Public experiment
119th CONGRESS · H. R. 3633 · Reported-in-Senate
115 HR 3633 RS: Digital Asset Market Clarity Act of 2025
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This Act may be cited as the Digital Asset Market Clarity Act of 2025 or the CLARITY Act of 2025 and the Anti-CBDC Surveillance State Act.
The table of contents for this Act is as follows:
Section 2(a) of the Securities Act of 1933 (15 U.S.C. 77b(a)) is amended by adding at the end the following:
Section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)) is amended—
by redesignating the second paragraph (80) (relating to funding portals) as paragraph (81); and
by adding at the end the following:
Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is amended—
in paragraph (10)—
in subparagraph (A)—
by redesignating clauses (iii) and (iv) as clauses (iv) and (v), respectively; and
by inserting after clause (ii) the following:
by redesignating subparagraph (B) as subparagraph (C) and inserting after subparagraph (A) the following:
in paragraph (11)—
in subparagraph (A)(i)—
by redesignating subclauses (III) and (IV) as subclauses (IV) and (V), respectively; and
by inserting after subclause (II) the following:
by redesignating subparagraph (B) as subparagraph (C) and inserting after subparagraph (A) the following:
in paragraph (12)(A)(i)—
in subclause (II), by adding at the end a semicolon;
by redesignating subclauses (III) and (IV) as subclauses (IV) and (V), respectively; and
by inserting after subclause (II) the following:
by redesignating paragraphs (16) through (51) as paragraphs (17) through (52), respectively, and inserting after paragraph (15) the following:
in paragraph (41) (as so redesignated by paragraph (4) of this subsection)—
by striking and at the end of subparagraph (E);
by striking the period at the end of subparagraph (F) and inserting ; and; and
by adding at the end the following:
Each of the following provisions of law is amended by striking 1a(18) and inserting 1a(19):
Section 4s(h)(5)(A)(i) of the Commodity Exchange Act (7 U.S.C. 6s(h)(5)(A)(i)).
Section 5(e) of the Securities Act of 1933 (15 U.S.C. 77e(e)).
Section 6(g)(5)(B) of the Securities Exchange Act of 1934 (15 U.S.C. 78f(g)(5)(B)).
Section 15F(h)(5)(A)(i) of the Securities Exchange Act of 1934 (15 U.S.C. 78o–10(h)(5)(A)(i)).
Section 752 of the Wall Street Transparency and Accountability Act of 2010 (15 U.S.C. 8325) is amended by striking 1a(39) and inserting 1a(40).
Section 4s(f)(1)(D) of the Commodity Exchange Act (7 U.S.C. 6s(f)(1)(D)) is amended by striking 1a(47)(A) and inserting 1a(48)(A).
Each of the following provisions of the Commodity Exchange Act is amended by striking 1a(47)(A)(v) and inserting 1a(48)(A)(v):
Section 4t(b)(1)(C) (7 U.S.C. 6t(b)(1)(C)).
Section 5(d)(23) (7 U.S.C. 7(d)(23)).
Section 5b(k)(3) (7 U.S.C. 7a–1(k)(3)).
Section 5h(f)(10)(A)(iii) (7 U.S.C. 7b–3(f)(10)(A)(iii)).
Section 21(f)(4)(C) of the Commodity Exchange Act (7 U.S.C. 24a(f)(4)(C)) is amended by striking 1a(48) and inserting 1a(49).
Section 403 of the Legal Certainty for Bank Products Act of 2000 (7 U.S.C. 27a) is amended—
in subsection (a)(2), by striking 1a(47)(A)(v) and inserting 1a(48)(A)(v); and
in each of subsections (b)(1) and (c)(2), by striking 1a(47) and inserting 1a(48).
Section 712 of the Wall Street Transparency and Accountability Act of 2010 (15 U.S.C. 8302) is amended—
in subsection (a)(8), by striking 1a(47)(D) each place it appears and inserting 1a(48)(D); and
in subsection (d)(1), by striking 1a(47)(A)(v) each place it appears and inserting 1a(48)(A)(v).
In this Act:
The terms decentralized finance messaging system, decentralized finance trading protocol, digital commodity, digital commodity broker, digital commodity dealer, digital commodity exchange, and mixed digital asset transaction have the meaning given those terms, respectively, under section 1a of the Commodity Exchange Act (7 U.S.C. 1a).
The terms blockchain, blockchain system, blockchain protocol, decentralized governance system, digital asset, digital commodity issuer, end user distribution, mature blockchain system, permitted payment stablecoin, and permitted payment stablecoin issuer have the meaning given those terms, respectively, under section 2(a) of the Securities Act of 1933 (15 U.S.C. 77b(a)).
The terms Bank Secrecy Act, securities laws, and self-regulatory organization have the meaning given those terms, respectively, under section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)).
The Commodity Futures Trading Commission and the Securities and Exchange Commission shall jointly issue rules to further define the following terms:
The terms—
blockchain, blockchain application, blockchain system, blockchain protocol, decentralized governance system, digital commodity affiliated person, digital commodity issuer, digital commodity related person, end user distribution, and mature blockchain system, as defined under section 2(a) of the Securities Act of 1933;
unilateral authority, as such term is used in section 42 of the Securities Exchange Act of 1934 and section 1a of the Commodity Exchange Act; and
programmatic functioning, as such term is used in sections 4C of the Securities Act of 1933, section 42 of the Securities Exchange Act of 1934, and section 1a of the Commodity Exchange Act.
The terms digital commodity, decentralized finance messaging system, and decentralized finance trading protocol, as defined under section 1a of the Commodity Exchange Act.
The Securities and Exchange Commission and the Commodity Futures Trading Commission shall jointly issue rules applicable to mixed digital asset transactions under this Act and the amendments made by this Act, including by further defining such term.
A United States individual shall retain the right to—
maintain a hardware wallet or software wallet for the purpose of facilitating the individual’s own lawful custody of digital assets; and
engage in direct, peer-to-peer transactions in digital assets with another individual or entity for the individual’s own lawful purposes using a hardware wallet or software wallet, if—
such other individual or entity is not a financial institution (as defined in section 5312 of title 31, United States Code); and
the transactions do not involve any property or interests in property that are blocked pursuant to, or are otherwise prohibited by, United States sanctions.
This subsection—
applies solely to personal use by individuals; and
does not apply to individuals acting in a custodial or fiduciary capacity for others.
Nothing in this subsection shall be construed to limit the authority of the Secretary of the Treasury, the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, or the National Credit Union Administration to carry out any enforcement action or special measure authorized under applicable law, including—
the Bank Secrecy Act, section 9714 of the Combating Russian Money Laundering Act (31 U.S.C. 5318A note), and section 7213A of the Fentanyl Sanctions Act (21 U.S.C. 2313a); or
any other law relating to illicit finance, money laundering, terrorism financing, or United States sanctions.
Not later than 180 days after the date of the enactment of this Act, the Commodity Futures Trading Commission and the Securities and Exchange Commission shall jointly issue rules, procedures, or guidance (as determined appropriate by the Commissions) regarding the process to delist an asset for trading under section 106 if the Commissions determine that the listing is inconsistent with the Commodity Exchange Act, the securities laws (including regulations under those laws), or this Act.
