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119 HR 3633 IH: CLARITY Act of 2025 
 U.S. House of Representatives 
 2025-05-29 
 text/xml 
 EN 
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. 
 
 
 
 I 119th CONGRESS 1st Session H. R. 3633 IN THE HOUSE OF REPRESENTATIVES May 29, 2025 Mr. Hill of Arkansas (for himself, Mr. Thompson of Pennsylvania , Ms. Craig , Mr. Emmer , Mr. Johnson of South Dakota , Mr. Davis of North Carolina , Mr. Steil , Mr. Torres of New York , and Mr. Davidson ) introduced the following bill; which was referred to the Committee on Financial Services , and in addition to the Committee on Agriculture , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To provide for a system of regulation of the offer and sale of digital commodities by the Securities and Exchange Commission and the Commodity Futures Trading Commission, and for other purposes. 1. Short title; table of contents (a) Short title This Act may be cited as the Digital Asset Market Clarity Act of 2025 or the CLARITY Act of 2025 . (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Title I—Definitions; Rulemaking; Provisional registration Sec. 101. Definitions under the Securities Act of 1933. Sec. 102. Definitions under the Securities Exchange Act of 1934. Sec. 103. Definitions under the Commodity Exchange Act. Sec. 104. Definitions under this Act. Sec. 105. Rulemakings. Sec. 106. Provisional registration for digital commodity exchanges, brokers, and dealers. Sec. 107. Commodity Exchange Act and securities laws savings provisions. Sec. 108. Administrative requirements. Sec. 109. International cooperation. Sec. 110. Implementation. Sec. 111. Application of the Bank Secrecy Act. Title II—Offers and Sales of Digital Commodities Sec. 201. Treatment of investment contract assets. Sec. 202. Exempted primary transactions in digital commodities. Sec. 203. Treatment of secondary transactions in digital commodities that originally involved investment contracts. Sec. 204. Requirements for offers and sales of digital commodities by digital commodity related persons and digital commodity affiliated persons. Sec. 205. Mature blockchain system requirements. Sec. 206. Effective date. Title III—Registration for Intermediaries at the Securities and Exchange Commission Sec. 301. Treatment of digital commodities and permitted payment stablecoins. Sec. 302. Anti-fraud authority over permitted payment stablecoins and certain digital commodity transactions. Sec. 303. Eligibility of alternative trading systems. Sec. 304. Operation of alternative trading systems. Sec. 305. Modernization of recordkeeping requirements. Sec. 306. Exemptive authority. Sec. 307. Additional registrations with the Commodity Futures Trading Commission. Sec. 308. Exempting digital commodities from State securities laws. Sec. 309. Exclusion for decentralized finance activities. Sec. 310. Treatment of custody activities by banking institutions. Sec. 311. Digital commodity activities that are financial in nature. Sec. 312. Effective date; administration. Sec. 313. Studies on foreign adversary participation. Title IV—Registration for Digital Commodity Intermediaries at the Commodity Futures Trading Commission Sec. 401. Commission jurisdiction over digital commodity transactions. Sec. 402. Requiring futures commission merchants to use qualified digital asset custodians. Sec. 403. Trading certification and approval for digital commodities. Sec. 404. Registration of digital commodity exchanges. Sec. 405. Qualified digital asset custodians. Sec. 406. Registration and regulation of digital commodity brokers and dealers. Sec. 407. Registration of associated persons. Sec. 408. Registration of commodity pool operators and commodity trading advisors. Sec. 409. Exclusion for decentralized finance activities. Sec. 410. Resources for implementation and enforcement. Sec. 411. Digital commodity activities by SEC-registered entities. Sec. 412. Requirements related to control persons. Sec. 413. Effective date. Sec. 414. Sense of Congress. Title V—Innovation and Technology Improvements Sec. 501. Findings; sense of Congress. Sec. 502. Modernization of the Securities and Exchange Commission mission. Sec. 503. Strategic Hub for Innovation and Financial Technology. Sec. 504. Codification of LabCFTC. Sec. 505. Study on decentralized finance. Sec. 506. Study on non-fungible tokens. Sec. 507. Study on expanding financial literacy amongst digital commodity holders. Sec. 508. Study on financial market infrastructure improvements. I Definitions; Rulemaking; Provisional registration 101. Definitions under the Securities Act of 1933 Section 2(a) of the Securities Act of 1933 ( 15 U.S.C. 77b(a) ) is amended by adding at the end the following: (20) Blockchain The term blockchain means— (A) any technology— (i) where data is— (I) shared across a network to create a distributed ledger of independently verifiable transactions or information among network participants; (II) linked using cryptography to maintain the integrity of the distributed ledger and to execute other functions; and (III) propagated among network participants to reach consensus on the state of the distributed ledger and any other functions; and (ii) composed of source code that is publicly available; and (B) any similar technology to the technology described in subparagraph (A). (21) Blockchain application The term blockchain application means any executable software deployed to a blockchain composed of source code that is publicly available, including a smart contract or any network of smart contracts, or other similar technology. (22) Blockchain protocol The term ‘blockchain protocol’ means the freely and publicly available source code of a