,,ii ,cal5d> ,no4 #cee #aai? ,,congress #b;d ,session ,s4 #djfd ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,m>* #aa1 #bjbf,mr4 ,boozman 7= himself1 ,mr4 ,sullivan1 & ,mr4 ,tub]ville7 introduc$ ! foll[+ bill2 :i* 0 read ! fir/ "t ,m>* #ab1 #bjbf,read ! second "t & plac$ on ! cal5d> ,a ,,bill ,to provide = a sy/em ( regulation ( ! (f] & sale ( digital commodities by ! ,commodity ,futures ,trad+ ,commission1 & = o!r purposes4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,digital ,commodity ,int]m$i>ies ,act4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4,,title ,i--,def9itions2 rulemaking,sec4 #aja4 ,def9itions "u ! ,commodity ,ex*ange ,act4,sec4 #ajb4 ,def9itions "u ?is ,act4,sec4 #ajc4 ,rulemak+s4,sec4 #ajd4 ,exp$iti$ regi/ration = digital commodity ex*anges1 brok]s1 & deal]s2 provisional /atus4,sec4 #aje4 ,commodity ,ex*ange ,act sav+s provisions4,sec4 #ajf4 ,adm9i/rative requirem5ts4,sec4 #ajg4 ,int]national coop]ation4,sec4 #ajh4 ,implem5tation4,sec4 #aji4 ,effective date4,sec4 #aaj4 ,s5se ( ,congress4,,title ,,ii--,regi/ration = digital commodity int]m$i>ies at ! ,commodity ,futures ,trad+ ,commission,sec4 #bja4 ,commission jurisdiction ov] digital commodity transactions4,sec4 #bjb4 ,requir+ ,futures ,commission m]*ants to use qualifi$ digital asset cu/odians4,sec4 #bjc4 ,trad+ c]tification & approval = digital commodities4,sec4 #bjd4 ,regi/ration ( digital commodity ex*anges4,sec4 #bje4 ,regi/ration & regulation ( digital commodity brok]s & deal]s4,sec4 #bjf4 ,regi/ration ( associat$ p]sons4,sec4 #bjg4 ,s(tw>e develop] protections4,sec4 #bjh4 ,portfolio m>g9+4,sec4 #bji4 ,cl>ification on cu/om] prop]ty4,sec4 #baj4 ,res\rces = implem5tation4,sec4 #baa4 ,digital commodity retail advocate4,sec4 #bab4 ,report4 ,i ,def9itions2 rulemak+ #aja4 ,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$-- 7#a7 by r$esignat+ p>agraphs 7#c71 7#d71 7#e7 ?r\gh 7#ad71 7#ae71 7#af7 ?r\gh 7#cd71 7#ce7 ?r\gh 7#ci71 & 7#dj7 ?r\gh 7#ea7 z p>agraphs 7#e71 7#f71 7#aa7 ?r\gh 7#bj71 7#bd71 7#ca7 ?r\gh 7#di71 7#ea7 ?r\gh 7#ee71 & 7#eg7 ?r\gh 7#fh71 respectively2 7#b7 by ins]t+ aft] p>agraph 7#b7 ! foll[+3 7#c7 ,associat$ p]son ( a digital commodity brok] 7,a7 ,9 g5]al ,except z provid$ 9 subp>agraph 7,b71 ! t]m associat$ p]son ( a digital commodity brok] means a p]son :o is associat$ ) a digital commodity brok] z a p>tn]1 (fic]1 employee1 or ag5t 7or any p]son occupy+ a simil> /atus or p]=m+ simil> functions7 9 any capacity t involves-- 7i7 ! solicitation or acceptance ( an ord] = ! pur*ase or sale ( a digital commodity2 or 7ii7 ! sup]vision ( any p]son engag$ 9 ! solicitation or acceptance ( an ord] = ! pur*ase or sale ( a digital commodity4 7,b7 ,exclusion ,! t]m associat$ p]son ( a digital commodity brok] does n include any p]son associat$ ) a digital commodity brok] ! functions ( :i* are solely cl]ical or m9i/]ial4 7#d7 ,associat$ p]son ( a digital commodity deal] 7,a7 ,9 g5]al ,except z provid$ 9 subp>agraph 7,b71 ! t]m associat$ p]son ( a digital commodity deal] means a p]son :o is associat$ ) a digital commodity deal] z a p>tn]1 (fic]1 employee1 or ag5t 7or any p]son occupy+ a simil> /atus or p]=m+ simil> functions7 9 any capacity t involves-- 7i7 ! solicitation or acceptance ( a contract = ! pur*ase or sale ( a digital commodity2 or 7ii7 ! sup]vision ( any p]son engag$ 9 ! solicitation or acceptance ( a contract = ! pur*ase or sale ( a digital commodity4 7,b7 ,exclusion ,! t]m associat$ p]son ( a digital commodity deal] does n include any p]son associat$ ) a digital commodity deal] ! functions ( :i* are solely cl]ical or m9i/]ial4 2 7#c7 by ins]t+ aft] p>agraph 7#f7 7z s r$esignat$7 ! foll[+3 7#g7 ,block*a9 ,! t]m block*a9 means te*nology-- 7,a7 ?r\gh :i* data is %>$ across a network t creates a public block*a9 ( 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-- 7i7 to ma9ta9 ! integrity ( ! block*a9 describ$ 9 t subp>agraph2 & 7ii7 to execute o!r functions4 7#h7 ,block*a9 application ,! t]m block*a9 application means any executable s(tw>e t is deploy$ to & ma9ta9$ on a block*a9 & compos$ ( a block*a9 protocol1 includ+ a sm>t contract or any network ( sm>t contracts1 or o!r simil> te*nology4 7#i7 ,block*a9 protocol ,! t]m block*a9 protocol means publicly available s\rce code ( a block*a9 or block*a9 application t is execut$ by ! network p>ticipants ( a block*a9 to facilitate its function+1 or o!r simil> te*nology4 7#aj7 ,block*a9 sy/em ,! t]m block*a9 sy/em means any block*a91 block*a9 application1 or network ( block*a9 applications1 toge!r ) its block*a9 protocol4 2 7#d7 by ins]t+ aft] p>agraph 7#bj7 7z s r$esignat$7 ! foll[+3 7#ba7 ,dec5traliz$ 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 ( ! transactions ( ! us]4 7#bb7 ,dec5traliz$ f9ance trad+ protocol 7,a7 ,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-- 7i7 9 accordance ) an automat$ rule or algori?m t is pr$et]m9$ & nondiscretion>y2 & 7ii7 )\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 ,exclusions 7i7 ,9 g5]al ,! t]m dec5traliz$ f9ance trad+ protocol does n include a block*a9 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 ( ! block*a9 sy/em2 7,,ii7 ! 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/em2 or 7,,iii7 a p]son or gr\p ( p]sons "u common control has ! unilat]al au?ority1 via op]ation ( ! block*a9 sy/em1 to re/rict1 c5sor1 or prohibit ! use ( ! block*a9 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#bc7 ,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 9 :i* p>ticipation is n limit$ to1 or "u ! effective control (1 any p]son or gr\p ( p]sons "u common control 7)9 ! mean+ ( section #ajd7;b7 ( ! ,digital ,asset ,m>ket ,cl>ity ,act ( #bjbf74 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 7i7 ,9 g5]al ,! 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 7ii7 ,effect ( c]ta9 delegations ,= ! 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 2 7#e7 by ins]t+ aft] p>agraph 7#bd7 7z s r$esignat$7 ! foll[+3 7#be7 ,digital asset ,! t]m digital asset means any digital repres5tation ( value :i* is record$ on a cryptographically secur$ block*a94 7#bf7 ,digital asset cu/odian ,! t]m digital asset cu/odian means a p]son :o1 z a regul> bus9ess1 holds1 ma9ta9s1 or safegu>ds digital assets = o!rs4 7#bg7 ,digital commodity 7,a7 ,9 g5]al ,! t]m digital commodity means any fungible digital asset 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*a94 7,b7 ,network tok5s ,! t]m digital commodity includes a network tok5 7z def9$ 9 section #d;,b7a7 ( ! ,securities ,act ( #aicc7 unless ! network tok5 is exclud$ f ! def9ition "u clauses 7iii7 ?r\gh 7vii7 ( subp>agraph 7,d74 7,c7 ,meme co9s 7i7 ,9 g5]al ,! t]m digital commodity includes a meme co9 unless ! meme co9 is exclud$ f ! def9ition "u subp>agraph 7,d74 7ii7 ,def9ition ,= ! purposes ( ?is p>agraph1 ! t]m meme co9 means a digital asset inspir$ by an int]net meme1 "*1 curr5t ev5t1 or tr5d = :i* ! promot] seeks to attract an en?usia/ic onl9e community to pur*ase & engage 9 trad+ ( ! digital asset prim>ily = speculative purposes4 7iii7 ,exclusions ,! ,commission1 by rule or regulation1 may exclude f ! t]m meme co9 any digital asset or class ( digital assets if ! ,commission det]m9es t ! rule or regulation w effectuate ! purposes ( ?is ,act4 7,d7 ,exclusions ,! t]m digital commodity does n include any ( ! foll[+3 7i7 ,security ,any security4 7ii7 ,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-- 7,i7 a security future 7z def9$ 9 section #b7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a7772 7,,ii7 a security-bas$ swap2 or 7,,iii7 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(7 7)9 ! mean+ ( section #b7;a77#a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a77#a7774 7iii7 ,p]mitt$ paym5t /ableco9 ,a paym5t /ableco9 7z def9$ 9 section #b ( ! ,,g5ius ,act 7,public ,law #aai-bg2 #aci ,/at4 #dai77 t is issu$ by a p]mitt$ paym5t /ableco9 issu] 7z def9$ 9 t section74 7iv7 ,bank+ deposit 7,i7 ,a deposit 7z def9$ 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac771 reg>dless ( ! te*nology us$ to record ! deposit4 7,,ii7 ,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 7v7 ,commodity ,a digital asset t ref]5ces1 repres5ts an int]e/ 91 or is functionally equival5t to-- 7,i7 an agricultural commodity2 7,,ii7 an exclud$ commodity1 o!r ?an a security2 or 7,,iii7 an exempt commodity1 o!r ?an ! digital commodity itself1 z %all be fur!r def9$ by ! ,commission4 7vi7 ,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-- 7,i7 a contract ( sale ( a commodity = future deliv]y or an option !reon2 7,,ii7 a security futures product2 7,,iii7 a swap2 7,,iv7 an agreem5t1 contract1 or transaction describ$ 9 subp>agraph 7,c77i7 or 7,d77i7 ( section #b7;c77#b72 7,v7 a commodity option au?oriz$ "u section #d;c2 or 7,,vi7 a lev]age transaction au?oriz$ "u section #ai4 7vii7 ,pool$ inve/m5t vehicle 7,i7 ,9 g5]al ,a digital asset n describ$ 9 clause 7i7 t1 bas$ on its t]ms & o!r *>act]i/ics1 is1 repres5ts1 or is functionally equival5t to an int]e/ 9-- 7aa7 a commodity pool2 or 7bb7 a pool$ inve/m5t vehicle4 7,,ii7 ,pool$ inve/m5t vehicle def9$ ,9 ?is clause1 ! t]m pool$ inve/m5t vehicle means-- 7aa7 any inve/m5t company 7z def9$ 9 section #c7;a7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#c7;a7772 7bb7 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 7#ae ,u4,s4,c4 #hj;a-#c7;a771 b = ! exclusions provid$ f t def9ition by section #c7;c7 ( su* ,act 7#ae ,u4,s4,c4 #hj;a-#c7;c771 if = purposes ( ?is subclause ! company 7 assum$ to be an issu] 7z def9$ 9 section #b ( su* ,act 7#ae ,u4,s4,c4 #hj;a-#b772 or 7cc7 any entity or p]son t is n an inve/m5t company b holds or w hold assets o!r ?an securities4 7viii7 ,good1 collectible1 & o!r noncommodity digital asset 7,i7 ,9 g5]al ,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 good or a nonfungible tok5 7z def9$ 9 section #fjb7;a7 ( ! ,digital ,asset ,m>ket ,cl>ity ,act ( #bjbf71 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 & 9-game or 9-application assets2 7cc7 aff9ity1 rew>ds1 or loyalty po9ts1 includ+ airl9e miles or cr$it c>d po9ts2 or 7dd7 rights1 lic5ses1 & tickets4 7,,ii7 ,exception ,! ,commission may det]m9e1 by rule or regulation or ord]1 t a good1 collectible1 or o!r noncommodity digital asset or class ( goods1 collectibles1 or o!r noncommodity digital assets is trad$ 9 su* a mann] or =m t ! asset or class ( assets %\ld be consid]$ a digital commodity1 su* z a mass-m9t$ s]ies ( items ) sub/antially simil> or ne>ly id5tical traits t are m>ket$ or sold int]*angeably & are prim>ily speculative 9 nature4 7#bh7 ,digital commodity brok] 7,a7 ,9 g5]al ,! t]m digital commodity brok] means any p]son :o-- 7i7 z a regul> bus9ess1 9 a digital commodity ca% or spot m>ket-- 7,i7 7aa7 solicits or accepts an ord] f a p]son :o is n an eligible contract p>ticipant = ! pur*ase or sale ( a unit ( a digital commodity2 & 7bb7 9 conjunction ) ! activity describ$ 9 item 7aa71 accepts or ma9ta9s control ov] ! funds or o!r prop]ty or assets ( ! p]son or ! execution ( ! transaction2 7,,ii7 solicits or accepts an ord] f a p]son :o is n an eligible contract p>ticipant on behalf ( a digital commodity deal] = ! pur*ase or sale ( a unit ( a digital commodity2 or 7,,iii7 solicits or accepts an ord] f a p]son :o is n an eligible contract p>ticipant = ! pur*ase or sale ( a unit ( a digital commodity on or subject to ! rules ( a regi/]$ digital commodity ex*ange2 or 7ii7 is regi/]$ ) ! ,commission z a digital commodity brok]4 7,b7 ,exceptions ,! t]m digital commodity brok] does n include a p]son solely because ! p]son-- 7i7 ent]s into #a 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 7ii7 is a bank 7z def9$ 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a777 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 section #c7;a77#d7 ( t ,act 7#ae ,u4,s4,c4 #gh;c7a77#d771 z det]m9$ by ! ,commission4 7,c7 ,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 is 9 ! public int]e/ & w effectuate ! purposes ( ?is ,act4 7#bi7 ,digital commodity deal] 7,a7 ,9 g5]al ,! t]m digital commodity deal] means any p]son :o-- 7i7 z a regul> bus9ess1 9 a spot or ca% digital commodity m>ket1 ent]s into1 or (f]s to ent] into1 a pur*ase or sale ( a unit ( a digital commodity-- 7,i7 ) a c\nt]p>ty t is n an eligible contract p>ticipant2 & 7,,ii7 n on or ?r\gh a regi/]$ digital commodity ex*ange or dec5traliz$ f9ance trad+ protocol2 or 7ii7 is regi/]$ ) ! ,commission z a digital commodity deal]4 7,b7 ,exception ,! t]m digital commodity deal] does n include a p]son solely because ! p]son-- 7i7 ent]s into #a 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 7ii7 is a bank 7z def9$ 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a777 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 ( t ,act 7#ae ,u4,s4,c4 #gh;c7a77#e771 z det]m9$ by ! ,commission4 7,c7 ,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 is 9 ! public int]e/ & w effectuate ! purposes ( ?is ,act4 7#cj7 ,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 2 7#f7 by ins]t+ aft] p>agraph 7#di7 7z s r$esignat$7 ! foll[+3 7#ej7 ,mix$ digital asset transaction ,! t]m mix$ digital asset transaction means a transaction 9 :i* a digital commodity is trad$ = a security4 2 7#g7 by ins]t+ aft] p>agraph 7#ee7 7z s r$esignat$7 ! foll[+3 7#ef7 ,qualifi$ digital asset cu/odian 7,a7 ,9 g5]al ,! t]m qualifi$ digital asset cu/odian means a digital asset cu/odian t-- 7i7 holds digital assets on behalf ( a p]son regi/]$ "u ?is ,act or a cu/om] ( a p]son regi/]$ "u ?is ,act2 & 7ii7 is 9 compliance ) subp>agraphs 7,b7 ?