Not later than 360 days after the date of the enactment of this Act, the Commodity Futures Trading Commission and the Securities and Exchange Commission shall jointly issue rules describing the process for persons registered with either such Commission to seek a joint order or determination with respect to margin, customer protection, segregation, or other requirements as necessary to facilitate portfolio margining of securities (including related extensions of credit), security-based swaps, contracts for future delivery, options on a contract for future delivery, swaps, and digital commodities, or any subset thereof, in—
a securities account carried by a registered broker or dealer or a security-based swap account carried by a registered security-based swap dealer;
a futures or cleared swap account carried by a registered futures commission merchant;
a swap account carried by a swap dealer; or
a digital commodity account carried by a registered digital commodity broker or digital commodity dealer that is also registered in such other capacity as is necessary to also carry the other customer or counterparty positions being held in the account.
With respect to a joint order or determination described in paragraph (1), the rules required to be issued pursuant to paragraph (1) shall require—
the joint order or determination to be issued only if the order or determination is in the public interest and provides for the appropriate protection of customers;
applicants to file a standard application, in a form and manner determined by the Securities and Exchange Commission and the Commodity Futures Trading Commission, which shall include the information necessary to make the joint order or determination;
the Securities and Exchange Commission and the Commodity Futures Trading Commission to make a final determination not later than 270 days after the filing of a completed application;
the Securities and Exchange Commission and the Commodity Futures Trading Commission to consider the public interest of the joint order or determination through the solicitation of public comments; and
the Securities and Exchange Commission and the Commodity Futures Trading Commission to consult with other relevant foreign or domestic regulators, including the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency, as appropriate.
No later than 360 days following the date of enactment of this Act, the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation shall develop risk-based and leverage capital requirements for insured depository institutions, depository institution holding companies, and nonbank financial companies supervised by the Board of Governors that address netting agreements that provide for termination and close-out netting across multiple types of financial transactions, consistent with subsection (e), in the event of a counterparty’s default.
Unless exempted from registration, a person shall not act as a digital commodity broker, digital commodity dealer, or digital commodity exchange after the end of the 90-day period beginning on the date the process described in paragraph (2) is adopted by the Commodity Futures Trading Commission, unless, as the case may be, the person is registered as a—
digital commodity broker pursuant to section 4u of the Commodity Exchange Act;
digital commodity dealer pursuant to section 4u of the Commodity Exchange Act; or
digital commodity exchange pursuant to section 5i of the Commodity Exchange Act.
Within 180 days after the date of the enactment of this Act, the Commodity Futures Trading Commission shall adopt, by rule, regulation, or order, a process for expedited registration of persons required to be registered pursuant to paragraph (1).
A person who is registered in accordance with subsection (a) of this section shall be in provisional status until—
in the case of a digital commodity broker or dealer, 270 days after the final effective date of the rulemakings required under section 4u of the Commodity Exchange Act; or
in the case of a digital commodity exchange, 270 days after the final effective date of the rulemakings required under section 5i of such Act.
A person in provisional status shall pay all fees and penalties required under section 410.
A person in provisional status shall be subject to the requirements of this section and the Commodity Exchange Act and any rules or regulations promulgated under this section or the Commodity Exchange Act, as applicable.
Except as provided in subparagraph (B), a person in provisional status may continue to offer, solicit, trade, facilitate, execute, clear, report, or otherwise deal in any digital asset offered on or through the facilities of the person before the date of registration under this section, until such time as the joint rulemaking on definitions required under section 105(a) is effective.
Before the effective date of the joint rulemaking on definitions under section 105(a), a person in provisional status shall cease offering, soliciting, trading, facilitating, executing, clearing, reporting, or otherwise dealing in any digital asset required to be delisted pursuant to a joint delisting process established under section 105(d).
In order to promote responsible innovation and fair competition, or protect customers, the Commodity Futures Trading Commission may exempt any persons or class of persons registered pursuant to subsection (a) and in provisional status pursuant to subsection (b) from any requirements of this section or the Commodity Exchange Act or any rules or regulations promulgated under this section or the Commodity Exchange Act, as applicable.
Beginning 30 days after the date of the enactment of this Act, any person acting as a digital commodity exchange, digital commodity broker, or digital commodity dealer shall disclose to the customers of the person so acting, in the disclosure documents, offering documents, and promotional material of the person so acting, in a prominent manner, that the person is not registered with or regulated by the Commodity Futures Trading Commission.
Paragraph (1) of this subsection shall not apply to any person who registers pursuant to subsection (a).
Nothing in this Act shall affect or apply to, or be interpreted to affect or apply to—
any agreement, contract, or transaction that is subject to the Commodity Exchange Act as—
a contract of sale of a commodity for future delivery or an option on such a contract;
a swap;
a security futures product;
an option authorized under section 4c of such Act;
an agreement, contract, or transaction described in section 2(c)(2)(C)(i) of such Act; or
a leverage transaction authorized under section 19 of such Act;
any agreement, contract, or transaction that is subject to the securities laws as—
a security-based swap;
a security futures product; or
an option on or based on the value of a security; or
the activities of any person with respect to any such agreement, contract, or transaction.
Nothing in this Act authorizes, or shall be interpreted to authorize, a digital commodity exchange, digital commodity broker, or digital commodity dealer to engage in any activities involving any transaction, contract, or agreement described in subsection (a)(1), solely by virtue of being registered as a digital commodity exchange, digital commodity broker, or digital commodity dealer.
In this section, each term shall have the meaning provided in the Commodity Exchange Act or the regulations prescribed under such Act.
Section 4c(a) of the Commodity Exchange Act (7 U.S.C. 6c(a)) is amended—
in paragraph (3)—
in subparagraph (B), by striking or at the end;
in subparagraph (C), by striking the period and inserting ; or; and
by adding at the end the following:
in paragraph (4)—
in subparagraph (A)—
in clause (ii), by striking or at the end;
in clause (iii), by striking the period and inserting ; or; and
by adding at the end the following:
in subparagraph (B)—
in clause (ii), by striking or at the end;
in clause (iii), by striking the period and inserting ; or; and
by adding at the end the following:
in subparagraph (C)—
in clause (ii), by striking or at the end;
by striking (iii) a swap, provided however, and inserting the following:
by striking clauses (i), (ii), or (iii) and insert any of clauses (i) through (iv).
Notwithstanding applicable law, a non-controlling blockchain developer or provider of a blockchain service shall not be treated as a money transmitter or as engaged in money transmitting or, following the date of enactment of this Act, be otherwise subject to any new registration requirement that is substantially similar to the requirement that currently applies to money transmitters, solely on the basis of—
creating or publishing software to facilitate the creation of, or provision of maintenance services to, a blockchain or blockchain service;
providing hardware or software to facilitate a customer’s own custody or safekeeping of the customer’s digital assets; or
providing infrastructure support to maintain a blockchain service.