blockchain that is executed by the network participants of a blockchain to facilitate its functioning, or other similar technology. (23) Blockchain system The term blockchain system means any blockchain, together with its blockchain protocol or any blockchain application or network of blockchain applications. (24) Decentralized governance system (A) In general The term decentralized governance system means, with respect to a blockchain system, any transparent, rules-based system permitting persons to form consensus or reach agreement in the development, provision, publication, management, or administration of such blockchain system, where participation is not limited to, or under the effective control of, any person or group of persons under common control. (B) Relationship of persons to decentralized governance systems With respect to a decentralized governance system, the decentralized governance system and any persons participating in the decentralized governance system shall be treated as separate persons unless such persons are under common control. (C) Legal entities for decentralized governance systems The term decentralized governance system shall include a legal entity used to implement the rules-based system described in subparagraph (A), provided that the organizing and governing laws of such legal entity do not create or require centralized and hierarchical management of such legal entity. For the purposes of this subparagraph, the delegation of ministerial or administrative authority at the direction of the participants in a decentralized governance system shall not be construed to be centralized and hierarchical management. (25) Digital asset The term digital asset means any digital representation of value which is recorded on a cryptographically-secured distributed ledger or other similar technology. (26) Digital commodity The term digital commodity has the meaning given that term under section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a ). (27) Digital commodity affiliated person The term digital commodity affiliated person means a person (including a digital commodity related person) that, with respect to any digital commodity— (A) acquires 5 percent or more of the total outstanding units of such digital commodity from a digital commodity issuer; (B) is a founder of the digital commodity issuer; or (C) is an executive director, director, trustee, or general partner of the digital commodity issuer or held such role at any point in the previous 12-month period. (28) Digital commodity issuer With respect to a digital commodity, the term digital commodity issuer means any person that— (A) proposes, issues, or causes to be issued a unit of such digital commodity to a person; or (B) offers or sells a right to a future issuance of a unit of such digital commodity to a person. (29) Digital commodity related person (A) In general With respect to a digital commodity issuer, the term digital commodity related person means— (i) a person that is or was in the previous 6-month period a promoter, senior employee, advisory board member, consultant, advisor, or person serving in a similar capacity; and (ii) a person that acquires 1 percent or more of the total outstanding units of such digital commodity from a digital commodity issuer. (B) Senior employee defined In this paragraph and with respect to a digital commodity issuer, the term senior employee means any employee materially involved in the management or planning of the digital commodity issuer or the development of the blockchain system to which the digital commodity relates. (30) End user distribution The term end user distribution means a distribution of a unit of a digital commodity that— (A) does not involve an exchange of more than a nominal value of cash, property, or other assets; and (B) is distributed in a broad and equitable manner based on conditions capable of being satisfied by any participant in the blockchain system, including, as incentive-based rewards— (i) to users of the digital commodity or any blockchain system to which the digital commodity relates; (ii) for activities directly related to the operation of the blockchain system, such as mining, validating, staking, or other activity directly tied to the operation of the blockchain system; or (iii) to the existing holders of another digital commodity, in proportion to the total units of such other digital commodity as are held by each person. (31) Mature blockchain system The term ‘mature blockchain system’ means a blockchain system, together with its related digital commodity, that is not controlled by any person or group of persons under common control. (32) Permitted payment stablecoin (A) In general The term permitted payment stablecoin means a digital asset— (i) that is or is designed to be used as a means of payment or settlement; (ii) that is denominated in a national currency; (iii) the issuer of which is subject to the regulatory and supervisory authority of a State or Federal agency; (iv) the issuer of which— (I) is obligated to convert, redeem, or repurchase for a fixed amount of monetary value; or (II) represents that the digital asset will maintain or creates the reasonable expectation that the digital asset will maintain a stable value relative to the value of a fixed amount of monetary value; and (v) that is not— (I) a national currency; (II) a security issued by— (aa) an investment company registered under section 8(a) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–8(a) ); or (bb) a person that would be an investment company under the Investment Company Act of 1940 but for paragraphs (1) and (7) of section 3(c) of that Act ( 15 U.S.C. 80a–3(c) ); (III) a deposit (as defined