CLARITY Act

a network token shall be treated as a non-security, to the extent materially consistent with the requirements and conditions of this section

establish and maintain an anti-money laundering and countering the financing of terrorism program

require digital asset intermediaries to provide clear and accessible educational materials to the public

(3) Secondary market treatment (A) In general Except as provided in this section (including the limitation under subparagraph (B)), and to the extent materially consistent with the requirements and conditions of this section, the offer, sale, or distribution of a network token by a person shall be treated as not involving the offer, sale, or distribution of a security under— (i) section 2(a)(1); (ii) the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (iii) the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.); (iv) the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.); (v) the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.); and (vi) any applicable requirement of State law that is functionally equivalent to the provisions described in clauses (i) through (v), including any provision of State law that directly or indirectly prohibits, limits, or imposes any conditions on the use, offer, sale, transfer, or disposition of a network token in a manner that is— (I) not substantially similar to prohibitions, limitations, or conditions imposed by that State relating to assets that are commodities under the laws of that State; and (II) inconsistent with this section. (B) Limitation Subparagraph (A) shall not apply if the applicable network token is offered, sold, or distributed pursuant to the offer, sale, or distribution of a security by an ancillary asset originator or underwriter.

An ancillary asset originator shall be subject to the initial and periodic disclosure requirements under subsection (d)

providing custodial, fiduciary, or safekeeping services for digital assets

treat ancillary assets and digital commodities held for customers as customer property governed by title 11, United States Code

establish a CFTC-SEC Micro-Innovation Sandbox to enable eligible firms to test innovative activities within the United States

the Secretary shall adjust the allocation based on the housing growth improvement rate of the eligible recipient

604. Blockchain Regulatory Certainty Act (a) Short title This section may be cited as the Blockchain Regulatory Certainty Act. (b) Definitions In this section: (1) Developer or provider The term developer or provider means any person or business that creates or publishes software to facilitate the creation of, or provide maintenance to, a distributed ledger, or a service associated with a distributed ledger. (2) Distributed ledger service The term distributed ledger service means any information, transaction, or computing service or system that provides or enables access to a distributed ledger system by multiple users, including a service or system that enables users to send, receive, exchange, or store digital assets described by distributed ledger systems. (3) Non-controlling developer or provider The term non-controlling developer or provider means a developer or provider of a distributed ledger 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 to which users are entitled, without the approval, consent, or direction of any third party. (c) Treatment Notwithstanding any other provision of law, a non-controlling developer or provider— (1) shall not be treated as— (A) a money transmitting business, as defined in section 5330 of title 31, United States Code, and the regulations promulgated under that section; or (B) engaged in money transmitting, as defined in section 1960 of title 18, United States Code; and (2) on or after the date of enactment of this Act, shall not be otherwise subject to any registration requirement that is substantially similar to a requirement (as in effect on the day before the date of enactment of this Act) that applies to an entity described in subparagraph (A) or (B) of paragraph (1), solely on the basis of— (A) creating or publishing software to facilitate the creation of, or providing maintenance services to, a distributed ledger or a service associated with a distributed ledger; (B) providing hardware or software to facilitate a customer’s own custody or safekeeping of the digital assets of the customer; or (C) providing infrastructure support to maintain a distributed ledger service. (d) Clarification of treatment Subsection (c) shall not modify the application of section 1960(b)(1)(C) of title 18, United States Code, to any person (referred to in this subsection as the initial person) that acts with the specific intent to transfer, on behalf of another person, funds that are known by the initial person to be— (1) derived from a criminal offense; or (2) intended to be used to promote or support unlawful activity. (e) Rules of construction Nothing in this section may be construed— (1) to affect whether a developer or provider of a distributed ledger service is otherwise subject to classification or treatment as a money transmitter, or as engaged in money transmitting, under applicable Federal or State law, including laws relating to anti-money laundering or countering the financing of terrorism, based on conduct outside the scope of subsection (c); (2) to affect whether a developer or provider is otherwise subject to classification or treatment as a financial institution under subchapter II of chapter 53 of title 31, United States Code, this Act, any amendment made by this Act, or any Act enacted after the date of enactment of this Act, based on conduct outside the scope of subsection (c); (3) to limit or expand any law pertaining to intellectual property; (4) to prevent any State from enforcing any State law that is consistent with this section; or (5) to create a cause of action or impose liability under any State or local law that is inconsistent with this section.

605. Keep Your Coins Act (a) Short title This section may be cited as the Keep Your Coins Act. (b) Definitions In this section: (1) Covered user The term covered user means a United States individual who obtains digital assets to purchase goods or services on behalf of that individual, without regard to the method in which that individual obtained those digital assets. (2) Self-hosted wallet The term self-hosted wallet means a digital interface— (A) that is used to secure and transfer digital assets; and (B) under which the owner of digital assets secured and transferred under subparagraph (A) retains independent control over those digital assets. (c) Self-Custody A Federal agency may not prohibit, restrict, or otherwise impair the ability of a covered user to self-custody digital assets using a self-hosted wallet or other means to conduct transactions for any lawful purpose. (d) Rule of construction Nothing in this section may be construed to limit the authority of the Secretary of the Treasury, the 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— (1) 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 (2) any other law relating to illicit finance, money laundering, terrorism financing, or United States sanctions.

Each financial regulatory agency shall establish, or identify an office, division, or department of the agency that shall serve as, an AI Innovation Lab to enable regulated entities to experiment with AI test projects without unnecessary or unduly burdensome regulation or expectation of enforcement actions, pursuant to the approval of an application under subparagraph (B).

The term digital commodity has the meaning given the term in section 1a of the Commodity Exchange Act (7 U.S.C. 1a), as added by this Act.

certification and supporting materials submitted to the Commodity Futures Trading Commission under section 203(d) of the Digital Commodity Intermediaries Act.

The term ancillary asset means a network token, the value of which is dependent upon the entrepreneurial or managerial efforts of an ancillary asset originator or a related person

A debt or equity interest, or an option on a debt or equity interest, in a person.

shall be considered to be an offer, sale, or distribution of an investment contract involving an ancillary asset, except with respect to a gratuitous distribution.

Subparagraph (A) shall not apply if the applicable network token is offered, sold, or distributed pursuant to the offer, sale, or distribution of a security by an ancillary asset originator or underwriter.

Any asset that is a security under the securities laws shall not cease to be a security solely because the asset is issued, recorded, represented, or transferred using distributed ledger technology or comparable technology.

(7) Network token (A) In general The term network token means a digital commodity that is intrinsically linked to a distributed ledger system and that derives, or is reasonably expected to derive, its value from the use of such distributed ledger system, and, pursuant to the Digital Asset Market Clarity Act and the amendments made by the Digital Asset Market Clarity Act, is treated as a non-security solely for purposes of the securities laws.

(3) Secondary market treatment (A) In general Except as provided in this section (including the limitation under subparagraph (B)), and to the extent materially consistent with the requirements and conditions of this section, the offer, sale, or distribution of a network token by a person shall be treated as not involving the offer, sale, or distribution of a security under— (i) section 2(a)(1); (ii) the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (iii) the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.); (iv) the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.); (v) the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.); and (vi) any applicable requirement of State law that is functionally equivalent to the provisions described in clauses (i) through (v), including any provision of State law that directly or indirectly prohibits, limits, or imposes any conditions on the use, offer, sale, transfer, or disposition of a network token in a manner that is— (I) not substantially similar to prohibitions, limitations, or conditions imposed by that State relating to assets that are commodities under the laws of that State; and (II) inconsistent with this section. (B) Limitation Subparagraph (A) shall not apply if the applicable network token is offered, sold, or distributed pursuant to the offer, sale, or distribution of a security by an ancillary asset originator or underwriter.

(B) Disqualifying financial rights The term network token does not include any of the following: (i) Any security, consistent with the categories of disqualifying financial rights described in clause (ii). (ii) An investment contract or a certificate of interest or participation in any profit-sharing agreement that represents, gives the holder, or is substantially economically or functionally equivalent to, any of the following, as the Commission shall establish by rule: (I) A debt or equity interest, or an option on a debt or equity interest, in a person. (II) Liquidation rights with respect to a person. (III) An entitlement to, or a reasonable expectation of, an interest, dividend, or other payment, or direct or indirect transfer of value, from a person (other than a decentralized governance system). (IV) An express or implied financial interest in (including a limited partnership interest or interest in intellectual property of), or provided by, a person (other than a decentralized governance system). (iii) Any interest that is, represents, or is functionally equivalent to an interest in an investment company or a company (as defined in section 2 of the Investment Company Act of 1940 (15 U.S.C. 80a–2)) that would be an investment company under section 3(a) of that Act (15 U.S.C. 80a–3(a)) but for the exclusions provided from that definition by section 3(c) of that Act (15 U.S.C. 80a–3(c)). (iv) Any interest that is, represents, or is functionally equivalent to an interest in any entity or person that is not an investment company but holds or will hold assets other than securities.

(a) In general Not later than 1 year after the date of enactment of this Act, the Commission shall adopt rules that provide that— (1) a network token shall not be considered as providing a disqualifying financial right under section 4B(a)(7)(B) of the Securities Act of 1933, as added by this Act, if the market value of the network token is primarily derived, or is reasonably expected to be primarily derived, from a distributed ledger system or from the broader adoption and use of such a system, including where— (A) the mechanisms of the distributed ledger system collect, receive, accrue, or distribute consideration from the functioning of the distributed ledger system; (B) the network token provides governance capabilities with respect to a distributed ledger system or a decentralized governance system; (C) the value of the network token appreciates or depreciates due to the use of, or in response to the efforts, operations, or financial performance of, the distributed ledger system to which the network token relates or its decentralized governance system; or (D) for a network token that meets the definition of an ancillary asset, the value of the network token appreciates or depreciates due to the efforts of the ancillary asset originator or related person; and (2) participants in offers or sales of network tokens providing financial interests described in paragraph (1) shall not be precluded from relying on the exemption from registration under section 4B(b) of the Securities Act of 1933, as added by this Act.

semiannually thereafter.

were $5,000,000 or less (adjusted for inflation) during the 12-month period immediately following the date of the first such offer, sale, or distribution

the average daily aggregate value of trading in the applicable ancillary asset in all spot markets open to the public in the United States for which trading volume is generally available is $5,000,000 or less (adjusted for inflation)

beginning on the date that is 1 year after that effective date.

a certification is effective under section 104(d) of the Lummis-Gillibrand Responsible Financial Innovation Act of 2026

The furnishing of disclosures pursuant to subclause (II) shall restart the schedule for periodic disclosures under paragraph (1).

(4) Digital asset intermediaries (A) In general Other than as provided under subparagraph (B), with respect to an ancillary asset that is listed for trading on a digital asset intermediary, that digital asset intermediary may, in lieu of the applicable ancillary asset originator, satisfy the requirements of subsection (d) in accordance with such rules as the Commission shall jointly adopt with the Commodity Futures Trading Commission. (B) Allocation of disclosure responsibility (i) Originator filings A digital asset intermediary may not satisfy the requirements of subsection (d) in lieu of the applicable ancillary asset originator, if— (I) the ancillary asset originator is incorporated, organized, or otherwise registered under the laws of the United States or of any State; and (II) the applicable ancillary asset is— (aa) offered, sold, or distributed after the effective date of the Digital Asset Market Clarity Act pursuant to— (AA) an investment contract that is offered, sold, or distributed pursuant to Regulation Crypto, as adopted pursuant to section 103 of the Lummis-Gillibrand Responsible Financial Innovation Act of 2026; (BB) the filing of an effective registration statement under this Act (other than a registration statement on the form described in section 239.31 or 239.33 of title 17, Code of Federal Regulations, or the successor to either such form); (CC) the filing of an offering statement described in section 3(b)(2); or (DD) an offering conducted pursuant to section 4(a)(6); or (bb) first offered or sold after the effective date of the Digital Asset Market Clarity Act in a transaction described in paragraph (1)(A)(ii). (ii) Commission determination (I) In general If, after notice, comment, and the opportunity for a hearing, the Commission determines that it is in the public interest or necessary for the protection of investors, including with respect to an ancillary asset originator incorporated or organized in a foreign jurisdiction, the Commission may require an ancillary asset originator, after a transition period, to file the disclosures required under subsection (d). (II) Extraterritorial effect Subclause (I) shall apply extraterritorially.

(3) Termination of requirements (A) Termination The obligation of an ancillary asset originator to provide disclosures under paragraph (1) shall terminate on the date that a certification becomes effective under subparagraph (B), including through an approval or deemed approval. (B) Certification (i) In general A certification covered party may submit to the Commission a certification, based on the knowledge of the certification covered party after due inquiry and supported by reasonable evidence, that states— (I) that— (aa) during the 180-day period preceding the date on which the certification covered party submits the certification, and as of the date of submission, no certification covered party has engaged in more than a nominal level of entrepreneurial or managerial efforts (as defined by the Commission by rule), which shall not, for the purposes of this clause, include providing administrative services alone; (bb) any efforts described in item (aa) were not a primary factor in determining the value of the related ancillary asset (which may include that any essential promises made by the certification covered party have been fulfilled); and (cc) a certification is effective under section 104(d) of the Lummis-Gillibrand Responsible Financial Innovation Act of 2026; (II) in good faith that the certification covered party does not reasonably expect there to be any efforts that would render the certification covered party unable to provide a new certification following the date of the certification; and (III) that substantially all material information that is reasonably expected to contribute to the value of the ancillary assets offered, sold, or distributed to the public by the ancillary asset originator is, and is reasonably expected to remain, available to the public.

$50,000,000 in gross proceeds per calendar year for a period of not longer than 4 years; or (ii) 10 percent of the total dollar value of those ancillary assets that are outstanding

An ancillary asset originator may not raise more than $200,000,000 in total gross proceeds in reliance on the rules adopted under subsection (a).

a company that is not organized under, and subject to, the laws of a State or territory of the United States or the District of Columbia

A gratuitous distribution, by itself, shall be presumed to not constitute an offer, sale, or distribution of a security