Nothing in this section shall be construed to affect whether a blockchain developer or provider of a blockchain service is otherwise subject to classification or treatment as a money transmitter, or as engaged in money transmitting, under applicable State or Federal law, including laws relating to anti-money laundering or countering the financing of terrorism, based on conduct outside the scope of subsection (a). Nothing in this section shall be construed to affect whether a blockchain developer or provider of a blockchain service is otherwise subject to classification or treatment as a financial institution under the Bank Secrecy Act, this Act, or any Act enacted after the date of enactment of this Act.
Nothing in this section shall be construed to limit or expand any law pertaining to intellectual property.
Nothing in this section shall be construed to prevent any State from enforcing any State law that is consistent with this section. No cause of action may be brought and no liability may be imposed under any State or local law that is inconsistent with this section.
In this section:
The term blockchain developer means any person or business that creates or publishes software to facilitate the creation of, or provide maintenance to, a blockchain or a blockchain service.
The term blockchain service means any information, transaction, or computing service or system that provides or enables access to a blockchain network by multiple users, including specifically a service or system that enables users to send, receive, exchange, or store digital assets described by blockchain networks.
The term non-controlling blockchain developer or provider of a blockchain service means a blockchain developer or provider of a blockchain service that in the regular course of operations, does not have the legal right or the unilateral and independent ability to control, initiate upon demand, or effectuate transactions involving digital assets that users are entitled to, without the approval, consent, or direction of any other third party.
Section 5312(c)(1)(A) of title 31, United States Code, is amended—
by inserting digital commodity broker, digital commodity dealer, after futures commission merchant,; and
by inserting before the period the following: and any digital commodity exchange registered, or required to register, under the Commodity Exchange Act which permits direct customer access.
The Secretary of the Treasury, acting through the Director of the Financial Crimes Enforcement Network, and in consultation with Commodity Futures Trading Commission, shall issue requirements consistent with the requirements of futures commission merchants to apply the Bank Secrecy Act to digital commodity brokers, digital commodity dealers, and digital commodity exchanges that are tailored to the size and complexity of such entities, including by requiring each such entity to—
establish and maintain an anti-money laundering and countering the financing of terrorism program, which shall include—
an appropriate risk assessment;
the development of internal policies, procedures, and controls;
the designation of a compliance officer;
an ongoing employee training program; and
an independent audit function to test such program;
retain appropriate records of transactions;
monitor and report suspicious activity, which may include use of appropriate distributed ledger analytics; and
maintain an effective customer identification program to identify and verify account holders and carry out appropriate customer due diligence.
A digital commodity broker, digital commodity dealer, or digital commodity exchange shall comply with all laws and regulations related to United States sanctions administered by the Office of Foreign Assets Control.
Nothing in this Act, or the amendments made by this Act, shall be construed to limit or prevent the continued application of applicable ethics statutes and regulations administered by the Office of Government Ethics, or the ethics rules of the Senate and the House of Representatives, including section 208 of title 18, United States Code, and sections 2635.702 and 2635.802 of title 5, Code of Federal Regulations. For the avoidance of doubt, existing Office of Government Ethics laws and the ethics rules of the Senate and the House of Representatives prohibit any member of Congress or senior executive branch official from issuing a digital commodity during their time in public service. For the purposes of this section, an employee described in section 202 of title 18, United States Code, shall be deemed an executive branch employee for purposes of complying with section 208 of that title.
Unless otherwise provided in this Act or an amendment made by this Act, the Commodity Futures Trading Commission and the Securities and Exchange Commission, or both, shall individually, and jointly where required, promulgate rules and regulations required of each Commission under this Act or an amendment made by this Act not later than 360 days after the date of enactment of this Act.
In order to prepare for the implementation of this Act, the Commodity Futures Trading Commission and the Securities and Exchange Commission may, before any effective date provided in this Act—
promulgate rules, regulations, or orders permitted or required by this Act;
conduct studies and prepare reports and recommendations required by this Act;
register persons under this Act; and
exempt persons, agreements, contracts, or transactions from provisions of this Act, under the terms contained in this Act.
An action by the Commodity Futures Trading Commission or the Securities and Exchange Commission under paragraph (1) shall not become effective before the effective date otherwise applicable to the action under this Act.
Section 2(a) of the Securities Act of 1933 (15 U.S.C. 77b(a)), as amended by section 101, is further amended—
in paragraph (1), by adding at the end the following: The term investment contract does not include an investment contract asset.; and
by adding at the end the following:
Section 202(a)(18) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(a)(18)) is amended by adding at the end the following: The term investment contract does not include an investment contract asset (as such term is defined under section 2(a) of the Securities Act of 1933)..
Section 2(a)(36) of the Investment Company Act of 1940 (15 U.S.C. 80a–2(a)(36)) is amended by adding at the end the following: The term investment contract does not include an investment contract asset (as such term is defined under section 2(a) of the Securities Act of 1933)..
Section 3(a)(10) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(10)) is amended by adding at the end the following: The term investment contract does not include an investment contract asset (as such term is defined under section 2(a) of the Securities Act of 1933)..
Section 16(14) of the Securities Investor Protection Act of 1970 (15 U.S.C. 78lll(14)) is amended by adding at the end the following: The term investment contract does not include an investment contract asset (as such term is defined under section 2(a) of the Securities Act of 1933)..
The Securities Act of 1933 (15 U.S.C. 77a et seq.) is amended—
in section 4(a), by adding at the end the following:
by inserting after section 4A the following:
Section 12(g)(6) of the Securities Exchange Act of 1934 (15 U.S.C. 78l(g)(6)) is amended by striking under section 4(6) and inserting under section 4(a)(6) or 4(a)(8).
Section 18(b)(4) of the Securities Act of 1933 (15 U.S.C. 77r(b)(4)) is amended—
in subparagraph (B), by striking section 4(4) and inserting section 4(a)(4);
in subparagraph (C), by striking section 4(6) and inserting section 4(a)(6);
in subparagraph (F)—
by striking section 4(2) each place such term appears and inserting section 4(a)(2); and
by striking or at the end;
in subparagraph (G), by striking the period and inserting ; or; and
by adding at the end the following:
Except as provided in this subsection, nothing in this section or the amendments made by this section may be construed as prohibiting the offer or sale of an investment contract involving units of a digital commodity in reliance on an exemption from registration under the Securities Act of 1933, including as provided under section 3, 4(a), or 19 of the Securities Act of 1933, other than that provided under section 4(a)(8) of the Securities Act of 1933.
The Securities and Exchange Commission may issue rules—
to permit the issuer of a digital commodity related to a blockchain system described under section 4B(b)(1) of the Securities Act of 1933 that has not become a mature blockchain system within the time period described in section 4(a)(8)(A) of such Act, or the issuer of a digital commodity described in subparagraph (B)(iii), to utilize an exempt offering to offer or sell an investment contract involving the digital commodity, if the Commission qualifies any offering statement related to such exempt offering; and
for the offer and sale of investment contracts involving units of a digital commodity by issuers that are not organized under the laws of a State, a territory of the United States, or the District of Columbia.