under section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 )), regardless of the technology used to record such deposit; or (IV) an account (as defined in section 101 of the Federal Credit Union Act ( 12 U.S.C. 1752 )), regardless of the technology used to record such account. (B) Monetary value defined The term monetary value — (i) means— (I) a national currency; (II) a deposit (as defined in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 )) that is denominated in a national currency; or (III) an account (as defined in section 101 of the Federal Credit Union Act ( 12 U.S.C. 1752 )); and (ii) does not include any agricultural or other physical commodity (as defined in section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a )). (33) Securities laws The term securities laws has the meaning given that term under section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) ). . 102. Definitions under the Securities Exchange Act of 1934 Section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) ) is amended— (1) by redesignating the second paragraph (80) (relating to funding portals) as paragraph (81); and (2) by adding at the end the following: (82) Bank Secrecy Act The term Bank Secrecy Act means— (A) section 21 of the Federal Deposit Insurance Act ( 12 U.S.C. 1829b ); (B) chapter 2 of title I of Public Law 91–508 ( 12 U.S.C. 1951 et seq. ); and (C) subchapter II of chapter 53 of title 31, United States Code. (83) Additional digital commodity-related terms (A) Securities Act of 1933 The terms blockchain system , decentralized governance system , digital asset , digital commodity affiliated person , digital commodity issuer , digital commodity related person , end user distribution , mature blockchain system , and permitted payment stablecoin , have the meaning given those terms, respectively, under section 2(a) of the Securities Act of 1933 ( 15 U.S.C. 77b(a) ). (B) Commodity Exchange Act The terms digital commodity , digital commodity broker , digital commodity dealer , digital commodity exchange , decentralized finance messaging system , and decentralized finance trading protocol have the meaning given those terms, respectively, under section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a ). . 103. Definitions under the Commodity Exchange Act (a) In general Section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a ) is amended— (1) in paragraph (10)— (A) in subparagraph (A)— (i) by redesignating clauses (iii) and (iv) as clauses (iv) and (v), respectively; and (ii) by inserting after clause (ii) the following: (iii) digital commodity; ; and (B) by redesignating subparagraph (B) as subparagraph (C) and inserting after subparagraph (A) the following: (B) Exclusion For purposes of this paragraph, the term trading in commodity interests shall not include transacting in digital commodities for the purpose of— (i) acting as a digital commodity custodian; (ii) establishing, maintaining, or managing inventory or payment instruments for commercial purposes; or (iii) maintaining or supporting the operation of, or validating transactions on, a blockchain system. ; (2) in paragraph (11)— (A) in subparagraph (A)(i)— (i) by redesignating subclauses (III) and (IV) as subclauses (IV) and (V), respectively; and (ii) by inserting after subclause (II) the following: (III) digital commodity; ; and (B) by redesignating subparagraph (B) as subparagraph (C) and inserting after subparagraph (A) the following: (B) Exclusion For purposes of this paragraph, the term trading in commodity interests shall not include transacting in digital commodities for the purpose of— (i) acting as a digital commodity custodian; (ii) establishing, maintaining, or managing inventory or payment instruments for commercial purposes; or (iii) maintaining or supporting the operation of, or validating transactions on, a blockchain system. ; (3) in paragraph (12)(A)(i)— (A) in subclause (II), by adding at the end a semicolon; (B) by redesignating subclauses (III) and (IV) as subclauses (IV) and (V), respectively; and (C) by inserting after subclause (II) the following: (III) a digital commodity; ; (4) by redesignating paragraphs (16) through (51) as paragraphs (17) through (52), respectively, and inserting after paragraph (15) the following: (16) Terms related to digital commodities (A) Associated person of a digital commodity broker (i) In general Except as provided in clause (ii), the term associated person of a digital commodity broker means a person who is associated with a digital commodity broker as a partner, officer, employee, or agent (or any person occupying a similar status or performing similar functions) in any capacity that involves— (I) the solicitation or acceptance of an order for the purchase or sale of a digital commodity; or (II) the supervision of any person engaged in the solicitation or acceptance of an order for the purchase or sale of a digital commodity. (ii) Exclusion The term associated person of a digital commodity broker does not include any person associated with a digital commodity broker the functions of which are solely clerical or ministerial. (B) Associated person of a digital commodity dealer (i) In general Except as provided in clause (ii), the term associated person of a digital commodity dealer means a person who is associated with a digital commodity dealer as a partner, officer, employee, or agent (or any person occupying a similar status or performing similar functions) in any capacity that involves— (I) the solicitation or acceptance of a contract for the purchase or sale of a digital commodity; or (II) the supervision of any person engaged in the solicitation or acceptance of a contract for the