\gh 7,d74 7,b7 ,sup]vision requirem5t ,a digital asset cu/odian is 9 compliance ) ?is subp>agraph if ! digital asset cu/odian is subject to-- 7i7 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 7ii7 adequate sup]vision & appropriate regulation = cu/ody & safekeep+ ( digital assets by-- 7,i7 a ,/ate bank sup]visor 7z def9$ 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac772 7,,ii7 a ,/ate (fic]1 ag5cy1 or o!r entity t has prim>y regulatory au?ority ov] nondepository ,/ate tru/ companies2 7,,iii7 a ,/ate cr$it union sup]visor 7z def9$ 9 section #fjjc ( ! ,anti-,money ,laund]+ ,act ( #bjbj 7#ca ,u4,s4,c4 #ecaa note2 division ,f ( ,public ,law #aaf-bhc772 or 7,,iv7 an appropriate =eign gov]nm5tal au?ority 9 ! home c\ntry ( ! digital asset cu/odian4 7,c7 ,o!r requirem5ts ,a digital asset cu/odian is 9 compliance ) ?is subp>agraph if ! foll[+ requirem5ts are met3 7i7 ,n o!rwise prohibit$ ,! digital asset cu/odian has n be5 prohibit$ by ! applicable sup]visor describ$ 9 subp>agraph 7,b7 f engag+ 9 an activity ) respect to ! cu/ody & safekeep+ ( digital assets4 7ii7 ,in=mation %>+ 7,i7 ,9 g5]al ,! digital asset cu/odian %>es in=mation ) ! ,commission on reque/ & complies ) su* requirem5ts = p]iodic %>+ ( in=mation reg>d+ cu/om] acc\nts t ! digital asset cu/odian 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,,ii7 ,provision ( in=mation ,if ! digital asset cu/odian is subject to regulation & exam9ation by an appropriate ,f$]al bank+ ag5cy1 ! digital asset cu/odian may satisfy any in=mation reque/ describ$ 9 subclause 7,i7 by provid+ ! ,commission ) a detail$ li/+1 9 writ+1 ( ! digital assets ( a cu/om] 9 ! cu/ody (1 or use by1 ! digital asset cu/odian4 7,d7 ,rulemak+ 7i7 ,9 g5]al ,! ,commission %all prescribe rules to p]mit a p]son regi/]$ ) ! ,commission to be a qualifi$ digital asset cu/odian4 7ii7 ,cont5t ,9 prescrib+ ! rules "u clause 7i71 to be a qualifi$ digital asset cu/odian1 ! ,commission %all require a p]son regi/]$ ) ! ,commission-- 7,i7 to implem5t requirem5ts consi/5t ) ! requirem5ts describ$ 9 subp>agraph 7,e77i72 7,,ii7 to e/abli% suffici5t sy/em safegu>ds2 7,,iii7 to prev5t or mitigate conflicts ( int]e/1 z appropriate2 & 7,,iv7 to e/abli% sep>ate gov]nance arrangem5ts = ! cu/odial function ( ! entity4 7,e7 ,adequate sup]vision & appropriate regulation 7i7 ,9 g5]al ,= purposes ( subp>agraph 7,b71 ! 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,i7 receive a review & evaluation ( own]%ip1 "* & fitness1 conflicts ( int]e/1 bus9ess model1 f9ancial /atem5ts1 fund+ res\rces1 & policies & proc$ures ( ! digital asset cu/odian2 7,,ii7 hold capital suffici5t to conduct an ord]ly w9d-d[n & resolution ( ! digital asset cu/odian2 7,,iii7 protect cu/om] assets2 7,,iv7 e/abli% & ma9ta9 books & records reg>d+ ! bus9ess ( ! digital asset cu/odian2 7,v7 submit f9ancial /atem5ts & audit$ f9ancial /atem5ts to ! applicable sup]visor describ$ 9 subp>agraph 7,b72 7,,vi7 provide disclosures to ! applicable sup]visor describ$ 9 subp>agraph 7,b7 reg>d+ actions1 proce$+s1 & o!r items z det]m9$ by ! sup]visor2 7,,vii7 ma9ta9 & en=ce policies & proc$ures = compliance ) applicable ,/ate & ,f$]al laws1 includ+ ^? relat$ to anti-money laund]+ & cyb]security2 7,,viii7 e/abli% a bus9ess cont9uity plan to ensure functionality 9 cases ( disruption2 & 7,,ix7 e/abli% policies & proc$ures to resolve compla9ts4 7ii7 ,rulemak+ ) respect to def9itions 7,i7 ,9 g5]al ,= purposes ( ?is p>agraph1 ! ,commission %all1 by rule1 fur!r def9e ! t]ms adequate sup]vision & appropriate regulation z necess>y & appropriate = ! protection ( cu/om]s1 & consi/5t ) ! purposes ( ?is ,act4 7,,ii7 ,exi/+ digital asset cu/odians ,a ,/ate depository in/itution or a tru/ company op]at+ z a digital asset cu/odian be=e ! effective date ( a rulemak+ "u subclause 7,i7 is deem$ subject to adequate sup]vision & appropriate regulation if-- 7aa7 ! ,/ate depository in/itution or tru/ company is expressly p]mitt$ by a ,/ate bank sup]visor to engage 9 ! cu/ody & safekeep+ ( digital assets2 7bb7 ! ,/ate bank sup]visor has e/abli%$ lic5s+1 exam9ation1 & sup]visory processes t require ! ,/ate depository in/itution or tru/ company to1 at a m9imum1 meet ! conditions describ$ 9 subclauses 7,i7 ?r\gh 7,,ix7 ( clause 7i72 & 7cc7 ! ,/ate depository in/itution or tru/ company is 9 good /&+ ) its ,/ate bank sup]visor4 7,,iii7 ,transition p]iod = c]ta9 cu/odians ,9 implem5t+ ! rulemak+ "u subclause 7,i71 ! ,commission %all provide a transition p]iod ( n less ?an #b ye>s = any ,/ate depository in/itution or tru/ company t is deem$ subject to adequate sup]vision & appropriate regulation "u subclause 7,,ii7 on ! effective date ( ! rulemak+4 7,f7 ,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 2 & 7#h7 9 p>agraph 7#eg7 7z s r$esignat$7-- 7,a7 9 subp>agraph 7,e71 by /rik+ & at ! end2 7,b7 9 subp>agraph 7,f71 by /rik+ ! p]iod at ! end & ins]t+ 2 &2 & 7,c7 by add+ at ! end ! foll[+3 7,g7 a digital commodity ex*ange regi/]$ "u section #e;i4 4 7b7 ,con=m+ am5dm5ts 7#a7 ,section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a7 is am5d$-- 7,a7 9 p>agraph 7#cb77;,a7 7z r$esignat$ by subsection 7a77#a771 9 ! matt] prec$+ clause 7i71 by /rik+ 7#ah77;,a7 & ins]t+ 7#cc77;,a72 & 7,b7 9 p>agraph 7#cc77;,a77vii77,,iii77aa7 7z r$esignat$ by subsection 7a77#a771 by /rik+ 7#ag77;,a7 & ins]t+ 7#cb77;,a74 7#b7 ,section #d7;c77#a77;,a77i77,i7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #f7;c77#a77;,a77i77,i77 is am5d$ by /rik+ p>agraphs 7#b71 7#c71 7#d71 7#e71 & 7#g71 p>agraph 7#ah77;,a77vii77,,iii71 p>agraphs 7#bc71 7#bd71 7#ca71 7#cb71 7#ch71 7#ci71 7#da71 7#db71 7#df71 7#dg71 7#dh71 & 7#di7 ( section #a;a & ins]t+ p>agraphs 7#b71 7#e71 7#f71 7#aa71 7#ac71 7#cc77;,a77vii77,,iii71 7#ch71 7#ci71 7#df71 7#dg71 7#ed71 7#ee71 7#eh71 7#ei71 7#fc71 7#fd71 7#fe71 & 7#ff7 ( section #a;a4 7#c7 ,section #dq7a77#a7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #fq7a77#a77 is am5d$ by /rik+ #a;a7#i7 & ins]t+ #a;a7#ae74 7#d7 ,section #ds ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #fs7 is am5d$-- 7,a7 9 subsection 7f77#a77;,d71 by /rik+ #a;a7#dg77;,a77v7 & ins]t+ #a;a7#fd77;,a77v72 & 7,b7 9 subsection 7h77#e77;,a77i71 9 ! matt] prec$+ subclause 7,i71 by /rik+ #a;a7#ah7 ( ?is ,act & ins]t+ #a;a7#cc74 7#e7 ,section #dt7b77#a77;,c7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #ft7b77#a77;,c77 is am5d$ by /rik+ #a;a7#dg77;,a77v771 & ins]t+ #a;a7#fd77;,a77v7714 7#f7 ,section #e ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #g7 is am5d$-- 7,a7 9 subsection 7d77#bc71 by /rik+ #a;a7#dg77;,a77v7 & ins]t+ #a;a7#fd77;,a77v72 & 7,b7 9 subsection 7e77#a71 by /rik+ #a;a7#i7 & ins]t+ #a;a7#ae74 7#g7 ,section #e;b7k77#c77;,a7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #g;a-#a7k77#c77;,a77 is am5d$ by /rik+ #a;a7#dg77;,a77v77 & ins]t+ #a;a7#fd77;,a77v774 7#h7 ,section #e;h7f77#aj77;,a77iii7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #g;b-#c7;f77#aj77;,a77iii77 is am5d$ by /rik+ #a;a7#dg77;,a77v7 & ins]t+ #a;a7#fd77;,a77v74 7#i7 ,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#fe74 7#aj7 ,section #e7;e7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;e7e77 is am5d$ by /rik+ section #a;a7#ah7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a7#ah77 & ins]t+ section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a74 7#aa7 ,section #c;,c7g77#c77;,a77v7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c-#c7;g77#c77;,a77v77 is am5d$ by /rik+ section #a;a7#aj7 ( ! ,commodity ,ex*ange ,act2 & ins]t+ section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a724 7#ab7 ,section #f7;g77#e77;,b77i7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;f7g77#e77;,b77i77 is am5d$-- 7,a7 9 subclause 7,i71 by /rik+ section #a;a7#ah77;,b77ii7 ( ! ,commodity ,ex*ange ,act & ins]t+ subp>agraph 7,b77ii7 ( section #a;a7#cc7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a7#cc772 & 7,b7 9 subclause 7,,ii71 by /rik+ su* section #a;a7#ah77 & ins]t+ t section74 7#ac7 ,section #ae;,f7h77#e77;,a77i7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho-#aj7;h77#e77;,a77i77 is am5d$1 9 ! matt] prec$+ subclause 7,i71 by /rik+ #a;a7#ah7 & ins]t+ #a;a7#cc74 7#ad7 ,section #gab ( ! ,wall ,/reet ,transp>5cy & ,acc\ntability ,act ( #bjaj 7#ae ,u4,s4,c4 #hcjb7 is am5d$-- 7,a7 9 subsection 7a77#h71 by /rik+ #a;a7#dg77;,d7 ea* place x appe>s & ins]t+ #a;a7#fd77;,d72 & 7,b7 9 subsection 7d77#a71 by /rik+ #a;a7#dg77;,a77v7 ea* place x appe>s & ins]t+ #a;a7#fd77;,a77v74 7#ae7 ,section #geb7;a7 ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ae ,u4,s4,c4 #hcbe7;a77 is am5d$ by /rik+ section #a;a7#ci7 ( ! ,commodity ,ex*ange ,act71 & ins]t+ section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a7714 7#af7 ,section #djc ( ! ,legal ,c]ta9ty = ,bank ,products ,act ( #bjjj 7#g ,u4,s4,c4 #bg;a7 is am5d$-- 7,a7 9 subsection 7a77#b71 by /rik+ #a;a7#dg77;,a77v7 & ins]t+ #a;a7#fd77;,a77v72 & 7,b7 9 ea* ( subsections 7b77#a7 & 7c77#b71 by /rik+ #a;a7#dg7 & ins]t+ #a;a7#fd74 #ajb4 ,def9itions "u ?is ,act ,9 ?is ,act1 ! t]ms block*a91 dec5traliz$ f9ance messag+ sy/em1 dec5traliz$ f9ance trad+ protocol1 dec5traliz$ gov]nance sy/em1 digital asset1 digital commodity1 digital commodity brok]1 digital commodity deal]1 digital commodity ex*ange1 & mix$ digital asset transaction h ! mean+s giv5 ^? t]ms1 respectively1 9 section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a74 #ajc4 ,rulemak+s 7a7 ,def9itions ,! ,commodity ,futures ,trad+ ,commission %all issue rules to fur!r def9e ! t]ms associat$ p]son ( a digital commodity brok]1 associat$ p]son ( a digital commodity deal]1 block*a91 block*a9 application1 block*a9 protocol1 block*a9 sy/em1 dec5traliz$ f9ance messag+ sy/em1 dec5traliz$ f9ance trad+ protocol1 dec5traliz$ gov]nance sy/em1 & digital commodity7z def9$ 9 section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a774 7b7 ,jo9t rulemak+ = ex*anges & int]m$i>ies ,! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all jo9tly issue rules to exempt p]sons dually regi/]$ ) ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission f duplicative1 conflict+1 or unduly burd5some provisions ( ?is ,act1 ! securities laws 7z def9$ 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a7771 & ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq471 & ! rules "u ^? ,acts1 to ! ext5t t ! exemption w\ld-- 7#a7 fo/] ! developm5t ( fair & ord]ly m>kets 9 digital assets2 7#b7 be necess>y or appropriate = ! protection ( cu/om]s2 & 7#c7 be consi/5t ) ! protection ( inve/ors4 7c7 ,jo9t rulemak+ = mix$ digital asset transactions ,! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all jo9tly issue rules applicable to mix$ digital asset transactions "u ?is ,act & ! am5dm5ts made by ?is ,act1 includ+ by fur!r def9+ su* t]m4 7d7 ,jo9t rulemak+1 proc$ures1 or guidance = deli/+ ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is ,act1 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission 7ref]r$ to 9 ?is subsection z ! ,commissions7 %all jo9tly issue rules1 proc$ures1 or guidance 7z det]m9$ appropriate by ! ,commissions7 reg>d+ ! process to deli/ an asset = trad+ "u section #ajd if ! ,commissions det]m9e t ! li/+ is inconsi/5t ) ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq471 ! securities laws 7z def9$ 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a777 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 ) 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]*ant 7z def9$ 9 section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a772 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 ,requirem5ts ,) respect to a jo9t rulemak+ describ$ 9 p>agraph 7#a7-- 7,a7 ! jo9t rule %all be 9 ! public int]e/ & provide = ! appropriate protection ( cu/om]s2 7,b7 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all consid] ! public int]e/ ( ! jo9t rule ?r\gh ! solicitation ( public comm5ts2 & 7,c7 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission %all 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 ,conflicts ( int]e/ rulemak+ 7#a7 ,rulemak+ ,n lat] ?an #ag mon?s 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 7z def9$ 9 section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a77 & p]sons requir$ to be regi/]$ ) ! ,commodity ,futures ,trad+ ,commission1 includ+ conflicts ( int]e/ relat$ to v]tically integrat$ m>ket /ructures4 7#b7 ,m9imum /&>ds ,! rules issu$ "u p>agraph 7#a7 %all1 at a m9imum-- 7,a7 e/abli% gov]nance1 p]sonnel1 & f9ancial res\rce sep>ation among affiliat$ entities t p]=m di/9ct regulat$ functions2 7,b7 prohibit trad+ facilities or int]m$i>ies f act+ z c\nt]p>ties to cu/om] transactions or o!rwise engag+ 9 self-deal+1 except z provid$ 9 section #e;i7b77#b77;,b7 ( ! ,commodity ,ex*ange ,act2 7,c7 require appropriate safegu>ds = cu/ody & use ( cu/om] assets to prev5t conflicts aris+ f comm+l+ or misuse2 7,d7 m&ate disclosure & managem5t ( mat]ial conflicts1 includ+ ^? involv+ affiliat$ entities or propriet>y trad+2 & 7,e7 ensure indep5d5t ov]sight & decision-mak+ 9 m>ket op]ations & compliance4 #ajd4 ,exp$iti$ 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 ex*ange1 digital commodity brok]1 or digital commodity deal] 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 ex*ange pursuant to section #e;i ( ! ,commodity ,ex*ange ,act2 7,b7 digital commodity brok] pursuant to section #du ( ! ,commodity ,ex*ange ,act2 or 7,c7 digital commodity deal] pursuant to section #du ( ! ,commodity ,ex*ange ,act4 7#b7 ,exp$it$ process ,n lat] ?an #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 %all be 9 provisional /atus until-- 7,a7 9 ! case ( a digital commodity brok] or digital commodity deal]1 ! date t is #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 ! date t is #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 requir$ ( p]sons regi/]$ ) ! ,commodity ,futures ,trad+ ,commission "u section #h;e ( ! ,commodity ,ex*ange ,act4 7c7 ,op]ations prior to regulations 7#a7 ,requirem5ts ,a p]son 9 provisional /atus pursuant to subsection 7b7 %all be subject to ! requirem5ts ( ?is section & ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq47 & any rules or regulations promulgat$ "u ?is section or t ,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 pursuant to subsection 7b7 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 ! rulemak+ on def9itions requir$ "u section #ajc7;a7 is effective4 7,b7 ,deli/+ ,be=e ! effective date ( ! rulemak+ on def9itions "u section #ajc7;a71 a p]son 9 provisional /atus pursuant to subsection 7b7 %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 #ajc7;e74 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 9 provisional /atus pursuant to subsection 7b7 f any requirem5ts ( ?is section or ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq47 or any rules or regulations promulgat$ "u ?is section or t ,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 ,exception ,p>agraph 7#a7 %all n apply to any p]son :o regi/]s pursuant to subsection 7a74 #aje4 ,commodity ,ex*ange ,act sav+s provisions 7a7 ,9 g5]al ,no?+ 9 ?is ,act or any am5dm5t made by ?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 7#g ,u4,s4,c4 #a;a et seq47 z-- 7,a7 a contract ( sale ( a commodity = future deliv]y or an option on su* a contract 7z ^? t]ms are def9$ 9 section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a772 7,b7 a swap 7z def9$ 9 t section72 7,c7 a security futures product 7z def9$ 9 t section72 7,d7 an option au?oriz$ "u section #d;c ( t ,act 7#g ,u4,s4,c4 #f;c72 7,e7 an agreem5t1 contract1 or transaction describ$ 9 section #b7;c77#b77;,c77i7 ( t ,act 7#g ,u4,s4,c4 #b7;c77#b77;,c77i772 or 7,f7 a lev]age transaction au?oriz$ "u section #ai ( t ,act 7#g ,u4,s4,c4 #bc72 or 7#b7 ! activities ( any p]son ) respect to any agreem5t1 contract1 or transaction describ$ 9 p>agraph 7#a74 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 ,effect ,an agreem5t1 contract1 or transaction describ$ 9 subsection 7a77#a7 %all n be regulat$ z a digital commodity agreem5t1 contract1 or transaction solely because x is issu$1 record$1 repres5t$1 or transf]r$ on a block*a9 or o!r simil> te*nology4 #ajf4 ,adm9i/rative requirem5ts ,section #d;c7a7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #f;c7a77 is am5d$-- 7#a7 9 p>agraph 7#c7-- 7,a7 9 subp>agraph 7,b71 by /rik+ or at ! end2 7,b7 9 subp>agraph 7,c71 by /rik+ ! p]iod & ins]t+ 2 or2 & 7,c7 by add+ at ! end ! foll[+3 7,d7 a contract ( sale ( a digital commodity4 2 & 7#b7 9 p>agraph 7#d7-- 7,a7 9 subp>agraph 7,a7-- 7i7 9 clause 7ii71 by /rik+ or at ! end2 7ii7 9 clause 7iii71 by /rik+ ! p]iod & ins]t+ 2 or2 & 7iii7 by add+ at ! end ! foll[+3 7iv7 a contract ( sale ( a digital commodity4 2 7,b7 9 subp>agraph 7,b7-- 7i7 9 clause 7ii71 by /rik+ or at ! end2 7ii7 9 clause 7iii71 by /rik+ ! p]iod & ins]t+ 2 or2 & 7iii7 by add+ at ! end ! foll[+3 7iv7 a contract ( sale ( a digital commodity4 2 & 7,c7 9 subp>agraph 7,c7-- 7i7 by r$esignat+ clauses 7i7 ?r\gh 7iii7 z subclauses 7,i7 ?r\gh 7,,iii71 respectively1 & ind5t+ appropriately2 7ii7 9 ! matt] prec$+ subclause 7,i7 7z s r$esignat$71 by /rik+ ,x %all & ins]t+ ! foll[+3 7i7 ,9 g5]al ,x %all 2 7iii7 9 clause 7i7 7z s designat$7-- 7,i7 9 subclause 7,,ii71 by /rik+ or at ! end2 & 7,,ii7 9 subclause 7,,iii71 by /rik+ a swap1 provid$1 h[ev]1 t no?+ & ins]t+ ! foll[+3 8a swap2 or 7,,iv7 a contract ( sale ( a digital commodity4 7ii7 ,effect ,no?+ 2 & 7iv7 9 clause 7ii7 7z s designat$71 by /rik+ clauses 7i71 7ii71 or 7iii7 & ins]t+ any ( subclauses 7,i7 ?r\gh 7,,iv7 ( clause 7i74 #ajg4 ,int]national coop]ation ,9 ord] to promote great] consi/5cy 9 effective & consi/5t global regulation ( digital commodities1 ! ,commodity ,futures ,trad+ ,commission1 z appropriate-- 7#a7 %all consult & coord9ate ) =eign regulatory au?orities on ! application ( consi/5t int]national /&>ds ) respect to ! regulation ( digital commodities2 & 7#b7 may ent] into su* in=mation-%>+ arrangem5ts z are det]m9$ necess>y or appropriate = ! protection ( inve/ors1 cu/om]s1 & us]s ( digital commodities4 #ajh4 ,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 #ag mon?s 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 ,act & ! am5dm5ts made by ?is ,act1 ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission may1 be=e any effective date provid$ 9 ?is ,act or an am5dm5t made by ?is ,act-- 7,a7 promulgate rules1 regulations1 or ord]s p]mitt$ or requir$ by ?is ,act or ! am5dm5ts made by ?is ,act2 7,b7 conduct /udies & prep>e reports & recomm5dations requir$ by ?is ,act or ! am5dm5ts made by ?is ,act2 7,c7 regi/] p]sons "u ?is ,act or ! am5dm5ts made by ?is ,act2 & 7,d7 exempt p]sons1 agreem5ts1 contracts1 or transactions f provisions ( ?is ,act or ! am5dm5ts made by ?is ,act1 9 accordance ) ?is ,act or ^? am5dm5ts4 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 ,act or ! am5dm5ts made by ?is ,act4 7c7 ,s5se ( ,congress ,x is ! s5se ( ,congress t prior to implem5tation ( ?is ,act ! ,commodity ,futures ,trad+ ,commission-- 7#a7 be fully con/itut$ z describ$ 9 section #b7;a77#b7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #b7;a77#b77 to c>ry out all exi/+ responsibilities & ^? direct$ by ?is ,act1 ) n few] ?an #b ( ! ,commission]s nom9at$1 prior to su* appo9tm5ts1 foll[+ consultation & coord9ation ) ! rank+ m9ority memb] ( ! ,committee on ,agriculture1 ,nutrition1 & ,=e/ry ( ! ,s5ate2 & 7#b7 be appropriately /aff$ to ensure suffici5t regulatory capacity1 exp]tise1 & en=cem5t read9ess necess>y to implem5t ?is ,act & ! am5dm5ts made by ?is ,act4 #aji4 ,effective date 7a7 ,9 g5]al ,except z provid$ 9 subsection 7b7 & z o!rwise provid$ 9 ?is ,act or an am5dm5t made by ?is ,act1 ?is ,act & ! am5dm5ts made by ?is ,act %all take effect on ! date t is #ag mon?s aft] ! date ( enactm5t ( ?is ,act4 7b7 ,rulemak+ provisions ,to ! ext5t t a provision ( ?is ,act or an am5dm5t made by ?is ,act requires a rulemak+1 ! provision %all take effect on ! lat] (-- 7#a7 #ag mon?s aft] ! date ( enactm5t ( ?is ,act2 & 7#b7 #abj days aft] ! publication 9 ! ,f$]al ,regi/] ( ! f9al rule implem5t+ ! provision4 #aaj4 ,s5se ( ,congress ,x is ! s5se ( ,congress t no?+ 9 ?is ,act or any am5dm5t made by ?is ,act %\ld be int]pret$ to au?orize any entity to regulate any commodity1 o!r ?an a digital commodity1 on any spot m>ket4 ,,ii ,regi/ration = digital commodity int]m$i>ies at ! ,commodity ,futures ,trad+ ,commission #bja4 ,commission jurisdiction ov] digital commodity transactions 7a7 ,sav+s clause ,section #b7;a77#a7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #b7;a77#a77 is am5d$ by add+ at ! end ! foll[+3 7,j7 7i7 ,except z expressly provid$ 9 ?is ,act1 no?