requirem5ts ,a p]son %all be 9 compliance ) ?is subsection if3 7#a7 ,n o!rwise prohibit$ ,! p]son has n be5 prohibit$ by its sup]visor f engag+ 9 an activity ) respect to ! cu/ody & safekeep+ ( digital assets4 7#b7 ,in=mation %>+ 7,a7 ,9 g5]al ,! p]son %>es in=mation ) ! ,commission on reque/ & complies ) su* requirem5ts = p]iodic %>+ ( in=mation reg>d+ cu/om] acc\nts t ! p]son holds on behalf ( an entity regi/]$ ) ! ,commission z ! ,commission det]m9es by rule are reasonably necess>y to effectuate any ( ! provisions1 or to accompli% any ( ! purposes1 ( ?is ,act4 7,b7 ,provision ( in=mation ,if ! p]son is subject to regulation & exam9ation by an appropriate ,f$]al bank+ ag5cy1 ! p]son may satisfy any in=mation reque/ describ$ 9 subp>agraph 7,a7 by provid+ ! ,commission ) a detail$ li/+1 9 writ+1 ( ! digital assets ( a cu/om] 9 ! cu/ody (1 or use by1 ! p]son4 7#c7 ,rulemak+ = ,,cftc entities 7,a7 ,9 g5]al ,! ,commission %all prescribe rules to p]mit a p]son regi/]$ ) ! ,commission to be a qualifi$ digital asset cu/odian 9 compliance ) ?is section4 7,b7 ,cont5t ,9 prescrib+ ! rules "u subp>agraph 7,a71 ! ,commission %all require a p]son regi/]$ ) ! ,commission to-- 7i7 implem5t requirem5t consi/5t ) ! requirem5ts 9 subsection 7d77#a72 7ii7 e/abli% suffici5t sy/em safegu>ds2 7iii7 prev5t or mitigate conflicts ( int]e/1 z appropriate2 & 7iv7 e/abli% sep>ate gov]nance arrangem5ts = ! cu/odial function ( ! entity4 7d7 ,adequate sup]vision & appropriate regulation 7#a7 ,9 g5]al ,= purposes ( subsection 7b71 ! t]ms adequate sup]vision & appropriate regulation mean su* m9imum /&>ds = sup]vision & regulation z are reasonably necess>y to protect ! digital assets held by a p]son regi/]$ "u ?is ,act1 includ+ /&>ds relat+ to ! lic5s+1 exam9ation1 & sup]visory processes t require ! p]son to1 at a m9imum-- 7,a7 receive a review & evaluation ( own]%ip1 "* & fitness1 conflicts ( int]e/1 bus9ess model1 f9ancial /atem5ts1 fund+ res\rces1 & policies & proc$ures ( ! p]son2 7,b7 hold capital suffici5t = ! f9ancial integrity ( ! p]son2 7,c7 protect cu/om] assets2 7,d7 e/abli% & ma9ta9 books & records reg>d+ ! bus9ess ( ! p]son2 7,e7 submit f9ancial /atem5ts & audit$ f9ancial /atem5ts to ! applicable sup]visor describ$ 9 subsection 7b72 7,f7 provide disclosures to ! applicable sup]visor describ$ 9 subsection 7b7 reg>d+ actions1 proce$+s1 & o!r items z det]m9$ by ! sup]visor2 7,g7 ma9ta9 & en=ce policies & proc$ures = compliance ) applicable ,/ate & ,f$]al laws1 includ+ ^? relat$ to anti-money laund]+ & cyb]security2 7,h7 e/abli% a bus9ess cont9uity plan to ensure functionality 9 cases ( disruption2 & 7,i7 e/abli% policies & proc$ures to resolve compla9ts4 7#b7 ,rulemak+ ) respect to def9itions 7,a7 ,9 g5]al ,= purposes ( ?is section1 ! ,commission may1 by rule1 fur!r def9e ! t]ms adequate sup]vision & appropriate regulation z necess>y & appropriate = ! protection ( cu/om]s1 & consi/5t ) ! purposes ( ?is ,act4 7,b7 ,exi/+ digital asset cu/odians ,a tru/ company op]at+ z a digital asset cu/odian be=e ! effective date ( a rulemak+ "u subp>agraph 7,a7 is deem$ subject to adequate sup]vision & appropriate regulation if-- 7i7 ! tru/ company is expressly p]mitt$ by a ,/ate bank sup]visor to engage 9 ! cu/ody & safekeep+ ( digital assets2 7ii7 ! ,/ate bank sup]visor has e/abli%$ lic5s+1 exam9ation1 & sup]visory processes t require ! tru/ company to1 at a m9imum1 meet ! conditions describ$ 9 subp>agraphs 7,a7 ?r\gh 7,i7 ( p>agraph 7#a72 & 7iii7 ! tru/ company is 9 good /&+ ) its ,/ate bank sup]visor4 7,c7 ,transition p]iod = c]ta9 cu/odians ,9 implem5t+ ! rulemak+ "u subp>agraph 7,a71 ! ,commission %all provide a transition p]iod ( n less ?an #b ye>s = any tru/ company t is deem$ subject to adequate sup]vision & appropriate regulation "u subp>agraph 7,b7 on ! effective date ( ! rulemak+4 7e7 ,au?ority to tempor>ily susp5d /&>ds ,! ,commission may1 by rule or ord]1 tempor>ily susp5d1 9 :ole or 9 "p1 any requirem5t impos$ "u1 or any /&>d ref]r$ to 91 ?is section1 or any requirem5t to utilize a qualifi$ digital asset cu/odian1 if ! ,commission det]m9es t ! susp5sion w\ld be consi/5t ) ! public int]e/ & ! purposes ( ?is ,act4 4 #djf4 ,regi/ration & regulation ( digital commodity brok]s & deal]s ,! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq47 is am5d$ by ins]t+ aft] section #dt ! foll[+3 #du4 ,regi/ration & regulation ( digital commodity brok]s & deal]s 7a7 ,regi/ration 7#a7 ,requirem5t ,x %all be unlawful = any p]son to act z a digital commodity brok] or digital commodity deal] unless ! p]son is regi/]$ z su* ) ! ,commission4 7#b7 ,additional regi/ration 7,a7 ,rules ,9 ord] to fo/] ! developm5t ( fair & ord]ly m>kets1 protect cu/om]s1 & promote responsible innovation1 ! ,commission-- 7i7 %all prescribe rules to exempt an entity regi/]$ ) ! ,commission "u m ?an #a section ( ?is ,act f duplicative1 conflict+1 or unduly burd5some provisions ( ?is ,act & ! rules "u ?is ,act2 7ii7 %all prescribe rules to address conflicts ( int]e/s & ! activities ( ! entity2 & 7iii7 may aft] an analysis ( ! risks & b5efits1 prescribe rules to provide = portfolio m>g9+4 7,b7 ,) memb]%ip 9 a regi/]$ futures association ,any p]son requir$ to be regi/]$ z a digital commodity brok] or digital commodity deal] "u ?is section %all become & rema9 a memb] ( a regi/]$ futures association4 7b7 ,requirem5ts 7#a7 ,9 g5]al ,a p]son %all regi/] z a digital commodity brok] or digital commodity deal] by fil+ a regi/ration application ) ! ,commission4 7#b7 ,cont5ts 7,a7 ,9 g5]al ,! application %all be made 9 su* =m & mann] z is prescrib$ by ! ,commission1 & %all conta9 su* in=mation z ! ,commission consid]s necess>y conc]n+ ! bus9ess 9 :i* ! applicant is or w be engag$4 7,b7 ,cont9ual report+ ,a p]son t is regi/]$ z a digital commodity brok] or digital commodity deal] %all cont9ue to submit to ! ,commission reports t conta9 su* in=mation p]ta9+ to ! bus9ess ( ! p]son z ! ,commission may require4 7#c7 ,/atutory disqualification ,except to ! ext5t o!rwise specifically provid$ by rule1 regulation1 or ord]1 x %all be unlawful = a digital commodity brok] or digital commodity deal] to p]mit any p]son :o is associat$ ) a digital commodity brok] or a digital commodity deal] & :o is subject to a /atutory disqualification to effect or be involv$ 9 effect+ a contract ( sale ( a digital commodity on behalf ( ! digital commodity brok] or ! digital commodity deal]1 respectively1 if ! digital commodity brok] or digital commodity deal]1 respectively1 knew1 or 9 ! ex]cise ( reasonable c>e %\ld h kn[n1 ( ! /atutory disqualification4 7c7 ,rulemak+ 7#a7 ,9 g5]al ,! ,commission %all prescribe su* rules applicable to regi/]$ digital commodity brok]s & regi/]$ digital commodity deal]s z are appropriate to c>ry out ?is section1 includ+ rules 9 ! public int]e/ t limit ! activities ( digital commodity brok]s & digital commodity deal]s4 7#b7 ,f9anc+ agreem5ts 7,a7 ,9 g5]al ,! ,commission %all prescribe rules & regulations applicable to digital commodity brok]s or digital commodity deal]s :i* %all set =? m9imum requirem5ts relat$ to disclosure1 recordkeep+1 m>g9 f9anc+ arrangem5ts1 rehypo!cation1 capital1 report+1 bus9ess conduct1 docum5tation1 & sup]vision ( employees & ag5ts1 9 connection )-- 7i7 an agreem5t describ$ 9 section #b7;c77#b77;,d77iv72 or 7ii7 any o!r m>g9$1 lev]ag$1 or f9anc+ arrangem5t = ! pur*ase or sale ( a digital commodity ) an eligible contract p>ticipant4 7,b7 ,specific au?ority ,except z prohibit$ 9 section #b7;c77#b77;,g77iii71 ! ,commission may also make1 promulgate1 & en=ce su* rules & regulations z1 9 ! judgm5t ( ! ,commission1 are reasonably necess>y to effectuate any ( ! provisions (1 or to accompli% any ( ! purposes (1 ?is ,act 9 connection ) an agreem5t ref]r$ to 9 subp>agraph 7,a7 ( ?is p>agraph4 7d7 ,capital requirem5ts 7#a7 ,9 g5]al ,ea* digital commodity brok] & digital commodity deal] %all meet su* m9imum capital requirem5ts z ! ,commission may prescribe to address ! risks associat$ ) digital commodity trad+ & to ensure t ! digital commodity brok] or digital commodity deal]1 respectively1 is able1 at all times1 to-- 7,a7 meet1 & cont9ue to meet ! obligations ( su* a regi/rant2 & 7,b7 fulfill obligations to cu/om]s or c\nt]p>ties = any m>g9$1 lev]ag$1 or f9anc$ transactions4 7#b7 ,futures commission m]*ants & o!r deal]s ,ea* futures commission m]*ant1 introduc+ brok]1 digital commodity brok]1 digital commodity deal]1 brok]1 & deal] %all ma9ta9 suffici5t capital to comply ) ! /rict] ( any applicable capital requirem5ts to :i* ! futures commission m]*ant1 introduc+ brok]1 digital commodity brok]1 digital commodity deal]1 brok]1 or deal]1 respectively1 is subject "u ?is ,act or ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq474 7e7 ,report+ & recordkeep+ ,ea* digital commodity brok] & digital commodity deal]-- 7#a7 %all make