,,ii ,cal5d> ,no4 #dbc #aai? ,,congress #b;d ,session ,h4 ,r4 #cfcc ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,septemb] #ah 7legislative day1 ,septemb] #af71 #bjbe ,receiv$2 read twice & ref]r$ to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ,june #a1 #bjbf,report$ by ,mr4 ,scott ( ,s\? ,c>ol9a1 ) an amendment,strike out all aft] ! enact+ clause & ins]t ! "p pr9t$ 9 italic ,,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$it$ ,registration,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 ,improvements,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 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 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,digital ,asset ,m>ket ,cl>ity ,act4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4,sec4 #b4 ,def9itions4,,title ,i--,responsible securities innovation,sec4 #aja4 ,%ort title4,sec4 #ajb4 ,disclosure requirem5ts = c]ta9 transactions involv+ ancill>y assets4,sec4 #ajc4 ,exemption & rulemak+ = c]ta9 transactions involv+ ancill>y assets4,sec4 #ajd4 ,special disposition re/rictions by relat$ p]sons4,sec4 #aje4 ,*>act]i/ics ( network tok5s4,sec4 #ajf4 ,exemptive au?ority4,sec4 #ajg4 ,mod]nization ( recordkeep+ requirem5ts4,sec4 #ajh4 ,mod]nization ( securities regulations = digital asset activities4,sec4 #aji4 ,insid] trad+ ) respect to ancill>y asset transactions4,sec4 #aaj4 ,securities ,inve/or ,protection ,corporation applicability4,sec4 #aaa4 ,inve/or & consum] protection en=cem5t4,,title ,,ii--,protect+ aga9/ illicit finance,sec4 #bja4 ,treatm5t "u ! ,bank ,secrecy ,act & sanctions laws4,sec4 #bjb4 ,digital asset exam9ation /&>ds4,sec4 #bjc4 ,prev5t+ ,illicit ,f9ance ,?r\gh ,p>tn]%ip ,act4,sec4 #bjd4 ,f9ancial ,te*nology ,protection ,act4,sec4 #bje4 ,digital asset kiosks4,sec4 #bjf4 ,/udy on illicit use ( digital assets4,,title ,,iii--,responsible innovation 9 dec5traliz$ finance,sec4 #cja4 ,rulemak+ on application ( exi/+ securities int]m$i>y requirem5ts & exi/+ ,bank ,secrecy ,act requirem5ts to non-dec5traliz$ f9ance trad+ protocols4,sec4 #cjb4 ,illicit f9ance obligations = di/ribut$ l$g] messag+ sy/ems4,sec4 #cjc4 ,special measure relat+ to c]ta9 transmittals ( funds4,sec4 #cjd4 ,(f%ore /ableco9 report4,sec4 #cje4 ,tempor>y hold = c]ta9 digital asset transactions4,sec4 #cjf4 ,volunt>y cyb]security program = dec5traliz$ f9ance trad+ protocols4,sec4 #cjg4 ,am5dm5ts to monet>y in/rum5t def9ition4,sec4 #cjh4 ,risk managem5t /&>ds = digital asset int]m$i>ies4,sec4 #cji4 ,/udy on digital asset mix]s & tumbl]s4,sec4 #caj4 ,,gao /udy on int]m$i>ies 9 =eign jurisdictions4,sec4 #caa4 ,/udies on =eign adv]s>y activities4,sec4 #cab4 ,treasury /udy on cyb]security /&>ds4,sec4 #cac4 ,/udies on f9ancial /ability risks ( dec5traliz$ f9ance trad+ & cr$it 9 digital commodity m>kets4,,title ,,iv--,responsible bank+ innovation,sec4 #dja4 ,p]missibility ( digital asset activities4,sec4 #djb4 ,jo9t rules = portfolio m>g9+ det]m9ations4,sec4 #djc4 ,capital requirem5ts to address nett+ agreem5ts4,sec4 #djd4 ,prohibit+ int]e/ & yield on paym5t /ableco9s4,sec4 #dje4 ,exp&$ securities portfolio m>g9 acc\nts "u ! ,securities ,inve/or ,protection ,act ( #aigj4,,title ,v--,responsible regulatory innovation,sec4 #eja4 ,,cftc-,,sec ,micro-,innovation ,s&box4,sec4 #ejb4 ,int]national coop]ation4,sec4 #ejc4 ,automat$ regulatory compliance /udy4,sec4 #ejd4 ,report on legislative recomm5dations4,sec4 #eje4 ,tok5ization ( securities4,sec4 #ejf4 ,volunt>y adoption ( ,national ,in/itute ( ,/&>ds & ,te*nology po/-quantum cryptography /&>ds4,sec4 #ejg4 ,int]national coord9ation to combat digital asset illicit f9ance4,sec4 #ejh4 ,annual report on =eign digital asset trad+ volume1 compliance ) ,unit$ ,/ates /&>ds & rem$iation actions4,sec4 #eji4 ,,ai innovation labs4,,title ,,vi--,protect+ s(tw>e develop]s & s(tw>e innovation,sec4 #fja4 ,protect+ s(tw>e develop]s4,sec4 #fjb4 ,safe h>bor = nonfungible tok5s4,sec4 #fjc4 ,/udy on nonfungible tok5s4,sec4 #fjd4 ,block*a9 ,regulatory ,c]ta9ty ,act4,sec4 #fje4 ,keep ,y\r ,co9s ,act4,,title ,,vii--,protect+ cu/om] property,sec4 #gja4 ,cu/om] prop]ty protections = ancill>y assets & digital commodities 9 bankruptcy4,sec4 #gjb4 ,insolv5cy safe h>bor4,,title ,,viii--,cu/om] protection,sec4 #hja4 ,educational mat]ials4,sec4 #hjb4 ,sav+s clauses4,sec4 #hjc4 ,/udy on exp&+ f9ancial lit]acy4,sec4 #hjd4 ,consultation ) ,,sipc reg>d+ m&atory brok]-deal] disclosures to inve/ors conc]n+ ! /atus ( paym5t /ableco9s & digital commodities4,,title ,,ix--,o!r matters,sec4 #ija4 ,jo9t ,advisory ,committee on ,digital ,assets4,sec4 #ijb4 ,memor&um ( und]/&+4,sec4 #ijc4 ,fin,c,e,n appropriations4,sec4 #ijd4 ,build ,n[ ,act4,sec4 #ije4 ,rulemak+s4,sec4 #ijf4 ,effective date4 #b4 ,def9itions ,9 ?is ,act3 7#a7 ,ancill>y asset2 ancill>y asset orig9ator2 network tok5 ,! t]ms ancill>y asset1 ancill>y asset orig9ator1 & network tok5 h ! mean+s giv5 ^? t]ms 9 section #d;,b7a7 ( ! ,securities ,act ( #aicc1 z add$ by ?is ,act4 7#b7 ,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#c7 ,commission ,except :]e o!rwise expressly provid$1 ! t]m ,commission means ! ,securities & ,ex*ange ,commission4 7#d7 ,coord9at$ control ,) respect to any di/ribut$ l$g] sy/em & a relat$ ancill>y asset1 ! t]m coord9at$ control has ! mean+ giv5 ! t]m by ! ,commission pursuant to rules adopt$ "u section #ajd7;b74 7#e7 ,dec5traliz$ gov]nance sy/em 7,a7 ,9 g5]al ,! t]m dec5traliz$ gov]nance sy/em means1 ) respect to a di/ribut$ l$g] sy/em1 any transp>5t1 rules-bas$ sy/em p]mitt+ p]sons to =m cons5sus or rea* agreem5t 9 ! developm5t1 provision1 publication1 ma9t5ance1 or adm9i/ration ( ! di/ribut$ l$g] sy/em1 9 :i* p>ticipation is n limit$ to1 or "u ! 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 ^? 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 entity1 includ+ a dec5traliz$ un9corporat$ nonpr(it association or o!r entity creat$ pursuant to ,/ate law1 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,d7 ,rule ( con/ruction ,= purposes ( ?is ,act1 & ! am5dm5ts made by ?is ,act1 a dec5traliz$ gov]nance sy/em %all n be deem$ to be a p]son or a gr\p ( p]sons act+ "u common control4 7#f7 ,digital asset2 digital asset s]vice provid] ,! t]ms digital asset & digital asset s]vice provid] h ! mean+s giv5 ^? t]ms 9 section #b ( ! ,,g5ius ,act 7#ab ,u4,s4,c4 #eija74 7#g7 ,digital asset int]m$i>y ,! t]m digital asset int]m$i>y means a p]son t is engag$ 9 digital asset activities & requir$ by law to regi/] ) ! ,commodity ,futures ,trad+ ,commission or ) ! ,commission "u ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq474 7#h7 ,digital commodity ,! t]m digital commodity has ! mean+ giv5 ! t]m 9 section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a71 z add$ by ?is ,act4 7#i7 ,di/ribut$ l$g] ,! t]m di/ribut$ l$g] means te*nology-- 7,a7 ?r\gh :i* data is %>$ across a network t creates a public digital l$g] ( v]ifi$ transactions or in=mation among network p>ticipants2 & 7,b7 9 :i* cryptography is us$ to l9k ! data describ$ 9 subp>agraph 7,a7 to-- 7i7 ma9ta9 ! integrity ( ! digital l$g] describ$ 9 t subp>agraph2 & 7ii7 execute o!r functions4 7#aj7 ,di/ribut$ l$g] application ,! t]m di/ribut$ l$g] application means executable s(tw>e t is deploy$ to & ma9ta9$ on a di/ribut$ l$g] & compos$ ( 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#aa7 ,di/ribut$ l$g] protocol ,! t]m di/ribut$ l$g] protocol means publicly available s\rce code ( a di/ribut$ l$g] t is execut$ by ! network p>ticipants ( a di/ribut$ l$g] to facilitate its function+1 or o!r simil> te*nology4 7#ab7 ,di/ribut$ l$g] sy/em ,! t]m di/ribut$ l$g] sy/em means a di/ribut$ l$g] 7toge!r ) its di/ribut$ l$g] protocol71 a di/ribut$ l$g] application1 or a network ( di/ribut$ l$g] applications4 7#ac7 ,relat$ p]son ,! t]m relat$ p]son1 ) respect to an ancill>y asset orig9ator or an ancill>y asset-- 7,a7 means-- 7i7 any p]son t is1 or )9 ! prec$+ #cf-mon? p]iod 0-- 7,i7 a f\nd] or p]son s]v+ 9 a simil> capacity ) respect to ! ancill>y asset orig9ator2 & 7,,ii7 a b5eficial own] ( n less ?an #d p]c5t ( ! total am\nt ( out/&+ units ( an ancill>y asset associat$ ) ! ancill>y asset orig9ator2 7ii7 any p]son t is1 or 9 ! prec$+ #ab-mon? p]iod 01 an executive (fic]1 director1 tru/ee1 g5]al p>tn]1 own] ( m ?an #aj p]c5t ( any class ( equity %>es ( ! ancill>y asset orig9ator1 or p]son s]v+ 9 a simil> capacity ) respect to ! ancill>y asset orig9ator2 7iii7 any p]son1 or gr\p ( p]sons "u common control1 t b5eficially owns1 or 9 ! prec$+ #f-mon? p]iod own$1 #aj p]c5t or m ( ! total am\nt ( out/&+ units ( ! ancill>y asset2 & 7iv7 any p]son1 or gr\p ( p]sons "u common control1 t b5eficially owns1 or 9 ! prec$+ #f-mon? p]iod own$1 cov]$ tok5s 7z t t]m is def9$ 9 section #ajd7;a77 t equal n less ?an #b p]c5t ( ! total am\nt ( out/&+ units ( ! ancill>y asset2 & 7,b7 does n include a dec5traliz$ gov]nance sy/em4 7#ad7 ,securities laws ,! t]m securities laws has ! mean+ giv5 ! t]m 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a774 7#ae7 ,sm>t contract ,! t]m sm>t contract means a self-execut+ contract or program t-- 7,a7 is /or$ on a di/ribut$ l$g] sy/em2 & 7,b7 automatically executes or en=ces digital asset transactions ^u ! occurr5ce ( explicit1 pre-det]m9$ conditions encod$ 9 ! contract or program1 )\t int]v5tion1 o!r ?an to provide data1 by any entity or natural p]son4 ,i ,responsible securities innovation #aja4 ,%ort title ,?is title may be cit$ z ! ,lummis-,gillibr& ,responsible ,f9ancial ,innovation ,act ( #bjbf4 #ajb4 ,disclosure requirem5ts = c]ta9 transactions involv+ ancill>y assets 7a7 ,9 g5]al ,! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;a et seq47 is am5d$ by ins]t+ aft] section #d;,a 7#ae ,u4,s4,c4 #gg;d-#a7 ! foll[+3 #d;,b4 ,requirem5ts ) respect to c]ta9 transactions involv+ ancill>y assets 7a7 ,def9itions ,9 ?is section3 7#a7 ,ancill>y asset ,! t]m ancill>y asset means a network tok51 ! value ( :i* is dep5d5t ^u ! entrepr5eurial or manag]ial ef=ts ( an ancill>y asset orig9ator or a relat$ p]son1 z ^? concepts are fur!r specifi$ by ! ,commission by regulation4 7#b7 ,ancill>y asset orig9ator 7,a7 ,9 g5]al ,! t]m ancill>y asset orig9ator means1 ) respect to a p>ticul> ancill>y asset1 a p]son t 7:e!r directly or ?r\gh #a or m subsidi>y or controll$ entities7-- 7i7 initially (f]s1 sells1 or di/ributes ! ancill>y asset2 or 7ii7 dur+ ! #ab-mon? p]iod beg9n+ on ! date on :i* ! ancill>y asset is initially (f]$1 sold1 or di/ribut$1 controls or causes ! initial (f]1 sale1 or di/ribution ( t ancill>y asset4 7,b7 ,jo9t & sev]al liability ,= ! purposes ( ?is p>agraph1 if ! p]son t initially (f]$1 sold1 or di/ribut$ an ancill>y asset 7or o!rwise sold1 di/ribut$1 controll$1 or caus$ ! initial (f]1 sale1 or di/ribution ( ! ancill>y asset7 did n receive ! l>ge/ am\nt ( ^? ancill>y assets di/ribut$ 9 ! #ab-mon? p]iod foll[+ ! comm5cem5t ( t (f]1 sale1 or di/ribution1 !n t p]son1 solely = purposes ( subsection 7c71 %all be jo9tly & sev]ally consid]$ to be an ancill>y asset orig9ator ) respect to t ancill>y asset 7) ! p]son t controll$ su* (f]1 sale1 or di/ribution7 along ) ! p]son 7includ+ a p]son "u direct or indirect control ( t p]son7 t receiv$ ! l>ge/ am\nt ( ^? ancill>y assets 9 t p]iod1 o!r ?an ancill>y assets receiv$-- 7i7 9 an int]m$i>y capacity2 7ii7 solely ?r\gh a gratuit\s di/ribution2 7iii7 ?r\gh an (f]1 sale1 or di/ribution ( a security to ! public regi/]$ "u section #e2 or 7iv7 o!rwise 9 a broad & public mann] t ! ,commission det]m9es1 pursuant to regulation1 %\ld n subject ! p]son to disclosure requirem5ts "u subsection 7d74 7,c7 ,rulemak+ ,n lat] ?an #cfj days aft] ! date ( enactm5t ( ?is section1 ! ,commission %all1 aft] provid+ notice & ! opportunity = comm5t1 issue rules reg>d+ ! circum/ances "u :i* p]sons t are jo9tly & sev]ally consid]$ an ancill>y asset orig9ator pursuant to subp>agraph 7,b7 are responsible = furni%+ ! disclosures requir$ "u subsection 7d7 on behalf ( ! ancill>y asset orig9ator4 7#c7 ,c]tification cov]$ p>ty ,! t]m c]tification cov]$ p>ty means-- 7,a7 an ancill>y asset orig9ator2 7,b7 a subsidi>y ( ! ancill>y asset orig9ator2 7,c7 a relat$ p]son ( ! ancill>y asset orig9ator2 or 7,d7 any entity t directly or indirectly controls or is controll$ by a common entity ) ! ancill>y asset orig9ator4 7#d7 ,dec5traliz$ gov]nance sy/em2 digital asset2 digital asset int]m$i>y2 relat$ p]son2 securities laws ,! t]ms dec5traliz$ gov]nance sy/em1 digital asset1 digital asset int]m$i>y1 relat$ p]son1 & securities laws h ! mean+s giv5 ^? t]ms 9 section #b ( ! ,digital ,asset ,m>ket ,cl>ity ,act4 7#e7 ,gratuit\s di/ribution 7,a7 ,9 g5]al ,! t]m gratuit\s di/ribution-- 7i7 means a di/ribution ( a network tok51 includ+ a di/ribution effect$ by an ag5t or o!r s]vice provid] engag$ solely 9 an adm9i/rative or m9i/]ial capacity1 9 ex*ange = n m ?an a nom9al value ( ca%1 prop]ty1 s]vices1 or o!r assets 9 a broad1 equitable1 & non-discretion>y mann]2 & 7ii7 includes1 )\t limitation1 ! me*anisms & me?ods ( di/ribution describ$ 9 subp>agraph 7,b74 7,b7 ,me*anisms & me?ods ( di/ribution ,! me*anisms & me?ods ( di/ribution describ$ 9 ?is subp>agraph are ! foll[+3 7i7 ,self /ak+ ,! di/ribution ( a unit ( a network tok51 z a programmatic result ( validat+ or /ak+ activity = a di/ribut$ l$g] sy/em's cons5sus me*anism1 includ+ ! /ak+ ( a network tok51 & ! op]ation ( a node1 validator1 or sub/antially simil> s(tw>e = su* activity :]e ! own] ( ! /ak$ network tok5 & ! op]ator ( ! node1 validator1 or sub/antially simil> s(tw>e are ! same p]son or entity4 7ii7 ,self-cu/odial /ak+ ) a ?ird p>ty ,! di/ribution ( a unit ( a network tok51 z a programmatic result ( validat+ or /ak+ activity = a di/ribut$ l$g] sy/em's cons5sus me*anism1 includ+ ! /ak+ ( a network tok51 & ! op]ation ( a node1 validator1 or sub/antially simil> s(tw>e = su* activity 9 :i*-- 7,i7 ! own] ( ! /ak$ network tok51 & op]ator ( ! node1 validator1 or sub/antially simil> s(tw>e = su* activity are diff]5t p]sons or entities2 & 7,,ii7 ! op]ator ( ! node1 validator1 or sub/antially simil> s(tw>e does n ma9ta9 cu/ody or control ( ! /ak$ network tok54 7iii7 ,liquid /ak+ ,! di/ribution ( network tok5s1 z ! issuance1 transf]1 or r$emption ( liquid /ak+ tok5s repres5t+ a pro rata int]e/ 9 /ak$ network tok5s1 & _! associat$ rew>ds1 provid$ t su* tok5s are issu$ z adm9i/rative or m9i/]ial receipts & are n provid+ discretion>y managem5t au?ority4 7iv7 ,cu/odial & ancill>y /ak+ s]vices 7,i7 ,9 g5]al ,subject to ! rules issu$ pursuant to subclause 7,,ii71 ! provision ( cu/odial or ancill>y /ak+ s]vices enabl+ ! own] ( a network tok5 to p>ticipate 9 validat+ or /ak+ activity = a di/ribut$ l$g] sy/em's cons5sus me*anism t results 9 ! programmatic di/ribution ( a unit ( a network tok51 provid$ t su* cu/odial or ancill>y s]vices are exclusively adm9i/rative or m9i/]ial 9 nature4 7,,ii7 ,rulemak+ to def9e ! cu/odial & ancill>y /ak+ s]vices ,! ,commission %all issue rules def9+ ! cu/odial & ancill>y /ak+ s]vices describ$ 9 subclause 7,i7 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 7v7 ,programmatic & automat$ di/ributions ,! automat$1 programmatic1 protocol-def9$1 or rules-bas$ di/ribution ( network tok5s a*iev$ ?r\gh ! transp>5t function+ ( a di/ribut$ l$g] sy/em1 a di/ribut$ l$g]1 or di/ribut$ l$g] applications1 9 :i*-- 7,i7 di/ributions occur pursuant to public1 transp>5t1 rules-bas$ p>amet]s t are publicly available & are accessible on a p]missionless basis1 )\t individualiz$ or real-"t negotiation ) recipi5ts2 7,,ii7 recipi5ts receive network tok5s z a direct1 programmatic result ( objective1 v]ifiable network p>ticipation1 consumption1 or contribution1 includ+ cons5sus p>ticipation1 data availability1 b&wid?1 gov]nance1 or use & int]action ) ! protocol or application2 7,,iii7 ! numb] ( network tok5s receiv$ is proportionate to ! v]ifiable s]vice1 usage1 or contribution2 7,,iv7 any expect$ utility or value ( ! network tok5s arises prim>ily f dec5traliz$ network p>ticipation & m>ket =ces1 r ?an ! discretion>y actions ( any s+le p]son or affiliat$ gr\p2 & 7,v7 no p]son or gr\p has unilat]al au?ority to alt]1 re/rict1 or direct ! issuance p>amet]s or di/ribution me*anisms ( ! di/ribut$ l$g] sy/em1 & any modification occurs only ?r\gh a dec5traliz$ gov]nance sy/em4 7vi7 ,te*nology-neutral clause ,! di/ribution employ+ a me*anism1 protocol1 or te*nology n specifically describ$ 9 clauses 7i7 ?r\gh 7v71 )\t reg>d to :e!r su* me*anism1 protocol1 or te*nology is 9 exi/5ce at ! "t ( enactm5t ( ?is section1 & )\t reg>d to t]m9ology or und]ly+ te*nical framework1 provid$ su* di/ribution meets ! requirem5ts describ$ 9 subp>agraph 7,a77i74 7#f7 ,inve/m5t company ,! t]m inve/m5t company has ! mean+ giv5 ! t]m 9 section #c7;a7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#c7;a774 7#g7 ,network tok5 7,a7 ,9 g5]al ,! t]m network tok5 means a digital commodity t is intr9sically l9k$ to a di/ribut$ l$g] sy/em & t d]ives1 or is reasonably expect$ to d]ive1 its value f ! use ( su* di/ribut$ l$g] sy/em1 &1 pursuant to ! ,digital ,asset ,m>ket ,cl>ity ,act & ! am5dm5ts made by ! ,digital ,asset ,m>ket ,cl>ity ,act1 is treat$ z a non-security solely = purposes ( ! securities laws4 7,b7 ,disqualify+ f9ancial rights ,! t]m network tok5 does n include any ( ! foll[+3 7i7 ,any security1 consi/5t ) ! categories ( disqualify+ f9ancial rights describ$ 9 clause 7ii74 7ii7 ,an inve/m5t contract or a c]tificate ( int]e/ or p>ticipation 9 any pr(it-%>+ agreem5t t repres5ts1 gives ! hold]1 or is sub/antially economically or functionally equival5t to1 any ( ! foll[+1 z ! ,commission %all e/abli% by rule3 7,i7 ,a debt or equity int]e/1 or an option on a debt or equity int]e/1 9 a p]son4 7,,ii7 ,liquidation rights ) respect to a p]son4 7,,iii7 ,an entitlem5t to1 or a reasonable expectation (1 an int]e/1 divid5d1 or o!r paym5t1 or direct or indirect transf] ( value1 f a p]son 7o!r ?an a dec5traliz$ gov]nance sy/em74 7,,iv7 ,an express or impli$ f9ancial int]e/ 9 7includ+ a limit$ p>tn]%ip int]e/ or int]e/ 9 intellectual prop]ty (71 or provid$ by1 a p]son 7o!r ?an a dec5traliz$ gov]nance sy/em74 7iii7 ,any int]e/ t is1 repres5ts1 or is functionally equival5t to an int]e/ 9 an inve/m5t company or a company 7z def9$ 9 section #b ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#b77 t w\ld be an inve/m5t company "u section #c7;a7 ( t ,act 7#ae ,u4,s4,c4 #hj;a-#c7;a77 b = ! exclusions provid$ f t def9ition by section #c7;c7 ( t ,act 7#ae ,u4,s4,c4 #hj;a-#c7;c774 7iv7 ,any int]e/ t is1 repres5ts1 or is functionally equival5t to an int]e/ 9 any entity or p]son t is n an inve/m5t company b holds or w hold assets o!r ?an securities4 7,c7 ,rule ( con/ruction ,a digital commodity-- 7i7 %all be deem$ to be intr9sically l9k$ to a di/ribut$ l$g] sy/em if ! digital commodity is directly relat$ to ! functionality or op]ation ( ! di/ribut$ l$g] sy/em or to ! activities or s]vices = :i* ! di/ribut$ l$g] sy/em is creat$ or utiliz$2 & 7ii7 %all n be disqualifi$ f be+ deem$ a network tok5 due to ! grant+ ( economic int]e/s or vot+ capabilities ) respect to a di/ribut$ l$g] sy/em or its dec5traliz$ gov]nance sy/em1 z fur!r cl>ifi$ by ! ,commission ?r\gh ! f9al rules adopt$ "u section #aje ( ! ,lummis-,gillibr& ,responsible ,f9ancial ,innovation ,act ( #bjbf4 7b7 ,treatm5t ( network tok5s & transactions 7#a7 ,9 g5]al ,! (f]1 sale1 or di/ribution ( an ancill>y asset by1 or caus$ by1 an ancill>y asset orig9ator1 includ+ ?r\gh an und]writ]1 %all be consid]$ to be an (f]1 sale1 or di/ribution ( an inve/m5t contract involv+ an ancill>y asset1 except ) respect to a gratuit\s di/ribution4 7#b7 ,treatm5t z non-security ,except z provid$ 9 ?is section1 & subject to p>agraph 7#c71 a network tok5 %all be treat$ z a non-security1 to ! ext5t mat]ially consi/5t ) ! requirem5ts & conditions ( ?is section1 = purposes ( -- 7,a7 section #b7;a77#a72 7,b7 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a772 7,c7 section #b7;a7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#b7;a772 7,d7 section #bjb7;a7 ( ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#b7;a772 7,e7 section #af ( ! ,securities ,inve/or ,protection ,act ( #aigj 7#ae ,u4,s4,c4 #ghlll72 or 7,f7 any applicable requirem5t ( ,/ate law t is functionally equival5t to ! provisions describ$ 9 subp>agraphs 7,a7 ?r\gh 7,e71 includ+ any provision ( ,/ate law t directly or indirectly prohibits1 limits1 or imposes any conditions on ! use1 (f]1 sale1 transf]1 or disposition ( a network tok5 9 a mann] t is-- 7i7 n sub/antially simil> to prohibitions1 limitations1 or conditions impos$ by t ,/ate relat+ to assets t are commodities "u ! laws ( t ,/ate2 & 7ii7 inconsi/5t ) ?is section4 7#c7 ,second>y m>ket treatm5t 7,a7 ,9 g5]al ,except z provid$ 9 ?is section 7includ+ ! limitation "u subp>agraph 7,b771 & to ! ext5t mat]ially consi/5t ) ! requirem5ts & conditions ( ?is section1 ! (f]1 sale1 or di/ribution ( a network tok5 by a p]son %all be treat$ z n involv+ ! (f]1 sale1 or di/ribution ( a security "u-- 7i7 section #b7;a77#a72 7ii7 ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq472 7iii7 ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#a et seq472 7iv7 ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#a et seq472 7v7 ! ,securities ,inve/or ,protection ,act ( #aigj 7#ae ,u4,s4,c4 #gh;aaa et seq472 & 7vi7 any applicable requirem5t ( ,/ate law t is functionally equival5t to ! provisions describ$ 9 clauses 7i7 ?r\gh 7v71 includ+ any provision ( ,/ate law t directly or indirectly prohibits1 limits1 or imposes any conditions on ! use1 (f]1 sale1 transf]1 or disposition ( a network tok5 9 a mann] t is-- 7,i7 n sub/antially simil> to prohibitions1 limitations1 or conditions impos$ by t ,/ate relat+ to assets t are commodities "u ! laws ( t ,/ate2 & 7,,ii7 inconsi/5t ) ?is section4 7,b7 ,limitation ,subp>agraph 7,a7 %all n apply if ! applicable network tok5 is (f]$1 sold1 or di/ribut$ pursuant to ! (f]1 sale1 or di/ribution ( a security by an ancill>y asset orig9ator or und]writ]4 7#d7 ,treatm5t ( gratuit\s di/ributions 7,a7 ,9 g5]al ,a gratuit\s di/ribution1 by itself1 %all be presum$ to n con/itute an (f]1 sale1 or di/ribution ( a security = ! purposes (-- 7i7 section #b7;a77#a72 7ii7 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a772 7iii7 section #b7;a7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#b7;a772 7iv7 section #bjb7;a7 ( ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#b7;a772 7v7 section #af ( ! ,securities ,inve/or ,protection ,act ( #aigj 7#ae ,u4,s4,c4 #ghlll72 or 7vi7 any applicable requirem5t ( ,/ate law1 or any provision ( ,/ate law t is functionally equival5t to ! provisions describ$ 9 clauses 7i7 ?r\gh 7v71 includ+ any provision ( ,/ate law t directly or indirectly prohibits1 limits1 or imposes any conditions on ! use1 (f]1 sale1 transf]1 or disposition ( a network tok5 9 a mann] t is-- 7,i7 n sub/antially simil> to prohibitions1 limitations1 or conditions impos$ by t ,/ate relat+ to assets t are commodities "u ! laws ( t ,/ate2 & 7,,ii7 inconsi/5t ) ?is section4 7,b7 ,sav+s clause ,no?+ 9 ?is p>agraph may be con/ru$ to limit1 impair1 or o!rwise affect ! anti-fraud or anti-manipulation au?orities ( ! ,commission1 ! ,commodity ,futures ,trad+ ,commission1 or a ,/ate regulator4 7#e7 ,prior c]tification 7,a7 ,submission & default treatm5t 7i7 ,9 g5]al 7,i7 ,presumption ,= purposes ( ?is section1 !re %all be a rebuttable presumption t a network tok51 includ+ a network tok5 di/ribut$ 9 ! mann] describ$ 9 p>agraph 7#d71 is an ancill>y asset unless ! orig9ator ( t network tok51 or a digital asset int]m$i>y 7z provid$ "u subsection 7c77#d771 submits to ! ,commission a complet$ writt5 c]tification1 support$ by reasonable evid5ce1 z def9$ by ! ,commission1 suffici5t to demon/rate t ! network tok5 is n an ancill>y asset4 7,,ii7 ,cont5ts ,a c]tification submitt$ "u subclause 7,i7 %all include a /atem5t 9 accordance ) subsection 7d77#c77;,b77i74 7ii7 ,notification ,! ,commission %all notify ! ,commodity ,futures ,trad+ ,commission ( ea* c]tification made pursuant to clause 7i7 & ( any f9al ag5cy action ) respect to t c]tification4 7iii7 ,reciprocal notice ,! ,commission %all receive a copy ( any c]tification & support+ mat]ials submitt$ to ! ,commodity ,futures ,trad+ ,commission "u section #bjc7;d7 ( ! ,digital ,commodity ,int]m$i>ies ,act4 7,b7 ,automatic effectiv5ess ,a c]tification submitt$ "u subp>agraph 7,a7 by an orig9ator or a digital asset int]m$i>y %all become effective ^u ! e>li] (-- 7i7 ! date on :i* ! ,commission notifies ! orig9ator or digital asset int]m$i>y 9 writ+ t ! ,commission does n object to ! c]tification2 or 7ii7 if ! ,commission has n issu$ a rebuttal to ! orig9ator or digital asset int]m$i>y 9 accordance ) subp>agraph 7,c71 #fj days aft] ! date on :i* ! orig9ator or digital asset int]m$i>y submits ! c]tification4 7,c7 ,commission d5ial 7i7 ,au?ority to d5y ,subject to clauses 7ii7 & 7iii71 ! ,commission may d5y a c]tification submitt$ "u subp>agraph 7,a7 by an orig9ator or digital asset int]m$i>y only dur+ ! #fj-;day p]iod describ$ 9 subp>agraph 7,b77ii7 or ^u det]m9+1 bas$ on reasonable evid5ce1 t a mat]ial *ange 9 circum/ances has occurr$ aft] ! submission ( ! c]tification1 :e!r or n ! c]tification has tak5 effect4 7ii7 ,notice ( int5t to d5y ,if ! ,commission int5ds to d5y a c]tification submitt$ "u subp>agraph 7,a71 ! ,commission %all-- 7,i7 ei!r n lat] ?an #bj bus9ess days aft] ! date on :i* ! c]tification is submitt$1 or promptly aft] det]m9+ t a mat]ial *ange 9 circum/ances has occurr$1 provide to ! applicable orig9ator or digital asset int]m$i>y notice ( ! int5t ( ! ,commission to d5y t c]tification2 & 7,,ii7 provide to ! applicable orig9ator or digital asset int]m$i>y a #aj-;day p]iod foll[+ ! provision ( notice "u subclause 7,i7 dur+ :i*-- 7aa7 int]e/$ p]sons %all h an opportunity to submit writt5 data1 views1 & argum5ts relat+ to t c]tification2 & 7bb7 ! ,commodity ,futures ,trad+ ,commission may1 at ! discretion ( ! ,commodity ,futures ,trad+ ,commission1 submit input reg>d+ :e!r ! applicable asset-- 7,,aa7 satisfies ! requirem5ts = be+ consid]$ an ancill>y asset2 or 7,,bb7 includes any disqualify+ f9ancial "r describ$ 9 subsection 7a77#g77;,b74 7iii7 ,requirem5ts aft] notice ( int5t ,aft] ! #aj-;day p]iod describ$ 9 clause 7ii77,,ii71 ! ,commission %all-- 7,i7 ^u reque/ ( ! applicable orig9ator or digital asset int]m$i>y1 provide an opportunity = ! oral pres5tation ( data1 views1 & argum5ts by c]tification cov]$ p>ties2 7,,ii7 h a vote ( ! ,commission 7:i*1 not)/&+ section #d;,a ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;d-#a71 may n be delegat$ to an employee or employee bo>d or to any individual ,commission]7 to d5y ! c]tification aft] a f9d+ t ! applicable asset-- 7aa7 is an ancill>y asset2 or 7bb7 includes any disqualify+ f9ancial "r describ$ 9 subsection 7a77#g77;,b72 & 7,,iii7 notify ! ,commodity ,futures ,trad+ ,commission ( ea* d5ial made "u subclause 7,,ii74 7iv7 ,int]e/$ p]son ,= purposes ( ?is subp>agraph1 ! t]m int]e/$ p]son means1 ) respect to a network tok5-- 7,i7 ! ancill>y asset orig9ator ) respect to t network tok5 7ref]r$ to 9 ?is clause z ! orig9ator72 7,,ii7 a subsidi>y ( ! orig9ator2 7,,iii7 a relat$ p]son ( ! orig9ator2 7,,iv7 any entity t directly or indirectly controls or is controll$ by a common entity ) ! orig9ator2 7,v7 any brok] or deal] 7z ^? t]ms are def9$ 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a7771 or an ex*ange regi/]$ pursuant to section #f ( t ,act 7#ae ,u4,s4,c4 #gh;f71 t op]ates 9 connection ) digital assets2 or 7,,vi7 any p]son regi/]$ ) ! ,commodity ,futures ,trad+ ,commission t op]ates or proposes to op]ate 9 connection ) digital assets4 7,d7 ,c]tification fil$ by digital asset int]m$i>y 7i7 ,9 g5]al ,a c]tification submitt$ by a digital asset int]m$i>y "u ?is p>agraph %all only become effective if-- 7,i7 ! digital asset int]m$i>y has-- 7aa7 conduct$ a reasonable inquiry ( publicly available in=mation1 appropriate "u ! circum/ances1 reg>d+ :e!r ! applicable orig9ator has engag$ 9 entrepr5eurial & manag]ial ef=ts ) respect to ! applicable network tok5 dur+ ! mo/ rec5t #ahj-;day p]iod1 or is likely to engage 9 ^? ef=ts 9 ! future2 & 7bb7 conclud$ t ! ef=ts describ$ 9 item 7aa7 h n occurr$ or are n reasonably likely to occur2 & 7,,ii7 subject to clause 7ii71 ! applicable orig9ator has c]tifi$ t !re is n 7&1 dur+ ! mo/ rec5t #ahj-;day p]iod1 !re has n be57 mat]ial1 non-public in=mation reg>d+ entrepr5eurial or manag]ial ef=ts ) respect to ! applicable network tok5 9 ! possession ( ! orig9ator or a relat$ p>ty4 7ii7 ,limitation ,clause 7i77,,ii7 %all n be requir$ if ! applicable digital asset int]m$i>y1 aft] a reasonable inquiry1 appropriate "u ! circum/ances1 det]m9es t ! applicable orig9ator1 or any p]son jo9tly & sev]ally liable pursuant to subsection 7a77#b77;,b71 is n capable ( submitt+ ! applicable c]tification4 7,e7 ,f9al ag5cy action ,d5ial "u ?is p>agraph con/itutes f9al ag5cy action reviewable "u applicable law4 7,f7 ,toll+ ,any applicable p]iod specifi$ 9 ?is p>agraph may be toll$1 = p]iods ( n long] ?an #fj days1 dur+ ! #c-ye> p]iod foll[+ ! effective date ( ! ,digital ,asset ,m>ket ,cl>ity ,act1 ^u a %[+ 9 writ+ t ! orig9ator or digital asset int]m$i>y has n sub/antially respond$ to a reque/ = in=mation f ! ,commission )9 a reasonable "t4 7,g7 ,)drawal ,an orig9ator or digital asset int]m$i>y may )draw a c]tification submitt$ "u subp>agraph 7,a7 at any "t be=e approval4 7,h7 ,designat$ commission (fice ,! ,commission %all designate an (fice t %all-- 7i7 ackn[l$ge receipt ( c]tifications submitt$ "u subp>agraph 7,a72 7ii7 support ^? seek+ c]tification "u subp>agraph 7,a7 by provid+ guidance reg>d+ ! me*anics ( prep>+ & submitt+ ^? c]tifications2 & 7iii7 r\te c]tifications submitt$ "u subp>agraph 7,a71 toge!r ) any associat$ comm5ts or recomm5dations1 to ! appropriate division or (fice ( ! ,commission = review4 7,i7 ,mis/atem5ts or omissions ,any mat]ial mis/atem5t or omission to /ate a mat]ial fact1 includ+ ) respect to cont9u+ compliance1 9 a c]tification t has become effective "u ?is p>agraph %all con/itute gr\nds = ! ,commission1 consi/5t ) ! securities laws1 to issue an ord] d5y+1 susp5d+1 or revok+ ! effectiv5ess ( ! c]tification & to pursue any appropriate en=cem5t action4 7c7 ,disclosure requirem5ts = c]ta9 transactions involv+ ancill>y assets 7#a7 ,specifi$ initial & p]iodic disclosure requirem5ts 7,a7 ,9 g5]al ,an ancill>y asset orig9ator %all be subject to ! initial & p]iodic disclosure requirem5ts "u subsection 7d7 ^u ! occurr5ce ( ! e>li] ( ! foll[+3 7i7 ,any (f]1 sale1 or di/ribution ( an ancill>y asset aft] ! effective date ( ! ,digital ,asset ,m>ket ,cl>ity ,act by1 or t is caus$ by1 t ancill>y asset orig9ator pursuant to-- 7,i7 ,regulation ,crypto1 z adopt$ pursuant to section #ajc ( ! ,lummis-,gillibr& ,responsible ,f9ancial ,innovation ,act ( #bjbf2 7,,ii7 ! fil+ ( an effective regi/ration /atem5t "u ?is ,act2 7,,iii7 ! fil+ ( an (f]+ /atem5t describ$ 9 section #c7;b77#b72 or 7,,iv7 an (f]+ conduct$ pursuant to section #d7;a77#f74 7ii7 7,i7 ,! fir/ second>y m>ket (f]1 sale1 or di/ribution ( an ancill>y asset 9 ! ,unit$ ,/ates aft] ! effective date ( ! ,digital ,asset ,m>ket ,cl>ity ,act t con/itutes a public (f]+1 :e!r by ! ancill>y asset orig9ator or any o!r p]son4 7,,ii7 ,= ! purposes ( subclause 7,i71 ! t]m public (f]+ %all be int]pret$ consi/5t ) ! mean+ ( t t]m "u section #d7;a77#b74 7,b7 ,exclusion ,subp>agraph 7,a7 %all n apply if-- 7i7 ! aggregate gross proce$s f ! (f]1 sale1 or di/ribution ( ! applicable ancill>y asset 7toge!r ) any relat$ assets sold 9 ^? (f]s1 sales1 or di/ributions7 7 #e1jjj1jjj or less 7adju/$ = inflation7 dur+ ! #ab-mon? p]iod imm$iately foll[+ ! date ( ! fir/ su* (f]1 sale1 or di/ribution2 or 7ii7 ! av]age daily aggregate value ( trad+ 9 ! applicable ancill>y asset 9 all spot m>kets op5 to ! public 9 ! ,unit$ ,/ates = :i* trad+ volume is g5]ally available is #e1jjj1jjj or less 7adju/$ = inflation7 dur+ ! #ab-mon? p]iod 7or su* %ort] p]iod z ! ,commission may det]m9e7 imm$iately foll[+ ! comm5cem5t ( compliance ) ! disclosure requirem5ts "u subsection 7d7 7z det]m9$ pursuant to p>agraph 7#b7 ( ?is subsection71 bas$ on ! k ( ! ancill>y asset orig9ator aft] due inquiry 7or1 if ! ancill>y asset has n yet trad$ on spot m>kets op5 to ! public 9 ! ,unit$ ,/ates1 ! trad+ volume is reasonably expect$ to be #e1jjj1jjj or less 7adju/$ = inflation7 dur+ ! #ab-mon? p]iod imm$iately foll[+ ! report+ date specifi$ by p>agraph 7#b774 7,c7 ,calculation ,= ! purposes ( ?is p>agraph1 ! calculation ( daily aggregate value %all be bas$ on a reasonable calculation ( public data4 7#b7 ,comm5cem5t ( compliance ) specifi$ initial & p]iodic disclosure requirem5ts 7,a7 ,9 g5]al ,an ancill>y asset orig9ator subject to ! requirem5ts ( p>agraph 7#a7 %all comply ) ! disclosure requirem5ts "u subsection 7d7-- 7i7 be=e-- 7,i7 any initial (f]1 sale1 or di/ribution describ$ 9 p>agraph 7#a77;,a77i72 or 7,,ii7 a second>y m>ket (f]1 sale1 or di/ribution describ$ 9 p>agraph 7#a77;,a77ii72 & 7ii7 semiannually !reaft]4 7,b7 ,exclusion ,! requirem5ts ( ?is p>agraph %all n apply to an (f]1 sale1 or di/ribution ( an ancill>y asset t occurs aft] ! effective date ( ! ,digital ,asset ,m>ket ,cl>ity ,act if an ancill>y asset orig9ator has submitt$ a c]tification "u subsection 7d77#c77;,b7 & ! ,commission has n d5i$ t c]tification )9 a #fj-;day p]iod aft] ! completion ( ! process "u t subsection4 7#c7 ,transition rule 7,a7 ,9 g5]al ,an ancill>y asset orig9ator t initially (f]$1 sold1 or di/ribut$ 7or o!rwise controll$ or caus$ ! (f]1 sale1 or di/ribution (7 a security involv+ an ancill>y asset be=e ! effective date ( ! ,digital ,asset ,m>ket ,cl>ity ,act %all comply ) ! p]iodic disclosure requirem5ts "u subsection 7d71 if applicable1 beg9n+ on ! date t is #a ye> aft] t effective date4 7,b7 ,effect on c]tification ,an ancill>y asset orig9ator1 or any o!r c]tification cov]$ p>ty1 subject to ?is p>agraph t meets ! requirem5ts ( subsection 7d77#c7 may furni% a c]tification z provid$ 9 t subsection )\t comply+ ) ! p]iodic disclosure requirem5ts "u subsection 7d71 if ! ,commission has n d5i$ t c]tification )9 a #fj-;day p]iod aft] ! completion ( ! process "u t subsection4 7,c7 ,p]iod ( disclosures ,! disclosures requir$ "u subp>agraph 7,a7 %all apply ) respect to ! #c-ye> p]iod prec$+ ! effective date describ$ 9 t subp>agraph4 7#d7 ,digital asset int]m$i>ies 7,a7 ,9 g5]al ,o!r ?an z provid$ "u subp>agraph 7,b71 ) respect to an ancill>y asset t is li/$ = trad+ on a digital asset int]m$i>y1 t digital asset int]m$i>y may1 9 lieu ( ! applicable ancill>y asset orig9ator1 satisfy ! requirem5ts ( subsection 7d7 9 accordance ) su* rules z ! ,commission %all jo9tly adopt ) ! ,commodity ,futures ,trad+ ,commission4 7,b7 ,allocation ( disclosure responsibility 7i7 ,orig9ator fil+s ,a digital asset int]m$i>y may n satisfy ! requirem5ts ( subsection 7d7 9 lieu ( ! applicable ancill>y asset orig9ator1 if-- 7,i7 ! ancill>y asset orig9ator is incorporat$1 organiz$1 or o!rwise regi/]$ "u ! laws ( ! ,unit$ ,/ates or ( any ,/ate2 & 7,,ii7 ! applicable ancill>y asset is-- 7aa7 (f]$1 sold1 or di/ribut$ aft] ! effective date ( ! ,digital ,asset ,m>ket ,cl>ity ,act pursuant to-- 7,,aa7 an inve/m5t contract t is (f]$1 sold1 or di/ribut$ pursuant to ,regulation ,crypto1 z adopt$ pursuant to section #ajc ( ! ,lummis-,gillibr& ,responsible ,f9ancial ,innovation ,act ( #bjbf2 7,,bb7 ! fil+ ( an effective regi/ration /atem5t "u ?is ,act 7o!r ?an a regi/ration /atem5t on ! =m describ$ 9 section #bci4ca or #bci4cc ( title #ag1 ,code ( ,f$]al ,regulations1 or ! successor to ei!r su* =m72 7,,cc7 ! fil+ ( an (f]+ /atem5t describ$ 9 section #c7;b77#b72 or 7,,dd7 an (f]+ conduct$ pursuant to section #d7;a77#f72 or 7bb7 fir/ (f]$ or sold aft] ! effective date ( ! ,digital ,asset ,m>ket ,cl>ity ,act 9 a transaction describ$ 9 p>agraph 7#a77;,a77ii74 7ii7 ,commission det]m9ation 7,i7 ,9 g5]al ,if1 aft] notice1 comm5t1 & ! opportunity = a he>+1 ! ,commission det]m9es t x is 9 ! public int]e/ or necess>y = ! protection ( inve/ors1 includ+ ) respect to an ancill>y asset orig9ator incorporat$ or organiz$ 9 a =eign jurisdiction1 ! ,commission may require an ancill>y asset orig9ator1 aft] a transition p]iod1 to file ! disclosures requir$ "u subsection 7d74 7,,ii7 ,extrat]ritorial effect ,subclause 7,i7 %all apply extrat]ritorially4 7,c7 ,/&>d ( liability ,not)/&+ any o!r provision ( ?is ,act1 x %all be unlawful = a digital asset int]m$i>y to file disclosures "u subsection 7d7 pursuant to ?is p>agraph t conta9 any mat]ial mis/atem5t or omission to /ate a mat]ial fact requir$ to be /at$ !re91 or necess>y to make ! /atem5ts !re9 n mislead+1 unless t digital asset int]m$i>y did n "k 7&1 9 ! ex]cise ( reasonable c>e1 c\ld n h kn[n7 ( t mis/atem5t or omission4 7#e7 ,failure to comply ,subject to ! requirem5ts ( ?is section1 an ancill>y asset %all n be li/$ = trad+ on a digital asset int]m$i>y if ! ,commission & ! ,commodity ,futures ,trad+ ,commission jo9tly f9d t ! ancill>y asset orig9ator t initially (f]$1 sold1 or di/ribut$ ! ancill>y asset aft] ! effective date ( ! ,digital ,asset ,m>ket ,cl>ity ,act 7or1 if a digital asset int]m$i>y is satisfy+ ! requirem5ts ( ?is subsection 9 lieu ( t ancill>y asset orig9ator 9 accordance ) p>agraph 7#d71 su* digital asset int]m$i>y7 has mat]ially fail$ to furni% ! requir$ disclosures "u ?is subsection aft] a reasonable opportunity to cure1 z provid$ by jo9t rule ( ! ,commission & ! ,commodity ,futures ,trad+ ,commission 9 a mann] t is consi/5t ) ! consid]ations "u subsection 7d77#e74 7d7 ,specifi$ initial & p]iodic disclosure requirem5ts 7#a7 ,9 g5]al 7,a7 ,furni%+ ( in=mation ,an ancill>y asset orig9ator t is subject to ! requirem5ts ( p>agraph 7#a7 or 7#c7 ( subsection 7c71 or a digital asset int]m$i>y act+ 9 accordance ) subsection 7c77#d71 %all furni% to ! ,commission1 9 su* =m z ! ,commission may prescribe by rule aft] provid+ notice & ! opportunity = comm5t1 & until ! requirem5t t]m9ates "u p>agraph 7#c7 ( ?is subsection1 ! in=mation describ$ 9 p>agraph 7#b7 ( ?is subsection1 to ! ext5t t ! in=mation is mat]ial & kn[n1 or reasonably kn[able1 to ! ancill>y asset orig9ator or digital asset int]m$i>y4 7,b7 ,requirem5ts = rules ,a rule prescrib$ "u subp>agraph 7,a7 %all be reasonably tailor$1 includ+ by adju/+ ! scope1 =m1 & cont5t ( requir$ disclosures1 bas$ on-- 7i7 ! size ( ! applicable ancill>y asset orig9ator 9 accordance ) section #ajh7;a7 ( ! ,lummis-,gillibr& ,responsible ,f9ancial ,innovation ,act ( #bjbf2 7ii7 ! aggregate am\nt ( ancill>y assets (f]$1 sold1 or di/ribut$ by ! applicable ancill>y asset orig9ator to ! public 9 ! ,unit$ ,/ates2 & 7iii7 :e!r ! applicable ancill>y asset & any relat$ di/ribut$ l$g] sy/em is subject to coord9at$ control1 z def9$ by ! ,commission pursuant to rules adopt$ "u section #ajd7;b7 ( ! ,lummis-,gillibr& ,responsible ,f9ancial ,innovation ,act ( #bjbf4 7#b7 ,categories ( in=mation ,! in=mation requir$ "u p>agraph 7#a7 %all include ! foll[+ ) respect to ! applicable ancill>y asset orig9ator & ! relat$ ancill>y asset3 7,a7 ,basic corporate in=mation reg>d+ ! ancill>y asset orig9ator & ! ancill>y asset activities ( ! ancill>y asset orig9ator1 :i* may include ! foll[+ items1 z ! ,commission %all det]m9e by rule3 7i7 ,! exp]i5ce ( ! ancill>y asset orig9ator 7or p]sons controll+ ! ancill>y asset orig9ator7 9 develop+ ancill>y assets4 7ii7 ,if ! ancill>y asset orig9ator 7or p]sons controll+ ! ancill>y asset orig9ator7 has previ\sly di/ribut$ ancill>y assets1 in=mation on ! subsequ5t di/ribution hi/ory ( ^? ancill>y assets1 includ+ price hi/ory1 if ! in=mation is publicly available4 7iii7 ,! activities t ! ancill>y asset orig9ator has tak5 9 ! relevant disclosure p]iod1 & is project+ to take 9 ! #a-ye> p]iod foll[+ ! submission ( ! disclosure1 ) respect to promot+ ! use1 value1 or resale ( ! ancill>y asset 7includ+ any activity to facilitate ! creation or ma9t5ance ( a trad+ m>ket = ! ancill>y asset & any di/ribut$ l$g] sy/em1 application1 or sy/em t uses ! ancill>y asset74 7iv7 ,! anticipat$ co/ ( ! activities ( ! ancill>y asset orig9ator describ$ 9 clause 7iii71 :e!r ! ancill>y asset orig9ator has un5cumb]$1 liquid funds equal to t am\nt1 &1 if ! ancill>y asset orig9ator does n h ^? funds1 ! anticipat$ plan ( op]ations ( ! ancill>y asset orig9ator = ! portion ( "t :]e ^? liquid funds are less ?an ! anticipat$ co/ ( ! activities ( ! ancill>y asset orig9ator4 7v7 ,! exp]i5ce ( ! ancill>y asset orig9ator ) ! use ( a di/ribut$ l$g] sy/em or di/ribut$ l$g] te*nology4 7vi7 ,! id5tities & exp]tise ( ! bo>d ( directors 7or equival5t body7 & s5ior managem5t ( ! ancill>y asset orig9ator1 ! exp]i5ce or functions ( :om are mat]ial to ! developm5t or value ( ! ancill>y asset1 z well z any p]sonnel *anges relat+ to ! ancill>y asset orig9ator dur+ ! p]iod cov]$ by ! disclosure4 7vii7 ,f9ancial /atem5ts ( ! ancill>y asset orig9ator t are-- 7,i7 if ! aggregate am\nt ( su* ancill>y assets (f]$1 sold1 or di/ribut$ to ! public does n exce$ #be1jjj1jjj 9 gross proce$s1 review$ by a public acc\ntant t is indep5d5t ( ! ancill>y asset orig9ator2 or 7,,ii7 if ! aggregate am\nt ( su* ancill>y assets (f]$1 sold1 or di/ribut$ to ! public exce$s #be1jjj1jjj 9 gross proce$s1 audit$ by a public acc\ntant t is indep5d5t ( ! ancill>y asset orig9ator4 7viii7 ,a description ( any legal proce$+s 9 :i* ! ancill>y asset orig9ator is engag$4 7ix7 ,risk factors aris+ f ! activities ( ! ancill>y asset orig9ator ) respect to ! ancill>y asset1 & n g5]ally applicable to o!r k9ds ( ancill>y assets1 t may limit ! utility or liquidity ( ! ancill>y asset1 inve/or dem& ) respect to ! ancill>y asset1 or ! m>ket price or value ( ! ancill>y asset4 7x7 ,in=mation relat+ to own]%ip ( ! ancill>y asset by-- 7,i7 p]sons own+ n less ?an #aj p]c5t ( any class ( equity security or o!r own]%ip int]e/ ( ! ancill>y asset orig9ator2 & 7,,ii7 ! bo>d ( directors 7or equival5t body7 & s5ior managem5t ( ! ancill>y asset orig9ator1 if ^? individuals1 9 ! aggregate1 own n less ?an #e p]c5t ( ! ancill>y asset4 7xi7 ,= any mat]ial transactions involv+ ! ancill>y asset betwe5 ! ancill>y asset orig9ator & any relat$ p]son1 a description1 9 ! aggregate1 ( ! p>ties1 ! numb] ( ancill>y assets involv$1 & a summ>y ( any mat]ial features ( ! transactions1 includ+ any mat]ial t]ms or ongo+ obligations4 7xii7 ,a summ>y1 9 ! aggregate by ye>1 ( transactions 9 ancill>y assets dur+ ! #d-ye> p]iod prec$+ ! furni%+ ( ! disclosure1 by ! ancill>y asset orig9ator & p]sons t directly or indirectly control ! ancill>y asset orig9ator4 7xiii7 ,pur*ases or simil> acquisitions ( ancill>y assets by ! ancill>y asset orig9ator & affiliates ( ! ancill>y asset orig9ator4 7xiv7 ,a /atem5t1 made 9 good fai?1 f ! *ief f9ancial (fic] ( ! ancill>y asset orig9ator or equival5t (ficial1 /at+ :e!r ! ancill>y asset orig9ator reasonably expects to ma9ta9 or h ! f9ancial res\rces to cont9ue bus9ess z a go+ conc]n = ! #ab-mon? p]iod foll[+ ! furni%+ ( ! disclosure1 abs5t a *ange 9 circum/ances4 7xv7 ,! curr5t /ate & timel9e = ! developm5t ( ! di/ribut$ l$g] sy/em to :i* ! ancill>y asset relates1 detail+ if1 h[1 & :5 ! di/ribut$ l$g] sy/em & ! relat$ ancill>y asset are int5d$ to no long] be subject to coord9at$ control1 includ+ by relat$ p]sons1 if ! di/ribut$ l$g] sy/em has n yet receiv$ a c]tification "u section #ajd7;d7 ( ! ,lummis-,gillibr& ,responsible ,f9ancial ,innovation ,act ( #bjbf4 7,b7 ,economic & te*nical in=mation relat+ to ! ancill>y asset1 :i* may include ! foll[+ items1 z ! ,commission %all det]m9e by rule3 7i7 ,a g5]al description ( ! ancill>y asset & ! di/ribut$ l$g] sy/em to :i* t ancill>y asset relates1 includ+-- 7,i7 a pla9-,engli% description ( h[ ! applicable di/ribut$ l$g]1 di/ribut$ l$g] sy/em1 or di/ribut$ l$g] application functions2 7,,ii7 ! int5d$ or kn[n functionality & uses ( ! ancill>y asset & any associat$ fees = use or disposition ( ! ancill>y asset2 7,,iii7 ! m>ket = ! ancill>y asset2 7,,iv7 o!r assets or s]vices t may compete ) ! ancill>y asset2 7,v7 ! total supply ( ! ancill>y asset or ! mann] & rate ( ! ongo+ production or creation ( ! ancill>y asset2 & 7,,vi7 ! gov]nance & cons5sus me*anism = ! ancill>y asset & t di/ribut$ l$g] sy/em1 if applicable1 includ+ = validat+ transactions & implem5t+ *anges to ! di/ribut$ l$g] sy/em1 ! me?od ( g5]at+ or m9+ ancill>y assets1 & any process = burn+ or de/roy+ units ( ! ancill>y asset on a di/ribut$ l$g] sy/em4 7ii7 ,if ! ancill>y asset orig9ator has (f]$1 sold1 or o!rwise provid$ ancill>y assets to affiliates1 inve/ors1 employees1 int]m$i>ies1 or resell]s1 a description ( ! am\nt ( assets (f]$1 sold1 or o!rwise provid$ to su* p]sons & a summ>y ( any mat]ial resale re/rictions or o!r mat]ial obligations aris+ f relat$ contracts1 agreem5ts1 or o!r arrangem5ts4 7iii7 ,if ancill>y assets 7 di/ribut$ by ! ancill>y asset orig9ator )\t *>ge or ^u meet+ c]ta9 conditions1 a description ( ! di/ributions1 9 ! aggregate1 along ) ! id5tity ( any recipi5t t receiv$ m ?an #e p]c5t ( ! total am\nt ( ancill>y assets 7calculat$ z a p]c5tage ( ! total supply ( su* asset at ! "t ( di/ribution74 7iv7 ,! am\nt ( ancill>y assets own$ by ! ancill>y asset orig9ator4 7v7 ,= ! #ab-mon? p]iod foll[+ ! furni%+ ( ! disclosure1 a description ( ! curr5t /ate & anticipat$ timel9e = ! developm5t ( ! di/ribut$ l$g] sy/em to :i* t ancill>y asset relates1 includ+-- 7,i7 plans ( ! ancill>y asset orig9ator to support 7or to cease support+7 ! use or developm5t ( ! ancill>y asset1 includ+ m>kets = ! ancill>y asset & t di/ribut$ l$g] sy/em2 7,,ii7 ! v>i\s roles t exi/ or are int5d$ to exi/ 9 connection ) any applicable di/ribut$ l$g]1 di/ribut$ l$g] sy/em1 or di/ribut$ l$g] application1 su* z us]s1 s]vice provid]s1 develop]s1 transaction validators1 & gov]nance p>ticipants2 7,,iii7 a discussion ( any me*anisms by :i* control or au?ority are ex]t$ ) respect to t di/ribut$ l$g] sy/em1 if applicable1 or ! relat$ ancill>y asset2 & 7,,iv7 any critical op]ational dep5d5cies ( any applicable di/ribut$ l$g]1 di/ribut$ l$g] sy/em1 or di/ribut$ l$g] application or ( ! relat$ ancill>y asset4 7vi7 ,risk factors t may mat]ially affect ! liquidity ( ! ancill>y asset1 inve/or dem& ) respect to ! ancill>y asset1 or ! m>ket price or value ( ! ancill>y asset4 7vii7 ,to ! ext5t available to ! ancill>y asset orig9ator1 ! av]age daily price = a con/ant unit ( value ( ! ancill>y asset dur+ ! relevant report+ p]iod1 z well z ! #ab-mon? high & l[ prices = ! ancill>y asset1 z calculat$ bas$ on ! #c ex*anges ) ! l>ge/ trad+ volume 9 t ancill>y asset4 7viii7 ,if applicable1 & subject to cyb]security be/ practices1 in=mation relat+ to any ext]nal audit ( ! code & functionality ( ! ancill>y asset1 includ+ ! entity p]=m+ ! audit & ! exp]i5ce ( ! entity 9 conduct+ simil> audits4 7ix7 ,in=mation relat+ to cu/odial s]vices available = ! ancill>y asset4 7x7 ,in=mation on intellectual prop]ty rights claim$ or disput$ relat+ to ! ancill>y asset4 7xi7 ,a description ( ! te*nology und]ly+ ! initial di/ribution & trad+ ( ! ancill>y asset1 includ+ ! s\rce code = ! ancill>y asset1 if applicable1 & te*nical requirem5ts = hold+1 access+1 & transf]r+ ! ancill>y asset4 7xii7 ,if applicable1 a description ( ! /eps necess>y to indep5d5tly access1 se>*1 & v]ify ! transaction hi/ory ( ! ancill>y asset4 7,c7 ,9 addition to ! in=mation expressly requir$ to be includ$ "u subp>agraphs 7,a7 & 7,b71 ! ancill>y asset orig9ator or digital asset int]m$i>y1 z applicable1 %all provide su* fur!r mat]ial in=mation1 if any1 z may be necess>y to ensure t ! /atem5ts made 9 ! disclosure are n1 9 light ( ! circum/ances "u :i* ! /atem5ts are made1 mat]ially mislead+4 7#c7 ,t]m9ation ( requirem5ts 7,a7 ,t]m9ation ,! obligation ( an ancill>y asset orig9ator to provide disclosures "u p>agraph 7#a7 %all t]m9ate on ! date t a c]tification becomes effective "u subp>agraph 7,b71 includ+ ?r\gh an approval or deem$ approval4 7,b7 ,c]tification 7i7 ,9 g5]al ,a c]tification cov]$ p>ty may submit to ! ,commission a c]tification1 bas$ on ! k ( ! c]tification cov]$ p>ty aft] due inquiry & support$ by reasonable evid5ce1 t /ates-- 7,i7 t-- 7aa7 dur+ ! #ahj-;day p]iod prec$+ ! date on :i* ! c]tification cov]$ p>ty submits ! c]tification1 & z ( ! date ( submission1 no c]tification cov]$ p>ty has engag$ 9 m ?an a nom9al level ( entrepr5eurial or manag]ial ef=ts 7z def9$ by ! ,commission by rule71 :i* %all n1 = ! purposes ( ?is clause1 include provid+ adm9i/rative s]vices alone2 7bb7 any ef=ts describ$ 9 item 7aa7 7 n a prim>y factor 9 det]m9+ ! value ( ! relat$ ancill>y asset 7:i* may include t any ess5tial promises made by ! c]tification cov]$ p>ty h be5 fulfill$72 & 7cc7 a c]tification is effective "u section #ajd7;d7 ( ! ,lummis-,gillibr& ,responsible ,f9ancial ,innovation ,act ( #bjbf2 7,,ii7 9 good fai? t ! c]tification cov]$ p>ty does n reasonably expect !re to be any ef=ts t w\ld r5d] ! c]tification cov]$ p>ty unable to provide a new c]tification foll[+ ! date ( ! c]tification2 & 7,,iii7 t sub/antially all mat]ial in=mation t is reasonably expect$ to contribute to ! value ( ! ancill>y assets (f]$1 sold1 or di/ribut$ to ! public by ! ancill>y asset orig9ator is1 & is reasonably expect$ to rema91 available to ! public4 7ii7 ,*ange 9 circum/ances 7,i7 ,effectiv5ess ( ! c]tification ,a c]tification "u clause 7i7 %all rema9 effective until ! date on :i* any c]tification cov]$ p>ty engages 9 entrepr5eurial or manag]ial ef=ts t w\ld r5d] ! c]tification cov]$ p>ty unable to meet ! /&>ds ( ! c]tification4 7,,ii7 ,new disclosures requir$ ,on & aft] ! date describ$ 9 subclause 7,i71 ! c]tification cov]$ p>ty und]tak+ ef=ts describ$ 9 t subclause %all be responsible = furni%+ to ! ,commission ! disclosures requir$ "u p>agraph 7#a71 includ+ a description ( ! *ange 9 circum/ances4 7,,iii7 ,p]iodic disclosures ,! furni%+ ( disclosures pursuant to subclause 7,,ii7 %all re/>t ! s*$ule = p]iodic disclosures "u p>agraph 7#a74 7,,iv7 ,prior c]tifications ,a c]tification submitt$ "u clause 7i7 be=e a *ange 9 circum/ances %all n be deem$ false or mislead+ solely by reason ( subsequ5t re5gagem5t "u ?is clause4 7iii7 ,commission d5ial 7,i7 ,9 g5]al ,! ,commission may d5y a c]tification submitt$ "u clause 7i7 by a c]tification cov]$ p>ty by-- 7aa7 issu+ a writt5 notice ( objection to ! c]tification submitt$ "u clause 7i7 or ^u det]m9+ t m ?an a nom9al level ( entrepr5eurial or manag]ial ef=ts has be5 und]tak5 by any c]tification cov]$ p>ty aft] ! submission ( ! c]tification2 & 7bb7 provid+ to ! c]tification cov]$ p>ty #aj days notice ( ! int5t ( ! ,commission to d5y t c]tification1 dur+ :i* p]iod int]e/$ p]sons %all h an opportunity to submit writt5 data1 views1 & argum5ts relat+ to t c]tification4 7,,ii7 ,requirem5ts aft] notice ( int5t ,aft] ! #aj-;day p]iod describ$ 9 subclause 7,i77bb71 ! ,commission %all-- 7aa7 ^u reque/ ( ! c]tification cov]$ p>ty1 provide an opportunity = ! oral pres5tation ( data1 views1 & argum5ts by any int]e/$ p]sons2 & 7bb7 h a vote ( ! ,commission on :e!r to grant or d5y ! c]tification1 bas$ on a f9d+ z to :e!r ! applicable ancill>y asset meets ! /&>d = c]tification "u clause 7i74 7,,iii7 ,f9al ag5cy action ,d5ial "u ?is clause con/itutes f9al ag5cy action reviewable "u applicable law4 7iv7 ,deem$ approval ,if ! ,commission fails to issue a writt5 notice ( objection or non-objection )9 #ij days aft] submission ( a c]tification "u clause 7i71 ! c]tification %all be deem$ approv$ by ! ,commission4 7v7 ,)drawal ,a c]tification cov]$ p>ty may )draw a c]tification submitt$ "u clause 7i7 at any "t be=e t c]tification is approv$ or d5i$4 7vi7 ,designat$ ,commission (fice ,! ,commission %all designate an (fice t %all-- 7,i7 ackn[l$ge ! receipt ( c]tifications submitt$ "u clause 7i72 7,,ii7 support c]tification cov]$ p>ties seek+ c]tification "u clause 7i7 by provid+ guidance reg>d+ ! me*anics ( prep>+ & submitt+ ^? c]tifications2 & 7,,iii7 r\te c]tifications submitt$ "u clause 7i71 toge!r ) any associat$ comm5ts or recomm5dations1 to ! appropriate division or (fice ( ! ,commission = review4 7vii7 ,advance review 7,i7 ,9 g5]al ,a c]tification cov]$ p>ty may submit a c]tification "u clause 7i7 be=e ! (f]1 sale1 or di/ribution ( a network tok54 7,,ii7 ,int5d$ orig9ator ,9 submitt+ = a c]tification = advance review "u subclause 7,i71 a c]tification cov]$ p>ty %all id5tify ! p]son int5d+ to (f]1 sell1 or di/ribute ! applicable network tok51 & t p]son %all be treat$ z ! applicable ancill>y asset orig9ator = ! purposes ( ?is subp>agraph4 7viii7 ,toll+ ,any applicable p]iod specifi$ 9 ?is subp>agraph may be toll$1 = p]iods ( n long] ?an #fj days1 dur+ ! #c-ye> p]iod foll[+ ! effective date ( ! ,digital ,asset ,m>ket ,cl>ity ,act1 ^u a %[+ 9 writ+ t ! submitt+ c]tification cov]$ p>ty has n sub/antially respond$ to a reque/ = in=mation f ! ,commission )9 a reasonable "t4 7ix7 ,mis/atem5ts or omissions ,any mat]ial mis/atem5t or omission to /ate a mat]ial fact1 includ+ ) respect to cont9u+ compliance1 9 a c]tification t has become effective "u ?is subp>agraph %all con/itute gr\nds = ! ,commission1 consi/5t ) ! securities laws1 to-- 7,i7 issue an ord] d5y+1 susp5d+1 or revok+ ! effectiv5ess ( t c]tification2 & 7,,ii7 pursue any appropriate en=cem5t action4 7#d7 ,volunt>y disclosure ,an ancill>y asset orig9ator may volunt>ily furni% to ! ,commission ! in=mation requir$ "u ?is subsection if ! ancill>y asset orig9ator det]m9es t x is reasonably likely t ! ancill>y asset orig9ator w become subject to ! requirem5ts ( p>agraph 7#a7 or 7#c7 ( subsection 7c7 9 ! future4 7#e7 ,rulemak+ consid]ations ,9 adopt+ rules "u ?is subsection1 ! ,commission %all-- 7,a7 require only su* in=mation z ! ,commission f9ds to be necess>y or appropriate to protect inve/ors1 ma9ta9 fair1 ord]ly1 & effici5t m>kets1 & facilitate capital =mation1 innovation1 & effici5cy2 7,b7 include 9 any f9al v]sions ( ^? rules a co/-b5efit analysis evaluat+ ! effects ( any su* rule on innovation1 effici5cy1 competition1 ma9ta9+ fair & ord]ly m>kets1 & capital =mation1 includ+ ! competitiv5ess ( ,unit$ ,/ates m>ket p>ticipants2 & 7,c7 act jo9tly ) ! ,commodity ,futures ,trad+ ,commission to e/abli% a process = implem5t+ ! requirem5ts ( ?is subsection1 includ+ ) respect to li/+ & disclosures1 t is consi/5t & coord9at$ ) ! li/+ process = digital asset int]m$i>ies4 7#f7 ,limitations ,rules adopt$ "u ?is subsection %all n require ! inclusion ( f9ancial /atem5ts ( an ancill>y asset orig9ator1 except ) respect to ! disclosure ( f9ancial in=mation "u p>agraph 7#b74 7e7 ,exemptions ,! ,commission may1 by ord]1 exempt an ancill>y asset orig9ator or digital asset int]m$i>y1 or any class ( ancill>y asset orig9ators or digital asset int]m$i>ies1 f specifi$ requirem5ts "u subsection 7d7 if x is 9 ! public int]e/ or = ! protection ( inve/ors1 consi/5t ) ! purposes ( ?is section & subject to su* conditions z ! ,commission det]m9es necess>y to protect inve/ors & 9 ! public int]e/4 7f7 ,confid5tial treatm5t ( c]ta9 in=mation ,subject to ,commission rules & proc$ures1 an ancill>y asset orig9ator requir$ to furni% to ! ,commission disclosures "u subsection 7d71 or a digital asset int]m$i>y furni%+ ^? disclosures 9 lieu ( su* an ancill>y asset orig9ator1 may submit a reque/ = confid5tial treatm5t ( in=mation includ$ 9 su* disclosures pursuant to proc$ures ! ,commission %all e/abli% & t are model$ on or id5tical to section #bcj4djf ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulation4 7g7 ,effect ( failure to comply ,! failure ( an ancill>y asset orig9ator or digital asset int]m$i>y to comply ) a provision ( ?is section %all n1 by itself1 cause an ancill>y asset (f]$1 sold1 or di/ribut$ by t ancill>y asset orig9ator 7or t ! ancill>y asset orig9ator caus$ to be (f]$1 sold1 or di/ribut$7 to be a security "u any applicable law4 7h7 ,liability = false or mislead+ /atem5ts 7#a7 ,9 g5]al ,x %all be unlawful = an ancill>y asset orig9ator1 9 any initial & p]iodic disclosure1 c]tification1 or o!r docum5t furni%$ "u ?is section1 to make an untrue /atem5t ( a mat]ial fact or omit to /ate a mat]ial fact requir$ to be /at$ !re9 or necess>y to make ! /atem5ts !re9 n mislead+4 7#b7 ,rule ( con/ruction ,no?+ 9 ?is subsection may be con/ru$ z limit+ ! application ( section #bdj4aj;b-#e ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulation1 to false or mislead+ disclosure /atem5ts or prev5t+ any private "r ( action o!rwise available "u ! securities laws4 7i7 ,special disposition re/rictions by relat$ p]sons 7#a7 ,9 g5]al ,! ,commission %all adopt rules1 consi/5t ) section #ajd ( ! ,lummis-,gillibr& ,responsible ,f9ancial ,innovation ,act ( #bjbf1 e/abli%+ limitations on ! disposition ( c]ta9 ancill>y assets ) specifi$ *>act]i/ics by relat$ p]sons4 7#b7 ,consid]ations ,9 adopt+ rules "u p>agraph 7#a71 ! ,commission %all consid] :at is necess>y or appropriate to protect inve/ors1 promote capital =mation1 & ma9ta9 fair & ord]ly m>kets1 :i* may include ! prev5tion ( insid] self-deal+ or o!r abuses ( a privileg$ position4 7j7 ,safe h>bor = =w>d-,look+ /atem5ts ,9 any action aga9/ an ancill>y asset orig9ator or digital asset int]m$i>y aris+ "u ?is ,act t is bas$ on an untrue /atem5t ( a mat]ial fact or omission ( a mat]ial fact necess>y to make ! /atem5t n mislead+1 no liability %all arise ) respect to any =w>d-look+ /atem5t 7includ+ any /atem5t ( plans1 objectives1 projections1 expectations1 or assumptions conc]n+ future p]=mance1 f9ancial position1 developm5t mile/ones1 asset utility1 sy/em adoption1 or m>ket conditions7 made 9 an ancill>y asset disclosure1 /atem5t1 or o!r docum5t furni%$ pursuant to ?is section1 if ! /atem5t is-- 7#a7 id5tifi$ z =w>d-look+2 & 7#b7 accompani$ by mean+ful caution>y language t id5tifies important factors t c\ld cause actual results to diff] mat]ially4 7k7 ,transactions be=e effective date 7#a7 ,prim>y transactions ,not)/&+ any o!r provision ( law1 nei!r ! ,commission nor any private pla9tiff may initiate1 pursue1 or ma9ta9 any action1 or an appeal ( an action1 = a violation ( section #e or #ab7;a77#a7 ( ?is ,act aris+ f any (f]1 sale1 or di/ribution ( ancill>y assets occurr+ be=e ! effective date ( ! ,digital ,asset ,m>ket ,cl>ity ,act1 provid$ t ! ancill>y asset orig9ator or a c]tification cov]$ p>ty complies ) any applicable requirem5ts "u subsection 7c77#c74 7#b7 ,prim>y transactions relat$ to fraud ,no?+ 9 p>agraph 7#a7 %all limit ! ability ( ! ,commission to br+ an action bas$ on ! anti-fraud or anti-manipulation au?orities ( ! ,commission4 7#c7 ,second>y transactions ,not)/&+ any o!r provision ( law1 ! (f]1 sale1 or di/ribution ( a network tok5 by a p]son occurr+ be=e ! effective date ( ! ,digital ,asset ,m>ket ,cl>ity ,act %all be treat$ z n involv+ ! (f]1 sale1 or di/ribution ( a security "u-- 7,a7 section #b7;a77#a72 7,b7 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a772 7,c7 section #b7;a7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#b7;a772 7,d7 section #bjb7;a7 ( ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#b7;a772 7,e7 section #af ( ! ,securities ,inve/or ,protection ,act ( #aigj 7#ae ,u4,s4,c4 #ghlll72 or 7,f7 any applicable requirem5t ( ,/ate law t is functionally equival5t to ! provisions describ$ 9 subp>agraphs 7,a7 ?r\gh 7,e71 includ+ any provision ( ,/ate law t directly or indirectly prohibits1 limits1 or imposes any conditions on ! use1 (f]1 sale1 transf]1 or disposition ( a network tok5 9 a mann] t is-- 7i7 n sub/antially simil> to prohibitions1 limitations1 or conditions impos$ by t ,/ate relat+ to assets t are commodities "u ! laws ( t ,/ate2 & 7ii7 inconsi/5t ) ?is section4 7#d7 ,no inf]5ce ( liability ,no?+ 9 p>agraph 7#a71 7#b71 or 7#c7 may be con/ru$ z an admission1 ackn[l$gm5t1 or inf]5ce ( liability = any act1 transaction1 or conduct occurr+ be=e ! effective date ( ! ,digital ,asset ,m>ket ,cl>ity ,act4 7#e7 ,rules ( con/ruction ,no?+ 9 ?is subsection may be con/ru$ to-- 7,a7 impair ve/$ rights or contractual obligations lawfully e/abli%$ be=e ! effective date ( ! ,digital ,asset ,m>ket ,cl>ity ,act2 or 7,b7 limit ! au?ority ( ! ,commission to br+ an action aga9/ an ancill>y asset orig9ator or a relat$ p]son = securities fraud or manipulation 9 connection ) a /atem5t1 a disclosure1 or conduct by t ancill>y asset orig9ator or relat$ p]son1 except t ! ,commission may n ex]cise t au?ority to treat a network tok5 z a security or regulate second>y m>ket trad+4 7l7 ,rules ( con/ruction ,no?+ 9 ?is section may be con/ru$ to-- 7#a7 preclude ! ,commission f br++ an appropriate action or ent]+ into a settlem5t agreem5t relat+ to a violation or alleg$ violation ( ?is section2 7#b7 p]mit compliance ) ?is section to be us$ 9 any adm9i/rative or judicial proce$+ z evid5ce t an ancill>y asset is a security2 7#c7 prohibit ! (f]1 sale1 or di/ribution ( a digital asset 9 reliance on an exemption f regi/ration "u ?is ,act1 o!r ?an ,regulation ,crypto 7z adopt$ pursuant to section #ajc ( ! ,lummis-,gillibr& ,responsible ,f9ancial ,innovation ,act ( #bjbf72 or 7#d7 require m ?an #a p]son to furni% ! disclosures requir$ "u subsection 7d71 unless o!rwise provid$ by ! ,commission by rule4 7m7 ,anti-,evasion 7#a7 ,anti-evasion ,! ,commission may issue su* regulations z ! ,commission consid]s necess>y or appropriate 9 ! public int]e/ or = ! protection ( inve/ors to adm9i/] & prev5t willful evasion (-- 7,a7 ?is section2 7,b7 sections #ajc & #ajd ( ! ,lummis-,gillibr& ,responsible ,f9ancial ,innovation ,act ( #bjbf2 & 7,c7 ) respect to an ancill>y asset orig9ator & relat$ p]sons1 ! securities laws am5d$ by ! ,lummis-,gillibr& ,responsible ,f9ancial ,innovation ,act ( #bjbf4 7#b7 ,consid]ations ,9 adopt+ rules "u ?is section-- 7,a7 ! =m1 label1 & writt5 docum5tation ( an agreem5t1 contract1 or transaction1 or an entity1 %all n be dispositive 9 det]m9+ :e!r ! agreem5t1 contract1 or transaction1 or ! entity1 has be5 ent]$ into or /ructur$ to willfully evade ! requirem5ts ( ?is section2 7,b7 ! ,commission may consid] :e!r1 bas$ on ! totality ( facts & circum/ances1 ! pr9cipal purpose ( any arrangem5t1 allocation ( rights1 int]position ( entities1 or sequ5c+ ( /eps is to willfully circumv5t ! requirem5ts ( ?is section or ! re/rictions set =? 9 section #ajd ( ! ,lummis-,gillibr& ,responsible ,f9ancial ,innovation ,act ( #bjbf1 by satisfy+ ! lit]al t]ms :ile defeat+ ! purpose & policy ( ?is section2 7,c7 = purposes ( subp>agraph 7,b71 factors t may be consid]$1 )\t be+ dispositive1 9 det]m9+ :e!r a pr9cipal purpose to willfully circumv5t ?is section exi/s may include-- 7i7 removal ( a disqualify+ f9ancial "r describ$ 9 subsection 7a77#g77;,b7 f ! in/rum5t c\pl$ ) its re-introduction ?r\gh a sub/antially equival5t "r held by a relat$ p]son or controll$ vehicle1 includ+1 by way ( example1 any nom9ally indep5d5t f\ndation1 dec5traliz$ autonom\s organization1 laboratory1 or simil> arrangem5t2 7ii7 circul> or non-comm]cial fl[s ( value among relat$ p]sons design$ to simulate network utility2 & 7iii7 tim+ ( /eps design$ to trigg]1 accel]ate1 or delay c]tification or t]m9ation ( disclosure obligations )\t a mat]ial *ange 9 circum/ances relat+ to ! asset2 & 7,d7 ! ,commission %all provide t evasion %all n h occurr$ if an agreem5t1 contract1 or transaction is ent]$ into = a legitimate bus9ess purpose & is n /ructur$ ) a pr9cipal purpose ( willfully circumv5t+ ! requirem5ts ( ?is section4 7n7 ,fiduci>y obligations 7#a7 ,fiduci>y duties "u ,/ate law ,no?+ 9 ?is section1 or 9 any rule issu$ "u ?is section1 may be con/ru$ to limit1 preempt1 or o!rwise affect any fiduci>y duty ( an ancill>y asset orig9ator1 or ( any director1 (fic]1 or controll+ p]son ( an ancill>y asset orig9ator1 aris+ "u ! laws ( any ,/ate4 7#b7 ,pres]vation ( fiduci>y & o!r duties to cu/om]s1 cli5ts1 & %>ehold]s ,no?+ 9 ?is section1 or 9 any rule issu$ "u ?is section1 may be con/ru$ to limit1 preempt1 or o!rwise affect any fiduci>y duty t any p]son owes to a cu/om]1 cli5t1 or %>ehold] "u any o!r provision ( ,f$]al or ,/ate law1 includ+ 9 connection ) ! (f]1 sale1 transf]1 di/ribution1 or cu/ody ( an ancill>y asset4 7o7 ,sav+s clause ,except z provid$ by ! ,digital ,asset ,m>ket ,cl>ity ,act & ! am5dm5ts made by t ,act1 no?+ 9 ?is section may be con/ru$ to limit ! au?ority ( ! ,commission "u ! securities laws4 4 7b7 ,rulemak+ ,n lat] ?an #cfj days aft] ! date ( enactm5t ( ?is ,act1 ! ,commission %all conduct a notice & comm5t rulemak+ z necess>y or appropriate to c>ry out section #d;,b ( ! ,securities ,act ( #aicc1 z add$ by subsection 7a74 #ajc4 ,exemption & rulemak+ = c]ta9 transactions involv+ ancill>y assets 7a7 ,adoption ( ,regulation ,crypto ,! ,commission %all adopt rules "u ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;a et seq47 & ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq471 :i* %all be ref]r$ to collectively z ,regulation ,crypto1 to implem5t subsections 7b71 7c71 & 7d7 ( ?is section4 7b7 ,exemption = c]ta9 transactions involv+ ancill>y assets 7#a7 ,exemption 7,a7 ,9 g5]al ,rules adopt$ by ! ,commission "u ?is section %all provide t ! regi/ration requirem5ts ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;a et seq47 %all n apply to an (f]1 sale1 or di/ribution ( an inve/m5t contract involv+ an ancill>y asset1 if ! (f]1 sale1 or di/ribution does n exce$ ! great] (-- 7i7 #ej1jjj1jjj 9 gross proce$s p] cal5d> ye> = a p]iod ( n long] ?an #d ye>s2 or 7ii7 #aj p]c5t ( ! total doll> value ( ^? ancill>y assets t are out/&+1 z ( ! date ( t (f]1 sale1 or di/ribution4 7,b7 ,cont9u$ application ( c]ta9 provisions ,sections #ab7;a77#b7 & #ag ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #ggl7a77#b71 #ggq7 %all apply ) respect to an (f]1 sale1 or di/ribution ( an inve/m5t contract involv+ an ancill>y asset t is describ$ 9 subp>agraph 7,a74 7#b7 ,limitation ,an ancill>y asset orig9ator may n raise m ?an #bjj1jjj1jjj 9 total gross proce$s 9 reliance on ! rules adopt$ "u subsection 7a74 7#c7 ,review & adju/m5t = inflation 7,a7 ,9 g5]al ,n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act1 & e #b ye>s !reaft]1 ! ,commission %all-- 7i7 review ! am\nts describ$ 9 p>agraphs 7#a77;,a77i7 & 7#b72 7ii7 adju/ ! am\nts describ$ 9 p>agraphs 7#a77;,a77i7 & 7#b7 to acc\nt = inflation2 & 7iii7 increase ! am\nts describ$ 9 p>agraphs 7#a77;,a77i7 & 7#b7 z ! ,commission det]m9es appropriate1 if t action w\ld be 9 ! public int]e/ & consi/5t ) ! protection ( inve/ors4 7,b7 ,report ,if ! ,commission1 aft] conduct+ a review "u subp>agraph 7,a71 det]m9es n to increase ! am\nt describ$ 9 p>agraph 7#a77;,a77i7 or 7#b7 7o!r ?an to adju/ t am\nt = inflation1 z requir$ "u subp>agraph 7,a77ii7 ( ?is p>agraph71 ! ,commission %all submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives a report detail+ ! reasons t ! ,commission did n increase t am\nt4 7c7 ,conditions = exemption ,! foll[+ conditions %all apply to ! exemption provid$ "u subsection 7b73 7#a7 ,initial disclosures ,n lat] ?an #cj days be=e ! date on :i* ! applicable ancill>y asset orig9ator1 any affiliate ( ! ancill>y asset orig9ator1 or any und]writ] ( an inve/m5t contract1 (f]s1 sells1 or di/ributes an ancill>y asset 9 reliance on ! rules adopt$ "u subsection 7a71 ! ancill>y asset orig9ator %all furni% to ! ,commission ! disclosures requir$ "u section #d;,b7d7 ( ! ,securities ,act ( #aicc1 z add$ by ?is ,act1 subject to ! p]iodic semiannual disclosure requirem5ts ( t section4 7#b7 ,coord9at$ control ,if ! applicable ancill>y asset is reliant on a di/ribut$ l$g] sy/em t1 toge!r ) t ancill>y asset1 is subject to coord9at$ control1 includ+ by relat$ p]sons1 ! re/rictions on disposition "u section #ajd %all apply4 7#c7 ,crit]ia ,! applicable ancill>y asset orig9ator may n be-- 7,a7 a company t is n organiz$ "u1 & subject to1 ! laws ( a ,/ate or t]ritory ( ! ,unit$ ,/ates or ! ,di/rict ( ,columbia2 7,b7 a developm5t-/age company t ei!r-- 7i7 has no specific bus9ess plan or purpose2 or 7ii7 has indicat$ t ! bus9ess plan ( ! company is to m]ge ) or acquire an unid5tifi$ company2 7,c7 an inve/m5t company 7z def9$ 9 section #c7;a7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#c7;a777 or a company 7z def9$ 9 section #b ( t ,act 7#ae ,u4,s4,c4 #hj;a-#b77 t w\ld be an inve/m5t company "u section #c7;a7 ( t ,act 7#ae ,u4,s4,c4 #hj;a-#c7;a77 b = ! exclusions provid$ f t def9ition by section #c7;c7 ( t ,act 7#ae ,u4,s4,c4 #hj;a-#c7;c771 provid$ t1 solely = ! purposes ( evaluat+ eligibility to rely on ! exemption provid$ "u subsection 7b71 an ancill>y asset orig9ator %all n be deem$ to be an inve/m5t company solely by virtue ( inve/+1 re9ve/+1 own+1 hold+1 or trad+ ancill>y assets1 includ+ ancill>y assets (f]$ = sale by ! ancill>y asset orig9ator2 7,d7 a p]son issu+ fractional undivid$ int]e/s 9 o!r commodities2 7,e7 a p]son t is or has be5 subject to any ord] ( ! ,commission ent]$ pursuant to section #ab7;j7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #ghl7j77 aft] ! date ( enactm5t ( ?is ,act & dur+ ! #e-ye> p]iod prec$+ ! (f] & sale2 7,f7 a p]son t is or has be5 disqualifi$ pursuant to section #bcj4ejf7;d7 ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulation1 unless waiv$ by ord] ( ! ,commission2 7,g7 a p]son t is or has be5 disqualifi$ pursuant to section #bcj4bea ?r\gh #bcj4bfc ( title #ag1 ,code ( ,f$]al ,regulations 7commonly ref]r$ to z ,regulation ,a71 or any successor regulations1 unless waiv$ by ord] ( ! ,commission2 or 7,h7 a p]son convict$ ( a felony (f5se involv+ insid] trad+1 embezzlem5t1 cyb]crime1 money laund]+1 f9anc+ ( t]rorism1 or f9ancial fraud1 )9 ! la/ #aj ye>s4 7#d7 ,furni%+ notice ( reliance ,! applicable ancill>y asset orig9ator %all electronically furni% to ! ,commission a notice ( reliance on ! rules adopt$ "u subsection 7a7 n few] ?an #cj days be=e ! date on :i* ! ancill>y asset orig9ator fir/ (f]s1 sells1 or di/ributes an ancill>y asset 9 reliance on ^? rules1 :i* %all conta9 ! foll[+ in=mation3 7,a7 ,! "n ( ! ancill>y asset orig9ator4 7,b7 ,a /atem5t by a p]son duly au?oriz$ by ! ancill>y asset orig9ator t ! conditions ( ^? rules are satisfi$4 7,c7 ,! website :]e ! summ>y docum5ts ( ! ancill>y asset orig9ator1 if any1 may be f\nd & made available = public consumption4 7,d7 ,an email address at :i* ! ancill>y asset orig9ator may be contact$4 7#e7 ,public availability ,! ,commission %all require t ! disclosures furni%$ to ! ,commission "u section #d;,b7d7 ( ! ,securities ,act ( #aicc1 z add$ by ?is ,act1 be made publicly available 9 a mann] t provides timely & cont9u+ access4 7#f7 ,=m & mann] ,! disclosures furni%$ to ! ,commission "u section #d;,b7d7 ( ! ,securities ,act ( #aicc1 z add$ by ?is ,act1 %all be prep>$1 furni%$1 & made public 9 ! =m & mann] prescrib$ by ! ,commission1 includ+ ?r\gh ! use ( electronic furni%+1 web po/+1 ma*9e-readable =mats1 & pla9-,engli% leg5ds1 z ! ,commission det]m9es necess>y or appropriate 9 ! public int]e/ or = ! protection ( inve/ors4 7d7 ,/atus "u securities laws 7#a7 ,9 g5]al ,a disclosure furni%$ "u section #d;,b ( ! ,securities ,act ( #aicc1 z add$ by ?is ,act1 includ+ an initial or p]iodic disclosure furni%$ "u subsection 7d7 ( su* section #d;,b1 & any o!r docum5t furni%$ "u ! rules adopt$ "u subsection 7a7 ( ?is section1 %all be deem$ to be-- 7,a7 a prospectus solely-- 7i7 = purposes ( section #ab7;a77#b7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #ggl7a77#b772 & 7ii7 ) respect to ! p]son t is ! pur*as+ p>ty 9 a transaction made 9 reliance on ! rules adopt$ "u subsection 7a72 & 7,b7 a /atem5t solely = purposes (-- 7i7 section #ag7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #ggq7a772 7ii7 section #aj7;b7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;j7b772 & 7iii7 section #bdj4aj;b-#e ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulation4 7#b7 ,regi/ration /atem5t 7,a7 ,9 g5]al ,a disclosure furni%$ "u section #d;,b ( ! ,securities ,act ( #aicc1 z add$ by ?is ,act1 includ+ an initial or p]iodic disclosure furni%$ "u subsection 7d7 ( su* section #d;,b1 or any o!r docum5t furni%$ pursuant to ! rules adopt$ "u subsection 7a71 %all n be deem$ to be a regi/ration /atem5t = purposes ( section #aa ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #ggk7 or to h be5 fil$ "u ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq474 7,b7 ,civil liability ,liability "u section #ab7;a77#b7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #ggl7a77#b77 relat+ to a disclosure furni%$ "u section #d;,b ( ! ,securities ,act ( #aicc1 z add$ by ?is ,act1 includ+ an initial or p]iodic disclosure furni%$ "u subsection 7d7 ( su* section #d;,b1 or any o!r docum5t furni%$ pursuant to ! rules adopt$ "u subsection 7a71 %all only apply to ! p]son mak+ /atem5ts 9 t disclosure or o!r docum5t1 & only a p]son t pur*as$ an ancill>y asset 9 a transaction involv+ disclosures provid$ pursuant to ! rules adopt$ "u subsection 7a7 %all h a claim "u su* section #ab7;a77#b74 7#c7 ,=w>d-look+ /atem5ts ,9 any action aga9/ an ancill>y asset orig9ator "u ?is title or ! am5dm5ts made by ?is title t is bas$ on an untrue /atem5t ( a mat]ial fact or omission ( a mat]ial fact necess>y to make ! /atem5t n mislead+1 no liability %all arise ) respect to any =w>d-look+ /atem5t 7includ+ a /atem5t ( plans1 objectives1 projections1 expectations1 or assumptions conc]n+ future p]=mance1 f9ancial position1 developm5t mile/ones1 digital asset utility1 sy/em adoption1 or m>ket conditions7 made 9 a disclosure1 /atem5t1 or o!r docum5t furni%$ pursuant to section #d;,b ( ! ,securities ,act ( #aicc1 z add$ by ?is ,act1 includ+ an initial or p]iodic disclosure furni%$ "u subsection 7d7 ( su* section #d;,b1 or furni%$ "u ?is section1 if ! /atem5t is-- 7,a7 id5tifi$ z =w>d-look+2 & 7,b7 accompani$ by mean+ful caution>y language t id5tifies important factors t c\ld cause actual results to diff] mat]ially4 #ajd4 ,special disposition re/rictions by relat$ p]sons 7a7 ,def9itions ,9 ?is section3 7#a7 ,c]tification cov]$ p>ty ,! t]m c]tification cov]$ p>ty means1 ) respect to an ancill>y asset-- 7,a7 ! ancill>y asset orig9ator2 7,b7 a subsidi>y ( ! ancill>y asset orig9ator2 7,c7 a relat$ p]son ( ! ancill>y asset orig9ator2 or 7,d7 any entity t directly or indirectly controls or is controll$ by a common entity ) an ancill>y asset orig9ator4 7#b7 ,cov]$ tok5 ,! t]m cov]$ tok5 means any unit ( an ancill>y asset t 0 acquir$ f ! ancill>y asset orig9ator ) respect to t ancill>y asset or an ag5t or und]writ] !re(4 7#c7 ,di/ribut$ l$g] control p]son ,! t]m di/ribut$ l$g] control p]son means1 ) respect to a di/ribut$ l$g] sy/em1 any p]son or gr\p ( p]sons "u common