purchase or sale of a digital commodity. (ii) Exclusion The term associated person of a digital commodity dealer does not include any person associated with a digital commodity dealer the functions of which are solely clerical or ministerial. (C) Bank Secrecy Act The term Bank Secrecy Act means— (i) section 21 of the Federal Deposit Insurance Act ( 12 U.S.C. 1829b ); (ii) chapter 2 of title I of Public Law 91–508 ( 12 U.S.C. 1951 et seq. ); and (iii) subchapter II of chapter 53 of title 31, United States Code. (D) Decentralized finance messaging system (i) In general The term decentralized finance messaging system means a software application that provides a user with the ability to create or submit an instruction, communication, or message to a decentralized finance trading protocol for the purpose of executing a transaction by the user. (ii) Additional requirements The term decentralized finance messaging system does not include any system that provides any person other than the user with control over— (I) the funds of the user; or (II) the execution of the transaction of the user. (E) Decentralized finance trading protocol (i) In general The term decentralized finance trading protocol means a blockchain system through which multiple participants can execute a financial transaction— (I) in accordance with an automated rule or algorithm that is predetermined and non-discretionary; and (II) without reliance on any other person to maintain control of the digital assets of the user during any part of the financial transaction. (ii) Exclusions (I) In general The term decentralized finance trading protocol does not include a blockchain system if— (aa) a person or group of persons under common control has the unilateral authority, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise, to control or materially alter the functionality, operation, or rules of consensus or agreement of the blockchain system; or (bb) the blockchain system does not operate, execute and enforce its operations and transactions based solely on pre-established, transparent rules encoded directly within the source code of the blockchain system. (II) Special rule For purposes of subclause (I), a decentralized governance system shall not be considered to be a person or a group of persons under common control. (F) Digital commodity (i) In general The term digital commodity means a digital asset that is intrinsically linked to a blockchain system, and the value of which is derived from or is reasonably expected to be derived from the use of the blockchain system. (ii) Relationship to a blockchain system For purposes of this subparagraph, a digital asset is intrinsically linked to a blockchain system if the digital asset is directly related to the functionality or operation of the blockchain system or to the activities or services for which the blockchain system is created or utilized, including where the digital asset is— (I) issued or generated by the programmatic functioning of the blockchain system; (II) used to transfer value between participants in the blockchain system; (III) used to access the activities or services of the blockchain system; (IV) used to participate in the decentralized governance system of the blockchain system; (V) used or removed from circulation in whole or in part to pay fees or otherwise verify or validate transactions on the blockchain system; (VI) used as payment or incentive to participants in the blockchain system to engage in the activities of the blockchain system, provide services to other participants in the blockchain system, or otherwise participate in the functionality of the blockchain system; or (VII) used as payment or incentive to participants in the blockchain system to validate transactions, secure the blockchain system, provide computational services, maintain or distribute information, or otherwise participate in the operations of the blockchain system. (iii) Exclusion The term digital commodity does not include any of the following: (I) Security (aa) Any security, other than a note, an investment contract, or a certificate of interest or participation in any profit-sharing agreement. (bb) A note, an investment contract, or a certificate of interest or participation in any profit-sharing agreement that represents or gives the holder an ownership interest or other interest in the revenues, profits, obligations, debts, assets, or assets or debts to be acquired of the issuer of the digital asset or another person (other than a decentralized governance system). (II) Security derivative A digital asset that, based on its terms and other characteristics, is, represents, or is functionally equivalent to an agreement, contract, or transaction that is— (aa) a security future, as defined in section 2a of the Securities Act of 1933; (bb) a security-based swap, as defined in section 2a of the Securities Act of 1933; (cc) a put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), as defined in section 2a of the Securities Act of 1933; or (dd) a put, call, straddle, option, or privilege on any security, as defined in section 2a of the Securities Act of 1933. (III) Permitted payment stablecoin A digital asset that is a permitted payment stablecoin. (IV) Banking deposit (aa) A deposit (as defined under section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 )), regardless of the technology used to record the deposit. (bb) An account (as defined in section 101 of the Federal Credit Union Act ( 12 U.S.C. 1752 )), regardless of the technology used to record the account. (V) Commodity A digital asset that references, represents an interest in, or is functionally equivalent to— (aa) an agricultural commodity; (bb) an excluded