(b) Exemption for certain transactions involving ancillary assets (1) Exemption (A) In general Rules adopted by the Commission under this section shall provide that the registration requirements of the Securities Act of 1933 (15 U.S.C. 77a et seq.) shall not apply to an offer, sale, or distribution of an investment contract involving an ancillary asset, if the offer, sale, or distribution does not exceed the greater of— (i) $50,000,000 in gross proceeds per calendar year for a period of not longer than 4 years; or (ii) 10 percent of the total dollar value of those ancillary assets that are outstanding, as of the date of that offer, sale, or distribution. (B) Continued application of certain provisions Sections 12(a)(2) and 17 of the Securities Act of 1933 (15 U.S.C. 77l(a)(2), 77q) shall apply with respect to an offer, sale, or distribution of an investment contract involving an ancillary asset that is described in subparagraph (A). (2) Limitation An ancillary asset originator may not raise more than $200,000,000 in total gross proceeds in reliance on the rules adopted under subsection (a). (3) Review and adjustment for inflation (A) In general Not later than 2 years after the date of enactment of this Act, and every 2 years thereafter, the Commission shall— (i) review the amounts described in paragraphs (1)(A)(i) and (2); (ii) adjust the amounts described in paragraphs (1)(A)(i) and (2) to account for inflation; and (iii) increase the amounts described in paragraphs (1)(A)(i) and (2) as the Commission determines appropriate, if that action would be in the public interest and consistent with the protection of investors. (B) Report If the Commission, after conducting a review under subparagraph (A), determines not to increase the amount described in paragraph (1)(A)(i) or (2) (other than to adjust that amount for inflation, as required under subparagraph (A)(ii) of this paragraph), the Commission shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report detailing the reasons that the Commission did not increase that amount. (c) Conditions for exemption The following conditions shall apply to the exemption provided under subsection (b): (1) Initial disclosures Not later than 30 days before the date on which the applicable ancillary asset originator, any affiliate of the ancillary asset originator, or any underwriter of an investment contract, offers, sells, or distributes an ancillary asset in reliance on the rules adopted under subsection (a), the ancillary asset originator shall furnish to the Commission the disclosures required under section 4B(d) of the Securities Act of 1933, as added by this Act, subject to the periodic semiannual disclosure requirements of that section. (2) Coordinated control If the applicable ancillary asset is reliant on a distributed ledger system that, together with that ancillary asset, is subject to coordinated control, including by related persons, the restrictions on disposition under section 104 shall apply. (3) Criteria The applicable ancillary asset originator may not be— (A) a company that is not organized under, and subject to, the laws of a State or territory of the United States or the District of Columbia; (B) a development-stage company that either— (i) has no specific business plan or purpose; or (ii) has indicated that the business plan of the company is to merge with or acquire an unidentified company; (C) an investment company (as defined in section 3(a) of the Investment Company Act of 1940 (15 U.S.C. 80a–3(a))) or a company (as defined in section 2 of that Act (15 U.S.C. 80a–2)) that would be an investment company under section 3(a) of that Act (15 U.S.C. 80a–3(a)) but for the exclusions provided from that definition by section 3(c) of that Act (15 U.S.C. 80a–3(c)), provided that, solely for the purposes of evaluating eligibility to rely on the exemption provided under subsection (b), an ancillary asset originator shall not be deemed to be an investment company solely by virtue of investing, reinvesting, owning, holding, or trading ancillary assets, including ancillary assets offered for sale by the ancillary asset originator; (D) a person issuing fractional undivided interests in other commodities; (E) a person that is or has been subject to any order of the Commission entered pursuant to section 12(j) of the Securities Exchange Act of 1934 (15 U.S.C. 78l(j)) after the date of enactment of this Act and during the 5-year period preceding the offer and sale; (F) a person that is or has been disqualified pursuant to section 230.506(d) of title 17, Code of Federal Regulations, or any successor regulation, unless waived by order of the Commission; (G) a person that is or has been disqualified pursuant to section 230.251 through 230.263 of title 17, Code of Federal Regulations (commonly referred to as Regulation A), or any successor regulations, unless waived by order of the Commission; or (H) a person convicted of a felony offense involving insider trading, embezzlement, cybercrime, money laundering, financing of terrorism, or financial fraud, within the last 10 years. (4) Furnishing notice of reliance The applicable ancillary asset originator shall electronically furnish to the Commission a notice of reliance on the rules adopted under subsection (a) not fewer than 30 days before the date on which the ancillary asset originator first offers, sells, or distributes an ancillary asset in reliance on those rules, which shall contain the following information: (A) The name of the ancillary asset originator. (B) A statement by a person duly authorized by the ancillary asset originator that the conditions of those rules are satisfied. (C) The website where the summary documents of the ancillary asset originator, if any, may be found and made available for public consumption. (D) An email address at which the ancillary asset originator may be contacted. (5) Public availability The Commission shall require that the disclosures furnished to the Commission under section 4B(d) of the Securities Act of 1933, as added by this Act, be made publicly available in a manner that provides timely and continuing access. (6) Form and manner The disclosures furnished to the Commission under section 4B(d) of the Securities Act of 1933, as added by this Act, shall be prepared, furnished, and made public in the form and manner prescribed by the Commission, including through the use of electronic furnishing, web posting, machine-readable formats, and plain-English legends, as the Commission determines necessary or appropriate in the public interest or for the protection of investors.

(5) Gratuitous distribution (A) In general The term gratuitous distribution— (i) means a distribution of a network token, including a distribution effected by an agent or other service provider engaged solely in an administrative or ministerial capacity, in exchange for not more than a nominal value of cash, property, services, or other assets in a broad, equitable, and non-discretionary manner; and (ii) includes, without limitation, the mechanisms and methods of distribution described in subparagraph (B). (B) Mechanisms and methods of distribution The mechanisms and methods of distribution described in this subparagraph are the following: (i) Self staking The distribution of a unit of a network token, as a programmatic result of validating or staking activity for a distributed ledger system’s consensus mechanism, including the staking of a network token, and the operation of a node, validator, or substantially similar software for such activity where the owner of the staked network token and the operator of the node, validator, or substantially similar software are the same person or entity. (ii) Self-custodial staking with a third party The distribution of a unit of a network token, as a programmatic result of validating or staking activity for a distributed ledger system’s consensus mechanism, including the staking of a network token, and the operation of a node, validator, or substantially similar software for such activity in which— (I) the owner of the staked network token, and operator of the node, validator, or substantially similar software for such activity are different persons or entities; and (II) the operator of the node, validator, or substantially similar software does not maintain custody or control of the staked network token. (iii) Liquid staking The distribution of network tokens, as the issuance, transfer, or redemption of liquid staking tokens representing a pro rata interest in staked network tokens, and their associated rewards, provided that such tokens are issued as administrative or ministerial receipts and are not providing discretionary management authority. (iv) Custodial and ancillary staking services (I) In general Subject to the rules issued pursuant to subclause (II), the provision of custodial or ancillary staking services enabling the owner of a network token to participate in validating or staking activity for a distributed ledger system’s consensus mechanism that results in the programmatic distribution of a unit of a network token, provided that such custodial or ancillary services are exclusively administrative or ministerial in nature. (II) Rulemaking to define the custodial and ancillary staking services The Commission shall issue rules defining the custodial and ancillary staking services described in subclause (I) that are exclusively administrative or ministerial in nature, consistent with what is necessary or appropriate for the public interest or for the protection of investors. (v) Programmatic and automated distributions The automated, programmatic, protocol-defined, or rules-based distribution of network tokens achieved through the transparent functioning of a distributed ledger system, a distributed ledger, or distributed ledger applications, in which— (I) distributions occur pursuant to public, transparent, rules-based parameters that are publicly available and are accessible on a permissionless basis, without individualized or real-time negotiation with recipients; (II) recipients receive network tokens as a direct, programmatic result of objective, verifiable network participation, consumption, or contribution, including consensus participation, data availability, bandwidth, governance, or use and interaction with the protocol or application; (III) the number of network tokens received is proportionate to the verifiable service, usage, or contribution; (IV) any expected utility or value of the network tokens arises primarily from decentralized network participation and market forces, rather than the discretionary actions of any single person or affiliated group; and (V) no person or group has unilateral authority to alter, restrict, or direct the issuance parameters or distribution mechanisms of the distributed ledger system, and any modification occurs only through a decentralized governance system. (vi) Technology-neutral clause The distribution employing a mechanism, protocol, or technology not specifically described in clauses (i) through (v), without regard to whether such mechanism, protocol, or technology is in existence at the time of enactment of this section, and without regard to terminology or underlying technical framework, provided such distribution meets the requirements described in subparagraph (A)(i).

the holder of the covered token has held the units for not less than 12 months

the holder of the covered token has held the units for not less than 6 months

Any profit realized by a related person from the sale of an ancillary asset in violation of the restrictions under subsection (c) shall inure to, and be recoverable by, the holders of the ancillary asset

the existence or termination of coordinated control shall be determined independently of whether entrepreneurial or managerial efforts

a decentralized governance system shall not be deemed to be a person or a group of persons acting under common control.

(c) Special restrictions on disposition The Commission shall adopt rules that provide that, with respect to transactions involving an ancillary asset for which disclosures are required pursuant to section 4B(d) of the Securities Act of 1933, as added by this Act, when a sale of that ancillary asset is made by a related person, the following restrictions on that sale shall apply: (1) Sales prior to certification If the covered token was acquired after the effective date of this Act and principally relies on a distributed ledger system, the covered token may be sold by a related person before that distributed ledger system is certified as not subject to coordinated control, pursuant to subsection (d), if— (A) with respect to that distributed ledger system, the disclosures required pursuant to section 4B(d) of the Securities Act of 1933, as added by this Act, have been furnished; (B) the holder of the covered token has held the units for not less than 12 months; and (C) the amount of covered tokens sold in any 12-month period by the related person is— (i) not greater than an amount to be determined by the Commission pursuant to notice and comment rulemaking not later than 360 days after the date of enactment of this Act, which rulemaking shall consider what is necessary or appropriate in the public interest, including, among other things, the protection of investors, whether the action will promote efficiency, competition, and capital formation, and how to foster the development of distributed ledger systems that are not subject to coordinated control; and (ii) in no case equal to or greater than the amount determined by the Commission pursuant to the rulemaking described in paragraph (2)(C). (2) Sales after certification If the covered token was acquired after the effective date of this Act and principally relies on a distributed ledger system that is certified as not subject to coordinated control pursuant to subsection (d), the covered token may be sold by a related person, if— (A) with respect to that distributed ledger system, the disclosures required pursuant to section 4B(d) of the Securities Act of 1933, as added by this Act, have been furnished; (B) the holder of the covered token has held the units for not less than 6 months; and (C) the amount of covered tokens sold in any 12-month period by the related person is not greater than an amount to be determined by the Commission pursuant to rulemaking that shall not be less than 10 percent of the total amount of outstanding units of such ancillary assets. (3) Sales of pre-existing covered tokens If the covered token was acquired before the effective date of this Act and principally relies on a distributed ledger system, the covered token may be sold by a related person if— (A) in the case that the distributed ledger system has not been certified as not subject to coordinated control pursuant to subsection (d)— (i) the disclosures required pursuant to section 4B(d) of the Securities Act of 1933, as added by this Act, have been furnished; and (ii) the holder of the covered token has held the units for not less than 12 months; and (B) in the case that the distributed ledger system has been certified as not subject to coordinated control pursuant to subsection (d), the holder of the covered token has held the units for not less than 6 months. (4) Limitations on transactions by distributed ledger control persons If the holder of an ancillary asset that principally relies on a distributed ledger system that has been certified as not subject to coordinated control is a distributed ledger control person with respect to that distributed ledger system, that control person may resell that ancillary asset if— (A) that control person furnishes notice to the Commission, in a form and manner determined by the Commission, that the person has or intends to obtain an authority described in subparagraph (B) with respect to the distributed ledger system; (B) that distributed ledger control person furnishes disclosures to the Commission, in a form and manner determined by the Commission, describing the material activities, as determined by the Commission, of the control person; (C) with respect to that distributed ledger system, disclosures have been furnished pursuant to section 4B(d) of the Securities Act of 1933, as added by this Act; and (D) that control person has satisfied such other requirements applicable to that control person that may be established by the Commission to prevent manipulation or distortion of the value of the ancillary asset, including resale restrictions consistent with those applied to related persons that are not control persons.

(f) Exemption from disposition restrictions The Commission shall adopt rules that provide for the following exemptions from, or waivers to, disposition restrictions described in subsection (c): (1) Material hardship exemption (A) In general Subject to subparagraph (B), the Commission shall adopt rules and procedures to exempt parties from related person restrictions with respect to an ancillary asset where those restrictions conflict with an obligation or requirement arising from one of the following material hardships on a related person with respect to the ancillary asset or the ancillary asset originator: (i) The death of the related person. (ii) The bankruptcy or insolvency of the related person. (iii) The dissolution, merger, or acquisition of a corporate person. (iv) Tax liability relating to the receipt of the applicable ancillary asset. (v) Such other material hardships as may be designated by the Commission. (B) Requirements The rules and procedures adopted under subparagraph (A) shall be designed to mitigate the risk that parties may seek to structure holdings to evade resale restrictions and exempt or waive the application of resale restrictions only to the extent necessary to address the identified material hardship. (2) Liquidity provision exemption The Commission shall adopt rules to exempt from disposition restrictions parties buying or selling an ancillary asset through regular two-sided bidding and offering for the purposes of providing market liquidity, provided that such activities are not undertaken for the purpose of evading the requirements of this section. (3) Agency exemption The Commission shall adopt rules that exempt a party acting as a custodian, trading platform, broker, dealer or other agent from being treated as the owner of customer or client assets or from being restricted in facilitating sales on behalf of a customer or client if the agent is otherwise determined to be a related person. (4) Exchange-traded product and passive fund exemption The Commission shall adopt rules to exempt from disposition restrictions, as appropriate— (A) exchange-traded products, the shares of which are created and redeemed by authorized participants and registered with the Commission; and (B) passive pooled investment vehicles, whether or not the shares of which are registered with the Commission.

including to facilitate the utilization of distributed ledger records.

A network token, as defined in section 4B(a), shall be treated as a covered security.

contrary to an express classification or treatment provided by this Act or an amendment made by this Act

nothing in this section may be construed to apply the securities laws, or any regulation issued under the securities laws (including any rule adopted under subsection (c)), to any secondary market transaction in an ancillary asset that is not otherwise a transaction in a security, security-based swap, or security-based swap agreement.

108. Modernization of securities regulations for digital asset activities (a) Tailoring of existing requirements The Commission shall— (1) amend, rescind, replace, or supplement by rule, order, guidance, exemptive relief, or any other appropriate action (provided such action is consistent with chapter 5 of title 5, United States Code, and other applicable law) each regulation, form, interpretive statement, or other requirement within the jurisdiction of the Commission that is not otherwise amended by this Act (or required to be amended because of a provision of this Act or an amendment made by this Act), to the extent that such provision applies to any digital asset activity, including any activity involving a security that is issued, recorded, or transferred using distributed ledger technology, to the extent that the provision is outdated, unnecessary, or unduly burdensome in light of the unique technological characteristics of digital assets or substantially similar technology, which may include regulatory provisions governing— (A) customer protection, including custody of digital assets or substantially similar technology; (B) transfer agent rules; (C) books and records, or recordkeeping requirements; (D) clearance and settlement rules; (E) broker-dealer, alternative trading system, and exchange rules; (F) issuer disclosure and ongoing reporting requirements tailored to digital asset securities or substantially similar technology involving securities; and (G) the use of vaults, digital asset receipts, or receipts involving substantially similar technology, vault tokens, or liquidity provider tokens; and (2) in imposing future obligations as those obligations relate to digital assets or substantially similar technology, do so in a manner consistent with the requirements described in paragraph (1). (b) Rule of construction Nothing in this section may be construed to limit the authority of the Commission to pursue fraud, manipulation, or deceptive practices involving digital assets or substantially similar technology. (c) Use of existing authority When considering, proposing, adopting, or engaging in any rule or program or developing new rules or programs, including those mandated or authorized under this Act, or any amendment made by this Act, the activities of the Commission (which may include the solicitation of data and other input from investors, regulated entities, and market participants or the representatives of any of those persons) shall be considered actions taken under subsection (e) of section 19 of the Securities Act of 1933 (15 U.S.C. 77s) and shall be subject to subsection (f) of that section. (d) Continued applicability of State consumer protection laws Except as expressly provided by this Act, or an amendment made by this Act, nothing in this Act (or in any such amendment) shall preempt any State consumer protection law, including common law, or a remedy available under any such law. (e) Preemption for exemptions and digital asset activities under the securities act Section 18 of the Securities Act of 1933 (15 U.S.C. 77r) is amended— (1) in subsection (b)— (A) in paragraph (3)— (i) in the paragraph heading, by inserting in qualified transactions or after sales; (ii) in the first sentence, by inserting in a qualified transaction or after the security; and (iii) in the second sentence— (I) by striking term qualified purchaser and inserting terms qualified transaction and qualified purchaser; (II) by inserting and categories of transactions, including secondary transactions, after securities; and (III) by inserting and with due regard to the facilitation of capital formation and the promotion of innovation before the period at the end; and (B) in paragraph (4)— (i) in subparagraph (A), by inserting or, if the issuer is not required to file such reports, where the Commission otherwise determines, consistent with the public interest and the protection of investors and with due regard to the facilitation of capital formation and the promotion of innovation before the semicolon at the end; (ii) in subparagraph (D)(ii), by inserting in a qualified transaction or after offered or sold; (iii) in subparagraph (F), by striking or at the end; (iv) in subparagraph (G), by striking the period at the end and inserting ; or; and (v) by adding at the end the following: (H) Commission rules or regulations issued under section 28, except that this subparagraph does not apply to rules or regulations adopted before the date of enactment of this subparagraph. . (f) Exempting network tokens from State securities laws (1) In general Section 18(b) of the Securities Act of 1933 (15 U.S.C. 77r(b)) is amended by adding at the end the following: (5) Exemption in connection with network tokens A network token, as defined in section 4B(a), shall be treated as a covered security. . (2) Rule of construction Nothing in this section, section 4B of the Securities Act of 1933 (as added by this Act), or the amendments made by this section may be construed to limit the authority (as of the day before the date of enactment of this Act) 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. (g) Preemption for ancillary asset activities under the Securities Act of 1933 Section 18(b) of the Securities Act of 1933 (15 U.S.C. 77r(b)), as amended by subsection (f) is amended by adding at the end the following: (6) Limitations on state law regarding ancillary assets (A) Definitions In this paragraph, the term ancillary asset has the meaning given the term in section 4B(a). (B) Exemption in connection with ancillary assets An ancillary asset offered, sold, or distributed in reliance on Regulation Crypto, as adopted under section 103 of the Lummis-Gillibrand Responsible Financial Innovation Act of 2026, shall be treated as a covered security. . (h) Preservation of Regulation Best Interest (1) In general Subject to paragraph (2), nothing in this Act, any amendment made by this Act, or any rule issued under this Act or pursuant to any such amendment may be construed to limit, preempt, or otherwise affect the obligations of a broker or dealer registered with the Commission under section 15 of the Securities Exchange Act of 1934 (15 U.S.C. 78o) or section 240.15l–1 of title 17, Code of Federal Regulations (commonly known as Regulation Best Interest), or any successor regulation. (2) Application Paragraph (1) shall not apply with respect to any person registered with the Commodity Futures Trading Commission. (i) Preservation of investment adviser fiduciary duties Nothing in this Act, any amendment made by this Act, or any rule issued under this Act or pursuant to any such amendment may be construed to limit, preempt, or otherwise affect the fiduciary duty that an investment adviser (as defined in section 202 of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2)) owes to a client under section 206 of the Investment Advisers Act of 1940 (15 U.S.C. 80b–6) or any other provision of Federal or State law, including in connection with investment advice regarding a digital commodity.