Not later than 270 days after the date of the enactment of this section, the Securities and Exchange Commission shall issue the following rules:
A rule requiring a digital commodity issuer that last offered or sold an investment contract involving units of a digital commodity in reliance on an exemption from registration under the Securities Act of 1933, including as provided under section 3, 4(a), or 19 of the Securities Act of 1933, prior to the date of enactment of this Act, to file a comparable set of disclosures to those described under section 4B of the Securities Act of 1933 as the Commission determines appropriate based on the exemption, the maturity of the blockchain system to which such digital commodity relates, and any material ongoing efforts of such digital commodity issuer (provided that for blockchains certified as a mature blockchain system under section 42 of the Securities Exchange Act of 1934, such disclosures shall be comparable to those under section 4B(b)(5)(C)), not later than the later of—
one year after the effective date of this section; or
the date of any secondary market sale of such digital commodity made in reliance on section 203.
A rule requiring a digital commodity issuer that offers or sells an investment contract involving units of a digital commodity in reliance on an exemption from registration under the Securities Act of 1933, including as provided under section 3, 4(a), or 19 of the Securities Act of 1933, other than that provided under section 4(a)(8) of the Securities Act of 1933, on or after the date of enactment of this Act, to file a comparable set of disclosures to those described under section 4B of the Securities Act of 1933 as the Commission determines appropriate based on the exemption, the maturity of the blockchain system to which such digital commodity relates, and any material ongoing efforts of such digital commodity issuer, prior to the date of any secondary market sale of such digital commodity made in reliance on section 203.
With respect to a digital commodity where the digital commodity issuer is required to file disclosures under clause (i) or (ii) and where the blockchain system to which the digital commodity relates is not certified as a mature blockchain system pursuant to section 42 of the Securities Exchange Act of 1934 after the 4-year period beginning on the date that the first such disclosure is filed—
a rule prohibiting the offer or sale of an investment contract involving units of the digital commodity unless the Commission has qualified any offering statement related to such offer or sale, where such offer or sale is permitted pursuant to subparagraph (A)(i); and
a rule requiring the digital commodity issuer to make disclosures comparable to those described in 4B(e)(1)(A) of the Securities Act of 1933.
A rule permitting a successor to a digital commodity issuer, or such other appropriate person as designated by the Commission, to make the disclosures required under clause (i), where such issuer does not make the required disclosures.
Notwithstanding any other provision of law, the offer or sale of a digital commodity that originally involved an investment contract by a person other than the issuer of such digital commodity, or an agent or underwriter thereof, shall be deemed not to be an offer or sale of such investment contract between the issuer of the investment contract involving the digital commodity, or an agent or underwriter thereof, and the purchaser of such digital commodity under—
the Securities Act of 1933 (15 U.S.C. 77a et seq.);
the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.);
the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.);
the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.);
the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.); and
any applicable provisions of State law.
An end user distribution does not involve the offer or sale of a security.
In this section and with respect to a digital commodity issuer, the term agent means any person directly or indirectly controlled by the issuer or under direct or indirect common control with the issuer.
The Securities Act of 1933 (15 U.S.C. 77a et seq.), as amended by section 202, is further amended by inserting after section 4B the following:
Title I of the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended by adding at the end the following:
Unless otherwise provided in this title, this title and the amendments made by this title shall take effect 360 days after the date of enactment of this Act, except that, to the extent a provision of this title requires a rulemaking, the provision shall take effect on the later of—
360 days after the date of enactment of this Act; or
60 days after the publication in the Federal Register of the final rule implementing the provision.
Section 2(a)(1) of the Securities Act of 1933 (15 U.S.C. 77b(a)(1)), as amended by the GENIUS Act, is amended by striking the final sentence and inserting the following: The term does not include a digital commodity or permitted payment stablecoin..
Section 3(a)(10) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)), as amended by the GENIUS Act, is amended by striking the final sentence and inserting the following: The term does not include a digital commodity or permitted payment stablecoin..
Section 202(a) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(a)) is amended—
in paragraph (18), as amended by the GENIUS Act, by striking the final sentence and inserting the following: The term does not include a digital commodity or permitted payment stablecoin.;
by redesignating the second paragraph (29) (relating to commodity pools) as paragraph (31); and
by adding at the end, the following:
Section 2(a) of the Investment Company Act of 1940 (15 U.S.C. 80a–2) is amended—
in paragraph (36), as amended by the GENIUS Act, by striking the final sentence and inserting the following: The term does not include a digital commodity or permitted payment stablecoin.; and
by adding at the end, the following:
Section 16 of the Securities Investor Protection Act of 1970 (15 U.S.C. 78lll) is amended—
in paragraph (14), as amended by the GENIUS Act, by striking the final sentence and inserting the following: The term does not include a digital commodity or permitted payment stablecoin, as such terms are defined, respectively, under section 2(a) of the Securities Act of 1933 (15 U.S.C. 77b(a)); and
by adding at the end the following:
Section 10 of the Securities Exchange Act of 1934 (15 U.S.C. 78j) is amended—
by moving subsection (c) so as to appear after subsection (b);
by inserting after subsection (c) the following:
by adding at the end the following: Rules promulgated under subsection (b) that prohibit fraud, manipulation, or insider trading (but not rules imposing or specifying reporting or recordkeeping requirements, procedures, or standards as prophylactic measures against fraud, manipulation, or insider trading), and judicial precedents decided under subsection (b) and rules promulgated thereunder that prohibit fraud, manipulation, or insider trading, shall apply with respect to permitted payment stablecoin and digital commodity transactions engaged in by or through a broker or dealer or through an alternative trading system or, as applicable, a national securities exchange to the same extent as they apply to securities transactions. Judicial precedents decided under section 17(a) of the Securities Act of 1933 and sections 9, 15, 16, 20, and 21A of this title, and judicial precedents decided under applicable rules promulgated under such sections, shall apply to permitted payment stablecoins and digital commodities with respect to those circumstances in which the permitted payment stablecoins and digital commodities are, as applicable, brokered, traded, or custodied by or through a broker or dealer or through an alternative trading system or a national securities exchange to the same extent as they apply to securities..
Title I of the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended by inserting after section 6 the following:
Section 5 of the Securities Exchange Act of 1934 (15 U.S.C. 78e) is amended—
by striking It and inserting the following:
by adding at the end the following:
Section 3(a)(2) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(2)) is amended by adding at the end the following: Neither an alternative trading system predominantly facilitating the trading of digital commodities, permitted payment stablecoins, or both, relative to its securities traded, nor a digital commodity exchange, is a facility of an exchange..
Nothing in this section, the amendments made by this section, or section 304 may be construed to—
prohibit a national securities exchange from owning or operating any other type of alternative trading system; or
create a presumption that any other type of alternative trading system owned or operated by a national securities exchange is a facility of that exchange.
Each person or entity dual-registered with the Commodity Futures Trading Commission as permitted under section 15(p) of the Securities Exchange Act of 1934 shall establish, maintain, and, as applicable, enforce and comply with written policies and procedures reasonably designed to mitigate any conflicts of interest, including with respect to transactions or arrangements with affiliates registered with the Securities and Exchange Commission, taking into consideration the nature of the business of such person or entity.