commodity, other than a security; or (cc) an exempt commodity, other than the digital commodity itself, as shall be further defined by the Commission. (VI) Commodity derivative A digital asset that, based on its terms and other characteristics, is, represents, or is functionally equivalent to an agreement, contract, or transaction that is— (aa) a contract of sale of a commodity for future delivery or an option thereon; (bb) a security futures product; (cc) a swap; (dd) an agreement, contract, or transaction described in section 2(c)(2)(C)(i) or 2(c)(2)(D)(i); (ee) a commodity option authorized under section 4c; or (ff) a leverage transaction authorized under section 19. (VII) Pooled investment vehicle (aa) In general A digital asset that, based on its terms and other characteristics, is, represents, or is functionally equivalent to— (AA) a commodity pool, as defined in this Act; or (BB) a pooled investment vehicle. (bb) Pooled investment vehicle defined In this subclause, the term pooled investment vehicle means any investment company as defined in section 3(a) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–3(a) ) or any company that would be an investment company under section 3(a) of such Act but for the exclusion provided from that definition by paragraph (1), (7), or (9) of section 3(c) of such Act ( 15 U.S.C. 80a–3(c)(1) , (7), or (9)). (VIII) Good, collectible, and other non-commodity asset A digital asset that has inherent value, utility, or significance beyond its mere existence as a digital asset, including the digital equivalent of a tangible or intangible good, such as— (aa) a work of art, a musical composition, a literary work, or other intellectual property; (bb) collectibles, merchandise, virtual land, and video game assets; (cc) affinity, rewards, or loyalty points, including airline miles or credit card points, that are not primarily speculative in nature; or (dd) rights, licenses, and tickets. (iv) Rule of construction No presumption shall exist that a digital asset is a security, nor shall a digital asset be excluded from being a digital commodity pursuant to clause (iii)(I), solely due to— (I) the digital asset providing voting or economic rights with respect to the blockchain system to which the digital asset relates or the decentralized governance system of the blockchain system; (II) the value of the digital asset having the potential to appreciate or depreciate in response to the efforts, operations, or financial performance of the decentralized governance system of the blockchain system to which the digital asset relates; or (III) the value of the digital asset appreciating or depreciating due to the adoption and use of the blockchain system to which the digital asset relates or the decentralized governance system of the blockchain system. (G) Digital commodity broker (i) In general The term digital commodity broker means any person who, as a regular business— (I) is engaged in— (aa) soliciting or accepting an order from a customer for— (AA) the purchase or sale of a digital commodity; or (BB) an agreement, contract, or transaction described in section 2(c)(2)(D)(iv); and (bb) in conjunction with the activities in item (aa), accepts or maintains control over— (AA) the funds of any customer; or (BB) the execution of any transaction of a customer; (II) is engaged in soliciting or accepting orders from a customer for the purchase or sale of a unit of a digital commodity on or subject to the rules of a registered entity; or (III) is registered with the Commission as a digital commodity broker. (ii) Exceptions The term ‘digital commodity broker’ does not include a person solely because the person— (I) solicits or accepts an order described in clause (i)(I)(aa)(AA) from a customer who is an eligible contract participant; (II) enters into a digital commodity transaction the primary purpose of which is to make, send, receive, or facilitate payments, whether involving a payment service provider or on a peer-to-peer basis; or (III) is a bank (as defined under section 3(a) of the Securities Exchange Act of 1934) engaging in certain banking activities with respect to a digital commodity in the same or a similar manner as a bank is excluded from the definition of a broker under such section, as determined by the Commission. (iii) Further definition The Commission, by rule or regulation, may exclude from the term digital commodity broker any person or class of persons if the Commission determines that the rule or regulation will effectuate the purposes of this Act. (H) Digital commodity dealer (i) In general The term digital commodity dealer means any person who, as a regular business— (I) is, or offers to be a counterparty to a person for the purchase or sale of a digital commodity as a regular business, and in conjunction with the activities, accepts or maintains control over the funds of any counterparty; or (II) is registered with the Commission as a digital commodity dealer. (ii) Exception The term digital commodity dealer does not include a person solely because the person— (I) is or offers to be a counterparty to a person who is an eligible contract participant; (II) enters into a digital commodity transaction with an eligible contract participant; (III) enters into a digital commodity transaction on or through a registered digital commodity exchange, with a registered digital commodity broker, or through a decentralized finance trading protocol; (IV) enters into a digital commodity transaction for the person’s own account, either individually or in a fiduciary capacity, but not as a part of a regular business; (V) enters into a digital commodity transaction the primary purpose of which is to