111. Investor and consumer protection enforcement (a) Preservation of certain rights, authorities, laws, and obligations Subject to subsection (b), nothing in this Act, any amendment made by this Act, or any rule, requirement, or regulation promulgated pursuant to this Act may be construed to prohibit, limit, impair, or otherwise affect— (1) any person from bringing a civil action to enforce any private right of action for fraud, deceit, manipulation, or deceptive practices, to the extent that such private right of action is expressly provided for in this Act or an amendment made by this Act, or is otherwise available under Federal law, including with respect to conduct involving an ancillary asset, network token, digital commodity, or any transaction, disclosure, certification, notice, report, statement, communication, or other document involving any such asset; (2) except as expressly provided in this Act or an amendment made by this Act, any Federal or State regulator, acting within the scope of authority otherwise provided by law, from bringing an administrative or civil enforcement action under— (A) the Commodity Exchange Act (7 U.S.C. 1 et seq.), including the provisions of that Act that are added by this Act and relate to digital commodities and the jurisdiction of the Commodity Futures Trading Commission; (B) the Securities Act of 1933 (15 U.S.C. 77a et seq.), as amended by this Act, the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), as amended by this Act, or the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.); (C) State commodities laws, subject to the provisions of this Act, and the amendments made by this Act, relating to the jurisdiction of the Commodity Futures Trading Commission; or (D) section 18(c)(1) of the Securities Act of 1933 (15 U.S.C. 77r(c)(1)), or any functionally equivalent anti-fraud or anti-manipulation provision of State securities law (including any State securities law with respect to a security or a transaction in a security to the extent enforcement of that anti-fraud or anti-manipulation provision of State securities law is not preempted by section 18 of the Securities Act of 1933 (15 U.S.C. 77r)), with respect to an investment contract involving an ancillary asset, or other transaction involving any such asset, for which this Act or an amendment made by this Act expressly preserves or provides for the application of anti-fraud or anti-manipulation authority; (3) except as expressly provided in this Act or an amendment made by this Act, any generally applicable State law, including a law relating to fraud, deceit, unfair or deceptive acts or practices, consumer protection, banking, payments, property, contracts, criminal law, or unlawful conduct or practices, or the remedies available under any such law, with respect to conduct involving a digital asset, ancillary asset, network token, or digital commodity, or any transaction, activity, person, or service involving any such asset, provided that such law does not impose any licensing, registration, qualification, or other requirement that is expressly preempted, or otherwise expressly limited, by this Act or an amendment made by this Act; (4) the fiduciary obligations of an investment adviser, as defined in section 202(a) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(a)), under section 206 of that Act (15 U.S.C. 80b–6), any rule or regulation issued under such section 206, or any other provision of Federal or State law, including in connection with investment advice regarding a digital asset, ancillary asset, network token, digital commodity, or substantially similar technology; or (5) any right or remedy under Federal consumer financial law, including under section 1011 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5491) or the Federal Trade Commission Act (15 U.S.C. 41 et seq.), or authority under Federal consumer financial law with respect to any person, subject to the limitations under section 1027 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5517), including subsections (i) and (j) of such section 1027. (b) Limitations and rules of construction Nothing in subsection (a) may be construed to— (1) preserve, create, or authorize any Federal or State registration, licensing, qualification, or merit-review requirement under State law with respect to an ancillary asset, network token, digital commodity, transaction, person, or activity, to the extent that such requirement is preempted or otherwise limited by this Act or an amendment made by this Act; (2) create, preserve, or authorize any private right of action under Federal or State law with respect to an ancillary asset, network token, digital commodity, or transaction involving any such asset; (3) permit any claim, action, proceeding, requirement, liability, obligation, or remedy to be brought, maintained, imposed, or enforced under Federal or State securities or commodities law to the extent that such claim, action, proceeding, requirement, liability, obligation, or remedy depends upon, is predicated on, or would require a determination that an ancillary asset, network token, digital commodity, or any transaction, activity, person, or service involving any such asset has a status or characterization under Federal or State securities or commodities law that is contrary to an express classification or treatment provided by this Act or an amendment made by this Act; (4) expand, contract, or otherwise alter the jurisdiction, exclusive or otherwise, of the Commission, the Commodity Futures Trading Commission, or any State regulator; (5) limit, impair, or otherwise affect the treatment of any asset, transaction, or interest as a covered security for purposes of section 18 of the Securities Act of 1933 (15 U.S.C. 77r); or (6) create any new private right of action under Federal or State law, except that nothing in this paragraph may be construed to limit, impair, or otherwise affect any private right of action preserved under subsection (a)(1), expressly provided in this Act or an amendment made by this Act, or otherwise available under Federal law.

201. Treatment under the Bank Secrecy Act and sanctions laws (a) Amendment Section 5312(c)(1)(A) of title 31, United States Code, is amended— (1) by inserting digital commodity broker, digital commodity dealer, after futures commission merchant,; and (2) by inserting before the period the following: and any digital commodity exchange registered, or required to register, under that Act that permits direct customer access. (b) Bank secrecy act requirements (1) Regulations The Secretary of the Treasury, acting through the Director of the Financial Crimes Enforcement Network, and in consultation with the 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— (A) establish and maintain an anti-money laundering and countering the financing of terrorism program, which shall include— (i) an appropriate risk assessment; (ii) the development of internal policies, procedures, and controls; (iii) the designation of a compliance officer; (iv) an ongoing employee training program; and (v) an independent audit function to test such program; (B) retain appropriate records of transactions; (C) monitor and report suspicious activity, which may include use of appropriate distributed ledger analytics; and (D) maintain an effective customer identification program to identify and verify account holders and carry out appropriate customer due diligence. (2) Compliance with sanctions 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. (c) Sense of Congress It is the sense of Congress that nothing in this section shall limit the applicability of any law imposing or authorizing the imposition of economic sanctions by the United States.

202. Digital asset examination standards (a) Definitions In this section: (1) Federal functional regulator The term Federal functional regulator has the meaning given the term in section 509 of the Gramm-Leach-Bliley Act (15 U.S.C. 6809). (2) Financial institution The term financial institution has the meaning given the term in section 5312(a)(2) of title 31, United States Code. (b) Examination and review The Secretary of the Treasury, in consultation with Federal functional regulators, shall establish, coordinated to the extent feasible, risk-based examination standards to assess financial institutions involved in the digital asset sector for compliance with anti-money laundering and countering the financing of terrorism requirements under the Bank Secrecy Act.

203. Preventing Illicit Finance Through Partnership Act (a) Short title This section may be cited as the Preventing Illicit Finance Through Partnership Act. (b) Definitions In this section: (1) Bank The term bank has the meaning given the term in section 1010.100 of title 31, Code of Federal Regulations (or any corresponding similar regulation). (2) Certified or recognized information-sharing or interdiction network The term certified or recognized information-sharing or interdiction network means a real-time, secure, public-private mechanism that— (A) facilitates the detection, interdiction, and prevention of illicit finance violations through rapid information exchange between government and regulated entities; and (B) is— (i) certified by the Secretary of the Treasury for the purpose of supporting interdiction and investigative actions consistent with law enforcement or regulatory authorities; or (ii) recognized by the Secretary of the Treasury as an existing (as of the day before the date of enactment of this Act), effective public-private partnership network that meets standards for security, accountability, and participation that are equivalent to the standards that would be required by the Secretary of the Treasury for certification under clause (i). (3) Covered agency The term covered agency means— (A) the Department of Justice, including the Federal Bureau of Investigation and the Drug Enforcement Administration; (B) the Department of the Treasury, including the Financial Crimes Enforcement Network, the Internal Revenue Service, and the Office of Foreign Assets Control; and (C) the Department of Homeland Security. (4) Designated private sector entity The term designated private sector entity means a private sector entity designated under subsection (d). (5) Director The term Director means the Director of the Financial Crimes Enforcement Network. (6) Illicit finance violation The term illicit finance violation means the illicit use of digital assets. (7) Illicit use The term illicit use includes fraud, money laundering, terrorist financing, the purchase and sale of illicit goods, trafficking of fentanyl (including fentanyl precursors and trade in other illicit drugs), sanctions evasion, theft of funds, funding of illegal activities, transactions relating to child sexual abuse material or elder fraud abuse, and any other financial transaction involving the proceeds of specified unlawful activity, as defined in section 1956(c) of title 18, United States Code. (8) Money services business The term money services business has the meaning given the term in section 1010.100 of title 31, Code of Federal Regulations (or any corresponding similar regulation). (c) Establishment of program The Secretary of the Treasury shall establish a pilot program under which covered agencies and designated private sector entities securely share information focused on potential illicit finance violations and threats and emerging risks relating to illicit finance violations. (d) Designation of private sector entities (1) Required action (A) Initial companies Not later than 90 days after the date of enactment of this Act, the Director and the Secretary shall designate 10 private sector entities that are money services businesses, 10 private sector entities that are digital commodity brokers, digital commodity dealers, or digital commodity exchanges, and 10 private sector entities that are banks to participate in the pilot program established under subsection (c), if such entities agree and volunteer to participate in the program. (B) Biannual review Not less frequently than once every 6 months, the Director shall review and, as appropriate, replace the private sector entities designated under this paragraph. (C) Rule of construction Nothing in this section may be construed as— (i) requiring an entity to participate in the pilot program established under this section; or (ii) enabling the Director to select an entity to participate in the pilot program without the consent of such entity. (2) Optional designation In addition to the 30 private sector entities designated under paragraph (1), the Director may designate— (A) 1 or more information sharing and analysis centers to participate in the pilot program; (B) 1 or more participants in a certified or recognized information sharing or interdiction network; or (C) 1 or more private sector entities, as appropriate, relating to a particular type of illicit activity. (e) Information sharing with private sector entities A covered agency that initiates an investigation into a potential illicit finance violation, or identifies a threat or emerging risk relating to an illicit finance violation, may share with any designated private sector entity such information about the investigation, threat, or emerging risk as the covered agency determines is appropriate. (f) Use of information by private sector entities Information received by a designated private sector entity under this section may not be used for any purpose other than identifying and reporting on activities that may involve illicit finance violations or threats and emerging risks relating to illicit finance violations, unless otherwise prescribed by regulation or permitted by the covered agency sharing the information. (g) Means of sharing information The covered agencies and designated private sector entities may share information about potential illicit finance violations, or threats and emerging risks relating to illicit finance violations, with each other— (1) through a portal established by the Secretary of the Treasury or a similar mechanism determined appropriate by the Secretary of the Treasury; (2) through secure email; (3) at monthly meetings, which shall be facilitated by the Secretary of the Treasury; or (4) through a certified or recognized information-sharing or interdiction network. (h) Limitation on liability A designated private sector entity that transmits, receives, or shares information for the purposes of identifying and reporting activities that may constitute illicit finance violations, or threats and emerging risks relating to illicit finance violations, shall not be liable to any person for such disclosure or for any failure to provide notice of such disclosure to the person who is the subject of such disclosure or any other person identified in such disclosure. (i) Sunset The pilot program established under subsection (c) shall terminate on the date that is 5 years after the date of enactment of this Act, unless made permanent through notice and comment rulemaking by the Department of the Treasury.

204. Financial Technology Protection Act (a) Short title This section may be cited as the Financial Technology Protection Act. (b) Definitions In this section: (1) Appropriate congressional committees The term appropriate congressional committees means— (A) the Committee on Banking, Housing, and Urban Affairs of the Senate; (B) the Committee on Agriculture, Nutrition, and Forestry of the Senate; (C) the Committee on Financial Services of the House of Representatives; and (D) the Committee on Agriculture of the House of Representatives. (2) Distributed ledger analytics company The term distributed ledger analytics company means any business providing software, research, or other services (such as tracing tools, geofencing, transaction screening, the collection of business data, and sanctions screening) that— (A) support private and public sector investigations and risk management activities; and (B) involve cryptographically secured distributed ledgers or any similar technology or implementation. (3) Emerging technologies The term emerging technologies means the critical and emerging technology areas listed in the Critical and Emerging Technologies List developed by the Fast Track Action Subcommittee on Critical and Emerging Technologies of the National Science and Technology Council, including any updates to such list. (4) Foreign terrorist organization The term foreign terrorist organization means an organization that is designated as a foreign terrorist organization under section 219 of the Immigration and Nationality Act (8 U.S.C. 1189). (5) Illicit use The term illicit use includes fraud, money laundering, terrorist financing, the purchase and sale of illicit goods, trafficking of fentanyl (including fentanyl precursors and trade in other illicit drugs), sanctions evasion, theft of funds, funding of illegal activities, transactions related to child sexual abuse material or elder fraud abuse, and any other financial transaction involving the proceeds of specified unlawful activity (as defined in section 1956(c) of title 18, United States Code). (6) State sponsor of terrorism The term state sponsor of terrorism means a country determined by the Secretary of State to have repeatedly provided support for acts of international terrorism under section 40 of the Arms Export Control Act (22 U.S.C. 2780) or section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371). (7) Terrorist The term terrorist includes a person carrying out domestic terrorism or international terrorism (as such terms are defined, respectively, under section 2331 of title 18, United States Code). (8) Transnational organized crime The term transnational organized crime has the meaning given the term in section 284 of title 10, United States Code. (c) Independent financial technology working group to combat terrorism, narcotics trafficking, and illicit financing (1) Establishment There is established the Independent Financial Technology Working Group to Combat Terrorism, Narcotics Trafficking, and Illicit Financing (in this section referred to as the Working Group ), which shall consist of the following: (A) The Secretary of the Treasury or their designee, who shall serve as the chair of the Working Group. (B) A senior-level representative from each of the following: (i) The Department of the Treasury. (ii) The Office of Terrorism and Financial Intelligence. (iii) The Internal Revenue Service. (iv) The Department of Justice. (v) The Federal Bureau of Investigation. (vi) The Drug Enforcement Administration. (vii) The Department of Homeland Security. (viii) The United States Secret Service. (ix) The Department of State. (x) The Office of the Director of National Intelligence. (C) At least 5 individuals appointed by the Secretary of the Treasury to represent the following: (i) Digital asset companies. (ii) Distributed ledger analytics companies. (iii) Financial institutions. (iv) Institutions or organizations engaged in research. (v) Institutions or organizations focused on individual privacy and civil liberties. (D) Such additional individuals as the Secretary of the Treasury may appoint as necessary to accomplish the duties described in paragraph (2). (2) Duties The Working Group shall— (A) conduct research on the illicit use of digital assets and other related emerging technologies, including by terrorists, foreign terrorist organizations, state sponsors of terrorism, and transnational organized crime groups; and (B) develop legislative and regulatory proposals to improve anti-money laundering, counter-terrorist, and other counter-illicit financing efforts in the United States. (3) Reports (A) In general Not later than 1 year after the date of enactment of this Act, and annually for the 3 years thereafter, the Working Group shall submit to the Secretary of the Treasury, the heads of each agency represented in the Working Group pursuant to paragraph (1)(B), and the appropriate congressional committees a report containing the findings and determinations made by the Working Group in the previous year and any legislative and regulatory proposals developed by the Working Group. (B) Final report Before the date on which the Working Group terminates under paragraph (4)(A), the Working Group shall submit to the appropriate congressional committees a final report detailing the findings, recommendations, and activities of the Working Group, including any final results from the research conducted by the Working Group. (4) Sunset (A) In general The Working Group shall terminate on the later of— (i) the date that is 4 years after the date of enactment of this Act; or (ii) the date on which the Working Group completes any wind-up activities described in subparagraph (B). (B) Authority to wind up activities If there are research, proposals, or other related activities of the Working Group ongoing as of the date that is 4 years after the date of enactment of this Act, the Working Group may temporarily continue working in order to wind up such activities. (C) Return of appropriated funds On the date on which the Working Group terminates under subparagraph (A), any unobligated funds appropriated to carry out this subsection shall be transferred to the Treasury.