control1 o!r ?an a dec5traliz$ gov]nance sy/em1 t 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 ( ! di/ribut$ l$g] sy/em or a relat$ ancill>y asset4 7b7 ,coord9at$ control 7#a7 ,9 g5]al ,! ,commission %all adopt rules1 bas$ on ! crit]ia describ$ 9 p>agraph 7#b71 to def9e ! circum/ances "u :i* a di/ribut$ l$g] sy/em1 toge!r ) a relat$ ancill>y asset1 is consid]$ to be "u coord9at$ control4 7#b7 ,consid]ations ,9 adopt+ rules "u p>agraph 7#a71 ! ,commission %all consid] ! foll[+ crit]ia z indicia t a di/ribut$ l$g] sy/em describ$ 9 t p>agraph1 toge!r ) ! relat$ ancill>y asset1 is consid]$ to be "u coord9at$ control3 7,a7 ,op5 digital sy/em ,! ext5t to :i* ! di/ribut$ l$g] sy/em is n-- 7i7 a di/ribut$ l$g]1 ! protocol ( :i* is freely & publicly available2 7ii7 a di/ribut$ l$g] application ! s\rce code ( :i* is-- 7,i7 freely & publicly available via op5-s\rce code2 & 7,,ii7 record$ on a di/ribut$ l$g] describ$ 9 clause 7i72 or 7iii7 an analogue to a di/ribut$ l$g] or di/ribut$ l$g] application describ$ 9 clause 7i7 or 7ii71 z det]m9$ by ! ,commission by rule or ord]4 7,b7 ,p]missionless & cr$ibly neutral digital sy/em ,! ext5t to :i* a p]son or gr\p ( p]sons "u common control has-- 7i7 ! unilat]al au?ority1 via op]ation ( ! di/ribut$ l$g] sy/em1 to re/rict1 c5sor1 or prohibit use ( ! di/ribut$ l$g] sy/em1 includ+ any applicable sy/em-bas$ us] activity2 or 7ii7 private p]missions1 h>d-cod$ privileges1 or simil> capabilities grant$ by ! s\rce code ( ! di/ribut$ l$g] sy/em t provides pref]5tial treatm5t comp>$ to o!r simil>ly situat$ p]sons4 7,c7 ,di/ribut$ digital network ,! ext5t to :i* a p]son or gr\p ( p]sons "u common control has b5eficial own]%ip (1 9 ! aggregate1 m ?an #di p]c5t ( ! total am\nt ( out/&+ units ( ! ancill>y asset or vot+ p[] ) respect to any gov]nance sy/em t relates to ! di/ribut$ l$g] sy/em4 7,d7 ,autonom\s di/ribut$ l$g] sy/em ,! ext5t to :i*-- 7i7 ! di/ribut$ l$g] sy/em has n yet rea*$ an autonom\s /ate2 & 7ii7 a p]son or gr\p ( p]sons "u common control has ! unilat]al au?ority1 directly or indirectly1 to alt] or *ange ! functionality1 op]ation1 or rules ( cons5sus or agreem5t ( ! di/ribut$ l$g] sy/em4 7,e7 ,economic indep5d5ce ,! ext5t to :i* ! prim>y programmatic me*anisms ( ! di/ribut$ l$g] sy/em t are int5d$ to facilitate sub/antial value accrual to ! ancill>y asset ?r\gh ! function+ ( ! di/ribut$ l$g] sy/em are n yet functional4 7#c7 ,safe h>bors 7,a7 ,9 g5]al ,! ,commission %all e/abli% safe h>bors "u :i* a di/ribut$ l$g] sy/em1 toge!r ) a relat$ ancill>y asset1 w n be consid]$ to be "u coord9at$ control = ! purposes ( section #ajc7;c77#b74 7,b7 ,dec5traliz$ gov]nance sy/ems 7i7 ,9 g5]al ,= ! purposes ( ?is section1 a dec5traliz$ gov]nance sy/em %all n be consid]$ to be a p]son or a gr\p ( p]sons "u common control4 7ii7 ,di/ribut$ l$g] sy/ems ,= ! purposes ( ?is section1 a di/ribut$ l$g] sy/em1 toge!r ) any relat$ ancill>y asset1 %all n be preclud$ f be+ consid]$ to n be "u coord9at$ control 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 ( t 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 7,c7 ,em]g5cy measures ,= ! purposes ( ?is section1 a pre-def9$1 tempor>y1 rules-bas$ cyb]security em]g5cy measure t is ex]cis$ by an incid5t response or security c\ncil exclusively 9 response to a specific & docum5t$ cyb]security incid5t or imm95t ?reat pursuant to publicly disclos$1 on-*a9 au?orization me*anisms1 t is /rictly limit$ 9 scope & duration solely to address t cyb]security incid5t or imm95t ?reat1 & t is ex]cis$ )\t unilat]al control by any s+le p]son1 %all n alone con/itute common control or an agreem5t to "w 9 conc]t1 if ^? rules & me*anisms1 includ+ ! proc$ures & op]ational limits gov]n+ ! em]g5cy measure1 are disclos$ 9 publicly available writt5 docum5tation reasonably available to ! applicable ,f$]al ag5cy by a dec5traliz$ autonom\s organization or simil> legal entity suffici5tly 9 advance ( any ex]cise ( ! em]g5cy measure4 7,d7 ,nonexclusive ,! safe h>bors e/abli%$ "u subp>agraphs 7,a71 7,b71 & 7,c7 %all n be exclusive & ! ,commission %all consid] su* o!r circum/ances z ! ,commission f9ds 9 ! public int]e/ or = ! protection ( inve/ors4 7#d7 ,evid5ce ,! ,commission may1 9 adopt+ rules "u ?is subsection1 require su* c]tifications1 ?ird p>ty v]ifications1 or o!r evid5ce z ! ,commission det]m9es necess>y or appropriate to det]m9e :e!r a di/ribut$ l$g] sy/em is "u coord9at$ control = ! purposes ( section #ajc7;c77#b74 7#e7 ,rule ( con/ruction ,= purposes ( ?is subsection-- 7,a7 ! exi/5ce or t]m9ation ( coord9at$ control %all be det]m9$ indep5d5tly ( :e!r entrepr5eurial or manag]ial ef=ts describ$ 9 section #d;,b ( ! ,securities ,act ( #aicc1 z add$ by ?is ,act1 h be5 complet$2 & 7,b7 ! elim9ation ( coord9at$ control %all be a pr]equisite to ! completion ( ef=ts describ$ 9 subp>agraph 7,a74 7c7 ,special re/rictions on disposition ,! ,commission %all adopt rules t provide t1 ) respect to transactions involv+ an ancill>y asset = :i* disclosures are requir$ pursuant to section #d;,b7d7 ( ! ,securities ,act ( #aicc1 z add$ by ?is ,act1 :5 a sale ( t ancill>y asset is made by a relat$ p]son1 ! foll[+ re/rictions on t sale %all apply3 7#a7 ,sales prior to c]tification ,if ! cov]$ tok5 0 acquir$ aft] ! effective date ( ?is ,act & pr9cipally relies on a di/ribut$ l$g] sy/em1 ! cov]$ tok5 may be sold by a relat$ p]son be=e t di/ribut$ l$g] sy/em is c]tifi$ z n subject to coord9at$ control1 pursuant to subsection 7d71 if-- 7,a7 ) respect to t di/ribut$ l$g] sy/em1 ! disclosures requir$ pursuant to section #d;,b7d7 ( ! ,securities ,act ( #aicc1 z add$ by ?is ,act1 h be5 furni%$2 7,b7 ! hold] ( ! cov]$ tok5 has held ! units = n less ?an #ab mon?s2 & 7,c7 ! am\nt ( cov]$ tok5s sold 9 any #ab-mon? p]iod by ! relat$ p]son is-- 7i7 n great] ?an an am\nt to be det]m9$ by ! ,commission pursuant to notice & comm5t rulemak+ n lat] ?an #cfj days aft] ! date ( enactm5t ( ?is ,act1 :i* rulemak+ %all consid] :at is necess>y or appropriate 9 ! public int]e/1 includ+1 among o!r ?+s1 ! protection ( inve/ors1 :e!r ! action w promote effici5cy1 competition1 & capital =mation1 & h[ to fo/] ! developm5t ( di/ribut$ l$g] sy/ems t are n subject to coord9at$ control2 & 7ii7 9 no case equal to or great] ?an ! am\nt det]m9$ by ! ,commission pursuant to ! rulemak+ describ$ 9 p>agraph 7#b77;,c74 7#b7 ,sales aft] c]tification ,if ! cov]$ tok5 0 acquir$ aft] ! effective date ( ?is ,act & pr9cipally relies on a di/ribut$ l$g] sy/em t is c]tifi$ z n subject to coord9at$ control pursuant to subsection 7d71 ! cov]$ tok5 may be sold by a relat$ p]son1 if-- 7,a7 ) respect to t di/ribut$ l$g] sy/em1 ! disclosures requir$ pursuant to section #d;,b7d7 ( ! ,securities ,act ( #aicc1 z add$ by ?is ,act1 h be5 furni%$2 7,b7 ! hold] ( ! cov]$ tok5 has held ! units = n less ?an #f mon?s2 & 7,c7 ! am\nt ( cov]$ tok5s sold 9 any #ab-mon? p]iod by ! relat$ p]son is n great] ?an an am\nt to be det]m9$ by ! ,commission pursuant to rulemak+ t %all n be less ?an #aj p]c5t ( ! total am\nt ( out/&+ units ( su* ancill>y assets4 7#c7 ,sales ( pre-exi/+ cov]$ tok5s ,if ! cov]$ tok5 0 acquir$ be=e ! effective date ( ?is ,act & pr9cipally relies on a di/ribut$ l$g] sy/em1 ! cov]$ tok5 may be sold by a relat$ p]son if-- 7,a7 9 ! case t ! di/ribut$ l$g] sy/em has n be5 c]tifi$ z n subject to coord9at$ control pursuant to subsection 7d7-- 7i7 ! disclosures requir$ pursuant to section #d;,b7d7 ( ! ,securities ,act ( #aicc1 z add$ by ?is ,act1 h be5 furni%$2 & 7ii7 ! hold] ( ! cov]$ tok5 has held ! units = n less ?an #ab mon?s2 & 7,b7 9 ! case t ! di/ribut$ l$g] sy/em has be5 c]tifi$ z n subject to coord9at$ control pursuant to subsection 7d71 ! hold] ( ! cov]$ tok5 has held ! units = n less ?an #f mon?s4 7#d7 ,limitations on transactions by di/ribut$ l$g] control p]sons ,if ! hold] ( an ancill>y asset t pr9cipally relies on a di/ribut$ l$g] sy/em t has be5 c]tifi$ z n subject to coord9at$ control is a di/ribut$ l$g] control p]son ) respect to t di/ribut$ l$g] sy/em1 t control p]son may resell t ancill>y asset if-- 7,a7 t control p]son furni%es notice to ! ,commission1 9 a =m & mann] det]m9$ by ! ,commission1 t ! p]son has or int5ds to obta9 an au?ority describ$ 9 subp>agraph 7,b7 ) respect to ! di/ribut$ l$g] sy/em2 7,b7 t di/ribut$ l$g] control p]son furni%es disclosures to ! ,commission1 9 a =m & mann] det]m9$ by ! ,commission1 describ+ ! mat]ial activities1 z det]m9$ by ! ,commission1 ( ! control p]son2 7,c7 ) respect to t di/ribut$ l$g] sy/em1 disclosures h be5 furni%$ pursuant to section #d;,b7d7 ( ! ,securities ,act ( #aicc1 z add$ by ?is ,act2 & 7,d7 t control p]son has satisfi$ su* o!r requirem5ts applicable to t control p]son t may be e/abli%$ by ! ,commission to prev5t manipulation or di/ortion ( ! value ( ! ancill>y asset1 includ+ resale re/rictions consi/5t ) ^? appli$ to relat$ p]sons t are n control p]sons4 7d7 ,c]tification ( non-,control by relat$ p]sons 7#a7 ,submission ,) respect to an ancill>y asset1 a c]tification cov]$ p>ty may furni% to ! ,commission a writt5 c]tification1 9 su* =m & mann] z ! ,commission may specify by rule consi/5t ) subsection 7b71 /at+ t ! di/ribut$ l$g] sy/em is n "u coord9at$ control4 7#b7 ,automatic effectiv5ess ,a c]tification furni%$ "u p>agraph 7#a7 %all become effective1 & ! di/ribut$ l$g] sy/em %all be deem$ n to be "u coord9at$ control1 on ! date t is ! e>li] (-- 7,a7 ! date on :i* ! ,commission notifies ! c]tification cov]$ p>ty 9 writ+ t ! ,commission does n object to ! c]tification2 or 7,b7 if ! ,commission has n d5i$ ! c]tification "u p>agraph 7#c71 ! date t is #ij days aft] ! date on :i* ! c]tification is furni%$1 or su* %ort] p]iod z ! ,commission may det]m9e by rule4 7#c7 ,d5ial 7,a7 ,9 g5]al ,! ,commission may d5y a c]tification furni%$ "u p>agraph 7#a7-- 7i7 only dur+ ! #ij-;day p]iod beg9n+ on ! date on :i* ! c]tification is furni%$1 or su* %ort] p]iod z ! ,commission may det]m9e by rule1 or ^u det]m9+1 bas$ on reasonable evid5ce1 t a mat]ial *ange 9 circum/ances has occurr$ aft] ! furni%+ ( ! c]tification2 & 7ii7 by provid+ to ! c]tification cov]$ p>ty #aj days notice ( ! int5t ( ! ,commission to d5y t c]tification4 7,b7 ,requirem5ts aft] notice ( int5t ,aft] ! #aj-;day p]iod describ$ 9 subp>agraph 7,a77ii71 ! ,commission %all-- 7i7 conduct a he>+2 & 7ii7 vote to d5y ! c]tification if !re is a f9d+ t ! applicable ancill>y asset does n meet ! /&>d = c]tification t ! op]ations ( ! di/ribut$ l$g] sy/em are n "u su* coord9at$ control4 7,c7 ,f9al ag5cy action ,d5ial "u ?is p>agraph con/itutes f9al ag5cy action reviewable "u applicable law4 7#d7 ,v]ification ,! ,commission may1 by rule1 require appropriate ?ird-p>ty v]ification ( a c]tification furni%$ "u p>agraph 7#a74 7e7 ,disgorgem5t 7#a7 ,9 g5]al ,any pr(it realiz$ by a relat$ p]son f ! sale ( an ancill>y asset 9 violation ( ! re/rictions "u subsection 7c7 %all inure to1 & be recov]able by1 ! hold]s ( ! ancill>y asset1 irrespective ( any int5tion ( hold+ ! asset4 7#b7 ,en=cem5t ,an action to recov] pr(it describ$ 9 p>agraph 7#a7-- 7,a7 may be in/itut$ at law or 9 equity 9 any c\rt ( compet5t jurisdiction ( ! ,unit$ ,/ates by-- 7i7 ! applicable ancill>y asset orig9ator2 7ii7 ! own] ( any units ( ! applicable ancill>y asset2 or 7iii7 ! own] ( any units ( ! applicable ancill>y asset1 9 ! "n & on behalf ( ! ancill>y asset orig9ator1 if ! ancill>y asset orig9ator-- 7,i7 fails or refuses to br+ ! action )9 #fj days aft] a writt5 reque/ by any own] ( n less ?an #e p]c5t ( ! total am\nt ( out/&+ units ( t ancill>y asset2 or 7,,ii7 fails to dilig5tly prosecute ! action2 & 7,b7 %all be br\ght n lat] ?an #b ye>s aft] ! date t pr(it 0 realiz$4 7f7 ,exemption f disposition re/rictions ,! ,commission %all adopt rules t provide = ! foll[+ exemptions f1 or waiv]s to1 disposition re/rictions describ$ 9 subsection 7c73 7#a7 ,mat]ial h>d%ip exemption 7,a7 ,9 g5]al ,subject to subp>agraph 7,b71 ! ,commission %all adopt rules & proc$ures to exempt p>ties f relat$ p]son re/rictions ) respect to an ancill>y asset :]e ^? re/rictions conflict ) an obligation or requirem5t aris+ f "o ( ! foll[+ mat]ial h>d%ips on a relat$ p]son ) respect to ! ancill>y asset or ! ancill>y asset orig9ator3 7i7 ,! dea? ( ! relat$ p]son4 7ii7 ,! bankruptcy or insolv5cy ( ! relat$ p]son4 7iii7 ,! dissolution1 m]g]1 or acquisition ( a corporate p]son4 7iv7 ,tax liability relat+ to ! receipt ( ! applicable ancill>y asset4 7v7 ,su* o!r mat]ial h>d%ips z may be designat$ by ! ,commission4 7,b7 ,requirem5ts ,! rules & proc$ures adopt$ "u subp>agraph 7,a7 %all be design$ to mitigate ! risk t p>ties may seek to /ructure hold+s to evade resale re/rictions & exempt or waive ! application ( resale re/rictions only to ! ext5t necess>y to address ! id5tifi$ mat]ial h>d%ip4 7#b7 ,liquidity provision exemption ,! ,commission %all adopt rules to exempt f disposition re/rictions p>ties buy+ or sell+ an ancill>y asset ?r\gh regul> two-sid$ bidd+ & (f]+ = ! purposes ( provid+ m>ket liquidity1 provid$ t su* activities are n und]tak5 = ! purpose ( evad+ ! requirem5ts ( ?is section4 7#c7 ,ag5cy exemption ,! ,commission %all adopt rules t exempt a p>ty act+ z a cu/odian1 trad+ plat=m1 brok]1 deal] or o!r ag5t f be+ treat$ z ! own] ( cu/om] or cli5t assets or f be+ re/rict$ 9 facilitat+ sales on behalf ( a cu/om] or cli5t if ! ag5t is o!rwise det]m9$ to be a relat$ p]son4 7#d7 ,ex*ange-trad$ product & passive fund exemption ,! ,commission %all adopt rules to exempt f disposition re/rictions1 z appropriate-- 7,a7 ex*ange-trad$ products1 ! %>es ( :i* are creat$ & r$eem$ by au?oriz$ p>ticipants & regi/]$ ) ! ,commission2 & 7,b7 passive pool$ inve/m5t vehicles1 :e!r or n ! %>es ( :i* are regi/]$ ) ! ,commission4 7g7 ,relat$ p]son disclosure requirem5ts ,! ,commission %all adopt rules t provide = report+ to ! ,commission c]ta9 in=mation ) respect to ancill>y asset hold+s or transactions relat+ to ancill>y assets by relat$ p]sons1 subject to ! disposition re/rictions provid$ 9 subsection 7c73 7#a7 ,disclosure reports 7,a7 ,disclosure ( relat$ p]son /atus ,any p]son1 or gr\p ( p]sons "u common control1 directly or indirectly1 t acquire b5eficial own]%ip ( #aj p]c5t or m ( ! total am\nt ( out/&+ units ( any su* ancill>y asset1 measur$ z ( ! end ( any cal5d> qu>t]1 %all furni% initial & cont9u+ reports z det]m9$ by ! ,commission4 7,b7 ,sales ( cov]$ tok5s by relat$ p]son prior to c]tification ( non-control ,qu>t]ly reports relat+ to ! numb] ( ancill>y assets sold by a relat$ p]son 9 a =m z requir$ by ! ,commission4 7,c7 ,sales ( cov]$ tok5s by relat$ p]son aft] c]tification ( non-control ,qu>t]ly reports relat+ to ! numb] ( ancill>y assets sold by a relat$ p]son t holds1 at any po9t dur+ ! applicable cal5d> qu>t]1 9 excess ( #e p]c5t ( ! total am\nt ( out/&+ units ( su* ancill>y asset 9 a =m z requir$ by ! ,commission4 7,d7 ,sales ( pre-exi/+ cov]$ tok5s by relat$ p]son ,qu>t]ly reports relat+ to ! numb] ( ancill>y assets sold by a relat$ p]son t holds 9 excess ( #e p]c5t ( ! total am\nt ( out/&+ units ( su* ancill>y asset 9 a =m z requir$ by ! ,commission4 7#b7 ,confid5tial treatm5t ,! ,commission may provide = confid5tial treatm5t ( in=mation provid$ "u ?is subsection1 or may exempt c]ta9 relat$ p]sons f ! requirem5t to furni% a report requir$ "u ?is subsection1 pursuant to proc$ures ! ,commission %all e/abli% & t are model$ on or id5tical to section #bcj4djf ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulation4 7#c7 ,good-fai? furni%+ /&>d 7,a7 ,9 g5]al ,any obligation to furni% in=mation "u ?is section applies only to ! furni%] act+ on its own behalf & is limit$ to in=mation t is mat]ial & kn[n1 or reasonably kn[able aft] due inquiry1 to t furni%]4 7,b7 ,reliance ,a furni%] describ$ 9 subp>agraph 7,a7 may reasonably rely on public s\rces & ?ird-p>ty atte/ations :]e appropriate4 7,c7 ,liability ,furni%+ 9 good fai? pursuant to ?is section %all n create liability = in=mation outside ! furni%]'s possession1 cu/ody1 or control1 or = omissions ( in=mation ! furni%] c\ld n reasonably obta9 )\t brea*+ legal privilege1 contractual confid5tiality1 or o!r applicable law4 7,d7 ,o!r p]sons ,any p]son o!r ?an ! furni%] may1 9 good fai? & abs5t k to ! contr>y1 presume t a report requir$ "u p>agraph 7#a7 has be5 timely furni%$4 7#d7 ,life cycle ev5t consid]ations ,! ,commission %all adopt rules e/abli%+ /reaml9$ processes = ! foll[+ life cycle ev5ts3 7,a7 ,successor disclosures 9 corporate transactions ,! transf] ( disclosure obligations "u ?is section to a successor entity 9 ! ev5t ( a m]g]1 acquisition1 or sale ( sub/antially all assets relat+ to ! ancill>y asset activities1 includ+ a notice ( succession4 7,b7 ,cessation ( "w ,! cessation or susp5sion ( ongo+ disclosure obligations "u ?is section :]e ! ancill>y asset orig9ator or relat$ p]son no long] engages1 & does n reasonably expect to engage1 9 entrepr5eurial or manag]ial ef=ts ) respect to ! ancill>y asset or its associat$ di/ribut$ l$g] sy/em1 includ+ a notice ( cessation ( "w4 7,c7 ,contractual t]m9ation ,! t]m9ation ( disclosure obligations "u ?is section t atta* solely by virtue ( a p]son's /atus z a relat$ p]son :5 a contractual arrangem5t ) ! ancill>y asset orig9ator or di/ribut$ l$g] sy/em has conclud$1 includ+ a notice ( cessation ( contractual relation%ip4 7h7 ,rule ( con/ruction ,no?+ 9 ?is section may be con/ru$ to-- 7#a7 limit or impair ! anti-fraud or anti-manipulation au?orities ( ! ,commission2 or 7#b7 preclude reliance on ,regulation ,crypto1 z adopt$ "u section #ajc1 or any o!r effective regi/ration /atem5t or exemption f regi/ration "u ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;a et seq471 z am5d$ by ?is ,act4 #aje4 ,*>act]i/ics ( network tok5s 7a7 ,9 g5]al ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,commission %all adopt rules t provide t-- 7#a7 a network tok5 %all n be consid]$ z provid+ a disqualify+ f9ancial "r "u section #d;,b7a77#g77;,b7 ( ! ,securities ,act ( #aicc1 z add$ by ?is ,act1 if ! m>ket value ( ! network tok5 is prim>ily d]iv$1 or is reasonably expect$ to be prim>ily d]iv$1 f a di/ribut$ l$g] sy/em or f ! broad] adoption & use ( su* a sy/em1 includ+ :]e-- 7,a7 ! me*anisms ( ! di/ribut$ l$g] sy/em collect1 receive1 accrue1 or di/ribute consid]ation f ! function+ ( ! di/ribut$ l$g] sy/em2 7,b7 ! network tok5 provides gov]nance capabilities ) respect to a di/ribut$ l$g] sy/em or a dec5traliz$ gov]nance sy/em2 7,c7 ! value ( ! network tok5 appreciates or depreciates due to ! use (1 or 9 response to ! ef=ts1 op]ations1 or f9ancial p]=mance (1 ! di/ribut$ l$g] sy/em to :i* ! network tok5 relates or its dec5traliz$ gov]nance sy/em2 or 7,d7 = a network tok5 t meets ! def9ition ( an ancill>y asset1 ! value ( ! network tok5 appreciates or depreciates due to ! ef=ts ( ! ancill>y asset orig9ator or relat$ p]son2 & 7#b7 p>ticipants 9 (f]s or sales ( network tok5s provid+ f9ancial int]e/s describ$ 9 p>agraph 7#a7 %all n be preclud$ f rely+ on ! exemption f regi/ration "u section #d;,b7b7 ( ! ,securities ,act ( #aicc1 z add$ by ?is ,act4 7b7 ,effect ( rul+s & actions be=e date ( enactm5t 7#a7 ,9 g5]al ,if1 be=e ! date ( enactm5t ( ?is ,act1 a c\rt ( ! ,unit$ ,/ates1 9 a non-appealable f9al judgm5t1 f\nd t a digital asset transaction 0 n an (f]1 sale1 or di/ribution ( a security1 a digital asset transf]r$ pursuant to t (f]1 sale1 or di/ribution %all n be consid]$ to be a security "u any provision ( law describ$ 9 subsection 7b77#b7 ( section #d;,b ( ! ,securities ,act ( #aicc1 z add$ by ?is ,act4 7#b7 ,network tok5s ,a network tok5 %all n be consid]$ to be an ancill>y asset1 & %all n be consid]$ to be a security "u any provision ( law describ$ 9 subsection 7b77#b7 ( section #d;,b ( ! ,securities ,act ( #aicc1 z add$ by ?is ,act1 if1 on ,janu>y #a1 #bjbf1 any units ( t network tok5 7 ! pr9cipal asset ( an ex*ange-trad$ product-- 7,a7 n regi/]$ "u ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#a et seq472 & 7,b7 ! %>es ( :i* are li/$ & trad$ on a national securities ex*ange regi/]$ "u section #f ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;f74 #ajf4 ,exemptive au?ority 7a7 ,cont9u$ applicability ,no?+ 9 ?is ,act1 or any am5dm5t made by ?is ,act1 may be con/ru$ to am5d1 limit1 impair1 or o!rwise affect ! au?ority ( ! ,commission to grant an exemption pursuant to any provision ( law t is 9 effect on ! day be=e ! date ( enactm5t ( ?is ,act1 includ+ pursuant to any ( ! foll[+3 7#a7 ,section #bh ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #ggz-#c74 7#b7 ,section #cf ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #ghmm74 7#c7 ,section #f7;c7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#f7;c774 7#d7 ,section #bjf;,a ( ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#f;a74 7#e7 ,section #cjd7;d7 ( ! ,tru/ ,ind5ture ,act ( #aici 7#ae ,u4,s4,c4 #gg;ddd7d774 7#f7 ,section #d7;g7 ( ! ,securities ,inve/or ,protection ,act ( #aigj 7#ae ,u4,s4,c4 #gh;ddd7g774 7b7 ,g5]al exemptive au?ority ,section #bh ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #ggz-#c7 is am5d$1 9 ! matt] prec$+ ! matt] relat+ to ,s*$ule ,a-- 7#a7 by /rik+ by rule or regulation & ins]t+ by rule1 regulation1 or ord]2 & 7#b7 by add+ at ! end ! foll[+3 ,! ,commission %all1 by rule or regulation1 det]m9e ! proc$ures "u :i* an exemptive ord] "u ?is section %all be grant$ & may1 9 ! sole discretion ( ! ,commission1 decl9e to ent]ta9 any application = an ord] ( exemption "u ?is section44 #ajg4 ,mod]nization ( recordkeep+ requirem5ts ,! ,commission %all adopt rules to mod]nize ! recordkeep+ requirem5ts "u ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq471 ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#a et seq471 & ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#a et seq471 includ+ to facilitate ! utilization ( di/ribut$ l$g] records4 #ajh4 ,mod]nization ( securities regulations = digital asset activities 7a7 ,tailor+ ( exi/+ requirem5ts ,! ,commission %all-- 7#a7 am5d1 resc9d1 replace1 or supplem5t by rule1 ord]1 guidance1 exemptive relief1 or any o!r appropriate action 7provid$ su* action is consi/5t ) *apt] #e ( title #e1 ,unit$ ,/ates ,code1 & o!r applicable law7 ea* regulation1 =m1 int]pretive /atem5t1 or o!r requirem5t )9 ! jurisdiction ( ! ,commission t is n o!rwise am5d$ by ?is ,act 7or requir$ to be am5d$ because ( a provision ( ?is ,act or an am5dm5t made by ?is ,act71 to ! ext5t t su* provision applies to any digital asset activity1 includ+ any activity involv+ a security t is issu$1 record$1 or transf]r$ us+ di/ribut$ l$g] te*nology1 to ! ext5t t ! provision is outdat$1 unnecess>y1 or unduly burd5some 9 light ( ! unique te*nological *>act]i/ics ( digital assets or sub/antially simil> te*nology1 :i* may include regulatory provisions gov]n+-- 7,a7 cu/om] protection1 includ+ cu/ody ( digital assets or sub/antially simil> te*nology2 7,b7 transf] ag5t rules2 7,c7 books & records1 or recordkeep+ requirem5ts2 7,d7 cle>ance & settlem5t rules2 7,e7 brok]-deal]1 alt]native trad+ sy/em1 & ex*ange rules2 7,f7 issu] disclosure & ongo+ report+ requirem5ts tailor$ to digital asset securities or sub/antially simil> te*nology involv+ securities2 & 7,g7 ! use ( vaults1 digital asset receipts1 or receipts involv+ sub/antially simil> te*nology1 vault tok5s1 or liquidity provid] tok5s2 & 7#b7 9 impos+ future obligations z ^? obligations relate to digital assets or sub/antially simil> te*nology1 d s 9 a mann] consi/5t ) ! requirem5ts describ$ 9 p>agraph 7#a74 7b7 ,rule ( con/ruction ,no?+ 9 ?is section may be con/ru$ to limit ! au?ority ( ! ,commission to pursue fraud1 manipulation1 or deceptive practices involv+ digital assets or sub/antially simil> te*nology4 7c7 ,use ( exi/+ au?ority ,:5 consid]+1 propos+1 adopt+1 or engag+ 9 any rule or program or develop+ new rules or programs1 includ+ ^? m&at$ or au?oriz$ "u ?is ,act1 or any am5dm5t made by ?is ,act1 ! activities ( ! ,commission 7:i* may include ! solicitation ( data & o!r input f inve/ors1 regulat$ entities1 & m>ket p>ticipants or ! repres5tatives ( any ( ^? p]sons7 %all be consid]$ actions tak5 "u subsection 7e7 ( section #ai ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #ggs7 & %all be subject to subsection 7f7 ( t section4 7d7 ,cont9u$ applicability ( ,/ate consum] protection laws ,except z expressly provid$ by ?is ,act1 or an am5dm5t made by ?is ,act1 no?+ 9 ?is ,act 7or 9 any su* am5dm5t7 %all preempt any ,/ate consum] protection law1 includ+ common law1 or a rem$y available "u any su* law4 7e7 ,preemption = exemptions & digital asset activities "u ! securities act ,section #ah ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #ggr7 is am5d$-- 7#a7 9 subsection 7b7-- 7,a7 9 p>agraph 7#c7-- 7i7 9 ! p>agraph head+1 by ins]t+ 9 qualifi$ transactions or aft] sales2 7ii7 9 ! fir/ s5t5ce1 by ins]t+ 9 a qualifi$ transaction or aft] ! security2 & 7iii7 9 ! second s5t5ce-- 7,i7 by /rik+ t]m qualifi$ pur*as] & ins]t+ t]ms qualifi$ transaction & qualifi$ pur*as]2 7,,ii7 by ins]t+ & categories ( transactions1 includ+ second>y transactions1 aft] securities2 & 7,,iii7 by ins]t+ & ) due reg>d to ! facilitation ( capital =mation & ! promotion ( innovation be=e ! p]iod at ! end2 & 7,b7 9 p>agraph 7#d7-- 7i7 9 subp>agraph 7,a71 by ins]t+ or1 if ! issu] is n requir$ to file su* reports1 :]e ! ,commission o!rwise det]m9es1 consi/5t ) ! public int]e/ & ! protection ( inve/ors & ) due reg>d to ! facilitation ( capital =mation & ! promotion ( innovation be=e ! semicolon at ! end2 7ii7 9 subp>agraph 7,d77ii71 by ins]t+ 9 a qualifi$ transaction or aft] (f]$ or sold2 7iii7 9 subp>agraph 7,f71 by /rik+ or at ! end2 7iv7 9 subp>agraph 7,g71 by /rik+ ! p]iod at ! end & ins]t+ 2 or2 & 7v7 by add+ at ! end ! foll[+3 7,h7 ,commission rules or regulations issu$ "u section #bh1 except t ?is subp>agraph does n apply to rules or regulations adopt$ be=e ! date ( enactm5t ( ?is subp>agraph4 4 7f7 ,exempt+ network tok5s f ,/ate securities laws 7#a7 ,9 g5]al ,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 ) network tok5s ,a network tok51 z def9$ 9 section #d;,b7a71 %all be treat$ z a cov]$ security4 4 7#b7 ,rule ( con/ruction ,no?+ 9 ?is section1 section #d;,b ( ! ,securities ,act ( #aicc 7z add$ by ?is ,act71 or ! am5dm5ts made by ?is section may be con/ru$ to limit ! au?ority 7z ( ! day be=e ! date ( enactm5t ( ?is ,act7 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 7g7 ,preemption = ancill>y asset activities "u ! ,securities ,act ( #aicc ,section #ah7;b7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #ggr7b771 z am5d$ by subsection 7f7 is am5d$ by add+ at ! end ! foll[+3 7#f7 ,limitations on /ate law reg>d+ ancill>y assets 7,a7 ,def9itions ,9 ?is p>agraph1 ! t]m ancill>y asset has ! mean+ giv5 ! t]m 9 section #d;,b7a74 7,b7 ,exemption 9 connection ) ancill>y assets ,an ancill>y asset (f]$1 sold1 or di/ribut$ 9 reliance on ,regulation ,crypto1 z adopt$ "u section #ajc ( ! ,lummis-,gillibr& ,responsible ,f9ancial ,innovation ,act ( #bjbf1 %all be treat$ z a cov]$ security4 4 7h7 ,pres]vation ( ,regulation ,be/ ,int]e/ 7#a7 ,9 g5]al ,subject to p>agraph 7#b71 no?+ 9 ?is ,act1 any am5dm5t made by ?is ,act1 or any rule issu$ "u ?is ,act or pursuant to any su* am5dm5t may be con/ru$ to limit1 preempt1 or o!rwise affect ! obligations ( a brok] or deal] regi/]$ ) ! ,commission "u section #ae ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho7 or section #bdj4ael-#a ( title #ag1 ,code ( ,f$]al ,regulations 7commonly kn[n z ,regulation ,be/ ,int]e/71 or any successor regulation4 7#b7 ,application ,p>agraph 7#a7 %all n apply ) respect to any p]son regi/]$ ) ! ,commodity ,futures ,trad+ ,commission4 7i7 ,pres]vation ( inve/m5t advis] fiduci>y duties ,no?+ 9 ?is ,act1 any am5dm5t made by ?is ,act1 or any rule issu$ "u ?is ,act or pursuant to any su* am5dm5t may be con/ru$ to limit1 preempt1 or o!rwise affect ! fiduci>y duty t an inve/m5t advis] 7z def9$ 9 section #bjb ( ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#b77 owes to a cli5t "u section #bjf ( ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#f7 or any o!r provision ( ,f$]al or ,/ate law1 includ+ 9 connection ) inve/m5t advice reg>d+ a digital commodity4 #aji4 ,insid] trad+ ) respect to ancill>y asset transactions 7a7 ,def9ition ,9 ?is section1 ! t]m di/ribut$ l$g] control p]son has ! mean+ giv5 ! t]m 9 section #ajd7;a74 7b7 ,application ( securities laws ,any provision ( ! securities laws1 or any regulation issu$ "u ! securities laws1 includ+ any duty t arises "u ! securities laws or "u su* a regulation1 t applies ) respect to a p]son t pur*ases1 sells1 or (f]s to sell a security1 security-bas$ swap1 or security-bas$ swap agreem5t :ile 9 possession ( mat]ial nonpublic in=mation1 or communicates su* in=mation 9 connection ) or 9 ! transaction1 %all apply to any (f]1 sale1 or pur*ase ( a security1 security-bas$ swap1 or security-bas$ swap agreem5t 9 :i* an ancill>y asset is (f]$1 sold1 or pur*as$1 includ+ any (f]1 sale1 or pur*ase conduct$ pursuant to ,regulation ,crypto1 z adopt$ pursuant to section #ajc1 :e!r conduct$ by an ancill>y asset orig9ator1 a relat$ p]son1 or any o!r p]son4 7c7 ,rulemak+ 7#a7 ,9 g5]al ,! ,commission %all adopt rules to implem5t subsection 7b71 :i* %all-- 7,a7 include rules provid+ an affirmative def5se = an (f]1 sale1 or pur*ase ( an ancill>y asset made pursuant to a writt5 plan adopt$ be=e ! applicable p]son became aw>e ( mat]ial nonpublic in=mation1 :i* %all be consi/5t ) section #bdj4aj;b#e-a ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulation2 & 7,b7 be int]pret$ & appli$ 9 a mann] t is consi/5t )1 & may n be con/ru$ to exp& or contract1 ! pr9ciples (1 & judicial prec$5t int]pret+ 7by ! ,supreme ,c\rt ( ! ,unit$ ,/ates71 ! securities laws & ! regulations issu$ "u ! securities laws1 z ^? pr9ciples & t judicial prec$5t are 9 effect1 z ( ! day be=e ! date ( enactm5t ( ?is ,act4 7#b7 ,consid]ations ,9 adopt+ rules "u p>agraph 7#a71 ! ,commission %all consid]1 subject to subsection 7e71 :e!r1 & "u :at circum/ances1 an (f]1 sale1 pur*ase1 or communication %\ld be address$ by ^? rules1 includ+ by-- 7,a7 a di/ribut$ l$g] control p]son1 any p]son act+ on behalf (1 or 9 conc]t )1 an ancill>y asset orig9ator1 relat$ p]son1 or di/ribut$ l$g] control p]son1 or a p]son t obta9$ mat]ial nonpublic in=mation 9 ! c\rse ( a relation%ip ( tru/ & confid5ce ) an ancill>y asset orig9ator or relat$ p]son1 :]e mat]ial nonpublic in=mation reg>d+ an ancill>y asset orig9ator or an ancill>y asset 0-- 7i7 obta9$ pursuant to or 9 brea* ( a duty ( tru/ or confid5ce2 7ii7 deceptively obta9$ ?r\gh !ft1 brib]y1 misrepres5tation1 or espionage or 9 violation ( any ,f$]al law protect+ comput] data2 or 7iii7 obta9$ f an ancill>y asset orig9ator or relat$ p]son1 ! conduct ( :i* is describ$ 9 subp>agraph 7,b72 or 7,b7 an ancill>y asset orig9ator or relat$ p]son t pur*ases1 sells1 or o!rwise di/ributes an ancill>y asset1 or communicates mat]ial nonpublic in=mation reg>d+ an ancill>y asset orig9ator or ancill>y asset1 :ile aw>e ( mat]ial nonpublic in=mation t is requir$ to be disclos$ 9 any disclosure furni%$1 or requir$ to be furni%$1 "u section #d;,b ( ! ,securities ,act ( #aicc1 z add$ by ?is ,act1 or ,regulation ,crypto1 z adopt$ pursuant to section #ajc4 7d7 ,en=cem5t ,a violation ( subsection 7b71 or any rule adopt$ "u subsection 7c71 %all be treat$ z a violation ( ! securities laws & subject to ! p5alties "u sections #ba;,a & #cb ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #ghu-#a1 #gh;ff7 & to all o!r rem$ies available "u ! securities laws4 7e7 ,rule ( con/ruction ,consi/5t ) section #d;,b7b77#c7 ( ! ,securities ,act ( #aicc1 z add$ by ?is ,act1 no?+ 9 ?is section may be con/ru$ to apply ! securities laws1 or any regulation issu$ "u ! securities laws 7includ+ any rule adopt$ "u subsection 7c771 to any second>y m>ket transaction 9 an ancill>y asset t is n o!rwise a transaction 9 a security1 security-bas$ swap1 or security-bas$ swap agreem5t4 #aaj4 ,securities ,inve/or ,protection ,corporation applicability ,section #af7ad7 ( ! ,securities ,inve/or ,protection ,act ( #aigj 7#ae ,u4,s4,c4 #ghlll7#ad77 is am5d$ by ins]t+ aft] ! second s5t5ce ! foll[+3 ,! t]m security does n include a digital commodity44 #aaa4 ,inve/or & consum] protection en=cem5t 7a7 ,pres]vation ( c]ta9 rights1 au?orities1 laws1 & obligations ,subject to subsection 7b71 no?+ 9 ?is ,act1 any am5dm5t made by ?is ,act1 or any rule1 requirem5t1 or regulation promulgat$ pursuant to ?is ,act may be con/ru$ to prohibit1 limit1 impair1 or o!rwise affect-- 7#a7 any p]son f br++ a civil action to en=ce any private "r ( action = fraud1 deceit1 manipulation1 or deceptive practices1 to ! ext5t t su* private "r ( action is expressly provid$ = 9 ?is ,act or an am5dm5t made by ?is ,act1 or is o!rwise available "u ,f$]al law1 includ+ ) respect to conduct involv+ an ancill>y asset1 network tok51 digital commodity1 or any transaction1 disclosure1 c]tification1 notice1 report1 /atem5t1 communication1 or o!r docum5t involv+ any su* asset2 7#b7 except z expressly provid$ 9 ?is ,act or an am5dm5t made by ?is ,act1 any ,f$]al or ,/ate regulator1 act+ )9 ! scope ( au?ority o!rwise provid$ by law1 f br++ an adm9i/rative or civil en=cem5t action "u-- 7,a7 ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq471 includ+ ! provisions ( t ,act t are add$ by ?is ,act & relate to digital commodities & ! jurisdiction ( ! ,commodity ,futures ,trad+ ,commission2 7,b7 ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;a et seq471 z am5d$ by ?is ,act1 ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq471 z am5d$ by ?is ,act1 or ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#a et seq472 7,c7 ,/ate commodities laws1 subject to ! provisions ( ?is ,act1 & ! am5dm5ts made by ?is ,act1 relat+ to ! jurisdiction ( ! ,commodity ,futures ,trad+ ,commission2 or 7,d7 section #ah7;c77#a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #ggr7c77#a771 or any functionally equival5t anti-fraud or anti-manipulation provision ( ,/ate securities law 7includ+ any ,/ate securities law ) respect to a security or a transaction 9 a security to ! ext5t en=cem5t ( t anti-fraud or anti-manipulation provision ( ,/ate securities law is n preempt$ by section #ah ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #ggr771 ) respect to an inve/m5t contract involv+ an ancill>y asset1 or o!r transaction involv+ any su* asset1 = :i* ?is ,act or an am5dm5t made by ?is ,act expressly pres]ves or provides = ! application ( anti-fraud or anti-manipulation au?ority2 7#c7 except z expressly provid$ 9 ?is ,act or an am5dm5t made by ?is ,act1 any g5]ally applicable ,/ate law1 includ+ a law relat+ to fraud1 deceit1 unfair or deceptive acts or practices1 consum] protection1 bank+1 paym5ts1 prop]ty1 contracts1 crim9al law1 or unlawful conduct or practices1 or ! rem$ies available "u any su* law1 ) respect to conduct involv+ a digital asset1 ancill>y asset1 network tok51 or digital commodity1 or any transaction1 activity1 p]son1 or s]vice involv+ any su* asset1 provid$ t su* law does n impose any lic5s+1 regi/ration1 qualification1 or o!r requirem5t t is expressly preempt$1 or o!rwise expressly limit$1 by ?is ,act or an am5dm5t made by ?is ,act2 7#d7 ! fiduci>y obligations ( an inve/m5t advis]1 z def9$ 9 section #bjb7;a7 ( ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#b7;a771 "u section #bjf ( t ,act 7#ae ,u4,s4,c4 #hj;b-#f71 any rule or regulation issu$ "u su* section #bjf1 or any o!r provision ( ,f$]al or ,/ate law1 includ+ 9 connection ) inve/m5t advice reg>d+ a digital asset1 ancill>y asset1 network tok51 digital commodity1 or sub/antially simil> te*nology2 or 7#e7 any "r or rem$y "u ,f$]al consum] f9ancial law1 includ+ "u section #ajaa ( ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #edia7 or ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq471 or au?ority "u ,f$]al consum] f9ancial law ) respect to any p]son1 subject to ! limitations "u section #ajbg ( ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #eeag71 includ+ subsections 7i7 & 7j7 ( su* section #ajbg4 7b7 ,limitations & rules ( con/ruction ,no?+ 9 subsection 7a7 may be con/ru$ to-- 7#a7 pres]ve1 create1 or au?orize any ,f$]al or ,/ate regi/ration1 lic5s+1 qualification1 or m]it-review requirem5t "u ,/ate law ) respect to an ancill>y asset1 network tok51 digital commodity1 transaction1 p]son1 or activity1 to ! ext5t t su* requirem5t is preempt$ or o!rwise limit$ by ?is ,act or an am5dm5t made by ?is ,act2 7#b7 create1 pres]ve1 or au?orize any private "r ( action "u ,f$]al or ,/ate law ) respect to an ancill>y asset1 network tok51 digital commodity1 or transaction involv+ any su* asset2 7#c7 p]mit any claim1 action1 proce$+1 requirem5t1 liability1 obligation1 or rem$y to be br\ght1 ma9ta9$1 impos$1 or en=c$ "u ,f$]al or ,/ate securities or commodities law to ! ext5t t su* claim1 action1 proce$+1 requirem5t1 liability1 obligation1 or rem$y dep5ds ^u1 is pr$icat$ on1 or w\ld require a det]m9ation t an ancill>y asset1 network tok51 digital commodity1 or any transaction1 activity1 p]son1 or s]vice involv+ any su* asset has a /atus or *>act]ization "u ,f$]al or ,/ate securities or commodities law t is contr>y to an express classification or treatm5t provid$ by ?is ,act or an am5dm5t made by ?is ,act2 7#d7 exp&1 contract1 or o!rwise alt] ! jurisdiction1 exclusive or o!rwise1 ( ! ,commission1 ! ,commodity ,futures ,trad+ ,commission1 or any ,/ate regulator2 7#e7 limit1 impair1 or o!rwise affect ! treatm5t ( any asset1 transaction1 or int]e/ z a cov]$ security = purposes ( section #ah ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #ggr72 or 7#f7 create any new private "r ( action "u ,f$]al or ,/ate law1 except t no?