The Securities and Exchange Commission shall prescribe rules for a person or entity with multiple registrations, where at least one such registration includes any dual registration permitted under section 15(p) of the Securities Exchange Act of 1934, to exempt the person or entity from duplicative, conflicting, or unduly burdensome provisions of the Securities Exchange Act of 1934 and rules thereunder, to the extent such an exemption would protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
The Securities and Exchange Commission shall require any registered national securities association that has as a member a registered broker or registered dealer that is registered with the Commodity Futures Trading Commission as a digital commodity broker or digital commodity dealer as permitted under section 15(p)(1) of the Securities Exchange Act of 1934 or otherwise transacts in permitted payment stablecoins to revise such rules as may be necessary to further the purposes of and compliance with this section.
The Securities and Exchange Commission shall enter into a memorandum of understanding with the Commodity Futures Trading Commission to ensure—
non-duplicative supervision and enforcement with respect to registrants of the Securities and Exchange Commission dual-registered with the Commodity Futures Trading Commission as permitted under section 15(p) of the Securities Exchange Act of 1934; and
appropriate information sharing between the Commissions to further the purposes of and compliance with this section, the Securities Exchange Act of 1934, and the Commodity Exchange Act.
Nothing in this section shall be construed to limit the anti-fraud, anti-manipulation, or false reporting enforcement authorities of the Commodity Futures Trading Commission with respect to a contract of sale of a commodity and persons effecting such contracts.
For purposes of books and records requirements for brokers, dealers, transfer agents, national securities exchanges under the Securities and Exchange Act of 1934 (15 U.S.C. 78a et seq.), investment advisers under the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.), and investment companies under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.), a person may, consistent with any rules promulgated under subsection (b), utilize records from a blockchain system.
Not later than 180 days after the date of enactment of this Act, the Securities and Exchange Commission shall issue and revise such rules as may be necessary to implement this section.
Section 28 of the Securities Act of 1933 (15 U.S.C. 77z–3) is amended by striking by rule or regulation and inserting by rule, regulation, or order.
Section 15 of the Securities Exchange Act of 1934 (15 U.S.C. 78o) is amended by adding at the end the following:
Section 18(b) of the Securities Act of 1933 (15 U.S.C. 77r(b)) is amended by adding at the end the following:
Nothing in this section, section 202, or the amendments made by such sections may be construed to limit the existing authority described in section 18(c)(1) of the Securities Act of 1933 (15 U.S.C. 77r(c)(1)) of a securities commission (or any agency or office performing like functions) of any State with respect to a covered security or any security.
The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended by inserting after section 15G the following:
The appropriate Federal banking agency, the National Credit Union Administration (in the case of a credit union), and the Securities and Exchange Commission may not require a depository institution, national bank, Federal credit union, State credit union, trust company, broker, or dealer, or any affiliate thereof (the entity)—
to include assets held in custody that are not accounted for as assets of the entity as a liability on the financial statement or balance sheet of the entity, including digital commodity or permitted payment stablecoin custody or safekeeping services; and
to hold regulatory capital against assets, including reserves backing such assets, in custody or safekeeping, except as necessary to mitigate against operational risks inherent with the custody or safekeeping services, as determined by—
the appropriate Federal banking agency;
the National Credit Union Administration (in the case of a credit union);
a State bank supervisor;
a State credit union supervisor (as defined in section 6003 of the Anti-Money Laundering Act of 2020 (31 U.S.C. 5311 note)); or
the Securities and Exchange Commission (in the case of a broker or dealer).
In this section:
The terms appropriate Federal banking agency, depository institution, national bank, and State bank supervisor have the meaning given those terms, respectively, under section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
The terms Federal credit union and State credit union have the meaning given those terms, respectively, under section 101 of the Federal Credit Union Act (12 U.S.C. 1752).
Not later than 270 days after the date of the enactment of this Act, the Securities and Exchange Commission shall issue rules requiring written disclosures regarding the treatment of customer assets in the event of an insolvency, resolution, or liquidation proceeding to be provided by a registered broker or dealer to an investor before a digital commodity, a permitted payment stablecoin, or an investment contract involving a unit of a digital commodity is received, acquired, or held by the broker or dealer for the account of the investor, which shall include, as necessary or appropriate for the protection of investors—
a description of the manner in which any digital commodity, permitted payment stablecoin, or investment contact involving a unit of a digital commodity received, acquired, or held by the broker or dealer for the account of such investor would be treated in an insolvency, resolution, or liquidation proceeding with respect to the broker or dealer under—
title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5381 et seq.);
the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.); or
as applicable, chapter 7 or chapter 11 of title 11, United States Code; and
how the treatment described in paragraph (1) differs from the treatment of securities and cash received, acquired, or held by the broker or dealer for the account of such investor in the event of an insolvency, resolution, or liquidation proceeding with respect to the broker or dealer under each law described under subparagraph (A) through (C) of paragraph (1).
Section 4(k)(4) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)(4)) is amended—
in subparagraph (A), by striking or securities and inserting , securities, or digital commodities; and
in subparagraph (E), by inserting or digital commodities before the period at the end.
A national bank may use a digital asset or blockchain system to perform, provide, or deliver any activity, function, product, or service that the national bank is otherwise authorized by law to perform, provide, or deliver.
Nothing in this subsection may be construed to exempt a national bank’s performance, provision, or delivery of an activity, function, product, or service from a requirement that would apply if the activity were not performed, provided, or delivered using a digital asset or blockchain system.
For purposes of sections 24(a) and 24(d) of the Federal Deposit Insurance Act (12 U.S.C. 1831a(a) and (d)), all of the activities authorized for a national bank under subsection (b) that are principal activities shall be permissible for an insured State bank and subsidiary of an insured State bank.
Except as otherwise provided under this title, this title and the amendments made by this title shall take effect 360 days after the date of enactment of this Act, except that, to the extent a provision of this title requires a rulemaking, the provision shall take effect on the later of—
360 days after the date of enactment of this Act; or
60 days after the publication in the Federal Register of the final rule implementing the provision.
The Securities and Exchange Commission, in consultation with the Commodity Futures Trading Commission, shall require any registered entity that facilitates the trading of digital commodities or investment contracts involving units of a digital commodity to provide clear and accessible educational materials to the public, including—
an overview of how blockchain technology functions;
a description of common risks associated with digital commodities;
a description of the differences between digital commodity markets and traditional financial markets;
information on reporting requirements related to digital commodity transactions or investment contracts involving units of a digital commodity; and
guidance on recognizing fraudulent schemes and instructions for reporting suspected fraud.
The dollar amount specified under section 7(a)(3)(A) of the Federal Reserve Act (12 U.S.C. 289(a)(3)(A)) is reduced by $15,000,000.
The amendment made by subsection (a) shall take effect on September 30, 2035.