make, send, receive, or facilitate payments, whether involving a payment service provider or on a peer-to-peer basis; or (VI) is a bank (as defined under section 3(a) of the Securities Exchange Act of 1934) engaging in certain banking activities with respect to a digital commodity in the same or a similar manner as a bank is excluded from the definition of a dealer under section 3(a)(5) of such Act, as determined by the Commission. (iii) Further definition The Commission, by rule or regulation, may exclude from the term digital commodity dealer any person or class of persons if the Commission determines that the rule or regulation will effectuate the purposes of this Act. (I) Digital commodity exchange The term digital commodity exchange means a trading facility that offers or seeks to offer a cash or spot market in at least 1 digital commodity. (J) Mixed digital asset transaction The term mixed digital asset transaction means a transaction in which a digital commodity is traded for a security. (K) Terms defined under the Securities Act of 1933 The terms blockchain system , decentralized governance system , digital asset , digital commodity issuer , digital commodity affiliated person , digital commodity related person , end user distribution , mature blockchain system , and permitted payment stablecoin have the meaning given those terms, respectively, under section 2(a) of the Securities Act of 1933 ( 15 U.S.C. 77b(a) ). ; and (5) in paragraph (41) (as so redesignated by paragraph (4) of this subsection)— (A) by striking and at the end of subparagraph (E); (B) by striking the period at the end of subparagraph (F) and inserting ; and ; and (C) by adding at the end the following: (G) a digital commodity exchange registered under section 5i. . (b) Conforming amendments (1) Each of the following provisions of law is amended by striking 1a(18) and inserting 1a(19) : (A) Section 4s(h)(5)(A)(i) of the Commodity Exchange Act ( 7 U.S.C. 6s(h)(5)(A)(i) ). (B) Section 5(e) of the Securities Act of 1933 ( 15 U.S.C. 77e(e) ). (C) Section 6(g)(5)(B) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78f(g)(5)(B) ). (D) Section 15F(h)(5)(A)(i) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78o–10(h)(5)(A)(i) ). (2) 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) . (3) 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) . (4) Each of the following provisions of the Commodity Exchange Act is amended by striking 1a(47)(A)(v) and inserting 1a(48)(A)(v) : (A) Section 4t(b)(1)(C) ( 7 U.S.C. 6t(b)(1)(C) ). (B) Section 5(d)(23) ( 7 U.S.C. 7(d)(23) ). (C) Section 5b(k)(3) ( 7 U.S.C. 7a–1(k)(3) ). (D) Section 5h(f)(10)(A)(iii) ( 7 U.S.C. 7b–3(f)(10)(A)(iii) ). (5) 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) . (6) Section 403 of the Legal Certainty for Bank Products Act of 2000 ( 7 U.S.C. 27a ) is amended— (A) in subsection (a)(2), by striking 1a(47)(A)(v) and inserting 1a(48)(A)(v) ; and (B) in each of subsections (b)(1) and (c)(2), by striking 1a(47) and inserting 1a(48) . (7) Section 712 of the Wall Street Transparency and Accountability Act of 2010 ( 15 U.S.C. 8302 ) is amended— (A) in subsection (a)(8), by striking 1a(47)(D) and inserting 1a(48)(D) ; and (B) in subsection (d)(1), by striking 1a(47)(A)(v) each place it appears and inserting 1a(48)(A)(v) . 104. Definitions under this Act In this Act: (1) Definitions under the Commodity Exchange 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 ). (2) Definitions under the Securities Act of 1933 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 securities laws have the meaning given those terms, respectively, under section 2(a) of the Securities Act of 1933 ( 15 U.S.C. 77b(a) ). (3) Definitions under the Securities Exchange Act of 1934 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) ). 105. Rulemakings (a) Definitions The Commodity Futures Trading Commission and the Securities and Exchange Commission shall jointly issue rules to further define the following terms: (1) The terms— (A) 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; (B) 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 (C) 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. (2) The terms digital commodity , decentralized finance messaging system , and decentralized finance trading protocol as defined under section 1a of the Commodity Exchange Act. (b) Joint rulemaking for mixed digital asset transactions 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. (c) Protection of self-Custody (1) In general A United States individual shall retain the right to— (A) maintain a hardware wallet or software wallet for the purpose of facilitating the individual’s own lawful custody of digital assets; and (B) 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— (i) such other individual or entity is not a financial institution (as defined in section 5312 of title 31, United States Code); and (ii) the transactions do not involve any property or interests in property that are blocked pursuant to, or are otherwise prohibited by, United States sanctions. (2) Application This subsection— (A) applies solely to personal use by individuals; and (B) does not apply to individuals acting in a custodial or fiduciary capacity for others. (3) Rule of construction 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, or the primary Federal payment stablecoin regulators to carry out any enforcement action or special measure authorized under applicable law, including— (A) 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 (B) any other law relating to illicit finance, money laundering, terrorism financing, or United States sanctions. (d) Joint rulemaking, procedures, or guidance for delisting 