+ 9 ?is p>agraph may be con/ru$ to limit1 impair1 or o!rwise affect any private "r ( action pres]v$ "u subsection 7a77#a71 expressly provid$ 9 ?is ,act or an am5dm5t made by ?is ,act1 or o!rwise available "u ,f$]al law4 ,,ii ,protect+ aga9/ illicit f9ance #bja4 ,treatm5t "u ! ,bank ,secrecy ,act & sanctions laws 7a7 ,am5dm5t ,section #ecab7;c77#a77;,a7 ( title #ca1 ,unit$ ,/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 t ,act t 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 7c7 ,s5se ( ,congress ,x is ! s5se ( ,congress t no?+ 9 ?is section %all limit ! applicability ( any law impos+ or au?oriz+ ! imposition ( economic sanctions by ! ,unit$ ,/ates4 #bjb4 ,digital asset exam9ation /&>ds 7a7 ,def9itions ,9 ?is section3 7#a7 ,f$]al functional regulator ,! t]m ,f$]al functional regulator has ! mean+ giv5 ! t]m 9 section #eji ( ! ,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4 #fhji74 7#b7 ,f9ancial in/itution ,! t]m f9ancial in/itution has ! mean+ giv5 ! t]m 9 section #ecab7;a77#b7 ( title #ca1 ,unit$ ,/ates ,code4 7b7 ,exam9ation & review ,! ,secret>y ( ! ,treasury1 9 consultation ) ,f$]al functional regulators1 %all e/abli%1 coord9at$ to ! ext5t feasible1 risk-bas$ exam9ation /&>ds to assess f9ancial in/itutions involv$ 9 ! digital asset sector = compliance ) anti-money laund]+ & c\nt]+ ! f9anc+ ( t]rorism requirem5ts "u ! ,bank ,secrecy ,act4 #bjc4 ,prev5t+ ,illicit ,f9ance ,?r\gh ,p>tn]%ip ,act 7a7 ,%ort title ,?is section may be cit$ z ! ,prev5t+ ,illicit ,f9ance ,?r\gh ,p>tn]%ip ,act4 7b7 ,def9itions ,9 ?is section3 7#a7 ,bank ,! t]m bank has ! mean+ giv5 ! t]m 9 section #ajaj4ajj ( title #ca1 ,code ( ,f$]al ,regulations 7or any correspond+ simil> regulation74 7#b7 ,c]tifi$ or recogniz$ in=mation-%>+ or int]diction network ,! t]m c]tifi$ or recogniz$ in=mation-%>+ or int]diction network means a real-"t1 secure1 public-private me*anism t-- 7,a7 facilitates ! detection1 int]diction1 & prev5tion ( illicit f9ance violations ?r\gh rapid in=mation ex*ange betwe5 gov]nm5t & regulat$ entities2 & 7,b7 is-- 7i7 c]tifi$ by ! ,secret>y ( ! ,treasury = ! purpose ( support+ int]diction & inve/igative actions consi/5t ) law en=cem5t or regulatory au?orities2 or 7ii7 recogniz$ by ! ,secret>y ( ! ,treasury z an exi/+ 7z ( ! day be=e ! date ( enactm5t ( ?is ,act71 effective public-private p>tn]%ip network t meets /&>ds = security1 acc\ntability1 & p>ticipation t are equival5t to ! /&>ds t w\ld be requir$ by ! ,secret>y ( ! ,treasury = c]tification "u clause 7i74 7#c7 ,cov]$ ag5cy ,! t]m cov]$ ag5cy means-- 7,a7 ! ,dep>tm5t ( ,ju/ice1 includ+ ! ,f$]al ,bureau ( ,inve/igation & ! ,drug ,en=cem5t ,adm9i/ration2 7,b7 ! ,dep>tm5t ( ! ,treasury1 includ+ ! ,f9ancial ,crimes ,en=cem5t ,network1 ! ,int]nal ,rev5ue ,s]vice1 & ! ,(fice ( ,=eign ,assets ,control2 & 7,c7 ! ,dep>tm5t ( ,homel& ,security4 7#d7 ,designat$ private sector entity ,! t]m designat$ private sector entity means a private sector entity designat$ "u subsection 7d74 7#e7 ,director ,! t]m ,director means ! ,director ( ! ,f9ancial ,crimes ,en=cem5t ,network4 7#f7 ,illicit f9ance violation ,! t]m illicit f9ance violation means ! illicit use ( digital assets4 7#g7 ,illicit use ,! t]m illicit use includes fraud1 money laund]+1 t]rori/ f9anc+1 ! pur*ase & sale ( illicit goods1 traffick+ ( f5tanyl 7includ+ f5tanyl precursors & trade 9 o!r illicit drugs71 sanctions evasion1 !ft ( funds1 fund+ ( illegal activities1 transactions relat+ to *ild sexual abuse mat]ial or eld] fraud abuse1 & any o!r f9ancial transaction involv+ ! proce$s ( specifi$ unlawful activity1 z def9$ 9 section #aief7;c7 ( title #ah1 ,unit$ ,/ates ,code4 7#h7 ,money s]vices bus9ess ,! t]m money s]vices bus9ess has ! mean+ giv5 ! t]m 9 section #ajaj4ajj ( title #ca1 ,code ( ,f$]al ,regulations 7or any correspond+ simil> regulation74 7c7 ,e/abli%m5t ( program ,! ,secret>y ( ! ,treasury %all e/abli% a pilot program "u :i* cov]$ ag5cies & designat$ private sector entities securely %>e in=mation focus$ on pot5tial illicit f9ance violations & ?reats & em]g+ risks relat+ to illicit f9ance violations4 7d7 ,designation ( private sector entities 7#a7 ,requir$ action 7,a7 ,initial companies ,n lat] ?an #ij days aft] ! date ( enactm5t ( ?is ,act1 ! ,director & ! ,secret>y %all designate #aj private sector entities t are money s]vices bus9esses1 #aj private sector entities t are digital commodity brok]s1 digital commodity deal]s1 or digital commodity ex*anges1 & #aj private sector entities t are banks to p>ticipate 9 ! pilot program e/abli%$ "u subsection 7c71 if su* entities agree & volunte] to p>ticipate 9 ! program4 7,b7 ,biannual review ,n less frequ5tly ?an once e #f mon?s1 ! ,director %all review &1 z appropriate1 replace ! private sector entities designat$ "u ?is p>agraph4 7,c7 ,rule ( con/ruction ,no?+ 9 ?is section may be con/ru$ z-- 7i7 requir+ an entity to p>ticipate 9 ! pilot program e/abli%$ "u ?is section2 or 7ii7 enabl+ ! ,director to select an entity to p>ticipate 9 ! pilot program )\t ! cons5t ( su* entity4 7#b7 ,optional designation ,9 addition to ! #cj private sector entities designat$ "u p>agraph 7#a71 ! ,director may designate-- 7,a7 #a or m in=mation %>+ & analysis c5t]s to p>ticipate 9 ! pilot program2 7,b7 #a or m p>ticipants 9 a c]tifi$ or recogniz$ in=mation %>+ or int]diction network2 or 7,c7 #a or m private sector entities1 z appropriate1 relat+ to a p>ticul> type ( illicit activity4 7e7 ,in=mation %>+ ) private sector entities ,a cov]$ ag5cy t initiates an inve/igation into a pot5tial illicit f9ance violation1 or id5tifies a ?reat or em]g+ risk relat+ to an illicit f9ance violation1 may %>e ) any designat$ private sector entity su* in=mation ab\t ! inve/igation1 ?reat1 or em]g+ risk z ! cov]$ ag5cy det]m9es is appropriate4 7f7 ,use ( in=mation by private sector entities ,in=mation receiv$ by a designat$ private sector entity "u ?is section may n be us$ = any purpose o!r ?an id5tify+ & report+ on activities t may involve illicit f9ance violations or ?reats & em]g+ risks relat+ to illicit f9ance violations1 unless o!rwise prescrib$ by regulation or p]mitt$ by ! cov]$ ag5cy %>+ ! in=mation4 7g7 ,means ( %>+ in=mation ,! cov]$ ag5cies & designat$ private sector entities may %>e in=mation ab\t pot5tial illicit f9ance violations1 or ?reats & em]g+ risks relat+ to illicit f9ance violations1 ) ea* o!r-- 7#a7 ?r\gh a portal e/abli%$ by ! ,secret>y ( ! ,treasury or a simil> me*anism det]m9$ appropriate by ! ,secret>y ( ! ,treasury2 7#b7 ?r\gh secure email2 7#c7 at mon?ly meet+s1 :i* %all be facilitat$ by ! ,secret>y ( ! ,treasury2 or 7#d7 ?r\gh a c]tifi$ or recogniz$ in=mation-%>+ or int]diction network4 7h7 ,limitation on liability ,a designat$ private sector entity t transmits1 receives1 or %>es in=mation = ! purposes ( id5tify+ & report+ activities t may con/itute illicit f9ance violations1 or ?reats & em]g+ risks relat+ to illicit f9ance violations1 %all n be liable to any p]son = su* disclosure or = any failure to provide notice ( su* disclosure to ! p]son :o is ! subject ( su* disclosure or any o!r p]son id5tifi$ 9 su* disclosure4 7i7 ,sunset ,! pilot program e/abli%$ "u subsection 7c7 %all t]m9ate on ! date t is #e ye>s aft] ! date ( enactm5t ( ?is ,act1 unless made p]man5t ?r\gh notice & comm5t rulemak+ by ! ,dep>tm5t ( ! ,treasury4 #bjd4 ,f9ancial ,te*nology ,protection ,act 7a7 ,%ort title ,?is section may be cit$ z ! ,f9ancial ,te*nology ,protection ,act4 7b7 ,def9itions ,9 ?is section3 7#a7 ,appropriate congressional committees ,! t]m appropriate congressional committees means-- 7,a7 ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate2 7,b7 ! ,committee on ,agriculture1 ,nutrition1 & ,=e/ry ( ! ,s5ate2 7,c7 ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives2 & 7,d7 ! ,committee on ,agriculture ( ! ,h\se ( ,repres5tatives4 7#b7 ,di/ribut$ l$g] analytics company ,! t]m di/ribut$ l$g] analytics company means any bus9ess provid+ s(tw>e1 rese>*1 or o!r s]vices 7su* z trac+ tools1 ge(5c+1 transaction scre5+1 ! collection ( bus9ess data1 & sanctions scre5+7 t-- 7,a7 support private & public sector inve/igations & risk managem5t activities2 & 7,b7 involve cryptographically secur$ di/ribut$ l$g]s or any simil> te*nology or implem5tation4 7#c7 ,em]g+ te*nologies ,! t]m em]g+ te*nologies means ! critical & em]g+ te*nology areas li/$ 9 ! ,critical & ,em]g+ ,te*nologies ,li/ develop$ by ! ,fa/ ,track ,action ,subcommittee on ,critical & ,em]g+ ,te*nologies ( ! ,national ,sci5ce & ,te*nology ,c\ncil1 includ+ any updates to su* li/4 7#d7 ,=eign t]rori/ organization ,! t]m =eign t]rori/ organization means an organization t is designat$ z a =eign t]rori/ organization "u section #bai ( ! ,immigration & ,nationality ,act 7#h ,u4,s4,c4 #aahi74 7#e7 ,illicit use ,! t]m illicit use includes fraud1 money laund]+1 t]rori/ f9anc+1 ! pur*ase & sale ( illicit goods1 traffick+ ( f5tanyl 7includ+ f5tanyl precursors & trade 9 o!r illicit drugs71 sanctions evasion1 !ft ( funds1 fund+ ( illegal activities1 transactions relat$ to *ild sexual abuse mat]ial or eld] fraud abuse1 & any o!r f9ancial transaction involv+ ! proce$s ( specifi$ unlawful activity 7z def9$ 9 section #aief7;c7 ( title #ah1 ,unit$ ,/ates ,code74 7#f7 ,/ate sponsor ( t]rorism ,! t]m /ate sponsor ( t]rorism means a c\ntry det]m9$ by ! ,secret>y ( ,/ate to h repeat$ly provid$ support = acts ( int]national t]rorism "u section #dj ( ! ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bghj7 or section #fbj;,a ( ! ,=eign ,assi/ance ,act ( #aifa 7#bb ,u4,s4,c4 #bcga74 7#g7 ,t]rori/ ,! t]m t]rori/ includes a p]son c>ry+ out dome/ic t]rorism or int]national t]rorism 7z su* t]ms are def9$1 respectively1 "u section #bcca ( title #ah1 ,unit$ ,/ates ,code74 7#h7 ,transnational organiz$ crime ,! t]m transnational organiz$ crime has ! mean+ giv5 ! t]m 9 section #bhd ( title #aj1 ,unit$ ,/ates ,code4 7c7 ,indep5d5t f9ancial te*nology work+ gr\p to combat t]rorism1 n>cotics traffick+1 & illicit f9anc+ 7#a7 ,e/abli%m5t ,!re is e/abli%$ ! ,indep5d5t ,f9ancial ,te*nology ,work+ ,gr\p to ,combat ,t]rorism1 ,n>cotics ,traffick+1 & ,illicit ,f9anc+ 79 ?is section ref]r$ to z ! ,work+ ,gr\p 71 :i* %all consi/ ( ! foll[+3 7,a7 ,! ,secret>y ( ! ,treasury or _! designee1 :o %all s]ve z ! *air ( ! ,work+ ,gr\p4 7,b7 ,a s5ior-level repres5tative f ea* ( ! foll[+3 7i7 ,! ,dep>tm5t ( ! ,treasury4 7ii7 ,! ,(fice ( ,t]rorism & ,f9ancial ,intellig5ce4 7iii7 ,! ,int]nal ,rev5ue ,s]vice4 7iv7 ,! ,dep>tm5t ( ,ju/ice4 7v7 ,! ,f$]al ,bureau ( ,inve/igation4 7vi7 ,! ,drug ,en=cem5t ,adm9i/ration4 7vii7 ,! ,dep>tm5t ( ,homel& ,security4 7viii7 ,! ,unit$ ,/ates ,secret ,s]vice4 7ix7 ,! ,dep>tm5t ( ,/ate4 7x7 ,! ,(fice ( ! ,director ( ,national ,intellig5ce4 7,c7 ,at lea/ #e individuals appo9t$ by ! ,secret>y ( ! ,treasury to repres5t ! foll[+3 7i7 ,digital asset companies4 7ii7 ,di/ribut$ l$g] analytics companies4 7iii7 ,f9ancial in/itutions4 7iv7 ,in/itutions or organizations engag$ 9 rese>*4 7v7 ,in/itutions or organizations focus$ on individual privacy & civil lib]ties4 7,d7 ,su* additional individuals z ! ,secret>y ( ! ,treasury may appo9t z necess>y to accompli% ! duties describ$ 9 p>agraph 7#b74 7#b7 ,duties ,! ,work+ ,gr\p %all-- 7,a7 conduct rese>* on ! illicit use ( digital assets & o!r relat$ em]g+ te*nologies1 includ+ by t]rori/s1 =eign t]rori/ organizations1 /ate sponsors ( t]rorism1 & transnational organiz$ crime gr\ps2 & 7,b7 develop legislative & regulatory proposals to improve anti-money laund]+1 c\nt]-t]rori/1 & o!r c\nt]-illicit f9anc+ ef=ts 9 ! ,unit$ ,/ates4 7#c7 ,reports 7,a7 ,9 g5]al ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 & annually = ! #c ye>s !reaft]1 ! ,work+ ,gr\p %all submit to ! ,secret>y ( ! ,treasury1 ! heads ( ea* ag5cy repres5t$ 9 ! ,work+ ,gr\p pursuant to p>agraph 7#a77;,b71 & ! appropriate congressional committees a report conta9+ ! f9d+s & det]m9ations made by ! ,work+ ,gr\p 9 ! previ\s ye> & any legislative & regulatory proposals develop$ by ! ,work+ ,gr\p4 7,b7 ,f9al report ,be=e ! date on :i* ! ,work+ ,gr\p t]m9ates "u p>agraph 7#d77;,a71 ! ,work+ ,gr\p %all submit to ! appropriate congressional committees a f9al report detail+ ! f9d+s1 recomm5dations1 & activities ( ! ,work+ ,gr\p1 includ+ any f9al results f ! rese>* conduct$ by ! ,work+ ,gr\p4 7#d7 ,sunset 7,a7 ,9 g5]al ,! ,work+ ,gr\p %all t]m9ate on ! lat] (-- 7i7 ! date t is #d ye>s aft] ! date ( enactm5t ( ?is ,act2 or 7ii7 ! date on :i* ! ,work+ ,gr\p completes any w9d-up activities describ$ 9 subp>agraph 7,b74 7,b7 ,au?ority to w9d up activities ,if !re are rese>*1 proposals1 or o!r relat$ activities ( ! ,work+ ,gr\p ongo+ z ( ! date t is #d ye>s aft] ! date ( enactm5t ( ?is ,act1 ! ,work+ ,gr\p may tempor>ily cont9ue work+ 9 ord] to w9d up su* activities4 7,c7 ,return ( appropriat$ funds ,on ! date on :i* ! ,work+ ,gr\p t]m9ates "u subp>agraph 7,a71 any unobligat$ funds appropriat$ to c>ry out ?is subsection %all be transf]r$ to ! ,treasury4 #bje4 ,digital asset kiosks 7a7 ,regi/ration ,section #eccj ( title #ca1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 subsection 7d7-- 7,a7 9 p>agraph 7#a77;,a71 by ins]t+ 1 any p]son :o owns1 op]ates1 or manages a digital asset kiosk 9 ! ,unit$ ,/ates or its t]ritories1 aft] simil> in/rum5ts2 & 7,b7 by add+ at ! end ! foll[+3 7#c7 ,digital asset2 digital asset address2 digital asset kiosk2 digital asset kiosk op]ator ,! t]ms digital asset1 digital asset address1 digital asset kiosk1 & digital asset kiosk op]ator h ! mean+s giv5 ^? t]ms1 respectively1 9 section #eccg4 2 & 7#b7 by add+ at ! end ! foll[+3 7f7 ,regi/ration ( digital asset kiosk locations 7#a7 ,9 g5]al ,n lat] ?an #ij days aft] ! effective date ( ?is subsection1 & n less ?an once e #ij days !reaft]1 ! ,secret>y ( ! ,treasury %all require digital asset kiosk op]ators to submit an updat$ li/ conta9+ ! physical address ( ea* digital asset kiosk own$ or op]at$ by ! digital asset kiosk op]ator4 7#b7 ,=m & mann] ( regi/ration ,ea* submission by a digital asset kiosk op]ator pursuant to p>agraph 7#a7 %all include-- 7,a7 ! legal "n ( ! digital asset kiosk op]ator2 7,b7 any fictiti\s or trade "n ( ! digital asset kiosk op]ator2 7,c7 ! physical address ( ea* digital asset kiosk own$1 op]at$1 or manag$ by ! digital asset kiosk op]ator t is locat$ 9 ! ,unit$ ,/ates or ! t]ritories ( ! ,unit$ ,/ates2 7,d7 ! />t date ( op]ation ( ea* digital asset kiosk2 7,e7 ! end date ( op]ation ( ea* digital asset kiosk1 if applicable2 & 7,f7 ea* digital asset address us$ by ! digital asset kiosk op]ator4 7#c7 ,false & incomplete in=mation ,! fil+ ( false or mat]ially incomplete in=mation 9 a submission requir$ "u p>agraph 7#a7 %all be deem$ a failure to comply ) ! requirem5ts ( ?is subsection4 4 7b7 ,prev5t+ fraudul5t transactions at digital asset kiosks 7#a7 ,9 g5]al ,sub*apt] ,,ii ( *apt] #ec ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 #eccg4 ,digital asset kiosk fraud prev5tion 7a7 ,def9itions ,9 ?is section3 7#a7 ,cu/om] ,! t]m cu/om] means any p]son t pur*ases or sells digital assets ?r\gh a digital asset kiosk4 7#b7 ,di/ribut$ l$g] analytics ,! t]m di/ribut$ l$g] analytics means ! analysis ( data f public di/ribut$ l$g]s1 & associat$ transaction in=mation1 to provide risk-specific in=mation ab\t digital asset transactions & digital asset addresses4 7#c7 ,digital asset ,! t]m digital asset has ! mean+ giv5 ! t]m 9 section #b ( ! ,,g5ius ,act 7#ab ,u4,s4,c4 #eija74 7#d7 ,digital asset address ,! t]m digital asset address means an alphanum]ic id5tifi] associat$ ) a digital asset wallet id5tify+ ! location to :i* a digital asset pur*as$ ?r\gh a digital asset kiosk c be s5t or f :i* a digital asset sold ?r\gh a digital asset kiosk c be access$4 7#e7 ,digital asset kiosk ,! t]m digital asset kiosk means a /&-alone ma*9e t is capable ( accept+ or disp5s+ legal t5d] 9 ex*ange = digital assets4 7#f7 ,digital asset kiosk op]ator ,! t]m digital asset kiosk op]ator means a p]son :o owns1 op]ates1 or manages a digital asset kiosk locat$ 9 ! ,unit$ ,/ates or its t]ritories4 7#g7 ,digital asset kiosk transaction ,! t]m digital asset kiosk transaction means ! pur*ase or sale ( digital assets via a digital asset kiosk4 7#h7 ,digital asset wallet ,! t]m digital asset wallet means a s(tw>e application or o!r me*anism provid+ a means = hold+1 /or+1 & transf]r+ digital assets4 7#i7 ,fin,c,e,n ,! t]m ,fin,c,e,n means ! ,f9ancial ,crimes ,en=cem5t ,network ( ! ,dep>tm5t ( ! ,treasury4 7#aj7 ,new cu/om] ,! t]m new cu/om]1 ) respect to a digital asset kiosk op]ator1 means a cu/om] dur+ ! #ad-;day p]iod beg9n+ on ! date ( ! fir/ digital asset kiosk transaction ( ! cu/om] ) ! digital asset kiosk op]ator4 7#aa7 ,transaction ha% ,! t]m transaction ha% means a unique id5tifi] made up ( a /r+ ( *>act]s t act z a record ( & provide pro( t a transaction 0 v]ifi$ & add$ to ! di/ribut$ l$g]4 7b7 ,disclosures 7#a7 ,9 g5]al ,be=e ent]+ into a digital asset transaction ) a cu/om]1 a digital asset kiosk op]ator %all disclose 9 a cle>1 conspicu\s1 & easily readable mann]-- 7,a7 all relevant t]ms & conditions ( ! digital asset kiosk transaction1 includ+-- 7i7 ! am\nt ( ! digital asset kiosk transaction2 7ii7 ! type & nature ( ! digital asset kiosk transaction2 7iii7 a w>n+ t ! digital asset kiosk transaction is f9al1 is n refundable1 & may n be rev]s$2 & 7iv7 ! type & am\nt ( any fees or o!r exp5ses paid by ! cu/om]2 7,b7 a w>n+ relat+ to consum] fraud includ+-- 7i7 t consum] fraud (t5 />ts ) contact f a /rang]1 & t ! cu/om] %\ld nev] s5d money to someone ! cu/om] does n "k2 7ii7 ! mo/ common types ( fraudul5t s*emes involv+ digital asset kiosks1 su* z-- 7,i7 imp]sonation ( a gov]nm5t (ficial or a bank repres5tative2 7,,ii7 ?reats ( jail "t or f9ancial p5alties2 7,,iii7 (f]s ( a job or rew>d 9 ex*ange = paym5t1 or (f]s ( deals t seem too good to be true2 7,,iv7 claims ( a froz5 bank acc\nt or cr$it c>d2 7,v7 reque/s = donations to *>ity or disa/] relief2 or 7,,vi7 paym5t to an individual ! cu/om] has nev] met2 & 7iii7 a /atem5t t ! cu/om] %\ld contact law en=cem5t if !y suspect fraudul5t activity1 su* z scams1 includ+ contact in=mation = a relevant law en=cem5t or gov]nm5t ag5cy4 7#b7 ,additional disclosures ,fin,c,e,n may adopt rules relat+ to additional disclosures requir$ to be made to cu/om]s prior to engag+ 9 a transaction4 7c7 ,ackn[l$gm5t ( disclosures ,ea* "t a cu/om] uses a digital asset kiosk1 ! digital asset kiosk op]ator %all ensure ackn[l$gm5t ( all disclosures requir$ "u subsection 7b7 via confirmation ( cons5t ( ! cu/om] at ! digital asset kiosk4 7d7 ,receipts ,^u completion ( ea* digital asset kiosk transaction1 ! digital asset kiosk op]ator %all provide ! cu/om] ) a receipt1 :i* %all include ! foll[+ in=mation3 7#a7 ,! "n & contact in=mation ( ! digital asset kiosk op]ator1 includ+ a telephone numb] = a cu/om] s]vice helpl9e4 7#b7 ,! "n ( ! cu/om]4 7#c7 ,! type1 value1 date1 & precise "t ( ! digital asset kiosk transaction1 transaction ha%1 & ea* applicable digital asset address4 7#d7 ,! am\nt ( ! digital asset kiosk transaction express$ 9 ,unit$ ,/ates doll>s4 7#e7 ,all fees *>g$4 7#f7 ,a /atem5t t ! cu/om] %\ld contact law en=cem5t if !y suspect fraudul5t activity1 su* z scams1 includ+ contact in=mation = a relevant law en=cem5t or gov]nm5t ag5cy4 7#g7 ,! ex*ange rate appli$4 7#h7 ,any additional in=mation ! digital asset kiosk op]ator det]m9es appropriate4 7e7 ,physical receipts available ,a physical v]sion ( ! receipt requir$ "u subsection 7d7 %all be issu$ to ! cu/om] at ! "t ( ! digital asset kiosk transaction1 if ! cu/om] opts = su* a physical v]sion ( ! receipt4 7f7 ,anti-,fraud policy 7#a7 ,9 g5]al ,ea* digital asset kiosk op]ator %all e/abli%1 ma9ta91 & implem5t a writt5 anti-fraud policy if requir$ by1 & consi/5t )1 applicable ,/ate law 9 ^? ,/ates :]e ! digital asset kiosk op]ator is lic5s$4 7#b7 ,f$]al /&>d ,a digital asset kiosk op]ator op]at+ 9 any ,/ate t does n require an anti-fraud policy "u p>agraph 7#a7 %all e/abli%1 ma9ta91 & implem5t an anti-fraud policy t1 at a m9imum1 includes-- 7,a7 ! id5tification & assessm5t ( fraud-relat$ areas2 7,b7 proc$ures & controls to protect aga9/ risks id5tifi$ "u subp>agraph 7,a72 7,c7 allocation ( responsibility = monitor+ ! risks id5tifi$ "u subp>agraph 7,a72 & 7,d7 proc$ures = ! p]iodic evaluation & revision ( ! anti fraud proc$ures1 controls1 & monitor+ me*anisms "u subp>agraphs 7,b7 & 7,c74 7g7 ,appo9tm5t ( compliance (fic] ,ea* digital asset kiosk op]ator %all designate & employ a compliance (fic] :o-- 7#a7 is qualifi$ to coord9ate & monitor compliance ) ?is section & all o!r applicable ,f$]al & ,/ate laws1 rules1 & regulations2 7#b7 is employ$ full-"t by ! digital asset kiosk op]ator2 7#c7 is n ! *ief executive (fic] ( ! digital asset kiosk op]ator2 & 7#d7 does n own or control m ?an #aj p]c5t ( any int]e/ 9 ! digital asset kiosk op]ator4 7h7 ,use ( di/ribut$ l$g] analytics & wallet p9n+ 7#a7 ,9 g5]al ,ea* digital asset kiosk op]ator %all use di/ribut$ l$g] analytics to prev5t s5d+ a digital asset to a digital asset wallet kn[n to be affiliat$ ) fraudul5t activity at ! "t ( a digital asset kiosk transaction & to detect transaction patt]ns indicative ( fraud or o!r illicit activities4 7#b7 ,wallet p9n+ ,ea* digital asset kiosk op]ator %all ma9ta9 re/rictions t prev5t m ?an #a cu/om] ( ! digital asset kiosk op]ator f us+ ! same digital wallet address4 7#c7 ,compliance ,! ,director ( ,fin,c,e,n may reque/ evid5ce f any digital asset kiosk op]ator to confirm compliance ) ?is subsection4 7i7 ,confirmation requir$ be=e new cu/om] transactions ,be=e ent]+ into a digital asset kiosk transaction valu$ at #ejj or m ) a new cu/om]1 ! digital asset kiosk op]ator %all obta9 confirmation f ! new cu/om] t-- 7#a7 ! new cu/om] wi%es to proce$ ) ! digital asset kiosk transaction2 & 7#b7 ! new cu/om] is n be+ fraudul5tly induc$ into engag+ 9 ! transaction4 7j7 ,hold+ p]iod ,no digital asset kiosk op]ator %all execute a transaction on behalf ( a new cu/om] t s5ds digital assets to a specific wallet address unless at lea/ #gb h\rs h elaps$ s9ce ! initiation ( ! transaction by ! new cu/om]4 7k7 ,transaction limits ) respect to new cu/om]s ,! ,secret>y ( ! ,treasury %all prescribe by regulation ! ?re%old am\nts = report+ or limit+ digital asset kiosk transactions1 includ+ aggregate or s+le-day deposit & )drawal limits1 z ! ,secret>y det]m9es are reasonably necess>y to det] fraud & illicit f9ance4 ,su* regulations %all consid] ! unique risks & functionalities ( digital asset kiosks & may provide = exceptions1 adju/m5ts1 or exclusions z deem$ appropriate by ! ,secret>y4 7l7 ,int]im transaction limits ,until ! effective date ( regulations prescrib$ "u subsection 7k71 a digital asset kiosk op]ator %all n p]mit a new cu/om] to conduct transactions exce$+ #c1ejj 9 ! aggregate )9 any #bd-;h\r p]iod4 7m7 ,refunds ,a digital asset kiosk op]ator %all issue a refund = a cu/om]'s transaction fees )9 #cj days if-- 7#a7 ! cu/om] 0 fraudul5tly induc$ into engag+ 9 ! digital asset kiosk transaction2 & 7#b7 ! cu/om] files a compla9t to ! digital asset kiosk op]ator1 :i* includes-- 7,a7 ! "n1 address1 & phone numb] ( ! cu/om]2 7,b7 ! transaction ha% ( ! digital asset kiosk transaction or in=mation suffici5t to e/abli% ! type1 value1 date1 & "t ( ! digital asset kiosk transaction2 & 7,c7 a copy ( a report to a ,/ate or local law en=cem5t or gov]nm5t ag5cy made n lat] ?an #cj days aft] ! digital asset kiosk transaction4 7n7 ,cu/om] s]vice helpl9e ,ea* digital asset kiosk op]ator %all provide live cu/om] s]vice dur+ bus9ess h\rs1 ! phone numb] = :i* is regul>ly monitor$ & display$ 9 a cle>1 conspicu\s1 & easily readable mann] ^u ea* digital asset kiosk4 ,dur+ non-bus9ess h\rs1 ! digital asset kiosk op]ator %all ma9ta9 an alt]native cu/om] s]vice sy/em t may include an automat$ *atbot1 an onl9e compla9t report+ portal1 or o!r cu/om] s]vice me*anism4 7o7 ,communications ) law en=cem5t ,ea* digital asset kiosk op]ator p]=m+ bus9ess 9 ! ,unit$ ,/ates %all h a d$icat$ me?od ( contact1 su* z a phone numb]1 email address1 or o!r contact me?od1 = law en=cem5t & regulatory ag5cies to contact ! digital asset kiosk op]ator4 ,?is contact me?od %all be display$ & available on ! digital asset kiosk op]ator's website4 7p7 ,civil p5alties & /ate en=cem5t ,any ,/ate regulator may br+ a civil action or o!r appropriate proce$+ to en=ce ! provisions ( ?is section & may assess or collect civil p5alties or o!r rem$ies = violations ( ?is section1 z provid$ "u applicable ,/ate law4 7q7 ,rule ( con/ruction ,no?+ 9 ?is section may be con/ru$ to prohibit a ,/ate f enact+ a law1 rule1 or regulation t provides great] protection to cu/om]s4 4 7#b7 ,te*nical & con=m+ am5dm5t ,! table ( sections = sub*apt] ,,ii ( *apt] #ec ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 #eccg4 ,digital asset kiosk fraud prev5tion4 4 #bjf4 ,/udy on illicit use ( digital assets 7a7 ,def9itions ,9 ?is section3 7#a7 ,=eign t]rori/ organization ,! t]m =eign t]rori/ organization means an organization t is designat$ z a =eign t]rori/ organization "u section #bai ( ! ,immigration & ,nationality ,act 7#h ,u4,s4,c4 #aahi74 7#b7 ,transnational organiz$ crim9al ,! t]m transnational organiz$ crim9al means an individual :o p>ticipates 9 transnational organiz$ crime1 z def9$ 9 section #bhd7;i7 ( title #aj1 ,unit$ ,/ates ,code4 7b7 ,review ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury1 9 consultation ) ! ,attorney ,g5]al1 %all conduct a compreh5sive review ( h[ =eign t]rori/ organizations & transnational organiz$ crim9als utilize digital assets 9 connection ) illicit activities4 7c7 ,report ,n lat] ?an #ahj days aft] complet+ ! review "u subsection 7b71 ! ,secret>y ( ! ,treasury %all submit to ! ,committee on ,agriculture1 ,nutrition1 & ,=e/ry & ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,agriculture & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives a report on ! f9d+s ( ! ,secret>y1 includ+-- 7#a7 an assessm5t ( h[ =eign t]rori/ organizations & transnational organiz$ crim9als utilize digital assets 9 connection ) illicit activities2 & 7#b7 recomm5dations to assi/ ! ,commission & ! ,commodity ,futures ,trad+ ,commission 9 /r5g!n+ compliance & en=cem5t ( digital assets-relat$ entities regi/]$ ) _! respective ag5cies4 7d7 ,additional ag5cies ,! ,secret>y ( ! ,treasury may1 9 ! sole discretion ( ! ,secret>y ( ! ,treasury1 solicit input = ! report requir$ "u subsection 7c7 f any or all ( ! ,f$]al functional regulators1 z def9$ 9 section #eji ( ! ,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4 #fhji71 & ! ,commodity ,futures ,trad+ ,commission4 7e7 ,classifi$ annex ,! report requir$ "u subsection 7c7 may include a classifi$ annex1 z appropriate4 ,,iii ,responsible innovation 9 dec5traliz$ f9ance #cja4 ,rulemak+ on application ( exi/+ securities int]m$i>y requirem5ts & exi/+ ,bank ,secrecy ,act requirem5ts to non-dec5traliz$ f9ance trad+ protocols 7a7 ,def9itions ,9 ?is section3 7#a7 ,dec5traliz$ f9ance trad+ protocol ,! t]m dec5traliz$ f9ance trad+ protocol means a di/ribut$ l$g] sy/em ?r\gh :i* multiple p>ticipants c execute a f9ancial transaction-- 7,a7 9 accordance ) an automat$ rule or algori?m t is pr$et]m9$ & non-discretion>y2 & 7,b7 )\t reliance on a p]son o!r ?an ! us] to ma9ta9 cu/ody or control ( any digital assets subject to ! f9ancial transaction4 7#b7 ,non-dec5traliz$ f9ance trad+ protocol 7,a7 ,9 g5]al ,! t]m non-dec5traliz$ f9ance trad+ protocol means a dec5traliz$ f9ance trad+ protocol t meets #a or m ( ! foll[+3 7i7 ,a p]son or gr\p ( p]sons "u common control1 or act+ pursuant to an agreem5t1 arrangem5t1 or und]/&+ to act 9 conc]t1 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 ( ! dec5traliz$ f9ance trad+ protocol4 7ii7 ,! dec5traliz$ f9ance trad+ protocol 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 ( ! di/ribut$ l$g] sy/em4 7iii7 ,a p]son or gr\p ( p]sons "u common control1 or act+ pursuant to an agreem5t1 arrangem5t1 or und]/&+ to act 9 conc]t1 has ! au?ority1 via op]ation ( ! dec5traliz$ f9ance trad+ protocol1 to re/rict1 c5sor1 or prohibit ! use ( ! dec5traliz$ f9ance trad+ protocol1 includ+ any applicable sy/em-bas$ us] activity4 7,b7 ,special rule ,= purposes ( subp>agraph 7,a71 a dec5traliz$ gov]nance sy/em1 solely by virtue ( ! op]ation ( ! dec5traliz$ gov]nance sy/em1 %all n be consid]$ to be a p]son or a gr\p ( p]sons "u common control or act+ pursuant to an agreem5t1 arrangem5t1 or und]/&+ to act 9 conc]t4 7,c7 ,exclusions ,= purposes ( ?is section1 p>ticipation 9 an incid5t-response or security c\ncil1 z describ$ 9 subsection 7f71 %all n1 by itself1 be deem$ to con/itute control ( a non-dec5traliz$ f9ance trad+ protocol4 7,d7 ,scop+ ,9 implem5t+ ?is section1 ! ,commission & ! ,dep>tm5t ( ! ,treasury %all con/rue ! t]m non-dec5traliz$ f9ance trad+ protocol 9 a mann] consi/5t ) section #ae;,h ( ! ,securities ,ex*ange ,act ( #aicd1 z add$ by section #fja4 7b7 ,rules 7#a7 ,9 g5]al ,! ,commission1 9 consultation ) ! ,dep>tm5t ( ! ,treasury1 %all adopt tailor$1 cle>1 & specific rules1 aft] notice & comm5t1 t cl>ify h[ a p]son1 or gr\p ( p]sons "u common control1 or act+ pursuant to an agreem5t1 arrangem5t1 or und]/&+ to act 9 conc]t1 t controls a non-dec5traliz$ f9ance trad+ protocol & is subject to ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq471 z am5d$ by ?is ,act1 %all comply ) applicable requirem5ts "u t ,act1 includ+ ) respect to regi/ration1 conduct1 disclosure1 recordkeep+1 sup]vision1 & o!r requirem5ts "u ! securities laws4 7#b7 ,requirem5ts ,! rulemak+ requir$ "u p>agraph 7#a7 %all-- 7,a7 ensure t ! rules adopt$ pursuant to t rulemak+ are consi/5t ) ! purposes ( ! securities laws1 includ+ ! public int]e/1 ! protection ( inve/ors1 & ! ma9t5ance ( fair & ord]ly m>kets2 7,b7 protect ! rights ( s(tw>e develop]s1 publi%]s1 & us]s to create1 publi%1 & use code & s(tw>e 9 a mann] consi/5t ) ! ,fir/ ,am5dm5t to ! ,con/itution ( ! ,unit$ ,/ates2 7,c7 provide legal cl>ity = ! developm5t1 publication1 & op]ation ( di/ribut$ l$g] sy/ems & ! compon5ts !re9 9 a mann] consi/5t ) ! purposes ( ?is section2 & 7,d7 result 91 by op]ation ( law1 ! application & en=cem5t by ! ,dep>tm5t ( ! ,treasury1 :]e applicable & pursuant to exi/+ law1 z 9 effect on ! day be=e ! date ( enactm5t ( ?is ,act1 ( anti-money laund]+ & c\nt]+ ! f9anc+ ( t]rorism requirem5ts "u ! ,bank ,secrecy ,act & o!r ,f$]al law ) respect to any p]son or gr\p ( p]sons t ! ,commission det]m9es1 ?r\gh t rulemak+1 is requir$ to regi/]1 or comply z a regi/rant1 "u ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq474 7#c7 ,application 7,a7 ,9 g5]al ,any p]son or gr\p ( p]sons det]m9$ "u ?is subsection to be requir$ to regi/]1 or comply z a regi/rant1 "u ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 7ref]r$ to 9 ?is p>agraph z ! ,ex*ange ,act7 %all be subject to t ,act & ! ,bank ,secrecy ,act to ! ext5t applicable "u exi/+ law1 z 9 effect on ! day be=e ! date ( enactm5t ( ?is ,act1 consi/5t ) ! treatm5t ( simil>ly situat$ p>ticipants "u ! ,ex*ange ,act4 7,b7 ,rulemak+ ,! ,secret>y ( ! ,treasury1 9 consultation ) ! ,commission1 %all adopt tailor$1 cle>1 & specific rules1 aft] provid+ notice & ! opportunity to comm5t1 t def9e compliance ) obligations "u ! ,bank ,secrecy ,act & o!r ,f$]al laws relat+ to anti-money laund]+ & c\nt]+ ! f9anc+ ( t]rorism ) respect to any p]son1 or gr\p ( p]sons "u common control 7or act+ pursuant to an agreem5t1 arrangem5t1 or und]/&+ to act 9 conc]t71 t-- 7i7 controls ! op]ation ( a non-dec5traliz$ f9ance trad+ protocol id5tifi$ 9 ! rulemak+ conduct$ "u p>agraph 7#a72 7ii7 is requir$ to regi/]1 or comply z a regi/rant1 "u ! ,ex*ange ,act1 z det]m9$ 9 ! rulemak+ conduct$ "u p>agraph 7#a72 & 7iii7 is caus$ to be treat$ z a f9ancial in/itution "u ! ,bank ,secrecy ,act pursuant to exi/+ law1 z 9 effect on ! day be=e ! date ( enactm5t ( ?is ,act1 z a result ( regi/ration or compliance describ$ 9 clause 7ii74 7c7 ,activity-,bas$ application ,rules adopt$ "u subsection 7b77#a7 %all require ! ,commission to det]m9e ! applicable requirem5ts only ) respect to securities-relat$ activities1 bas$ on ! functions p]=m$ by ! controll+ p]son or gr\p ( p]sons1 includ+ brok]age1 deal+1 trad+1 execution1 cle>+1 or cu/ody ( securities1 )\t reg>d to te*nological =m1 di/ribut$ ar*itecture1 or purport$ly dec5traliz$ *>act]ization4 7d7 ,rules ( con/ruction 7#a7 ,regi/ration n requir$ ,no?+ 9 ?is section1 nor any rule adopt$ "u ?is section1 may be con/ru$ to-- 7,a7 require a di/ribut$ l$g] sy/em or any s(tw>e code to regi/] ) ! ,commission 9 its own capacity2 or 7,b7 prohibit ! laun*1 deploym5t1 or op]ation ( a di/ribut$ l$g] sy/em4 7#b7 ,no expansion ( /atutory au?ority ,not)/&+ any rulemak+ requir$ "u subsection 7b71 & not)/&+ any action ! ,commission or ! ,secret>y ( ! ,treasury may take "u t subsection1 no?+ 9 ?is section1 includ+ any su* rulemak+1 may be con/ru$ to-- 7,a7 exp& or contract ! /atutory au?ority ( ! ,commission or ! ,dep>tm5t ( ! ,treasury1 z 9 effect on ! day be=e ! date ( enactm5t ( ?is ,act1 "u ! ,bank ,secrecy ,act2 or 7,b7 limit ! use ( ! au?ority describ$ 9 subp>agraph 7,a7 to det]m9e1 pursuant to t rulemak+1 ! applicability ( exi/+ /atutory requirem5ts1 z 9 effect on ! day be=e ! date ( enactm5t ( ?is ,act1 to p]sons or activities describ$ 9 ?is section4 7#c7 ,no presumption ( applicability ,no?+ 9 ?is section may be con/ru$ to create a presumption t any p]son or activity describ$ 9 ?is section is or is n subject to ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 or ! ,bank ,secrecy ,act abs5t a det]m9ation made pursuant to a rulemak+ requir$ "u ?is section4 7e7 ,pres]vation ( exi/+ au?orities ,no?+ 9 ?is section may be con/ru$ to-- 7#a7 limit ! au?ority ( ! ,commission "u ! securities laws to inve/igate violations1 br+ actions1 or issue subpo5as ) respect to p]sons det]m9$1 pursuant to rulemak+1 to be subject to ! securities laws "u ?is section2 or 7#b7 limit ! au?ority ( ! ,secret>y ( ! ,treasury "u ! ,bank ,secrecy ,act1 includ+ to inve/igate violations or br+ actions ) respect to p]sons det]m9$1 pursuant to rulemak+1 to be subject to ! ,bank ,secrecy ,act4 7f7 ,non-,dec5traliz$ f9ance trad+ protocols 7#a7 ,9 g5]al ,9 adopt+ rules "u subsection 7b71 ! ,commission %all treat a dec5traliz$ gov]nance sy/em & any p]son p>ticipat+ 9 ! dec5traliz$ gov]nance sy/em z sep>ate p]sons unless su* p]sons are "u common control or act+ pursuant to an agreem5t1 arrangem5t1 or und]/&+ to act 9 conc]t4 7#b7 ,em]g5cy measures 7,a7 ,9 g5]al ,pre-def9$1 tempor>y rules-bas$ cyb]security em]g5cy measures ex]cis$ by an incid5t-response or security c\ncil exclusively 9 response to a specific & docum5t$ cyb]security incid5t or imm95t ?reat & pursuant to publicly disclos$1 on-*a9 au?orization me*anisms1 /rictly limit$ 9 scope & duration solely to address su* specific & docum5t$ cyb]security incid5t or imm95t ?reat1 & )\t unilat]al control by any s+le p]son1 %all n1 by !mselves1 con/itute common control or an agreem5t1 arrangem5t1 or und]/&+ to act 9 conc]t1 provid$ t su* rules & au?orities1 includ+ ! proc$ures & op]ational limits gov]n+ su* em]g5cy measures1 are disclos$ 9 publicly available writt5 docum5tation reasonably available to ! applicable ,f$]al regulator1 by a dec5traliz$ gov]nance sy/em or simil> legal entity suffici5tly 9 advance ( any ex]cise ( su* em]g5cy p[]s4 7,b7 ,prohibition ,! em]g5cy measures describ$ 9 subp>agraph 7,a7 may n be us$ to implem5t protocol upgrades1 gov]nance decisions1 or economic *anges t are unrelat$ to ! mitigation ( ! applicable cyb]security incid5t or imm95t ?reat1 z describ$ 9 t subp>agraph4 7#c7 ,/&>ds ,! /&>ds crit]ia = tempor>y rules-bas$ cyb]security em]g5cy measures "u p>agraph 7#b7 %all be e/abli%$ by rulemak+ pursuant to subsection 7b74 #cjb4 ,illicit f9ance obligations = di/ribut$ l$g] messag+ sy/ems 7a7 ,def9itions ,9 ?is section3 7#a7 ,di/ribut$ l$g] messag+ sy/em ,! t]m di/ribut$ l$g] messag+ sy/em-- 7,a7 means a web-ho/$ s(tw>e application t provides a us] ) ! ability to create or submit an in/ruction1 communication1 or message to a di/ribut$ l$g] application or dec5traliz$ f9ance trad+ protocol = ! purpose ( execut+ a transaction by ! us]2 & 7,b7 does n include-- 7i7 a di/ribut$ l$g] application2 7ii7 a di/ribut$ l$g] protocol2 7iii7 a di/ribut$ l$g] sy/em2 7iv7 a dec5traliz$ f9ance trad+ protocol2 7v7 any cli5t1 node1 validator1 or o!r =m ( computational infra/ructure ) respect to a di/ribut$ l$g] sy/em2 or 7vi7 any s(tw>e or h>dw>e wallet t facilitates ! cu/ody ( an individual ( _! digital assets4 7#b7 ,unit$ ,/ates sanction law ,! t]m ,unit$ ,/ates sanction law means any ,f$]al law impos+1 or au?oriz+ ! imposition (1 economic sanctions4 7b7 ,guidance ,n lat] ?an #cfj days aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all issue guidance ) respect to ! economic sanctions & anti-money laund]+ & c\nt]+ ! f9anc+ ( t]rorism obligations1 risk managem5t practices1 or compliance consid]ations1 applicable to a di/ribut$ l$g] messag+ sy/em t is own$ or op]at$ by a ,unit$ ,/ates p]son1 z def9$ 9 any law impos+ or au?oriz+ ! imposition ( economic sanctions1 :i* may include-- 7#a7 ! use ( comm]cially reasonable di/ribut$ l$g]-analytics scre5+ measures1 ?r\gh indu/ry-/&>d di/ribut$ l$g]-analytics tools1 to id5tify wallet addresses t are own$ by sanction$ p]sons1 involve jurisdictions or f9ancial in/itutions subject to ,unit$ ,/ates sanctions1 or activity prohibit$ by ,unit$ ,/ates sanctions2 7#b7 block+1 reject+1 prev5t+ ! r\t+ (1 or o!rwise re/rict+ attempt$ transactions prohibit$ by ,unit$ ,/ates sanction laws2 7#c7 block+ or re/rict+ transactions t exhibit indicators ( ransomw>e activity1 illicit f9ance typologies1 or any o!r patt]n t pres5ts a significant & id5tifiable illicit f9ance risk bas$ on a comm]cially reasonable di/ribut$ l$g]-analytics assessm5t to id5tify transactions t involve ransomw>e activity & o!r illicit f9ance activity2 & 7#d7 implem5t+ & ma9ta9+ risk-bas$ measures1 consi/5t ) applicable law1 to id5tify1 mitigate1 & address anti-money laund]+ & c\nt]+ ! f9anc+ ( t]rorism risks1 includ+-- 7,a7 monitor+ = risk indicators & limit+ exposure to illicit-f9ance risks1 :i* may include re/rict+1 limit+1 or o!rwise mitigat+ exposure to high-risk transactions2 & 7,b7 comply+1 z applicable1 ) special measures implem5t$ by ! ,secret>y ( ! ,treasury "u section #ecah;,a ( title #ca1 ,unit$ ,/ates ,code4 7c7 ,en=cem5t & p5alties ,! ,secret>y ( ! ,treasury & any o!r ,f$]al ag5cy ) relevant jurisdiction h ! au?ority1 z applicable1 to en=ce ?is section us+ _! exi/+ au?orities1 z ( ! day be=e ! date ( enactm5t ( ?is ,act1 "u applicable law4 7d7 ,rules ( con/ruction ,no?