205. Digital asset kiosks (a) Registration Section 5330 of title 31, United States Code, is amended— (1) in subsection (d)— (A) in paragraph (1)(A), by inserting , any person who owns, operates, or manages a digital asset kiosk in the United States or its territories, after similar instruments; and (B) by adding at the end the following: (3) Digital asset; digital asset address; digital asset kiosk; digital asset kiosk operator The terms digital asset, digital asset address, digital asset kiosk, and digital asset kiosk operator have the meanings given those terms, respectively, in section 5337. ; and (2) by adding at the end the following: (f) Registration of digital asset kiosk locations (1) In general Not later than 90 days after the effective date of this subsection, and not less than once every 90 days thereafter, the Secretary of the Treasury shall require digital asset kiosk operators to submit an updated list containing the physical address of each digital asset kiosk owned or operated by the digital asset kiosk operator. (2) Form and manner of registration Each submission by a digital asset kiosk operator pursuant to paragraph (1) shall include— (A) the legal name of the digital asset kiosk operator; (B) any fictitious or trade name of the digital asset kiosk operator; (C) the physical address of each digital asset kiosk owned, operated, or managed by the digital asset kiosk operator that is located in the United States or the territories of the United States; (D) the start date of operation of each digital asset kiosk; (E) the end date of operation of each digital asset kiosk, if applicable; and (F) each digital asset address used by the digital asset kiosk operator. (3) False and incomplete information The filing of false or materially incomplete information in a submission required under paragraph (1) shall be deemed a failure to comply with the requirements of this subsection. . (b) Preventing fraudulent transactions at digital asset kiosks (1) In general Subchapter II of chapter 53 of title 31, United States Code, is amended by adding at the end the following: 5337. Digital asset kiosk fraud prevention (a) Definitions In this section: (1) Customer The term customer means any person that purchases or sells digital assets through a digital asset kiosk. (2) Distributed ledger analytics The term distributed ledger analytics means the analysis of data from public distributed ledgers, and associated transaction information, to provide risk-specific information about digital asset transactions and digital asset addresses. (3) Digital asset The term digital asset has the meaning given the term in section 2 of the GENIUS Act (12 U.S.C. 5901). (4) Digital asset address The term digital asset address means an alphanumeric identifier associated with a digital asset wallet identifying the location to which a digital asset purchased through a digital asset kiosk can be sent or from which a digital asset sold through a digital asset kiosk can be accessed. (5) Digital asset kiosk The term digital asset kiosk means a stand-alone machine that is capable of accepting or dispensing legal tender in exchange for digital assets. (6) Digital asset kiosk operator The term digital asset kiosk operator means a person who owns, operates, or manages a digital asset kiosk located in the United States or its territories. (7) Digital asset kiosk transaction The term digital asset kiosk transaction means the purchase or sale of digital assets via a digital asset kiosk. (8) Digital asset wallet The term digital asset wallet means a software application or other mechanism providing a means for holding, storing, and transferring digital assets. (9) FinCEN The term FinCEN means the Financial Crimes Enforcement Network of the Department of the Treasury. (10) New customer The term new customer, with respect to a digital asset kiosk operator, means a customer during the 14-day period beginning on the date of the first digital asset kiosk transaction of the customer with the digital asset kiosk operator. (11) Transaction hash The term transaction hash means a unique identifier made up of a string of characters that act as a record of and provide proof that a transaction was verified and added to the distributed ledger. (b) Disclosures (1) In general Before entering into a digital asset transaction with a customer, a digital asset kiosk operator shall disclose in a clear, conspicuous, and easily readable manner— (A) all relevant terms and conditions of the digital asset kiosk transaction, including— (i) the amount of the digital asset kiosk transaction; (ii) the type and nature of the digital asset kiosk transaction; (iii) a warning that the digital asset kiosk transaction is final, is not refundable, and may not be reversed; and (iv) the type and amount of any fees or other expenses paid by the customer; (B) a warning relating to consumer fraud including— (i) that consumer fraud often starts with contact from a stranger, and that the customer should never send money to someone the customer does not know; (ii) the most common types of fraudulent schemes involving digital asset kiosks, such as— (I) impersonation of a government official or a bank representative; (II) threats of jail time or financial penalties; (III) offers of a job or reward in exchange for payment, or offers of deals that seem too good to be true; (IV) claims of a frozen bank account or credit card; (V) requests for donations to charity or disaster relief; or (VI) payment to an individual the customer has never met; and (iii) a statement that the customer should contact law enforcement if they suspect fraudulent activity, such as scams, including contact information for a relevant law enforcement or government agency. (2) Additional disclosures FinCEN may adopt rules relating to additional disclosures required to be made to customers prior to engaging in a transaction. (c) Acknowledgment of disclosures Each time a customer uses a digital asset kiosk, the digital asset kiosk operator shall ensure acknowledgment of all disclosures required under subsection (b) via confirmation of consent of the customer at the digital asset kiosk. (d) Receipts Upon completion of each digital asset kiosk transaction, the digital asset kiosk operator shall provide the customer with a receipt, which shall include the following information: (1) The name and contact information of the digital asset kiosk operator, including a telephone number for a customer service helpline. (2) The name of the customer. (3) The type, value, date, and precise time of the digital asset kiosk transaction, transaction hash, and each applicable digital asset address. (4) The amount of the digital asset kiosk transaction expressed in United States dollars. (5) All fees charged. (6) A statement that the customer should contact law enforcement if they suspect fraudulent activity, such as scams, including contact information for a relevant law enforcement or government agency. (7) The exchange rate applied. (8) Any additional information the digital asset kiosk operator determines appropriate. (e) Physical receipts available A physical version of the receipt required under subsection (d) shall be issued to the customer at the time of the digital asset kiosk transaction, if the customer opts for such a physical version of the receipt. (f) Anti-Fraud policy

(1) In general Each digital asset kiosk operator shall establish, maintain, and implement a written anti-fraud policy if required by, and consistent with, applicable State law in those States where the digital asset kiosk operator is licensed. (2) Federal standard A digital asset kiosk operator operating in any State that does not require an anti-fraud policy under paragraph (1) shall establish, maintain, and implement an anti-fraud policy that, at a minimum, includes— (A) the identification and assessment of fraud-related areas; (B) procedures and controls to protect against risks identified under subparagraph (A); (C) allocation of responsibility for monitoring the risks identified under subparagraph (A); and (D) procedures for the periodic evaluation and revision of the anti fraud procedures, controls, and monitoring mechanisms under subparagraphs (B) and (C). (g) Appointment of compliance officer Each digital asset kiosk operator shall designate and employ a compliance officer who— (1) is qualified to coordinate and monitor compliance with this section and all other applicable Federal and State laws, rules, and regulations; (2) is employed full-time by the digital asset kiosk operator; (3) is not the chief executive officer of the digital asset kiosk operator; and (4) does not own or control more than 10 percent of any interest in the digital asset kiosk operator. (h) Use of distributed ledger analytics and wallet pinning (1) In general Each digital asset kiosk operator shall use distributed ledger analytics to prevent sending a digital asset to a digital asset wallet known to be affiliated with fraudulent activity at the time of a digital asset kiosk transaction and to detect transaction patterns indicative of fraud or other illicit activities. (2) Wallet pinning Each digital asset kiosk operator shall maintain restrictions that prevent more than 1 customer of the digital asset kiosk operator from using the same digital wallet address. (3) Compliance The Director of FinCEN may request evidence from any digital asset kiosk operator to confirm compliance with this subsection. (i) Confirmation required before new customer transactions Before entering into a digital asset kiosk transaction valued at $500 or more with a new customer, the digital asset kiosk operator shall obtain confirmation from the new customer that— (1) the new customer wishes to proceed with the digital asset kiosk transaction; and (2) the new customer is not being fraudulently induced into engaging in the transaction. (j) Holding period No digital asset kiosk operator shall execute a transaction on behalf of a new customer that sends digital assets to a specific wallet address unless at least 72 hours have elapsed since the initiation of the transaction by the new customer. (k) Transaction limits with respect to new customers The Secretary of the Treasury shall prescribe by regulation the threshold amounts for reporting or limiting digital asset kiosk transactions, including aggregate or single-day deposit and withdrawal limits, as the Secretary determines are reasonably necessary to deter fraud and illicit finance. Such regulations shall consider the unique risks and functionalities of digital asset kiosks and may provide for exceptions, adjustments, or exclusions as deemed appropriate by the Secretary. (l) Interim transaction limits Until the effective date of regulations prescribed under subsection (k), a digital asset kiosk operator shall not permit a new customer to conduct transactions exceeding $3,500 in the aggregate within any 24-hour period. (m) Refunds A digital asset kiosk operator shall issue a refund for a customer’s transaction fees within 30 days if— (1) the customer was fraudulently induced into engaging in the digital asset kiosk transaction; and (2) the customer files a complaint to the digital asset kiosk operator, which includes— (A) the name, address, and phone number of the customer; (B) the transaction hash of the digital asset kiosk transaction or information sufficient to establish the type, value, date, and time of the digital asset kiosk transaction; and (C) a copy of a report to a State or local law enforcement or government agency made not later than 30 days after the digital asset kiosk transaction. (n) Customer service helpline Each digital asset kiosk operator shall provide live customer service during business hours, the phone number for which is regularly monitored and displayed in a clear, conspicuous, and easily readable manner upon each digital asset kiosk. During non-business hours, the digital asset kiosk operator shall maintain an alternative customer service system that may include an automated chatbot, an online complaint reporting portal, or other customer service mechanism. (o) Communications with law enforcement Each digital asset kiosk operator performing business in the United States shall have a dedicated method of contact, such as a phone number, email address, or other contact method, for law enforcement and regulatory agencies to contact the digital asset kiosk operator. This contact method shall be displayed and available on the digital asset kiosk operator’s website. (p) Civil penalties and state enforcement Any State regulator may bring a civil action or other appropriate proceeding to enforce the provisions of this section and may assess or collect civil penalties or other remedies for violations of this section, as provided under applicable State law. (q) Rule of construction Nothing in this section may be construed to prohibit a State from enacting a law, rule, or regulation that provides greater protection to customers. . (2) Technical and conforming amendment The table of sections for subchapter II of chapter 53 of title 31, United States Code, is amended by adding at the end the following: 5337. Digital asset kiosk fraud prevention. .

(k) Transaction limits with respect to new customers The Secretary of the Treasury shall prescribe by regulation the threshold amounts for reporting or limiting digital asset kiosk transactions, including aggregate or single-day deposit and withdrawal limits, as the Secretary determines are reasonably necessary to deter fraud and illicit finance. Such regulations shall consider the unique risks and functionalities of digital asset kiosks and may provide for exceptions, adjustments, or exclusions as deemed appropriate by the Secretary.

301. Rulemaking on application of existing securities intermediary requirements and existing Bank Secrecy Act requirements to non-decentralized finance trading protocols (a) Definitions In this section: (1) Decentralized finance trading protocol The term decentralized finance trading protocol means a distributed ledger system through which multiple participants can execute a financial transaction— (A) in accordance with an automated rule or algorithm that is predetermined and non-discretionary; and (B) without reliance on a person other than the user to maintain custody or control of any digital assets subject to the financial transaction. (2) Non-decentralized finance trading protocol (A) In general The term non-decentralized finance trading protocol means a decentralized finance trading protocol that meets 1 or more of the following: (i) A person or group of persons under common control, or acting pursuant to an agreement, arrangement, or understanding to act in concert, has the 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 decentralized finance trading protocol. (ii) The decentralized finance trading protocol 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 distributed ledger system. (iii) A person or group of persons under common control, or acting pursuant to an agreement, arrangement, or understanding to act in concert, has the authority, via operation of the decentralized finance trading protocol, to restrict, censor, or prohibit the use of the decentralized finance trading protocol, including any applicable system-based user activity. (B) Special rule For purposes of subparagraph (A), a decentralized governance system, solely by virtue of the operation of the decentralized governance system, shall not be considered to be a person or a group of persons under common control or acting pursuant to an agreement, arrangement, or understanding to act in concert. (C) Exclusions For purposes of this section, participation in an incident-response or security council, as described in subsection (f), shall not, by itself, be deemed to constitute control of a non-decentralized finance trading protocol. (D) Scoping In implementing this section, the Commission and the Department of the Treasury shall construe the term non-decentralized finance trading protocol in a manner consistent with section 15H of the Securities Exchange Act of 1934, as added by section 601. (b) Rules (1) In general The Commission, in consultation with the Department of the Treasury, shall adopt tailored, clear, and specific rules, after notice and comment, that clarify how a person, or group of persons under common control, or acting pursuant to an agreement, arrangement, or understanding to act in concert, that controls a non-decentralized finance trading protocol and is subject to the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), as amended by this Act, shall comply with applicable requirements under that Act, including with respect to registration, conduct, disclosure, recordkeeping, supervision, and other requirements under the securities laws. (2) Requirements The rulemaking required under paragraph (1) shall— (A) ensure that the rules adopted pursuant to that rulemaking are consistent with the purposes of the securities laws, including the public interest, the protection of investors, and the maintenance of fair and orderly markets; (B) protect the rights of software developers, publishers, and users to create, publish, and use code and software in a manner consistent with the First Amendment to the Constitution of the United States; (C) provide legal clarity for the development, publication, and operation of distributed ledger systems and the components therein in a manner consistent with the purposes of this section; and (D) result in, by operation of law, the application and enforcement by the Department of the Treasury, where applicable and pursuant to existing law, as in effect on the day before the date of enactment of this Act, of anti-money laundering and countering the financing of terrorism requirements under the Bank Secrecy Act and other Federal law with respect to any person or group of persons that the Commission determines, through that rulemaking, is required to register, or comply as a registrant, under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.). (3) Application (A) In general Any person or group of persons determined under this subsection to be required to register, or comply as a registrant, under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) (referred to in this paragraph as the Exchange Act) shall be subject to that Act and the Bank Secrecy Act to the extent applicable under existing law, as in effect on the day before the date of enactment of this Act, consistent with the treatment of similarly situated participants under the Exchange Act. (B) Rulemaking The Secretary of the Treasury, in consultation with the Commission, shall adopt tailored, clear, and specific rules, after providing notice and the opportunity to comment, that define compliance with obligations under the Bank Secrecy Act and other Federal laws relating to anti-money laundering and countering the financing of terrorism with respect to any person, or group of persons under common control (or acting pursuant to an agreement, arrangement, or understanding to act in concert), that— (i) controls the operation of a non-decentralized finance trading protocol identified in the rulemaking conducted under paragraph (1); (ii) is required to register, or comply as a registrant, under the Exchange Act, as determined in the rulemaking conducted under paragraph (1); and (iii) is caused to be treated as a financial institution under the Bank Secrecy Act pursuant to existing law, as in effect on the day before the date of enactment of this Act, as a result of registration or compliance described in clause (ii). (c) Activity-Based application Rules adopted under subsection (b)(1) shall require the Commission to determine the applicable requirements only with respect to securities-related activities, based on the functions performed by the controlling person or group of persons, including brokerage, dealing, trading, execution, clearing, or custody of securities, without regard to technological form, distributed architecture, or purportedly decentralized characterization. (d) Rules of construction (1) Registration not required Nothing in this section, nor any rule adopted under this section, may be construed to— (A) require a distributed ledger system or any software code to register with the Commission in its own capacity; or (B) prohibit the launch, deployment, or operation of a distributed ledger system. (2) No expansion of statutory authority Notwithstanding any rulemaking required under subsection (b), and notwithstanding any action the Commission or the Secretary of the Treasury may take under that subsection, nothing in this section, including any such rulemaking, may be construed to— (A) expand or contract the statutory authority of the Commission or the Department of the Treasury, as in effect on the day before the date of enactment of this Act, under the Bank Secrecy Act; or