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 of this Act 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. (e) Joint rules for portfolio margining determinations (1) In general 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, futures contracts, options on futures contracts, swaps, and digital commodities, or any subset thereof, in— (A) a securities account carried by a registered broker or dealer or a security-based swap account carried by a registered security-based swap dealer; (B) a futures or cleared swap account carried by a registered futures commission merchant; (C) a swap account carried by a swap dealer; or (D) 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. (2) Process With respect to a joint order or determination described in paragraph (1), the rules required to be issued pursuant to paragraph (1) shall require— (A) 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; (B) 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; (C) 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; (D) 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 (E) 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. 106. Provisional registration for digital commodity exchanges, brokers, and dealers (a) In general (1) Provisional registration Within 180 days after the date of the enactment of this Act, a person acting as a digital commodity exchange, digital commodity broker, or digital commodity dealer shall file a statement of provisional registration with the Commodity Futures Trading Commission (in this subsection referred to as the Commission ), unless exempted from registration under section 5k of the Commodity Exchange Act, as a— (A) digital commodity exchange, for a person acting as a digital commodity exchange; (B) digital commodity broker, for a person acting as a digital commodity broker; or (C) digital commodity dealer, for a person acting as a digital commodity dealer. (2) Conditions (A) Non-registered entities A person, other than a registered entity, who files a statement of provisional registration under paragraph (1) shall be considered to be in compliance with this section if the person— (i) is a member of a futures association registered under section 17 of the Commodity Exchange Act, and complies with the rules of the association, including the rules of the association pertaining to customer disclosures and protection of customer assets; (ii) submits to the Commission, in the form and manner determined by the Commission, and continues to materially update, as necessary or required by the Commission, a statement of the nature of the digital commodity-related activities the person is pursuing or intends to pursue; (iii) submits to the Commission and continues to materially update the information required by this subsection; (iv) complies with subsection (c) of this section; and (v) pays all fees and penalties imposed on the person under section 410 of this Act. (B) Registered entity (i) In general A registered entity who files a statement of provisional registration under paragraph (1) shall be considered to be in compliance with this section if the person— (I) submits to the Commission and continues to materially update, a statement of the nature of the digital commodity-related activities the person is pursuing or intends to pursue; (II) submits, and continues to materially update, the information required by this subsection and subsection (b); (III) complies with subsection (c); and (IV) pays all fees and penalties imposed on the person under section 410. (ii) Definition In this paragraph, the term registered entity means a person who is designated by the Commodity Futures Trading Commission as a contract market or registered with the Commodity Futures Trading Commission as a swap execution facility. (b) Disclosure of general information A person who files a statement of provisional registration under subsection (a) shall disclose to the Commission, unless already known to the Commission, the following: (1) Management Information concerning the management of the person, including information describing— (A) the ownership and management of the person; (B) the financial condition of the person; (C) affiliated entities; (D) potential conflicts of interest; (E) the address of the person, including— (i) the place of incorporation; (ii) principal place of business; and (iii) an address for service of process; and (F) a list of the States in which the person has operations. (2) Digital commodity operations Information concerning the digital commodity operations of the person, including— (A) a general description of the person’s business and the terms of service for United States customers; (B) a description of the person’s account approval process; (C) any rulebook or other customer order fulfillment rules or procedures; (D) risk management procedures; (E) a description of the product listing process; and (F) policies and procedures for compliance with the Bank Secrecy Act. (c) Requirements A person who files a statement of provisional registration under subsection (a) shall comply with the following requirements: (1) Statutory disqualifications Except to the extent otherwise specifically provided by the Commission or any registered futures association rule, regulation, or order, the person shall not permit an individual who is subject to a statutory disqualification under paragraph (2) or (3) of section 8a of the Commodity Exchange Act or subject to a statutory disqualification as defined in section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) ) to effect or be involved in effecting transactions on behalf of the person, if the person knew, or in the exercise of reasonable care should have known, of