+ 9 ?is section may be con/ru$ to-- 7#a7 alt] or am5d any laws impos+ or au?oriz+ imposition ( economic sanctions by ! ,unit$ ,/ates1 includ+ ^? t apply to ,unit$ ,/ates p]sons t own or op]ate a di/ribut$ l$g] messag+ sy/em2 7#b7 exp& or contract ! applicability (-- 7,a7 economic sanctions1 anti-money laund]+1 or any o!r illicit f9ance laws 9 effect z ( ! day be=e ! date ( enactm5t ( ?is ,act to any p]son1 includ+ any p]son t owns or op]ates a di/ribut$ l$g] messag+ sy/em2 or 7,b7 ! def9ition ( a f9ancial in/itution "u applicable laws1 :i* %all n apply to non-controll+ develop]s or provid]s z def9$ 9 section #fjd7;b77#c72 or 7#c7 re/rict ! au?ority ( ! ,secret>y ( ! ,treasury to implem5t1 adm9i/]1 & en=ce1 includ+ by impos+ civil money p5alties1 any law impos+ or au?oriz+ ! imposition ( economic sanctions or any law to prev5t money laund]+ or illicit f9ance o!rwise provid$ by ,f$]al law to ! ,secret>y ( ! ,treasury4 #cjc4 ,special measure relat+ to c]ta9 transmittals ( funds ,section #ecah;,a ( title #ca1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 subsection 7a77#b77;,c71 by /rik+ subsection 7b77#e7 & ins]t+ p>agraph 7#e7 or 7#f7 ( subsection 7b7 & 7#b7 9 subsection 7b71 by add+ at ! end ! foll[+3 7#f7 ,special measure = c]ta9 transmittals ( funds ,if ! ,secret>y ( ! ,treasury f9ds t a jurisdiction outside ( ! ,unit$ ,/ates1 #a or m f9ancial in/itutions op]at+ outside ( ! ,unit$ ,/ates1 or #a or m classes ( transactions )91 or involv+1 a jurisdiction outside ( ! ,unit$ ,/ates is ( prim>y money laund]+ conc]n 9 connection ) illicit f9ance ?r\gh ! use ( digital assets1 z def9$ 9 section #b ( ! ,,g5ius ,act 7#ab ,u4,s4,c4 #eija71 ! ,secret>y may1 by ord]1 regulation1 or o!rwise z p]mitt$ by law1 prohibit1 or impose conditions ^u1 c]ta9 transmittals ( funds 7to be def9$ by ! ,secret>y by regulation7 by any dome/ic f9ancial in/itution or dome/ic f9ancial ag5cy1 if su* transmittal ( funds involves any su* in/itution1 class ( transaction1 or type ( acc\nt4 4 #cjd4 ,(f%ore /ableco9 report 7a7 ,def9itions ,9 ?is section3 7#a7 ,mat]ial volume ( transactions ,! t]m mat]ial volume ( transactions means a su/a9$ level ( transaction activity t is-- 7,a7 publicly obs]vable2 7,b7 exce$s de m9imis usage ov] a #ab-mon? p]iod2 & 7,c7 is reasonably likely to affect ! illicit f9ance or national security risk exposure ( ! ,unit$ ,/ates4 7#b7 ,paym5t /ableco9 ,! t]m paym5t /ableco9 has ! mean+ giv5 ! t]m 9 section #b ( ! ,,g5ius ,act 7#ab ,u4,s4,c4 #eija74 7#c7 ,unit$ /ates-dep5d5t (f%ore /ableco9 ,! t]m ,unit$ ,/ates-dep5d5t (f%ore /ableco9 means a paym5t /ableco9-- 7,a7 t is n issu$ by a p]mitt$ paym5t /ableco9 issu] or any =eign paym5t /ableco9 issu] regi/]$ ) ! ,comptroll] 7z ^? t]ms are def9$ 9 section #b ( ! ,,g5ius ,act 7#ab ,u4,s4,c4 #eija772 7,b7 t is issu$ by a p]son op]at+ outside ( ! ,unit$ ,/ates2 & 7,c7 ! value ( :i* is support$ or back$ by a res]ve ( assets t has a sub/antial nexus to ! ,unit$ ,/ates1 :i* may include-- 7i7 obligations ( ! ,unit$ ,/ates1 includ+ ,unit$ ,/ates ,treasury securities & repur*ase agreem5ts back$ by ,unit$ ,/ates ,treasury securities & funds held z deposits at any bank subject to ! jurisdiction ( ! ,unit$ ,/ates2 7ii7 deposits ma9ta9$ at a bank+ entity or insur$ depository in/itution locat$ 9 ! ,unit$ ,/ates1 includ+ correspond5t or payable-?r\gh acc\nts2 7iii7 securities issu$ or gu>ante$ by ! ,unit$ ,/ates or any ag5cy or in/rum5tality !re(2 or 7iv7 assets cu/odi$1 cle>$1 or settl$ ?r\gh paym5t1 cle>+1 or settlem5t sy/ems locat$ 9 ! ,unit$ ,/ates4 7b7 ,report ,n lat] ?an ,june #cj ( ! second cal5d> ye> t beg9s aft] ! date ( enactm5t ( ?is ,act1 & e #d ye>s !reaft] = n m ?an #c reports1 ! ,secret>y ( ! ,treasury %all submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives1 & make available on ! website ( ! ,dep>tm5t ( ! ,treasury1 a report assess+ :e!r !re is cr$ible1 articulable1 & publicly supportable evid5ce ( significant illicit f9ance ?reats or vuln]abilities associat$ ) any ,unit$ ,/ates-dep5d5t (f%ore /ableco9 employ$ 9 a mat]ial volume ( transactions4 7c7 ,cont5ts ,ea* report requir$ "u subsection 7b7 %all include-- 7#a7 an assessm5t ( ! illicit f9ance risk ( ea* ,unit$ ,/ates-dep5d5t (f%ore /ableco9 employ$ 9 a mat]ial volume ( transactions2 7#b7 an assessm5t ( ! controls employ$ by ! issu]s ( ,unit$ ,/ates-dep5d5t (f%ore /ableco9s to address ! use ( su* /ableco9s 9 illicit f9ance1 z available2 7#c7 data & in=mation reg>d+ ! volume ( ,unit$ ,/ates-dep5d5t (f%ore /ableco9s assess$ to be employ$ 9 connection ) illicit f9ance1 z available2 7#d7 a g5]al description ( ! relation%ips betwe5 ,unit$ ,/ates-dep5d5t (f%ore /ableco9s & ! f9ancial sy/em ( ! ,unit$ ,/ates1 includ+ pr9cipal *annels ( int]action2 & 7#e7 su* o!r in=mation or analysis z ! ,secret>y ( ! ,treasury deems relevant to assess+ ! illicit f9ance risks ( ,unit$ ,/ates-dep5d5t (f%ore /ableco9s4 7d7 ,classifi$ annex ,ea* report requir$ "u subsection 7b7 %all be submitt$ 9 unclassifi$ =m1 b may conta9 a classifi$ annex4 7e7 ,national /rategy ,! report+ requirem5t "u subsection 7b7 may be met z "p ( ! national /rategy = combat+ t]rori/ & o!r illicit f9anc+ requir$ "u sections #bfa & #bfb ( ! ,c\nt]+ ,am]ica's ,adv]s>ies ,?r\gh ,sanctions ,act 7,public ,law #aae-dd2 #aca ,/at4 #icd7 = ! report+ ye>s4 7f7 ,rule ( con/ruction ,no?+ 9 ?is section may be con/ru$ to au?orize-- 7#a7 ! disclosure ( any in=mation t is protect$ f disclosure "u ,f$]al law2 & 7#b7 ! collection or use ( any in=mation o!r ?an publicly available data or in=mation lawfully obta9$ by ! ,dep>tm5t ( ! ,treasury "u exi/+ au?orities1 z ( ! day be=e ! date ( enactm5t ( ?is ,act4 #cje4 ,tempor>y hold = c]ta9 digital asset transactions 7a7 ,def9itions ,9 ?is section3 7#a7 ,cov]$ ag5cy ,! t]m cov]$ ag5cy means any ,/ate or ,f$]al law en=cem5t ag5cy1 includ+ ! ,dep>tm5t ( ! ,treasury4 7#b7 ,cov]$ p]son ,! t]m cov]$ p]son means a p]son t is-- 7,a7 a p]mitt$ paym5t /ableco9 issu]2 7,b7 a =eign paym5t /ableco9 issu] 7z def9$ 9 section #b ( ! ,,g5ius ,act 7#ab ,u4,s4,c4 #eija77 regi/]$ ) ! ,(fice ( ! ,comptroll] ( ! ,curr5cy pursuant to section #ah7;c7 ( t ,act 7#ab ,u4,s4,c4 #eiaf7;c772 or 7,c7 a digital asset s]vice provid]1 z t t]m is def9$ 9 section #b ( ! ,,g5ius ,act 7#ab ,u4,s4,c4 #eija74 7#c7 ,paym5t /ableco92 p]mitt$ paym5t /ableco9 issu] ,! t]ms paym5t /ableco9 & p]mitt$ paym5t /ableco9 issu] h ! mean+s giv5 ^? t]ms 9 section #b ( ! ,,g5ius ,act 7#ab ,u4,s4,c4 #eija74 7#d7 ,qualifi$ writt5 reque/ ,! t]m qualifi$ writt5 reque/ means a writt5 communication issu$ by an au?oriz$ (ficial ( a cov]$ ag5cy t-- 7,a7 id5tifies a specific wallet1 address1 acc\nt1 or transaction reasonably suspect$ ( be+ l9k$ to illicit activity2 7,b7 reque/s a cov]$ p]son initiate an action ) respect to ! specifi$ wallet1 address1 acc\nt1 or transaction reasonably suspect$ ( be+ l9k$ to illicit activity1 includ+ delay+ ! execution ( a transaction1 conv]sion1 or )drawal involv+ digital assets2 & 7,c7 includes a designat$ ag5cy contact4 7#e7 ,tempor>y hold ,! t]m tempor>y hold means a re/riction appli$ by a cov]$ p]son t delays execution ( a transaction1 conv]sion1 or )drawal involv+ digital assets = a reasonable p]iod ( "t1 n to exce$ #cj cal5d> days1 :i* may be ext5d$ = an additional #aej cal5d> days pursuant to a qualifi$ writt5 reque/4 7b7 ,protection f private causes ( action 7#a7 ,9 g5]al ,any cov]$ p]son t1 9 good fai? & 9 compliance ) ?is section1 or any p]son comply+ ) a tempor>y lawful ord] "u subsection 7c7 t1 volunt>ily implem5ts a tempor>y hold %all n be held liable pursuant to any ,f$]al or ,/ate private "r ( action = implem5t+ ! tempor>y hold1 provid$ t-- 7,a7 ! cov]$ p]son or o!r p]son1 z applicable-- 7i7 implem5ts ! tempor>y hold bas$ on a reasonable belief ! transaction1 conv]sion1 or )drawal relates to a violation or attempt$ violation ( ,/ate or ,f$]al law2 or 7ii7 implem5ts ! tempor>y hold aft] receiv+ a qualifi$ writt5 reque/ f a cov]$ ag5cy2 7,b7 ! cov]$ p]son-- 7i7 makes reasonable ef=ts to notify ! affect$ cu/om] ( ! tempor>y hold2 7ii7 reasonably det]m9es t notification w\ld imp$e actual or pot5tial law en=cem5t ef=ts2 or 7iii7 receives a qualifi$ writt5 reque/ f a cov]$ ag5cy t reque/s notification n be attempt$2 & 7,c7 ! cov]$ p]son notifies z soon z reasonably practicable an appropriate ,/ate or ,f$]al law en=cem5t ag5cy or ! ,f$]al ,trade ,commission1 provid$ t su* notification is n requir$ :5 ! cov]$ p]son has receiv$ a qualifi$ writt5 reque/ f a cov]$ ag5cy4 7#b7 ,docum5tation ,a cov]$ p]son %all-- 7,a7 ma9ta9 = ! #c-ye> p]iod foll[+ ! implem5tation ( a tempor>y hold docum5tation ( ! basis = apply+ a tempor>y hold2 & 7,b7 make available ! docum5tation describ$ 9 subp>agraph 7,a7 ^u ! reque/ ( a cov]$ ag5cy or ! ,f$]al ,trade ,commission4 7c7 ,compliance ) tempor>y lawful ord]s ,a p]mitt$ paym5t /ableco9 issu] %all comply ) any valid writ1 process1 ord]1 rule1 decree1 comm&1 or o!r requirem5t issu$ or promulgat$ "u ,f$]al law by a c\rt ( compet5t jurisdiction t-- 7#a7 requires a p]son to freeze or prev5t ! transf] ( paym5t /ableco9s2 7#b7 specifies ! paym5t /ableco9s or acc\nts subject to block+ ) reasonable p>ticul>ity2 & 7#c7 is subject to judicial or adm9i/rative review or appeal1 z provid$ by law4 7d7 ,rules ( con/ruction ,no?+ 9 ?is section may be con/ru$ to-- 7#a7 compel or require any cov]$ p]son to take action to freeze1 seize1 or block digital assets t is n o!rwise requir$ "u exi/+ ,f$]al or ,/ate law1 z 9 effect on ! day be=e ! date ( enactm5t ( ?is ,act2 7#b7 limit or alt] ! au?ority ( any gov]nm5t ag5cy1 includ+ ) respect to au?ority to pursue en=cem5t actions2 7#c7 limit or affect ! application (-- 7,a7 section #ecah7;g77#c7 ( title #ca1 ,unit$ ,/ates ,code1 & any regulation requir+ any f9ancial in/itution to report suspici\s activity2 or 7,b7 any lawful au?ority to seize or freeze assets pursuant to a lawful ord] or sanctions designation2 or 7#d7 limit ! ability ( a cov]$ p]son to apply a tempor>y hold to any wallet1 address1 acc\nt1 or transaction locat$ outside ! ,unit$ ,/ates4 7e7 ,report+ ,! ,attorney ,g5]al & ! ,f$]al ,trade ,commission may issue regulations or guidance relat+ to any notification by cov]$ p]sons pursuant to ?is section to ! ,dep>tm5t ( ,ju/ice & ! ,f$]al ,trade ,commission1 respectively4 #cjf4 ,volunt>y cyb]security program = dec5traliz$ f9ance trad+ protocols 7a7 ,def9itions ,9 ?is section3 7#a7 ,cov]$ activities ,! t]m cov]$ activities means ! activities describ$ 9 section #ae;,h7b7 ( ! ,securities ,ex*ange ,act ( #aicd1 z add$ by section #fja4 7#b7 ,dec5traliz$ f9ance trad+ protocol ,! t]m dec5traliz$ f9ance trad+ protocol has ! mean+ giv5 ! t]m 9 section #ae;,h7a7 ( ! ,securities ,ex*ange ,act ( #aicd1 z add$ by section #fja4 7#c7 ,director ,! t]m ,director means ! ,director ( ,,ni/4 7#d7 ,,ni/ ,! t]m ,,ni/ means ! ,national ,in/itute ( ,/&>ds & ,te*nology4 7b7 ,e/abli%m5t ( program ,! ,director %all1 9 consultation ) ! ,commission & ! ,commodity ,futures ,trad+ ,commission1 e/abli% a volunt>y program = ! adoption by p]sons develop+ dec5traliz$ f9ance trad+ protocols or engag+ 9 cov]$ activities ( applicable cyb]security /&>ds publi%$ by ,,ni/4 7c7 ,developm5t ( program crit]ia 7#a7 ,reque/ = in=mation ,! ,director %all issue a reque/ = in=mation 9 ! ,f$]al ,regi/] to ga!r input f exp]ts & indu/ry /akehold]s on-- 7,a7 cyb]security ?reats1 vuln]abilities1 & risks to dec5traliz$ f9ance trad+ protocols2 7,b7 audit+ & code security /&>ds1 includ+ be/ practices = code audits2 7,c7 consum] protection & code transp>5cy be/ practices on dec5traliz$ f9ance trad+ protocols2 & 7,d7 exi/+ ,,ni/ /&>ds1 z ( ! day be=e ! date ( enactm5t ( ?is ,act1 & _! applicability to dec5traliz$ f9ance trad+ protocols4 7#b7 ,report ,! ,director %all develop a report on ! s(tw>e developm5t ( dec5traliz$ f9ance protocols to assess te*nical input f p>agraph 7#a74 7#c7 ,publication ( program crit]ia ,aft] evaluat+ input provid$ "u p>agraph 7#a71 ! ,director %all release a special publication conta9+ a detail$ evaluation ( cyb]security be/ practices & exi/+ applicable /&>ds1 z ( ! day be=e ! date ( enactm5t ( ?is ,act1 = dec5traliz$ f9ance trad+ protocols1 to provide program crit]ia to s(tw>e develop]s & indu/ry /akehold]s "u ! volunt>y program1 :i* %all include a summ>y ( public comm5ts & responses z to h[ input 0 incorporat$4 7#d7 ,reque/s = revision 7,a7 ,9 g5]al ,aft] ! ,director publi%es ! program crit]ia "u p>agraph 7#c71 ! ,director %all issue a reque/ = comm5t 9 ! ,f$]al ,regi/] to ga!r input on ! workability ( ! program4 7,b7 ,petition ,! public may petition ! ,director to reevaluate c]ta9 aspects ( ! program crit]ia publi%$ "u p>agraph 7#c74 7#e7 ,program updates ,z ! te*nology und]p9n+ dec5traliz$ f9ance trad+ protocols evolves1 ! ,director %all update ! special publication "u p>agraph 7#c7 9 compliance ) subsection 7d74 7d7 ,program 7#a7 ,application ,a p]son seek+ evaluation ( a dec5traliz$ f9ance trad+ protocol or a cov]$ activity "u ! program e/abli%$ "u subsection 7b7 %all submit to ! ,director an application at su* "t & 9 su* mann] z ! ,director consid]s appropriate = purposes ( ! program4 7#b7 ,review ,9 c>ry+ out ! program e/abli%$ "u subsection 7b71 ! ,director %all review ea* application submitt$ by a p]son "u p>agraph 7#a7 ( ?is subsection4 7#c7 ,det]m9ation ,9 c>ry+ out a review "u p>agraph 7#b7 ( an application reg>d+ a dec5traliz$ f9ance trad+ protocol or cov]$ activity1 ! ,director %all det]m9e :e!r ! protocol or activity is 9 compliance ) exi/+ applicable /&>ds1 frameworks1 & guidel9es publi%$ by ! ,director "u subsection 7c74 7#d7 ,notice ,= ea* det]m9ation made "u p>agraph 7#c7 pursuant to an application by a p]son ( a dec5traliz$ f9ance trad+ protocol or cov]$ activity1 ! ,director %all transmit to ! p]son a notice ( ! det]m9ation4 7e7 ,b5efits ( program 7#a7 ,display ,a p]son t receives notice "u subsection 7d77#d7 t ! ,director has det]m9$ t a dec5traliz$ f9ance trad+ protocol or a cov]$ activity has adopt$ ! applicable cyb]security /&>ds publi%$ by ,,ni/1 ! p]son may publicly display a designation1 seal1 or o!r id5tifi] issu$ by ! ,director4 7#b7 ,treatm5t ( adoption ,9 adopt+ a regulation or guidance relat+ to ?is section1 a ,f$]al ag5cy %all consid] adoption ( cyb]security /&>ds "u ! program requir$ by subsection 7b7 z evid5ce ( good fai? compliance ) ! law4 7f7 ,rule ( con/ruction relat+ to preemption ,no?+ 9 ?is section may be con/ru$ to preempt any o!rwise applicable provision ( law ( a ,/ate4 #cjg4 ,am5dm5ts to monet>y in/rum5t def9ition 7a7 ,def9itions ,9 ?is section3 7#a7 ,self-ho/$ wallet ,! t]m self-ho/$ wallet means a digital int]face-- 7,a7 t is us$ to secure & transf] digital assets2 & 7,b7 "u :i* ! own] ( digital assets secur$ & transf]r$ "u subp>agraph 7,a7 reta9s indep5d5t control ov] ^? digital assets4 7#b7 ,unit$ /ates sanction law ,! t]m ,unit$ ,/ates sanction law has ! mean+ giv5 ! t]m 9 section #cjb7;a74 7b7 ,monet>y in/rum5ts ,section #ecab7;a77#c77;,d7 ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by ins]t+ 1 includ+ digital assets 7z def9$ 9 section #b ( ! ,,g5ius ,act 7#ab ,u4,s4,c4 #eija771 z may be applicable1 aft] value4 7c7 ,treasury risk assessm5t ,z "p ( ! national /rategy = combat+ t]rori/ & o!r illicit f9anc+ requir$ "u sections #bfa & #bfb ( ! ,c\nt]+ ,am]ica's ,adv]s>ies ,?r\gh ,sanctions ,act 7,public ,law #aae-dd2 #aca ,/at4 #icd71 ! ,secret>y ( ! ,treasury %all consid]-- 7#a7 illicit activity1 su* z money laund]+ & sanctions evasion1 involv+ self-ho/$ wallets2 7#b7 ! effectiv5ess ( & gaps 9 exi/+ 7z ( ! day be=e ! date ( enactm5t ( ?is ,act7 me?ods1 te*niques1 & /rategies us$ by regulat$ f9ancial in/itutions 9 detect+ illicit activity1 su* z money laund]+1 involv+ self-ho/$ wallets2 7#c7 any illicit actors1 includ+ nation /ate actors1 t pose a high risk ( facilitat+ illicit activity ?r\gh ! use ( self-ho/$ wallets2 7#d7 ! b5efits ( ! use ( self-ho/$ wallets to-- 7,a7 enhance us] privacy & civil lib]ties ?r\gh direct asset cu/ody2 & 7,b7 exp& f9ancial inclusion & access = communities und]s]v$ by traditional f9ancial in/itutions2 7#e7 end us] & c\nt]p>ty risks associat$ ) self-ho/$ wallets1 includ+ consum] fraud1 cyb]security1 & id5tity v]ification2 7#f7 ! use ( h>dw>e self-ho/$ wallets to smuggle digital assets = f9anc+ cross-bord] illicit activity2 7#g7 ! use ( h>dw>e self-ho/$ wallets = tax evasion & asset concealm5t2 & 7#h7 o!r consid]ations ! ,secret>y may det]m9e appropriate4 7d7 ,guidance ,! ,secret>y ( ! ,treasury may issue guidance = f9ancial in/itutions t transact ) self-ho/$ wallets bas$ on ! results ( ! rese>* on b5efits & risks requir$ "u subsection 7c71 :i* %all n-- 7#a7 require a regulat$ entity to collect1 ) respect to any transaction1 p]sonally id5tifiable in=mation ab\t ! controll] ( a self-ho/$ wallet :5 ! controll] is n bo? ! cu/om] ( ! regulat$ entity & a p>ty to su* transaction1 except z requir$ by ,f$]al law1 includ+ ,unit$ ,/ates sanctions laws & regulations or lawful process2 or 7#b7 be con/ru$ to h9d]1 re/rict1 or o!rwise impair ! au?ority ( any ,f$]al ag5cy to inve/igate1 detect1 c\nt]act1 or prev5t illegal activity4 #cjh4 ,risk managem5t /&>ds = digital asset int]m$i>ies 7a7 ,9 g5]al ,be=e conduct+ trad+ activity 7includ+ r\t+ ord]s & execut+ trades7 ?r\gh a dec5traliz$ f9ance trad+ protocol1 a digital asset int]m$i>y %all implem5t risk managem5t /&>ds z describ$ 9 subsection 7b7 ) respect to trad+ us+ t dec5traliz$ f9ance trad+ protocol4 7b7 ,requirem5ts ,! risk managem5t /&>ds applicable to a digital asset int]m$i>y %all be compris$ ( ! foll[+3 7#a7 ,conduct+ an effective risk analysis ) respect to ! dec5traliz$ f9ance trad+ protocol1 includ+-- 7,a7 money laund]+ & sanctions evasion risks1 includ+ :e!r trad+ w involve activity relat+ to a prim>y money laund]+ conc]n2 7,b7 fraud & m>ket manipulation2 7,c7 op]ational & cyb]security risk1 includ+ settlem5t2 & 7,d7 implem5t+ robu/ policies & proc$ures to mitigate ! risks id5tifi$ "u ?is p>agraph4 7#b7 ,disclos+ ! risks id5tifi$ "u p>agraph 7#a7 us+ pla9 language to cu/om]s4 7#c7 ,ma9ta9+ robu/1 risk-bas$ capability to detect m>ket manipulation1 fraud1 money laund]+1 & sanctions evasion occurr+ on ! dec5traliz$ f9ance trad+ protocol1 :i* may include ! use ( alt]native tools t w prop]ly t>get su* risks1 includ+ di/ribut$ l$g] analytics tools4 7#d7 ,implem5t+ an effective risk-bas$ proc$ure = det]m9+ :e!r to execute1 reject1 or susp5d an incom+ or outgo+ transaction relat+ to ! dec5traliz$ f9ance trad+ protocol1 z applicable1 includ+ a det]m9ation bas$ on suspect$ risk ( money laund]+1 sanctions evasion1 fraud1 or m>ket manipulation4 7#e7 ,consi/5t ) ?is subsection1 implem5t+ o!r reasonable /&>ds :i* may be requir$ by rule4 7c7 ,exam9ations 7#a7 ,compliance ,! ,commission or ! ,commodity ,futures ,trad+ ,commission1 or o!r appropriate self-regulatory organization1 %all v]ify compliance ) ! requirem5ts ( ?is section z "p ( a regul> exam9ation ( ! digital asset int]m$i>y at ! frequ5cy & "u ! conditions o!rwise provid$ by law or rule4 7#b7 ,rule ( con/ruction ,no?+ 9 ?is section may be con/ru$ to limit ! au?ority ( ! ,f9ancial ,crimes ,en=cem5t ,network or ! ,(fice ( ,=eign ,assets ,control f conduct+ exam9ations1 inve/igations1 or en=cem5t actions relat+ to ?is section z o!rwise provid$ by law4 7d7 ,rulemak+ ,rules %all be adopt$ to implem5t ?is section z foll[s3 7#a7 ,! ,dep>tm5t ( ! ,treasury1 9 consultation ) ! ,commission & ! ,commodity ,futures ,trad+ ,commission1 %all adopt rules to implem5t ! money laund]+ & sanctions evasion risk analysis /&>ds ( ?is section4 7#b7 ,! ,commission & ! ,commodity ,futures ,trad+ ,commission %all adopt rules to implem5t ?is section o!r ?an ! provisions describ$ 9 p>agraph 7#a74 7#c7 ,rules adopt$ "u ?is p>agraph %all be reasonably tailor$ to ! size ( ! applicable digital asset int]m$i>y & risks ( ! digital asset int]m$i>y t are reasonably kn[able to ! digital asset int]m$i>y4 #cji4 ,/udy on digital asset mix]s & tumbl]s 7a7 ,digital asset mix] & tumbl] def9$ ,9 ?is section1 ! t]m digital asset mix] & tumbl] means a sm>t contract1 or set ( sm>t contracts1 t obfuscate or elim9ate ! s\rce or o!r =ms ( id5tification ( ! hold] ( a digital asset1 includ+ by pool+ assets f diff]5t hold]s & r$i/ribut+ ^? assets among hold]s4 7b7 ,report ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives a report t analyzes ! foll[+ issues3 7#a7 ,curr5t 7z ( ! date on :i* ! report is submitt$7 typologies ( digital asset mix]s & tumbl]s & hi/orical transaction volume4 7#b7 ,e/imates ( ! p]c5tage ( transactions relat+ to digital asset mix]s & tumbl]s t are us$ by actors engag$ 9 illicit f9ance4 7#c7 ,e/imates ( ! reliance1 & f9ancial exposure1 ( c5traliz$ ex*anges & traditional f9ancial in/itutions to digital asset mix]s & tumbl]s1 & ! ext5t to :i* c5traliz$ ex*anges & traditional f9ancial in/itutions are adequately implem5t+ anti-money laund]+ & economic sanctions compliance ) respect to digital asset mix]s & tumbl]s4 7#d7 ,an assessm5t ( pot5tial non-illicit uses ( mix]s & tumbl]s describ$ 9 p>agraph 7#a71 includ+ privacy b5efits4 7#e7 ,an analysis ( regulatory approa*es employ$ by o!r jurisdictions relat+ to digital asset mix]s & tumbl]s4 7#f7 ,recomm5dations = legislation or regulation relat+ to digital asset mix]s & tumbl]s4 #caj4 ,,gao /udy on int]m$i>ies 9 =eign jurisdictions 7a7 ,9 g5]al ,! ,comptroll] ,g5]al ( ! ,unit$ ,/ates1 9 consultation ) ! ,secret>y ( ! ,treasury1 %all conduct a /udy to-- 7#a7 assess ! risks pos$ by digital asset int]m$i>ies t-- 7,a7 are prim>ily locat$ 9 =eign jurisdictions t lack regulatory requirem5ts t are sub/antially simil> to ! requirem5ts ( ! ,bank ,secrecy ,act2 & 7,b7 provide s]vices to ,unit$ ,/ates p]sons2 & 7#b7 provide any regulatory or legislative recomm5dations to address ! risks describ$ 9 p>agraph 7#a74 7b7 ,report ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all submit to ,congress a report conta9+ all f9d+s & det]m9ations made 9 c>ry+ out ! /udy requir$ "u subsection 7a74 #caa4 ,/udies on =eign adv]s>y activities 7a7 ,def9itions ,9 ?is section3 7#a7 ,=eign adv]s>y ,! t]m =eign adv]s>y means a =eign gov]nm5t or =eign non-gov]nm5t p]son det]m9$ by ! ,secret>y ( ,comm]ce to be a =eign adv]s>y "u section #gia4d7;a7 ( title #ae1 ,code ( ,f$]al ,regulations1 or any successor regulation4 7#b7 ,relevant congressional committees ,! t]m relevant congressional committees means-- 7,a7 ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate2 7,b7 ! ,committee on ,agriculture1 ,nutrition1 & ,=e/ry ( ! ,s5ate2 7,c7 ! ,select ,committee on ,intellig5ce ( ! ,s5ate2 7,d7 ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives2 7,e7 ! ,committee on ,agriculture ( ! ,h\se ( ,repres5tatives2 & 7,f7 ! ,p]man5t ,select ,committee on ,intellig5ce ( ! ,h\se ( ,repres5tatives4 7b7 ,treasury report ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury1 9 consultation ) ! ,commodity ,futures ,trad+ ,commission & ! ,commission1 %all conduct a /udy & submit a report to ! relevant congressional committees1 :i* may include a classifi$ annex1 t-- 7#a7 id5tifies any digital asset int]m$i>y t is controll$ by a gov]nm5t ( a =eign adv]s>y1 or by individuals or entities act+ at ! direction ( a =eign adv]s>y2 7#b7 det]m9es :e!r any gov]nm5t ( a =eign adv]s>y is collect+ trad+ data ab\t ,unit$ ,/ates p]sons 9 digital asset m>kets2 & 7#c7 evaluates :e!r any propriet>y intellectual prop]ty ( digital asset int]m$i>ies is be+ misus$ or /ol5 by any gov]nm5t ( a =eign adv]s>y4 7c7 ,,gao /udy & report ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,comptroll] ,g5]al %all conduct a /udy & submit a report to ! relevant congressional committees1 :i* may include a classifi$ annex1 t-- 7#a7 id5tifies any digital asset int]m$i>y t is own$ by a gov]nm5t ( a =eign adv]s>y1 or by individuals or entities act+ at ! direction ( a =eign adv]s>y2 7#b7 det]m9es :e!r any gov]nm5t ( a =eign adv]s>y is collect+ trad+ data ab\t ,unit$ ,/ates p]sons 9 digital asset m>kets2 & 7#c7 evaluates :e!r any propriet>y intellectual prop]ty ( digital asset int]m$i>ies is be+ misus$ or /ol5 by any gov]nm5t ( a =eign adv]s>y4 #cab4 ,treasury /udy on cyb]security /&>ds 7a7 ,/udy ,! ,secret>y ( ! ,treasury1 9 consultation ) ! ,director ( ! ,cyb]security & ,infra/ructure ,security ,ag5cy1 ! ,director ( ! ,national ,security ,ag5cy1 & ! ,director ( ! ,national ,in/itute ( ,/&>ds & ,te*nology1 %all conduct a /udy on cyb]security /&>ds applicable to digital asset sm>t contracts1 cu/ody1 key managem5t1 & sm>t contract deploym5t4 7b7 ,report 7#a7 ,9 g5]al ,n lat] ?an #cfe days aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y %all submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives a report conta9+-- 7,a7 ! f9d+s ( ! /udy "u subsection 7a72 & 7,b7 any legislative recomm5dations4 7#b7 ,classifi$ annex ,! report "u p>agraph 7#a7 may include a classifi$ annex1 z appropriate4 #cac4 ,/udies on f9ancial /ability risks ( dec5traliz$ f9ance trad+ & cr$it 9 digital commodity m>kets ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 & e #d ye>s !reaft] until #d consecutive reports h be5 issu$1 ! ,secret>y ( ! ,treasury1 ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 ! ,commission1 & ! ,commodity ,futures ,trad+ ,commission %all-- 7#a7 conduct a /udy exam9+-- 7,a7 ! role ( dec5traliz$ f9ance protocols 9 ! f9ancial sy/em1 includ+-- 7i7 ! functions ( su* protocols2 7ii7 ! use ( su* protocols to obta9 lev]age or f9anc+2 7iii7 ! effects ( su* protocols on ! pric+ & trad+ ( f9ancial in/rum5ts1 includ+ descriptions ( any l9kages betwe5 su* protocols & traditional f9ancial in/rum5t2 & 7iv7 ! types & volumes ( f9ancial activity conduct$ ?r\gh su* protocols2 7,b7 ! risks ( dec5traliz$ f9ance protocols to f9ancial /ability1 fair & ord]ly m>kets1 & o!rwise to ! f9ancial sy/em ( ! ,unit$ ,/ates1 :i* %all include a quantification ( ^? risks1 to ! ext5t possible2 7,c7 ! /rategies & gu>drails regulators & m>ket p>ticipants h us$ & are us+ to mitigate risks aris+ f ! use ( dec5traliz$ f9ance protocols2 & 7,d7 an assessm5t ( :e!r ! regulatory framework adequately controls any risk ) respect to dec5traliz$ f9ance protocols2 7#b7 conduct a sep>ate /udy exam9+ ! risks to f9ancial /ability & ord]ly m>kets aris+ f ! ext5sion & ma9t5ance ( cr$it ) respect to digital assets by digital asset s]vice provid]s1 includ+-- 7,a7 ! effect ( gaps 9 ! regulatory framework = cr$it ext5d$ on digital assets1 su* z risks aris+ f ! ext5sion & ma9t5ance ( cr$it on digital assets2 & 7,b7 ! int]connections betwe5 lev]age 9 ! m>ket = digital assets & ! f9ancial sy/em2 & 7#c7 submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate1 ! ,committee on ,agriculture1 ,nutrition1 & ,=e/ry ( ! ,s5ate1 ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives1 & ! ,committee on ,agriculture ( ! ,h\se ( ,repres5tatives a report on ! /udies conduct$ "u p>agraphs 7#a7 & 7#b71 :i*-- 7,a7 %all include legislative & regulatory recomm5dations1 z appropriate2 & 7,b7 may include a classifi$ annex4 ,,iv ,responsible bank+ innovation #dja4 ,p]missibility ( digital asset activities 7a7 ,def9itions ,9 ?is section3 7#a7 ,appropriate ,f$]al bank+ ag5cy2 ,/ate bank2 ,/ate bank sup]visor2 ,/ate memb] bank ,! t]ms appropriate ,f$]al bank+ ag5cy1 ,/ate bank1 ,/ate bank sup]visor1 & ,/ate memb] bank h ! mean+s giv5 ^? t]ms 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7#b7 ,cu/om]-driv5 transaction ,! t]m cu/om]-driv5 transaction-- 7,a7 means a transaction t is ent]$ into = a valid & indep5d5t bus9ess purpose ( a cu/om]2 & 7,b7 does n include a transaction1 ! pr9cipal purpose ( :i* is to deliv] to a f9ancial hold+ company1 insur$ ,/ate bank1 national bank1 or ,f$]al cr$it union assets t ! f9ancial hold+ company1 insur$ ,/ate bank1 national bank1 or ,f$]al cr$it union1 respectively1 c\ld n inve/ 9 directly4 7#c7 ,f$]al bran*2 ,/ate bran* ,! t]ms ,f$]al bran* & ,/ate bran* h ! mean+s giv5 ^? t]ms 9 section #a7;b7 ( ! ,int]national ,bank+ ,act ( #aigh 7#ab ,u4,s4,c4 #caja74 7#d7 ,f$]al cr$it union2 insur$ cr$it union ,! t]ms ,f$]al cr$it union & insur$ cr$it union h ! mean+s giv5 ^? t]ms 9 section #aja ( ! ,f$]al ,cr$it ,union ,act 7#ab ,u4,s4,c4 #ageb74 7#e7 ,f9ancial hold+ company ,! t]m f9ancial hold+ company has ! mean+ giv5 ! t]m 9 section #b ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahda74 7#f7 ,f9ancial subsidi>y ,! t]m f9ancial subsidi>y has ! mean+ giv5 ! t]m 9 section #eacf;,a7g77#c7 ( ! ,revis$ ,/atutes 7#ab ,u4,s4,c4 #bd;a74 7#g7 ,insur$ ,/ate bank ,! t]m insur$ ,/ate bank means a ,/ate bank1 ! deposits ( :i* are insur$ by ! ,f$]al ,deposit ,insurance ,corporation4 7#h7 ,national bank ,! t]m national bank means a national bank+ association4 7b7 ,au?oriz$ activities = f9ancial hold+ companies & f9ancial subsidi>ies 7#a7 ,9 g5]al ,a f9ancial hold+ company or f9ancial subsidi>y may use a digital asset or di/ribut$ l$g] sy/em to p]=m1 provide1 or deliv] any activity1 function1 product1 or s]vice t ! f9ancial hold+ company is o!rwise au?oriz$ by law to p]=m1 provide1 or deliv]4 7#b7 ,f9ancial 9 nature ,! activities describ$ 9 subsection 7g7 are f9ancial 9 nature1 or incid5tal to a f9ancial activity1 = purposes ( section #d7k7 ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahdc7k77 & section #eacf;,a7b7 ( ! ,revis$ ,/atutes 7#ab ,u4,s4,c4 #bd;a7b774 7#c7 ,rule ( con/ruction ,no?+ 9 ?is subsection may be con/ru$ to exempt ! p]=mance1 provision1 or deliv]y by a f9ancial hold+ company or f9ancial subsidi>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 di/ribut$ l$g] sy/em4 7c7 ,au?oriz$ activities = national banks 7#a7 ,9 g5]al 7,a7 ,au?oriz$ activities ,a national bank may use a digital asset or di/ribut$ l$g] sy/em to p]=m1 provide1 or deliv] any activity1 function1 product1 or s]vice t ! national bank is o!rwise au?oriz$ by law to p]=m1 provide1 or deliv]4 7,b7 ,bran*es ( =eign banks 7i7 ,f$]al bran*es ,consi/5t ) section #d7;b7 ( ! ,int]national ,bank+ ,act ( #aigh 7#ab ,u4,s4,c4 #cajb7;b771 ! activities au?oriz$ = a national bank "u subp>agraph 7,a7 & p>agraph 7#b7 %all be p]missible = a ,f$]al bran*1 subject to any limitations t w\ld apply to ^? activities pursuant to ! ,int]national ,bank+ ,act ( #aigh 7#ab ,u4,s4,c4 #caja et seq47 if ! activity 7 n p]=m$1 provid$1 or deliv]$ us+ a digital asset or di/ribut$ l$g] sy/em4 7ii7 ,rule ( con/ruction = ,/ate bran*es ,= ! purposes ( activities engag$ 9 by a ,/ate bran* z pr9cipal "u section #g7;h7 ( ! ,int]national ,bank+ ,act ( #aigh 7#ab ,u4,s4,c4 #caje7;h771 ! activities au?oriz$ "u clause 7i7 are p]missible activities ( a ,f$]al bran*4 7#b7 ,bus9ess ( bank+ & o!r au?oriz$ activities ,! activities describ$ 9 subsection 7g7 are au?oriz$ z "p ( ! bus9ess ( bank+ "u ! p>agraph designat$ z ! ,sev5? ( section #eacf ( ! ,revis$ ,/atutes 7#ab ,u4,s4,c4 #bd7 or "u o!r applicable law4 7#c7 ,rules ( con/ruction ,no?+ 9 ?is subsection may be con/ru$ to-- 7,a7 exempt ! p]=mance1 provision1 or deliv]y by a national bank ( an activity1 function1 product1 or s]vice f a prohibition1 re/riction1 regi/ration1 limitation1 or o!r requirem5t t w\ld apply if ! activity 7 n p]=m$1 provid$1 or deliv]$ us+ a digital asset or di/ribut$ l$g] sy/em by a national bank2 or 7,b7 exp& or contract ! mean+ ( op]ations are or h be5 requir$ by ! ,comptroll] ( ! ,curr5cy to be limit$ to ^? ( a tru/ company & activities relat$ !reto1 z t t]m is us$ 9 section #eafi7;a7 ( ! ,revis$ ,/atutes 7#ab ,u4,s4,c4 #bg7;a774 7d7 ,/ate banks ,! activities au?oriz$ "u subsection 7c7 are p]missible activities-- 7#a7 ( a national bank = purposes ( activities ( an insur$ ,/ate bank & any subsidi>y ( an insur$ ,/ate bank to engage 9 z pr9cipal "u subsections 7a7 & 7d7 ( section #bd ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahca;a72 & 7#b7 ( a ,/ate memb] bank1 & any subsidi>y ( a ,/ate memb] bank1 to engage 9 z pr9cipal4 7e7 ,au?oriz$ activities = ,f$]al cr$it unions 7#a7 ,9 g5]al ,a ,f$]al cr$it union may use a digital asset or di/ribut$ l$g] sy/em to p]=m1 provide1 or deliv] any activity1 function1 product1 or s]vice t ! ,f$]al cr$it union is o!rwise au?oriz$ by law to p]=m1 provide1 or deliv]4 7#b7 ,bus9ess ( cr$it unions ,! activities describ$ 9 subsection 7g7 are au?oriz$ z "p (1 or incid5tal to1 ! au?ority necess>y or requisite to c>ry on effectively ! bus9ess = :i* ,f$]al cr$it unions are incorporat$ "u p>agraph 7#ag7 ( section #ajg ( ! ,f$]al ,cr$it ,union ,act 7#ab ,u4,s4,c4 #ageg7ag774 7#c7 ,rule ( con/ruction ,no?+ 9 ?is subsection may be con/ru$ to exempt ! p]=mance1 provision1 or deliv]y by a ,f$]al cr$it union ( 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 di/ribut$ l$g] sy/em4 7f7 ,insur$ cr$it unions ,! activities au?oriz$ = a ,f$]al cr$it union "u subsection 7e77#a7 %all be p]missible = an insur$ cr$it union1 subject to au?orization by applicable ,/ate law4 7g7 ,activities describ$ ,! activities describ$ 9 ?is subsection are-- 7#a7 provid+ cu/odial1 fiduci>y1 or safekeep+ s]vices = digital assets2 7#b7 provid+ s]vices relat$ to cu/odial s]vices = digital assets1 includ+ /ak+1 facilitat+ digital asset l5d+1 di/ribut$ l$g] gov]nance s]vices1 & advanc+ funds = ! pur*ase ( digital assets or 9 respect ( di/ributions on digital assets2 7#c7 mak+ loans collat]aliz$ by digital assets2 7#d7 engag+ 9 paym5t activities involv+ digital assets1 includ+ facilitat+ cu/om] or pr9cipal paym5ts 9 connection ) o!rwise p]missible activities2 7#e7 op]at+ a node on a di/ribut$ l$g]2 7#f7 provid+ self-cu/odial wallet s(tw>e2 7#g7 engag+ 9 d]ivatives transactions1 includ+ relat$ h$g+ activities1 9 a mann] consi/5t ) section #g4ajcj ( title #ab1 ,code ( ,f$]al ,regulations1 z 9 effect z ( ! date ( enactm5t ( ?is ,act2 7#h7 provid+ brok]age s]vices ) respect to any digital asset1 includ+ cle>+ & execution s]vices1 :e!r alone or 9 comb9ation ) o!r p]missible activities2 7#i7 facilitat+ transactions 9 ! second>y m>ket = all types ( digital assets on ! ord] ( cu/om]s z a riskless pr9cipal to ! ext5t ( engag+ 9 a transaction 9 :i* a company1 aft] receiv+ an ord] to buy or sell a digital asset f a cu/om]1 pur*ases or sells ! digital asset = its own acc\nt to (fset a contemporane\s sale to or pur*ase f ! cu/om]2 7#aj7 hold+ z pr9cipal digital assets = :i* ! bank+ entity anticipates a reasonably =eseeable ne$ to ! ext5t incid5tal to an o!rwise p]missible activity1 :i* %all include hold+ digital assets z pr9cipal 9 ord] to pay fees aris+ f int]actions ) a di/ribut$ l$g] sy/em or = ! purposes ( risk managem5t1 treasury s]vices1 liquidity managem5t or trade or m>g9 settlem5t or simil> purposes1 subject to ! o!rwise applicable limitations on ! activities ( a bank+ entity pursuant to section #ac ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahea7 & only to ! ext5t t ! t]ms & prohibitions ( t section apply to a transaction2 & 7#aa7 und]writ+1 deal+ 91 or mak+ a m>ket 9 digital assets 9 cu/om]-driv5 transactions1 includ+ relat$ h$g+ activities 9 connection ) ^? cu/om]-driv5 transactions1 subject to ! o!rwise applicable limitations on ! activities ( a bank+ entity pursuant to section #ac ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahea7 & only to ! ext5t t ! t]ms & prohibitions ( t section apply to a transaction4 7h7 ,o!r requirem5ts ,!re %all be no o!r prior notice or approval requirem5ts to engage 9 ! activities describ$ 9 subsections 7b7 ?r\gh 7g7 ( ?is section o!r ?an ^? requir$ "u title ,,lxii ( ! ,revis$ ,/atutes1 ! ,act entitl$ ,an ,act to place au?ority ov] ! tru/ p[]s ( national banks 9 ! ,comptroll] ( ! ,curr5cy1 approv$ ,septemb] #bh1 #aifb 7#ab ,u4,s4,c4 #ib;a et seq471 ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #bba et seq471 or ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahda et seq47 & ! regulations promulgat$ "u ^? ,acts4 7i7 ,rule ( con/ruction ,no?