+ 9 ! ,digital ,commodity ,int]m$i>ies ,act or any am5dm5t made by t ,act %all affect or apply to1 or be int]pret$ to affect or apply to-- 7,i7 any agreem5t1 contract1 or transaction t is subject to ?is ,act z-- 7aa7 a contract ( sale ( a commodity = future deliv]y or an option on su* a contract2 7bb7 a swap2 7cc7 a security futures product2 7dd7 an option au?oriz$ "u section #d;c2 7ee7 an agreem5t1 contract1 or transaction describ$ 9 subp>agraph 7,c77i7 or 7,d77i7 ( subsection 7c77#b72 or 7ff7 a lev]age transaction au?oriz$ "u section #ai2 or 7,,ii7 ! activities ( any p]son ) respect to any su* agreem5t1 contract1 or transaction4 7ii7 ,an agreem5t1 contract1 or transaction describ$ 9 clause 7i77,i7 %all n be regulat$ z a digital commodity agreem5t1 contract1 or transaction solely because x is issu$1 record$1 repres5t$1 or transf]r$ on a block*a9 or o!r simil> te*nology4 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$-- 7#a7 9 ! matt] prec$+ subp>agraph 7,a71 by /rik+ section1 #e;b1 or & ins]t+ section #e;b or2 7#b7 9 subp>agraph 7,f71 by /rik+ or at ! end2 7#c7 9 subp>agraph 7,g71 by /rik+ ! p]iod & ins]t+ 2 or2 & 7#d7 by add+ at ! end ! foll[+3 7,h7 a paym5t /ableco9 7z def9$ 9 section #b ( ! ,,g5ius ,act 7,public ,law #aai-bg2 #aci ,/at4 #dai77 t is issu$ by a p]mitt$ paym5t /ableco9 issu] 7z def9$ 9 t section7 7ref]r$ to 9 ?is subsection z a p]mitt$ paym5t /ableco974 4 7c7 ,commission jurisdiction ov] digital commodity transactions ,section #b7;c77#b7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #b7;c77#b77 is am5d$-- 7#a7 9 subp>agraph 7,d7-- 7,a7 9 clause 7ii7-- 7i7 9 subclause 7,i71 by ins]t+ aft] p>agraph 7#a7 ! foll[+3 7o!r ?an an agreem5t1 contract1 or transaction 9 a p]mitt$ paym5t /ableco972 7ii7 by /rik+ subclause 7,,iv72 & 7iii7 by r$esignat+ subclause 7,v7 z subclause 7,,iv72 7,b7 by r$esignat+ clause 7iv7 z clause 7v72 7,c7 by ins]t+ aft] clause 7iii7 ! foll[+3 7iv7 ,digital commodities2 p]mitt$ paym5t /ableco9s ,?is subp>agraph %all n apply to a contract ( sale ( a digital commodity or a p]mitt$ paym5t /ableco9 t results 9 actual deliv]y )9 #b days or su* o!r p]iod z ! ,commission may det]m9e by rule or regulation bas$ ^u ! typical comm]cial practice 9 ca% or spot m>kets = ! digital commodity or p]mitt$ paym5t /ableco9 involv$4 2 & 7,d7 by ins]t+ aft] clause 7v7 7z s r$esignat$7 ! foll[+3 7vi7 ,retail commodity transaction rulemak+ ,! ,commission %all1 by rule or regulation1 e/abli% appropriate conditions1 requirem5ts1 or limitations ) respect to ! ext5sion ( lev]age1 m>g91 or f9anc+ 9 connection ) any ca% or spot digital commodity agreem5t1 contract1 or transaction subject to ?is subp>agraph4 7vii7 ,fur!r rulemak+ au?ority ,9 ord] to promote responsible innovation & fair competition1 or protect cu/om]s1 ! ,commission may by rule or regulation exempt1 ei!r unconditionally or on /at$ t]ms or conditions or = /at$ p]iods1 & ei!r retroactively or prospectively1 or bo?1 a digital commodity ex*ange or a digital commodity brok] f ! requirem5ts ( ?is subp>agraph1 if ! ,commission det]m9es t ! exemption w\ld be consi/5t ) ! public int]e/ & ! purposes ( ?is ,act4 2 & 7#b7 by add+ at ! end ! foll[+3 7,f7 ,commission jurisdiction ) respect to digital commodity transactions 7i7 ,9 g5]al ,subject to sections #f;d & #ab7;e71 ! ,commission %all h exclusive jurisdiction ) respect to any acc\nt1 agreem5t1 contract1 or transaction involv+ a contract ( sale ( a digital commodity 9 int]/ate comm]ce1 includ+ 9 a digital commodity ca% or spot m>ket1 t is (f]$1 solicit$1 trad$1 facilitat$1 execut$1 cle>$1 report$1 or o!rwise dealt 9-- 7,i7 on or subject to ! rules ( a regi/]$ entity or an entity t is requir$ to be regi/]$ z a regi/]$ entity2 or 7,,ii7 by any o!r entity regi/]$1 or requir$ to be regi/]$1 ) ! ,commission4 7ii7 ,limitations ,clause 7i7 %all n apply ) respect to-- 7,i7 cu/odial or depository activities = a digital commodity ( an entity regulat$ by-- 7aa7 an appropriate ,f$]al bank+ ag5cy2 or 7bb7 a ,/ate bank sup]visor 7z def9$ 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac772 7,,ii7 an (f] or sale ( an inve/m5t contract involv+ a digital commodity or a securities (f] or sale involv+ a digital commodity2 or 7,,iii7 a mix$ digital asset transaction4 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] reg>d+ ! op]ation ( a p]mitt$ paym5t /ableco9 issu] or a p]mitt$ paym5t /ableco94 4 7d7 ,network tok5s & ancill>y assets ,section #b ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #b7 is am5d$ by add+ at ! end ! foll[+3 7k7 ,treatm5t ( second>y m>ket network tok5s & c]tifi$ ancill>y assets ,! second>y m>ket (f] or sale ( a network tok5 7z def9$ 9 section #d;,b7a7 ( ! ,securities ,act ( #aicc7 o!r ?an ! (f] or sale ( an inve/m5t contract pursuant to :i* an ancill>y asset is (f]$ or sold by an ancill>y asset orig9ator1 or an und]writ] ) respect to an inve/m5t contract pursuant to :i* su* ancill>y asset 0 orig9ally sold1 %all be consid]$ an (f] or sale ( a digital commodity4 4 7e7 ,con=m+ am5dm5ts 7#a7 ,p>agraph 7#ae7 ( section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a7 7z am5d$ by section #ag7;f7 ( ! ,,g5ius ,act 7,public ,law #aai-bg2 #aci ,/at4 #dfc7 & z r$esignat$ by section #aja7;a77#a77 is am5d$ by /rik+ ! second s5t5ce4 7#b7 ,section #b7;a77#a77;,a7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #b7;a77#a77;,a77 is am5d$1 9 ! fir/ s5t5ce1 by /rik+ section #ai ( ?is ,act & ins]t+ subp>agraph 7,f7 or 7,g7 ( subsection 7c77#b7 or section #ai4 7#c7 ,section #d7;c77#a7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c #f7;c77#a77 is am5d$ by add+ aft] subp>agraph 7,b7 ! foll[+3 ,= purposes ( ?is p>agraph1 an agreem5t1 contract1 or transaction t is subject to ! jurisdiction ( ! ,commission "u any ( ! am5dm5ts made to ?is ,act by ! ,digital ,commodity ,int]m$i>ies ,act %all be subject to subsection 7a74 4 #bjb4 ,requir+ ,futures ,commission m]*ants to use qualifi$ digital asset cu/odians ,section #d;d ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #f;d7 is am5d$-- 7#a7 9 subsection 7a77#b7-- 7,a7 9 ! fir/ proviso1 by /rik+ any bank or tru/ company & ins]t+ any bank1 tru/ company1 or qualifi$ 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 or ) a & ins]t+ any bank1 tru/ company1 qualifi$ digital asset cu/odian1 or4 #bjc4 ,trad+ c]tification & approval = digital commodities ,section #e;c ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #g;a-#b7 is am5d$-- 7#a7 9 subsection 7a77#a71 by /rik+ #e7;d7 & #e;b7c77#b7 & ins]t+ #e7;d71 #e;b7c77#b71 & #e;i7c72 7#b7 9 subsection 7b7-- 7,a7 9 ea* ( p>agraphs 7#a7 & 7#b71 by ins]t+ digital commodity ex*ange1 be=e d]ivatives2 & 7,b7 9 p>agraph 7#c71 by ins]t+ digital commodity ex*ange1 be=e d]ivatives ea* place x appe>s2 7#c7 9 subsection 7c7-- 7,a7 9 p>agraph 7#b71 by ins]t+ or p>ticipants be=e 792 7,b7 9 p>agraph 7#d77;,b71 by /rik+ #a;a7#aj7 & ins]t+ #a;a7#af72 & 7,c7 9 p>agraph 7#e71 by add+ at ! end ! foll[+3 7,d7 ,special rules = digital commodity contracts ,9 c]tify+ any new rule or rule am5dm5t1 or li/+ any new contract or in/rum5t1 9 connection ) a contract ( sale ( a commodity = future deliv]y1 option1 swap1 or o!r agreem5t1 contract1 or transaction1 t is bas$ on or ref]5ces a digital commodity1 a regi/]$ entity may 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 ,9 mak+ a writt5 c]tification "u ?is subsection1 an eligible entity %all furni% to ! ,commission an analysis ( h[ ! digital commodity meets ! requirem5ts ( section #e;i7c77#c74 7#c7 ,modifications 7,a7 ,9 g5]al ,an eligible entity %all modify a c]tification made "u p>agraph 7#a7 to acc\nt = mat]ial *anges 9 any in=mation provid$ 9 connection ) ! requirem5ts ( section #e;i7c77#c74 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$-- 7i7 once1 = #cj bus9ess days1 ?r\gh writt5 notice to ! eligible entity by ! ,commission-- 7,i7 t !re are novel or complex issues t require additional "t to analyze2 7,,ii7 t ! explanation by ! submitt+ eligible entity is inadequate2 or 7,,iii7 ( a pot5tial inconsi/5cy ) ?is ,act2 & 7ii7 once1 = an additional #cj bus9ess days1 ?r\gh writt5 notice to ! eligible entity f ! ,commission t includes a description ( any issues ) ! c]tification1 includ+ any-- 7,i7 novel or complex issues t require additional "t to analyze2 7,,ii7 miss+ in=mation or inadequate explanations2 or 7,,iii7 pot5tial inconsi/5cies ) ?is ,act4 7#f7 ,prior approval be=e regi/ration 7,a7 ,9 g5]al ,a p]son apply+ = regi/ration ) ! ,commission = ! purposes ( li/+ or (f]+ a digital commodity = trad+ 9 a digital commodity ca% or spot m>ket may reque/ t ! ,commission grant prior approval = ! p]son to li/ or (f] ! digital commodity on be+ regi/]$ ) ! ,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 reque/$ "u subp>agraph 7,a7 unless ! ,commission f9ds t ! li/+ is inconsi/5t ) ?is ,act or ! rules & regulations prescrib$ "u ?is ,act4 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 subp>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 #bjd4 ,regi/ration ( digital commodity ex*anges 7a7 ,9 g5]al ,! ,commodity ,ex*ange ,act is am5d$ by ins]t+ aft] section #e;h 7#g ,u4,s4,c4 #g;b-#c7 ! 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 7i7 ,9 g5]al ,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 %all require = ! purpose ( mak+ ! det]m9ations requir$ = approval4 7ii7 ,rulemak+ requir$ ,! ,commission %all1 by rule1 prescribe ! cont5ts ( an application "u clause 7i71 includ+ gov]nance1 res\rces1 sy/ems safegu>ds1 surveillance1 & conflict managem5t4 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 s]ves only cu/om]s 9 a s+le ,/ate1 t]ritory1 or possession ( ! ,unit$ ,/ates2 7ii7 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 7iii7 is already regi/]$ z a designat$ contract m>ket1 provid$ t ! trad+ facility %all-- 7,i7 provide reasonable notice to ! ,commission ( its int5tion to engage 9 (f]+ a ca% or spot m>ket 9 at lea/ #a digital commodity2 & 7,,ii7 comply ) all o!r provisions ( ?is ,act & ! rules promulgat$ !reund] z !y apply to a digital commodity ex*ange4 7#b7 ,additional regi/rations 7,a7 ,rules ,9 ord] to fo/] ! developm5t ( fair & ord]ly m>kets1 protect cu/om]s1 & promote responsible innovation1 ! ,commission %all-- 7i7 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 prescribe rules e/abli%+ requirem5ts = ! id5tification1 mitigation1 & resolution ( conflicts ( int]e/ among & across affiliat$ entities or entities ) multiple regi/rations "u ?is ,act1 includ+ conflicts ( int]e/ relat$ to v]tically integrat$ m>ket /ructures & _! v>y+ responsibilities & activities2 & 7iii7 aft] an analysis ( ! risks & b5efits1 prescribe rules to provide = portfolio m>g9+ 9 accordance ) section #ajc7;e7 ( ! ,digital ,commodity ,int]m$i>ies ,act4 7,b7 ,regi/ration requir$ ,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$]al regulator4 7b7 ,trad+ 7#a7 ,prohibition on c]ta9 trad+ practices 7,a7 ,contracts design$ to defraud or mislead ,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 ,prohibit$ transactions ,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 ,en=cem5t au?ority ,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 ( a digital commodity ex*ange %all n trade on or subject to ! rules ( ! digital commodity ex*ange = its own acc\nt4 7,b7 ,exceptions ,subject to ! limitations describ$ 9 subp>agraph 7,c71 a digital commodity ex*ange or any affiliate ( a digital commodity ex*ange may trade on ! digital commodity ex*ange = its own acc\nt s long z ! trad+ is n solely = ! purpose ( ! pr(it ( ! digital commodity ex*ange1 includ+ ! foll[+ transactions3 7i7 ,cu/om] direction ,a transaction =1 or ent]$ into at ! direction (1 or = ! b5efit (1 an unaffiliat$ cu/om]4 7ii7 ,liquidity provision ,a transaction 9 connection ) ! provision ( liquidity on ! digital commodity ex*ange if conduct$ pursuant to policies & proc$ures reasonably design$ to limit su* activity to ! reasonably expect$ cu/om] dem& = liquidity on ! digital commodity ex*ange4 7iii7 ,risk-mitigat+ h$g+ ,a transaction 9 connection ) risk-mitigat+ h$g+ activities t are design$ to r$uce specific risks to ! digital commodity ex*ange or its affiliate 9 connection ) & relat$ to its digital commodity activities4 7,c7 ,rulemak+ ,! ,commission %all adopt rules e/abli%+ appropriate conditions1 requirem5ts1 or o!r limitations on ! use ( ! exceptions describ$ 9 subp>agraph 7,b7 t are necess>y = ! protection ( cu/om]s1 ! promotion ( innovation1 or ! ma9t5ance ( fair1 ord]ly1 & effici5t m>kets1 :i* %all require t ! digital commodity ex*ange has put 9 place adequate protections aga9/ conflicts ( int]e/1 su* z timely & effective disclosure to cli5ts1 cu/om]s1 & c\nt]p>ties ( any mat]ial conflict ( int]e/ or in=mation b>ri]s reasonably design$ to protect aga9/ su* conflicts ( int]e/4 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$ digital commodity ex*ange pursuant to subp>agraph 7,b71 ! digital commodity ex*ange or affiliate %all provide to ! ,commission notice t %all enum]ate h[ any propos$ activity is consi/5t ) ! exceptions describ$ 9 subp>agraph 7,b7 & ! purposes ( ?is ,act4 7,e7 ,commission visibility into liquidity provision ,a digital commodity ex*ange %all report to ! ,commission su* quantitative metrics z ! ,commission det]m9es1 by rule1 