the statutory disqualification. (2) Books and records The person shall keep their books and records open to inspection and examination by the Commission and by any registered futures association or national securities association of which the person is a member. (3) Customer disclosures The person shall disclose to customers— (A) information about the material risks and characteristics of the assets listed for trading on the person; (B) information about the legal entity that custodies customer assets and the general manner in which the digital assets of the customer will be and are custodied; (C) information concerning the policies and procedures of the person that are related to the protection of customers of the person, including information regarding any conflicts of interest or material affiliates; and (D) in their disclosure documents, offering documents, and promotional material— (i) in a prominent manner, that they are not registered with or regulated by the Commission; and (ii) the contact information for the whistleblower, complaint, and reparation programs of the Commission. (d) Authority (1) In general (A) Deemed registration A person who remains in compliance with the requirements of this section is deemed to be— (i) a registered digital commodity exchange, pursuant to section 5i, if the person filed a statement of provisional registration as a digital commodity exchange; or (ii) a registered digital commodity broker or dealer, pursuant to section 4u, if the person filed a statement of provisional registration as a digital commodity broker or dealer, as the case may be. (B) Sunset The applicability of subparagraph (A) shall expire— (i) in the case of a digital commodity exchange deemed registered pursuant to subparagraph (A)(i), 180 days after the final effective date of the rulemakings required under 5i; or (ii) in the case of a digital commodity broker or dealer deemed registered pursuant to subparagraph (A)(ii), 180 days after the final effective date of the rulemakings required under 4u. (2) Superiority of Commission-adopted requirements The requirements of the preceding provisions of this section shall not supersede any requirements applicable to registered persons adopted by the Commission under the Commodity Exchange Act. (e) Delisting This section shall not be construed to limit the authority of the Commission and the Securities and Exchange Commission to jointly require a person to delist an asset for trading if the Commission and the Securities and Exchange Commission determine, in accordance with rules, procedures or guidance jointly issued by the Commission and the Securities and Exchange Commission to delist an asset for trading, that the listing is inconsistent with the Commodity Exchange Act, the securities laws (including regulations under those laws), or this Act. (f) Registration A person may not file a statement of provisional registration with the Commission after the Commission has finalized its rules for the registration of digital commodity exchanges, digital commodity brokers, or digital commodity dealers, as appropriate. (g) Rulemaking (1) In general Within 180 days after the date of the enactment of this Act, a registered futures association shall adopt and enforce rules applicable to persons required by subsection (a)(2) to be members of the association. (2) Fees The rules adopted under subparagraph (A) of this paragraph may provide for dues in accordance with section 17(b)(6) of the Commodity Exchange Act. (3) Effect A registered futures association shall submit to the Commission any rule adopted under subparagraph (A) of this paragraph, which shall take effect pursuant to the requirements of section 17(j) of the Commodity Exchange Act. (h) Liability of the filer It shall be unlawful for any person to provide false information in support of a filing under this section if the person knew or reasonably should have known that the information was false. (i) Whistleblower enforcement For purposes of section 23 of the Commodity Exchange Act, the term this Act includes this section. (j) Federal preemption (1) This section shall supersede any State or local law (other than antifraud provisions of general applicability) that regulates the offer or sale of digital assets in the case of a transaction conducted in compliance with this section and conducted on or through a person who files a statement of provisional registration under subsection (a) and complies with the requirements of this section. (2) Notwithstanding any other provision of law, the Commission shall have exclusive jurisdiction over the digital asset activities of a person who— (A) files a statement of provisional registration under subsection (a); and (B) complies with the requirements of this section. 107. Commodity Exchange Act and securities laws savings provisions (a) In general Nothing in this Act shall affect or apply to, or be interpreted to affect or apply to— (1) any agreement, contract, or transaction that is subject to the Commodity Exchange Act as— (A) a contract of sale of a commodity for future delivery or an option on such a contract; (B) a swap; (C) a security futures product; (D) an option authorized under section 4c of such Act; (E) an agreement, contract, or transaction described in section 2(c)(2)(C)(i) of such Act; or (F) a leverage transaction authorized under section 19 of such Act; (2) any agreement, contract, or transaction that is subject to the securities laws as— (A) a security-based swap; (B) a security futures product; or (C) an option on or based on the value of a security; or (3) the activities of any person with respect to any such agreement, c

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