su* reports z are requir$ by ! ,commission by rule or regulation reg>d+ ! transactions1 positions1 & f9ancial condition ( ! digital commodity brok] or digital commodity deal]1 respectively2 7#b7 %all keep books & records 9 su* =m & mann] & = su* p]iod z may be prescrib$ by ! ,commission by rule or regulation2 & 7#c7 %all keep ! books & records op5 to inspection & exam9ation by any repres5tative ( ! ,commission4 7f7 ,daily trad+ records 7#a7 ,9 g5]al ,ea* digital commodity brok] & digital commodity deal] %all ma9ta9 daily trad+ records ( ! transactions ( ! digital commodity brok] or digital commodity deal]1 respectively1 & all relat$ records 7includ+ relat$ =w>d or d]ivatives transactions7 & record$ communications1 includ+ electronic mail1 in/ant messages1 & record+s ( telephone calls1 = su* p]iod z ! ,commission may require by rule or regulation4 7#b7 ,in=mation requirem5ts ,! daily trad+ records %all include su* in=mation z ! ,commission %all require by rule or regulation4 7#c7 ,c\nt]p>ty records ,ea* digital commodity brok] & digital commodity deal] %all ma9ta9 daily trad+ records = ea* cu/om] or c\nt]p>ty 9 a mann] & =m t is id5tifiable ) ea* digital commodity transaction4 7#d7 ,audit trail ,ea* digital commodity brok] & digital commodity deal] %all ma9ta9 a complete audit trail = conduct+ compreh5sive & accurate trade recon/ructions4 7g7 ,bus9ess conduct /&>ds 7#a7 ,9 g5]al ,ea* digital commodity brok] & digital commodity deal] %all con=m ) su* bus9ess conduct /&>ds z ! ,commission1 by rule or regulation1 prescribes relat$ to-- 7,a7 fraud1 manipulation1 & o!r abusive practices involv+ spot or m>g9$1 lev]ag$1 or f9anc$ digital commodity transactions 7includ+ transactions t are (f]$ b n ent]$ into72 7,b7 dilig5t sup]vision ( ! bus9ess ( ! regi/]$ digital commodity brok] or digital commodity deal]1 respectively2 & 7,c7 su* o!r matt]s z ! ,commission deems appropriate4 7#b7 ,bus9ess conduct requirem5ts ,! ,commission %all1 by rule1 prescribe bus9ess conduct requirem5ts :i*-- 7,a7 require disclosure by a regi/]$ digital commodity brok] & regi/]$ digital commodity deal] to any c\nt]p>ty to ! transaction 7o!r ?an an eligible contract p>ticipant7 (-- 7i7 in=mation ab\t ! mat]ial risks & *>act]i/ics ( ! digital commodity2 & 7ii7 in=mation ab\t ! mat]ial risks & *>act]i/ics ( ! transaction2 7,b7 e/abli% a duty = su* a digital commodity brok] & su* a digital commodity deal] to communicate 9 a fair & balanc$ mann] bas$ on pr9ciples ( fair deal+ & good fai?2 7,c7 e/abli% /&>ds gov]n+ digital commodity brok] & digital commodity deal] m>ket+ & adv]tis+1 includ+ te/imonials & endorsem5ts2 & 7,d7 e/abli% su* o!r /&>ds & requirem5ts z ! ,commission may det]m9e are appropriate = ! protection ( cu/om]s4 7#c7 ,prohibition on fraudul5t practices ,x %all be unlawful = a digital commodity brok] or digital commodity deal] to-- 7,a7 employ any device1 s*eme1 or artifice to defraud any cu/om] or c\nt]p>ty2 7,b7 engage 9 any transaction1 practice1 or c\rse ( bus9ess t op]ates z a fraud or deceit on any cu/om] or c\nt]p>ty2 or 7,c7 engage 9 any act1 practice1 or c\rse ( bus9ess t is fraudul5t1 deceptive1 or manipulative4 7h7 ,duties 7#a7 ,risk managem5t proc$ures ,ea* digital commodity brok] & digital commodity deal] %all e/abli% robu/ & pr(essional risk managem5t sy/ems adequate = manag+ ! day-to-day bus9ess ( ! digital commodity brok] or digital commodity deal]1 respectively4 7#b7 ,disclosure ( g5]al in=mation ,ea* digital commodity brok] & digital commodity deal] %all disclose to ! ,commission in=mation conc]n+-- 7,a7 ! t]ms & conditions ( ! transactions ( ! digital commodity brok] or digital commodity deal]1 respectively2 7,b7 ! trad+ op]ations1 me*anisms1 & practices ( ! digital commodity brok] or digital commodity deal]1 respectively2 7,c7 f9ancial integrity protections relat+ to ! activities ( ! digital commodity brok] or digital commodity deal]1 respectively2 & 7,d7 o!r in=mation relevant to trad+ 9 digital commodities by ! digital commodity brok] or digital commodity deal]1 respectively4 7#c7 ,ability to obta9 in=mation ,ea* digital commodity brok] & digital commodity deal] %all-- 7,a7 e/abli% & en=ce int]nal sy/ems & proc$ures to obta9 any necess>y in=mation to p]=m any ( ! functions describ$ 9 ?is section2 & 7,b7 provide ! in=mation to ! ,commission1 on reque/4 7#d7 ,conflicts ( int]e/ ,ea* digital commodity brok] & digital commodity deal] %all e/abli%1 ma9ta91 & en=ce writt5 policies & proc$ures reasonably design$1 tak+ into consid]ation ! nature ( ! bus9ess ( ! p]son1 to mitigate any conflicts ( int]e/ 9 transactions or arrangem5ts ) affiliates4 7#e7 ,antitru/ consid]ations ,unless necess>y or appropriate to a*ieve ! purposes ( ?is ,act1 a digital commodity brok] or digital commodity deal] %all n-- 7,a7 adopt any process or take any action t results 9 any unreasonable re/ra9t ( trade2 or 7,b7 impose any mat]ial anticompetitive burd5 on trad+ or cle>+4 7i7 ,designation ( *ief compliance (fic] 7#a7 ,9 g5]al ,ea* digital commodity brok] & digital commodity deal] %all designate an individual to s]ve z a *ief compliance (fic]4 7#b7 ,duties ,! *ief compliance (fic] %all-- 7,a7 report directly to ! bo>d or to ! s5ior (fic] ( ! regi/]$ digital commodity brok] or regi/]$ digital commodity deal]2 7,b7 review ! compliance ( ! regi/]$ digital commodity brok] or regi/]$ digital commodity deal] ) respect to ! regi/]$ digital commodity brok] & regi/]$ digital commodity deal] requirem5ts describ$ 9 ?is section2 7,c7 9 consultation ) ! bo>d ( directors1 a body p]=m+ a function simil> to ! bo>d1 or ! s5ior (fic] ( ! organization1 resolve any conflicts ( int]e/ t may arise2 7,d7 be responsible = adm9i/]+ ea* policy & proc$ure t is requir$ to be e/abli%$ pursuant to ?is section2 7,e7 ensure compliance ) ?is ,act 7includ+ regulations71 includ+ ea* rule prescrib$ by ! ,commission "u ?is section2 7,f7 e/abli% proc$ures = ! rem$iation ( noncompliance issues id5tifi$ by ! *ief compliance (fic] ?r\gh any-- 7i7 compliance (fice review2 7ii7 look-back2 7iii7 int]nal or ext]nal audit f9d+2 7iv7 self-report$ error2 or 7v7 validat$ compla9t2 & 7,g7 e/abli% & foll[ appropriate proc$ures = ! h&l+1 managem5t response1 rem$iation1 rete/+1 & clos+ ( noncompliance issues4 7#c7 ,annual reports 7,a7 ,9 g5]al ,9 accordance ) rules prescrib$ by ! ,commission1 ! *ief compliance (fic] %all annually prep>e & sign a report t conta9s a description (-- 7i7 ! compliance ( ! regi/]$ digital commodity brok] or regi/]$ digital commodity deal] ) ?is ,act 7includ+ regulations72 & 7ii7 ea* policy & proc$ure ( ! regi/]$ digital commodity brok] or regi/]$ digital commodity deal] foll[$ by ! *ief compliance (fic] 7includ+ ! code ( e?ics & conflict ( int]e/ policies74 7,b7 ,requirem5ts ,! *ief compliance (fic] %all ensure t a compliance report "u subp>agraph 7,a7-- 7i7 accompanies ea* appropriate f9ancial report ( ! regi/]$ digital commodity brok] or regi/]$ digital commodity deal] t is requir$ to be furni%$ to ! ,commission pursuant to ?is section2 & 7ii7 includes a c]tification t1 "u p5alty ( law1 ! compliance report is accurate & complete4 7j7 ,segregation ( digital commodities 7#a7 ,hold+ ( cu/om] assets 7,a7 ,9 g5]al ,ea* digital commodity brok] & digital commodity deal] %all hold cu/om] money1 assets1 & prop]ty 9 a mann] to m9imize ! risk ( loss to ! cu/om] or unreasonable delay 9 cu/om] access to ! money1 assets1 & prop]ty ( ! cu/om]4 7,b7 ,qualifi$ digital asset cu/odian ,ea* digital commodity brok] & digital commodity deal] %all hold 9 a qualifi$ digital asset cu/odian ea* unit ( a digital asset t is-- 7i7 ! prop]ty ( a cu/om] or c\nt]p>ty ( ! digital commodity brok] or digital commodity deal]1 respectively2 7ii7 requir$ to be held by ! digital commodity brok] or digital commodity deal] "u subsection 7e72 or 7iii7 o!rwise s requir$ by ! ,commission to reasonably protect cu/om]s or promote ! public int]e/4 7#b7 ,segregation ( funds 7,a7 ,9 g5]al ,ea* digital commodity brok] & digital commodity deal] %all treat & deal ) all money1 assets1 & prop]ty t is receiv$ by ! digital commodity brok] or digital commodity deal]1 or accrues to a cu/om] z ! result ( trad+ 9 digital commodities1 z belong+ to ! cu/om]4 7,b7 ,comm+l+ prohibit$ 7i7 ,9 g5]al ,except z provid$ 9 clause 7ii71 ea* digital commodity brok] & digital commodity deal] %all sep>ately acc\nt = money1 assets1 & prop]ty ( a digital commodity cu/om]1 & %all n comm+le any su* money1 assets1 or prop]ty ) ! funds ( ! digital commodity brok] or digital commodity deal]1 respectively1 or use any su* money1 assets1 or prop]ty to m>g91 secure1 or gu>antee any trades or acc\nts ( any cu/om] or p]son o!r ?an ! p]son = :om ! money1 assets1 or prop]ty are held4 7ii7 ,exceptions 7,i7 ,use ( funds 7aa7 ,9 g5]al ,a digital commodity brok] or digital commodity deal] may1 = conv5i5ce1 comm+le & deposit 9 ! same acc\nt or acc\nts ) any bank1 tru/ company1 d]ivatives cle>+ organization1 or qualifi$ digital asset cu/odian money1 assets1 & prop]ty ( cu/om]s4 7bb7 ,)drawal ,! %>e ( ! money1 assets1 & prop]ty describ$ 9 item 7aa7 z 9 ! normal c\rse ( bus9ess %all be necess>y to m>g91 gu>antee1 secure1 transf]1 adju/1 or settle a contract ( sale ( a digital commodity ) a regi/]$ entity may be )drawn & appli$ to su* purposes1 includ+ ! paym5t ( commissions1 brok]age1 int]e/1 taxes1 /orage1 & o!r *>ges1 lawfully accru+ 9 connection ) ! contract4 7,,ii7 ,commission action ,9 accordance ) su* t]ms & conditions z ! ,commission may prescribe by rule1 regulation1 or ord]1 any money1 assets1 or prop]ty ( ! cu/om]s ( a digital commodity brok] or digital commodity deal] may be comm+l$ & deposit$ 9 cu/om] acc\nts ) any o!r money1 assets1 or prop]ty receiv$ by ! digital commodity brok] or digital commodity deal]1 respectively1 & requir$ by ! ,commission to be sep>ately acc\nt$ = & treat$ & dealt ) z belong+ to ! cu/om] ( ! digital commodity brok] or digital commodity deal]1 respectively4 7#c7 ,p]mitt$ inve/m5ts ,money describ$ 9 p>agraph 7#b7 may be inve/$ 9 obligations ( ! ,unit$ ,/ates1 9 g5]al obligations ( any ,/ate or ( any political subdivision ( a ,/ate1 9 obligations fully gu>ante$ z to pr9cipal & int]e/ by ! ,unit$ ,/ates1 or 9 any o!r inve/m5t t ! ,commission may by rule or regulation all[4 7#d7 ,cu/om] protection dur+ bankruptcy 7,a7 ,cu/om] prop]ty ,all money1 assets1 or prop]ty describ$ 9 p>agraph 7#b7 %all be consid]$ cu/om] prop]ty = purposes ( section #gfa ( title #aa1 ,unit$ ,/ates ,code4 7,b7 ,transactions ,a transaction involv+ a unit ( a digital commodity occurr+ ) a digital commodity brok] or digital commodity deal] %all be consid]$ a contract = ! pur*ase or sale ( a commodity = future deliv]y1 on or subject to ! rules (1 a contract m>ket or bo>d ( trade = purposes ( ! def9ition ( a commodity contract 9 section #gfa ( title #aa1 ,unit$ ,/ates ,code4 7,c7 ,brok]s & deal]s ,a digital commodity brok] & a digital commodity deal] %all be consid]$ a futures commission m]*ant = purposes ( section #gfa ( title #aa1 ,unit$ ,/ates ,code4 7,d7 ,assets remov$ f segregation ,assets remov$ f segregation due to a cu/om] election "u p>agraph 7#f7 %all n be consid]$ cu/om] prop]ty = purposes ( section #gfa ( title #aa1 ,unit$ ,/ates ,code4 7#e7 ,misuse ( cu/om] prop]ty 7,a7 ,9 g5]al ,x %all be unlawful-- 7i7 = any digital commodity brok] or digital commodity deal] t has receiv$ any cu/om] money1 assets1 or prop]ty = cu/ody to dispose (1 or use any su* money1 assets1 or prop]ty z belong+ to ! digital commodity brok] or digital commodity deal]1 respectively1 or any p]son o!r ?an a cu/om] ( ! digital commodity brok] or digital commodity deal]1 respectively2 or 7ii7 = any o!r p]son1 includ+ any depository1 digital commodity ex*ange1 o!r digital commodity brok]1 o!r digital commodity deal]1 or digital commodity cu/odian t has receiv$ any cu/om] money1 assets1 or prop]ty = deposit1 to hold1 dispose (1 or use any su* money1 assets1 or prop]ty1 z belong+ to ! deposit+ digital commodity brok] or digital commodity deal] or any p]son o!r ?an ! cu/om]s ( ! digital commodity brok] or digital commodity deal]1 respectively4 7,b7 ,use fur!r def9$ ,= purposes ( ?is section1 use ( a digital commodity includes utiliz+ any unit ( a digital asset to p>ticipate 9 a block*a9 s]vice def9$ 9 p>agraph 7#f7 or a dec5traliz$ gov]nance sy/em associat$ ) ! digital commodity or ! block*a9 sy/em to :i* ! digital commodity relates 9 any mann] o!r ?an t expressly direct$ by ! cu/om] f :om ! unit ( a digital commodity 0 receiv$4 7#f7 ,p>ticipation 9 block*a9 s]vices 7,a7 ,use ( funds ,a digital commodity brok] or digital commodity deal] 7or a designee ( a digital commodity brok] or a digital commodity deal]7 may use a unit ( a digital commodity belong+ to a cu/om] to provide a block*a9 s]vice = a block*a9 sy/em to :i* ! unit ( ! digital commodity relates if-- 7i7 ! cu/om] expressly p]mits ! use1 9 writ+ to ! digital commodity brok] or digital commodity deal]1 z ! case may be2 & 7ii7 ! digital commodity brok] or ! digital commodity deal]1 z ! case may be1 complies ) subp>agraph 7,b74 7,b7 ,limitations 7i7 ,9 g5]al ,! ,commission %all1 by rule1 e/abli% notice & disclosure requirem5ts1 & may1 by rule1 e/abli% any o!r limitations & rules relat$ to a p]mission provid$ "u subp>agraph 7,a7 t are reasonably necess>y to protect cu/om]s1 includ+ eligible contract p>ticipants1 non-eligible contract p>ticipants1 or any o!r class ( cu/om]s4 7ii7 ,cu/om] *oice ,a digital commodity brok] or digital commodity deal] may n require a cu/om] to provide ! p]mission ref]r$ to 9 subp>agraph 7,a7 z a condition ( do+ bus9ess ) ! brok] or deal]4 7,c7 ,requirem5ts ,! ,commission may1 by rule1 waive or modify ! requirem5ts ( p>agraph 7#b7 or subsection 7h71 to facilitate ! use ( a unit ( a digital commodity belong+ to a cu/om] to provide a block*a9 s]vice4 7,d7 ,block*a9 s]vice def9$ ,9 ?is p>agraph1 ! t]m block*a9 s]vice means any activity relat+ to validat+ transactions on a block*a9 sy/em1 provid+ security = a block*a9 sy/em1 or o!r simil> activity1 includ+ protocol cons5sus p>ticipation activities describ$ 9 section #b7;a77#cj77;,b7 ( ! ,securities ,act ( #aicc1 requir$ = ! ongo+ op]ation ( a block*a9 sy/em4 7k7 ,f$]al preemption ,not)/&+ any o!r provision ( law1 ! ,commission %all h exclusive jurisdiction ov] any digital commodity brok] or digital commodity deal] regi/]$ "u ?is section ) respect to activities subject to ?is ,act4 7l7 ,exemptions ,9 ord] to promote responsible innovation & fair competition1 or protect cu/om]s1 ! ,commission may 7on its own initiative or on application ( ! digital commodity brok] or digital commodity deal]7 exempt1 unconditionally or on /at$ t]ms or conditions1 or = /at$ p]iods1 & retroactively or prospectively1 or bo?1 a digital commodity brok] or digital commodity deal] f ! requirem5ts ( ?is ,act1 if ! ,commission det]m9es t-- 7#a7 7,a7 ! exemption w\ld be consi/5t ) ! public int]e/ & ! purposes ( ?is ,act2 & 7,b7 ! exemption w n h a mat]ial adv]se effect on ! ability ( ! ,commission to dis*>ge regulatory duties "u ?is ,act2 or 7#b7 ! digital commodity brok] or digital commodity deal] is subject to comp>able1 compreh5sive sup]vision & regulation by ! appropriate gov]nm5t au?orities 9 ! home c\ntry ( ! digital commodity brok] or digital commodity deal]1 respectively4 4 #djg4 ,regi/ration ( associat$ p]sons 7a7 ,9 g5]al ,section #dk ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #fk7 is am5d$-- 7#a7 by r$esignat+ subsections 7#d7 ?r\gh 7#f7 z subsections 7#e7 ?r\gh 7#g71 respectively2 7#b7 by ins]t+ aft] subsection 7#c7 ! foll[+3 7#d7 ,x %all be unlawful = any p]son to act z an associat$ p]son ( a digital commodity brok] or an associat$ p]son ( a digital commodity deal] unless ! p]son is regi/]$ ) ! ,commission "u ?is ,act & su* regi/ration %all n h expir$1 be5 susp5d$ 7& ! p]iod ( susp5sion has n expir$71 or be5 revok$4 ,x %all be unlawful = a digital commodity brok] or a digital commodity deal] to p]mit su* a p]son to become or rema9 associat$ ) ! digital commodity brok] or digital commodity deal] if ! digital commodity brok] or digital commodity deal] knew or %\ld h kn[n t ! p]son 0 n s regi/]$ or t ! regi/ration _h expir$1 be5 susp5d$ 7& ! p]iod ( susp5sion has n expir$71 or be5 revok$4 2 & 7#c7 9 subsection 7#e7 7z s r$esignat$71 by /rik+ or ( a commodity trad+ advisor & ins]t+ ( a commodity trad+ advisor1 ( a digital commodity brok]1 or ( a digital commodity deal]4 7b7 ,con=m+ am5dm5ts ,! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a et seq47 is am5d$ by /rik+ section #dk7#f7 ea* place x appe>s & ins]t+ section #dk7#g74 #djh4 ,regi/ration ( commodity pool op]ators & commodity trad+ advisors 7a7 ,9 g5]al ,section #dm7#c7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #fm7#c77 is am5d$-- 7#a7 9 subp>agraph 7,a7-- 7,a7 by /rik+ any commodity trad+ advisor & ins]t+ a commodity pool op]ator or commodity trad+ advisor2 & 7,b7 by /rik+ act+ z a commodity trad+ advisor & ins]t+ act+ z a commodity pool op]ator or commodity trad+ advisor2 & 7#b7 9 subp>agraph 7,c71 by ins]t+ digital commodities1 aft] physical commodities14 7b7 ,exemptive au?ority ,section #dm ( su* ,act 7#g ,u4,s4,c4 #fm7 is am5d$ by add+ at ! end ! foll[+3 7#d7 ,exemptive au?ority ,! ,commission %all promulgate rules to provide appropriate exemptions = commodity pool op]ators & commodity trad+ advisors1 to provide relief f duplicative1 conflict+1 or unduly burd5some requirem5ts or to promote responsible innovation1 to ! ext5t ! exemptions fo/] ! developm5t ( fair & ord]ly ca% or spot digital commodity m>kets1 are necess>y or appropriate 9 ! public int]e/1 & are consi/5t ) ! protection ( cu/om]s4 4 #dji4 ,exclusion = dec5traliz$ f9ance activities ,! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq471 z am5d$ by ! prec$+ provisions ( ?is ,act1 is am5d$ by ins]t+ aft] section #du ! foll[+3 #dv4 ,dec5traliz$ f9ance activities n subject to ?is ,act 7a7 ,9 g5]al ,not)/&+ any o!r provision ( ?is ,act1 a p]son %all n be subject to ?is ,act & ! regulations promulgat$ "u ?is ,act bas$ on ! p]son directly or indirectly engag+ 9 any ( ! foll[+ activities1 :e!r s+ly or 9 comb9ation1 9 relation to ! op]ation ( a block*a9 sy/em or 9 relation to dec5traliz$ f9ance trad+ protocol3 7#a7 ,compil+ network transactions or relay+1 se>*+1 sequ5c+1 validat+1 or act+ 9 a simil> capacity4 7#b7 ,provid+ computational "w1 op]at+ a node or oracle s]vice1 or procur+1 (f]+1 or utiliz+ network b&wid?1 or o!r simil> incid5tal s]vices4 7#c7 ,provid+ a us]-int]face t enables a us] to read1 & access data ab\t a block*a9 sy/em4 7#d7 ,develop+1 publi%+1 or o!rwise di/ribut+ a block*a9 sy/em or a dec5traliz$ f9ance messag+ sy/em4 7#e7 ,con/itut+1 adm9i/]+1 or ma9ta9+ a dec5traliz$ f9ance messag+ sy/em or dec5traliz$ f9ance trad+ protocol1 or op]at+ or p>ticipat+ 9 a liquidity pool ) respect !reto1 = ! purpose ( execut+ a spot transaction = ! pur*ase or sale ( a digital commodity4 7#f7 ,develop+1 publi%+1 con/itut+1 adm9i/]+1 ma9ta9+1 or o!rwise di/ribut+ s(tw>e or sy/ems t create or deploy h>dw>e or s(tw>e1 includ+ wallets or o!r sy/ems1 facilitat+ an individual us]'s own p]sonal ability to keep1 safegu>d1 or cu/ody ! us]'s digital assets or relat$ private keys4 7b7 ,exceptions ,subsection 7a7 %all n be int]pret$ to apply to ! anti-fraud1 anti-manipulation1 or false report+ en=cem5t au?orities ( ! ,commission4 4 #daj4 ,res\rces = implem5tation & en=cem5t 7a7 ,collection ( fees 7#a7 ,9 g5]al ,! ,commodity ,futures ,trad+ ,commission 79 ?is section ref]r$ to z ! ,commission7 %all *>ge & collect a fee f ea* p]son 9 provisional /atus regi/]$ ) ! ,commission pursuant to section #ajf1 on-- 7,a7 ! fil+ ( ! initial application = regi/ration2 & 7,b7 an annual basis !reaft] = ma9ta9+ provisional /atus4 7#b7 ,am\nt ,! fees au?oriz$ "u p>agraph 7#a7 may be collect$ & available = obligation only 9 ! am\nts provid$ 9 advance 9 an appropriation ,act4 7#c7 ,au?ority to adju/ fees ,not)/&+ ! prec$+ provisions ( ?is subsection1 to promote fair competition or innovation1 ! ,commission1 9 its sole discretion1 may r$uce or elim9ate any fee o!rwise requir$ to be paid by a small or m$ium fil] "u ?is subsection4 7b7 ,fee s*$ule 7#a7 ,9 g5]al ,! ,commission %all publi% 9 ! ,f$]al ,regi/] a s*$ule ( ! fees to be *>g$ & collect$ "u ?is section4 7#b7 ,cont5t ,! fee s*$ule = a fiscal ye> %all include a writt5 analysis ( ! e/imate ( ! ,commission ( ! total co/s ( c>ry+ out ! functions ( ! ,commission "u ?is ,act dur+ ! fiscal ye>4 7#c7 ,submission to congress ,be=e publi%+ ! fee s*$ule = a fiscal ye>1 ! ,commission %all submit a copy ( ! fee s*$ule to ! ,committees on ,agriculture & on ,appropriations ( ! ,h\se ( ,repres5tatives & ! ,committees on ,agriculture1 ,nutrition1 & ,=e/ry & on ,appropriations ( ! ,s5ate4 7#d7 ,tim+ 7,a7 #a/ fiscal ye> ,! ,commission %all publi% ! fee s*$ule = ! fiscal ye> 9 :i* ?is ,act is enact$1 )9 #cj days aft] ! date ( ! enactm5t ( ?is ,act4 7,b7 ,subsequ5t fiscal ye>s ,! ,commission %all publi% ! fee s*$ule = ea* subsequ5t fiscal ye>1 n less ?an #ij days be=e ! due date prescrib$ by ! ,commission = paym5t ( ! annual fee = ! fiscal ye>4 7c7 ,late paym5t p5alty 7#a7 ,9 g5]al ,! ,commission may impose a p5alty aga9/ a p]son t fails to pay an annual fee *>g$ "u ?is section1 )9 #cj days aft] ! due date prescrib$ by ! ,commission = paym5t ( ! fee4 7#b7 ,am\nt ,! am\nt ( ! p5alty %all be-- 7,a7 #e p]c5t ( ! am\nt ( ! fee due1 multipli$ by 7,b7 ! :ole numb] ( consecutive #cj-;day p]iods t h elaps$ s9ce ! due date4 7d7 ,reimbursem5t ( excess fees ,to ! ext5t t ! total am\nt ( fees collect$ "u ?is section dur+ a fiscal ye> t beg9s aft] ! date ( ! enactm5t ( ?is ,act exce$s ! am\nt provid$ "u subsection 7a77#b7 ) respect to ! fiscal ye>1 ! ,commission %all reimburse ! excess am\nt to ! p]sons :o h timely paid _! annual fees1 on a pro-rata basis t excludes p5alties1 & %all d s )9 #fj days aft] ! end ( ! fiscal ye>4 7e7 ,deposit ( fees into ! ,treasury ,all am\nts collect$ "u ?is section %all be cr$it$ to ! curr5tly applicable appropriation1 acc\nt1 or fund ( ! ,commission z discretion>y (fsett+ collections1 & %all be available = ! purposes au?oriz$ 9 subsection 7f7 only to ! ext5t & 9 ! am\nts provid$ 9 advance 9 appropriations ,acts4 7f7 ,au?orization ( appropriations ,9 addition to am\nts o!rwise au?oriz$ to be appropriat$ to ! ,commission1 !re is au?oriz$ to be appropriat$ to ! ,commission am\nts collect$ "u ?is section to cov] ! co/s ( c>ry+ out ! functions ( ! ,commission "u ?is ,act4 7g7 ,exp$it$ hir+ au?ority 7#a7 ,appo9tm5t au?ority ,! ,*airman1 pursuant to section #f7;a71 may appo9t individuals to a position describ$ 9 p>agraph 7#b7 ( ?is subsection-- 7,a7 9 accordance ) ! /atutes1 rules1 & regulations gov]n+ appo9tm5ts to positions 9 ! except$ s]vice 7z def9$ 9 section #bajc ( title #e1 ,unit$ ,/ates ,code72 & 7,b7 )\t reg>d to any /atute1 rule1 or regulation gov]n+ appo9tm5ts to positions 9 ! competitive s]vice 7z def9$ 9 section #bajb ( su* title74 7#b7 ,position describ$ ,a position ref]r$ to 9 subp>agraph 7#a7 is a position at ! ,commission t-- 7,a7 is 9 ! competitive s]vice 7z def9$ 9 section #bajb ( su* title72 & 7,b7 requires specializ$ k ( digital commodities m>kets1 f9ancial & capital m>ket =mation or regulation1 f9ancial m>ket /ructures or surveillance1 data collection or analysis1 or in=mation te*nology1 cyb]security1 or sy/em safegu>ds4 7#c7 ,rule ( con/ruction ,! appo9tm5t ( a c&idate to a position "u ?is subsection %all n be consid]$ to cause ! position to be conv]t$ f ! competitive s]vice to ! except$ s]vice4 7h7 ,sunset ,! au?orities provid$ by ?is section %all expire at ! end ( ! #d? fiscal ye> t beg9s aft] ! date ( ! enactm5t ( ?is ,act4 #daa4 ,requirem5ts relat$ to control p]sons ,! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq471 z am5d$ ! prec$+ provisions ( ?is ,act1 is am5d$ by ins]t+ aft] section #dv ! foll[+3 #dw4 ,limitation on transactions by block*a9 control p]sons 7a7 ,limitation ,x %all be unlawful = a block*a9 control p]son ) respect to a block*a9 sy/em c]tifi$ z a mature block*a9 sy/em 9 accordance ) section #db ( ! ,securities ,ex*ange ,act ( #aicd to sell a unit ( a digital commodity relat$ to ! block*a9 sy/em unless ! p]son files notice ) ! ,commission1 9 a =m & mann] det]m9$ by ! ,commission1 t ! p]son has or int5ds to obta9 an au?ority describ$ 9 subsection 7b77#a7 ) respect to ! block*a9 sy/em1 & complies ) rules adopt$ by ! ,commission t require-- 7#a7 disclosure ( in=mation to ! ,commission & ! public ab\t ! mat]ial activities1 z det]m9$ by ! ,commission1 ( ! block*a9 control p]son2 & 7#b7 7,a7 ! use ( a digital commodity brok] to effect ! sale2 or 7,b7 su* o!r sales re/rictions applicable to ! block*a9 control p]son1 or any affiliat$ block*a9 control p]son1 to prev5t manipulation & di/ortion ( ! value ( ! digital commodity & promote fur!r maturity ( ! block*a9 sy/em to :i* ! digital commodity relates4 7b7 ,def9itions ,9 ?is section3 7#a7 ,block*a9 control p]son ,! t]m block*a9 control p]son means1 ) respect to a block*a9 sy/em1 any p]son or gr\p ( p]sons "u common control1 o!r ?an a dec5traliz$ gov]nance sy/em1 :o-- 7,a7 has ! unilat]al au?ority1 directly or indirectly1 ?r\gh any contract1 arrangem5t1 und]/&+1 relation%ip1 or o!rwise1 to control or mat]ially alt] ! functionality1 op]ation1 or rules ( cons5sus or agreem5t ( ! block*a9 sy/em or its relat$ digital commodity2 or 7,b7 has ! unilat]al au?ority to direct ! vot+1 9 ! aggregate1 ( #bj p]c5t or m ( ! out/&+ vot+ p[] ( ! block*a9 sy/em by means ( a relat$ digital commodity1 nodes or validators1 a dec5traliz$ gov]nance sy/em1 or o!rwise1 9 a block*a9 sy/em :i* c be alt]$ by a vot+ sy/em4 7#b7 ,affiliat$ block*a9 control p]son ,! t]m affiliat$ block*a9 control p]son means any p]son directly or indirectly controll+1 controll$ by1 or "u common control ) a block*a9 control p]son1 z ! ,commission by rule or regulation1 may det]m9e w effectuate ! purposes ( ?is section4 4 #dab4 ,o!r tradable assets ,! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq471 z am5d$ by ! prec$+ provisions ( ?is ,act1 is am5d$-- 7#a7 by ins]t+ aft] section #dw ! foll[+3 #dx4 ,trad+ requirem5ts = o!r tradable assets 7a7 ,limitation ,a contract ( sale ( a tradable asset %all n be (f]$1 solicit$1 trad$1 facilitat$1 execut$1 cle>$1 report$1 or o!rwise dealt 91 on or subject to ! rules ( a regi/]$ entity1 or by any o!r entity regi/]$ ) ! ,commission1 except 9 accordance ) subsection 7b74 7b7 ,requirem5ts 7#a7 ,treatm5t ( tradable assets ,a contract ( sale ( a tradable asset t is (f]$1 solicit$1 trad$1 facilitat$1 execut$1 cle>$1 report$1 or o!rwise dealt 9 on or subject to ! rules ( a regi/]$ entity1 or by any o!r entity regi/]$ ) ! ,commission1 %all be treat$ z a digital commodity = purposes ( ?is ,act4 7#b7 ,additional rulemak+ au?ority ,9 addition to ! o!r requirem5ts ( ?is ,act1 ! ,commission may1 by rule or regulation1 impose additional obligations on any p]son regi/]$ "u ?is ,act (f]+1 solicit+1 trad+1 facilitat+1 execut+1 cle>+1 report+1 or o!rwise deal+ 9 a contract ( sale ( a tradable asset1 or class !re(1 pursuant to p>agraph 7#a7 z are necess>y = ! protection ( cu/om]s1 ! promotion ( innovation1 & ! ma9t5ance ( fair1 ord]ly1 & effici5t m>kets1 includ+ additional obligations relat$ to-- 7,a7 disclosure2 7,b7 recordkeep+2 7,c7 capital2 7,d7 report+2 7,e7 bus9ess conduct2 7,f7 docum5tation2 7,g7 sup]vision ( employees2 & 7,h7 segregation4 7c7 ,tradable asset def9$ ,9 ?is section1 ! t]m tradable asset means a digital asset o!r ?an-- 7#a7 a digital commodity t is treat$ z su* o!r ?an by reason ( subsection 7b77#a7 ( ?is section2 or 7#b7 a digital asset exclud$ f ! def9ition ( digital commodity pursuant to subclause 7,i7 ?r\gh 7,,vii7 ( section #a;a7#af77;,f77iii74 2 & 7#b7 by ins]t+ aft] section #f;d ! foll[+3 #f;e4 ,prohibition on trad+ c]ta9 digital assets 7a7 ,9 g5]al ,a contract ( sale ( a digital commodity or tradable asset 7z def9$ 9 section #dx7 %all n be (f]$1 solicit$1 trad$1 facilitat$1 execut$1 cle>$1 report$1 or o!rwise dealt 9 on or subject to ! rules ( a regi/]$ entity1 or by any o!r entity regi/]$ ) ! ,commission1 if ! prim>y purpose ( ! digital commodity or tradable asset is to be us$ to-- 7#a7 commit fraud or m>ket manipulation2 7#b7 fur!r a s*eme f\nd 9 a f9al action by a c\rt ( compet5t jurisdiction to be 9 violation ( campaign f9ance or gov]nm5t e?ics laws2 or 7#c7 engage 9 any o!r conduct t w\ld result 9 abusive practices or be disruptive to m>ket integrity4 7b7 ,guidance on fraudul5t1 manipulative1 or disruptive tradable assets ,! ,commission may1 aft] public notice & comm5t1 issue guidance e/abli%+ crit]ia = det]m9+ if ! prim>y purpose ( a digital commodity or tradable asset 7z s def9$7 is to be us$ to commit fraud or m>ket manipulation1 or engage 9 any o!r conduct t w\ld result 9 abusive practices or be disruptive to m>ket integrity4 4 #dac4 ,conflict ( int]e/ rulemak+ ,n lat] ?an #cfj days aft] ! date ( ! enactm5t ( ?is ,act1 ! ,commodity ,futures ,trad+ ,commission %all issue rules e/abli%+ requirem5ts = ! id5tification1 mitigation1 & resolution ( conflicts ( int]e/ among & across regi/]$ entities 7)9 ! mean+ ( ! ,commodity ,ex*ange ,act7 & p]sons requir$ to be regi/]$ ) ! ,commission1 includ+ conflicts ( int]e/ relat$ to v]tically integrat$ m>ket /ructures & _! v>y+ responsibilities4 #dad4 ,effective date ,unless o!rwise provid$ 9 ?is title1 ?is title & ! am5dm5ts made by ?is title %all take effect #bgj days aft] ! date ( ! enactm5t ( ?is ,act4 #dae4 ,s5se ( ,congress ,x is ! s5se ( ,congress t no?+ 9 ?is ,act or any am5dm5t made by ?is ,act %\ld be int]pret$ to au?orize any entity to regulate any commodity1 o!r ?an a digital commodity1 on any spot m>ket4 ,v ,innovation & ,te*nology ,improvem5ts #eja4 ,f9d+s2 s5se ( ,congress 7a7 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,entrepr5eurs & innovators are build+ & deploy+ ?is next g5]ation ( ! int]net4 7#b7 ,digital commodity networks repres5t a new way = p to jo9 toge!r & coop]ate ) "o ano!r to und]take c]ta9 activities4 7#c7 ,digital commodities h ! pot5tial to be ! f\ndational build+ blocks ( ^! sy/ems1 align+ ! economic inc5tive = individuals to coop]ate ) "o ano!r to a*ieve a common purpose4 7#d7 ,! digital commodity ecosy/em has ! pot5tial to gr[ our economy & improve ev]yday lives ( ,am]icans by facilitat+ collaboration ?r\gh ! use ( te*nology to manage activities1 allocate res\rces1 & facilitate decision mak+4 7#e7 ,block*a9 sy/ems & ! digital commodities !y emp[] provide control1 enhance transp>5cy1 r$uce transaction co/s1 & increase effici5cy if prop] protections are put 9 place = inve/ors1 consum]s1 our f9ancial sy/em1 & our national security4 7#f7 ,block*a9 te*nology facilitates new types ( network p>ticipation :i* bus9esses 9 ! ,unit$ ,/ates may utilize 9 innovative ways4 7#g7 ,o!r digital commodity companies are sett+ up _! op]ations outside ( ! ,unit$ ,/ates1 :]e c\ntries are e/abli%+ frameworks to embrace ! pot5tial ( block*a9 te*nology & digital commodities & provide safegu>ds = consum]s4 7#h7 ,digital commodities1 despite ! purport$ anonymity1 provide law en=cem5t ) an exceptional trac+ tool to id5tify illicit activity & br+ crim9als to ju/ice4 7#i7 ,! ,f9ancial ,s]vices ,committee ( ! ,h\se ( ,repres5tatives has held multiple he>+s highlight+ v>i\s risks t digital commodities c pose to ! f9ancial m>kets1 consum]s1 & inve/ors t mu/ be address$ z we seek to h>ness ! b5efits ( ^! innovations4 7b7 ,s5se ( ,congress ,x is ! s5se ( ,congress t-- 7#a7 ! ,unit$ ,/ates %\ld seek to prioritize und]/&+ ! pot5tial opportunities ( ! next g5]ation ( ! int]net2 7#b7 ! ,unit$ ,/ates %\ld seek to fo/] advances 9 te*nology t h robu/ evid5ce indicat+ !y c improve our f9ancial sy/em & create m fair & equitable access to f9ancial s]vices = ev]yday ,am]icans :ile protect+ our f9ancial sy/em1 inve/ors1 & consum]s2 7#c7 ! ,unit$ ,/ates mu/ support ! responsible developm5t ( digital commodities & ! und]ly+ te*nology 9 ! ,unit$ ,/ates or risk ! %ift+ ( ! developm5t ( su* assets & te*nology outside ( ! ,unit$ ,/ates1 to less regulat$ c\ntries2 7#d7 ,congress %\ld consult ) public & private sector /akehold]s to und]/& h[ to enact a functional framework tailor$ to ! specific risks & unique b5efits ( diff]5t digital commodity-relat$ activities1 di/ribut$ l$g] te*nology1 di/ribut$ networks1 & mature block*a9 sy/ems2 7#e7 ,congress %\ld enact a functional framework tailor$ to ! specific risks ( diff]5t digital commodity-relat$ activities & unique b5efits ( di/ribut$ l$g] te*nology1 di/ribut$ networks1 & mature block*a9 sy/ems2 & 7#f7 consum]s & m>ket p>ticipants w b5efit f a framework = digital commodities consi/5t ) long/&+ inve/or protections 9 securities & commodities m>kets1 yet tailor$ to ! unique b5efits & risks ( ! digital commodity ecosy/em4 #ejb4 ,/rategic ,hub = ,innovation & ,f9ancial ,te*nology ,section #d ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;d7 is am5d$ by add+ at ! end ! foll[+3 7k7 ,/rategic ,hub = ,innovation & ,f9ancial ,te*nology 7#a7 ,e/abli%m5t ,n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is subsection1 ! ,securities & ,ex*ange ,commission %all e/abli% a committee to be kn[n z ! ,/rategic ,hub = ,innovation & ,f9ancial ,te*nology 7ref]r$ to 9 ?is subsection z ! ,fin,hub7 to support engagem5t on em]g+ te*nologies 9 ! f9ancial sector4 7#b7 ,memb]s ,! composition ( ,fin,hub %all be det]m9$ by ! ,commission1 draw+ f relevant divisions z appropriate1 includ+ ! ,division ( ,trad+ & ,m>kets1 ,division ( ,corporate ,f9ance1 & ,division ( ,inve/m5t ,managem5t4 7#c7 ,responsibilities ,fin,hub %all-- 7,a7 s]ve z a res\rce = ! ,commission on em]g+ f9ancial te*nology advancem5ts2 7,b7 engage ) m>ket p>ticipants work+ on em]g+ f9ancial te*nologies2 & 7,c7 facilitate communication betwe5 ! ,commission & bus9esses work+ 9 em]g+ f9ancial te*nology fields ) in=mation on ! ,commission1 its rules1 & regulations4 7#d7 ,report to ! ,commission 7,a7 ,9 g5]al ,n lat] ?an ,octob] #ca ( ea* ye> aft] #bjbe1 ,fin,hub %all provide an annual summ>y ( its engagem5t activities to ! ,commission1 :i* %all be includ$ 9 ! ,commission's annual report to ,congress4 7,b7 ,confid5tiality ,ea* report submitt$ "u ?is p>agraph %all n conta9 confid5tial in=mation4 4 #ejc4 ,codification ( ,lab,c,f,t,c 7a7 ,9 g5]al ,section #ah ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #bb7 is am5d$ by add+ at ! end ! foll[+3 7c7 ,lab,c,f,t,c 7#a7 ,e/abli%m5t ,!re is e/abli%$ 9 ! ,commission ,lab,c,f,t,c4 7#b7 ,purpose ,! purposes ( ,lab,c,f,t,c are to-- 7,a7 promote responsible f9ancial te*nology innovation & fair competition = ! b5efit ( ! ,am]ican public2 7,b7 s]ve z an in=mation plat=m to in=m ! ,commission ab\t new f9ancial te*nology innovation2 & 7,c7 provide outrea* to f9ancial te*nology innovators to discuss _! innovations & ! regulatory framework e/abli%$ by ?is ,act & ! regulations promulgat$ !reund]4 7#c7 ,director ,lab,c,f,t,c %all h a ,director1 :o %all be appo9t$ by ! ,commission & s]ve at ! pleasure ( ! ,commission4 ,not)/&+ section #b7;a77#f77;,a71 ! ,director %all report directly to ! ,commission & p]=m su* functions & duties z ! ,commission may prescribe4 7#d7 ,duties ,lab,c,f,t,c %all-- 7,a7 advise ! ,commission ) respect to rulemak+s or o!r ag5cy or /aff action reg>d+ f9ancial te*nology2 7,b7 provide int]nal education & tra9+ to ! ,commission reg>d+ f9ancial te*nology2 7,c7 advise ! ,commission reg>d+ f9ancial te*nology t w\ld bol/] ! ,commission's ov]sight functions2 7,d7 engage ) academia1 /ud5ts1 & pr(essionals on f9ancial te*nology issues1 ideas1 & te*nology relevant to activities "u ?is ,act2 7,e7 provide p]sons work+ 9 em]g+ te*nology fields ) in=mation on ! ,commission1 its rules & regulations1 & ! role ( a regi/]$ futures association2 & 7,f7 enc\rage p]sons work+ 9 em]g+ te*nology fields to engage ) ! ,commission & obta9 fe$back f ! ,commission on pot5tial regulatory issues4 7#e7 ,report to ,congress 7,a7 ,9 g5]al ,n lat] ?an ,octob] #ca ( ea* ye> aft] #bjbe1 ,lab,c,f,t,c %all submit to ! ,committee on ,agriculture ( ! ,h\se ( ,repres5tatives & ! ,committee on ,agriculture1 ,nutrition1 & ,=e/ry ( ! ,s5ate a report on its activities4 7,b7 ,cont5ts ,ea* report requir$ "u p>agraph 7#a7 %all include-- 7i7 ! total numb] ( p]sons t met ) ,lab,c,f,t,c2 7ii7 a summ>y ( g5]al issues discuss$ dur+ meet+s ) ! p]son2 7iii7 in=mation on /eps ,lab,c,f,t,c has tak5 to improve ,commission s]vices1 includ+ responsiv5ess to ! conc]ns ( p]sons2 7iv7 recomm5dations made to ! ,commission ) respect to ! regulations1 guidance1 & ord]s ( ! ,commission & su* legislative actions z may be appropriate2 & 7v7 any o!r in=mation det]m9$ appropriate by ! ,director ( ,lab,c,f,t,c4 7,c7 ,confid5tiality ,a report "u p>agraph 7,a7 %all abide by ! confid5tiality requirem5ts 9 section #h4 7#f7 ,records & engagem5t ,! ,commission %all-- 7,a7 ma9ta9 sy/ems ( records to track engagem5ts ) ! public ?r\gh ,lab,c,f,t,c2 7,b7 /ore communications & mat]ials receiv$ 9 connection ) any su* engagem5t 9 accordance ) ,commission policies & proc$ures on data ret5tion & confid5tiality2 & 7,c7 take reasonable /eps to protect any confid5tial or propriet>y in=mation receiv$ ?r\gh ,lab,c,f,t,c engagem5t4 4 7b7 ,con=m+ am5dm5ts ,section #b7;a77#f77;,a7 ( su* ,act 7#g ,u4,s4,c4 #b7;a77#f77;,a77 is am5d$-- 7#a7 by /rik+ p>agraph & 9 & ins]t+ p>agraph12 & 7#b7 by ins]t+ & section #ah7;c77#c71 be=e ! executive4 7c7 ,effective date ,! ,commodity ,futures ,trad+ ,commission %all implem5t ! am5dm5ts made by ?is section 7includ+ comply+ ) section #ah7;c77#g7 ( ! ,commodity ,ex*ange ,act7 )9 #ahj days aft] ! date ( ! enactm5t ( ?is ,act4 #ejd4 ,/udy on dec5traliz$ f9ance 7a7 ,9 g5]al ,! ,commodity ,futures ,trad+ ,commission1 ! ,securities & ,ex*ange ,commission1 & ! ,secret>y ( ! ,treasury %all jo9tly c>ry out a /udy on dec5traliz$ f9ance t analyzes-- 7#a7 ! nature1 size1 role1 & use ( dec5traliz$ f9ance block*a9 applications2 7#b7 ! op]ation ( block*a9 applications t comprise dec5traliz$ f9ance2 7#c7 ! int]op]ability ( block*a9 applications & o!r block*a9 sy/ems2 7#d7 ! int]op]ability ( block*a9 applications & s(tw>e-bas$ sy/ems1 includ+ websites & wallets2 7#e7 ! dec5traliz$ gov]nance sy/ems ?r\gh :i* block*a9 applications may be develop$1 publi%$1 con/itut$1 adm9i/]$1 ma9ta9$1 or o!rwise di/ribut$1 includ+-- 7,a7 :e!r ! sy/ems enhance or detract f-- 7i7 ! dec5tralization ( ! dec5traliz$ f9ance2 & 7ii7 ! inh]5t b5efits & risks ( ! dec5traliz$ gov]nance sy/em2 & 7,b7 any proc$ures1 requirem5ts1 or be/ practices t w\ld mitigate ! risks id5tifi$ 9 subp>agraph 7,a77ii72 7#f7 ! b5efits ( dec5traliz$ f9ance1 includ+-- 7,a7 op]ational resili5ce & availability ( block*a9 sy/ems2 7,b7 int]op]ability ( block*a9 sy/ems2 7,c7 m>ket competition & innovation2 7,d7 transaction effici5cy2 7,e7 transp>5cy & traceability ( transactions2 & 7,f7 dis9t]m$iation2 7#g7 ! risks ( dec5traliz$ f9ance1 includ+-- 7,a7 pseudonymity ( us]s & transactions2 7,b7 dis9t]m$iation2 & 7,c7 cyb]security vuln]abilities2 7#h7 ! ext5t to :i* dec5traliz$ f9ance has integrat$ ) ! traditional f9ancial m>kets & any pot5tial risks or improvem5ts to ! /ability ( ! m>kets2 7#i7 h[ ! levels ( illicit activity 9 dec5traliz$ f9ance comp>e ) ! levels ( illicit activity 9 traditional f9ancial m>kets2 7#aj7 me?ods = address+ illicit activity 9 dec5traliz$ f9ance & traditional m>kets t are tailor$ to ! unique attributes ( ea*2 7#aa7 h[ dec5traliz$ f9ance may increase ! accessibility ( cross-bord] transactions2 & 7#ab7 ! feasibility ( emb$d+ self-execut+ compliance & risk controls into dec5traliz$ f9ance4 7b7 ,consultation ,9 c>ry+ out ! /udy requir$ "u subsection 7a71 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all consult ) ! ,secret>y ( ! ,treasury on ! factors describ$ "u p>agraphs 7#g7 ?r\gh 7#aj7 ( subsection 7a74 7c7 ,report ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all jo9tly submit to ! relevant congressional committees a report t includes ! results ( ! /udy requir$ by subsection 7a74 7d7 ,,gao ,/udy ,! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all-- 7#a7 c>ry out a /udy on dec5traliz$ f9ance t analyzes ! in=mation describ$ "u p>agraphs 7#a7 ?r\gh 7#ab7 ( subsection 7a72 & 7#b7 n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 submit to ! relevant congressional committees a report t includes ! results ( ! /udy requir$ by p>agraph 7#a74 7e7 ,def9itions ,9 ?is section3 7#a7 ,dec5traliz$ f9ance 7,a7 ,9 g5]al ,! t]m dec5traliz$ f9ance means block*a9 applications 7includ+ dec5traliz$ f9ance trad+ protocols & relat$ dec5traliz$ f9ance messag+ sy/ems7 t all[ us]s to engage 9 f9ancial transactions 9 a self-direct$ mann] s t a ?ird-p>ty int]m$i>y does n effectuate ! transactions or take cu/ody ( digital commodities ( a us] dur+ any "p ( ! transactions4 7,b7 ,relation%ip to exclud$ activities ,! t]m dec5traliz$ f9ance %all n be int]pret$ to limit or exclude any activity f ! activities describ$ 9 section #ae;,i7a7 ( ! ,securities ,ex*ange ,act ( #aicd or section #dv7a7 ( ! ,commodity ,ex*ange ,act4 7#b7 ,relevant congressional committees ,! t]m relevant congressional committees means-- 7,a7 ! ,committees on ,f9ancial ,s]vices & ,agriculture ( ! ,h\se ( ,repres5tatives2 & 7,b7 ! ,committees on ,bank+1 ,h\s+1 & ,urban ,affairs & ,agriculture1 ,nutrition1 & ,=e/ry ( ! ,s5ate4 #eje4 ,/udy on non-fungible tok5s 7a7 ,9 g5]al ,! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all c>ry out a /udy ( non-fungible tok5s t analyzes-- 7#a7 ! nature1 size1 role1 purpose1 & use ( non-fungible tok5s2 7#b7 ! simil>ities & diff]5ces betwe5 non-fungible tok5s & o!r digital commodities1 includ+ digital commodities & p]mitt$ paym5t /ableco9s1 & h[ ! m>kets = ^? digital commodities int]sect ) ea* o!r2 7#c7 h[ non-fungible tok5s are m9t$ by issu]s & subsequ5tly adm9i/]$ to pur*as]s2 7#d7 h[ non-fungible tok5s are /or$ aft] be+ pur*as$ by a consum]2 7#e7 ! int]op]ability ( non-fungible tok5s betwe5 diff]5t block*a9 sy/ems2 7#f7 ! scalability ( diff]5t non-fungible tok5s m>ketplaces2 7#g7 ! b5efits ( non-fungible tok5s1 includ+ v]ifiable digital own]%ip2 7#h7 ! risks ( non-fungible tok5s1 includ+-- 7,a7 intellectual prop]ty rights2 7,b7 cyb]security risks2 & 7,c7 m>ket risks2 7#i7 :e!r & h[ non-fungible tok5s h integrat$ ) traditional m>ketplaces1 includ+ ^? = music1 real e/ate1 gam+1 ev5ts1 & travel2 7#aj7 :e!r & h[ non-fungible tok5s c be us$ to facilitate comm]ce or o!r activities ?r\gh ! repres5tation ( docum5ts1 id5tification1 contracts1 lic5ses1 & o!r comm]cial1 gov]nm5t1 or p]sonal records2 7#aa7 any pot5tial risks to traditional m>kets f su* integration2 & 7#ab7 ! levels & types ( illicit activity 9 non-fungible tok5s m>kets4 7b7 ,report ,n lat] ?an #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,comptroll] ,g5]al1 %all make publicly available a report t includes ! results ( ! /udy requir$ by subsection 7a74 #ejf4 ,/udy on exp&+ f9ancial lit]acy among/ digital commodity hold]s 7a7 ,9 g5]al ,! ,commodity ,futures ,trad+ ,commission ) ! ,securities & ,ex*ange ,commission %all jo9tly conduct a /udy to id5tify-- 7#a7 ! exi/+ level ( f9ancial lit]acy among retail digital commodity hold]s1 includ+ subgr\ps ( inve/ors id5tifi$ by ! ,commodity ,futures ,trad+ ,commission ) ! ,securities & ,ex*ange ,commission2 7#b7 me?ods to improve ! tim+1 cont5t1 & =mat ( f9ancial lit]acy mat]ials reg>d+ digital commodities provid$ by ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission2 7#c7 me?ods to improve coord9ation betwe5 ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission ) o!r ag5cies1 includ+ ! ,f9ancial ,lit]acy & ,education ,commission z well z nonpr(it organizations & ,/ate & local jurisdictions1 to bett] dissem9ate f9ancial lit]acy mat]ials2 7#d7 ! efficacy ( curr5t f9ancial lit]acy ef=ts ) a focus on rural communities & communities ) majority m9ority populations2 7#e7 ! mo/ useful & und]/&able relevant in=mation1 includ+ cle> disclosures1 t retail digital commodity hold]s ne$ to make in=m$ f9ancial decisions be=e engag+ ) or pur*as+ a digital commodity or s]vice t is typically sold to retail inve/ors ( digital commodities2 7#f7 ! mo/ effective public-private p>tn]%ips 9 provid+ f9ancial lit]acy reg>d+ digital commodities to consum]s2 7#g7 ! mo/ relevant metrics to measure successful improvem5t ( ! f9ancial lit]acy ( an individual aft] engag+ ) f9ancial lit]acy ef=ts2 & 7#h7 9 consultation ) ! ,f9ancial ,lit]acy & ,education ,commission1 a /rategy 7includ+ to ! ext5t practicable1 measurable goals & objectives7 to increase f9ancial lit]acy ( inve/ors reg>d+ digital commodities4 7b7 ,report ,n lat] ?an #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all jo9tly submit a writt5 report on ! /udy requir$ by subsection 7a7 to ! ,committees on ,f9ancial ,s]vices & on ,agriculture ( ! ,h\se ( ,repres5tatives & ! ,committees on ,bank+1 ,h\s+1 & ,urban ,affairs & on ,agriculture1 ,nutrition1 & ,=e/ry ( ! ,s5ate4 #ejg4 ,/udy on f9ancial m>ket infra/ructure improvem5ts 7a7 ,9 g5]al ,! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all jo9tly conduct a /udy to assess :e!r additional guidance or rules are necess>y to facilitate ! developm5t ( tok5iz$ securities & d]ivatives products1 & to ! ext5t su* guidance or rules w\ld fo/] ! developm5t ( fair & ord]ly f9ancial m>kets1 be necess>y or appropriate 9 ! public int]e/1 & be consi/5t ) ! protection ( inve/ors & cu/om]s4 7b7 ,report 7#a7 ,"t limit ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all jo9tly submit to ! relevant congressional committees a report t includes ! results ( ! /udy requir$ by subsection 7a74 7#b7 ,relevant congressional committees def9$ ,9 ?is section1 ! t]m relevant congressional committees means-- 7,a7 ! ,committees on ,f9ancial ,s]vices & on ,agriculture ( ! ,h\se ( ,repres5tatives2 & 7,b7 ! ,committees on ,bank+1 ,h\s+1 & ,urban ,affairs & on ,agriculture1 ,nutrition1 & ,=e/ry ( ! ,s5ate4 #ejh4 ,/udy on block*a9 9 paym5ts 7a7 ,/udy requir$ ,! ,secret>y ( ! ,treasury %all conduct a /udy on ! pot5tial use ( block*a9 te*nology by ! dome/ic private sector to address-- 7#a7 fraud 9 paym5ts2 7#b7 transaction co/s & transaction times2 7#c7 automat$ paym5ts2 & 7#d7 effici5cy 9 comm]cial transactions4 7b7 ,report to ,congress ,n lat] ?an "o ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y %all submit a report to ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives & ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate t summ>izes ! f9d+s ( ! /udy requir$ "u subsection 7a74 7c7 ,rule ( con/ruction ,no?+ 9 ?is section %all be con/ru$ to m&ate ! use ( block*a9 te*nology by any public or private entity4 #eji4 ,/udy on illicit use ( digital assets 7a7 ,9 g5]al ,"o ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury1 9 consultation ) ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission1 %all conduct a compreh5sive review ( h[ ,=eign ,t]rori/ ,organizations & ,transnational ,crim9al ,syndicates utilize digital assets 9 connection ) illicit activities4 7b7 ,report ,n lat] ?an #ahj days aft] complet+ ! review "u subsection 7a71 ! ,secret>y ( ! ,treasury %all issue a report to ! ,committees on ,agriculture & on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives & ! ,committees on ,agriculture1 ,nutrition1 & ,=e/ry & on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate on ! f9d+s ( ! ,secret>y1 includ+-- 7#a7 an assessm5t ( h[ ,=eign ,t]rori/ ,organizations & ,transnational ,crim9al ,syndicates utilize digital assets 9 connection ) illicit activities2 & 7#b7 recomm5dations to assi/ ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission 9 /r5g!n+ compliance & en=cem5t ( digital assets-relat$ entities regi/]$ ) _! respective ag5cies4 #eaj4 ,,gao /udy on c]ta9 c5traliz$ int]m$i>ies t are prim>ily locat$ 9 =eign jurisdictions 7a7 ,9 g5]al ,! ,comptroll] ,g5]al ( ! ,unit$ ,/ates1 9 consultation ) ! ,secret>y ( ! ,treasury1 %all conduct a /udy to-- 7#a7 assess ! risks pos$ by c5traliz$ int]m$i>ies t are prim>ily locat$ 9 =eign jurisdictions t provide s]vices to ,u4,s4 p]sons )\t regulatory requirem5ts t are sub/antially simil> to ! requirem5ts ( ! ,bank ,secrecy ,act2 & 7#b7 provide any regulatory or legislative recomm5dations to address ^! risks "u p>agraph 7#a74 7b7 ,report ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,comptroll] ,g5]al %all issue a report to ,congress conta9+ all f9d+s & det]m9ations made 9 c>ry+ out ! /udy requir$ "u subsection 7a74 #eaa4 ,/udies on =eign adv]s>y p>ticipation 7a7 ,9 g5]al ,! ,secret>y ( ! ,treasury1 9 consultation ) ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission1 %all1 n lat] ?an #a ye> aft] date ( ! enactm5t ( ?is section1 conduct a /udy & submit a report to ! relevant congressional committees t-- 7#a7 id5tifies any digital commodity regi/rants :i* are own$ by gov]nm5ts ( =eign adv]s>ies2 7#b7 det]m9es :e!r any gov]nm5ts ( =eign adv]s>ies are collect+ trad+ data ab\t ,unit$ ,/ates p]sons 9 ! digital commodity m>kets2 & 7#c7 evaluates :e!r any propriet>y intellectual prop]ty ( digital commodity regi/rants is be+ misus$ or /ol5 by any gov]nm5ts ( =eign adv]s>ies4 7b7 ,,gao /udy & report 7#a7 ,9 g5]al ,! ,comptroll] ,g5]al %all1 n lat] ?an #a ye> aft] date ( ! enactm5t ( ?is section1 conduct a /udy & submit a report to ! relevant congressional committees t-- 7,a7 id5tifies any digital commodity regi/rants :i* are own$ by gov]nm5ts ( =eign adv]s>ies2 7,b7 det]m9es :e!r any gov]nm5ts ( =eign adv]s>ies are collect+ trad+ data ab\t ,unit$ ,/ates p]sons 9 ! digital commodity m>kets2 & 7,c7 evaluates :e!r any propriet>y intellectual prop]ty ( digital commodity regi/rants is be+ misus$ or /ol5 by any gov]nm5ts ( =eign adv]s>ies4 7c7 ,def9itions ,9 ?is section3 7#a7 ,digital commodity regi/rant ,! t]m digital commodity regi/rant means any p]son requir$ to regi/] z a digital commodity ex*ange1 digital commodity brok]1 or digital commodity deal] "u ! ,commodity ,ex*ange ,act4 7#b7 ,=eign adv]s>ies ,! t]m =eign adv]s>ies means ! =eign gov]nm5ts & =eign non-gov]nm5t p]sons det]m9$ by ! ,secret>y ( ,comm]ce to be =eign adv]s>ies "u section #g4d7;a7 ( title #ae1 ,code ( ,f$]al ,regulations4 7#c7 ,relevant congressional committees ,! t]m relevant congressional committees means-- 7,a7 ! ,committees on ,f9ancial ,s]vices & ,agriculture ( ! ,h\se ( ,repres5tatives2 & 7,b7 ! ,committees on ,bank+1 ,h\s+1 & ,urban ,affairs & ,agriculture1 ,nutrition1 & ,=e/ry ( ! ,s5ate4 #eab4 ,con=m+ am5dm5ts ,! ,,g5ius ,act is am5d$-- 7#a7 9 section #b1 by am5d+ p>agraph 7#g7 to read z foll[s3 7#g7 ,digital asset s]vice provid] ,! t]m digital asset s]vice provid] means any entity regi/]$ or requir$ to be regi/]$ ) ! ,securities & ,ex*ange ,commission or ! ,commodity ,futures ,trad+ ,commission4 2 7#b7 9 section #d7;a7-- 7,a7 by am5d+ p>agraph 7#c7 to read z foll[s3 7#c7 ,mon?ly c]tification2 exam9ation ( reports by regi/]$ public acc\nt+ firm 7,a7 ,9 g5]al ,a p]mitt$ paym5t /ableco9 issu] %all1 ea* mon?1 h ! in=mation disclos$ 9 ! previ\s mon?-end report requir$ "u p>agraph 7#a77;,c7 exam9$ by a regi/]$ public acc\nt+ firm & su* exam9ation %all be p]=m$ 9 accordance ) /&>ds = atte/ation engagem5ts issu$ or adopt$ by ! prim>y ,f$]al paym5t /ableco9 regulator or1 9 ! case ( a ,/ate qualifi$ paym5t /ableco9 issu]1 ! ,/ate paym5t /ableco9 regulator4 7,b7 ,c]tification ,ea* mon?1 ! ,*ief ,executive ,(fic] & ,*ief ,f9ancial ,(fic] ( a p]mitt$ paym5t /ableco9 issu] %all submit to1 z applicable1 ! prim>y ,f$]al paym5t /ableco9 regulator or1 9 ! case ( a ,/ate qualifi$ paym5t /ableco9 issu]1 ! ,/ate paym5t /ableco9 regulator1 a c]tification t1 bas$ on su* (fic]s' k1 ! previ\s mon?ly report requir$ "u p>agraph 7#a77;,c7-- 7i7 does n conta9 any untrue /atem5t ( mat]ial fact or omit to /ate a mat]ial fact necess>y 9 ord] to make ! /atem5ts made1 9 light ( ! circum/ances "u :i* su* /atem5ts 7 made1 n mislead+2 & 7ii7 fairly pres5t$ 9 all mat]ial respects ! in=mation requir$ "u p>agraph 7#a77;,c7 = ! p]iod pres5t$ 9 su* report4 7,c7 ,crim9al p5alty ,any p]son :o submits a c]tification requir$ "u subp>agraph 7,b7 kn[+ t su* c]tification is false %all be subject to ! same crim9al p5alties z ^? set =? "u section #acej7;c7 ( title #ah1 ,unit$ ,/ates ,code4 7,d7 ,int]nal controls ov] p]mitt$ paym5t /ableco9 issu]'s requirem5ts 7i7 ,9 g5]al ,managem5t ( a p]mitt$ paym5t /ableco9 issu] %all e/abli% & ma9ta9 an adequate int]nal control /ructure & proc$ures = ! requirem5ts "u ?is p>agraph & p>agraphs 7#a7 & 7#b7 9 accordance ) a framework det]m9$ acceptable by ! prim>y ,f$]al paym5t /ableco9 regulator or1 9 ! case ( a ,/ate qualifi$ paym5t /ableco9 issu]1 ! ,/ate paym5t /ableco9 regulator4 7ii7 ,atte/ation report ,a p]mitt$ paym5t /ableco9 issu] %all obta9 an annual atte/ation report by an indep5d5t regi/]$ public acc\nt+ firm atte/+ to managem5t's ass]tions conc]n+ ! effectiv5ess ( ! int]nal control /ructure & proc$ures = compliance ) ! requirem5ts describ$ 9 ?is p>agraph & p>agraphs 7#a7 & 7#b74 ,su* atte/ation %all be made 9 