to be appropriate to provide ! ,commission ) suffici5t visibility into ! activities ( ! digital commodity ex*ange or its affiliates 9 reliance on subp>agraph 7,b77ii74 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 %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 ! ex*ange4 7#c7 ,li/+ /&>ds = digital commodities 7,a7 ,n readily susceptible to manipulation ,a digital commodity ex*ange %all p]mit trad+ only 9 a digital commodity t is n readily susceptible to manipulation4 7,b7 ,disclosures to ! ,securities & ,ex*ange ,commission ,a digital commodity ex*ange %all e/abli% policies & proc$ures to p]mit trad+ 9 a digital commodity only if-- 7i7 disclosures ) respect to ! digital commodity requir$ "u1 z applicable1 section #d;,b ( ! ,securities ,act ( #aicc h be5 fil$ ) ! ,securities & ,ex*ange ,commission2 or 7ii7 su* o!r simil> in=mation t is relat$ to ! ongo+ developm5t plan ( ! block*a9 sy/em & is able to be publicly asc]ta9$1 z ! ,commission may1 by rule or regulation1 require1 has be5 provid$ to ! public4 7,c7 ,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 ! public2 & 7,,iii7 communicate 9 a fair & balanc$ mann] bas$ on pr9ciples ( fair deal+ & good fai?4 7ii7 ,requir$ in=mation ,) respect to a digital commodity & ea* block*a9 sy/em to :i* ! digital commodity relates = :i* ! digital commodity ex*ange w make ! digital commodity available to ! cu/om]s ( ! digital commodity ex*ange1 ! in=mation requir$ by ?is clause is ! foll[+3 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 su* 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 commodity4 7,,iv7 ,trad+ volume & volatility ,! trad+ volume & volatility ( ! digital commodity on ! ex*ange4 7,v7 ,cu/om] protections 7aa7 ,in=mation ab\t ! mat]ial risks & *>act]i/ics ( ! digital commodity4 7bb7 ,any mat]ial inc5tives or conflicts ( int]e/ t ! digital commodity ex*ange may h 9 connection ) ! li/+ ( ! digital commodity4 7cc7 ,in=mation requir$ by ! ,commission by rule or regulation p]ta9+ to m>ket+ & adv]tis+1 includ+ te/imonials & endorsem5ts4 7,,vi7 ,additional in=mation ,su* additional in=mation z ! ,commission %all det]m9e by rule or regulation to be necess>y = a cu/om] to und]/& ! f9ancial & op]ational risks ( a digital commodity1 & to be practically feasible to provide4 7#d7 ,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#e7 ,ability to obta9 in=mation ,a digital commodity ex*ange %all-- 7,a7 e/abli% & en=ce rules t w all[ ! ex*ange to obta9 any necess>y in=mation to p]=m any ( ! functions describ$ 9 ?is section2 7,b7 provide ! in=mation to ! ,commission on reque/2 & 7,c7 h ! capacity to c>ry out su* int]national in=mation-%>+ agreem5ts z ! ,commission may require4 7#f7 ,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#g7 ,timely publication ( trad+ in=mation 7,a7 ,9 g5]al ,a digital commodity ex*ange %all make public on its website timely in=mation on price1 trad+ volume1 & o!r trad+ data on digital commodities to ! ext5t prescrib$ by ! ,commission by rule or regulation4 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#h7 ,recordkeep+ & report+ 7,a7 ,9 g5]al ,a digital commodity ex*ange %all-- 7i7 ma9ta9 records relat+ to ! bus9ess ( ! digital commodity 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 t relate to a security op5 to inspection & exam9ation by ! ,securities & ,ex*ange ,commission2 & 7iv7 provide to ! ,commission an annual f9ancial /atem5t c]tifi$ by an indep5d5t public acc\ntant4 7,b7 ,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#i7 ,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#aj7 ,conflicts ( int]e/ ,a digital commodity ex*ange %all e/abli% & en=ce rules-- 7,a7 to m9imize conflicts ( int]e/ 9 ! decision-mak+ processes ( ! digital commodity ex*ange1 includ+ conflicts ( int]e/ t might pot5tially bias ! judgem5t or sup]vision ( ! digital commodity ex*ange & contrav5e ! pr9ciples ( fair & equitable trad+2 7,b7 to m9imize conflicts ( int]e/ t might arise-- 7i7 out ( transactions or arrangem5ts ) affiliates 7includ+ affiliates engag+ 9 digital commodity activities72 or 7ii7 z a result ( multiple regi/rations "u ?is ,act2 7,c7 to e/abli% a process = resolv+ conflicts ( int]e/ ref]r$ to 9 subp>agraphs 7,a7 & 7,b72 7,d7 to require disclosure by ! digital commodity ex*ange ( any mat]ial inc5tives or conflicts ( int]e/ t ! digital commodity ex*ange is unable to resolve1 or prohibit ! conditions giv+ rise to su* conflicts ( int]e/ n able to be resolv$1 z ! ,commission may det]m9e to be appropriate2 & 7,e7 relat+ to su* additional matt]s z ! ,commission %all det]m9e by rule or regulation to be necess>y 9 ! public int]e/4 7,f7 ,affiliates ,a digital commodity ex*ange may p]mit an affiliat$ digital commodity brok] or digital commodity deal] to facilitate imp>tial access to ! digital commodity ex*ange1 subject to ! rules prescrib$ by ! ,commission ) respect to conflicts ( int]e/ reg>d+ transactions or arrangem5ts ) affiliates4 7#aa7 ,f9ancial res\rces 7,a7 ,9 g5]al ,a digital commodity ex*ange %all h adequate f9ancial1 op]ational1 & manag]ial res\rces1 z %all be det]m9$ by ! ,commission by rule or regulation1 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,c7 ,prohibition ,! res\rces us$ to meet ! requirem5ts "u subp>agraph 7,b7 %all n include digital commodities orig9at$ by ! digital commodity ex*ange or affiliates ( ! digital commodity ex*ange4 7#ab7 ,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#ac7 ,gov]nance fitness /&>ds 7,a7 ,gov]nance arrangem5ts ,a digital commodity ex*ange %all e/abli% gov]nance arrangem5ts t are transp>5t to fulfill public int]e/ requirem5ts4 7,b7 ,fitness /&>ds ,a digital commodity ex*ange %all e/abli% & en=ce appropriate fitness /&>ds =-- 7i7 (fic]s & directors2 7ii7 any individual or entity ) direct access to1 or control (1 cu/om] assets2 & 7iii7 o!r p]sons1 z det]m9$ by ! ,commission by rule or regulation4 7,c7 ,bo>d ( directors ,except z o!rwise provid$ by ! ,commission by rule1 regulation1 or ord]1 a digital commodity ex*ange %all be gov]n$ by a bo>d ( directors1 subject to ! foll[+ requirem5ts3 7i7 ,! composition ( ! bo>d ( directors %all be suffici5t to ma9ta9 appropriate indep5d5ce1 z det]m9$ by ! ,commission4 7ii7 ,a digital commodity ex*ange %all endeavor to recruit individuals to s]ve on ! bo>d ( directors f among1 & to h ! composition ( ! bo>d reflect1 a broad & culturally div]se pool ( qualifi$ c&idates4 7#ad7 ,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 risks 7includ+ cyb]security risks71 ?r\gh ! developm5t ( appropriate controls & proc$ures1 & automat$ sy/ems 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 & 7iii7 ! appropriate safegu>d+ & ability to access ! private keys or o!r cr$5tials necess>y to transmit digital commodities 9 ! possession1 cu/ody1 or control ( ! digital commodity ex*ange2 & 7,c7 p]iodically conduct te/s to v]ify t ! backup res\rces ( ! digital commodity ex*ange are suffici5t to ensure cont9u$-- 7i7 ord] process+ & trade mat*+2 7ii7 price report+2 7iii7 m>ket surveillance2 7iv7 ma9t5ance ( a compreh5sive & accurate audit trail2 & 7v7 access & ability to transf] digital commodities 9 ! possession1 cu/ody1 or control ( ! digital commodity ex*ange4 7#ae7 ,risk managem5t proc$ures ,a digital commodity ex*ange %all e/abli% robu/ & pr(essional risk managem5t sy/ems adequate = manag+ ! day-to-day bus9ess ( ! digital commodity ex*ange4 7d7 ,consum] protection ,! ,commission %all adopt rules or regulations impos+ cu/om] protection requirem5ts t-- 7#a7 require disclosure by a digital commodity ex*ange to a cu/om] 7o!r ?an ano!r digital commodity ex*ange regi/]$ "u ?is section71 :i* %all be updat$ 9 a timely mann] to reflect mat]ial *anges1 & 9 accordance ) p>agraph 7#e71 (-- 7,a7 ! und]ly+ te*nology ( any digital commodity t is li/$ on ! digital commodity ex*ange2 7,b7 ! functionality & utility ( any digital commodity t is li/$ on ! digital commodity ex*ange2 7,c7 ! gov]nance /ructure ( any digital commodity t is li/$ on ! digital commodity ex*ange2 7,d7 ! trad+ volume & volatility ( any digital commodity t is li/$ on ! digital commodity ex*ange2 7,e7 in=mation ab\t ! mat]ial risks & *>act]i/ics ( any applicable digital commodities2 & 7,f7 any mat]ial inc5tives or conflicts ( int]e/ t ! digital commodity ex*ange may h 9 connection ) ! li/+ ( any applicable digital commodities2 7#b7 e/abli% a duty = a digital commodity ex*ange to communicate 9 a fair & balanc$ mann] bas$ on pr9ciples ( fair deal+ & good fai?2 7#c7 e/abli% /&>ds gov]n+ digital commodity ex*ange m>ket+ & adv]tis+1 includ+ te/imonials & endorsem5ts2 7#d7 e/abli% su* o!r /&>ds & requirem5ts z ! ,commission may det]m9e are-- 7,a7 appropriate = ! protection ( cu/om]s2 or 7,b7 o!rwise 9 fur!rance ( ! purposes ( ?is ,act2 & 7#e7 /&>dize & simplify disclosures "u p>agraph 7#a71 includ+ requir+ t disclosures-- 7,a7 be conspicu\s2 7,b7 use pla9 language compreh5sible to cu/om]s2 & 7,c7 succ9ctly expla9 ! in=mation t is requir$ to be communicat$ to ! cu/om]4 7e7 ,in=mation-%>+ 7#a7 ,9 g5]al ,subject to section #h1 & on reque/1 ! ,commission %all %>e in=mation collect$ "u subsection 7c77#h77;,a7 )-- 7,a7 ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em2 7,b7 ! ,securities & ,ex*ange ,commission2 7,c7 ea* appropriate ,f$]al bank+ ag5cy2 7,d7 ea* appropriate ,/ate bank sup]visor 7z def9$ 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac772 7,e7 ! ,f9ancial ,/ability ,ov]sight ,c\ncil2 7,f7 ! ,dep>tm5t ( ,ju/ice2 7,g7 ,/ate securities regulators2 & 7,h7 any o!r p]son t ! ,commission det]m9es to be appropriate1 includ+-- 7i7 =eign f9ancial sup]visors 7includ+ =eign futures au?orities72 7ii7 =eign c5tral banks2 & 7iii7 =eign m9i/ries4 7#b7 ,confid5tiality agreem5t ,be=e ! ,commission may %>e in=mation ) any entity describ$ 9 p>agraph 7#a71 ! ,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$4 7f7 ,hold+ ( cu/om] assets 7#a7 ,9 g5]al ,a digital commodity ex*ange %all hold cu/om] money1 assets1 & prop]ty 9 a mann] to m9imize ! risk ( loss to ! cu/om] or unreasonable delay 9 cu/om] access to ! money1 assets1 & prop]ty ( ! cu/om]4 7#b7 ,qualifi$ digital asset cu/odian ,ea* 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#aa72 or 7,c7 o!rwise s requir$ by ! ,commission to reasonably protect cu/om]s & cu/om] assets or promote ! public int]e/4 7#c7 ,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 ) ! contract ( sale4 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#d7 ,p]mitt$ inve/m5ts ,money describ$ 9 p>agraph 7#c7 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 high-quality liquid asset 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 %all prescribe4 7#e7 ,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#g7 %all n be consid]$ cu/om] prop]ty = purposes ( section #gfa ( title #aa1 ,unit$ ,/ates ,code4 7#f7 ,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 asset 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]ty 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 p>agraph1 ! t]m use ) respect to a digital commodity1 includes utiliz+ any unit ( a digital asset to p>ticipate 9 a block*a9 s]vice 7z def9$ 9 p>agraph 7#g77;,d77 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$4 7#g7 ,p>ticipation 9 block*a9 s]vices 7,a7 ,use ( funds ,a digital commodity ex*ange 7or a designee ( a digital commodity ex*ange7 may use a unit ( a digital commodity belong+ to a cu/om] to provide a block*a9 s]vice = a block*a9 sy/em to :i* ! unit ( ! digital commodity relates if = ea* use-- 7i7 ! cu/om] expressly p]mits ! use1 9 writ+1 to ! digital commodity ex*ange2 & 7ii7 ! digital commodity ex*ange complies ) subp>agraph 7,b74 7,b7 ,limitations 7i7 ,9 g5]al ,! ,commission %all1 by rule1 e/abli% notice & writt5 disclosure requirem5ts & any o!r limitations & rules relat$ to a p]mission provid$ "u subp>agraph 7,a7 or ! treatm5t ( cu/om] assets 9 ! ev5t ( an insolv5cy1 resolution1 or liquidation proce$+1 includ+ a description ( ! mann] 9 :i* any digital commodity w\ld be treat$ 9 an insolv5cy1 resolution1 or liquidation proce$+1 & h[ ! treatm5t ( digital commodities diff]s f ! treatm5t ( any o!r assets 9 ! ev5t ( an insolv5cy1 resolution1 or liquidation proce$+1 t are reasonably necess>y to protect cu/om]s1 includ+ eligible contract p>ticipants1 non-eligible contract p>ticipants1 & any o!r class ( cu/om]s4 7ii7 ,cu/om] *oice ,a digital commodity ex*ange may n-- 7,i7 require a cu/om] to provide ! p]mission ref]r$ to 9 subp>agraph 7,a7 z a condition ( do+ bus9ess on ! ex*ange2 or 7,,ii7 p5alize a cu/om] = n provid+ ! p]mission ref]r$ to 9 subp>agraph 7,a74 7,c7 ,requirem5ts ,! ,commission may1 by rule1 modify ! requirem5ts ( p>agraph 7#b7 or 7#c7 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> activity requir$ = ! ongo+ op]ation ( a block*a9 sy/em4 7g7 ,m>ket access requirem5ts 7#a7 ,affiliat$ commodity brok]s ,a regi/]$ digital commodity ex*ange may p]mit an affiliat$ digital commodity brok] to facilitate imp>tial access to ! digital commodity ex*ange4 7#b7 ,additional requirem5ts ,! ,commission %all1 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 provide m>ket p>ticipants ) imp>tial access to ! m>ket1 protect cu/om] funds1 & promote responsible innovation4 7h7 ,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]1 :o %all be solely responsible to ! digital commodity ex*ange & n to any o!r affiliat$ entity or o!r entity regulat$ "u ?is ,act4 7#b7 ,duties ,! *ief compliance (fic] ( a digital commodity ex*ange %all-- 7,a7 report directly to ! bo>d or to ! s5ior (fic] ( ! ex*ange2 7,b7 review compliance ) ! core pr9ciples 9 ?is section2 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 t %all be prescrib$ by ! ,commission1 ! *ief compliance (fic] ( a digital commodity ex*ange %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 7i7 ,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 = ! judicial di/rict 9 :i* ! 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]s1 subject to su* t]ms & conditions z ! c\rt may prescribe4 7j7 ,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 7,a7 ,9 g5]al ,! ,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 ( ! digital commodity ex*ange4 7,b7 ,transition p]iod ,! ,commission may exempt a =eign digital commodity ex*ange f regi/ration "u ?is section = ! #b-ye> p]iod foll[+ ! date ( enactm5t ( ?is section if-- 7i7 ! =eign digital commodity ex*ange-- 7,i7 keeps ! books & records ( ! =eign digital commodity ex*ange op5 to inspection & exam9ation by any repres5tative ( ! ,commission ^u reasonable reque/2 & 7,,ii7 reports to ! ,commission1 9 a =m & mann] acceptable to ! ,commission1 su* in=mation z ! ,commission det]m9es to be reasonably necess>y or appropriate = ! ,commission to p]=m ! duties ( ! ,commission "u ?is ,act2 & 7ii7 ! appropriate gov]nm5t au?orities 9 ! home c\ntry ( ! =eign digital commodity ex*ange-- 7,i7 c]tify t ! =eign digital commodity ex*ange-- 7aa7 is subject to-- 7,,aa7 sup]vision & regulation on a consolidat$ basis by a gov]nm5tal au?ority 9 its home c\ntry1 includ+ requirem5ts relat+ to b5eficial own]%ip1 control p]sons1 gov]nance1 risk managem5t1 f9ancial report+1 & m>ket integrity2 & 7,,bb7 cle> & en=ceable manag]ial & sup]visory responsibility at ! consolidat$ level2 & 7bb7 is 9 good /&+ & n subject to unresolv$1 mat]ial en=cem5t actions relat+ to m>ket integrity1 cu/om] protection1 or f9ancial crime2 & 7,,ii7 ent] into a memor&um ( und]/&+ ) ! ,commission 9 :i* ^? appropriate gov]nm5t au?orities agree to provide to ! ,commission in=mation reg>d+ ! =eign digital commodity ex*ange t ! ,commission reque/s dur+ t #b-ye> p]iod4 7,c7 ,susp5sion or revocation ,! ,commission may susp5d or revoke an exemption "u subp>agraph 7,b7 if ! ,commission det]m9es t ! =eign digital commodity ex*ange or ! appropriate gov]nm5t au?ority 9 ! home c\ntry ( ! =eign digital commodity ex*ange fails to sub/antially comply ) ! requirem5ts describ$ 9 subp>agraph 7,b74 7k7 ,f$]al preemption 7#a7 ,9 g5]al ,! ,commission %all h exclusive jurisdiction ov] any digital commodity ex*ange regi/]$ "u ?is section ) respect to activities & transactions subject to ?is ,act4 7#b7 ,pres]vation ( au?ority ,no?+ 9 ?is subsection %all affect ! ability ( a ,/ate or local ag5cy to inve/igate & br+ en=cem5t actions reg>d+ fraud1 deceit1 or unfair or deceptive acts or practices4 7l7 ,regulations ,! ,commission %all prescribe su* rules & regulations z are appropriate = ! implem5tation ( ?is section4 7m7 ,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$1 directly or indirectly1 by ! digital commodity ex*ange7 = its own behalf or on behalf ( any o!r p]son4 4 7b7 ,private rights ( action ,section #bb ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #be7 is am5d$-- 7#a7 9 subsection 7a77#a7-- 7,a7 9 subp>agraph 7,b7-- 7i7 by /rik+ commodity7 or any swap2 & ins]t+ commodity71 any swap1 or any digital commodity transaction22 & 7ii7 by /rik+ to make su* contract & all t foll[s ?r\gh ! semicolon at ! end & ins]t+ to make su* contract1 any swap1 or any digital commodity transaction22 7,b7 9 subp>agraph 7,c71 by con=m+ ! m>g9 ( clause 7iv7 to ! m>g9 ( clauses 7i7 ?r\gh 7iii72 & 7,c7 9 subp>agraph 7,d7-- 7i7 9 ! matt] prec$+ clause 7i71 by /rik+ subp>agraph 7,b7 h]e( or swap & ins]t+ subp>agraph 7,b71 a swap1 or a digital commodity2 & 7ii7 9 clause 7ii71 by /rik+ any su* contract or swap & ins]t+ any su* contract1 swap1 or digital commodity2 & 7#b7 9 subsection 7b77#a77;,a71 by ins]t+ #e;i1 aft] #e;h14 #bje4 ,regi/ration & regulation ( digital commodity brok]s & deal]s ,! ,commodity ,ex*ange ,act is am5d$ by ins]t+ aft] section #dt 7#g ,u4,s4,c4 #ft7 ! 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 ,exemptions ,a p]son act+ z a digital commodity brok] or digital commodity deal] %all n be requir$ to regi/] "u ?is section if ! p]son-- 7,a7 engages 9 no m ?an a de m9imis am\nt ( brok]+ or deal+ activity1 z ! ,commission may det]m9e by rule or regulation1 9 a digital commodity2 7,b7 s]ves only cu/om]s 9 a s+le ,/ate or t]ritory2 or 7,c7 is already regi/]$ z a futures commission m]*ant1 provid$ t ! p]son %all-- 7i7 provide writt5 notice to ! ,commission & to any self-regulatory organization ( :i* x is a memb] ( its int5tion to act z a digital commodity brok]2 & 7ii7 comply ) all o!r provisions ( ?is ,act & ! rules promulgat$ !reund] & any self-regulatory organization rules z !y apply to a digital commodity brok]4 7#c7 ,additional regi/ration 7,a7 ,rules ,9 ord] to fo/] ! developm5t ( fair & ord]ly m>kets1 protect cu/om]s1 & promote responsible innovation1 ! ,commission %all-- 7i7 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 prescribe rules e/abli%+ requirem5ts = ! id5tification1 mitigation1 & resolution ( conflicts ( int]e/ among & across affiliat$ entities or entities ) multiple regi/rations "u ?is ,act1 includ+ conflicts ( int]e/ relat$ to v]tically integrat$ m>ket /ructures & _! v>y+ responsibilities & activities2 & 7iii7 aft] an analysis ( ! risks & b5efits1 prescribe rules to provide = portfolio m>g9+ 9 accordance ) section #ajc7;e7 ( ! ,digital ,commodity ,int]m$i>ies ,act4 7,b7 ,memb]%ip 9 a regi/]$ 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 7,c7 ,h>monization ,9 prescrib+ rules = digital commodity brok]s or digital commodity deal]s1 ! ,commission %all1 to ! greate/ ext5t feasible1 seek to avoid duplication1 inconsi/5cies1 or burd5s = a p]son regi/]$ 9 multiple capacities4 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 "u p>agraph 7#a7 %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 ,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 meet & cont9ue to meet ! obligations ( su* a regi/rant4 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 7d7 ,digital commodity trad+ n readily susceptible to manipulation ,a digital commodity brok] or digital commodity deal] may only (f] trades 9 digital commodities t are n readily susceptible to manipulation4 7e7 ,execution ,! ,commission %all prescribe rules & regulations reg>d+ ! execution ( digital commodity transactions by a digital commodity brok] or a digital commodity deal] ) or on behalf ( cu/om]s1 :i* %all address-- 7#a7 fair & objective pric+2 7#b7 ! record+1 ma9ta9+1 & disclosure ( in=mation2 7#c7 ! protection ( ! price discov]y process2 & 7#d7 requirem5ts specific to digital commodity transactions ) or on behalf ( a cu/om] :o is n an eligible contract p>ticipant4 7f7 ,report+ & recordkeep+ ,ea* digital commodity brok] & digital commodity deal] %all-- 7#a7 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 keep books & records 9 su* =m & mann] & = su* p]iod z %all be prescrib$ by ! ,commission by rule or regulation2 & 7#c7 keep ! books & records op5 to inspection & exam9ation by any repres5tative ( ! ,commission4 7g7 ,daily trad+ records 7#a7 ,9 g5]al ,ea* digital commodity brok] & digital commodity deal] %all ma9ta9 daily trad+ records ( ! transactions ( ! digital commodity brok] or digital commodity deal]1 respectively1 & all relat$ records 7includ+ relat$ =w>d or d]ivatives transactions7 & record$ communications1 includ+ electronic mail1 in/ant messages1 & record+s ( telephone calls1 = su* p]iod z ! ,commission %all require by rule or regulation4 7#b7 ,in=mation requirem5ts ,! daily trad+ records describ$ 9 p>agraph 7#a7 %all include su* in=mation z ! ,commission %all require by rule or regulation4 7#c7 ,c\nt]p>ty records ,ea* digital commodity brok] & digital commodity deal] %all ma9ta9 daily trad+ records = ea* cu/om] or c\nt]p>ty 9 a mann] & =m t is id5tifiable ) ea* digital commodity transaction4 7#d7 ,audit trail ,ea* digital commodity brok] & digital commodity deal] %all ma9ta9 a complete audit trail = conduct+ compreh5sive & accurate trade recon/ructions4 7h7 ,bus9ess conduct /&>ds 7#a7 ,9 g5]al ,ea* digital commodity brok] & digital commodity deal] %all con=m ) su* bus9ess conduct /&>ds z ! ,commission1 by rule or regulation1 %all prescribe relat$ to-- 7,a7 fraud1 manipulation1 & o!r abusive practices involv+ spot 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 det]m9es appropriate4 7#b7 ,bus9ess conduct requirem5ts ,! ,commission %all1 by rule1 prescribe bus9ess conduct requirem5ts t-- 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% a duty = digital commodity brok]s & digital commodity deal]s to provide fair1 transp>5t1 & objective pric+2 & 7,e7 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 7i7 ,duties 7#a7 ,risk managem5t proc$ures ,ea* digital commodity brok] & digital commodity deal] %all e/abli% robu/ & pr(essional risk managem5t sy/ems adequate = manag+ ! day-to-day bus9ess ( ! digital commodity brok] or digital commodity deal]1 respectively4 7#b7 ,disclosure ( g5]al in=mation ,ea* digital commodity brok] & digital commodity deal] %all disclose to ! ,commission in=mation conc]n+-- 7,a7 ! t]ms & conditions ( ! transactions ( ! digital commodity brok] or digital commodity deal]1 respectively2 7,b7 ! trad+ op]ations1 me*anisms1 & practices ( ! digital commodity brok] or digital commodity deal]1 respectively2 7,c7 f9ancial integrity protections relat+ to ! activities ( ! digital commodity brok] or digital commodity deal]1 respectively2 & 7,d7 o!r in=mation relevant to trad+ 9 digital commodities by ! digital commodity brok] or digital commodity deal]1 respectively4 7#c7 ,ability to obta9 in=mation ,ea* digital commodity brok] & digital commodity deal] %all-- 7,a7 e/abli% & en=ce int]nal sy/ems & proc$ures to obta9 any necess>y in=mation to p]=m any ( ! functions describ$ 9 ?is section2 & 7,b7 provide ! in=mation to ! ,commission1 on reque/4 7#d7 ,conflicts ( int]e/ ,ea* digital commodity brok] & digital commodity deal] %all e/abli%1 ma9ta91 & en=ce writt5 policies & proc$ures reasonably design$1 tak+ into consid]ation ! nature ( ! bus9ess ( ! p]son1 z a result ( multiple regi/rations "u ?is ,act-- 7,a7 to e/abli% a process = resolv+ conflicts ( int]e/2 7,b7 to require disclosure by a digital commodity brok] or digital commodity deal] ( any mat]ial inc5tives or conflicts ( int]e/ t ! digital commodity brok] or digital commodity deal] is unable to resolve1 z ! ,commission may det]m9e to be appropriate2 & 7,c7 to address su* o!r issues z ! ,commission det]m9es by rule or regulation to be necess>y 9 ! public int]e/4 7#e7 ,antitru/ consid]ations ,unless necess>y or appropriate to a*ieve ! purposes ( ?is ,act1 a digital commodity brok] or digital commodity deal] %all n-- 7,a7 adopt any process or take any action t results 9 any unreasonable re/ra9t ( trade2 or 7,b7 impose any mat]ial anticompetitive burd5 on trad+ or cle>+4 7j7 ,designation ( *ief compliance (fic] 7#a7 ,9 g5]al ,ea* digital commodity brok] & digital commodity deal] %all designate an individual to s]ve z a *ief compliance (fic]1 :o %all be solely responsible to ! digital commodity brok] or digital commodity deal] & n to any o!r affiliat$ entity or o!r entity regulat$ "u ?is ,act4 7#b7 ,duties ,! *ief compliance (fic] ( a regi/]$ digital commodity brok] or a regi/]$ digital commodity deal] %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 t %all be prescrib$ by ! ,commission1 ! *ief compliance (fic] ( a regi/]$ digital commodity brok] or a regi/]$ digital commodity deal] %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 7k7 ,segregation ( digital commodities 7#a7 ,hold+ ( cu/om] assets 7,a7 ,9 g5]al ,ea* digital commodity brok] & digital commodity deal] %all hold cu/om] money1 assets1 & prop]ty 9 a mann] to m9imize ! risk ( loss to ! cu/om] or unreasonable delay 9 cu/om] access to ! money1 assets1 & prop]ty ( ! cu/om]4 7,b7 ,qualifi$ digital 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 7c72 or 7iii7 o!rwise s requir$ by ! ,commission to reasonably protect cu/om]s & cu/om] assets 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 high-quality liquid asset t ! ,commission may by rule or regulation all[4 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 brok] or digital commodity deal]1 & all money1 assets1 & prop]ty ( any cu/om] receiv$ by a digital commodity brok] or digital commodity deal] = 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 pur*ase1 sale1 loan (1 m>g9 loan or o!r ext5sion ( cr$it on1 repur*ase1 rev]se repur*ase1 or o!r transaction involv+ a unit ( a digital commodity occurr+ ) a digital commodity brok] or digital commodity deal] %all be consid]$-- 7i7 a contract = ! pur*ase or sale ( a commodity = future deliv]y on1 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 ,code1 section #aa ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahba71 & section #baj ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #ecij72 & 7ii7 a commodity contract = purposes ( section #e7;b77#b77;,c7 ( ! ,securities ,inve/or ,protection ,act ( #aigj 7#ae ,u4,s4,c4 #gh;eee7b77#b77;,c774 7,c7 ,brok]s & deal]s ,a digital commodity brok] & a digital commodity deal] %all be consid]$ a futures commission m]*ant = purposes ( section #gfa ( title #aa1 ,unit$ ,/ates ,code1 section #aa ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahba71 & section #baj ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #ecij74 7,d7 ,assets remov$ 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 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 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$4 7#f7 ,p>ticipation 9 block*a9 s]vices 7,a7 ,use ( funds ,a digital commodity brok] or digital commodity deal] 7or a designee ( a digital commodity brok] or digital commodity deal]7 may use a unit ( a digital commodity belong+ to a cu/om] to provide a block*a9 s]vice = a block*a9 sy/em to :i* ! unit ( ! digital commodity relates if-- 7i7 ! cu/om] expressly p]mits ! use1 9 writ+1 to ! digital commodity brok] or digital commodity deal]1 z ! case may be2 & 7ii7 ! digital commodity brok] or digital commodity deal]1 z ! case may be1 complies ) subp>agraph 7,b74 7,b7 ,limitations 7i7 ,9 g5]al ,! ,commission %all1 by rule1 e/abli% notice & writt5 disclosure requirem5ts & any o!r limitations & rules relat$ to a p]mission provid$ "u subp>agraph 7,a7 or ! treatm5t ( cu/om] assets 9 ! ev5t ( an insolv5cy1 resolution1 or liquidation proce$+1 includ+ a description ( ! mann] 9 :i* any digital commodity w\ld be treat$ 9 an insolv5cy1 resolution1 or liquidation proce$+1 & h[ ! treatm5t ( digital commodities diff]s f ! treatm5t ( any o!r assets 9 ! ev5t ( an insolv5cy1 resolution1 or liquidation proce$+1 t are reasonably necess>y to protect cu/om]s1 includ+ eligible contract p>ticipants1 non-eligible contract p>ticipants1 & any o!r class ( cu/om]s4 7ii7 ,cu/om] *oice ,a digital commodity brok] or digital commodity deal] may n-- 7,i7 require a cu/om] to provide ! p]mission ref]r$ to 9 subp>agraph 7,a7 z a condition ( do+ bus9ess ) ! digital commodity brok] or digital commodity deal]2 or 7,,ii7 p5alize a cu/om] = n provid+ ! p]mission ref]r$ to 9 subp>agraph 7,a74 7,c7 ,requirem5ts ,! ,commission may1 by rule1 modify ! requirem5ts ( p>agraph 7#b7 or subsection 7g7 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> activity requir$ = ! ongo+ op]ation ( a block*a9 sy/em4 7#g7 ,prop]ty held 9 portfolio m>g9 acc\nts 7,a7 ,9 g5]al ,not)/&+ p>agraph 7#b71 & ! rules & regulations !reund]1 & pursuant to an exemption grant$ by ! ,commission "u section #d7;c7 or pursuant to a rule or regulation-- 7i7 a digital commodity brok] or digital commodity deal] regi/]$ "u subsection 7b77#a7 & also regi/]$ z a futures commission m]*ant pursuant to section #d;f7a77#a7 may1 pursuant to a portfolio m>g9+ program approv$ by ! ,commission1 hold digital commodity cu/om] money1 assets1 & prop]ty 9 a portfolio m>g9+ acc\nt c>ri$ z a futures acc\nt or cle>$ swaps acc\nt2 & 7ii7 a digital commodity brok] or digital commodity deal] regi/]$ "u subsection 7b77#a7 & also regi/]$ z a brok] or deal] pursuant to section #ae7;b77#a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho7b77#a77 may1 pursuant to a portfolio m>g9+ program approv$ by ! ,securities & ,ex*ange ,commission pursuant to section #ai7;b7 ( t ,act 7#ae ,u4,s4,c4 #ghs7b771 hold digital commodity cu/om] money1 assets1 & prop]ty 9 a portfolio m>g9+ acc\nt c>ri$ z a securities acc\nt subject to section #ae7;c77#c7 ( t ,act 7#ae ,u4,s4,c4 #gho7c77#c77 & ! rules & regulations !reund]4 7,b7 ,consultation ,! ,commission %all consult ) ! ,securities & ,ex*ange ,commission to adopt rules to ensure t su* transactions & acc\nts are subject to comp>able requirem5ts to ! ext5t practical = simil> products4 7l7 ,f$]al preemption 7#a7 ,9 g5]al ,! ,commission %all h exclusive jurisdiction ov] any digital commodity brok] or digital commodity deal] regi/]$ "u ?is section ) respect to activities subject to ?is ,act4 7#b7 ,pres]vation ( au?ority ,no?+ 9 ?is subsection %all affect ! ability ( a ,/ate or local ag5cy to inve/igate & br+ en=cem5t actions reg>d+ fraud1 deceit1 or unfair or deceptive acts or practices4 7m7 ,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 ! exemption-- 7,a7 w\ld be consi/5t ) ! public int]e/ & ! purposes ( ?is ,act2 & 7,b7 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 7n7 ,regulations ,! ,commission %all prescribe su* rules & regulations z are appropriate = ! implem5tation ( ?is section4 4 #bjf4 ,regi/ration ( associat$ p]sons 7a7 ,9 g5]al ,section #dk ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #fk7 is am5d$ by add+ at ! end ! foll[+3 7#g7 ,associat$ p]sons ( digital commodity brok]s & digital commodity deal]s 7,a7 ,9 g5]al ,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$4 7,b7 ,duty ( digital commodity brok]s & deal]s ,x %all be unlawful = a digital commodity brok] or a digital commodity deal] to p]mit a p]son describ$ 9 subp>agraph 7,a7 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 4 7b7 ,application ,section #dk7#d7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #fk7#d77 is am5d$1 9 ! fir/ s5t5ce1 by /rik+ or ( a commodity trad+ advisor & ins]t+ ( a commodity trad+ advisor1 ( a digital commodity brok]1 or ( a digital commodity deal]4 #bjg4 ,s(tw>e develop] protections ,! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq47 is am5d$ by ins]t+ aft] section #du 7z add$ by section #bje7 ! foll[+3 #dv4 ,application to s(tw>e develop]s 7a7 ,9 g5]al ,not)/&+ any o!r provision ( ?is ,act1 except z provid$ 9 subsection 7b71 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 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 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 #bjh4 ,portfolio m>g9+ 7a7 ,9 g5]al ,section #d;d7h7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #f;d7h77 is am5d$ 9 ! fir/ s5t5ce-- 7#a7 by ins]t+ or subsection 7f77#b7 aft] subsection 7a77#b72 & 7#b7 by ins]t+ or a cle>$ swap aft] an option on su* a contract4 7b7 ,commodity brok] debtors ,section #bj7;c7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #bd7;c77 is am5d$-- 7#a7 by ins]t+ & digital commodities aft] securities2 & 7#b7 by ins]t+ or cle>$ swaps acc\nt aft] futures acc\nt4 #bji4 ,cl>ification on cu/om] prop]ty ,section #bj7;a7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #bd7;a77 is am5d$-- 7#a7 9 p>agraph 7#d71 by /rik+ & at ! end2 7#b7 9 p>agraph 7#e71 by /rik+ ! p]iod at ! end & ins]t+ 2 &2 & 7#c7 by add+ at ! end ! foll[+3 7#f7 t ca%1 securities1 or o!r prop]ty ( ! e/ate ( a commodity brok]1 includ+ ! trad+ or op]at+ acc\nts ( ! commodity brok] & commodities held 9 inv5tory by ! commodity brok]1 %all1 subject to any o!rwise unavoidable security int]e/1 or o!rwise unavoidable contractual (fset or nett+ rights ( cr$itors 7includ+ rights set =? 9 a rule or bylaw ( a d]ivatives cle>+ organization or a cle>+ ag5cy7 9 respect ( su* prop]ty1 be includ$ 9 cu/om] prop]ty1 b only to ! ext5t t ! prop]ty t is o!rwise cu/om] prop]ty is insuffici5t to satisfy ! net equity claims ( public cu/om]s 7z su* t]m may be def9$ by ! ,commission by rule or regulation7 ( ! commodity brok]4 4 #baj4 ,res\rces = implem5tation ,! ,commodity ,ex*ange ,act is am5d$ by ins]t+ aft] section #h;d 7#g ,u4,s4,c4 #ab;d7 ! foll[+3 #h;e4 ,res\rces = implem5tation reg>d+ digital commodity ex*anges1 brok]s1 & deal]s 7a7 ,collection ( fees 7#a7 ,9 g5]al ,! ,commission %all1 9 accordance ) ?is subsection1 assess & collect fees f regi/]$ digital commodity brok]s1 digital commodity deal]s1 digital commodity ex*anges1 & qualifi$ digital asset cu/odians-- 7,a7 on ! fil+ ( ! initial application = regi/ration2 & 7,b7 on an annual basis !reaft]4 7#b7 ,purpose ,! fees "u p>agraph 7#a7 %all be us$ to recov] ! annual co/s (-- 7,a7 regi/]+ digital commodity ex*anges1 digital commodity brok]s1 digital commodity deal]s1 & qualifi$ digital asset cu/odians2 7,b7 conduct+ ov]sight ( digital commodity ex*anges1 digital commodity brok]s1 digital commodity deal]s1 qualifi$ digital asset cu/odians1 & digital commodity transactions2 7,c7 c>ry+ out education & outrea* "u subsection 7b72 & 7,d7 c>ry+ out su* o!r activities z are requir$ by ! ,digital ,commodity ,int]m$i>ies ,act & ! am5dm5ts made by t ,act4 7#c7 ,det]m9ation ( fee rates ,9 det]m9+ fee rates "u p>agraph 7#a71 ! ,commission %all consid]-- 7,a7 ! volume ( bus9ess ( ! digital commodity ex*ange1 digital commodity brok]1 digital commodity deal]1 or qualifi$ digital asset cu/odian2 & 7,b7 ! regi/ration category ( ! digital commodity ex*ange1 digital commodity brok]1 digital commodity deal]1 or qualifi$ digital asset cu/odian4 7#d7 ,prohibition ,! ,commission %all n require a digital commodity ex*ange1 digital commodity brok]1 digital commodity deal]1 or qualifi$ digital asset cu/odian to collect directly f cu/om]s a transaction-bas$ fee = ea* digital commodity transaction4 7#e7 ,publication 7,a7 #a/ fiscal ye> ,n lat] ?an #cj days aft] ! date ( enactm5t ( ?is section1 ! ,commission %all publi% ! fee rates det]m9$ pursuant to ?is subsection = ! fiscal ye> 9 :i* ?is section is enact$4 7,b7 ,subsequ5t fiscal ye>s ,n lat] ?an #fj days aft] ! date ( enactm5t ( an ,act mak+ a regul> appropriation to ! ,commission = a fiscal ye>1 ! ,commission %all publi% 9 ! ,f$]al ,regi/] a notice (-- 7i7 ! fee rates det]m9$ pursuant to ?is subsection = t fiscal ye>2 & 7ii7 any e/imates or projections on :i* ^? fee rates are bas$4 7#f7 ,records & disclosure ,9 c>ry+ out ?is subsection1 ! ,commission %all n be requir$ to comply ) section #eec ( title #e1 ,unit$ ,/ates ,code4 7#g7 ,no judicial review ,a fee rate prescrib$ "u ?is subsection %all n be subject to judicial review4 7#h7 ,deposit ( fees ,fees collect$ pursuant to ?is subsection = any fiscal ye> %all be deposit$ & cr$it$ z (fsett+ collections to ! acc\nt provid+ appropriations to ! ,commission4 7#i7 ,annual adju/m5t ,= ea* fiscal ye>1 ! ,commission %all1 by ord]1 det]m9e fee rates pursuant to ?is subsection t are reasonably likely to produce aggregate fee collections t are equal to ! annual appropriation to ! ,commission by ,congress = ! activities describ$ 9 p>agraph 7#b74 7#aj7 ,lapse ( appropriation ,if1 on ! fir/ day ( a fiscal ye>1 a regul> appropriation to ! ,commission has n be5 enact$1 ! ,commission %all cont9ue to collect 7z (fsett+ collections7 fees pursuant to ?is subsection at ea* ( ! rates 9 effect dur+ ! prec$+ fiscal ye>4 7#aa7 ,budget reque/s ,! ,commissions %all itemize 9 ea* budget submitt$ to ! ,presid5t or ! ,(fice ( ,managem5t & ,budget ! e/imat$ annual co/s (-- 7,a7 regi/]+ digital commodity ex*anges1 digital commodity brok]s1 digital commodity deal]s1 & qualifi$ digital asset cu/odians2 7,b7 conduct+ ov]sight ( digital commodity ex*anges1 digital commodity brok]s1 digital commodity deal]s1 qualifi$ digital asset cu/odians1 & digital commodity transactions2 7,c7 c>ry+ out education & outrea* "u subsection 7b72 & 7,d7 c>ry+ out su* o!r activities z are requir$ by ! ,digital ,commodity ,int]m$i>ies ,act & ! am5dm5ts made by t ,act4 7#ab7 ,limitations 7,a7 ,9 g5]al ,fees may only be assess$ & impos$ pursuant to ?is subsection on digital commodity ex*anges1 digital commodity brok]s1 digital commodity deal]s1 & qualifi$ digital asset cu/odians regulat$ by ! ,commission pursuant to ! ,digital ,commodity ,int]m$i>ies ,act & ! am5dm5ts made by t ,act4 7,b7 ,use ( fees ,fees au?oriz$ "u ?is subsection are prohibit$ f fund+ any ,commission activity n directly relat$ to ! activities describ$ 9 p>agraph 7#b74 7b7 ,cu/om] education & outrea* ,! ,commission %all provide education & outrea* to cu/om]s p>ticipat+ 9 digital commodity m>kets4 7c7 ,au?orization ( appropriations ,!re is au?oriz$ to be appropriat$ to c>ry out ! ,digital ,commodity ,int]m$i>ies ,act & ! am5dm5ts made by t ,act #aej1jjj1jjj1 to rema9 available until exp5d$1 until ! ,commission has e/abli%$ & is collect+ regi/ration fees pursuant to subsection 7a74 7d7 ,exp$it$ hir+ au?ority 7#a7 ,appo9tm5t au?ority ,! ,*airman ( ! ,commission may appo9t individuals to a position describ$ 9 p>agraph 7#b7-- 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 p>agraph 7#a7 is a position at ! ,commission t-- 7,a7 is 9 ! competitive s]vice 7z def9$ 9 section #bajb ( title #e1 ,unit$ ,/ates ,code72 & 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 7z def9$ 9 section #bajb ( title #e1 ,unit$ ,/ates ,code7 to ! except$ s]vice 7z def9$ 9 section #bajc ( su* title74 4 #baa4 ,digital commodity retail advocate ,! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq47 is am5d$ by add+ at ! end ! foll[+3 #bd4 ,(fice ( ! digital commodity retail advocate 7a7 ,def9itions ,9 ?is section3 7#a7 ,*airman ,! t]m ,*airman means ! ,*airman ( ! ,commission4 7#b7 ,(fice ,! t]m ,(fice means ! ,(fice ( ! ,digital ,commodity ,retail ,advocate e/abli%$ by subsection 7b74 7#c7 ,retail p>ticipant ,! t]m retail p>ticipant means a p]son t-- 7,a7 is n an eligible contract p>ticipant2 7,b7 is p>ticipat+ 9 a spot or ca% digital commodity m>ket2 & 7,c7 has engag$ or is engag+ 9 a digital commodity transaction ) a p]son regi/]$ ) ! ,commission4 7b7 ,(fice e/abli%$ ,!re is e/abli%$ )9 ! ,commission ! ,(fice ( ! ,digital ,commodity ,retail ,advocate4 7c7 ,digital ,commodity ,retail ,advocate 7#a7 ,9 g5]al ,! ,digital ,commodity ,retail ,advocate %all-- 7,a7 report directly to ! ,*airman2 & 7,b7 be appo9t$ by ! ,*airman f among individuals ) exp]i5ce 9 advocat+ = ! int]e/s ( digital commodity m>ket retail p>ticipants4 7#b7 ,comp5sation ,! annual rate ( pay = ! ,digital ,commodity ,retail ,advocate %all be equal to ! highe/ rate ( annual pay = o!r s5ior executives :o report to ! ,*airman4 7#c7 ,limitation on s]vice ,an individual :o s]ves z ! ,digital ,commodity ,retail ,advocate may n be employ$ by ! ,commission-- 7,a7 dur+ ! #b-ye> p]iod end+ on ! date ( appo9tm5t z ,digital ,commodity ,retail ,advocate2 or 7,b7 dur+ ! #e-ye> p]iod beg9n+ on ! date on :i* ! p]son ceases to s]ve z ! ,digital ,commodity ,retail ,advocate4 7d7 ,functions ( ! digital commodity retail advocate ,! ,digital ,commodity ,retail ,advocate %all-- 7#a7 assi/ retail p>ticipants 9 resolv+ significant problems !y may h ) ! ,commission or a regi/]$ futures association2 7#b7 id5tify areas 9 :i* retail p>ticipants w\ld b5efit f *anges 9 ! regulations ( ! ,commission or ! rules ( regi/]$ futures associations2 7#c7 id5tify problems t retail p>ticipants h ) p]sons regi/]$ ) ! ,commission2 7#d7 analyze ! pot5tial impact on retail p>ticipants (-- 7,a7 propos$ regulations ( ! ,commission2 & 7,b7 propos$ rules ( regi/]$ futures associations2 7#e7 to ! ext5t practicable1 propose to ! ,commission *anges 9 ! regulations or ord]s ( ! ,commission1 & to ,congress any legislative1 adm9i/rative1 or p]sonnel *anges1 t may be appropriate-- 7,a7 to mitigate problems id5tifi$ "u ?is subsection2 & 7,b7 to promote ! int]e/s ( retail p>ticipants2 7#f7 conduct rese>* to id5tify & und]/& issues t affect retail p>ticipants2 & 7#g7 coop]ate ) & provide assi/ance to ! ,(fice ( ,cu/om] ,education & ,outrea* to conduct initiatives & outrea* = retail p>ticipants4 7e7 ,access to docum5ts 7#a7 ,9 g5]al ,at ! discretion ( ! ,*airman1 ! ,digital ,commodity ,retail ,advocate %all h full access to ! docum5ts ( ! ,commission & regi/]$ futures associations z necess>y to c>ry out ! functions ( ! ,(fice4 7#b7 ,effect ,no?+ 9 ! subsection au?orizes ! ,digital ,commodity ,retail ,advocate1 or /aff ( ! ,(fice1 to h access to1 or to release publicly or int]nally )9 ! ,commission1 propriet>y or s5sitive m>ket data4 7#c7 ,policies & proc$ures ,! ,(fice %all e/abli% & make public on ! website ( ! ,commission policies & proc$ures 9 place to safegu>d ! confid5tiality ( any docum5ts ! ,digital ,commodity ,retail ,advocate or /aff ( ! ,(fice has access to4 7f7 ,annual reports 7#a7 ,report on objectives 7,a7 ,9 g5]al ,n lat] ?an ,june #cj ( ea* ye>1 ! ,digital ,commodity ,retail ,advocate %all submit to ! ,committee on ,agriculture1 ,nutrition1 & ,=e/ry ( ! ,s5ate & ! ,committee on ,agriculture ( ! ,h\se ( ,repres5tatives a report describ+ ! objectives ( ! ,digital ,commodity ,retail ,advocate = ! foll[+ fiscal ye>4 7,b7 ,cont5ts ,ea* report requir$ "u subp>agraph 7,a7 %all conta9 full & sub/antive analysis & explanation4 7#b7 ,report on activities 7,a7 ,9 g5]al ,n lat] ?an ,decemb] #ca ( ea* ye>1 ! ,digital ,commodity ,retail ,advocate %all submit to ! ,committee on ,agriculture1 ,nutrition1 & ,=e/ry ( ! ,s5ate & ! ,committee on ,agriculture ( ! ,h\se ( ,repres5tatives a report describ+ ! activities ( ! ,digital ,commodity ,retail ,advocate dur+ ! imm$iately prec$+ fiscal ye>4 7,b7 ,cont5ts ,ea* report requir$ "u subp>agraph 7,a7 %all include-- 7i7 appropriate /ati/ical in=mation & full & sub/antive analysis2 7ii7 in=mation on /eps t ! ,digital ,commodity ,retail ,advocate has tak5 dur+ ! report+ p]iod to improve-- 7,i7 s]vices to & communication ) retail p>ticipants2 & 7,,ii7 ! responsiv5ess ( ! ,commission & regi/]$ futures associations to retail p>ticipant conc]ns2 7iii7 a summ>y ( ! mo/ s]i\s problems report$ to ! ,(fice or ! ,commission by retail p>ticipants dur+ ! report+ p]iod2 7iv7 an inv5tory ( ! items describ$ 9 clause 7iii7 t includes-- 7,i7 id5tification ( any action tak5 by ! ,commission or a regi/]$ futures association & ! result ( t action2 7,,ii7 ! p]iod ( "t t ea* item has rema9$ on ! inv5tory2 & 7,,iii7 = items ) respect to :i* no action has be5 tak51 ! reasons = inaction1 & an id5tification ( any (ficial :o is responsible = ! action2 7v7 recomm5dations = su* adm9i/rative & legislative actions z may be appropriate to resolve problems enc\nt]$ by retail p>ticipants2 & 7vi7 any o!r in=mation1 z det]m9$ appropriate by ! ,digital ,commodity ,retail ,advocate4 7,c7 ,indep5d5ce ,ea* report requir$ "u subp>agraph 7,a7 %all be provid$ directly to ! committees describ$ 9 t subp>agraph )\t any prior review or comm5t f ! ,commission1 any ,commission]1 any o!r (fic] or employee ( ! ,commission1 or ! ,(fice ( ,managem5t & ,budget4 7,d7 ,confid5tiality ,no report requir$ "u subp>agraph 7,a7 may conta9 confid5tial in=mation4 7g7 ,ombudsman 7#a7 ,appo9tm5t ,n lat] ?an #ahj days aft] ! date on :i* ! fir/ ,digital ,commodity ,retail ,advocate is appo9t$ "u subsection 7c77#a77;,b71 ! ,digital ,commodity ,retail ,advocate %all appo9t an ,ombudsman1 :o %all report directly to ! ,digital ,commodity ,retail ,advocate4 7#b7 ,duties ,! ,ombudsman appo9t$ "u p>agraph 7#a7 %all-- 7,a7 act z a liaison betwe5 ! ,commission & any retail p>ticipant 9 resolv+ problems ! retail p>ticipant may h ) ! ,commission or a regi/]$ futures association2 7,b7 review & make recomm5dations reg>d+ policies & proc$ures to enc\rage p]sons to pres5t que/ions to ! ,digital ,commodity ,retail ,advocate reg>d+ compliance ) ?is ,act2 & 7,c7 e/abli% safegu>ds to ma9ta9 ! confid5tiality ( communications betwe5 ! p]sons describ$ 9 subp>agraph 7,b7 & ! ,ombudsman4 7#c7 ,limitation 7,a7 ,p]sonnel ,9 c>ry+ out ! duties ( ! ,ombudsman "u p>agraph 7#b71 ! ,ombudsman %all utilize p]sonnel ( ! ,commission1 to ! ext5t practicable4 7,b7 ,effect ,no?+ 9 ?is p>agraph %all be con/ru$ z replac+1 alt]+1 or dim9i%+ ! activities ( any ombudsman or simil> (fice ( any o!r ag5cy4 7#d7 ,report 7,a7 ,report on activities ,! ,ombudsman %all submit to ! ,digital ,commodity ,retail ,advocate an annual report t describes ! activities & evaluates ! effectiv5ess ( ! ,ombudsman dur+ ! prec$+ #a-ye> p]iod4 7,b7 ,submission ,! ,digital ,commodity ,retail ,advocate %all include ! reports requir$ "u subp>agraph 7,a7 9 ! reports requir$ to be submitt$ by ! ,digital ,commodity ,retail ,advocate "u subsection 7f74 4 #bab4 ,report ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is ,act1 ! ,commodity ,futures ,trad+ ,commission 7ref]r$ to 9 ?is section z ! ,commission7 %all-- 7#a7 exam9e ! racial1 e?nic1 & g5d] demographics ( cu/om]s p>ticipat+ 9 digital commodity m>kets2 7#b7 submit to ! ,committee on ,agriculture1 ,nutrition1 & ,=e/ry ( ! ,s5ate & ! ,committee on ,agriculture ( ! ,h\se ( ,repres5tatives a report-- 7,a7 describ+ h[ ^? demographics w in=m ! rules & regulations ( ! ,commission relat+ to cu/om] protection2 7,b7 propos+ ways 9 :i* ! ,commission c provide outrea* to hi/orically und]s]v$ cu/om]s p>ticipat+ 9 digital commodity m>kets2 & 7,c7 conta9+ policy recomm5dations relat+ to any o!r activities ! ,commission det]m9es to be necess>y to provide appropriate protection1 outrea*1 or o!r simil> activities relat+ to hi/orically und]s]v$ cu/om]s p>ticipat+ 9 digital commodity m>kets2 & 7#c7 9 prep>+ ! report "u ?is subsection1 seek & consid] in=mation & input f a broad range ( /akehold]s1 includ+ m>ket p>ticipants1 cu/om]s1 & consum] advocates4 ,m>* #ab1 #bjbf,read ! second "t & plac$ on ! cal5d>