Section 2(a)(1) of the Commodity Exchange Act (7 U.S.C. 2(a)(1)) is amended by adding at the end the following:
Section 2(c)(1) of the Commodity Exchange Act (7 U.S.C. 2(c)(1)) is amended—
in subparagraph (F), by striking or at the end;
in subparagraph (G), by striking the period and inserting ; or; and
by adding at the end the following:
Section 2(c)(2)(D) of the Commodity Exchange Act (7 U.S.C. 2(c)(2)(D)) is amended—
in clause (ii)(I), by inserting after paragraph (1) the following: (other than an agreement, contract, or transaction in a permitted payment stablecoin); and
by redesignating clause (iv) as clause (v) and inserting after clause (iii) the following:
Section 2(c)(2) of the Commodity Exchange Act (7 U.S.C. 2(c)(2)) is amended by adding at the end the following:
The Commodity Exchange Act is amended—
in section 1a(9) (7 U.S.C. 1a(9)), as amended by the GENIUS Act, by striking the second sentence; and
in section 2(a)(1)(A) (7 U.S.C. 2(a)(1)(A)), in the 1st sentence, by inserting subparagraphs (F) and (G) of subsection (c)(2) of this section or before section 19.
Section 4d of the Commodity Exchange Act (7 U.S.C. 6d) is amended—
in subsection (a)(2)—
in the 1st proviso, by striking any bank or trust company and inserting any bank, trust company, or qualified digital asset custodian, as applicable,; and
by inserting : Provided further, That any such property that is a digital asset shall be held in a qualified digital asset custodian before the period at the end; and
in subsection (f)(3)(A)(i), by striking any bank or trust company and inserting any bank, trust company, or qualified digital asset custodian.
Section 5c of the Commodity Exchange Act (7 U.S.C. 7a–2) is amended—
in subsection (a), by striking 5(d) and 5b(c)(2) and inserting 5(d), 5b(c)(2), and 5i(c);
in subsection (b)—
in each of paragraphs (1) and (2), by inserting digital commodity exchange, before derivatives; and
in paragraph (3), by inserting digital commodity exchange, before derivatives each place it appears;
in subsection (c)—
in paragraph (2), by inserting or participants before (in a;
in paragraph (4)(B), by striking 1a(10) and inserting 1a(9); and
in paragraph (5), by adding at the end the following:
by inserting after subsection (c) the following:
The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended by inserting after section 5h the following:
The Commodity Exchange Act (7 U.S.C. 1 et seq.), as amended by the preceding provisions of this Act, is amended by inserting after section 5i the following:
The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended by inserting after section 4t the following:
Section 4k of the Commodity Exchange Act (7 U.S.C. 6k) is amended—
by redesignating subsections (4) through (6) as subsections (5) through (7), respectively;
by inserting after subsection (3) the following:
in subsection (5) (as so redesignated), by striking or of a commodity trading advisor and inserting of a commodity trading advisor, of a digital commodity broker, or of a digital commodity dealer.
The Commodity Exchange Act (7 U.S.C. 1a et seq.) is amended by striking section 4k(6) each place it appears and inserting section 4k(7).
Section 4m(3) of the Commodity Exchange Act (7 U.S.C. 6m(3)) is amended—
in subparagraph (A)—
by striking any commodity trading advisor and inserting a commodity pool operator or commodity trading advisor; and
by striking acting as a commodity trading advisor and inserting acting as a commodity pool operator or commodity trading advisor; and
in subparagraph (C), by inserting digital commodities, after physical commodities,.
Section 4m of such Act (7 U.S.C. 6m) is amended by adding at the end the following:
The Commodity Exchange Act (7 U.S.C. 1 et seq.), as amended by the preceding provisions of this Act, is amended by inserting after section 4u the following:
The Commodity Futures Trading Commission (in this section referred to as the Commission) shall charge and collect a fee from each person in provisional status registered with the Commission pursuant to section 106, on—
the filing of the initial application for registration; and
an annual basis thereafter for maintaining provisional status.
The fees authorized under paragraph (1) may be collected and available for obligation only in the amounts provided in advance in an appropriation Act.
Notwithstanding the preceding provisions of this subsection, to promote fair competition or innovation, the Commission, in its sole discretion, may reduce or eliminate any fee otherwise required to be paid by a small or medium filer under this subsection.
The Commission shall publish in the Federal Register a schedule of the fees to be charged and collected under this section.
The fee schedule for a fiscal year shall include a written analysis of the estimate of the Commission of the total costs of carrying out the functions of the Commission under this Act during the fiscal year.
Before publishing the fee schedule for a fiscal year, the Commission shall submit a copy of the fee schedule to the Committees on Agriculture and on Appropriations of the House of Representatives and the Committees on Agriculture, Nutrition, and Forestry and on Appropriations of the Senate.
The Commission shall publish the fee schedule for the fiscal year in which this Act is enacted, within 30 days after the date of the enactment of this Act.
The Commission shall publish the fee schedule for each subsequent fiscal year, not less than 90 days before the due date prescribed by the Commission for payment of the annual fee for the fiscal year.
The Commission may impose a penalty against a person that fails to pay an annual fee charged under this section, within 30 days after the due date prescribed by the Commission for payment of the fee.
The amount of the penalty shall be—
5 percent of the amount of the fee due, multiplied by
the whole number of consecutive 30-day periods that have elapsed since the due date.
To the extent that the total amount of fees collected under this section during a fiscal year that begins after the date of the enactment of this Act exceeds the amount provided under subsection (a)(2) with respect to the fiscal year, the Commission shall reimburse the excess amount to the persons who have timely paid their annual fees, on a pro-rata basis that excludes penalties, and shall do so within 60 days after the end of the fiscal year.
All amounts collected under this section shall be credited to the currently applicable appropriation, account, or fund of the Commission as discretionary offsetting collections, and shall be available for the purposes authorized in subsection (f) only to the extent and in the amounts provided in advance in appropriations Acts.
In addition to amounts otherwise authorized to be appropriated to the Commission, there is authorized to be appropriated to the Commission amounts collected under this section to cover the costs of carrying out the functions of the Commission under this Act.
The Chairman, pursuant to section 6(a), may appoint individuals to a position described in paragraph (2) of this subsection—
in accordance with the statutes, rules, and regulations governing appointments to positions in the excepted service (as defined in section 2103 of title 5, United States Code); and
without regard to any statute, rule, or regulation governing appointments to positions in the competitive service (as defined in section 2102 of such title).
A position referred to in subparagraph (1) is a position at the Commission that—
is in the competitive service (as defined in section 2102 of such title); and
requires specialized knowledge of digital commodities markets, financial and capital market formation or regulation, financial market structures or surveillance, data collection or analysis, or information technology, cybersecurity, or system safeguards.
The appointment of a candidate to a position under this subsection shall not be considered to cause the position to be converted from the competitive service to the excepted service.
The authorities provided by this section shall expire at the end of the 4th fiscal year that begins after the date of the enactment of this Act.
The Commodity Exchange Act (7 U.S.C. 1 et seq.), as amended the preceding provisions of this Act, is amended by inserting after section 4v the following:
The Commodity Exchange Act (7 U.S.C. 1 et seq.), as amended by the preceding provisions of this Act, is amended—
by inserting after section 4w the following:
by inserting after section 6d the following:
Not later than 360 days after the date of the enactment of this Act, the Commodity Futures Trading Commission shall issue rules establishing requirements for the identification, mitigation, and resolution of conflicts of interest among and across registered entities (within the meaning of the Commodity Exchange Act) and persons required to be registered with the Commission, including conflicts of interest related to vertically integrated market structures and their varying responsibilities.