accordance ) /&>ds = atte/ation engagem5ts issu$ or adopt$ by ! prim>y ,f$]al paym5t /ableco9 regulator or1 9 ! case ( a ,/ate qualifi$ paym5t /ableco9 issu]1 ! ,/ate paym5t /ableco9 regulator4 2 & 7,b7 by am5d+ p>agraph 7#ab7 to read z foll[s3 7#ab7 ,non-f9ancial companies 7,a7 ,prohibition on non-f9ancial company own]%ip ,x %all be unlawful = a company t d]ives a majority ( its rev5ues f activities t are n f9ancial activities to reta9 or acquire control ( a nonbank entity t is-- 7i7 a ,f$]al qualifi$ paym5t /ableco9 issu]2 or 7ii7 a ,/ate qualifi$ paym5t /ableco9 issu]4 7,b7 ,f9ancial activities def9$ 7i7 ,9 g5]al ,9 ?is p>agraph1 ! t]m f9ancial activities means-- 7,i7 a f9ancial activity1 )9 ! mean+ ( section #d7k7 ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahdc7k772 7,,ii7 issu+1 r$eem+1 provid+ cu/odial or safekeep+ s]vices =1 buy+1 sell+1 mak+ a m>ket 91 or manag+ a res]ve = paym5t /ableco9s2 7,,iii7 provid+ electronic wallet s]vices = paym5t /ableco9s2 or 7,,iv7 an activity det]m9$ by ! ,bo>d to be a f9ancial activity pursuant to clause 7ii74 7ii7 ,e/abli%+ additional f9ancial activities ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ! ,,cl>ity ,act ( #bjbe1 ! ,bo>d1 9 consultation ) ! ,secret>y ( ! ,treasury & ! ,comptroll]1 %all issue rules1 consi/5t ) ! purposes ( ?is ,act1 to e/abli%-- 7,i7 a li/ ( additional activities t are f9ancial activities = purposes ( clause 7i71 includ+ applicable digital asset activities t are f9ancial activities2 & 7,,ii7 a /reaml9$ proc$ure = a nonbank entity to submit an activity to ! ,bo>d = purposes ( ! ,bo>d det]m9+ :e!r su* activity %\ld be add$ to ! li/ ( additional activities t are f9ancial activities = purposes ( clause 7i74 2 & 7#c7 by add+ at ! end ! foll[+3 #ba4 ,commodity-back$ paym5t /ableco9s 7a7 ,rule ( con/ruction ,no?+ 9 ?is ,act %all be con/ru$ to prohibit or limit a commodity-back$ paym5t /ableco9 issu] f issu+ a commodity-back$ paym5t /ableco9 9 accordance ) regulations e/abli%$ by a ,/ate commodity-back$ paym5t /ableco9 regulator4 7b7 ,pres]vation ( ,f$]al au?ority ,no?+ 9 ?is section %all be con/ru$ to alt] or limit ! jurisdiction ( ! ,commodity ,futures ,trad+ ,commission ov] any matt] )9 ! ,commission's au?ority "u applicable law4 7c7 ,def9itions ,= purposes ( ?is section3 7#a7 ,commodity-back$ paym5t /ableco9 ,! t]m commodity-back$ paym5t /ableco9 means a digital asset-- 7,a7 t is1 or is design$ to be1 us$ z a means ( paym5t or settlem5t2 7,b7 t is d5om9at$ 9 a highly liquid1 publicly trad$ physical commodity1 su* z gold2 7,c7 ! issu] ( :i* is obligat$ to-- 7i7 conv]t1 r$eem1 or repur*ase = a fix$ am\nt ( ! d5om9at$ highly liquid1 publicly trad$ physical commodity2 & 7ii7 cu/ody or cause to be cu/odi$1 = ! b5efit ( ! hold]s ( ! paym5t /ableco91 an am\nt ( ! physical commodity equal to or great] ?an ! total am\nt ( out/&+ paym5t /ableco9s1 = ! purpose ( conv]t+1 r$eem+1 or repur*as+ ! digital asset2 & 7,d7 t is n-- 7i7 a security issu$ by-- 7,i7 an inve/m5t company regi/]$ "u section #h7;a7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#h7;a772 or 7,,ii7 a p]son t w\ld be an inve/m5t company "u ! ,inve/m5t ,company ,act ( #aidj b = p>agraphs 7#a7 & 7#g7 ( section #c7;c7 ( t ,act 7#ae ,u4,s4,c4 #hj;a-#c7;c772 7ii7 a deposit 7z def9$ "u section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac771 reg>dless ( ! te*nology us$ to record su* deposit2 7iii7 an acc\nt 7z def9$ 9 section #aja ( ! ,f$]al ,cr$it ,union ,act 7#ab ,u4,s4,c4 #ageb771 reg>dless ( ! te*nology us$ to record su* acc\nt2 or 7iv7 an int]e/ or p>ticipation 9 a commodity pool 7z def9$ 9 section #a;a7#aj7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a774 7#b7 ,commodity-back$ paym5t /ableco9 issu] ,! t]m commodity-back$ paym5t /ableco9 issu] means-- 7,a7 an entity t issues a commodity-back$ paym5t /ableco92 & 7,b7 an entity t is approv$ to issue su* commodity-back$ paym5t /ableco9s by a ,/ate commodity-back$ paym5t /ableco9 regulator4 7#c7 ,physical commodity ,! t]m physical commodity means any exempt commodity 7z def9$ 9 section #a;a7#ba7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a77 :i* c be physically deliv]$4 7#d7 ,/ate commodity-back$ paym5t /ableco9 regulator ,! t]m ,/ate commodity-back$ paym5t /ableco9 regulator means a ,/ate ag5cy t has prim>y regulatory & sup]visory au?ority ov] entities t issue commodity-back$ paym5t /ableco9s 9 su* ,/ate4 #bb4 ,protection ( self-cu/ody 7a7 ,9 g5]al ,a ,unit$ ,/ates individual %all reta9 ! "r to-- 7#a7 ma9ta9 a h>dw>e wallet or s(tw>e wallet = ! purpose ( facilitat+ ! individual's own lawful cu/ody ( digital assets2 & 7#b7 engage 9 direct1 pe]-to-pe] transactions 9 digital assets ) ano!r individual or entity = ! individual's own lawful purposes us+ a h>dw>e wallet or s(tw>e wallet1 if-- 7,a7 su* o!r individual or entity is n a f9ancial in/itution 7z def9$ 9 section #ecab ( title #ca1 ,unit$ ,/ates ,code72 & 7,b7 ! transactions d n involve any prop]ty or int]e/s 9 prop]ty t are block$ pursuant to1 or are o!rwise prohibit$ by1 ,unit$ ,/ates sanctions4 7b7 ,application ,?is section-- 7#a7 applies solely to p]sonal use by individuals2 & 7#b7 does n apply to individuals act+ 9 a cu/odial or fiduci>y capacity = o!rs4 7c7 ,rule ( con/ruction ,no?+ 9 ?is section %all be con/ru$ to limit ! au?ority ( ! ,secret>y ( ! ,treasury1 ! ,securities & ,ex*ange ,commission1 ! ,commodity ,futures ,trad+ ,commission1 or ! prim>y ,f$]al paym5t /ableco9 regulators to c>ry out any en=cem5t action or special measure au?oriz$ "u applicable law1 includ+-- 7#a7 ! ,bank ,secrecy ,act1 section #igad ( ! ,combat+ ,russian ,money ,laund]+ ,act 7#ca ,u4,s4,c4 #ecah;,a note71 & section #gbac;,a ( ! ,f5tanyl ,sanctions ,act 7#ba ,u4,s4,c4 #bcac;a72 or 7#b7 any o!r law relat+ to illicit f9ance1 money laund]+1 t]rorism f9anc+1 or ,unit$ ,/ates sanctions4 4 ,,vi ,anti-,,cbdc ,surveillance ,/ate ,act #fja4 ,%ort title ,?is title may be cit$ z ! ,anti-,,cbdc ,surveillance ,/ate ,act4 #fjb4 ,prohibition on ,f$]al res]ve banks relat+ to c]ta9 products or s]vices = individuals & prohibition on directly issu+ a c5tral bank digital curr5cy ,section #af ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #daa et seq47 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ah7 7,a7 ,a ,f$]al res]ve bank may n-- 7i7 (f] f9ancial products or s]vices directly to an individual2 7ii7 ma9ta9 an acc\nt on behalf ( an individual2 or 7iii7 issue a c5tral bank digital curr5cy1 or any digital asset t is sub/antially simil> "u any o!r "n or label4 7,b7 ,9 ?is p>agraph1 ! t]m c5tral bank digital curr5cy has ! mean+ giv5 t t]m "u section #aj7aa77;,d74 4 #fjc4 ,prohibition on ,f$]al res]ve banks indirectly issu+ a c5tral bank digital curr5cy ,section #af ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #daa et seq471 z am5d$ by section #b1 is fur!r am5d$ by add+ at ! end ! foll[+ p>agraph3 7#ai7 7,a7 ,a ,f$]al res]ve bank may n (f] a c5tral bank digital curr5cy1 or any digital asset t is sub/antially simil> "u any o!r "n or label1 indirectly to an individual ?r\gh a f9ancial in/itution or o!r int]m$i>y4 7,b7 ,9 ?is p>agraph1 ! t]m c5tral bank digital curr5cy has ! mean+ giv5 t t]m "u section #aj7aa77;,d74 4 #fjd4 ,prohibition ) respect to c5tral bank digital curr5cy ,section #aj ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #bda et seq47 is am5d$ by ins]t+ be=e p>agraph 7#ab7 ! foll[+3 7#aa7 ,prohibition ) respect to c5tral bank digital curr5cy 7,a7 ,9 g5]al ,! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em may n te/1 /udy1 develop1 create1 or implem5t a c5tral bank digital curr5cy1 or any digital asset t is sub/antially simil> "u any o!r "n or label4 7,b7 ,monet>y policy ,! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em & ! ,f$]al ,op5 ,m>ket ,committee may n use a c5tral bank digital curr5cy to implem5t monet>y policy1 or any digital asset t is sub/antially simil> "u any o!r "n or label4 7,c7 ,exception ,subp>agraph 7,a7 & sections #af7ah77;,a77iii7 & #af7ai77;,a7 may n be con/ru$ to prohibit any doll>-d5om9at$ curr5cy t is op51 p]missionless1 & private1 & fully pres]ves ! privacy protections ( ,unit$ ,/ates co9s & physical curr5cy4 7,d7 ,c5tral bank digital curr5cy def9$ ,9 ?is p>agraph1 ! t]m c5tral bank digital curr5cy means a =m ( digital money or monet>y value t is-- 7i7 d5om9at$ 9 ! national unit ( acc\nt2 7ii7 a direct liability ( ! ,f$]al ,res]ve ,sy/em2 & 7iii7 widely available to ! g5]al public4 4 #fje4 ,s5se ( ,congress ,x is ! s5se ( ,congress t ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em curr5tly does n h ! au?ority to issue a c5tral bank digital curr5cy1 or any digital asset t is sub/antially simil> "u any o!r "n or label1 & w n h su* au?ority unless ,congress grants x "u ,congress's ,article #a ,section #h p[]s4 ,pass$ ! ,h\se ( ,repres5tatives ,july #ag1 #bjbe4;,cl]k4