,,ii  #aaith ,,congress  #b;d ,session  
,s4 #eadj  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #bg1     
#bjbf,mr4 ,justice introduced the       
following bill2 which was read twice and
 referred to the ,committee on ,banking1
 ,housing1 and ,urban ,affairs  ,a      
,,bill  ,to ensure the fairness1        
transparency1 and consistency of        
disqualifying provisions administered by
 the ,commodity ,futures ,trading       
,commission and the ,securities and     
,exchange ,commission1 and for other    
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,digital ,equities  
and ,no ,automatic ,disqualifications   
,act4  #b4 ,rulemaking on               
disqualifications  7a7 ,no automatic    
effect ,no provision of any statute1    
rule1 or regulation described in        
subsection 7c7 that provides1 upon the  
occurrence of a specified event1 for the
 automatic disqualification from1 or    
ineligibility for1 any registration1    
right1 or privilege1 service in any     

capacity1 or membership in a            
self-regulatory organization 7referred  
to in this section as a disqualifying   
provision7 shall have effect with       
respect to any person 7other than a     
natural person7 unless the ,federal     
agency or self-regulatory organization  
responsible for administering such      
disqualifying provision 7referred to in 
this section as a regulatory authority7 
makes a determination to apply the      
disqualifying provision with respect to 
the particular matter in accordance with
 the process established under          
subsection 7b74  7b7 ,joint agency      
rulemaking  7#a7 ,in general ,not later 
than #a year after the date of enactment
 of this ,act1 the ,commodity ,futures  
,trading ,commission and the ,securities
 and ,exchange ,commission shall engage 
in a joint rulemaking regarding the     
disqualifying provisions to establish a 
process for each regulatory authority to
 determine1 prior to the disposition of 
any applicable matter1 whether to apply 

the relevant disqualifying provision4   
7#b7 ,requirements ,the rules or        
regulations issued under paragraph 7#a7 
shall-- 7,a7 provide for consistency    
across regulatory authorities in the    
administration of disqualifying         
provisions2  7,b7 require the party     
subject to a disqualifying provision to 
provide to the relevant regulatory      
authority written notice that the party 
is subject to the disqualifying         
provision not later than #cj calendar   
days after the occurrence of the event  
specified in the disqualifying          
provision2  7,c7 provide for a nonpublic
 process1 as appropriate to protect     
confidentiality1 in cases in which a    
regulatory action that would trigger a  
disqualifying provision has not yet been
 made public2  7,d7 provide that an     
event may not result in the application 
of a disqualifying provision to a person
 7other than a natural person7 unless   
that application1 in whole or in part1  
to that person is necessary and         

appropriate in the public interest and  
for the protection of investors2  7,e7  
take into consideration applicable      
mitigating factors2  7,f7 provide that a
 disqualifying provision may be         
determined to apply only if the event   
triggering the disqualifying provision  
occurred in the same legal entity that  
would become subject to the application 
of the disqualifying provision and      
relates to the conduct of the business  
line that is directly affected by the   
disqualifying provision2 and  7,g7      
balance the scope of the rules or       
regulations with ensuring adequate      
investor protections and safeguards4    
7c7 ,provisions described ,the          
provisions referred to in subsection 7a7
 are-- 7#a7 the ,commodity ,exchange    
,act 7#g ,u4,s4,c4 #a et seq472  7#b7   
the ,securities ,act of #aicc 7#ae      
,u4,s4,c4 #gg;a et seq472  7#c7 the     
,securities ,exchange ,act of #aicd 7#ae
 ,u4,s4,c4 #gh;a et seq472  7#d7 the    
,investment ,company ,act of #aidj 7#ae 

,u4,s4,c4 #hj;a-#a et seq472  7#e7 the  
,investment ,advisers ,act of #aidj 7#ae
 ,u4,s4,c4 #hj;b-#a et seq472  7#f7 any 
rule or regulation issued under any     
provision of law described in paragraphs
 7#a7 through 7#e72 and  7#g7 any rule  
of a self-regulatory organization issued
 under the authority of a provision1    
rule1 or regulation described in        
paragraphs 7#a7 through 7#f74