Unless otherwise provided in this title, this title and the amendments made by this title shall take effect 270 days after the date of the enactment of this Act.
It is the sense of Congress that nothing in this Act or any amendment made by this Act should be interpreted to authorize any entity to regulate any commodity, other than a digital commodity, on any spot market.
Congress finds the following:
Entrepreneurs and innovators are building and deploying this next generation of the internet.
Digital commodity networks represent a new way for people to join together and cooperate with one another to undertake certain activities.
Digital commodities have the potential to be the foundational building blocks of these systems, aligning the economic incentive for individuals to cooperate with one another to achieve a common purpose.
The digital commodity ecosystem has the potential to grow our economy and improve everyday lives of Americans by facilitating collaboration through the use of technology to manage activities, allocate resources, and facilitate decision making.
Blockchain systems and the digital commodities they empower provide control, enhance transparency, reduce transaction costs, and increase efficiency if proper protections are put in place for investors, consumers, our financial system, and our national security.
Blockchain technology facilitates new types of network participation which businesses in the United States may utilize in innovative ways.
Other digital commodity companies are setting up their operations outside of the United States, where countries are establishing frameworks to embrace the potential of blockchain technology and digital commodities and provide safeguards for consumers.
Digital commodities, despite the purported anonymity, provide law enforcement with an exceptional tracing tool to identify illicit activity and bring criminals to justice.
The Financial Services Committee of the House of Representatives has held multiple hearings highlighting various risks that digital commodities can pose to the financial markets, consumers, and investors that must be addressed as we seek to harness the benefits of these innovations.
It is the sense of Congress that—
the United States should seek to prioritize understanding the potential opportunities of the next generation of the internet;
the United States should seek to foster advances in technology that have robust evidence indicating they can improve our financial system and create more fair and equitable access to financial services for everyday Americans while protecting our financial system, investors, and consumers;
the United States must support the responsible development of digital commodities and the underlying technology in the United States or risk the shifting of the development of such assets and technology outside of the United States, to less regulated countries;
Congress should consult with public and private sector stakeholders to understand how to enact a functional framework tailored to the specific risks and unique benefits of different digital commodity-related activities, distributed ledger technology, distributed networks, and mature blockchain systems;
Congress should enact a functional framework tailored to the specific risks of different digital commodity-related activities and unique benefits of distributed ledger technology, distributed networks, and mature blockchain systems; and
consumers and market participants will benefit from a framework for digital commodities consistent with longstanding investor protections in securities and commodities markets, yet tailored to the unique benefits and risks of the digital commodity ecosystem.
Section 4 of the Securities Exchange Act of 1934 (15 U.S.C. 78d) is amended by adding at the end the following:
Section 18 of the Commodity Exchange Act (7 U.S.C. 22) is amended by adding at the end the following:
Section 2(a)(6)(A) of such Act (7 U.S.C. 2(a)(6)(A)) is amended—
by striking paragraph and in and inserting paragraph,; and
by inserting and section 18(c)(3), before the executive.
The Commodity Futures Trading Commission shall implement the amendments made by this section (including complying with section 18(c)(7) of the Commodity Exchange Act) within 180 days after the date of the enactment of this Act.
The Commodity Futures Trading Commission, the Securities and Exchange Commission, and the Secretary of the Treasury shall jointly carry out a study on decentralized finance that analyzes—
the nature, size, role, and use of decentralized finance blockchain applications;
the operation of blockchain applications that comprise decentralized finance;
the interoperability of blockchain applications and other blockchain systems;
the interoperability of blockchain applications and software-based systems, including websites and wallets;
the decentralized governance systems through which blockchain applications may be developed, published, constituted, administered, maintained, or otherwise distributed, including—
whether the systems enhance or detract from—
the decentralization of the decentralized finance; and
the inherent benefits and risks of the decentralized governance system; and
any procedures, requirements, or best practices that would mitigate the risks identified in subparagraph (A)(ii);
the benefits of decentralized finance, including—
operational resilience and availability of blockchain systems;
interoperability of blockchain systems;
market competition and innovation;
transaction efficiency;
transparency and traceability of transactions; and
disintermediation;
the risks of decentralized finance, including—
pseudonymity of users and transactions;
disintermediation; and
cybersecurity vulnerabilities;
the extent to which decentralized finance has integrated with the traditional financial markets and any potential risks or improvements to the stability of the markets;
how the levels of illicit activity in decentralized finance compare with the levels of illicit activity in traditional financial markets;
methods for addressing illicit activity in decentralized finance and traditional markets that are tailored to the unique attributes of each;
how decentralized finance may increase the accessibility of cross-border transactions; and
the feasibility of embedding self-executing compliance and risk controls into decentralized finance.
In carrying out the study required under subsection (a), the Commodity Futures Trading Commission and the Securities and Exchange Commission shall consult with the Secretary of the Treasury on the factors described under paragraphs (7) through (10) of subsection (a).
Not later than 1 year after the date of enactment of this Act, the Commodity Futures Trading Commission and the Securities and Exchange Commission shall jointly submit to the relevant congressional committees a report that includes the results of the study required by subsection (a).
The Comptroller General of the United States shall—
carry out a study on decentralized finance that analyzes the information described under paragraphs (1) through (12) of subsection (a); and
not later than 1 year after the date of enactment of this Act, submit to the relevant congressional committees a report that includes the results of the study required by paragraph (1).
In this section:
The term decentralized finance means blockchain applications (including decentralized finance trading protocols and related decentralized finance messaging systems) that allow users to engage in financial transactions in a self-directed manner so that a third-party intermediary does not effectuate the transactions or take custody of digital commodities of a user during any part of the transactions.
The term decentralized finance shall not be interpreted to limit or exclude any activity from the activities described in section 15I(a) of the Securities Exchange Act of 1934 or section 4v(a) of the Commodity Exchange Act.
The term relevant congressional committees means—
the Committees on Financial Services and Agriculture of the House of Representatives; and
the Committees on Banking, Housing, and Urban Affairs and Agriculture, Nutrition, and Forestry of the Senate.
The Comptroller General of the United States shall carry out a study of non-fungible tokens that analyzes—
the nature, size, role, purpose, and use of non-fungible tokens;
the similarities and differences between non-fungible tokens and other digital commodities, including digital commodities and permitted payment stablecoins, and how the markets for those digital commodities intersect with each other;
how non-fungible tokens are minted by issuers and subsequently administered to purchasers;
how non-fungible tokens are stored after being purchased by a consumer;
the interoperability of non-fungible tokens between different blockchain systems;
the scalability of different non-fungible tokens marketplaces;
the benefits of non-fungible tokens, including verifiable digital ownership;
the risks of non-fungible tokens, including—
intellectual property rights;
cybersecurity risks; and
market risks;
whether and how non-fungible tokens have integrated with traditional marketplaces, including those for music, real estate, gaming, events, and travel;
whether and how non-fungible tokens can be used to facilitate commerce or other activities through the representation of documents, identification, contracts, licenses, and other commercial, government, or personal records;
any potential risks to traditional markets from such integration; and
the levels and types of illicit activity in non-fungible tokens markets.