+ 9 ?is section may be con/ru$ to-- 7#a7 exclude o!r possible p]missible activities t are n activities describ$ 9 subsection 7g72 7#b7 imply t inclusion ( an activity describ$ 9 subsection 7g7 means t ! activity is o!rwise imp]missible2 7#c7 limit ! au?ority ( an appropriate ,f$]al bank+ ag5cy to det]m9e t activities o!r ?an ^? activities describ$ 9 subsection 7g7 are p]missible = a ,f$]al cr$it union or au?oriz$ z "p ( ! bus9ess ( bank+1 or f9ancial 9 nature1 or incid5tal or complem5t>y !reto1 or o!r applicable law1 z applicable1 ?r\gh int]pretations1 guidance1 or rulemak+2 or 7#d7 limit ! au?ority ( an appropriate ,f$]al bank+ ag5cy1 or a ,/ate bank sup]visor1 to sup]vise & take en=cem5t action ) respect to an insur$ depository in/itution 7or1 to ! ext5t applicable1 a f9ancial hold+ company7 engag+ 9 a digital asset activity au?oriz$ by ?is section t ! appropriate ,f$]al bank+ ag5cy or ,/ate bank sup]visor1 z applicable1 det]m9es1 pursuant to applicable law1 to be an unsafe or uns\nd practice or a violation ( a law1 rule1 or regulation1 or any condition impos$ 9 writ+4 7j7 ,application ,! au?orities describ$ 9 ?is section %all n apply to nonfungible assets4 #djb4 ,jo9t rules = portfolio m>g9+ det]m9ations 7a7 ,9 g5]al ,! ,commodity ,futures ,trad+ ,commission & ! ,commission %all jo9tly issue rules to facilitate portfolio m>g9+ ( securities 7includ+ relat$ ext5sions ( cr$it71 security-bas$ swaps1 futures contracts = future deliv]y1 options on futures contracts = future deliv]y1 swaps1 & digital commodities1 or any subset !re(1 = p]sons regi/]$ ) ei!r su* ,commission1 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 7b7 ,process ,! rules requir$ to be jo9tly issu$ "u subsection 7a7 %all-- 7#a7 describe ! treatm5t ( any acc\nt to :i* ! rules relate1 & any assets t may be held !re91 9 a proce$+ "u title #aa1 ,unit$ ,/ates ,code1 ! ,securities ,inve/or ,protection ,act ( #aigj 7#ae ,u4,s4,c4 #gh;aaa et seq471 title ,,ii ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #echa et seq471 or any o!r applicable insolv5cy law ) respect to ! p]son c>ry+ ! acc\nt2 7#b7 be issu$ only if t issuance is 9 ! public int]e/ & provides = ! appropriate protection ( cu/om]s1 includ+ appropriate disclosures to ea* curr5t & pot5tial cu/om] conc]n+ ! treatm5t ( any acc\nt to :i* ! rules relate1 & any assets t may be held !re91 9 a proce$+ "u title #aa1 ,unit$ ,/ates ,code1 ! ,securities ,inve/or ,protection ,act ( #aigj 7#ae ,u4,s4,c4 #gh;aaa et seq471 title ,,ii ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #echa et seq471 or any o!r applicable insolv5cy law ) respect to ! p]son c>ry+ ! acc\nt2 7#c7 require ! ,commission & ! ,commodity ,futures ,trad+ ,commission to consid] ! public int]e/ (1 & ! protection ( inve/ors by1 ^? rules ?r\gh ! solicitation ( public comm5ts2 & 7#d7 require ! ,commission & ! ,commodity ,futures ,trad+ ,commission to-- 7,a7 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 & ,/ate bank sup]visors1 z appropriate2 & 7,b7 if ! rules p]ta9 to a securities acc\nt c>ri$ by a regi/]$ brok] or deal] t is a memb] ( ! ,securities ,inve/or ,protection ,corporation1 consult ) ! ,securities ,inve/or ,protection ,corporation4 #djc4 ,capital requirem5ts to address nett+ agreem5ts 7a7 ,def9itions ,9 ?is section1 ! t]ms depository in/itution hold+ company & insur$ depository in/itution h ! mean+s giv5 ^? t]ms 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7b7 ,capital requirem5ts ,n lat] ?an #cfj days aft] ! date ( enactm5t ( ?is ,act1 ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 ! ,comptroll] ( ! ,curr5cy1 & ! ,*air ( ! ,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 ( ! ,f$]al ,res]ve ,sy/em t address nett+ agreem5ts t provide = t]m9ation & close-out nett+ across multiple types ( f9ancial transactions1 consi/5t ) section #djb1 9 ! ev5t ( ! default ( a c\nt]p>ty4 #djd4 ,prohibit+ int]e/ & yield on paym5t /ableco9s 7a7 ,def9itions ,9 ?is section3 7#a7 ,affiliate ,! t]m affiliate means any entity t controls1 is controll$ by1 or is "u common control ) ano!r entity4 7#b7 ,commissions ,! t]m ,commissions means ! ,commission & ! ,commodity ,futures ,trad+ ,commission4 7#c7 ,comptroll]2 =eign paym5t /ableco9 issu]2 paym5t /ableco92 p]mitt$ paym5t /ableco9 issu] ,! t]ms ,comptroll]1 =eign paym5t /ableco9 issu]1 paym5t /ableco91 & p]mitt$ paym5t /ableco9 issu] h ! mean+s giv5 ^? t]ms 9 section #b ( ! ,,g5ius ,act 7#ab ,u4,s4,c4 #eija74 7#d7 ,cov]$ p>ty ,! t]m cov]$ p>ty means any digital asset s]vice provid]1 toge!r ) all ( its affiliates1 b 9 ea* case exclud+ any p]mitt$ paym5t /ableco9 issu] or =eign paym5t /ableco9 issu] regi/]$ ) ! ,comptroll]4 7#e7 ,deposit ,! t]m deposit has ! mean+ giv5 ! t]m 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7#f7 ,re/rict$ recipi5t ,! t]m re/rict$ recipi5t means a ,unit$ ,/ates p]son t is a cu/om] or us] ( a cov]$ p>ty4 7#g7 ,unit$ ,/ates p]son ,! t]m ,unit$ ,/ates p]son means a p]son t is a resid5t ( ! ,unit$ ,/ates or is organiz$ or incorporat$ "u ! laws ( ! ,unit$ ,/ates4 7b7 ,s5se ( ,congress ,x is ! s5se ( ,congress t-- 7#a7 depository in/itutions provide f9ancial s]vices t are integral to ! /r5g? ( ! economy ( ! ,unit$ ,/ates & t ! paym5t ( consid]ation by digital asset s]vice provid]s to ,unit$ ,/ates cu/om]s or us]s bas$ on _! paym5t /ableco9 balances 9 a mann] t is economically or functionally equival5t to ! paym5t ( int]e/ or yield on an int]e/-be>+ bank deposit may inhibit ! key functions ( depository in/itutions 9 ! economy ( ! ,unit$ ,/ates2 & 7#b7 paym5t /ableco9s repres5t a significant innovation 9 f9ancial infra/ructure t c /r5g!n ! ,unit$ ,/ates paym5ts sy/em & ! primacy ( ! ,unit$ ,/ates doll> & t activity-bas$ rew>ds & inc5tives ti$ to ! use ( paym5t /ableco9s & p>ticipation 9 di/ribut$ l$g] sy/ems are critical to enabl+ innovation1 competition1 & consum] adoption4 7c7 ,prohibition on int]e/ & yield 7#a7 ,9 g5]al ,no cov]$ p>ty %all1 directly or indirectly1 pay any =m ( int]e/ or yield 7:e!r 9 ca%1 tok5s1 or o!r consid]ation7 to a re/rict$ recipi5t-- 7,a7 solely 9 connection ) ! hold+ ( ! paym5t /ableco9s ( t re/rict$ recipi5t2 or 7,b7 on a paym5t /ableco9 balance 9 a mann] t is economically or functionally equival5t to ! paym5t ( int]e/ or yield on an int]e/-be>+ bank deposit4 7#b7 ,activity-bas$ or transaction-bas$ rew>ds & inc5tives p]mitt$ 7,a7 ,9 g5]al ,! prohibition "u p>agraph 7#a7 %all n apply ) respect to rew>ds or inc5tives bas$ on bona fide activities or bona fide transactions t are n economically or functionally equival5t to ! paym5t ( int]e/ or yield on an int]e/-be>+ bank deposit pursuant to ! regulations promulgat$ "u p>agraph 7#c74 7,b7 ,equival5ce to bank deposits ,except z p]mitt$ "u subp>agraph 7,a71 ! prohibition "u p>agraph 7#a7 %all apply to ! paym5t ( int]e/ or yield 7:e!r 9 ca%1 tok5s1 or o!r consid]ation7 by a cov]$ p>ty to a re/rict$ recipi5t 9 connection ) a loyalty1 promotional1 subscription1 or inc5tive program t is economically or functionally equival5t to ! paym5t ( int]e/ or yield on an int]e/-be>+ bank deposit4 7#c7 ,rulemak+ 7,a7 ,9 g5]al ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,commissions & ! ,secret>y ( ! ,treasury %all jo9tly promulgate regulations ?r\gh notice & comm5t rulemak+ to cl>ify ! circum/ances "u :i* ! prohibition & p]missible rew>ds & inc5tives 9 p>agraphs 7#a7 & 7#b7 %all apply4 ,su* rulemak+ %all include a non-exhau/ive li/ ( p]missible activity-bas$ or transaction-bas$ rew>ds or inc5tives1 includ+ paym5ts to re/rict$ recipi5ts 9 connection ) or 9 comp5sation = any ( ! foll[+1 provid$ su* paym5ts are n economically or functionally equival5t to ! paym5t ( int]e/ or yield on an int]e/-be>+ bank deposit3 7i7 ,a transaction1 paym5t1 transf]1 conv]sion1 remittance1 or settlem5t activity1 includ+ a rebate or inc5tive provid$ 9 connection ) ! acceptance or use ( a paym5t /ableco94 7ii7 ,provid+ liquidity = m>ket-m>k+ activity1 po/+ ( collat]al 9 connection ) trad+1 or o!rwise putt+ assets at cr$it or inve/m5t risk4 7iii7 ,! use ( any product or s]vice1 includ+ p>ticipation 9 gov]nance1 validation1 /ak+1 or a loyalty1 promotional1 subscription1 or inc5tive program4 7,b7 ,calculation by ref]5ce ,paym5ts to re/rict$ recipi5ts ( consid]ation1 rew>ds1 or b5efits t are p]missible pursuant to p>agraph 7#b7 & subp>agraph 7,a7 ( ?is p>agraph may be calculat$ by ref]5ce to a balance1 duration1 t5ure1 or any comb9ation ( ! =ego+4 7#d7 ,evasion ,x %all be unlawful = a cov]$ p>ty to violate ! prohibition "u p>agraph 7#a7 or rules promulgat$ pursuant to p>agraph 7#c74 ,a cov]$ p>ty may n circumv5t or evade su* prohibition or rules4 ,! ,commissions & ! ,secret>y may jo9tly issue su* rules z may be necess>y or appropriate to prev5t circumv5tion or evasion ( ! prohibition "u p>agraph 7#a7 or ! rules promulgat$ pursuant to p>agraph 7#c74 7#e7 ,good fai? reliance ,a cov]$ p>ty t /ructures a program 9 good fai? reliance on p>agraphs 7#b7 & 7#c7 %all n be subject to p5alties if a subsequ5t rulemak+ or adjudication det]m9es ! program falls outside p>agraphs 7#b7 & 7#c71 provid$-- 7,a7 ! cov]$ p>ty comes into compliance )9 #ij days ( su* det]m9ation2 & 7,b7 ! violation is n sub/antially simil> to a pa/ violation by ! cov]$ p>ty4 7d7 ,prohibition on specifi$ repres5tations 7#a7 ,c]ta9 m>ket+ practices ,no cov]$ p>ty %all repres5t t-- 7,a7 paym5t /ableco9s are inve/m5t products1 deposits1 back$ by ! full fai? & cr$it ( ! ,unit$ ,/ates1 gu>ante$ by ! ,unit$ ,/ates ,gov]nm5t1 subject to deposit insurance by ! ,f$]al ,deposit ,insurance ,corporation1 or subject to %>e insurance by ! ,national ,cr$it ,union ,adm9i/ration2 or 7,b7 any comp5sation 7:e!r 9 ca%1 tok5s1 or o!r consid]ation7 paid to a re/rict$ recipi5t 9 connection ) ! hold+1 use1 or ret5tion ( ! paym5t /ableco9s ( t re/rict$ recipi5t is-- 7i7 paid or g5]at$ by ! paym5t /ableco9 itself1 a p]mitt$ paym5t /ableco9 issu]1 or a =eign paym5t /ableco9 issu] regi/]$ ) ! ,comptroll]2 7ii7 risk-free or comp>able to int]e/ paid on a deposit2 or 7iii7 (f]$1 adm9i/]$1 or paid by a p]son o!r ?an ! cov]$ p>ty4 7#b7 ,mislead+ ,no cov]$ p>ty %all omit mat]ial in=mation necess>y to prev5t any m>ket+1 promotion1 or description describ$ 9 ?is subsection f be+ mislead+4 7e7 ,disclosures 7#a7 ,9 g5]al ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,commissions & ! ,secret>y ( ! ,treasury %all jo9tly promulgate rules requir+ cle> & conspicu\s disclosure1 9 pla9 ,engli%1 ( any comp5sation 7:e!r 9 ca%1 tok5s1 or o!r consid]ation7 paid by a cov]$ p>ty 9 connection ) ! hold+1 use1 or ret5tion ( ! paym5t /ableco9s ( a re/rict$ recipi5t 9 a mann] t is consi/5t ) subsection 7d74 7#b7 ,requirem5ts ,9 promulgat+ rules "u p>agraph 7#a71 ! ,commissions & ! ,secret>y ( ! ,treasury %all require t any requir$ disclosure ( comp5sation describ$ 9 t p>agraph1 & any relat$ t]m1 repres5tation1 or description-- 7,a7 is pres5t$ 9 a cle>1 factual1 nonpromotional1 & non-mislead+ mann]2 7,b7 cle>ly id5tifies ! circum/ances "u :i* su* comp5sation c be paid2 7,c7 cle>ly id5tifies ! p]son or p]sons responsible = (f]+1 adm9i/]+1 & pay+ su* comp5sation1 includ+ :e!r su* p]sons are affiliat$ ) ! issu] ( associat$ paym5t /ableco9s2 7,d7 outl9es all mat]ial t]ms ) respect to su* comp5sation2 & 7,e7 includes a /atem5t t paym5t /ableco9s are n inve/m5t products1 deposits1 back$ by ! full fai? & cr$it ( ! ,unit$ ,/ates1 gu>ante$ by ! ,unit$ ,/ates ,gov]nm5t1 subject to deposit insurance by ! ,f$]al ,deposit ,insurance ,corporation1 or subject to %>e insurance by ! ,national ,cr$it ,union ,adm9i/ration4 7#c7 ,prohibition ,aft] ! date on :i* ! rules promulgat$ "u p>agraph 7#a7 become effective1 no cov]$ p>ty %all m>ket ! (f]+ ( comp5sation 7:e!r 9 ca%1 tok5s1 or o!r consid]ation7 paid by su* cov]$ p>ty 9 connection ) ! hold+1 use1 or ret5tion ( ! paym5t /ableco9s ( a re/rict$ recipi5t unless ! cov]$ p>ty has provid$ ! disclosures requir$ "u ?is subsection4 7#d7 ,satisfaction ( requirem5t ,a cov]$ p>ty t provides ! disclosures requir$ "u ?is subsection %all be deem$ n to h made a repres5tation t is prohibit$ "u subsection 7d71 provid$ t-- 7,a7 any m>ket+1 promotion1 or description ) respect to ! applicable comp5sation does n contradict ^? disclosures2 & 7,b7 ^? disclosures are pres5t$ 9 pla9 ,engli% & 9 a cle> & conspicu\s mann]4 7f7 ,p5alty 7#a7 ,civil monet>y p5alty ,:oev] kn[+ly & willfully p>ticipates 9 a violation ( subsection 7c77#a71 7d77#a71 7d77#b71 or 7e77#c71 or rules issu$ "u subsection 7c77#d71 %all be subject to a civil monet>y p5alty by ! ,dep>tm5t ( ! ,treasury ( n m ?an #e1jjj1jjj = ea* su* violation4 7#b7 ,det]m9ation ( ! numb] ( violations ,= purposes ( det]m9+ ! numb] ( violations = ?is subsection1 sep>ate acts ( noncompliance are a s+le violation :5 ! acts are a result (-- 7,a7 a common or sub/antially ov]lapp+ orig9at+ cause2 or 7,b7 ! same /atem5t or publication4 7g7 ,ref]ral to ,secret>y ( ! ,treasury ,if ! ,commission or ! ,commodity ,futures ,trad+ ,commission has reason to believe t any cov]$ p>ty has kn[+ly & willfully violat$ subsection 7c77#a71 7d77#a71 7d77#b71 or 7e77#c71 or rules issu$ "u subsection 7c77#d71 ! ,commission or ! ,commodity ,futures ,trad+ ,commission1 z applicable1 %all ref] ! matt] to ! ,secret>y ( ! ,treasury4 7h7 ,report to ,congress ,n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act1 ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 ! ,comptroll] ( ! ,curr5cy1 ! ,f$]al ,deposit ,insurance ,corporation1 ! ,national ,cr$it ,union ,adm9i/ration1 & ! ,secret>y ( ! ,treasury %all jo9tly submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives a report on paym5t /ableco9 activity t-- 7#a7 analyzes & quantifies-- 7,a7 ! adoption ( ,unit$ ,/ates doll>-d5om9at$ paym5t /ableco9s & ( o!r paym5t /ableco9s issu$ by p]mitt$ paym5t /ableco9 issu]s & =eign paym5t /ableco9 issu]s regi/]$ ) ! ,comptroll]2 7,b7 ! effect ( ,unit$ ,/ates doll>-d5om9at$ paym5t /ableco9s on ! av]age yields (1 & dem& =1 ,unit$ ,/ates ,treasury securities ( v>i\s durations2 7,c7 ! effect ( ,unit$ ,/ates doll>-d5om9at$ paym5t /ableco9s on ! use ( ! doll> 9 global =eign ex*ange transactions1 global =eign ex*ange res]ves1 & global trade2 7,d7 ! effect ( ,unit$ ,/ates doll>-d5om9at$ paym5t /ableco9s on increas+ access to f9ancial s]vices = unbank$ & und]bank$ p]sons1 bo? dome/ically & globally2 7,e7 ! effect ( ,unit$ ,/ates doll>-d5om9at$ paym5t /ableco9s on paym5t co/s ( consum]s & m]*ants2 & 7,f7 ! adoption ( non-,unit$ ,/ates doll>-d5om9at$ /ableco9s1 includ+ =eign c5tral bank digital curr5cies1 & _! effect on ! use ( ! doll> 9 global =eign ex*ange transactions1 global =eign ex*ange res]ves1 & global trade2 7#b7 describes h[ comp5sation1 if any1 is paid by cov]$ p>ties to re/rict$ recipi5ts ) respect to ! paym5t /ableco9s ( re/rict$ recipi5ts1 includ+ ?r\gh rew>ds1 inc5tives1 or simil> programs2 & 7#c7 analyzes & quantifies ! effect ( any comp5sation describ$ 9 p>agraph 7#b7 & ! effect ( prohibitions on ! paym5t ( int]e/ or yield by cov]$ p>ties "u ?is ,act & by issu]s ( paym5t /ableco9s "u section #d7;a77#aa7 ( ! ,,g5ius ,act 7#ab ,u4,s4,c4 #eijc7;a77#aa77 on-- 7,a7 ! volume1 /ick9ess1 composition1 & conc5tration ( deposits at depository in/itutions1 includ+ any deposit outfl[s f depository in/itutions & ! ext5t to :i* community banks & cr$it unions are disproportionately affect$ !reby2 7,b7 net int]e/ m>g9 accru$ to depository in/itutions2 7,c7 ! av]age rate ( int]e/ paid to depositors at depository in/itutions2 7,d7 consum] & bus9ess access to cr$it2 7,e7 f9ancial arrangem5ts betwe5 depository in/itutions & digital asset s]vice provid]s & issu]s ( paym5t /ableco9s2 & 7,f7 ! items describ$ 9 p>agraph 7#a74 7i7 ,no deem+ ( paym5t ( int]e/ or yield ,= purposes ( ?is section1 a cov]$ p>ty %all n be deem$ to violate ! prohibition 9 subsection 7c7 solely because an unaffiliat$ ?ird p>ty indep5d5tly makes a paym5t ) respect to a paym5t /ableco91 unless ! cov]$ p>ty directs or ma9ta9s significant influ5ce ov] ! (f]+ ( su* consid]ation & ! (f]+ ( su* consid]ation w\ld o!rwise violate ! prohibition 9 subsection 7c74 7j7 ,cl>ification ( scope & regulatory au?ority 7#a7 ,comp5sation ,! prohibitions "u subsections 7c71 7d71 & 7e7 %all only apply to comp5sation paid 9 connection ) a paym5t /ableco9 or paym5t /ableco9 balance4 7#b7 ,o!r assets ,no?+ 9 ?is section %all be con/ru$ to au?orize ! ,commissions or ! ,secret>y ( ! ,treasury to regulate1 re/rict1 or prohibit ! paym5t ( any comp5sation paid 9 connection ) any asset o!r ?an a paym5t /ableco94 7k7 ,non-applicability ,no?+ 9 ?is section %all-- 7#a7 modify1 alt]1 or ext5d prohibitions on ! paym5t ( yield1 int]e/1 or consid]ation applicable to p]mitt$ paym5t /ableco9 issu]s or =eign paym5t /ableco9 issu]s1 includ+ "u section #d7;a77#aa7 ( ! ,,g5ius ,act 7#ab ,u4,s4,c4 #eijc7;a77#aa772 or 7#b7 prohibit ! disclosure by cov]$ p>ties ( tru?ful1 non-mislead+ factual in=mation or any in=mation o!rwise requir$ by ,f$]al law or regulation4 #dje4 ,exp&$ securities portfolio m>g9 acc\nts "u ! ,securities ,inve/or ,protection ,act ( #aigj 7a7 ,am5dm5ts ,! ,securities ,inve/or ,protection ,act ( #aigj 7#ae ,u4,s4,c4 #gh;aaa et seq47 is am5d$-- 7#a7 9 section #i7;a7 7#ae ,u4,s4,c4 #gh;fff-#c7;a77-- 7,a7 9 p>agraph 7#d71 by /rik+ & at ! end2 7,b7 9 p>agraph 7#e71 by /rik+ ! p]iod at ! end & ins]t+ 2 &2 & 7,c7 by add+ at ! end ! foll[+3 7#f7 no advance %all be made by ,,sipc to ! tru/ee to pay or o!rwise satisfy any net equity claim ( any cu/om] ) respect to any digital commodities or swaps held 9 an exp&$ securities portfolio m>g9 acc\nt4 2 7#b7 9 section #aj7;g7 7#ae ,u4,s4,c4 #gh;fff-#d7;g771 by /rik+ #af7ab7 & ins]t+ #af7ac72 & 7#c7 9 section #af 7#ae ,u4,s4,c4 #ghlll7-- 7,a7 by r$esignat+ p>agraphs 7#g7 ?r\gh 7#ad7 z p>agraphs 7#h7 ?r\gh 7#ae71 respectively2 7,b7 by ins]t+ aft] p>agraph 7#f7 ! foll[+3 7#g7 ,exp&$ securities portfolio m>g9 acc\nt ,! t]m exp&$ securities portfolio m>g9 acc\nt means a cu/om] acc\nt-- 7,a7 t is ma9ta9$ by a brok] or deal] regi/]$ ) ! ,commission2 7,b7 t includes positions 9 securities1 security-bas$ swaps1 futures contracts1 options on futures contracts1 swaps1 digital commodities1 or o!r f9ancial in/rum5ts1 or any comb9ation !re(1 z p]mitt$ by rule jo9tly issu$ by ! ,commission & ! ,commodity ,futures ,trad+ ,commission2 7,c7 t is subject to portfolio m>g9+ requirem5ts approv$ pursuant to section #djb ( ! ,digital ,asset ,m>ket ,cl>ity ,act2 & 7,d7 9 :i* m>g9 requirem5ts are det]m9$ on a risk-bas$1 portfolio-wide basis1 r ?an on an in/rum5t-by-in/rum5t basis4 2 & 7,c7 9 p>agraph 7#aj71 z s r$esignat$1 9 ! matt] foll[+ subp>agraph 7,l71 by /rik+ a transaction 9 ! portfolio m>g9+ acc\nt & ins]t+ ! portfolio m>g9+ acc\nt or exp&$ securities portfolio m>g9 acc\nt4 7b7 ,rules 7#a7 ,def9itions ,9 ?is subsection3 7,a7 ,exp&$ securities portfolio m>g9 acc\nt ,! t]m exp&$ securities portfolio m>g9 acc\nt has ! mean+ giv5 ! t]m 9 section #af ( ! ,securities ,inve/or ,protection ,act ( #aigj 7#ae ,u4,s4,c4 #ghlll71 z am5d$ by ?is section4 7,b7 ,,sipc ,! t]m ,,sipc means ! ,securities ,inve/or ,protection ,corporation4 7#b7 ,issuance ( rules ,not)/&+ any provision ( ! ,securities ,inve/or ,protection ,act ( #aigj 7#ae ,u4,s4,c4 #gh;aaa et seq471 9 jo9tly issu+ rules "u section #djb1 ! ,commission & ! ,commodity ,futures ,trad+ ,commission1 9 consultation ) ! ,,sipc & ! ,secret>y ( ! ,treasury1 %all issue rules relat+ to ! treatm5t "u t ,act ( securities 7includ+ relat$ ext5sions ( cr$it71 security-bas$ swaps1 contracts ( sale ( a commodity = future deliv]y1 options on contracts ( sale ( a commodity = future deliv]y1 swaps1 digital commodities1 ca%1 or o!r prop]ty 7to ! ext5t t su* in/rum5ts1 ca%1 or o!r prop]ty effectively h$ge or collat]alize a securities position7 held 9 an acc\nt (f]+ portfolio m>g9+ c>ri$ z a securities acc\nt by a regi/]$ brok] or deal] pursuant to an exp&$ securities portfolio m>g9 acc\nt to facilitate portfolio m>g9+ 9 a mann] t protects cu/om]s1 includ+ portfolio m>g9 cu/om]s1 :i* %all include rules relat+ to-- 7,a7 ! transf] ( acc\nts2 7,b7 ! allocation ( cu/om] prop]ty among cu/om]s2 7,c7 ! eligibility ( products & positions to be held 9 an exp&$ securities portfolio m>g9 acc\nt1 includ+ any disclosures to & any elections t may ne$ to be p]=m$ by cu/om]s2 7,d7 ! application ( cu/om] protection or segregation requirem5ts z betwe5 securities cu/om]s :o are & are n ma9ta9+ positions 9 an exp&$ securities portfolio m>g9 acc\nt2 7,e7 fur!r def9+ ! t]ms1 solely z relat+ to an exp&$ securities portfolio m>g9 acc\nt1 cu/om]1 cu/om] prop]ty1 & net equity1 z necess>y or appropriate to address non-securities & non-ca% positions & assets held 9 an exp&$ securities portfolio m>g9 acc\nt1 & 9 a mann] consi/5t ) subp>agraphs 7,a7 ?r\gh 7,d72 & 7,f7 any int]action betwe5 a securities acc\nt & an exp&$ securities portfolio m>g9 acc\nt1 includ+ any fund+ ( debits 9 "o type ( acc\nt by cr$its 9 ! o!r type ( acc\nt4 7#c7 ,process = issuance ( rules ,! requirem5ts ( section #djb7;b7 %all apply ) respect to ! rules issu$ "u ?is subsection4 7c7 ,effect ( rules ,an exp&$ securities portfolio m>g9 acc\nt may n be (f]$1 ma9ta9$1 or utiliz$ until ! f9al rules requir$ "u subsection 7b7 are issu$4 ,v ,responsible regulatory innovation #eja4 ,,cftc-,,sec ,micro-,innovation ,s&box 7a7 ,def9itions ,9 ?is section3 7#a7 ,commission ,! t]m ,commission means ei!r ( ! ,commissions1 z ! context requires4 7#b7 ,commissions ,! t]m ,commissions means ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission4 7#c7 ,eligible firm ,! t]m eligible firm means a p]son t is eligible to p>ticipate 9 ! ,s&box1 9 accordance ) ! requirem5ts "u ?is section4 7#d7 ,innovative ,! t]m innovative means new or em]g+ te*nology1 or a novel application ( te*nology1 includ+ artificial intellig5ce1 t-- 7,a7 provides a f9ancial product1 s]vice1 bus9ess model1 or deliv]y me*anism to ! public2 & 7,b7 lacks-- 7i7 a sub/antially comp>able1 widely available analogue 9 common use 9 ! ,unit$ ,/ates2 & 7ii7 an analog\s ,f$]al regulatory regime4 7#e7 ,p]son ,! t]m p]son means a p]son1 z def9$ 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a77 or section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a74 7#f7 ,s&box ,! t]m ,s&box means ! ,,cftc-,,sec ,micro-,innovation ,s&box e/abli%$ "u subsection 7b74 7#g7 ,self-regulatory organization ,! t]m self-regulatory organization means a self-regulatory organization1 z def9$ 9-- 7,a7 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a772 or 7,b7 section #a4eb7;a77#b7 ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulation4 7b7 ,e/abli%m5t ,n lat] ?an #cfj days aft] ! date ( enactm5t ( ?is ,act1 ! ,commissions %all1 by jo9t notice & comm5t rulemak+1 e/abli% a ,,cftc-,,sec ,micro-,innovation ,s&box to enable eligible firms to te/ innovative activities )9 ! ,unit$ ,/ates1 subject to-- 7#a7 applicable ,f$]al & ,/ate securities & commodities laws2 7#b7 o!r ,/ate laws t are n specific to ! regulation ( securities or commodities2 & 7#c7 ! limitations ( ?is section4 7c7 ,eligible firm 7#a7 ,9 g5]al ,a ,unit$ ,/ates-bas$ p]son %all be an eligible firm1 & %all be eligible to p>ticipate 9 ! ,s&box1 if ! p]son-- 7,a7 submits an application "u subsection 7e7 t is approv$ "u t subsection2 7,b7 seeks to conduct an eligible & lawful innovative activity 9 ! ,unit$ ,/ates2 7,c7 is n subject to-- 7i7 a /atutory disqualification1 z def9$ 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a772 7ii7 a disqualification "u section #h;a7#b7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #ab;a7#b772 or 7iii7 a disqualification "u ,/ate law2 7,d7 does n h a crim9al conviction = fraud2 7,e7 agrees to submit to ! jurisdiction & ov]sight ( ! ,commissions1 to ! ext5t t ! p]son is n subject to t jurisdiction or ov]sight1 = purposes (1 & :ile p>ticipat+ 91 ! ,s&box2 7,f7 designates to ! ,commissions an individual z a po9t ( contact ) respect to activities t ! p]son und]takes z an applicant & p>ticipant ) respect to ! ,s&box2 7,g7 employs n m ?an #be employees2 & 7,h7 has annual gross rev5ues ( n m ?an #aj1jjj1jjj 9 any fiscal ye>4 7#b7 ,application ( requirem5ts ,! requirem5ts "u p>agraph 7#a7 %all be satisfi$ dur+ ! entire p]iod 9 :i* an eligible firm p>ticipates 9 ! ,s&box4 7d7 ,eligible activities & activity ceil+s 7#a7 ,li/ ( eligible activities 7,a7 ,9 g5]al ,aft] provid+ notice & an opportunity = public comm5t1 ! ,commissions %all ma9ta9 & publi% a li/ ( eligible innovative activities1 :i* %all be-- 7i7 updat$ once e #b ye>s aft] provid+ notice & an opportunity = public comm5t2 7ii7 reasonably tailor$ to include activities t-- 7,i7 fur!r ! purposes ( ?is section2 & 7,,ii7 are consi/5t ) ! int]e/s ( ! public & ! protection ( inve/ors2 7iii7 suffici5tly flexible to accommodate evolv+ te*nological developm5ts1 includ+ di/ribut$ l$g]-bas$ products & s]vices2 & 7iv7 focus$ exclusively on activities = :i* specific provisions ( ! securities laws & commodities laws may create a mat]ial imp$im5t to ! propos$ innovative activity4 7,b7 ,id5tification ( requirem5ts 7i7 ,9 g5]al ,= ea* eligible innovative activity1 ! ,commissions %all1 consi/5t ) exi/+ 7z ( ! day be=e ! date ( enactm5t ( ?is ,act7 /atutory & regulatory prec$5t conc]n+ ! respective jurisdiction ( ea* ,commission1 id5tify ! requirem5ts t ea* ,commission w adm9i/]4 7ii7 ,jo9t jurisdiction ,) respect to an eligible innovative activity t is subject to ! jurisdiction ( bo? ,commissions1 ! rulemak+ "u subsection 7b7 %all specify :i* requirem5ts ea* ,commission w adm9i/] & any coord9at$ conditions ne$$ to protect inve/ors & m>ket integrity4 7#b7 ,activity ceil+s ,= ea* eligible innovative activity1 ! ,commissions %all1 aft] public input & consultation1 e/abli% individual cu/om] & monet>y ceil+s1 :i* %all provide t an eligible firm may n raise or commit m ?an #bj1jjj1jjj 9 aggregate cu/om]1 inve/or1 or c\nt]p>ty funds 9 connection ) ,s&box activities4 7#c7 ,annual p>ticipation cap ,ea* ( ! ,commissions may approve n m ?an #bj projects p] ye>4 7e7 ,application 7#a7 ,9 g5]al ,an eligible firm seek+ to p>ticipate 9 ! ,s&box %all submit to ! ,commission or ,commissions1 z applicable1 an application t-- 7,a7 describes ! propos$ innovative activity & ! desir$ outcomes2 7,b7 subject to approval ( ! applicable ,commission1 id5tifies ! provisions ( ! securities laws1 or ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq471 f :i* ! eligible firm proposes to be exempt dur+ ! p]iod 9 :i* ! eligible firm p>ticipates 9 ! ,s&box1 :i*-- 7i7 %all n include any ,f$]al or ,/ate anti-fraud law or any o!r law t is n specific to ! regulation ( securities or commodities2 & 7ii7 %all be subject to ! limitations ( ?is section2 7,c7 sets =? h[ relief f ! provisions ( law id5tifi$ "u subp>agraph 7,b7 is reasonably necess>y to engage 9 ! innovative activity2 7,d7 id5tifies mat]ial risks to inve/ors1 cu/om]s1 or m>ket integrity & h[ ! eligible firm w mitigate ^? risks2 7,e7 c]tifies t ! eligible firm w comply ) applicable ,f$]al & ,/ate anti-fraud laws2 7,f7 /ates an exit objective ( ! eligible firm involv+ action f ! applicable ,commission1 :i* may include regi/ration1 an exemptive ord]1 int]pretive guidance1 a no-action lett]1 or a rulemak+ petition1 toge!r ) mile/ones & metrics ! eligible firm w use to demon/rate read9ess = t exit2 7,g7 /ates ! agreem5t ( ! eligible firm to submit to ! jurisdiction & ov]sight ( ! ,commissions1 to ! ext5t t ! eligible firm is n o!rwise subject to t jurisdiction & ov]sight1 = purposes (1 & :ile p>ticipat+ 91 ! ,s&box2 7,h7 designates to ! ,commissions an individual z a po9t ( contact ) respect to activities t ! eligible firm und]takes z an applicant & p>ticipant ) respect to ! ,s&box2 & 7,i7 /ates ! agreem5t ( ! eligible firm to abide by any condition t ei!r ( ! ,commissions may impose = engag+ 9 an eligible innovative activity 9 ! ,s&box4 7#b7 ,deadl9e = decision ,n lat] ?an #ahj bus9ess days aft] ! date on :i* an eligible firm submits an application "u ?is subsection1 ! ,commission or ,commissions1 z applicable1 %all make a decision ) respect to ! application1 aft] :i* ! eligible firm submitt+ ! application may comm5ce eligible innovative activities 9 ! ,s&box unless ! application is d5i$4 7#c7 ,updates & /atus reports ,ea* eligible firm %all submit to ! ,commission or ,commissions1 z applicable1 on a semi-annual basis :ile p>ticipat+ 9 ! ,s&box1 an updat$ application t-- 7,a7 describes any mat]ial *anges to ! in=mation orig9ally provid$ "u p>agraph 7#a72 & 7,b7 reports ! progress ( ! eligible firm t[>d ! /at$ exit objective describ$ 9 p>agraph 7#a77;,f71 includ+ mile/ones a*iev$1 rema9+ imp$im5ts1 & any p5d+ reque/s = (ficial action be=e ! applicable ,commission or ! ,commissions4 7#d7 ,unr$act$ & r$act$ v]sions 7,a7 ,9 g5]al ,an eligible firm t submits an initial or updat$ application "u ?is subsection may submit to ! applicable ,commission or ! ,commissions an unr$act$ v]sion1 toge!r ) a reque/ = confid5tial treatm5t1 pursuant to proc$ures ! applicable ,commission %all e/abli% t are model$ on ! rules ( t ,commission relat+ to ! confid5tial treatm5t ( in=mation1 :i* %all include-- 7i7 = ! ,securities & ,ex*ange ,commission1 sections #bjj4hc1 #bcj4djf1 & #bdj4bd;b-#b ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulations2 & 7ii7 = ! ,commodity ,futures ,trad+ ,commission1 section #ade4i ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulations4 7,b7 ,omitt$ in=mation ,an eligible firm may omit in=mation grant$ confid5tial treatm5t "u subp>agraph 7,a7 f any public po/+ "u subsection 7h7 9 accordance ) ! proc$ures e/abli%$ "u subp>agraph 7,a74 7,c7 ,indication ( confid5tial in=mation ,any omission 9 a public po/+ "u subsection 7h7 %all be cle>ly indicat$ by brackets ) a prom95t leg5d /at+ t-- 7i7 confid5tial in=mation has be5 omitt$2 & 7ii7 an unr$act$ v]sion has be5 fil$ ) ! applicable ,commission or ! ,commissions4 7f7 ,duration ( p>ticipation 7#a7 ,duration ,except z provid$ 9 p>agraph 7#b71 an eligible firm may p>ticipate 9 ! ,s&box = a p]iod ( n m ?an #b ye>s1 provid$ t ! eligible firm does n exce$ ! ceil+s e/abli%$ "u subsection 7d77#b74 7#b7 ,ext5sion 7,a7 ,sole jurisdiction ,if an eligible innovative activity is subject only to ! jurisdiction ( #a ,commission1 t ,commission may ext5d p>ticipation by an eligible firm 9 ! ,s&box by n m ?an #a additional ye>1 if t ,commission det]m9es t ! eligible firm-- 7i7 is actively pursu+ ! exit objective describ$ 9 subsection 7e77#a77;,f7 9 good fai?2 7ii7 is mak+ demon/rable progress t[>d a*iev+ su* an exit2 & 7iii7 e/abli%es t su* an ext5sion is necess>y to a*ieve su* an exit4 7,b7 ,jo9t jurisdiction ,:]e an eligible innovative activity is subject to ! jurisdiction ( bo? ,commissions1 an ext5sion ( p>ticipation by an eligible firm 9 ! ,s&box by n m ?an #a additional ye> %all be by jo9t ord] ( ! ,commissions aft] mak+ ! f9d+s describ$ 9 clauses 7i7 ?r\gh 7iii7 ( subp>agraph 7,a74 7g7 ,conditions & en=cem5t 7#a7 ,conditions ,an eligible firm %all comply ) applicable regulatory conditions approv$ by ! applicable ,commission or ! ,commissions "u subsection 7e77#a77;,b71 :i* %all be consi/5t ) applicable ,f$]al & ,/ate anti-fraud laws4 7#b7 ,monitor+ ,! ,commissions %all monitor ,s&box activities & en=ce compliance ) applicable regulatory conditions & ,f$]al anti-fraud laws4 7#c7 ,coord9ation 7,a7 ,9 g5]al ,! ,commissions %all coord9ate sup]vision1 in=mation reque/s1 & exam9ations to avoid duplication :ile ea* ,commission reta9s full au?ority "u ! provisions ( law t su* ,commission adm9i/]s4 7,b7 ,coop]ation ) /ates ,! ,commissions may coop]ate ) any ,/ate 9 en=c+ compliance ) applicable regulatory conditions & ,f$]al & ,/ate anti-fraud laws ) respect to ! op]ation ( ! ,s&box4 7#d7 ,self-regulatory organizations ,ea* self-regulatory organization %all recognize & respect ,s&box conditions t are applicable to a p>ticipant 9 ! ,s&box4 7#e7 ,cessation ( activities ,! ,commissions may1 at any "t dur+ ! p>ticipation ( an eligible firm 9 ! ,s&box1 disqualify ! eligible firm f cont9u$ p>ticipation 9 ! ,s&box1 ord] ! eligible firm to cease engag+ 9 a p]mitt$ activity 9 ! ,s&box1 revoke a grant ( exemptive relief1 or impose additional or m /r+5t conditions on cont9u+ p>ticipation or engagem5t 9 a p]mitt$ activity 9 ! ,s&box1 if ! ,commissions f9d t ! eligible firm has fail$ to comply )-- 7,a7 ! requirem5ts ( ?is section2 7,b7 ! t]ms or conditions ( p>ticipation e/abli%$ by ! ,commissions2 or 7,c7 o!r applicable law4 7h7 ,public disclosure 7#a7 ,initial po/+ ,ea* eligible firm %all po/1 9 a prom95t location on a public website ( ! eligible firm1 ! in=mation requir$ "u subsection 7e77#a71 subject to confid5tial treatm5t "u subsection 7e77#d71 n lat] ?an ! date on :i* ! notice becomes effective "u subsection 7e77#c74 7#b7 ,updates ,ea* eligible firm %all po/1 9 ! same mann] z "u p>agraph 7#a71 ! in=mation requir$ "u subsection 7e77#c71 subject to confid5tial treatm5t "u subsection 7e77#d71 concurr5tly ) submission to ! applicable ,commission or ! ,commissions4 7#c7 ,disclosure requirem5ts ,ea* po/ "u ?is subsection %all satisfy ! disclosure requirem5ts ( bo? ,commissions :]e ! jurisdictions ( bo? ,commissions are implicat$4 7i7 ,use ( data by commissions ,ea* ,commission may collect & %>e data f ,s&box activities ) ! o!r ,commission to in=m p]man5t1 pr9ciples-bas$ regulatory frameworks t advance ! missions ( ! ,commissions4 7j7 ,publication by commissions ,n less frequ5tly ?an annually1 ea* ,commission %all publi% on ! public website ( ! ,commission a report summ>iz+ ! activities conduct$ "u ?is section1 includ+-- 7#a7 ! numb] & g5]al nature ( eligible firms p>ticipat+ 9 ! ,s&box2 7#b7 ! categories ( innovative activities te/$2 7#c7 ! impact ( ,s&box p>ticipation on innovation1 inve/or protection1 m>ket integrity1 & ! public int]e/2 7#d7 ! disclosures po/$ by eligible firms "u subsection 7h77#a72 & 7#e7 exit outcomes1 includ+ ! types ( relief reque/$ & actions tak5 by ! ,commissions4 7k7 ,relation%ip ( s&box p>ticipation to /ate law 7#a7 ,limit$ preemption = s&box p>ticipants ,?is section1 includ+ p>ticipation 9 ! ,s&box1 & any exemption or relief grant$ "u ?is section1 %all sup]s$e any ,/ate securities or commodities law requir+ regi/ration1 qualification1 or lic5s+ z a condition ( engag+ 9 an approv$ activity or o!rwise regulat+ t activity z a security or commodity4 7#b7 ,/ate en=cem5t pres]v$ ,no?+ 9 ?is section may be con/ru$ to prohibit or limit any ,/ate securities or commodities regulator1 any ,/ate bank regulator1 or any ,/ate law en=cem5t ag5cy f conduct+ an inve/igation or br++ an adm9i/rative1 civil1 or crim9al en=cem5t action "u-- 7,a7 a ,/ate law prohibit+ fraud or deceit1 or fraudul5t1 deceptive1 manipulative1 une?ical1 di%one/1 or o!r unlawful conduct or practices1 9 connection ) securities or securities transactions2 7,b7 ! anti-fraud provisions ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq47 or ,/ate commodities laws2 or 7,c7 any ,/ate law ( g5]al applicability1 includ+ su* a law relat+ to bank+1 consum] protection1 contracts1 prop]ty1 or crim9al conduct4 7#c7 ,notice fil+s ,a ,/ate may require notice ( any docum5t fil$ ) ei!r ( ! ,commissions 9 connection ) p>ticipation 9 ! ,s&box1 toge!r ) cons5t to s]vice ( process & reasonable fees1 consi/5t ) section #ah7;c7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #ggr7c774 #ejb4 ,int]national coop]ation 7a7 ,def9ition ,9 ?is section1 ! t]m ,commissions means ! ,commission & ! ,commodity ,futures ,trad+ ,commission4 7b7 ,coop]ation ,9 ord] to promote ,unit$ ,/ates lead]%ip 9 effective1 reciprocal1 & innovative global regulation ( digital assets1 & to advance ! /rategic economic & policy int]e/s ( ! ,unit$ ,/ates1 ! ,commissions1 z appropriate-- 7#a7 %all consult & coord9ate ) =eign regulatory au?orities or o!r relevant int]national organizations on ! application ( consi/5t int]national /&>ds ) respect to ! regulation ( digital assets2 7#b7 may ent] into su* in=mation %>+ arrangem5ts z may be det]m9$ to be necess>y or appropriate 9 ! public int]e/ or = ! protection ( inve/ors1 cu/om]s1 & us]s ( digital assets2 7#c7 %all pursue reciprocal arrangem5ts ) =eign regulatory au?orities t ensure ,unit$ ,/ates-bas$ digital asset firms1 ex*anges1 & infra/ructure provid]s receive treatm5t equival5t to t grant$ to =eign c\nt]p>ts op]at+ )9 ! ,unit$ ,/ates2 7#d7 %all advocate 9 int]national =a = ! developm5t & adoption ( te*nology-neutral1 op5 /&>ds t pres]ve lawful access to public di/ribut$ l$g] infra/ructure1 support doll>-d5om9at$ digital asset usage1 & safegu>d individual rights1 includ+ self-cu/ody & privacy2 & 7#e7 may1 z appropriate1 engage 91 at ! lea/1 coop]ative en=cem5t1 sup]visory coord9ation1 & jo9t te*nical assi/ance1 9 a mann] t promotes responsible innovation 9 digital f9ancial m>kets4 7c7 ,cross-bord] s&box ,! ,commissions may lev]age ! activities describ$ 9 p>agraphs 7#a7 ?r\gh 7#e7 ( subsection 7b7 to e/abli% or p>ticipate 9 cross-bord] regulatory s&boxes t build ^u ! ,,cftc-,,sec ,micro-,innovation ,s&box e/abli%$ pursuant to section #eja4 #ejc4 ,automat$ regulatory compliance /udy 7a7 ,def9itions ,9 ?is section3 7#a7 ,automat$ regulatory compliance ,! t]m automat$ regulatory compliance means ! use ( te*nology1 includ+ data /&>ds1 automation1 & di/ribut$ l$g] or sm>t contract functionality1 to automate1 tag1 or o!rwise /reaml9e regulatory report+1 disclosure1 sup]visory1 or o!r compliance obligations4 7#b7 ,innovative ,! t]m innovative has ! mean+ giv5 ! t]m 9 section #eja7;a74 7b7 ,/udy requir$ ,! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all1 9 consultation ) ! ,dep>tm5t ( ! ,treasury 7includ+ ! ,f9ancial ,crimes ,en=cem5t ,network1 ! ,(fice ( ,=eign ,assets ,control1 & ! ,(fice ( ,f9ancial ,rese>*71 ! ,(fice ( ! ,comptroll] ( ! ,curr5cy1 ! ,f$]al ,deposit ,insurance ,corporation1 ! ,national ,cr$it ,union ,adm9i/ration1 ! ,commission1 ! ,commodity ,futures ,trad+ ,commission1 ! ,bureau ( ,consum] ,f9ancial ,protection1 & ! ,f$]al ,h\s+ ,f9ance ,ag5cy1 c>ry out a /udy ( di/ribut$ l$g]-bas$ compliance tools t-- 7#a7 to ! ext5t feasible1 id5tifies & evaluates-- 7,a7 ! l&scape ( exi/+ 7z ( ! day be=e ! date ( enactm5t ( ?is ,act7 di/ribut$ l$g]-bas$ compliance tools =-- 7i7 /atutory & regulatory disclosures2 7ii7 real-"t report+ & audit-trail logg+2 & 7iii7 anti-money-laund]+ practices1 sanctions scre5+1 & cu/om]-id5tification *ecks2 7,b7 ! feasibility1 b5efits1 & risks ( all[+ regulat$ entities to satisfy applicable regulatory obligations ?r\gh on-*a91 code-bas$1 or o!r automat$ me*anisms2 7,c7 ! pot5tial = int]op]ability ) automat$ regulatory compliance me*anisms across & among ea* ( ^? ag5cies2 7,d7 ! data collection sy/ems ( ea* ( ^? ag5cies2 & 7,e7 /&>ds or taxonomies1 or o!r common data elem5ts1 if any1 t ^? ag5cies c\ld publi% or adopt to support ! int]op]ability describ$ 9 subp>agraph 7,c7 9 ord] to ensure consi/5cy & regulatory access2 7#b7 recomm5ds pilot programs1 guidance1 rule *anges1 or am5dm5ts to /atutes t w\ld be ne$$ to implem5t effective automat$ regulatory compliance approa*es & any o!r relat$ approa*es address$ 9 ! /udy2 7#c7 id5tifies ! co/s & b5efits to issu]s ( diff]5t sizes1 second>y m>ket int]m$i>ies1 regulators1 inve/ors1 & o!r applicable p>ties1 includ+ diff]5tial impacts on small] entities & options to r$uce ^? burd5s2 7#d7 b5*m>ks int]national ef=ts ) respect to automat$ regulatory compliance me*anisms & consults ) any appropriate ,/ate1 ,f$]al1 or =eign regulators2 & 7#e7 evaluates :e!r exi/+ 7z ( ! day be=e ! date ( enactm5t ( ?is ,act7 ov]sight1 en=cem5t1 & liability frameworks are suffici5t to-- 7,a7 ensure acc\ntability1 transp>5cy1 fairness1 & consum] protection2 & 7,b7 prev5t misuse ( di/ribut$ l$g]-bas$ compliance tools4 7c7 ,report ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all make publicly available a report t includes ! results ( ! /udy conduct$ "u subsection 7b74 #ejd4 ,report on legislative recomm5dations 7a7 ,def9itions ,9 ?is section3 7#a7 ,appropriate committees ( congress ,! t]m appropriate committees ( ,congress means-- 7,a7 ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate2 7,b7 ! ,committee on ,agriculture1 ,nutrition1 & ,=e/ry ( ! ,s5ate2 7,c7 ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives2 & 7,d7 ! ,committee on ,agriculture ( ! ,h\se ( ,repres5tatives4 7#b7 ,f$]al f9ancial regulator ,! t]m ,f$]al f9ancial regulator means-- 7,a7 ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em2 7,b7 ! ,commodity ,futures ,trad+ ,commission2 7,c7 ! ,dep>tm5t ( ! ,treasury2 7,d7 ! ,f$]al ,deposit ,insurance ,corporation2 7,e7 ! ,f$]al ,h\s+ ,f9ance ,ag5cy2 7,f7 ! ,national ,cr$it ,union ,adm9i/ration2 7,g7 ! ,(fice ( ! ,comptroll] ( ! ,curr5cy2 7,h7 ! ,bureau ( ,consum] ,f9ancial ,protection2 & 7,i7 ! ,commission4 7b7 ,requirem5t ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 & e #c ye>s !reaft] = a total ( n few] ?an #ab ye>s aft] ! date ( enactm5t ( ?is ,act1 ea* ,f$]al f9ancial regulator %all submit to ! appropriate committees ( ,congress a report t includes-- 7#a7 a description ( ! implem5tation ( ?is ,act & ! am5dm5ts made by ?is ,act 7includ+ ! adoption ( rules & guidance1 & ! approval or rejection ( applications submitt$1 "u ?is ,act & ! am5dm5ts made by ?is ,act71 :]e applicable to ! ,f$]al f9ancial regulator2 & 7#b7 any legislative recomm5dations = ! fur!r effective implem5tation ( ?is ,act & ! am5dm5ts made by ?is ,act4 #eje4 ,tok5ization ( securities 7a7 ,def9itions ,9 ?is section3 7#a7 ,tok5ization ,! t]m tok5ization means ! process ( creat+ a digital repres5tation ( all rights1 obligations1 or int]e/s 9 a tangible or intangible asset on a di/ribut$ l$g] or comp>able te*nology4 7#b7 ,tok5iz$ ,! t]m tok5iz$1 ) respect to an asset1 means t ! asset has und]gone tok5ization4 7b7 ,s5se ( ,congress ,x is ! s5se ( ,congress t ,/ates %\ld promptly consid] & adopt comm]cial law frameworks "u ! ,uni=m ,comm]cial ,code t provide cle> & uni=m rules = ! own]%ip1 control1 & en=ceability ( rights relat+ to digital assets4 7c7 ,/udy ,n lat] ?an #cfj days aft] ! date ( enactm5t ( ?is ,act1 ! ,commission %all conduct a compreh5sive /udy ( ! regulatory treatm5t ( tok5iz$ securities1 includ+ cu/ody /&>ds1 int]ag5cy coord9ation1 cross-bord] coord9ation1 & consum] protection4 7d7 ,p>ity 9 regulatory treatm5t 7#a7 ,9 g5]al ,subject to p>agraph 7#b71 a tok5iz$ security %all be treat$1 = all regulatory purposes1 z ! security t ! tok5iz$ security repres5ts1 except z o!rwise provid$ by-- 7,a7 section #ajf7;a72 or 7,b7 a rule1 regulation1 or ord] issu$ by ! ,commission4 7#b7 ,requirem5t ,a rule1 regulation1 or ord] describ$ 9 p>agraph 7#a77;,b7 may only be issu$ by ! ,commission to adapt ! mann] 9 :i* ! applicable regulatory requirem5ts are satisfi$1 to ! ext5t necess>y or appropriate-- 7,a7 9 light ( ! unique te*nological or o!r *>act]i/ics ( digital assets or sub/antially simil> te*nology2 & 7,b7 consi/5t )-- 7i7 :at is necess>y or appropriate 9 ! public int]e/2 & 7ii7 protect+ inve/ors1 ma9ta9+ fair1 ord]ly1 & effici5t m>kets1 & facilitat+ capital =mation4 7e7 ,prohibition on misrepres5tation ,any /atem5t or omission ) respect to any mat]ial fact t is made by a p]son 9 connection ) ! (f]1 sale1 or o!r repres5tation reg>d+ a tok5iz$ security %all be subject to ! securities laws1 includ+ applicable anti-fraud or anti-manipulation provisions "u ! securities laws4 7f7 ,ag5cy action = tok5iz$ securities 7#a7 ,9 g5]al ,! ,commission may issue rules gov]n+ tok5iz$ securities pursuant to ! requirem5ts ( ?is section4 7#b7 ,requirem5ts ,rules issu$ "u ?is subsection may address1 consi/5t ) sections #ajf & #ajg1 h[ requirem5ts applicable to an und]ly+ security apply to cu/ody1 books & records1 reconciliation ) transf] ag5ts or o!r recordkeep]s1 auditability1 settlem5t f9ality1 treatm5t ( *a9 reorganizations1 & o!r op]ational risks aris+ f ! use ( di/ribut$ l$g] te*nology or comp>able te*nology4 7g7 ,rule ( con/ruction reg>d+ en=cem5t ,no?+ 9 ?is section may be con/ru$ to prev5t ! ,commission f en=c+ ! anti-fraud & anti-manipulation provisions ( ! securities laws1 & ! rules issu$ "u ! securities laws1 ) respect to tok5iz$ securities1 provid$ t ! elem5ts ( ^? provisions are satisfi$4 7h7 ,sav+s clauses 7#a7 ,tok5iz$ security ,any asset t is a security "u ! securities laws %all n cease to be a security solely because ! asset is issu$1 record$1 repres5t$1 or transf]r$ us+ di/ribut$ l$g] te*nology or comp>able te*nology4 7#b7 ,effect on ,/ate law ,no?+ 9 ?is section may be con/ru$1 int]pret$1 or appli$ 9 a mann] t preempts1 sup]s$es1 invalidates1 or o!rwise affects any ,/ate prop]ty transf] rules1 laws1 regulations1 or common law pr9ciples relat+ to ! transf] or record+ ( real tangible or intangible assets or int]e/s !re94 7#c7 ,rulemak+s1 ord]s1 & o!r actions ,not)/&+ any o!r provision ( ?is section1 section #ajf %all apply to any rulemak+1 ord]1 or o!r action ( ! ,commission "u ?is section4 7#d7 ,no limit ( ability to (f] or sell ,no?+ 9 ?is section1 or any rule1 regulation1 or ord] promulgat$ "u ?is section1 may be con/ru$ to limit ! ability ( any p]son to (f] or sell any tok5iz$ security1 consi/5t ) ! securities laws4 #ejf4 ,volunt>y adoption ( ,national ,in/itute ( ,/&>ds & ,te*nology po/-quantum cryptography /&>ds 7a7 ,def9itions ,9 ?is section3 7#a7 ,appropriate congressional committees ,! t]m appropriate congressional committees means-- 7,a7 ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate2 7,b7 ! ,committee on ,agriculture1 ,nutrition1 & ,=e/ry ( ! ,s5ate2 7,c7 ! ,committee on ,comm]ce1 ,sci5ce1 & ,transportation ( ! ,s5ate2 7,d7 ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives2 7,e7 ! ,committee on ,agriculture ( ! ,h\se ( ,repres5tatives2 & 7,f7 ! ,committee on ,en]gy & ,comm]ce ( ! ,h\se ( ,repres5tatives4 7#b7 ,director ,! t]m ,director means ! ,"u ,secret>y ( ,comm]ce = ,/&>ds & ,te*nology4 7b7 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,te*nical /&>ds ) respect to digital assets ensure quality1 int]op]ability1 & reliability 9 products1 processes1 & s]vices & facilitate innovation4 7#b7 ,! digital asset ecosy/em %\ld h>ness /&>ds to solve coord9ation problems & fo/] innovation1 n ?r\gh regulation1 b ?r\gh volunt>y1 m>ket-driv5 measures4 7#c7 ,advances 9 quantum comput+ ?reat5 exi/+ 7z ( ! day be=e ! date ( enactm5t ( ?is ,act7 cryptographic /&>ds & ! security ( digital assets4 7c7 ,volunt>y adoption ,! ,director1 9 consultation ) ! ,secret>y ( ,homel& ,security & ! heads ( sector risk managem5t ag5cies1 z appropriate1 %all promote ! volunt>y adoption & deploym5t ( po/-quantum cryptography /&>ds1 includ+ by-- 7#a7 dissem9at+ & mak+ publicly available guidance & res\rces to help organizations adopt & deploy ^? /&>ds2 7#b7 provid+ te*nical assi/ance1 z practicable1 to entities t are at high risk ( quantum cryptography analytic attacks1 su* z entities det]m9$ to be critical infra/ructure or digital infra/ructure provid]s2 & 7#c7 conduct+ su* o!r activities det]m9$ necess>y by ! ,director to promote ! adoption & deploym5t ( ^? /&>ds across ! ,unit$ ,/ates4 7d7 ,indu/ry consultation ,9 implem5t+ subsection 7c71 ! ,director %all1 at a m9imum-- 7#a7 solicit regul> input f a broad range ( indu/ry /akehold]s reg>d+ ! feasibility & practical *all5ges ( adopt+ ! /&>ds describ$ 9 t subsection2 7#b7 facilitate ongo+ dialogue betwe5 ! ,national ,in/itute ( ,/&>ds & ,te*nology & indu/ry p>ticipants to id5tify1 assess1 & address b>ri]s to ! adoption ( ! /&>ds describ$ 9 t subsection2 7#c7 n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act1 & bi5nially !reaft] until #bjce1 submit to ! appropriate congressional committees a report on ! implem5tation ( t subsection1 includ+ /akehold] engagem5t ) respect to ^? actions & cont9u$ *all5ges 9 adopt+ ! /&>ds describ$ 9 t subsection2 & 7#d7 n lat] ?an #e ye>s aft] ! date ( enactm5t ( ?is ,act1 make available to ! public a report on /akehold] engagem5t & lessons le>n$ 9 implem5t+ t subsection4 #ejg4 ,int]national coord9ation to combat digital asset illicit f9ance 7a7 ,def9ition ,9 ?is section1 ! t]m ,/rategy means ! ,national ,/rategy to ,combat ,int]national ,digital ,asset ,illicit ,f9ance submitt$ "u subsection 7d74 7b7 ,int]ag5cy initiative ,! ,secret>y ( ! ,treasury1 9 coord9ation ) ! ,secret>y ( ,/ate1 ! ,attorney ,g5]al1 ! ,secret>y ( ,homel& ,security1 & ! heads ( su* o!r ,f$]al dep>tm5ts & ag5cies z ! ,presid5t may designate1 %all lead an int]ag5cy initiative to /r5g!n int]national coop]ation to prev5t ! misuse ( digital assets = illicit f9ance1 sanctions evasion1 t]rori/ f9anc+1 or o!r national-security ?reats4 7c7 ,objectives ,! initiative e/abli%$ "u subsection 7b7 %all-- 7#a7 engage =eign c\nt]p>ts1 includ+ f9ance m9i/ries1 c5tral banks1 & f9ancial intellig5ce units1 to promote anti-money-laund]+1 sanctions evasion1 & c\nt]-t]rori/ f9anc+ /&>ds applicable to digital asset activities1 consi/5t ) ,unit$ ,/ates /&>ds & ! framework e/abli%$ "u ! ,/rategy2 7#b7 enc\rage ! adoption & en=cem5t ( effective regulatory & sup]visory frameworks = digital asset s]vice provid]s to ensure transp>5cy & prev5t illicit use2 7#c7 id5tify & prioritize jurisdictions ( conc]n t pres5t significant risk ( facilitat+ illicit digital asset activity & develop coord9at$ diplomatic1 economic1 & law en=cem5t /rategies to address ^? risks2 7#d7 support te*nical assi/ance & capacity-build+ programs = p>tn] jurisdictions to enhance anti-money laund]+1 sanctions evasion1 & c\nt]-t]rori/ f9anc+ sup]vision1 en=cem5t1 & in=mation %>+ relat+ to digital assets2 & 7#e7 report annually to ,congress on progress made t[>d ! objectives describ$ 9 p>agraphs 7#a7 ?r\gh 7#d71 includ+ a li/ ( coop]ative & non-coop]ative jurisdictions & any recomm5dations = additional actions or sanctions4 7d7 ,national ,/rategy to ,combat ,int]national ,digital ,asset ,illicit ,f9ance ,n lat] ?an #bgj days aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury1 9 coord9ation ) ! ,secret>y ( ,/ate1 ! ,attorney ,g5]al1 & ! ,director ( ,national ,intellig5ce1 %all submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs1 ! ,committee on ,=eign ,relations1 & ! ,committee on ,homel& ,security & ,gov]nm5tal ,affairs ( ! ,s5ate1 & ! ,committee on ,f9ancial ,s]vices1 ! ,committee on ,=eign ,affairs1 & ! ,committee on ,homel& ,security ( ! ,h\se ( ,repres5tatives a ,national ,/rategy to ,combat ,int]national ,digital ,asset ,illicit ,f9ance1 :i* %all-- 7#a7 assess global vuln]abilities ) respect to ! digital assets framework set out 9 ! ,/rategy2 7#b7 set measurable goals & timel9es = multilat]al engagem5t ) respect to digital assets2 7#c7 recomm5d res\rce & /aff+ requirem5ts = ,treasury atta*es1 f9ancial intellig5ce liaisons1 & o!r p]sonnel necess>y to implem5t ! ,/rategy2 & 7#d7 id5tify /&>ds = combat+ money laund]+1 sanctions evasion1 & t]rori/ f9anc+ ) respect to digital asset activities applicable to =eign jurisdictions1 :i* %all be in=m$ by ,unit$ ,/ates law1 regulation1 & sup]visory /&>ds1 includ+ /&>ds relat+ to-- 7,a7 anti-money laund]+ & c\nt]+ ! f9anc+ ( t]rorism laws & regulations t id5tify1 prioritize1 & mitigate illicit f9ance ?reats1 includ+ prev5tive measures = f9ancial in/itutions & o!r entities cov]$ by ^? laws & regulations1 includ+ measures relat+ to cu/om] due dilig5ce1 recordkeep+1 int]nal controls1 & ! report+ ( suspici\s transactions2 7,b7 money laund]+ (f5ses1 asset seizure1 & confiscation to recov] proce$s ( crime2 7,c7 t]rori/ f9anc+ & prolif]ation-f9anc+ (f5ses & relat$ t>get$ f9ancial sanctions2 & 7,d7 regulation1 sup]vision1 & en=cem5t by compet5t au?orities1 includ+ f9ancial intellig5ce1 law en=cem5t1 & sanctions measures4 #ejh4 ,annual report on =eign digital asset trad+ volume1 compliance ) ,unit$ ,/ates /&>ds & rem$iation actions 7a7 ,9 g5]al ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 & annually !reaft] = a p]iod ( #d ye>s1 ! ,secret>y ( ! ,treasury %all submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives a report t-- 7#a7 li/s ! top #bj =eign jurisdictions by volume ( digital asset trad+ activity on =eign digital asset s]vice provid]s dur+ ! cal5d> ye> imm$iately prec$+ ! ye> ( ! report2 7#b7 assesses ! degree to :i* ea* =eign jurisdiction li/$ "u p>agraph 7#a7 has implem5t$ anti-money laund]+1 sanctions evasion1 & c\nt]-t]rori/ f9anc+ laws1 regulations1 or /&>ds applicable to digital asset activities consi/5t ) ! /&>ds & framework id5tifi$ "u ! ,national ,/rategy to ,combat ,int]national ,digital ,asset ,illicit ,f9ance submitt$ "u section #ejg2 & 7#c7 id5tifies =eign jurisdictions )-- 7,a7 mat]ial defici5cies 9 ! implem5tation or en=cem5t ( ! /&>ds describ$ 9 p>agraph 7#b72 & 7,b7 trad+ volumes t pres5t sy/emic illicit f9ance risk to ! ,unit$ ,/ates4 7b7 ,=m ,ea* report requir$ "u subsection 7a7 %all be submitt$ 9 unclassifi$ =m1 b may include a classifi$ annex1 z appropriate4 7c7 ,rem$iation & engagem5t report ,= ea* =eign jurisdiction id5tifi$ pursuant to subsection 7a77#c71 ! ,secret>y ( ! ,treasury %all include 9 ! applicable report-- 7#a7 a description ( bilat]al diplomatic1 regulatory1 or law en=cem5t engagem5ts und]tak5 dur+ ! cal5d> ye> imm$iately prec$+ ! ye> 9 :i* ! report is submitt$ to rem$y ! defici5cies ( ! =eign jurisdiction2 7#b7 a summ>y ( actions tak5 by ! ,unit$ ,/ates individually1 or 9 conjunction ) any applicable int]national body1 to id5tify high-risk or non-coop]ative jurisdictions ) respect to digital asset illicit f9ance1 includ+ public /atem5ts id5tify+ ^? jurisdictions & measures to support _! rem$iation2 7#c7 any commitm5ts obta9$ f ! =eign jurisdiction to address id5tifi$ defici5cies1 includ+ timel9ess & b5*m>ks2 & 7#d7 an assessm5t ( progress made t[>d full implem5tation ( ! /&>ds id5tifi$ "u ! ,national ,/rategy to ,combat ,int]national ,digital ,asset ,illicit ,f9ance submitt$ "u section #ejg4 #eji4 ,,ai innovation labs 7a7 ,def9itions 7#a7 ,,ai te/ project ,! t]m ,,ai te/ project means a f9ancial product1 s]vice1 or activity-- 7,a7 t makes sub/antial use ( artificial intellig5ce2 7,b7 t is1 or may be1 subject to a ,f$]al regulation or ,f$]al /atute2 & 7,c7 = :i* a regulat$ entity submits an application = ! waiv] or modification ( an applicable regulation subject to an alt]native compliance /rategy4 7#b7 ,appropriate f9ancial regulatory ag5cy ,! t]m appropriate f9ancial regulatory ag5cy means-- 7,a7 ! appropriate ,f$]al bank+ ag5cy1 z def9$ 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac71 ) respect to an in/itution describ$ 9 subsection 7q7 ( t section2 7,b7 ! ,bureau ( ,consum] ,f9ancial ,protection1 ) respect to a cov]$ p]son1 z def9$ 9 section #ajjb ( ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #edha71 t does n h an appropriate f9ancial regulatory ag5cy "u subp>agraph 7,a71 7,c71 or 7,d7 ( ?is p>agraph2 7,c7 ! ,national ,cr$it ,union ,adm9i/ration1 ) respect to an insur$ cr$it union1 z def9$ 9 section #aja ( ! ,f$]al ,cr$it ,union ,act 7#ab ,u4,s4,c4 #ageb72 & 7,d7 ! ,f$]al ,h\s+ ,f9ance ,ag5cy1 ) respect to-- 7i7 a ,f$]al ,home ,loan ,bank2 7ii7 ! ,f$]al ,home ,loan ,bank ,sy/em2 7iii7 ! ,f$]al ,national ,mortgage ,association2 & 7iv7 ! ,f$]al ,home ,loan ,mortgage ,corporation4 7#c7 ,artificial intellig5ce2 ,,ai ,! t]ms artificial intellig5ce & ,,ai h ! mean+ giv5 ! t]m artificial intellig5ce 9 section #ejjb ( ! ,national ,artificial ,intellig5ce ,initiative ,act ( #bjbj 7#ae ,u4,s4,c4 #idja74 7#d7 ,f9ancial product or s]vice ,! t]m f9ancial product or s]vice-- 7,a7 has ! mean+ giv5 ! t]m 9 section #ajjb ( ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #edha72 7,b7 includes-- 7i7 activities t are f9ancial 9 nature1 z def9$ 9 section #d7k77#d7 ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahdc7k77#d772 & 7ii7 any f9ancial product or s]vice provid$ by a p]son regulat$ by ! ,commission1 z def9$ 9 section #ajjb ( ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #edha72 & 7,c7 does n include ! bus9ess ( insurance4 7#e7 ,f9ancial regulatory ag5cy ,! t]m f9ancial regulatory ag5cy means-- 7,a7 ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em2 7,b7 ! ,f$]al ,deposit ,insurance ,corporation2 7,c7 ! ,(fice ( ! ,comptroll] ( ! ,curr5cy2 7,d7 ! ,bureau ( ,consum] ,f9ancial ,protection2 7,e7 ! ,national ,cr$it ,union ,adm9i/ration2 & 7,f7 ! ,f$]al ,h\s+ ,f9ance ,ag5cy4 7#f7 ,regulat$ entity ,! t]m regulat$ entity means an entity regulat$ by any f9ancial regulatory ag5cy4 7b7 ,use ( artificial intellig5ce by regulat$ f9ancial entities 7#a7 ,,ai innovation labs 7,a7 ,e/abli%m5t ,ea* f9ancial regulatory ag5cy %all e/abli%1 or id5tify an (fice1 division1 or dep>tm5t ( ! ag5cy t %all s]ve z1 an ,,ai ,innovation ,lab to enable regulat$ entities to exp]im5t ) ,,ai te/ projects )\t unnecess>y or unduly burd5some regulation or expectation ( en=cem5t actions1 pursuant to ! approval ( an application "u subp>agraph 7,b74 7,b7 ,applications 7i7 ,submission 7,i7 ,9 g5]al ,on & aft] ! date t is #a ye> aft] ! date ( enactm5t ( ?is ,act1 a regulat$ entity may submit to ! appropriate f9ancial regulatory ag5cy an application1 on a =m det]m9$ by ! appropriate f9ancial regulatory ag5cy1 to engage 9 an ,,ai te/ project ?r\gh ! ,,ai ,innovation ,lab e/abli%$ or id5tifi$ "u subp>agraph 7,a74 7,,ii7 ,cont5ts ,an application submitt$ "u subclause 7,i7 %all include-- 7aa7 a description ( ! ,,ai te/ project propos$ to be c>ri$ out by ! regulat$ entity2 7bb7 an alt]native compliance /rategy t-- 7,,aa7 id5tifies a regulation issu$ by ! appropriate f9ancial regulatory ag5cy t ! regulat$ entity reque/s be waiv$ or modifi$2 & 7,,bb7 proposes an alt]native me?od = ! regulat$ entity to comply ) ! regulation1 includ+ an explanation z to :y ! alt]native me?od is ess5tial to ! op]ation ( ! entity & h[ ! regulat$ entity w\ld effectively manage risks associat$ ) ! ,,ai te/ project2 7cc7 an explanation ( h[ "u ! /rategy describ$ 9 item 7aa71 ! ,,ai te/ project-- 7,,aa7 w\ld s]ve ! public int]e/1 improve consum] or inve/or access to a f9ancial product or s]vice1 or promote consum] or inve/or protection2 7,,bb7 w\ld enhance effici5cy or op]ations1 fo/] innovation or competitiv5ess1 improve risk managem5t & security1 or enhance regulatory compliance2 7,,cc7 w\ld n pres5t a sy/emic risk to ! f9ancial sy/em ( ! ,unit$ ,/ates2 7,,dd7 is consi/5t ) ! purposes ( ! anti-money laund]+ & c\nt]+ ! f9anc+ ( t]rorism obligations "u sub*apt] ,,ii ( *apt] #ec ( title #ca1 ,unit$ ,/ates ,code2 & 7,,ee7 w\ld n pres5t a national security risk to ! ,unit$ ,/ates2 7dd7 a propos$ date on :i* ! ,,ai te/ project w\ld t]m9ate & an explanation z to :y su* t]m9ation date w\ld be appropriate2 7ee7 propos$ limitations on ! size1 scope1 & gr[? ( ! ,,ai te/ project2 7ff7 a detail$ bus9ess plan2 & 7gg7 an e/imate ( ! economic impact ( ! ,,ai te/ project if approv$4 7,,iii7 ,jo9t applications ,two or m regulat$ entities may submit a jo9t application to ! same f9ancial regulatory ag5cy "u subclause 7,i74 7,,iv7 ,regulations ( o!r ag5cies 7aa7 ,9 g5]al ,a regulat$ entity may submit an application "u ?is subp>agraph t includes an alt]native compliance /rategy = a regulation issu$ or en=c$ by a f9ancial regulatory ag5cy t is n ! appropriate f9ancial regulatory ag5cy = ! regulat$ entity4 7bb7 ,requirem5ts ,an application describ$ 9 item 7aa7 %all be subject to ! same requirem5ts z an application describ$ 9 subclause 7,,ii71 except t-- 7,,aa7 ! regulat$ entity %all submit ! application to ! appropriate f9ancial regulatory ag5cy & ! f9ancial regulatory ag5cy t issu$ or en=ces ! regulation t is ! subject ( ! alt]native compliance /rategy2 & 7,,bb7 ! ,,ai te/ project may n take effect unless ! appropriate f9ancial regulatory ag5cy & any o!r f9ancial regulatory ag5cy t issu$ or en=ces ! regulation t is ! subject ( ! alt]native compliance /rategy jo9tly approve ! application us+ ! process describ$ 9 clause 7ii74 7,v7 ,notice ,a regulat$ entity t is regulat$ or sup]vis$ by m ?an #a f9ancial regulatory ag5cy %all provide notice ( any application submitt$ to ! appropriate f9ancial regulatory ag5cy "u ?is section to ea* f9ancial regulatory ag5cy by :i* x is regulat$ or sup]vis$ n lat] ?an #e bus9ess days aft] ! entity submits ! application to ! appropriate f9ancial regulatory ag5cy4 7ii7 ,ag5cy review 7,i7 ,9 g5]al ,except z provid$ 9 subclause 7,,iv71 n lat] ?an #abj days aft] ! date on :i* an application is submitt$ to ! appropriate f9ancial regulatory ag5cy "u clause 7i71 ! appropriate f9ancial regulatory ag5cy %all-- 7aa7 review ! application2 & 7bb7 submit to ! applicant 9 writ+ a det]m9ation ( ! ag5cy4 7,,ii7 ,approval 7aa7 ,9 g5]al ,if ! applicant %[s t x is m likely ?an n t ! application meets ! requirem5ts = e/abli%+ an alt]native compliance /rategy & satisfies ! /&>ds describ$ 9 items 7bb7 & 7cc7 ( clause 7i77,,ii71 ! ag5cy %all approve ! application & notify ! applicant 9 writ+ (-- 7,,aa7 ! regulation t is ! subject ( ! alt]native compliance /rategy2 7,,bb7 ! t]ms ( ! alt]native compliance /rategy = ! ,,ai te/ project2 7,,cc7 ! date on :i* ! ,,ai te/ project w t]m9ate2 7,,dd7 any limitations on ! size1 scope1 or gr[? ( ! ,,ai te/ project2 & 7,,ee7 any additional limitations or conditions on ! ,,ai te/ project1 z det]m9$ by ! appropriate f9ancial regulatory ag5cy4 7bb7 ,effect ( approval ,) respect to an ,,ai te/ project1 except z provid$ 9 item 7cc71 beg9n+ on ! date on :i* an application submitt$ "u clause 7i7 is approv$ & end+ on ! date describ$ 9 item 7aa77,,cc7-- 7,,aa7 ! appropriate f9ancial regulatory ag5cy may en=ce a regulation describ$ 9 item 7aa77,,aa7 only 9 ! mann] set out 9 ! alt]native compliance /rategy describ$ 9 item 7aa77,,bb72 & 7,,bb7 except z provid$ 9 subclause 7,,iii71 a f9ancial regulatory ag5cy t is n ! appropriate f9ancial regulatory ag5cy may n en=ce a regulation describ$ 9 item 7aa77,,aa74 7cc7 ,en=cem5t by ano!r f9ancial regulatory ag5cy ,) respect to an ,,ai te/ project1 a f9ancial regulatory ag5cy o!r ?an ! appropriate f9ancial regulatory ag5cy t approves an application "u clause 7i77,,iv7 may en=ce a regulation describ$ 9 item 7aa77,,aa7 if ! alt]native compliance /rategy describ$ 9 item 7aa77,,bb7 provides = en=cem5t by su* f9ancial regulatory ag5cy4 7dd7 ,rule ( con/ruction ,no?+ 9 ?is clause may be con/ru$ to limit ! au?ority ( a f9ancial regulatory ag5cy to take an en=cem5t action aga9/ a regulat$ entity ) respect to fraud or m>ket manipulation or = engag+ 9 an unsafe or uns\nd practice relat+ to an ,,ai te/ project4 7,,iii7 ,d5ial 7aa7 ,9 g5]al ,if an ag5cy d5ies an application submitt$ "u clause 7i71 ! ag5cy-- 7,,aa7 %all submit to ! applicant a writt5 notice expla9+ ! reason = d5ial2 & 7,,bb7 may n take an en=cem5t action relat$ to ! propos$ ,,ai te/ project aga9/ ! applicant e>li] ?an ! date t is #cj days aft] ! date on :i* ! ag5cy submits ! writt5 notice describ$ 9 subitem 7,,aa74 7bb7 ,resubmittals ,ea* "t an application submitt$ "u clause 7i7 is d5i$1 ! regulat$ entity-- 7,,aa7 may submit an am5d$ application aft] receiv+ fe$back f ! ag5cy mak+ su* d5ial2 & 7,,bb7 may n resubmit m ?an #b applications t are sub/antially simil> to ! d5i$ application4 7cc7 ,injunctive relief ,not)/&+ item 7aa77,,bb71 a f9ancial regulatory ag5cy1 by & ?r\gh its own attorneys1 may file a civil action 9 an appropriate ,unit$ ,/ates di/rict c\rt to enjo9 an active ,,ai te/ project if ! ag5cy det]m9es t ! ,,ai te/ project pres5ts an imm$iate dang] to consum]s or inve/ors or pres5ts a risk-- 7,,aa7 to f9ancial m>kets2 7,,bb7 9 ! case ( an ,,ai te/ project engag$ 9 by an insur$ depository in/itution or an insur$ cr$it union1 ( loss to a ,f$]al deposit or %>e insurance fund2 7,,cc7 ( a violation ( anti-money laund]+ & c\nt]+ ! f9anc+ ( t]rorism obligations "u sub*apt] ,,ii ( *apt] #ec ( title #ca1 ,unit$ ,/ates ,code2 or 7,,dd7 to ! national security ( ! ,unit$ ,/ates4 7,,iv7 ,ext5sion ,if ! f9ancial regulatory ag5cy ne$s additional "t1 ! ag5cy may ext5d ! approval deadl9e by #abj days4 ,aft] ! expiration ( ! #abj-;day ext5sion p]iod1 if ! ag5cy has n made a det]m9ation on ! application1 ! application w automatically be deem$ approv$ & effective4 7,v7 ,additional in=mation ,n lat] ?an ! initial or ext5d$ approval deadl9e1 z applicable1 a f9ancial regulatory ag5cy may reque/ additional in=mation f ! applicant4 7iii7 ,data security ,all data suppli$ by sponsors ( ,,ai te/ projects to a f9ancial regulatory ag5cy submitt$ "u ?is section %all be /or$ & ma9ta9$ 9 a secure mann] by ! f9ancial regulatory ag5cy1 consi/5t ) applicable data security /&>ds4 7iv7 ,regulations ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is ,act1 ea* f9ancial regulatory ag5cy %all promulgate regulations t-- 7,i7 %all be publi%$ 9 ! ,f$]al ,regi/] & provide a #fj-;day p]iod = public notice & comm5t2 7,,ii7 include-- 7aa7 proc$ures = modify+ ! ,,ai te/ projects t are approv$ by ! ag5cy2 7bb7 consequ5ces = failure to comply ) ! t]ms ( an alt]native compliance /rategy2 7cc7 a requirem5t t an ,,ai te/ project w t]m9ate n e>li] ?an #a ye> aft] ! ,,ai te/ project is approv$2 7dd7 proc$ures to ext5d ! t]m9ation date describ$ 9 item 7cc72 7ee7 proc$ures = confid5tiality2 & 7ff7 proc$ures = coord9at+ decisions relat+ to applications submitt$ jo9tly by multiple regulat$ entities or applications submitt$ to m ?an "o f9ancial regulatory ag5cy4 7#b7 ,report ,n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act1 & ea* ye> = #g ye>s !reaft]1 ea* f9ancial regulatory ag5cy %all submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives an annual report on ! outcomes ( ,,ai te/ projects4 ,a report "u ?is subsection may n include ! names ( p>ticipat+ entities or any propriet>y or confid5tial bus9ess in=mation4 ,a report "u ?is subsection %all include aggregat$ f9d+s1 tr5ds1 & lessons le>n$ f ! ,,ai te/ projects4 7#c7 ,rule ( con/ruction ,no?+ 9 ?is section may be con/ru$ to limit ! au?ority ( a f9ancial regulatory ag5cy to take an en=cem5t action aga9/ a regulat$ entity ) respect to fraud or m>ket manipulation relat+ to an ,,ai te/ project4 ,,vi ,protect+ s(tw>e develop]s & s(tw>e innovation #fja4 ,protect+ s(tw>e develop]s 7a7 ,am5dm5t to ! securities act ( #aicc ,! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;a et seq47 is am5d$ by ins]t+ aft] section #bg;,b 7#ae ,u4,s4,c4 #ggz-#b;a7 ! foll[+3 #bg;,c4 ,application to s(tw>e develop]s 7a7 ,di/ribut$ l$g] sy/em def9$ ,9 ?is section1 ! t]m di/ribut$ l$g] sy/em has ! mean+ giv5 ! t]m 9 section #b ( ! ,digital ,asset ,m>ket ,cl>ity ,act4 7b7 ,application to s(tw>e develop]s ,not)/&+ any o!r provision ( ?is ,act1 a p]son %all n be subject to ?is ,act & ! regulations promulgat$ "u ?is ,act solely bas$ on ! p]son engag+ 9 any ( ! foll[+ activities1 :e!r s+ly or 9 comb9ation1 9 relation to ! op]ation ( a di/ribut$ l$g] sy/em or any compon5t !re(3 7#a7 ,compil+ network transactions or relay+1 se>*+1 sequ5c+1 validat+1 or act+ 9 a simil> capacity4 7#b7 ,provid+ computational "w1 op]at+ a node or oracle s]vice1 or procur+1 (f]+1 or utiliz+ network b&wid?1 or provid+ o!r simil> incid5tal s]vices4 4 7b7 ,am5dm5t to ! securities ex*ange act ( #aicd ,! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 is am5d$ by ins]t+ aft] section #ae;,g 7#ae ,u4,s4,c4 #gho-#aa7 ! foll[+3 #ae;,h4 ,application to s(tw>e develop]s 7a7 ,def9itions ,9 ?is section3 7#a7 ,con/itute ,! t]m con/itute means to compile1 assemble1 integrate1 or o!rwise comb9e s(tw>e compon5ts into a complete s(tw>e sy/em4 7#b7 ,dec5traliz$ f9ance trad+ protocol 7,a7 ,9 g5]al ,! t]m dec5traliz$ f9ance trad+ protocol means a di/ribut$ l$g] sy/em ?r\gh :i* multiple p>ticipants c execute a f9ancial transaction-- 7i7 9 accordance ) an automat$ rule or algori?m t is pr$et]m9$ & non-discretion>y2 & 7ii7 )\t reliance on a p]son o!r ?an ! us] to ma9ta9 cu/ody or control ( ! digital assets subject to ! f9ancial transaction4 7,b7 ,exclusions 7i7 ,9 g5]al ,! t]m dec5traliz$ f9ance trad+ protocol does n include a di/ribut$ l$g] sy/em if-- 7,i7 a p]son or gr\p ( p]sons "u common control or act+ pursuant to an agreem5t to act 9 conc]t has ! au?ority1 directly or indirectly1 ?r\gh any contract1 arrangem5t1 und]/&+1 relation%ip1 or o!rwise1 to control or mat]ially alt] ! functionality1 op]ation1 or rules ( cons5sus or agreem5t ( ! di/ribut$ l$g] sy/em2 7,,ii7 ! di/ribut$ l$g] sy/em does n op]ate1 execute1 & en=ce its op]ations & transactions bas$ solely on pre-e/abli%$1 transp>5t rules encod$ directly )9 ! s\rce code ( ! di/ribut$ l$g] sy/em2 or 7,,iii7 a p]son or gr\p ( p]sons "u common control has ! unilat]al au?ority1 via op]ation ( ! di/ribut$ l$g] sy/em1 to re/rict1 c5sor1 or prohibit ! use ( ! di/ribut$ l$g] sy/em1 includ+ any applicable sy/em-bas$ us] activity4 7ii7 ,special rule ,= purposes ( clause 7i71 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#c7 ,deploy ,! t]m deploy means to br+ s(tw>e or h>dw>e onto a di/ribut$ l$g] sy/em = active use4 7#d7 ,digital asset2 di/ribut$ l$g] application2 di/ribut$ l$g] sy/em2 di/ribut$ l$g] protocol2 dec5traliz$ gov]nance sy/em2 sm>t contract ,! t]ms digital asset1 di/ribut$ l$g] application1 di/ribut$ l$g] sy/em1 di/ribut$ l$g] protocol1 dec5traliz$ gov]nance sy/em1 & sm>t contract h ! mean+s giv5 ^? t]ms 9 section #b ( ! ,digital ,asset ,m>ket ,cl>ity ,act4 7#e7 ,dec5traliz$ f9ance messag+ sy/em 7,a7 ,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+ protocol4 7,b7 ,additional requirem5ts ,! t]m dec5traliz$ f9ance messag+ sy/em does n include any sy/em t provides any p]son o!r ?an ! us] )-- 7i7 control ov] ! funds ( ! us]2 or 7ii7 ! au?ority to execute any ( ! transaction ( ! us]4 7b7 ,application to s(tw>e develop]s ,not)/&+ any o!r provision ( ?is ,act1 a p]son %all n be subject to ?is ,act & ! regulations promulgat$ "u ?is ,act solely bas$ on ! p]son engag+ 9 any ( ! foll[+ activities1 :e!r s+ly or 9 comb9ation1 9 relation to ! op]ation ( a di/ribut$ l$g] sy/em or any compon5t !re(3 7#a7 ,compil+ network transactions or relay+1 se>*+1 sequ5c+1 validat+1 or act+ 9 a simil> capacity4 7#b7 ,provid+ computational "w1 op]at+ a node or oracle s]vice1 or procur+1 (f]+1 or utiliz+ network b&wid?1 or provid+ o!r simil> incid5tal s]vices4 7#c7 ,develop+1 publi%+1 or con/itut+-- 7,a7 a di/ribut$ l$g] sy/em2 or 7,b7 s(tw>e or sy/ems t create or utilize h>dw>e or s(tw>e1 includ+ wallets or o!r sy/ems1 t facilitate ! ability ( a us] to keep1 safegu>d1 or h cu/ody ( ! digital assets or private keys ( ! us]4 7c7 ,rule ( con/ruction ,subsection 7b77#c7 does n ext5d to any activity cov]$ 9 any ( ! activities describ$ 9 subp>agraphs 7,a7 ?r\gh 7,d7 ( subsection 7d77#a71 includ+ activity tak5 foll[+ deploym5t ( su* s(tw>e or h>dw>e4 7d7 ,cl>ification 7#a7 ,9 g5]al ,! ,commission %all1 pursuant to notice & comm5t rulemak+1 cl>ify ! circum/ances "u :i* a p]son %all n be subject to ?is ,act by reason ( engag+ solely 9 #a or m ( ! foll[+ activities 9 relation to ! op]ation ( a dec5traliz$ f9ance trad+ protocol or any compon5t !re(3 7,a7 ,provid+ a us] int]face t enables a us] to read & access data4 7,b7 ,adm9i/]+1 ma9ta9+1 or o!rwise di/ribut+ a dec5traliz$ gov]nance sy/em relat+ to a dec5traliz$ f9ance trad+ protocol1 or a dec5traliz$ f9ance trad+ protocol4 7,c7 ,adm9i/]+1 ma9ta9+1 or o!rwise di/ribut+ a dec5traliz$ f9ance messag+ sy/em or op]at+ or p>ticipat+ 9 a sm>t contract-bas$ liquidity pool 9 a dec5traliz$ f9ance trad+ protocol4 7,d7 ,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 t facilitate ! ability ( a us] to keep1 safegu>d1 or ma9ta9 cu/ody ( ! digital assets or relat$ private keys ( ! us]4 7#b7 ,consid]ations ,9 provid+ ! cl>ification "u p>agraph 7#a7 ! ,commission %all-- 7,a7 ensure t ! rules are consi/5t ) ! purposes ( ! securities laws1 includ+ ! public int]e/1 ! protection ( inve/ors1 & ! ma9t5ance ( fair & ord]ly m>kets2 7,b7 provide t section #ajh7;a7 ( ! ,lummis-,gillibr& ,responsible ,f9ancial ,innovation ,act ( #bjbf %all apply to su* rules2 7,c7 protect ! rights ( s(tw>e develop]s1 publi%]s1 & us]s to create1 publi%1 & use code & s(tw>e 9 a mann] consi/5t ) ! ,fir/ ,am5dm5t to ! ,con/itution ( ! ,unit$ ,/ates2 & 7,d7 provide legal cl>ity = ! developm5t1 publication1 & op]ation ( di/ribut$ l$g] sy/ems & ! compon5ts !re9 9 a mann] consi/5t ) ! purposes ( ?is section4 7#c7 ,rule ( con/ruction ,no?+ 9 ?is subsection may be con/ru$ to grant ! ,commission au?ority ov] p]sons1 sy/ems1 s(tw>e1 or activities t d n o!rwise fall )9 ! jurisdiction ( ! ,commission "u ?is ,act1 or to create a presumption t any su* activity is subject to ?is ,act4 7e7 ,anti-,fraud1 anti-,manipulation1 & false report+ ,! det]m9ation t a p]son is n subject to ?is ,act "u subsections 7b7 & 7d7 %all n apply to ! anti-fraud1 anti-manipulation1 or false report+ en=cem5t au?orities ( ! ,commission4 7f7 ,rule ( con/ruction ,no?+ 9 ?is ,act or ! rules & regulations promulgat$ "u ?is ,act may be con/ru$ to apply any requirem5t ( ! securities laws to a digital commodity1 z def9$ 9 section #b ( ! ,digital ,asset ,m>ket ,cl>ity ,act1 or exp& ! au?ority ( ! ,commission beyond t :i* ! ,commission _h be=e ! date ( enactm5t ( ! ,digital ,asset ,m>ket ,cl>ity ,act to regulate ! activities describ$ 9 subsection 7d77#a74 7g7 ,f$]al preemption 7#a7 ,9 g5]al ,not)/&+ any o!r provision ( law1 no securities1 commodities1 or digital assets law ( any ,/ate 7or ( any political subdivision ( a ,/ate7 %all apply to an activity describ$ 9 subsection 7b74 7#b7 ,rule ( con/ruction ,no?