(B) limit the use of the authority described in subparagraph (A) to determine, pursuant to that rulemaking, the applicability of existing statutory requirements, as in effect on the day before the date of enactment of this Act, to persons or activities described in this section. (3) No presumption of applicability Nothing in this section may be construed to create a presumption that any person or activity described in this section is or is not subject to the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) or the Bank Secrecy Act absent a determination made pursuant to a rulemaking required under this section. (e) Preservation of existing authorities Nothing in this section may be construed to— (1) limit the authority of the Commission under the securities laws to investigate violations, bring actions, or issue subpoenas with respect to persons determined, pursuant to rulemaking, to be subject to the securities laws under this section; or (2) limit the authority of the Secretary of the Treasury under the Bank Secrecy Act, including to investigate violations or bring actions with respect to persons determined, pursuant to rulemaking, to be subject to the Bank Secrecy Act. (f) Non-Decentralized finance trading protocols (1) In general In adopting rules under subsection (b), the Commission shall treat a decentralized governance system and any person participating in the decentralized governance system as separate persons unless such persons are under common control or acting pursuant to an agreement, arrangement, or understanding to act in concert. (2) Emergency measures (A) In general Pre-defined, temporary rules-based cybersecurity emergency measures exercised by an incident-response or security council exclusively in response to a specific and documented cybersecurity incident or imminent threat and pursuant to publicly disclosed, on-chain authorization mechanisms, strictly limited in scope and duration solely to address such specific and documented cybersecurity incident or imminent threat, and without unilateral control by any single person, shall not, by themselves, constitute common control or an agreement, arrangement, or understanding to act in concert, provided that such rules and authorities, including the procedures and operational limits governing such emergency measures, are disclosed in publicly available written documentation reasonably available to the applicable Federal regulator, by a decentralized governance system or similar legal entity sufficiently in advance of any exercise of such emergency powers. (B) Prohibition The emergency measures described in subparagraph (A) may not be used to implement protocol upgrades, governance decisions, or economic changes that are unrelated to the mitigation of the applicable cybersecurity incident or imminent threat, as described in that subparagraph. (3) Standards The standards criteria for temporary rules-based cybersecurity emergency measures under paragraph (2) shall be established by rulemaking pursuant to subsection (b).

302. Illicit finance obligations for distributed ledger messaging systems (a) Definitions In this section: (1) Distributed ledger messaging system The term distributed ledger messaging system— (A) means a web-hosted software application that provides a user with the ability to create or submit an instruction, communication, or message to a distributed ledger application or decentralized finance trading protocol for the purpose of executing a transaction by the user; and (B) does not include— (i) a distributed ledger application; (ii) a distributed ledger protocol; (iii) a distributed ledger system; (iv) a decentralized finance trading protocol; (v) any client, node, validator, or other form of computational infrastructure with respect to a distributed ledger system; or (vi) any software or hardware wallet that facilitates the custody of an individual of their digital assets. (2) United States sanction law The term United States sanction law means any Federal law imposing, or authorizing the imposition of, economic sanctions. (b) Guidance Not later than 360 days after the date of enactment of this Act, the Secretary of the Treasury shall issue guidance with respect to the economic sanctions and anti-money laundering and countering the financing of terrorism obligations, risk management practices, or compliance considerations, applicable to a distributed ledger messaging system that is owned or operated by a United States person, as defined in any law imposing or authorizing the imposition of economic sanctions, which may include— (1) the use of commercially reasonable distributed ledger-analytics screening measures, through industry-standard distributed ledger-analytics tools, to identify wallet addresses that are owned by sanctioned persons, involve jurisdictions or financial institutions subject to United States sanctions, or activity prohibited by United States sanctions; (2) blocking, rejecting, preventing the routing of, or otherwise restricting attempted transactions prohibited by United States sanction laws; (3) blocking or restricting transactions that exhibit indicators of ransomware activity, illicit finance typologies, or any other pattern that presents a significant and identifiable illicit finance risk based on a commercially reasonable distributed ledger-analytics assessment to identify transactions that involve ransomware activity and other illicit finance activity; and (4) implementing and maintaining risk-based measures, consistent with applicable law, to identify, mitigate, and address anti-money laundering and countering the financing of terrorism risks, including— (A) monitoring for risk indicators and limiting exposure to illicit-finance risks, which may include restricting, limiting, or otherwise mitigating exposure to high-risk transactions; and (B) complying, as applicable, with special measures implemented by the Secretary of the Treasury under section 5318A of title 31, United States Code. (c) Enforcement and penalties The Secretary of the Treasury and any other Federal agency with relevant jurisdiction have the authority, as applicable, to enforce this section using their existing authorities, as of the day before the date of enactment of this Act, under applicable law. (d) Rules of construction Nothing in this section may be construed to— (1) alter or amend any laws imposing or authorizing imposition of economic sanctions by the United States, including those that apply to United States persons that own or operate a distributed ledger messaging system; (2) expand or contract the applicability of— (A) economic sanctions, anti-money laundering, or any other illicit finance laws in effect as of the day before the date of enactment of this Act to any person, including any person that owns or operates a distributed ledger messaging system; or (B) the definition of a financial institution under applicable laws, which shall not apply to non-controlling developers or providers as defined in section 604(b)(3); or (3) restrict the authority of the Secretary of the Treasury to implement, administer, and enforce, including by imposing civil money penalties, any law imposing or authorizing the imposition of economic sanctions or any law to prevent money laundering or illicit finance otherwise provided by Federal law to the Secretary of the Treasury.

(2) Decentralized finance trading protocol (A) In general The term decentralized finance trading protocol means a distributed ledger 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 a person other than the user to maintain custody or control of the digital assets subject to the financial transaction. (B) Exclusions (i) In general The term decentralized finance trading protocol does not include a distributed ledger system if— (I) a person or group of persons under common control or acting pursuant to an agreement to act in concert has the 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 distributed ledger system; (II) the distributed ledger 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 distributed ledger system; or (III) a person or group of persons under common control has the unilateral authority, via operation of the distributed ledger system, to restrict, censor, or prohibit the use of the distributed ledger system, including any applicable system-based user activity. (ii) Special rule For purposes of clause (i), a decentralized governance system shall not be considered to be a person or a group of persons under common control or acting pursuant to an agreement to act in concert.

(d) Rules of construction Nothing in this section may be construed to— (1) alter or amend any laws imposing or authorizing imposition of economic sanctions by the United States, including those that apply to United States persons that own or operate a distributed ledger messaging system; (2) expand or contract the applicability of— (A) economic sanctions, anti-money laundering, or any other illicit finance laws in effect as of the day before the date of enactment of this Act to any person, including any person that owns or operates a distributed ledger messaging system; or (B) the definition of a financial institution under applicable laws, which shall not apply to non-controlling developers or providers as defined in section 604(b)(3); or (3) restrict the authority of the Secretary of the Treasury to implement, administer, and enforce, including by imposing civil money penalties, any law imposing or authorizing the imposition of economic sanctions or any law to prevent money laundering or illicit finance otherwise provided by Federal law to the Secretary of the Treasury.

(e) Rules of construction Nothing in this section may be construed— (1) to affect whether a developer or provider of a distributed ledger service is otherwise subject to classification or treatment as a money transmitter, or as engaged in money transmitting, under applicable Federal or State law, including laws relating to anti-money laundering or countering the financing of terrorism, based on conduct outside the scope of subsection (c); (2) to affect whether a developer or provider is otherwise subject to classification or treatment as a financial institution under subchapter II of chapter 53 of title 31, United States Code, this Act, any amendment made by this Act, or any Act enacted after the date of enactment of this Act, based on conduct outside the scope of subsection (c);

303. Special measure relating to certain transmittals of funds Section 5318A of title 31, United States Code, is amended— (1) in subsection (a)(2)(C), by striking subsection (b)(5) and inserting paragraph (5) or (6) of subsection (b) and (2) in subsection (b), by adding at the end the following: (6) Special measure for certain transmittals of funds If the Secretary of the Treasury finds that a jurisdiction outside of the United States, 1 or more financial institutions operating outside of the United States, or 1 or more classes of transactions within, or involving, a jurisdiction outside of the United States is of primary money laundering concern in connection with illicit finance through the use of digital assets, as defined in section 2 of the GENIUS Act (12 U.S.C. 5901), the Secretary may, by order, regulation, or otherwise as permitted by law, prohibit, or impose conditions upon, certain transmittals of funds (to be defined by the Secretary by regulation) by any domestic financial institution or domestic financial agency, if such transmittal of funds involves any such institution, class of transaction, or type of account. .

305. Temporary hold for certain digital asset transactions (a) Definitions In this section: (1) Covered agency The term covered agency means any State or Federal law enforcement agency, including the Department of the Treasury. (2) Covered person The term covered person means a person that is— (A) a permitted payment stablecoin issuer; (B) a foreign payment stablecoin issuer (as defined in section 2 of the GENIUS Act (12 U.S.C. 5901)) registered with the Office of the Comptroller of the Currency pursuant to section 18(c) of that Act (12 U.S.C. 5916(c)); or (C) a digital asset service provider, as that term is defined in section 2 of the GENIUS Act (12 U.S.C. 5901). (3) Payment stablecoin; permitted payment stablecoin issuer The terms payment stablecoin and permitted payment stablecoin issuer have the meanings given those terms in section 2 of the GENIUS Act (12 U.S.C. 5901). (4) Qualified written request The term qualified written request means a written communication issued by an authorized official of a covered agency that— (A) identifies a specific wallet, address, account, or transaction reasonably suspected of being linked to illicit activity; (B) requests a covered person initiate an action with respect to the specified wallet, address, account, or transaction reasonably suspected of being linked to illicit activity, including delaying the execution of a transaction, conversion, or withdrawal involving digital assets; and (C) includes a designated agency contact. (5) Temporary hold The term temporary hold means a restriction applied by a covered person that delays execution of a transaction, conversion, or withdrawal involving digital assets for a reasonable period of time, not to exceed 30 calendar days, which may be extended for an additional 150 calendar days pursuant to a qualified written request. (b) Protection from private causes of action (1) In general Any covered person that, in good faith and in compliance with this section, or any person complying with a temporary lawful order under subsection (c) that, voluntarily implements a temporary hold shall not be held liable pursuant to any Federal or State private right of action for implementing the temporary hold, provided that— (A) the covered person or other person, as applicable— (i) implements the temporary hold based on a reasonable belief the transaction, conversion, or withdrawal relates to a violation or attempted violation of State or Federal law; or (ii) implements the temporary hold after receiving a qualified written request from a covered agency; (B) the covered person— (i) makes reasonable efforts to notify the affected customer of the temporary hold; (ii) reasonably determines that notification would impede actual or potential law enforcement efforts; or (iii) receives a qualified written request from a covered agency that requests notification not be attempted; and (C) the covered person notifies as soon as reasonably practicable an appropriate State or Federal law enforcement agency or the Federal Trade Commission, provided that such notification is not required when the covered person has received a qualified written request from a covered agency. (2) Documentation A covered person shall— (A) maintain for the 3-year period following the implementation of a temporary hold documentation of the basis for applying a temporary hold; and (B) make available the documentation described in subparagraph (A) upon the request of a covered agency or the Federal Trade Commission. (c) Compliance with temporary lawful orders A permitted payment stablecoin issuer shall comply with any valid writ, process, order, rule, decree, command, or other requirement issued or promulgated under Federal law by a court of competent jurisdiction that— (1) requires a person to freeze or prevent the transfer of payment stablecoins; (2) specifies the payment stablecoins or accounts subject to blocking with reasonable particularity; and (3) is subject to judicial or administrative review or appeal, as provided by law. (d) Rules of construction Nothing in this section may be construed to— (1) compel or require any covered person to take action to freeze, seize, or block digital assets that is not otherwise required under existing Federal or State law, as in effect on the day before the date of enactment of this Act; (2) limit or alter the authority of any government agency, including with respect to authority to pursue enforcement actions; (3) limit or affect the application of— (A) section 5318(g)(3) of title 31, United States Code, and any regulation requiring any financial institution to report suspicious activity; or (B) any lawful authority to seize or freeze assets pursuant to a lawful order or sanctions designation; or (4) limit the ability of a covered person to apply a temporary hold to any wallet, address, account, or transaction located outside the United States. (e) Reporting The Attorney General and the Federal Trade Commission may issue regulations or guidance relating to any notification by covered persons pursuant to this section to the Department of Justice and the Federal Trade Commission, respectively.

Before conducting trading activity (including routing orders and executing trades) through a decentralized finance trading protocol, a digital asset intermediary shall implement risk management standards

Disclosing the risks identified under paragraph (1) using plain language to customers.

establish a voluntary program for the adoption by persons developing decentralized finance trading protocols or engaging in covered activities of applicable cybersecurity standards published by NIST.

conduct a separate study examining the risks to financial stability and orderly markets arising from the extension and maintenance of credit with respect to digital assets

304. Offshore stablecoin report (a) Definitions In this section: (1) Material volume of transactions The term material volume of transactions means a sustained level of transaction activity that is— (A) publicly observable; (B) exceeds de minimis usage over a 12-month period; and (C) is reasonably likely to affect the illicit finance or national security risk exposure of the United States. (2) Payment stablecoin The term payment stablecoin has the meaning given the term in section 2 of the GENIUS Act (12 U.S.C. 5901). (3) United states-dependent offshore stablecoin The term United States-dependent offshore stablecoin means a payment stablecoin— (A) that is not issued by a permitted payment stablecoin issuer or any foreign payment stablecoin issuer registered with the Comptroller (as those terms are defined in section 2 of the GENIUS Act (12 U.S.C. 5901)); (B) that is issued by a person operating outside of the United States; and (C) the value of which is supported or backed by a reserve of assets that has a substantial nexus to the United States, which may include— (i) obligations of the United States, including United States Treasury securities and repurchase agreements backed by United States Treasury securities and funds held as deposits at any bank subject to the jurisdiction of the United States; (ii) deposits maintained at a banking entity or insured depository institution located in the United States, including correspondent or payable-through accounts; (iii) securities issued or guaranteed by the United States or any agency or instrumentality thereof; or (iv) assets custodied, cleared, or settled through payment, clearing, or settlement systems located in the United States. (b) Report Not later than June 30 of the second calendar year that begins after the date of enactment of this Act, and every 4 years thereafter for not more than 3 reports, the Secretary of the Treasury shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives, and make available on the website of the Department of the Treasury, a report assessing whether there is credible, articulable, and publicly supportable evidence of significant illicit finance threats or vulnerabilities associated with any United States-dependent offshore stablecoin employed in a material volume of transactions. (c) Contents Each report required under subsection (b) shall include— (1) an assessment of the illicit finance risk of each United States-dependent offshore stablecoin employed in a material volume of transactions; (2) an assessment of the controls employed by the issuers of United States-dependent offshore stablecoins to address the use of such stablecoins in illicit finance, as available; (3) data and information regarding the volume of United States-dependent offshore stablecoins assessed to be employed in connection with illicit finance, as available; (4) a general description of the relationships between United States-dependent offshore stablecoins and the financial system of the United States, including principal channels of interaction; and (5) such other information or analysis as the Secretary of the Treasury deems relevant to assessing the illicit finance risks of United States-dependent offshore stablecoins. (d) Classified annex Each report required under subsection (b) shall be submitted in unclassified form, but may contain a classified annex. (e) National strategy The reporting requirement under subsection (b) may be met as part of the national strategy for combating terrorist and other illicit financing required under sections 261 and 262 of the Countering America’s Adversaries Through Sanctions Act (Public Law 115–44; 131 Stat. 934) for the reporting years. (f) Rule of construction Nothing in this section may be construed to authorize— (1) the disclosure of any information that is protected from disclosure under Federal law; and (2) the collection or use of any information other than publicly available data or information lawfully obtained by the Department of the Treasury under existing authorities, as of the day before the date of enactment of this Act.

