Sec. 404. Virtual digital asset service providers
221 words·~1 min read·
/bill/117/hr/4741/ih/section-404·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Secretary of the Treasury shall, not later than 270 days after the date of the enactment of this Act, issue a rule requiring virtual asset service providers (as defined in section 5312(a) of title 31, United States Code), which are engaged in services which are available in the United States and to United States persons, even if the provider is located outside the United States, related to digital asset securities and digital assets, that such persons shall be required to— register with the Securities and Exchange Commission or with the Commodity Futures Trading Commission, as appropriate and in such capacities as are appropriate; with respect to digital asset securities, meet the customer protection and account custody rules which are applicable to Securities Exchange Commission registered broker-dealers for customer funds and securities; and with respect to digital assets, meet the customer account custody and segregated funds rules which are applicable to Commodity Futures Trading Commission registered futures commission merchants.
The customer accounts custody requirements referenced in subsection
(a)shall include, but are not limited to, using registered and qualified custodians, proper customer account labeling and identification, minimum of quarterly account statements being issued to customers by the registered and qualified custodian, annual surprise audit requirements and annual audits by accounting firms which are registered with the Public Company Accounting Oversight Board.