+ 9 p>agraph 7#a7 may be con/ru$ to apply to ! anti-money laund]+1 anti-fraud1 or anti-manipulation au?orities ( a ,/ate 7or ( any political subdivision ( a ,/ate74 4 7c7 ,applicability ,?is section1 & ! am5dm5ts made by ?is section1 %all apply to conduct occurr+ be=e1 on1 or aft] ! date ( enactm5t ( ?is ,act4 #fjb4 ,safe h>bor = nonfungible tok5s 7a7 ,def9itions ,9 ?is section3 7#a7 ,nonfungible tok5 ,! t]m nonfungible tok5 means a digital asset record$ on a di/ribut$ l$g] t-- 7,a7 is individually id5tifiable & di/+ui%able f any o!r digital asset2 7,b7 repres5ts own]%ip (1 or rights 91 a "w ( au?or%ip1 art1 a collectible1 a memb]%ip1 an access cr$5tial1 a c]tificate ( au!nticity1 an 9-game or 9-application item1 or ano!r simil> specific item or discrete digital or physical good1 s]vice1 or b5efit2 7,c7 is n int]*angeable on a #a-to-#a basis ) any o!r tok5 or digital asset2 & 7,d7 may be b\ght1 sold1 or transf]r$ = consid]ation4 7#b7 ,promot] ,! t]m promot] means a p]son or gr\p t manages1 controls1 or op]ates an ent]prise 9 :i* capital is inve/$1 or any p]son or gr\p act+ on behalf ( su* a p]son or gr\p ) respect to su* an ent]prise1 includ+ an affiliate1 ag5t1 or coord9at$ actor t contributes to ! capital rais+ ef=ts ( ! ent]prise4 7b7 ,safe h>bor 7#a7 ,9 g5]al ,except z provid$ 9 p>agraph 7#c71 ! (f]1 sale1 resale1 transf]1 or conveyance ( a nonfungible tok5 %all n be deem$ to con/itute an (f]1 sale1 or di/ribution ( a security or inve/m5t contract "u ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;a et seq471 ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq471 or any equival5t ,/ate law1 unless ! transaction1 9 sub/ance1 involves all ( ! elem5ts ( an inve/m5t contract4 7#b7 ,rules ( con/ruction ,nei!r ( ! foll[+ %all be consid]$ to be a security "u ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;a et seq47 or ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq473 7,a7 ,! resale or second>y m>ket transf] ( a nonfungible tok51 :]e ! paym5t = t resale or transf] does n fl[ to a promot] or is n us$ to raise new capital = an ent]prise4 7,b7 ,a nonfungible tok5 t s]ves z a collectible1 memb]%ip "r1 ev5t ticket1 access cr$5tial1 or o!r non-inve/m5t-bas$ use case solely because ! nonfungible tok5 may appreciate 9 value or dep5d 9 "p on ! cont9u$ ef=ts or ! reputation ( ! creator or issu] ( ! nonfungible tok54 7#c7 ,exceptions ,! safe h>bor "u p>agraph 7#a7 %all n apply to-- 7,a7 a mass-m9t$ s]ies ( items ) sub/antially simil> or ne>ly id5tical traits t are m>ket$ or sold int]*angeably2 7,b7 a fractionaliz$ int]e/ 9 a nonfungible tok52 or 7,c7 an int]e/ repres5t+ a b5eficial or economic claim on a nonfungible tok5 or an asset t a nonfungible tok5 repres5ts4 7#d7 ,reliance2 prospective effect 7,a7 ,reliance ,a p]son1 o!r ?an an orig9ator or relat$ p]son1 t reasonably & 9 good fai? relies on ! safe h>bor "u ?is subsection %all n be subject to any civil or adm9i/rative p5alties4 7,b7 ,prospective effect ,any det]m9ation by ! ,commission t ! safe h>bor "u ?is subsection does n apply to a p>ticul> circum/ance %all-- 7i7 be prospective only2 & 7ii7 take effect n e>li] ?an #fj days aft] ! date on :i* ! ,commission publicly po/s t det]m9ation4 #fjc4 ,/udy on nonfungible tok5s 7a7 ,def9ition ,9 ?is section1 ! t]m nonfungible tok5 has ! mean+ giv5 ! t]m 9 section #fjb4 7b7 ,/udy ,! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all c>ry out a /udy ( nonfungible tok5s t analyzes-- 7#a7 ! nature1 size1 role1 purpose1 & use ( nonfungible tok5s2 7#b7 ! simil>ities & diff]5ces betwe5 nonfungible tok5s & o!r digital commodities1 includ+ digital commodities & paym5t /ableco9s1 & h[ ! m>kets = ^? digital commodities int]sect2 7#c7 h[ nonfungible tok5s are m9t$ by issu]s & subsequ5tly di/ribut$ to pur*as]s2 7#d7 h[ nonfungible tok5s are /or$ aft] be+ pur*as$ by a consum]2 7#e7 ! int]op]ability ( nonfungible tok5s betwe5 diff]5t di/ribut$ l$g] sy/ems2 7#f7 ! scalability ( diff]5t nonfungible tok5 m>ketplaces2 7#g7 ! b5efits ( nonfungible tok5s1 includ+ v]ifiable digital own]%ip2 7#h7 ! risks ( nonfungible tok5s1 includ+-- 7,a7 ! infr+em5t ( intellectual prop]ty rights2 7,b7 cyb]security risks2 & 7,c7 m>ket risks2 7#i7 :e!r & h[ nonfungible tok5s h be51 or c\ld be1 integrat$ ) traditional m>ketplaces1 includ+ m>ketplaces = music1 real e/ate1 gam+1 ev5ts1 & travel2 7#aj7 :e!r & h[ nonfungible tok5s h be51 or c\ld be1 us$ to facilitate comm]ce or o!r activities ?r\gh ! repres5tation ( docum5ts1 id5tification1 contracts1 lic5ses1 & o!r comm]cial1 gov]nm5tal1 or p]sonal records2 7#aa7 any risks to traditional m>kets f ! integration describ$ 9 p>agraph 7#i72 & 7#ab7 ! levels & types ( illicit activity 9 nonfungible tok5 m>kets4 7c7 ,report ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all make publicly available a report t includes ! results ( ! /udy requir$ "u subsection 7b74 #fjd4 ,block*a9 ,regulatory ,c]ta9ty ,act 7a7 ,%ort title ,?is section may be cit$ z ! ,block*a9 ,regulatory ,c]ta9ty ,act4 7b7 ,def9itions ,9 ?is section3 7#a7 ,develop] or provid] ,! t]m develop] or provid] means any p]son or bus9ess t creates or publi%es s(tw>e to facilitate ! creation (1 or provide ma9t5ance to1 a di/ribut$ l$g]1 or a s]vice associat$ ) a di/ribut$ l$g]4 7#b7 ,di/ribut$ l$g] s]vice ,! t]m di/ribut$ l$g] s]vice means any in=mation1 transaction1 or comput+ s]vice or sy/em t provides or enables access to a di/ribut$ l$g] sy/em by multiple us]s1 includ+ a s]vice or sy/em t enables us]s to s5d1 receive1 ex*ange1 or /ore digital assets describ$ by di/ribut$ l$g] sy/ems4 7#c7 ,non-controll+ develop] or provid] ,! t]m non-controll+ develop] or provid] means a develop] or provid] ( a di/ribut$ l$g] s]vice t1 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 to :i* us]s are entitl$1 )\t ! approval1 cons5t1 or direction ( any ?ird p>ty4 7c7 ,treatm5t ,not)/&+ any o!r provision ( law1 a non-controll+ develop] or provid]-- 7#a7 %all n be treat$ z-- 7,a7 a money transmitt+ bus9ess1 z def9$ 9 section #eccj ( title #ca1 ,unit$ ,/ates ,code1 & ! regulations promulgat$ "u t section2 or 7,b7 engag$ 9 money transmitt+1 z def9$ 9 section #aifj ( title #ah1 ,unit$ ,/ates ,code2 & 7#b7 on or aft] ! date ( enactm5t ( ?is ,act1 %all n be o!rwise subject to any regi/ration requirem5t t is sub/antially simil> to a requirem5t 7z 9 effect on ! day be=e ! date ( enactm5t ( ?is ,act7 t applies to an entity describ$ 9 subp>agraph 7,a7 or 7,b7 ( p>agraph 7#a71 solely on ! basis (-- 7,a7 creat+ or publi%+ s(tw>e to facilitate ! creation (1 or provid+ ma9t5ance s]vices to1 a di/ribut$ l$g] or a s]vice associat$ ) a di/ribut$ l$g]2 7,b7 provid+ h>dw>e or s(tw>e to facilitate a cu/om]'s own cu/ody or safekeep+ ( ! digital assets ( ! cu/om]2 or 7,c7 provid+ infra/ructure support to ma9ta9 a di/ribut$ l$g] s]vice4 7d7 ,cl>ification ( treatm5t ,subsection 7c7 %all n modify ! application ( section #aifj7;b77#a77;,c7 ( title #ah1 ,unit$ ,/ates ,code1 to any p]son 7ref]r$ to 9 ?is subsection z ! initial p]son7 t acts ) ! specific int5t to transf]1 on behalf ( ano!r p]son1 funds t are kn[n by ! initial p]son to be-- 7#a7 d]iv$ f a crim9al (f5se2 or 7#b7 int5d$ to be us$ to promote or support unlawful activity4 7e7 ,rules ( con/ruction ,no?+ 9 ?is section may be con/ru$-- 7#a7 to affect :e!r a develop] or provid] ( a di/ribut$ l$g] s]vice is o!rwise subject to classification or treatm5t z a money transmitt]1 or z engag$ 9 money transmitt+1 "u applicable ,f$]al or ,/ate law1 includ+ laws relat+ to anti-money laund]+ or c\nt]+ ! f9anc+ ( t]rorism1 bas$ on conduct outside ! scope ( subsection 7c72 7#b7 to affect :e!r a develop] or provid] is o!rwise subject to classification or treatm5t z a f9ancial in/itution "u sub*apt] ,,ii ( *apt] #ec ( title #ca1 ,unit$ ,/ates ,code1 ?is ,act1 any am5dm5t made by ?is ,act1 or any ,act enact$ aft] ! date ( enactm5t ( ?is ,act1 bas$ on conduct outside ! scope ( subsection 7c72 7#c7 to limit or exp& any law p]ta9+ to intellectual prop]ty2 7#d7 to prev5t any ,/ate f en=c+ any ,/ate law t is consi/5t ) ?is section2 or 7#e7 to create a cause ( action or impose liability "u any ,/ate or local law t is inconsi/5t ) ?is section4 #fje4 ,keep ,y\r ,co9s ,act 7a7 ,%ort title ,?is section may be cit$ z ! ,keep ,y\r ,co9s ,act4 7b7 ,def9itions ,9 ?is section3 7#a7 ,cov]$ us] ,! t]m cov]$ us] means a ,unit$ ,/ates individual :o obta9s digital assets to pur*ase goods or s]vices on behalf ( t individual1 )\t reg>d to ! me?od 9 :i* t individual obta9$ ^? digital assets4 7#b7 ,self-ho/$ wallet ,! t]m self-ho/$ wallet means a digital int]face-- 7,a7 t is us$ to secure & transf] digital assets2 & 7,b7 "u :i* ! own] ( digital assets secur$ & transf]r$ "u subp>agraph 7,a7 reta9s indep5d5t control ov] ^? digital assets4 7c7 ,self-,cu/ody ,a ,f$]al ag5cy may n prohibit1 re/rict1 or o!rwise impair ! ability ( a cov]$ us] to self-cu/ody digital assets us+ a self-ho/$ wallet or o!r means to conduct transactions = any lawful purpose4 7d7 ,rule ( con/ruction ,no?+ 9 ?is section may be con/ru$ to limit ! au?ority ( ! ,secret>y ( ! ,treasury1 ! ,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 ,,vii ,protect+ cu/om] prop]ty #gja4 ,cu/om] prop]ty protections = ancill>y assets & digital commodities 9 bankruptcy 7a7 ,def9itions = /ockbrok] liquidation 7#a7 ,9 g5]al ,section #gda ( title #aa1 ,unit$ ,/ates ,code1 is am5d$-- 7,a7 by r$esignat+ p>agraphs 7#e7 ?r\gh 7#i7 z p>agraphs 7#g7 ?r\gh 7#aa71 respectively2 7,b7 by r$esignat+ p>agraphs 7#a7 ?r\gh 7#d7 z p>agraphs 7#b7 ?r\gh 7#e71 respectively2 7,c7 by ins]t+ be=e p>agraph 7#b71 z s r$esignat$1 ! foll[+3 7#a7 ancill>y asset has ! mean+ giv5 t t]m 9 section #b ( ! ,digital ,asset ,m>ket ,cl>ity ,act2 2 7,d7 9 p>agraph 7#c71 z s r$esignat$-- 7i7 9 subp>agraph 7,a77vi71 by /rik+ & at ! end2 7ii7 by r$esignat+ subp>agraph 7,b7 z subp>agraph 7,c72 7iii7 by ins]t+ aft] subp>agraph 7,a7 ! foll[+3 7,b7 entity ) :om a p]son deals z pr9cipal or ag5t & t has a claim aga9/ su* p]son on acc\nt ( a digital commodity or an ancill>y asset receiv$1 acquir$1 or held by su* p]son f or = ! securities acc\nt or acc\nts ( su* entity = #a or m ( ! purposes id5tifi$ 9 clauses 7i7 ?r\gh 7vi7 ( subp>agraph 7,a7 ( ?is p>agraph2 & 2 & 7iv7 9 subp>agraph 7,c71 z s r$esignat$-- 7,i7 9 clause 7i7-- 7aa7 by ins]t+ 1 ancill>y asset1 or digital commodity aft] security2 & 7bb7 by ins]t+ or 7,b7 aft] subp>agraph 7,a72 & 7,,ii7 9 clause 7ii71 by ins]t+ an ancill>y asset1 a digital commodity1 aft] a security12 7,e7 9 p>agraph 7#e71 z s r$esignat$1 9 ! matt] prec$+ subp>agraph 7,a71 by ins]t+ ancill>y asset1 digital commodity1 aft] ca%1 security1 ea* place x appe>s2 7,f7 by ins]t+ aft] p>agraph 7#e71 z s r$esignat$1 ! foll[+3 7#f7 digital commodity has ! mean+ giv5 t t]m 9 section #b ( ! ,digital ,asset ,m>ket ,cl>ity ,act2 2 & 7,g7 9 p>agraph 7#h71 z s r$esignat$1 9 subp>agraph 7,a77i71 by ins]t+ 1 ancill>y asset positions1 & digital commodities positions aft] securities positions4 7b7 ,ext5t ( cu/om] claims ,section #gdf7;b7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$1 9 ! matt] prec$+ p>agraph 7#a71 by /rik+ ca% or a security & ins]t+ ca%1 a security1 an ancill>y asset1 or a digital commodity4 7c7 ,te*nical & con=m+ am5dm5ts 7#a7 ,section #edf7;e7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$-- 7,a7 by /rik+ section #gda7g7 & ins]t+ section #gda2 & 7,b7 by /rik+ section #gfa7d7 & ins]t+ section #gfa4 7#b7 ,section #efa7;a7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$-- 7,a7 9 p>agraph 7#a71 by /rik+ section #gda7g7 & ins]t+ section #gda2 & 7,b7 9 p>agraph 7#b71 by /rik+ section #gfa7d7 & ins]t+ section #gfa4 7#c7 ,section #geb7;c7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by /rik+ section #gda7d77;,b7 & ins]t+ section #gda7e77;,b74 7d7 ,cl>ifications ,= ! avoidance ( d\bt-- 7#a7 no?+ 9 ?is section or an am5dm5t made by ?is section may be con/ru$ to apply to securities or ca% held by a brok]-deal] & su* assets & relat$ claims %all be gov]n$ exclusively by ! ,securities ,inve/or ,protection ,act ( #aigj 7#ae ,u4,s4,c4 #gh;aaa et seq472 7#b7 no?+ 9 ?is section or an am5dm5t made by ?is section may be con/ru$ to apply to deposits held by a bank or commodity contracts1 :i* %all be gov]n$ by ! relevant applicable law2 & 7#c7 9 any liquidation proce$+ "u sub*apt] ,,iii or ,,iv ( *apt] #g ( title #aa1 ,unit$ ,/ates ,code1 ^? provisions %all be con/ru$ to treat ancill>y assets & digital commodities held = cu/om]s z cu/om] prop]ty gov]n$ by title #aa1 ,unit$ ,/ates ,code1 & requir$ to be di/ribut$ accord+ to su* title4 #gjb4 ,insolv5cy safe h>bor 7a7 ,def9itions ,9 ?is section3 7#a7 ,commodity brok]2 f9ancial in/itution2 f9ancial p>ticipant2 securities cle>+ ag5cy2 /ockbrok] ,! t]ms commodity brok]1 f9ancial in/itution1 f9ancial p>ticipant1 securities cle>+ ag5cy1 & /ockbrok] h ! mean+s giv5 ^? t]ms 9 section #aja ( title #aa1 ,unit$ ,/ates ,code4 7#b7 ,commodity contract ,! t]m commodity contract means a commodity contract describ$ 9 p>agraph 7#d77;,a7 ( section #gfa ( title #aa1 ,unit$ ,/ates ,code4 7b7 ,safe h>bor ,a pur*ase1 sale1 or loan (1 a m>g9 loan or o!r ext5sion ( cr$it on1 or a repur*ase1 rev]se repur*ase1 or o!r transaction involv+1 a unit ( a digital commodity occurr+ ) a commodity brok]1 /ockbrok]1 f9ancial in/itution1 f9ancial p>ticipant1 or securities cle>+ ag5cy %all be deem$ to be-- 7#a7 a commodity contract = purposes (-- 7,a7 sections #cfb7;b77#f71 #cfb7o71 #edf7;e71 #eec1 #eef1 #efa1 & #efb ( title #aa1 ,unit$ ,/ates ,code2 7,b7 section #aa ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahba72 7,c7 section #baj ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #ecij72 & 7,d7 section #e7;b77#b77;,c7 ( ! ,securities ,inve/or ,protection ,act ( #aigj 7#ae ,u4,s4,c4 #gh;eee7b77#b77;,c772 & 7#b7 a m>g9 paym5t = purposes ( section #edh7;d77#b77;,b7 ( title #aa1 ,unit$ ,/ates ,code4 ,,viii ,cu/om] protection #hja4 ,educational mat]ials ,! ,commission & ! ,commodity ,futures ,trad+ ,commission %all require digital asset int]m$i>ies to provide cle> & accessible educational mat]ials to ! public1 includ+-- 7#a7 an ov]view ( h[ di/ribut$ l$g] sy/ems function2 7#b7 a description ( common risks associat$ ) digital assets2 7#c7 a description ( ! diff]5ces betwe5 digital asset m>kets & traditional f9ancial m>kets2 7#d7 in=mation on report+ & disclosure requirem5ts relat$ to digital asset transactions & securities :i* may be accompani$ by network tok5s or ancill>y assets2 & 7#e7 guidance on recogniz+ fraudul5t s*emes & in/ructions = report+ suspect$ fraud4 #hjb4 ,sav+s clauses 7a7 ,def9itions ,9 ?is section3 7#a7 ,digital consum] tok5 ,! t]m digital consum] tok5 means a digital asset t is prim>ily acquir$ = a consumptive purpose1 includ+ r$emption = a specifi$ good or s]vice at ! "t ( sale or )9 a reasonable "t aft] sale1 z def9$ by ! ,f$]al ,trade ,commission pursuant to rule4 7#b7 ,nonfungible tok5 ,! t]m nonfungible tok5 means a digital asset record$ on a di/ribut$ l$g] t-- 7,a7 is individually id5tifiable & di/+ui%able f any o!r digital asset2 7,b7 repres5ts own]%ip (1 or rights 91 a "w ( au?or%ip1 art1 a collectible1 a memb]%ip1 an access cr$5tial1 a c]tificate ( au!nticity1 an 9-game or 9-application item1 or ano!r simil> specific item or discrete digital or physical good1 s]vice1 or b5efit2 7,c7 is n int]*angeable on a #a-to-#a basis ) any o!r tok5 or digital asset2 & 7,d7 may be b\ght1 sold1 or transf]r$ = consid]ation4 7b7 ,f$]al ,trade ,commission ,no?+ 9 ?is ,act1 or any am5dm5t made by ?is ,act1 may be con/ru$ z limit+ or abridg+ ! jurisdiction ( ! ,f$]al ,trade ,commission ) respect to-- 7#a7 inve/igations or en=cem5t actions "u ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq47 relat+ to unfair or deceptive acts or practices by p]sons relat+ to comm]ce 9 nonfungible tok5s or digital consum] tok5s1 includ+ deceptive acts ) respect to adv]tis+ & endorsem5ts relat+ to nonfungible tok5s & digital consum] tok5s2 7#b7 highlight+ be/ practices relat+ to comm]ce 9 nonfungible tok5s or digital consum] tok5s2 7#c7 promot+ responsible innovation2 7#d7 consum] education relat+ to fraudul5t digital asset activity2 or 7#e7 inve/igat+ unlawful re/ra9ts ( trade 9 ! digital asset indu/ry4 7c7 ,rule ( con/ruction ,no?+ 9 ?is ,act1 or any am5dm5t made by ?is ,act1 may be con/ru$ to exp&1 contract1 or o!rwise affect ! jurisdiction or au?ority ) respect to ! ,f$]al consum] f9ancial laws "u ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #edha et seq471 z 9 effect on ! day be=e ! date ( enactm5t ( ?is ,act1 includ+ ) respect to subsection 7i7 or 7j7 ( section #ajbg ( ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #eeag74 #hjc4 ,/udy on exp&+ f9ancial lit]acy 7a7 ,/udy ,! ,commission & ! ,commodity ,futures ,trad+ ,commission %all jo9tly conduct a /udy to id5tify-- 7#a7 ! exi/+ 7z ( ! day be=e ! date ( enactm5t ( ?is ,act7 level ( f9ancial lit]acy among retail digital asset cu/om]s2 7#b7 me?ods to improve ! tim+1 cont5t1 & =mat ( f9ancial lit]acy mat]ials reg>d+ digital assets provid$ by ! respective commissions2 7#c7 me?ods to improve coord9ation betwe5 ! ,commission & ! ,commodity ,futures ,trad+ ,commission ) o!r ag5cies1 includ+ ! ,f9ancial ,lit]acy & ,education ,commission1 nonpr(it organizations1 & ,/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 asset cu/om]s ne$ to make in=m$ f9ancial decisions be=e engag+ ) or pur*as+ a digital asset2 7#f7 ! mo/ effective public-private p>tn]%ips 9 provid+ f9ancial lit]acy reg>d+ digital assets2 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+1 to ! ext5t practicable1 measurable goals & objectives7 to increase f9ancial lit]acy ( inve/ors reg>d+ digital assets4 7b7 ,report ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,commission & ! ,commodity ,futures ,trad+ ,commission %all jo9tly submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs & ! ,committee on ,agriculture1 ,nutrition1 & ,=e/ry ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices & ! ,committee on ,agriculture ( ! ,h\se ( ,repres5tatives a writt5 report on ! /udy requir$ "u subsection 7a74 #hjd4 ,consultation ) ,,sipc reg>d+ m&atory brok]-deal] disclosures to inve/ors conc]n+ ! /atus ( paym5t /ableco9s & digital commodities 7a7 ,def9ition ,9 ?is section1 ! t]m paym5t /ableco9 has ! mean+ giv5 ! t]m 9 section #b ( ! ,,g5ius ,act 7#ab ,u4,s4,c4 #eija74 7b7 ,rules ,n lat] ?an #bgj days aft] ! date ( enactm5t ( ?is ,act1 ! ,commission1 aft] consultation ) ! ,commodity ,futures ,trad+ ,commission & ! ,securities ,inve/or ,protection ,corporation1 %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-- 7#a7 be=e a digital commodity1 a paym5t /ableco91 or a security involv+ a unit ( a digital commodity is receiv$1 acquir$1 or held by ! brok] or deal] = ! acc\nt ( ! inve/or2 & 7#b7 aft] ! provision ( ! disclosures "u p>agraph 7#a71 at su* frequ5cy z ! ,commission may prescribe4 7c7 ,cont5ts ,! rules issu$ "u subsection 7b7 %all include1 z necess>y or appropriate = ! protection ( inve/ors-- 7#a7 a description ( ! mann] 9 :i* any digital commodity1 paym5t /ableco91 or security involv+ a unit ( a digital commodity receiv$1 acquir$1 or held by a brok] or deal] = ! acc\nt ( an inve/or w\ld be treat$ 9 an insolv5cy1 resolution1 or liquidation proce$+ ) respect to ! brok] or deal] "u-- 7,a7 title ,,ii ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #echa et seq472 7,b7 ! ,securities ,inve/or ,protection ,act ( #aigj 7#ae ,u4,s4,c4 #gh;aaa et seq472 or 7,c7 z applicable1 *apt] #g or #aa ( title #aa1 ,unit$ ,/ates ,code2 & 7#b7 h[ ! treatm5t describ$ 9 p>agraph 7#a7 diff]s f ! treatm5t ( securities & ca% receiv$1 acquir$1 or held by ! brok] or deal] = ! acc\nt ( ! applicable inve/or 9 ! ev5t ( an insolv5cy1 resolution1 or liquidation proce$+ ) respect to ! brok] or deal] "u ea* provision ( law describ$ 9 subp>agraph 7,a71 7,b71 & 7,c7 ( p>agraph 7#a74 ,,ix ,o!r matt]s #ija4 ,jo9t ,advisory ,committee on ,digital ,assets 7a7 ,e/abli%m5t ,! ,commodity ,futures ,trad+ ,commission & ! ,commission 7ref]r$ to collectively 9 ?is section z ! ,commissions7 %all jo9tly e/abli% ! ,jo9t ,advisory ,committee on ,digital ,assets 7ref]r$ to 9 ?is section z ! ,committee74 7b7 ,purpose 7#a7 ,9 g5]al ,! ,committee %all-- 7,a7 provide ! ,commissions ) (ficial f9d+s & nonb9d+ recomm5dations on-- 7i7 ! rules1 regulations1 ov]sight1 & o!r matt]s ( ! ,commissions relat+ to digital assets1 includ+ ) respect to regulatory h>monization betwe5 ! ,commissions2 7ii7 h[ to fur!r ! regulatory h>monization ( digital asset policy betwe5 ! ,commissions or areas 9 :i* t h>monization %\ld occur2 & 7iii7 ! implem5tation by ! ,commissions ( ?is ,act1 & ! am5dm5ts made by ?is ,act1 includ+ ) respect to regulatory h>monization betwe5 ! ,commissions1 memor&a ( und]/&+1 & ! ,,cftc-,,sec ,micro-,innovation ,s&box e/abli%$ pursuant to section #eja2 7,b7 develop & %>e objective me?ods & be/ practices = evaluat+ digital asset networks & activities1 includ+1 z appropriate1 te*nical features1 economic design1 & implications = m>ket integrity1 inve/or protection1 & op]ational resili5ce2 & 7,c7 issue nonb9d+ recomm5dations to assi/ 9 resolv+ disputes betwe5 ! ,commissions4 7c7 ,review by ! commissions ,ea* ( ! ,commissions %all-- 7#a7 review ! f9d+s & nonb9d+ recomm5dations provid$ "u subsection 7b77#a77;,a72 7#b7 promptly publi% a public /atem5t ea* "t ! ,committee submits a f9d+ or nonb9d+ recomm5dation to ! applicable ,commission "u subsection 7b77#a77;,a7 t-- 7,a7 assesses ! f9d+ or recomm5dation2 & 7,b7 if applicable1 discloses ! action or decision n to take action2 & 7#c7 provide ! ,committee ) a =mal writt5 response n lat] ?an #ij days aft] ! date ( submission ( a f9d+ or nonb9d+ recomm5dation "u subsection 7b77#a77;,a74 7d7 ,memb]%ip & lead]%ip 7#a7 ,non-f$]al memb]s2 size & composition 7,a7 ,9 g5]al ,! ,commissions %all appo9t to ! ,committee n m ?an #ad nongov]nm5tal vot+ memb]s :o-- 7i7 repres5t a broad spectrum ( int]e/s1 equally divid$ betwe5 ! ,commissions2 & 7ii7 s]ve at ! pleasure ( ! appo9t+ ,commission4 7,b7 ,specific memb]s ,= ea* ( ! ,commissions1 ! appo9tees "u subp>agraph 7,a7 ( ?is p>agraph %all include-- 7i7 #b individuals describ$ 9 p>agraph 7#b77;,a72 7ii7 #b individuals describ$ 9 p>agraph 7#b77;,b72 7iii7 #a individual describ$ 9 p>agraph 7#b77;,c72 7iv7 #b individuals describ$ 9 p>agraph 7#b77;,d72 & 7v7 #a individual describ$ 9 p>agraph 7#b77;,e74 7#b7 ,memb]s describ$ ,a memb] describ$ 9 ?is p>agraph is-- 7,a7 an individual :o is employ$ by1 or is a relat$ p]son ) respect to1 a digital asset m>ket p>ticipant2 7,b7 a p]son regi/]$ ) ei!r ( ! ,commissions & t is engag$ 9 activities relat+ to digital assets2 7,c7 an individual engag$ 9 academic rese>* relat+ to digital assets2 7,d7 a retail us] ( digital assets2 & 7,e7 a ,/ate securities regulator4 7#c7 ,,ni/ ,! ,director ( ! ,national ,in/itute ( ,/&>ds & ,te*nology1 or ! designee ( ! ,director1 %all s]ve 9 an advisory capacity z a nonvot+1 ex (ficio memb] ( ! ,committee1 & %all n be exclud$ f any proce$+s1 meet+s1 discussions1 or delib]ations ( ! ,committee1 except t ! *air ( ! ,committee1 ^u an affirmative vote ( ! ,committee1 may exclude ! ,director or ! designee f any proce$+s1 meet+s1 discussions1 or delib]ations ( ! ,committee :5 necess>y to safegu>d & promote ! free ex*ange ( confid5tial in=mation4 7#d7 ,co-designat$ ,f$]al (fic]s2 commission] support 7,a7 ,co-designat$ ,f$]al (fic]s 7i7 ,9 g5]al ,ea* ,commission %all designate #a ,f$]al (fic] to s]ve z a co-designat$ ,f$]al (fic] ( ! ,committee4 7ii7 ,%>$ duties ,! duties requir$ by section #ajji7;e7 ( title #e1 ,unit$ ,/ates ,code1 to be c>ri$ out by a designat$ (fic] or employee ( ! ,f$]al ,gov]nm5t ) respect to ! ,committee %all be %>$ by ! ,f$]al (fic]s ( ! ,committee :o are co-designat$ "u clause 7i74 7,b7 ,commission] support 7i7 ,9 g5]al ,commission]s ( ! ,commissions may be support$ by (fic]s or employees ( ! respective ,commission :o may prep>e or transmit mat]ials1 coord9ate ) ag5cy /aff1 liaise ) ,committee lead]%ip1 propose ag5da items1 ga!r in=mation1 & o!rwise support ! p>ticipation ( t commission] 9 ,committee bus9ess1 9 an ex (ficio1 nonvot+ capacity4 7ii7 ,rule ( con/ruction ,an (fic] or employee describ$ 9 clause 7i7 %all n be consid]$ to be a memb] ( ! ,committee = purposes ( *apt] #aj ( title #e1 ,unit$ ,/ates ,code4 7,c7 ,in=mation %>+ ,! co-designat$ ,f$]al (fic]s "u subp>agraph 7,a7 & ! (fic]s or employees ( ! respective ,commissions provid+ support "u subp>agraph 7,b7 %all %>e in=mation ab\t digital asset activities "u ?is ,act1 9 accordance ) section #ijb1 includ+ ) reg>d to prev5t+ insid] trad+4 7#e7 ,committee lead]%ip ,! memb]s ( ! ,committee %all elect1 f among ! memb]%ip ( ! ,committee1 a secret>y & an assi/ant secret>y4 7#f7 ,rotat+ *air ,! *air & vice *air ( ! ,committee %all rotate annually betwe5 ! ,commissions1 ) ! ,commission designat+ ! *air 9 ev5-numb]$ cal5d> ye>s1 ! ,commodity ,futures ,trad+ ,commission designat+ ! *air 9 odd-numb]$ cal5d> ye>s1 ! ,commission designat+ ! vice *air 9 odd-numb]$ cal5d> ye>s1 & ! ,commodity ,futures ,trad+ ,commission designat+ ! vice *air 9 ev5-numb]$ cal5d> ye>s4 7#g7 ,t]ms2 vacancies2 holdov] 7,a7 ,9 g5]al ,ea* non-,f$]al memb] ( ! ,committee %all be appo9t$ = a t]m ( #d ye>s4 7,b7 ,s]vice until new appo9tm5t ,a memb] ( ! ,committee may cont9ue to s]ve aft] ! expiration ( ! t]m ( ! memb] until a successor is appo9t$4 7,c7 ,vacancies ,a vacancy ) respect to memb]%ip 9 ! ,committee %all be fill$ only = ! rema9d] ( ! applicable t]m4 7,d7 ,reappo9tm5t ,a memb] ( ! ,committee may be reappo9t$4 7#h7 ,/atus ( memb]s ,a memb] ( ! ,committee appo9t$ "u p>agraph 7#a7 %all n be deem$ to be an employee or ag5t ( ei!r ( ! ,commissions solely by reason ( memb]%ip on ! ,committee4 7e7 ,no comp5sation = committee memb]s 7#a7 ,non-f$]al memb]s ,all ,committee memb]s appo9t$ "u subsection 7d77#a7 %all-- 7,a7 s]ve )\t comp5sation2 & 7,b7 :ile away f ! home or regul> place ( bus9ess ( ! memb] 9 ! p]=mance ( s]vices = ! ,committee1 be all[$ travel exp5ses1 includ+ p] diem 9 lieu ( subsi/5ce1 9 ! same mann] z p]sons employ$ int]mitt5tly 9 ,gov]nm5t s]vice are all[$ exp5ses "u section #egjc ( title #e1 ,unit$ ,/ates ,code4 7#b7 ,no comp5sation = co-designat$ f$]al (fic]s ,! ,f$]al (fic]s co-designat$ "u subsection 7d77#d77;,a7 %all s]ve )\t comp5sation 9 addition to t receiv$ = _! s]vices z (fic]s or employees ( ! ,unit$ ,/ates4 7f7 ,frequ5cy ( meet+s ,! ,committee %all meet-- 7#a7 n less frequ5tly ?an twice annually2 & 7#b7 at su* o!r times z ei!r ( ! ,commissions may reque/4 7g7 ,proc$ures2 advisory nature 7#a7 ,9 g5]al ,! ,committee %all op]ate pursuant to *apt] #aj ( title #e1 ,unit$ ,/ates ,code1 except z o!rwise expressly provid$ by ?is section4 7#b7 ,advisory nature ( recomm5dations ,! recomm5dations ( ! ,committee are advisory 9 nature1 %all n create any legal rights or obligations1 & %all n limit or delay ! indep5d5t au?ority ( ei!r ( ! ,commissions4 7h7 ,"t limits ,! ,commissions %all-- 7#a7 n lat] ?an #ij days aft] ! date ( enactm5t ( ?is ,act1 adopt a jo9t *>t] = ! ,committee2 7#b7 n lat] ?an #abj days aft] ! date ( enactm5t ( ?is ,act1 make ! appo9tm5ts requir$ "u subsection 7d77#a72 & 7#c7 n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is ,act1 hold ! initial meet+ ( ! ,committee4 7i7 ,fund+ ,subject to ! availability ( funds1 ! ,commissions %all jo9tly fund ! ,committee4 7j7 ,duration & r5ewal 7#a7 ,initial p]iod ,! ,committee %all rema9 9 effect = #aj ye>s beg9n+ on ! date ( enactm5t ( ?is ,act4 7#b7 ,r5ewal !reaft] ,at ! conclusion ( ! #aj-ye> p]iod describ$ 9 p>agraph 7#a7-- 7,a7 ! ,committee %all be subject to subsections 7a7 & 7b7 ( section #ajac ( title #e1 ,unit$ ,/ates ,code2 & 7,b7 ! ,commissions may r5ew ! ,committee = successive #b-ye> p]iods by publi%+ a notice 9 ! ,f$]al ,regi/]1 consi/5t ) *apt] #aj ( title #e1 ,unit$ ,/ates ,code4 #ijb4 ,memor&um ( und]/&+ 7a7 ,memor&um ( und]/&+ ,! ,commission %all ent] into a memor&um ( und]/&+ ) ! ,commodity ,futures ,trad+ ,commission to ensure-- 7#a7 coord9at$ sup]vision & en=cem5t ) respect to regi/rants ( ! ,commission & ! ,commodity ,futures ,trad+ ,commission1 includ+ ) reg>d to-- 7,a7 ! anti-fraud & anti-manipulation au?orities ( ! ,commission1 su* z ) reg>d to insid] trad+2 & 7,b7 ! m>ket integrity au?orities ( ! ,commodity ,futures ,trad+ ,commission2 & 7#b7 appropriate in=mation %>+ betwe5 ! ,commission & ! ,commodity ,futures ,trad+ ,commission to fur!r ! purposes ( & compliance ) ?is ,act1 ! am5dm5ts made by ?is ,act1 ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;a et seq47 7z am5d$ by ?is ,act71 ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 7z am5d$ by ?is ,act71 & ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq474 7b7 ,rule ( con/ruction ,no?+ 9 ?is section may 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 7c7 ,rule ( con/ruction ,no?+ 9 ?is ,act1 or any am5dm5t made by ?is ,act1 may be con/ru$ to limit or prev5t ! cont9u$ application ( applicable law reg>d+ ! insid] trad+ ( securities1 includ+ digital asset securities1 includ+ section #ba;,a ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #ghu-#a74 #ijc4 ,fin,c,e,n appropriations 7a7 ,au?orization ( appropriations ,= ! purposes ( develop+ policy relat+ to digital assets1 acquir+ in=mation te*nology res\rces1 fund+ ! op]ations describ$ 9 sections #bjb & #bjc ( ?is ,act1 & en=cem5t ( ! laws )9 its jurisdiction relat+ to digital assets1 !re is au?oriz$ to be appropriat$ to ! ,f9ancial ,crimes ,en=cem5t ,network ( ! ,dep>tm5t ( ! ,treasury ! foll[+3 7#a7 #cj1jjj1jjj = fiscal ye> #bjbf1 to rema9 available until ,septemb] #cj1 #bjbg4 7#b7 #cj1jjj1jjj = fiscal ye> #bjbg1 to rema9 available until ,septemb] #cj1 #bjbh4 7#c7 #cj1jjj1jjj = fiscal ye> #bjbh1 to rema9 available until ,septemb] #cj1 #bjbi4 7#d7 #cj1jjj1jjj = fiscal ye> #bjbi1 to rema9 available until ,septemb] #cj1 #bjcj4 7#e7 #cj1jjj1jjj = fiscal ye> #bjcj1 to rema9 available until ,septemb] #cj1 #bjca4 7b7 ,inc5tive premium = highly qualifi$ individuals ,not)/&+ any o!r provision ( law or regulation1 ! ,director ( ! ,f9ancial ,crimes ,en=cem5t ,network ( ! ,dep>tm5t ( ! ,treasury may pay an annual inc5tive premium ( n m ?an #bj p]c5t ( ! annual rate ( basic pay = a position if necess>y to attract highly qualifi$ individuals = positions t ! ,director has c]tifi$ to ! ,director ( ! ,(fice ( ,p]sonnel ,managem5t reflect ! ne$s ( ! ,f9ancial ,crimes ,en=cem5t ,network4 #ijd4 ,build ,n[ ,act 7a7 ,def9itions ,9 ?is section3 7#a7 ,cov]$ recipi5t ,! t]m cov]$ recipi5t means a metropolitan city or urban c\nty1 z ^? t]ms are def9$ 9 section #ajb ( ! ,h\s+ & ,community ,developm5t ,act ( #aigd 7#db ,u4,s4,c4 #ecjb71 t receives funds "u section #ajf4 7#b7 ,curr5t annual gr[? rate ,! t]m curr5t annual gr[? rate1 ) respect to an eligible recipi5t & a fiscal ye>1 means ! av]age annual p]c5tage increase 9 ! numb] ( h\s+ units 9 ! jurisdiction ( ! eligible recipi5t1 z calculat$ by ! ,secret>y1 dur+ ! p]iod-- 7,a7 beg9n+ ) ! ?ird qu>t] ( ! six? prec$+ fiscal ye>2 & 7,b7 end+ ) ! ?ird qu>t] ( ! prec$+ fiscal ye>4 7#c7 ,eligible recipi5t ,! t]m eligible recipi5t means any cov]$ recipi5t unless-- 7,a7 7i7 ! m$ian ,small ,area ,fair ,m>ket ,r5t 9 ! jurisdiction ( ! cov]$ recipi5t is at or bel[ ! #fj? p]c5tile ( m$ian ,small ,area ,fair ,m>ket ,r5ts 9 ! jurisdictions ( all cov]$ recipi5ts2 & 7ii7 ! m$ian home value 9 ! jurisdiction ( ! cov]$ recipi5t is bel[ ! m$ian home value = ! ,unit$ ,/ates2 7,b7 ! annual r5tal vacancy rate 9 ! jurisdiction ( ! cov]$ recipi5t is great] ?an ! national annual r5tal vacancy rate = ! mo/ rec5t ye> available1 z publi%$ by ! ,bureau ( ! ,c5sus2 7,c7 dur+ ! #a-ye> p]iod prec$+ ! date on :i* ! ,secret>y allocates funds "u section #ajf1 ! jurisdiction ( ! cov]$ recipi5t has be5 ! subject ( a major disa/] or em]g5cy decl>ation "u section #dja or #eja1 respectively1 ( ! ,rob]t ,t4 ,/af=d ,disa/] ,relief & ,em]g5cy ,assi/ance ,act 7#db ,u4,s4,c4 #eagj1 #eaia72 or 7,d7 ! cov]$ recipi5t lacks ! legal au?ority to enact or update zon+ & p]mitt+ ord9ances4 7#d7 ,extremely high-gr[? recipi5t ,! t]m extremely high-gr[? recipi5t means an eligible recipi5t = :i* ! curr5t annual gr[? rate is at or above #d p]c5t4 7#e7 ,h\s+ gr[? improvem5t rate ,! t]m h\s+ gr[? improvem5t rate1 ) respect to an eligible recipi5t & a fiscal ye>1 means ! quoti5t (-- 7,a7 7i7 ! curr5t annual gr[? rate ( ! eligible recipi5t1 m9us 7ii7 ! prior annual gr[? rate ( ! eligible recipi5t2 & 7,b7 ! sum obta9$ by add+ ! absolute values ( ! curr5t annual gr[? rate & ! prior annual gr[? rate ( ! eligible recipi5t4 7#f7 ,prior annual gr[? rate ,! t]m prior annual gr[? rate1 ) respect to an eligible recipi5t & a fiscal ye>1 means ! av]age annual p]c5tage increase 9 ! numb] ( h\s+ units 9 ! jurisdiction ( ! eligible recipi5t1 z calculat$ by ! ,secret>y1 dur+ ! p]iod-- 7,a7 beg9n+ ) ! ?ird qu>t] ( ! #aa? prec$+ fiscal ye>2 & 7,b7 end+ ) ! ?ird qu>t] ( ! six? prec$+ fiscal ye>4 7#g7 ,secret>y ,! t]m ,secret>y means ! ,secret>y ( ,h\s+ & ,urban ,developm5t4 7#h7 ,section #ajf ,! t]m section #ajf means section #ajf ( ! ,h\s+ & ,community ,developm5t ,act ( #aigd 7#db ,u4,s4,c4 #ecjf74 7b7 ,adju/m5ts to community developm5t block grant allocations 7#a7 ,9 g5]al ,9 allocat+ am\nts to an eligible recipi5t "u section #ajf = a fiscal ye>1 ! ,secret>y %all adju/ ! allocation bas$ on ! h\s+ gr[? improvem5t rate ( ! eligible recipi5t1 9 accordance ) p>agraph 7#b7 ( ?is subsection4 7#b7 ,adju/m5ts 7,a7 ,h\s+ gr[? improvem5t rate at or above m$ian2 extremely high-gr[? recipi5ts 7i7 ,9 g5]al ,if1 ) respect to a fiscal ye> = :i* ! allocation "u section #ajf is be+ det]m9$1 ! h\s+ gr[? improvem5t rate = an eligible recipi5t is at or above ! m$ian h\s+ gr[? improvem5t rate = all eligible recipi5ts o!r ?an extremely high-gr[? recipi5ts1 or if an eligible recipi5t is an extremely high-gr[? recipi5t1 ! ,secret>y %all allocate to ! eligible recipi5t = t fiscal ye>1 9 addition to ! am\nt t w\ld o!rwise be allocat$ to ! eligible recipi5t "u section #ajf1 a bonus am\nt1 z det]m9$ "u clause 7ii7 ( ?is subp>agraph4 7ii7 ,bonus am\nt ,= purposes ( clause 7i71 ! bonus am\nt = an eligible recipi5t = a fiscal ye> %all be equal to ! product (-- 7,i7 ! aggregate am\nt by :i* allocations to eligible recipi5ts are decreas$ "u subp>agraph 7,b7 = t fiscal ye>2 & 7,,ii7 ! quoti5t (-- 7aa7 ! numb] ( h\s+ units1 z ( ! ?ird qu>t] ( ! prec$+ fiscal ye>1 9 ! jurisdiction ( ! eligible recipi5t1 z calculat$ by ! ,secret>y2 & 7bb7 ! numb] ( h\s+ units1 z ( ! ?ird qu>t] ( ! prec$+ fiscal ye>1 9 ! jurisdictions ( all eligible recipi5ts t receive a bonus am\nt "u ?is p>agraph1 z calculat$ by ! ,secret>y4 7,b7 ,h\s+ gr[? improvem5t rate bel[ m$ian ,if1 ) respect to a fiscal ye> = :i* ! allocation "u section #ajf is be+ det]m9$1 ! h\s+ gr[? improvem5t rate = an eligible recipi5t is bel[ ! m$ian h\s+ gr[? improvem5t rate = all eligible recipi5ts o!r ?an extremely high-gr[? recipi5ts1 ! ,secret>y %all decrease ! am\nt t w\ld o!rwise be allocat$ to ! eligible recipi5t "u section #ajf = t fiscal ye> by #aj p]c5t4 7c7 ,calculation ( h\s+ units 7#a7 ,h\s+ & ,urban ,developm5t requirem5ts ,9 calculat+ ! numb] ( h\s+ units 9 ! jurisdiction ( an eligible recipi5t "u any provision ( ?is section1 ! ,secret>y %all-- 7,a7 use ! ,curr5t ,address ,c\nt ,li/+ ,files & o!r data products1 z ne$$1 ( ! ,bureau ( ! ,c5sus tabulat$ f ! ,ma/] ,address ,file2 & 7,b7 make calculations at ! block level1 us+ b\nd>ies t reflect ! mo/ curr5t b\nd>ies4 7#b7 ,c5sus ,bureau & ,po/al ,s]vice requirem5ts ,! ,bureau ( ! ,c5sus & ! ,unit$ ,/ates ,po/al ,s]vice %all provide any relevant data to ! ,secret>y ^u reque/ to assi/ ! ,secret>y 9 mak+ a calculation describ$ 9 p>agraph 7#a74 7#c7 ,adju/m5t ( calculation p]iods ,! ,secret>y may adju/ ! calculation p]iods "u subp>agraphs 7,a7 & 7,b7 ( subsection 7a77#b71 subp>agraphs 7,a7 & 7,b7 ( subsection 7a77#f71 & items 7aa7 & 7bb7 ( subsection 7b77#b77;,a77ii77,,ii7 by n m ?an #b mon?s to a*ieve alignm5t ) ! data provid$ by ! ,bureau ( ! ,c5sus4 7d7 ,annual report on h\s+ gr[? improvem5t rate ,be=e allocat+ funds "u section #ajf = a fiscal ye>1 ! ,secret>y %all publi% a report t-- 7#a7 includes ! h\s+ gr[? improvem5t rate = ea* eligible recipi5t2 & 7#b7 li/s1 = ! mo/ rec5t fiscal ye> = :i* allocations 7 made "u section #ajf-- 7,a7 ! eligible recipi5ts t receiv$ a bonus am\nt "u subsection 7b77#b77;,a7 ( ?is section2 & 7,b7 ! eligible recipi5ts = :i* ! allocation "u section #ajf 0 decreas$ "u subsection 7b77#b77;,b7 ( ?is section4 7e7 ,notification2 implem5tation dates 7#a7 ,notification 7,a7 ,9 g5]al ,n lat] ?an #fj days aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y %all notify ea* eligible recipi5t ( ! recipi5t's h\s+ gr[? improvem5t rate & :e!r t h\s+ gr[? improvem5t rate is above1 at1 or bel[ ! m$ian h\s+ gr[? improvem5t rate = all eligible recipi5ts o!r ?an extremely high-gr[? recipi5ts4 7,b7 ,guidance ,z "p ( ! notification "u subp>agraph 7,a71 ! ,secret>y %all %>e guidance1 includ+ res\rces develop$ by ! ,dep>tm5t ( ,h\s+ & ,urban ,developm5t1 on be/ practices & recomm5dations = policies to r$uce regulatory b>ri]s to h\s+ & increase h\s+ supply4 7#b7 ,implem5tation dates ,subsection 7b7 %all take effect beg9n+ ) ! ?ird full fiscal ye> aft] ! date ( enactm5t ( ?is ,act & rema9 9 effect ?r\gh fiscal ye> #bjdc4 7#c7 ,no effect on previ\s appropriations ,?is section %all n apply to am\nts appropriat$ be=e ! date ( enactm5t ( ?is ,act4 #ije4 ,rulemak+s ,except z o!rwise provid$1 n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ea* applicable regulator %all adopt rules to c>ry out ?is ,act1 & ! am5dm5ts made by ?is ,act1 ?r\gh appropriate notice & comm5t rulemak+4 #ijf4 ,effective date ,?is ,act1 & ! am5dm5ts made by ?is ,act1 %all take effect on ! date t is #cfj days aft] ! date ( enactm5t ( ?is ,act1 except t1 if a provision ( ?is ,act1 or an am5dm5t made by ?is ,act1 requires a rulemak+1 t provision %all take effect on ! lat] (-- 7#a7 ! date t is #cfj days aft] ! date ( enactm5t ( ?is ,act2 or 7#b7 ! date t is #fj days aft] ! publication 9 ! ,f$]al ,regi/] ( ! f9al rule implem5t+ ! provision4 ,june #a1 #bjbf,report$ ) an am5dm5t