309. Study on digital asset mixers and tumblers (a) Digital asset mixer and tumbler defined In this section, the term digital asset mixer and tumbler means a smart contract, or set of smart contracts, that obfuscate or eliminate the source or other forms of identification of the holder of a digital asset, including by pooling assets from different holders and redistributing those assets among holders. (b) Report Not later than 1 year after the date of enactment of this Act, the Secretary of the Treasury shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report that analyzes the following issues: (1) Current (as of the date on which the report is submitted) typologies of digital asset mixers and tumblers and historical transaction volume. (2) Estimates of the percentage of transactions relating to digital asset mixers and tumblers that are used by actors engaged in illicit finance. (3) Estimates of the reliance, and financial exposure, of centralized exchanges and traditional financial institutions to digital asset mixers and tumblers, and the extent to which centralized exchanges and traditional financial institutions are adequately implementing anti-money laundering and economic sanctions compliance with respect to digital asset mixers and tumblers. (4) An assessment of potential non-illicit uses of mixers and tumblers described in paragraph (1), including privacy benefits. (5) An analysis of regulatory approaches employed by other jurisdictions relating to digital asset mixers and tumblers. (6) Recommendations for legislation or regulation relating to digital asset mixers and tumblers.

310. GAO study on intermediaries in foreign jurisdictions (a) In general The Comptroller General of the United States, in consultation with the Secretary of the Treasury, shall conduct a study to— (1) assess the risks posed by digital asset intermediaries that— (A) are primarily located in foreign jurisdictions that lack regulatory requirements that are substantially similar to the requirements of the Bank Secrecy Act; and (B) provide services to United States persons; and (2) provide any regulatory or legislative recommendations to address the risks described in paragraph (1). (b) Report Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a report containing all findings and determinations made in carrying out the study required under subsection (a).

311. Studies on foreign adversary activities (a) Definitions In this section: (1) Foreign adversary The term foreign adversary means a foreign government or foreign non-government person determined by the Secretary of Commerce to be a foreign adversary under section 791.4(a) of title 15, Code of Federal Regulations, or any successor regulation. (2) Relevant congressional committees The term relevant congressional committees means— (A) the Committee on Banking, Housing, and Urban Affairs of the Senate; (B) the Committee on Agriculture, Nutrition, and Forestry of the Senate; (C) the Select Committee on Intelligence of the Senate; (D) the Committee on Financial Services of the House of Representatives; (E) the Committee on Agriculture of the House of Representatives; and (F) the Permanent Select Committee on Intelligence of the House of Representatives. (b) Treasury report Not later than 1 year after the date of enactment of this Act, the Secretary of the Treasury, in consultation with the Commodity Futures Trading Commission and the Commission, shall conduct a study and submit a report to the relevant congressional committees, which may include a classified annex, that— (1) identifies any digital asset intermediary that is controlled by a government of a foreign adversary, or by individuals or entities acting at the direction of a foreign adversary; (2) determines whether any government of a foreign adversary is collecting trading data about United States persons in digital asset markets; and (3) evaluates whether any proprietary intellectual property of digital asset intermediaries is being misused or stolen by any government of a foreign adversary. (c) GAO study and report Not later than 1 year after the date of enactment of this Act, the Comptroller General shall conduct a study and submit a report to the relevant congressional committees, which may include a classified annex, that— (1) identifies any digital asset intermediary that is owned by a government of a foreign adversary, or by individuals or entities acting at the direction of a foreign adversary; (2) determines whether any government of a foreign adversary is collecting trading data about United States persons in digital asset markets; and (3) evaluates whether any proprietary intellectual property of digital asset intermediaries is being misused or stolen by any government of a foreign adversary.

312. Treasury study on cybersecurity standards (a) Study The Secretary of the Treasury, in consultation with the Director of the Cybersecurity and Infrastructure Security Agency, the Director of the National Security Agency, and the Director of the National Institute of Standards and Technology, shall conduct a study on cybersecurity standards applicable to digital asset smart contracts, custody, key management, and smart contract deployment. (b) Report (1) In general Not later than 365 days after the date of enactment of this Act, the Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report containing— (A) the findings of the study under subsection (a); and (B) any legislative recommendations. (2) Classified annex The report under paragraph (1) may include a classified annex, as appropriate.

making loans collateralized by digital assets

underwriting, dealing in, or making a market in digital assets in customer-driven transactions

a requirement that would apply if the activity were not performed, provided, or delivered using a digital asset or distributed ledger system.

shall be permissible for an insured credit union, subject to authorization by applicable State law.

The authorities described in this section shall not apply to nonfungible assets.

(h) Other requirements There shall be no other prior notice or approval requirements to engage in the activities described in subsections (b) through (g) of this section other than those required under title LXII of the Revised Statutes, the Act entitled An Act to place authority over the trust powers of national banks in the Comptroller of the Currency, approved September 28, 1962 (12 U.S.C. 92a et seq.), the Federal Reserve Act (12 U.S.C. 221 et seq.), or the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) and the regulations promulgated under those Acts. (i) Rule of construction Nothing in this section may be construed to— (1) exclude other possible permissible activities that are not activities described in subsection (g); (2) imply that inclusion of an activity described in subsection (g) means that the activity is otherwise impermissible; (3) limit the authority of an appropriate Federal banking agency to determine that activities other than those activities described in subsection (g) are permissible for a Federal credit union or authorized as part of the business of banking, or financial in nature, or incidental or complementary thereto, or other applicable law, as applicable, through interpretations, guidance, or rulemaking; or (4) limit the authority of an appropriate Federal banking agency, or a State bank supervisor, to supervise and take enforcement action with respect to an insured depository institution (or, to the extent applicable, a financial holding company) engaging in a digital asset activity authorized by this section that the appropriate Federal banking agency or State bank supervisor, as applicable, determines, pursuant to applicable law, to be an unsafe or unsound practice or a violation of a law, rule, or regulation, or any condition imposed in writing.

(e) Authorized activities for Federal credit unions (1) In general A Federal credit union may use a digital asset or distributed ledger system to perform, provide, or deliver any activity, function, product, or service that the Federal credit union is otherwise authorized by law to perform, provide, or deliver. (2) Business of credit unions The activities described in subsection (g) are authorized as part of, or incidental to, the authority necessary or requisite to carry on effectively the business for which Federal credit unions are incorporated under paragraph (17) of section 107 of the Federal Credit Union Act (12 U.S.C. 1757(17)). (3) Rule of construction Nothing in this subsection may be construed to exempt the performance, provision, or delivery by a Federal credit union 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 distributed ledger system. (f) Insured credit unions The activities authorized for a Federal credit union under subsection (e)(1) shall be permissible for an insured credit union, subject to authorization by applicable State law.

405. Expanded securities portfolio margin accounts under the Securities Investor Protection Act of 1970 (a) Amendments The Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.) is amended— (1) in section 9(a) (15 U.S.C. 78fff–3(a))— (A) in paragraph (4), by striking and at the end; (B) in paragraph (5), by striking the period at the end and inserting ; and; and (C) by adding at the end the following: (6) no advance shall be made by SIPC to the trustee to pay or otherwise satisfy any net equity claim of any customer with respect to any digital commodities or swaps held in an expanded securities portfolio margin account. ; (2) in section 10(g) (15 U.S.C. 78fff–4(g)), by striking 16(12) and inserting 16(13); and (3) in section 16 (15 U.S.C. 78lll)— (A) by redesignating paragraphs (7) through (14) as paragraphs (8) through (15), respectively; (B) by inserting after paragraph (6) the following: (7) Expanded securities portfolio margin account The term expanded securities portfolio margin account means a customer account— (A) that is maintained by a broker or dealer registered with the Commission; (B) that includes positions in securities, security-based swaps, futures contracts, options on futures contracts, swaps, digital commodities, or other financial instruments, or any combination thereof, as permitted by rule jointly issued by the Commission and the Commodity Futures Trading Commission; (C) that is subject to portfolio margining requirements approved pursuant to section 402 of the Digital Asset Market Clarity Act; and (D) in which margin requirements are determined on a risk-based, portfolio-wide basis, rather than on an instrument-by-instrument basis. ; and (C) in paragraph (10), as so redesignated, in the matter following subparagraph (L), by striking a transaction in the portfolio margining account and inserting the portfolio margining account or expanded securities portfolio margin account. (b) Rules (1) Definitions In this subsection: (A) Expanded securities portfolio margin account The term expanded securities portfolio margin account has the meaning given the term in section 16 of the Securities Investor Protection Act of 1970 (15 U.S.C. 78lll), as amended by this section. (B) SIPC The term SIPC means the Securities Investor Protection Corporation. (2) Issuance of rules Notwithstanding any provision of the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.), in jointly issuing rules under section 402, the Commission and the Commodity Futures Trading Commission, in consultation with the SIPC and the Secretary of the Treasury, shall issue rules relating to the treatment under that Act of securities (including related extensions of credit), security-based swaps, contracts of sale of a commodity for future delivery, options on contracts of sale of a commodity for future delivery, swaps, digital commodities, cash, or other property (to the extent that such instruments, cash, or other property effectively hedge or collateralize a securities position) held in an account offering portfolio margining carried as a securities account by a registered broker or dealer pursuant to an expanded securities portfolio margin account to facilitate portfolio margining in a manner that protects customers, including portfolio margin customers, which shall include rules relating to— (A) the transfer of accounts; (B) the allocation of customer property among customers; (C) the eligibility of products and positions to be held in an expanded securities portfolio margin account, including any disclosures to and any elections that may need to be performed by customers; (D) the application of customer protection or segregation requirements as between securities customers who are and are not maintaining positions in an expanded securities portfolio margin account; (E) further defining the terms, solely as relating to an expanded securities portfolio margin account, customer, customer property, and net equity, as necessary or appropriate to address non-securities and non-cash positions and assets held in an expanded securities portfolio margin account, and in a manner consistent with subparagraphs (A) through (D); and (F) any interaction between a securities account and an expanded securities portfolio margin account, including any funding of debits in one type of account by credits in the other type of account. (3) Process for issuance of rules The requirements of section 402(b) shall apply with respect to the rules issued under this subsection. (c) Effect of rules An expanded securities portfolio margin account may not be offered, maintained, or utilized until the final rules required under subsection (b) are issued.

402. Joint rules for portfolio margining determinations (a) In general The Commodity Futures Trading Commission and the Commission shall jointly issue rules to facilitate portfolio margining of securities (including related extensions of credit), security-based swaps, futures contracts for future delivery, options on futures contracts for future delivery, swaps, and digital commodities, or any subset thereof, for persons registered with either such Commission, in— (1) a securities account carried by a registered broker or dealer or a security-based swap account carried by a registered security-based swap dealer; (2) a futures or cleared swap account carried by a registered futures commission merchant; (3) a swap account carried by a swap dealer; or (4) 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. (b) Process The rules required to be jointly issued under subsection (a) shall— (1) describe the treatment of any account to which the rules relate, and any assets that may be held therein, in a proceeding under title 11, United States Code, the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.), title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5381 et seq.), or any other applicable insolvency law with respect to the person carrying the account; (2) be issued only if that issuance is in the public interest and provides for the appropriate protection of customers, including appropriate disclosures to each current and potential customer concerning the treatment of any account to which the rules relate, and any assets that may be held therein, in a proceeding under title 11, United States Code, the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.), title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5381 et seq.), or any other applicable insolvency law with respect to the person carrying the account; (3) require the Commission and the Commodity Futures Trading Commission to consider the public interest of, and the protection of investors by, those rules through the solicitation of public comments; and (4) require the Commission and the Commodity Futures Trading Commission to— (A) consult with other relevant foreign or domestic regulators, including the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and State bank supervisors, as appropriate; and (B) if the rules pertain to a securities account carried by a registered broker or dealer that is a member of the Securities Investor Protection Corporation, consult with the Securities Investor Protection Corporation.

403. Capital requirements to address netting agreements (a) Definitions In this section, the terms depository institution holding company and insured depository institution have the meanings given those terms in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813). (b) Capital requirements Not later than 360 days after the date of enactment of this Act, the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and the Chair of 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 of the Federal Reserve System that address netting agreements that provide for termination and close-out netting across multiple types of financial transactions, consistent with section 402, in the event of the default of a counterparty.

110. Securities Investor Protection Corporation applicability Section 16(14) of the Securities Investor Protection Act of 1970 (15 U.S.C. 78lll(14)) is amended by inserting after the second sentence the following: The term security does not include a digital commodity..

solely in connection with the holding of the payment stablecoins of that restricted recipient

rewards or incentives based on bona fide activities or bona fide transactions that are not economically or functionally equivalent to the payment of interest or yield on an interest-bearing bank deposit

may be calculated by reference to a balance, duration, tenure, or any combination of the foregoing.

shall be subject to a civil monetary penalty by the Department of the Treasury of not more than $5,000,000 for each such violation.

modify, alter, or extend prohibitions on the payment of yield, interest, or consideration applicable to permitted payment stablecoin issuers or foreign payment stablecoin issuers

(a) Definitions In this section: (1) Affiliate The term affiliate means any entity that controls, is controlled by, or is under common control with another entity. (2) Commissions The term Commissions means the Commission and the Commodity Futures Trading Commission. (3) Comptroller; foreign payment stablecoin issuer; payment stablecoin; permitted payment stablecoin issuer The terms Comptroller, foreign payment stablecoin issuer, payment stablecoin, and permitted payment stablecoin issuer have the meanings given those terms in section 2 of the GENIUS Act (12 U.S.C. 5901). (4) Covered party The term covered party means any digital asset service provider, together with all of its affiliates, but in each case excluding any permitted payment stablecoin issuer or foreign payment stablecoin issuer registered with the Comptroller. (5) Deposit The term deposit has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813). (6) Restricted recipient The term restricted recipient means a United States person that is a customer or user of a covered party. (7) United States person The term United States person means a person that is a resident of the United States or is organized or incorporated under the laws of the United States.

(d) Prohibition on specified representations (1) Certain marketing practices No covered party shall represent that— (A) payment stablecoins are investment products, deposits, backed by the full faith and credit of the United States, guaranteed by the United States Government, subject to deposit insurance by the Federal Deposit Insurance Corporation, or subject to share insurance by the National Credit Union Administration; or (B) any compensation (whether in cash, tokens, or other consideration) paid to a restricted recipient in connection with the holding, use, or retention of the payment stablecoins of that restricted recipient is— (i) paid or generated by the payment stablecoin itself, a permitted payment stablecoin issuer, or a foreign payment stablecoin issuer registered with the Comptroller; (ii) risk-free or comparable to interest paid on a deposit; or (iii) offered, administered, or paid by a person other than the covered party. (2) Misleading No covered party shall omit material information necessary to prevent any marketing, promotion, or description described in this subsection from being misleading. (e) Disclosures (1) In general Not later than 1 year after the date of enactment of this Act, the Commissions and the Secretary of the Treasury shall jointly promulgate rules requiring clear and conspicuous disclosure, in plain English, of any compensation (whether in cash, tokens, or other consideration) paid by a covered party in connection with the holding, use, or retention of the payment stablecoins of a restricted recipient in a manner that is consistent with subsection (d). (2) Requirements In promulgating rules under paragraph (1), the Commissions and the Secretary of the Treasury shall require that any required disclosure of compensation described in that paragraph, and any related term, representation, or description— (A) is presented in a clear, factual, nonpromotional, and non-misleading manner; (B) clearly identifies the circumstances under which such compensation can be paid; (C) clearly identifies the person or persons responsible for offering, administering, and paying such compensation, including whether such persons are affiliated with the issuer of associated payment stablecoins; (D) outlines all material terms with respect to such compensation; and (E) includes a statement that payment stablecoins are not investment products, deposits, backed by the full faith and credit of the United States, guaranteed by the United States Government, subject to deposit insurance by the Federal Deposit Insurance Corporation, or subject to share insurance by the National Credit Union Administration. (3) Prohibition After the date on which the rules promulgated under paragraph (1) become effective, no covered party shall market the offering of compensation (whether in cash, tokens, or other consideration) paid by such covered party in connection with the holding, use, or retention of the payment stablecoins of a restricted recipient unless the covered party has provided the disclosures required under this subsection. (4) Satisfaction of requirement A covered party that provides the disclosures required under this subsection shall be deemed not to have made a representation that is prohibited under subsection (d), provided that— (A) any marketing, promotion, or description with respect to the applicable compensation does not contradict those disclosures; and (B) those disclosures are presented in plain English and in a clear and conspicuous manner.

employs not more than 25 employees; and (H) has annual gross revenues of not more than $10,000,000 in any fiscal year.

may not raise or commit more than $20,000,000 in aggregate customer, investor, or counterparty funds in connection with Sandbox activities.