Not later than 1 year after the date of the enactment of this Act, the Comptroller General, shall make publicly available a report that includes the results of the study required by subsection (a).
The Commodity Futures Trading Commission with the Securities and Exchange Commission shall jointly conduct a study to identify—
the existing level of financial literacy among retail digital commodity holders, including subgroups of investors identified by the Commodity Futures Trading Commission with the Securities and Exchange Commission;
methods to improve the timing, content, and format of financial literacy materials regarding digital commodities provided by the Commodity Futures Trading Commission and the Securities and Exchange Commission;
methods to improve coordination between the Securities and Exchange Commission and the Commodity Futures Trading Commission with other agencies, including the Financial Literacy and Education Commission as well as nonprofit organizations and State and local jurisdictions, to better disseminate financial literacy materials;
the efficacy of current financial literacy efforts with a focus on rural communities and communities with majority minority populations;
the most useful and understandable relevant information, including clear disclosures, that retail digital commodity holders need to make informed financial decisions before engaging with or purchasing a digital commodity or service that is typically sold to retail investors of digital commodities;
the most effective public-private partnerships in providing financial literacy regarding digital commodities to consumers;
the most relevant metrics to measure successful improvement of the financial literacy of an individual after engaging with financial literacy efforts; and
in consultation with the Financial Literacy and Education Commission, a strategy (including to the extent practicable, measurable goals and objectives) to increase financial literacy of investors regarding digital commodities.
Not later than 1 year after the date of the enactment of this Act, the Commodity Futures Trading Commission and the Securities and Exchange Commission shall jointly submit a written report on the study required by subsection (a) to the Committees on Financial Services and on Agriculture of the House of Representatives and the Committees on Banking, Housing, and Urban Affairs and on Agriculture, Nutrition, and Forestry of the Senate.
The Commodity Futures Trading Commission and the Securities and Exchange Commission shall jointly conduct a study to assess whether additional guidance or rules are necessary to facilitate the development of tokenized securities and derivatives products, and to the extent such guidance or rules would foster the development of fair and orderly financial markets, be necessary or appropriate in the public interest, and be consistent with the protection of investors and customers.
Not later than 1 year after the date of enactment of this Act, the Commodity Futures Trading Commission and the Securities and Exchange Commission shall jointly submit to the relevant congressional committees a report that includes the results of the study required by subsection (a).
In this section, the term relevant congressional committees means—
the Committees on Financial Services and on Agriculture of the House of Representatives; and
the Committees on Banking, Housing, and Urban Affairs and on Agriculture, Nutrition, and Forestry of the Senate.
The Secretary of the Treasury shall conduct a study on the potential use of blockchain technology by the domestic private sector to address—
fraud in payments;
transaction costs and transaction times;
automated payments; and
efficiency in commercial transactions.
Not later than one year after the date of enactment of this Act, the Secretary shall submit a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate that summarizes the findings of the study required under subsection (a).
Nothing in this section shall be construed to mandate the use of blockchain technology by any public or private entity.
One year after the date of the enactment of this Act, the Secretary of the Treasury, in consultation with the Securities and Exchange Commission and the Commodity Futures Trading Commission, shall conduct a comprehensive review of how Foreign Terrorist Organizations and Transnational Criminal Syndicates utilize digital assets in connection with illicit activities.
Not later than 180 days after completing the review under subsection (a), the Secretary of the Treasury shall issue a report to the Committees on Agriculture and on Financial Services of the House of Representatives and the Committees on Agriculture, Nutrition, and Forestry and on Banking, Housing, and Urban Affairs of the Senate on the findings of the Secretary, including—
an assessment of how Foreign Terrorist Organizations and Transnational Criminal Syndicates utilize digital assets in connection with illicit activities; and
recommendations to assist the Securities and Exchange Commission and the Commodity Futures Trading Commission in strengthening compliance and enforcement of digital assets-related entities registered with their respective agencies.
The Comptroller General of the United States, in consultation with the Secretary of the Treasury, shall conduct a study to—
assess the risks posed by centralized intermediaries that are primarily located in foreign jurisdictions that provide services to U.S. persons without regulatory requirements that are substantially similar to the requirements of the Bank Secrecy Act; and
provide any regulatory or legislative recommendations to address these risks under paragraph (1).
Not later than 1 year after the date of enactment of this Act, the Comptroller General shall issue a report to Congress containing all findings and determinations made in carrying out the study required under subsection (a).
The Secretary of the Treasury, in consultation with the Commodity Futures Trading Commission and the Securities and Exchange Commission, shall, not later than 1 year after date of the enactment of this section, conduct a study and submit a report to the relevant congressional committees that—
identifies any digital commodity registrants which are owned by governments of foreign adversaries;
determines whether any governments of foreign adversaries are collecting trading data about United States persons in the digital commodity markets; and
evaluates whether any proprietary intellectual property of digital commodity registrants is being misused or stolen by any governments of foreign adversaries.
The Comptroller General shall, not later than 1 year after date of the enactment of this section, conduct a study and submit a report to the relevant congressional committees that—
identifies any digital commodity registrants which are owned by governments of foreign adversaries;
determines whether any governments of foreign adversaries are collecting trading data about United States persons in the digital commodity markets; and
evaluates whether any proprietary intellectual property of digital commodity registrants is being misused or stolen by any governments of foreign adversaries.
In this section:
The term digital commodity registrant means any person required to register as a digital commodity exchange, digital commodity broker, or digital commodity dealer under the Commodity Exchange Act.
The term foreign adversaries means the foreign governments and foreign non-government persons determined by the Secretary of Commerce to be foreign adversaries under section 7.4(a) of title 15, Code of Federal Regulations.
The term relevant congressional committees means—
the Committees on Financial Services and Agriculture of the House of Representatives; and
the Committees on Banking, Housing, and Urban Affairs and Agriculture, Nutrition, and Forestry of the Senate.
The GENIUS Act is amended—
in section 2, by amending paragraph (7) to read as follows:
in section 4(a)—
by amending paragraph (3) to read as follows:
by amending paragraph (12) to read as follows:
by adding at the end the following:
This title may be cited as the Anti-CBDC Surveillance State Act.
Section 16 of the Federal Reserve Act (12 U.S.C. 411 et seq.) is amended by adding at the end the following new paragraph:
Section 16 of the Federal Reserve Act (12 U.S.C. 411 et seq.), as amended by section 2, is further amended by adding at the end the following paragraph:
Section 10 of the Federal Reserve Act (12 U.S.C. 241 et seq.) is amended by inserting before paragraph (12) the following:
It is the sense of Congress that the Board of Governors of the Federal Reserve System currently does not have the authority to issue a central bank digital currency, or any digital asset that is substantially similar under any other name or label, and will not have such authority unless Congress grants it under Congress’s Article 1 Section 8 powers.
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