Each of the Commissions may approve not more than 20 projects per year.

an eligible firm may participate in the Sandbox for a period of not more than 2 years

shall not include any Federal or State anti-fraud law or any other law that is not specific to the regulation of securities or commodities

(f) Duration of participation (1) Duration Except as provided in paragraph (2), an eligible firm may participate in the Sandbox for a period of not more than 2 years, provided that the eligible firm does not exceed the ceilings established under subsection (d)(2). (2) Extension (A) Sole jurisdiction If an eligible innovative activity is subject only to the jurisdiction of 1 Commission, that Commission may extend participation by an eligible firm in the Sandbox by not more than 1 additional year, if that Commission determines that the eligible firm— (i) is actively pursuing the exit objective described in subsection (e)(1)(F) in good faith; (ii) is making demonstrable progress toward achieving such an exit; and (iii) establishes that such an extension is necessary to achieve such an exit. (B) Joint jurisdiction Where an eligible innovative activity is subject to the jurisdiction of both Commissions, an extension of participation by an eligible firm in the Sandbox by not more than 1 additional year shall be by joint order of the Commissions after making the findings described in clauses (i) through (iii) of subparagraph (A).

(k) Relationship of sandbox participation to state law (1) Limited preemption for sandbox participants This section, including participation in the Sandbox, and any exemption or relief granted under this section, shall supersede any State securities or commodities law requiring registration, qualification, or licensing as a condition of engaging in an approved activity or otherwise regulating that activity as a security or commodity. (2) State enforcement preserved Nothing in this section may be construed to prohibit or limit any State securities or commodities regulator, any State bank regulator, or any State law enforcement agency from conducting an investigation or bringing an administrative, civil, or criminal enforcement action under— (A) a State law prohibiting fraud or deceit, or fraudulent, deceptive, manipulative, unethical, dishonest, or other unlawful conduct or practices, in connection with securities or securities transactions; (B) the anti-fraud provisions of the Commodity Exchange Act (7 U.S.C. 1 et seq.) or State commodities laws; or (C) any State law of general applicability, including such a law relating to banking, consumer protection, contracts, property, or criminal conduct. (3) Notice filings A State may require notice of any document filed with either of the Commissions in connection with participation in the Sandbox, together with consent to service of process and reasonable fees, consistent with section 18(c) of the Securities Act of 1933 (15 U.S.C. 77r(c)).

shall consult and coordinate with foreign regulatory authorities or other relevant international organizations

carry out a study of distributed ledger-based compliance tools

shall promote the voluntary adoption and deployment of post-quantum cryptography standards

a National Strategy to Combat International Digital Asset Illicit Finance

lists the top 20 foreign jurisdictions by volume of digital asset trading activity on foreign digital asset service providers

505. Tokenization of securities (a) Definitions In this section: (1) Tokenization The term tokenization means the process of creating a digital representation of all rights, obligations, or interests in a tangible or intangible asset on a distributed ledger or comparable technology. (2) Tokenized The term tokenized, with respect to an asset, means that the asset has undergone tokenization. (b) Sense of Congress It is the sense of Congress that States should promptly consider and adopt commercial law frameworks under the Uniform Commercial Code that provide clear and uniform rules for the ownership, control, and enforceability of rights relating to digital assets. (c) Study Not later than 360 days after the date of enactment of this Act, the Commission shall conduct a comprehensive study of the regulatory treatment of tokenized securities, including custody standards, interagency coordination, cross-border coordination, and consumer protection. (d) Parity in regulatory treatment (1) In general Subject to paragraph (2), a tokenized security shall be treated, for all regulatory purposes, as the security that the tokenized security represents, except as otherwise provided by— (A) section 106(a); or (B) a rule, regulation, or order issued by the Commission. (2) Requirement A rule, regulation, or order described in paragraph (1)(B) may only be issued by the Commission to adapt the manner in which the applicable regulatory requirements are satisfied, to the extent necessary or appropriate— (A) in light of the unique technological or other characteristics of digital assets or substantially similar technology; and (B) consistent with— (i) what is necessary or appropriate in the public interest; and (ii) protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation. (e) Prohibition on misrepresentation Any statement or omission with respect to any material fact that is made by a person in connection with the offer, sale, or other representation regarding a tokenized security shall be subject to the securities laws, including applicable anti-fraud or anti-manipulation provisions under the securities laws. (f) Agency action for tokenized securities (1) In general The Commission may issue rules governing tokenized securities pursuant to the requirements of this section. (2) Requirements Rules issued under this subsection may address, consistent with sections 106 and 107, how requirements applicable to an underlying security apply to custody, books and records, reconciliation with transfer agents or other recordkeepers, auditability, settlement finality, treatment of chain reorganizations, and other operational risks arising from the use of distributed ledger technology or comparable technology. (g) Rule of construction regarding enforcement Nothing in this section may be construed to prevent the Commission from enforcing the anti-fraud and anti-manipulation provisions of the securities laws, and the rules issued under the securities laws, with respect to tokenized securities, provided that the elements of those provisions are satisfied. (h) Savings clauses (1) Tokenized security Any asset that is a security under the securities laws shall not cease to be a security solely because the asset is issued, recorded, represented, or transferred using distributed ledger technology or comparable technology. (2) Effect on State law Nothing in this section may be construed, interpreted, or applied in a manner that preempts, supersedes, invalidates, or otherwise affects any State property transfer rules, laws, regulations, or common law principles relating to the transfer or recording of real tangible or intangible assets or interests therein. (3) Rulemakings, orders, and other actions Notwithstanding any other provision of this section, section 106 shall apply to any rulemaking, order, or other action of the Commission under this section. (4) No limit of ability to offer or sell Nothing in this section, or any rule, regulation, or order promulgated under this section, may be construed to limit the ability of any person to offer or sell any tokenized security, consistent with the securities laws.

a financial product, service, or activity— (A) that makes substantial use of artificial intelligence

On and after the date that is 1 year after the date of enactment of this Act

After the expiration of the 120-day extension period, if the agency has not made a determination on the application, the application will automatically be deemed approved and effective.

may not take an enforcement action related to the proposed AI test project against the applicant earlier than the date that is 30 days after

fraud or market manipulation or for engaging in an unsafe or unsound practice relating to an AI test project.

(5) Financial regulatory agency The term financial regulatory agency means— (A) the Board of Governors of the Federal Reserve System; (B) the Federal Deposit Insurance Corporation; (C) the Office of the Comptroller of the Currency; (D) the Bureau of Consumer Financial Protection; (E) the National Credit Union Administration; and (F) the Federal Housing Finance Agency. (6) Regulated entity The term regulated entity means an entity regulated by any financial regulatory agency.

(IV) Regulations of other agencies (aa) In general A regulated entity may submit an application under this subparagraph that includes an alternative compliance strategy for a regulation issued or enforced by a financial regulatory agency that is not the appropriate financial regulatory agency for the regulated entity. (bb) Requirements An application described in item (aa) shall be subject to the same requirements as an application described in subclause (II), except that— (AA) the regulated entity shall submit the application to the appropriate financial regulatory agency and the financial regulatory agency that issued or enforces the regulation that is the subject of the alternative compliance strategy; and (BB) the AI test project may not take effect unless the appropriate financial regulatory agency and any other financial regulatory agency that issued or enforces the regulation that is the subject of the alternative compliance strategy jointly approve the application using the process described in clause (ii).

Developing, publishing, or constituting— (A) a distributed ledger system

The Commission shall, pursuant to notice and comment rulemaking, clarify the circumstances

does not have the legal right or the unilateral and independent ability to control, initiate upon demand, or effectuate transactions involving digital assets

acts with the specific intent to transfer, on behalf of another person, funds that are known by the initial person to be

shall apply to conduct occurring before, on, or after the date of enactment of this Act.

(b) Application to software developers Notwithstanding any other provision of this Act, a person shall not be subject to this Act and the regulations promulgated under this Act solely based on the person engaging in any of the following activities, whether singly or in combination, in relation to the operation of a distributed ledger system or any component thereof: (1) Compiling network transactions or relaying, searching, sequencing, validating, or acting in a similar capacity. (2) Providing computational work, operating a node or oracle service, or procuring, offering, or utilizing network bandwidth, or providing other similar incidental services. .

(g) Federal preemption (1) In general Notwithstanding any other provision of law, no securities, commodities, or digital assets law of any State (or of any political subdivision of a State) shall apply to an activity described in subsection (b). (2) Rule of construction Nothing in paragraph (1) may be construed to apply to the anti-money laundering, anti-fraud, or anti-manipulation authorities of a State (or of any political subdivision of a State). .

604. Blockchain Regulatory Certainty Act (a) Short title This section may be cited as the Blockchain Regulatory Certainty Act. (b) Definitions In this section: (1) Developer or provider The term developer or provider means any person or business that creates or publishes software to facilitate the creation of, or provide maintenance to, a distributed ledger, or a service associated with a distributed ledger. (2) Distributed ledger service The term distributed ledger service means any information, transaction, or computing service or system that provides or enables access to a distributed ledger system by multiple users, including a service or system that enables users to send, receive, exchange, or store digital assets described by distributed ledger systems. (3) Non-controlling developer or provider The term non-controlling developer or provider means a developer or provider of a distributed ledger 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 to which users are entitled, without the approval, consent, or direction of any third party. (c) Treatment Notwithstanding any other provision of law, a non-controlling developer or provider— (1) shall not be treated as— (A) a money transmitting business, as defined in section 5330 of title 31, United States Code, and the regulations promulgated under that section; or (B) engaged in money transmitting, as defined in section 1960 of title 18, United States Code; and (2) on or after the date of enactment of this Act, shall not be otherwise subject to any registration requirement that is substantially similar to a requirement (as in effect on the day before the date of enactment of this Act) that applies to an entity described in subparagraph (A) or (B) of paragraph (1), solely on the basis of— (A) creating or publishing software to facilitate the creation of, or providing maintenance services to, a distributed ledger or a service associated with a distributed ledger; (B) providing hardware or software to facilitate a customer’s own custody or safekeeping of the digital assets of the customer; or (C) providing infrastructure support to maintain a distributed ledger service. (d) Clarification of treatment Subsection (c) shall not modify the application of section 1960(b)(1)(C) of title 18, United States Code, to any person (referred to in this subsection as the initial person) that acts with the specific intent to transfer, on behalf of another person, funds that are known by the initial person to be— (1) derived from a criminal offense; or (2) intended to be used to promote or support unlawful activity. (e) Rules of construction Nothing in this section may be construed— (1) to affect whether a developer or provider of a distributed ledger service is otherwise subject to classification or treatment as a money transmitter, or as engaged in money transmitting, under applicable Federal or State law, including laws relating to anti-money laundering or countering the financing of terrorism, based on conduct outside the scope of subsection (c); (2) to affect whether a developer or provider is otherwise subject to classification or treatment as a financial institution under subchapter II of chapter 53 of title 31, United States Code, this Act, any amendment made by this Act, or any Act enacted after the date of enactment of this Act, based on conduct outside the scope of subsection (c); (3) to limit or expand any law pertaining to intellectual property; (4) to prevent any State from enforcing any State law that is consistent with this section; or (5) to create a cause of action or impose liability under any State or local law that is inconsistent with this section.

unless the transaction, in substance, involves all of the elements of an investment contract.

a mass-minted series of items with substantially similar or nearly identical traits that are marketed or sold interchangeably

a fractionalized interest in a nonfungible token

A Federal agency may not prohibit, restrict, or otherwise impair the ability of a covered user to self-custody digital assets using a self-hosted wallet or other means to conduct transactions for any lawful purpose.

any enforcement action or special measure authorized under applicable law

602. Safe harbor for nonfungible tokens (a) Definitions In this section: (1) Nonfungible token The term nonfungible token means a digital asset recorded on a distributed ledger that— (A) is individually identifiable and distinguishable from any other digital asset; (B) represents ownership of, or rights in, a work of authorship, art, a collectible, a membership, an access credential, a certificate of authenticity, an in-game or in-application item, or another similar specific item or discrete digital or physical good, service, or benefit; (C) is not interchangeable on a 1-to-1 basis with any other token or digital asset; and (D) may be bought, sold, or transferred for consideration. (2) Promoter The term promoter means a person or group that manages, controls, or operates an enterprise in which capital is invested, or any person or group acting on behalf of such a person or group with respect to such an enterprise, including an affiliate, agent, or coordinated actor that contributes to the capital raising efforts of the enterprise. (b) Safe harbor (1) In general Except as provided in paragraph (3), the offer, sale, resale, transfer, or conveyance of a nonfungible token shall not be deemed to constitute an offer, sale, or distribution of a security or investment contract under the Securities Act of 1933 (15 U.S.C. 77a et seq.), the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), or any equivalent State law, unless the transaction, in substance, involves all of the elements of an investment contract. (2) Rules of construction Neither of the following shall be considered to be a security under the Securities Act of 1933 (15 U.S.C. 77a et seq.) or the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.): (A) The resale or secondary market transfer of a nonfungible token, where the payment for that resale or transfer does not flow to a promoter or is not used to raise new capital for an enterprise. (B) A nonfungible token that serves as a collectible, membership right, event ticket, access credential, or other non-investment-based use case solely because the nonfungible token may appreciate in value or depend in part on the continued efforts or the reputation of the creator or issuer of the nonfungible token. (3) Exceptions The safe harbor under paragraph (1) shall not apply to— (A) a mass-minted series of items with substantially similar or nearly identical traits that are marketed or sold interchangeably; (B) a fractionalized interest in a nonfungible token; or (C) an interest representing a beneficial or economic claim on a nonfungible token or an asset that a nonfungible token represents. (4) Reliance; prospective effect (A) Reliance A person, other than an originator or related person, that reasonably and in good faith relies on the safe harbor under this subsection shall not be subject to any civil or administrative penalties. (B) Prospective effect Any determination by the Commission that the safe harbor under this subsection does not apply to a particular circumstance shall— (i) be prospective only; and (ii) take effect not earlier than 60 days after the date on which the Commission publicly posts that determination.

605. Keep Your Coins Act (a) Short title This section may be cited as the Keep Your Coins Act. (b) Definitions In this section: (1) Covered user The term covered user means a United States individual who obtains digital assets to purchase goods or services on behalf of that individual, without regard to the method in which that individual obtained those digital assets. (2) Self-hosted wallet The term self-hosted wallet means a digital interface— (A) that is used to secure and transfer digital assets; and (B) under which the owner of digital assets secured and transferred under subparagraph (A) retains independent control over those digital assets. (c) Self-Custody A Federal agency may not prohibit, restrict, or otherwise impair the ability of a covered user to self-custody digital assets using a self-hosted wallet or other means to conduct transactions for any lawful purpose. (d) Rule of construction Nothing in this section may be construed to limit the authority of the Secretary of the Treasury, the 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— (1) 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 (2) any other law relating to illicit finance, money laundering, terrorism financing, or United States sanctions.

701. Customer property protections for ancillary assets and digital commodities in bankruptcy (a) Definitions for stockbroker liquidation (1) In general Section 741 of title 11, United States Code, is amended— (A) by redesignating paragraphs (5) through (9) as paragraphs (7) through (11), respectively; (B) by redesignating paragraphs (1) through (4) as paragraphs (2) through (5), respectively; (C) by inserting before paragraph (2), as so redesignated, the following: (1) ancillary asset has the meaning given that term in section 2 of the Digital Asset Market Clarity Act; ; (D) in paragraph (3), as so redesignated— (i) in subparagraph (A)(vi), by striking and at the end; (ii) by redesignating subparagraph (B) as subparagraph (C); (iii) by inserting after subparagraph (A) the following: (B) entity with whom a person deals as principal or agent and that has a claim against such person on account of a digital commodity or an ancillary asset received, acquired, or held by such person from or for the securities account or accounts of such entity for 1 or more of the purposes identified in clauses (i) through (vi) of subparagraph (A) of this paragraph; and ; and (iv) in subparagraph (C), as so redesignated— (I) in clause (i)— (aa) by inserting , ancillary asset, or digital commodity after security; and (bb) by inserting or (B) after subparagraph (A); and (II) in clause (ii), by inserting an ancillary asset, a digital commodity, after a security,; (E) in paragraph (5), as so redesignated, in the matter preceding subparagraph (A), by inserting ancillary asset, digital commodity, after cash, security, each place it appears; (F) by inserting after paragraph (5), as so redesignated, the following: (6) digital commodity has the meaning given that term in section 2 of the Digital Asset Market Clarity Act; ; and (G) in paragraph (8), as so redesignated, in subparagraph (A)(i), by inserting , ancillary asset positions, and digital commodities positions after securities positions. (b) Extent of customer claims Section 746(b) of title 11, United States Code, is amended, in the matter preceding paragraph (1), by striking cash or a security and inserting cash, a security, an ancillary asset, or a digital commodity. (c) Technical and conforming amendments (1) Section 546(e) of title 11, United States Code, is amended— (A) by striking section 741(7) and inserting section 741; and (B) by striking section 761(4) and inserting section 761. (2) Section 561(a) of title 11, United States Code, is amended— (A) in paragraph (1), by striking section 741(7) and inserting section 741; and (B) in paragraph (2), by striking section 761(4) and inserting section 761. (3) Section 752(c) of title 11, United States Code, is amended by striking section 741(4)(B) and inserting section 741(5)(B). (d) Clarifications For the avoidance of doubt— (1) nothing in this section or an amendment made by this section may be construed to apply to securities or cash held by a broker-dealer and such assets and related claims shall be governed exclusively by the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.); (2) nothing in this section or an amendment made by this section may be construed to apply to deposits held by a bank or commodity contracts, which shall be governed by the relevant applicable law; and (3) in any liquidation proceeding under subchapter III or IV of chapter 7 of title 11, United States Code, those provisions shall be construed to treat ancillary assets and digital commodities held for customers as customer property governed by title 11, United States Code, and required to be distributed according to such title.

702. Insolvency safe harbor (a) Definitions In this section: (1) Commodity broker; financial institution; financial participant; securities clearing agency; stockbroker The terms commodity broker, financial institution, financial participant, securities clearing agency, and stockbroker have the meanings given those terms in section 101 of title 11, United States Code. (2) Commodity contract The term commodity contract means a commodity contract described in paragraph (4)(A) of section 761 of title 11, United States Code. (b) Safe harbor A purchase, sale, or loan of, a margin loan or other extension of credit on, or a repurchase, reverse repurchase, or other transaction involving, a unit of a digital commodity occurring with a commodity broker, stockbroker, financial institution, financial participant, or securities clearing agency shall be deemed to be— (1) a commodity contract for purposes of— (A) sections 362(b)(6), 362(o), 546(e), 553, 556, 561, and 562 of title 11, United States Code; (B) section 11 of the Federal Deposit Insurance Act (12 U.S.C. 1821); (C) section 210 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5390); and (D) section 5(b)(2)(C) of the Securities Investor Protection Act of 1970 (15 U.S.C. 78eee(b)(2)(C)); and (2) a margin payment for purposes of section 548(d)(2)(B) of title 11, United States Code.

guidance on recognizing fraudulent schemes and instructions for reporting suspected fraud.

Not later than 270 days after the date of enactment of this Act

written disclosures regarding the treatment of customer assets in the event of an insolvency, resolution, or liquidation proceeding

Nothing in this Act, or any amendment made by this Act, may be construed as limiting or abridging the jurisdiction of the Federal Trade Commission

the efficacy of current financial literacy efforts with a focus on rural communities and communities with majority-minority populations

801. Educational materials The Commission and the Commodity Futures Trading Commission shall require digital asset intermediaries to provide clear and accessible educational materials to the public, including— (1) an overview of how distributed ledger systems function; (2) a description of common risks associated with digital assets; (3) a description of the differences between digital asset markets and traditional financial markets; (4) information on reporting and disclosure requirements related to digital asset transactions and securities which may be accompanied by network tokens or ancillary assets; and (5) guidance on recognizing fraudulent schemes and instructions for reporting suspected fraud.

802. Savings clauses (a) Definitions In this section: (1) Digital consumer token The term digital consumer token means a digital asset that is primarily acquired for a consumptive purpose, including redemption for a specified good or service at the time of sale or within a reasonable time after sale, as defined by the Federal Trade Commission pursuant to rule. (2) Nonfungible token The term nonfungible token means a digital asset recorded on a distributed ledger that— (A) is individually identifiable and distinguishable from any other digital asset; (B) represents ownership of, or rights in, a work of authorship, art, a collectible, a membership, an access credential, a certificate of authenticity, an in-game or in-application item, or another similar specific item or discrete digital or physical good, service, or benefit; (C) is not interchangeable on a 1-to-1 basis with any other token or digital asset; and (D) may be bought, sold, or transferred for consideration. (b) Federal Trade Commission Nothing in this Act, or any amendment made by this Act, may be construed as limiting or abridging the jurisdiction of the Federal Trade Commission with respect to— (1) investigations or enforcement actions under the Federal Trade Commission Act (15 U.S.C. 41 et seq.) relating to unfair or deceptive acts or practices by persons relating to commerce in nonfungible tokens or digital consumer tokens, including deceptive acts with respect to advertising and endorsements relating to nonfungible tokens and digital consumer tokens; (2) highlighting best practices relating to commerce in nonfungible tokens or digital consumer tokens; (3) promoting responsible innovation; (4) consumer education relating to fraudulent digital asset activity; or (5) investigating unlawful restraints of trade in the digital asset industry. (c) Rule of construction Nothing in this Act, or any amendment made by this Act, may be construed to expand, contract, or otherwise affect the jurisdiction or authority with respect to the Federal consumer financial laws under the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481 et seq.), as in effect on the day before the date of enactment of this Act, including with respect to subsection (i) or (j) of section 1027 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5517).

shall not create any legal rights or obligations, and shall not limit or delay the independent authority of either of the Commissions.

provide the Committee with a formal written response not later than 90 days

Subject to the availability of funds, the Commissions shall jointly fund the Committee.

The Committee shall remain in effect for 10 years

coordinated supervision and enforcement with respect to registrants

(a) Establishment The Commodity Futures Trading Commission and the Commission (referred to collectively in this section as the Commissions) shall jointly establish the Joint Advisory Committee on Digital Assets (referred to in this section as the Committee). (b) Purpose (1) In general The Committee shall— (A) provide the Commissions with official findings and nonbinding recommendations on— (i) the rules, regulations, oversight, and other matters of the Commissions relating to digital assets, including with respect to regulatory harmonization between the Commissions; (ii) how to further the regulatory harmonization of digital asset policy between the Commissions or areas in which that harmonization should occur; and (iii) the implementation by the Commissions of this Act, and the amendments made by this Act, including with respect to regulatory harmonization between the Commissions, memoranda of understanding, and the CFTC-SEC Micro-Innovation Sandbox established pursuant to section 501; (B) develop and share objective methods and best practices for evaluating digital asset networks and activities, including, as appropriate, technical features, economic design, and implications for market integrity, investor protection, and operational resilience; and (C) issue nonbinding recommendations to assist in resolving disputes between the Commissions. (c) Review by the commissions Each of the Commissions shall— (1) review the findings and nonbinding recommendations provided under subsection (b)(1)(A); (2) promptly publish a public statement each time the Committee submits a finding or nonbinding recommendation to the applicable Commission under subsection (b)(1)(A) that— (A) assesses the finding or recommendation; and (B) if applicable, discloses the action or decision not to take action; and (3) provide the Committee with a formal written response not later than 90 days after the date of submission of a finding or nonbinding recommendation under subsection (b)(1)(A).

there is authorized to be appropriated to the Financial Crimes Enforcement Network of the Department of the Treasury the following

(1) $30,000,000 for fiscal year 2026, to remain available until September 30, 2027. (2) $30,000,000 for fiscal year 2027, to remain available until September 30, 2028. (3) $30,000,000 for fiscal year 2028, to remain available until September 30, 2029. (4) $30,000,000 for fiscal year 2029, to remain available until September 30, 2030. (5) $30,000,000 for fiscal year 2030, to remain available until September 30, 2031.

may pay an annual incentive premium of not more than 20 percent of the annual rate of basic pay

the aggregate amount by which allocations to eligible recipients are decreased under subparagraph (B) for that fiscal year

903. FinCEN appropriations (a) Authorization of appropriations For the purposes of developing policy relating to digital assets, acquiring information technology resources, funding the operations described in sections 202 and 203 of this Act, and enforcement of the laws within its jurisdiction relating to digital assets, there is authorized to be appropriated to the Financial Crimes Enforcement Network of the Department of the Treasury the following: (1) $30,000,000 for fiscal year 2026, to remain available until September 30, 2027. (2) $30,000,000 for fiscal year 2027, to remain available until September 30, 2028. (3) $30,000,000 for fiscal year 2028, to remain available until September 30, 2029. (4) $30,000,000 for fiscal year 2029, to remain available until September 30, 2030. (5) $30,000,000 for fiscal year 2030, to remain available until September 30, 2031. (b) Incentive premium for highly qualified individuals Notwithstanding any other provision of law or regulation, the Director of the Financial Crimes Enforcement Network of the Department of the Treasury may pay an annual incentive premium of not more than 20 percent of the annual rate of basic pay for a position if necessary to attract highly qualified individuals for positions that the Director has certified to the Director of the Office of Personnel Management reflect the needs of the Financial Crimes Enforcement Network.

the Secretary shall decrease the amount that would otherwise be allocated to the eligible recipient under section 106 for that fiscal year by 10 percent.

an eligible recipient for which the current annual growth rate is at or above 4 percent.

the covered recipient lacks the legal authority to enact or update zoning and permitting ordinances.

Subsection (b) shall take effect beginning with the third full fiscal year after the date of enactment of this Act and remain in effect through fiscal year 2043.

This section shall not apply to amounts appropriated before the date of enactment of this Act.

(3) Eligible recipient The term eligible recipient means any covered recipient unless— (A) (i) the median Small Area Fair Market Rent in the jurisdiction of the covered recipient is at or below the 60th percentile of median Small Area Fair Market Rents in the jurisdictions of all covered recipients; and (ii) the median home value in the jurisdiction of the covered recipient is below the median home value for the United States; (B) the annual rental vacancy rate in the jurisdiction of the covered recipient is greater than the national annual rental vacancy rate for the most recent year available, as published by the Bureau of the Census; (C) during the 1-year period preceding the date on which the Secretary allocates funds under section 106, the jurisdiction of the covered recipient has been the subject of a major disaster or emergency declaration under section 401 or 501, respectively, of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170, 5191); or (D) the covered recipient lacks the legal authority to enact or update zoning and permitting ordinances.

(A) Housing growth improvement rate at or above median; extremely high-growth recipients (i) In general If, with respect to a fiscal year for which the allocation under section 106 is being determined, the housing growth improvement rate for an eligible recipient is at or above the median housing growth improvement rate for all eligible recipients other than extremely high-growth recipients, or if an eligible recipient is an extremely high-growth recipient, the Secretary shall allocate to the eligible recipient for that fiscal year, in addition to the amount that would otherwise be allocated to the eligible recipient under section 106, a bonus amount, as determined under clause (ii) of this subparagraph. (ii) Bonus amount For purposes of clause (i), the bonus amount for an eligible recipient for a fiscal year shall be equal to the product of— (I) the aggregate amount by which allocations to eligible recipients are decreased under subparagraph (B) for that fiscal year; and (II) the quotient of— (aa) the number of housing units, as of the third quarter of the preceding fiscal year, in the jurisdiction of the eligible recipient, as calculated by the Secretary; and (bb) the number of housing units, as of the third quarter of the preceding fiscal year, in the jurisdictions of all eligible recipients that receive a bonus amount under this paragraph, as calculated by the Secretary.

(a) Definitions In this section: (1) Covered recipient The term covered recipient means a metropolitan city or urban county, as those terms are defined in section 102 of the Housing and Community Development Act of 1974 (42 U.S.C. 5302), that receives funds under section 106. (2) Current annual growth rate The term current annual growth rate, with respect to an eligible recipient and a fiscal year, means the average annual percentage increase in the number of housing units in the jurisdiction of the eligible recipient, as calculated by the Secretary, during the period— (A) beginning with the third quarter of the sixth preceding fiscal year; and (B) ending with the third quarter of the preceding fiscal year. (3) Eligible recipient The term eligible recipient means any covered recipient unless— (A) (i) the median Small Area Fair Market Rent in the jurisdiction of the covered recipient is at or below the 60th percentile of median Small Area Fair Market Rents in the jurisdictions of all covered recipients; and (ii) the median home value in the jurisdiction of the covered recipient is below the median home value for the United States; (B) the annual rental vacancy rate in the jurisdiction of the covered recipient is greater than the national annual rental vacancy rate for the most recent year available, as published by the Bureau of the Census; (C) during the 1-year period preceding the date on which the Secretary allocates funds under section 106, the jurisdiction of the covered recipient has been the subject of a major disaster or emergency declaration under section 401 or 501, respectively, of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170, 5191); or (D) the covered recipient lacks the legal authority to enact or update zoning and permitting ordinances. (4) Extremely high-growth recipient The term extremely high-growth recipient means an eligible recipient for which the current annual growth rate is at or above 4 percent. (5) Housing growth improvement rate The term housing growth improvement rate, with respect to an eligible recipient and a fiscal year, means the quotient of— (A) (i) the current annual growth rate of the eligible recipient, minus (ii) the prior annual growth rate of the eligible recipient; and (B) the sum obtained by adding the absolute values of the current annual growth rate and the prior annual growth rate of the eligible recipient. (6) Prior annual growth rate The term prior annual growth rate, with respect to an eligible recipient and a fiscal year, means the average annual percentage increase in the number of housing units in the jurisdiction of the eligible recipient, as calculated by the Secretary, during the period— (A) beginning with the third quarter of the 11th preceding fiscal year; and (B) ending with the third quarter of the sixth preceding fiscal year. (7) Secretary The term Secretary means the Secretary of Housing and Urban Development. (8) Section 106 The term section 106 means section 106 of the Housing and Community Development Act of 1974 (42 U.S.C. 5306).

shall take effect on the date that is 360 days after the date of enactment of this Act

that provision shall take effect on the later of— (1) the date that is 360 days after the date of enactment of this Act; or (2) the date that is 60 days after the publication in the Federal Register of the final rule implementing the provision.

Except as otherwise provided, not later than 1 year after the date of enactment of this Act, each applicable regulator shall adopt rules

Source snapshot updated 2026-09-17T17:09:18Z.

2025-07-17: On passage Passed by the Yeas and Nays: 294 - 134 (Roll no. 199).

2026-06-01: Committee on Banking, Housing, and Urban Affairs. Reported by Senator Scott SC, with an amendment in the nature of a substitute. Without written report.

2026-09-15: Cloture on the motion to proceed to the measure not invoked in Senate by Yea-Nay Vote. 49 - 50. Record Vote Number: 234. (CR S4706)

2026-09-15: Motion by Senator Tillis to reconsider the vote by which cloture on the motion to proceed to the measure was not invoked (Record Vote No. 234) entered in Senate.