Sec. 503. CFTC–SEC Joint Advisory Committee on Digital Assets
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The Commodity Futures Trading Commission and the Securities and Exchange Commission (in this section referred to as the Commissions ) shall jointly establish the Joint Advisory Committee on Digital Assets (in this section referred to as the Committee ). The Committee shall— provide the Commissions with advice on the rules, regulations, and policies of the Commissions related to digital assets; further the regulatory harmonization of digital asset policy between the Commissions; examine and disseminate methods for describing, measuring, and quantifying digital asset— decentralization; functionality; information asymmetries; and transaction and network security; examine the potential for digital assets, blockchain systems, and distributed ledger technology to improve efficiency in the operation of financial market infrastructure and better protect financial market participants, including services and systems which provide— greater transparency regarding customer funds; reduced transaction cost; and increased access to financial market services; and discuss the implementation by the Commissions of this Act and the amendments made by this Act.
Each Commission shall— review the findings and recommendations of the Committee; each time the Committee submits a finding or recommendation to a Commission, promptly issue a public statement— assessing the finding or recommendation of the Committee; disclosing the action or decision not to take action made by the Commission in response to a finding or recommendation; and the reasons for the action or decision not to take action; and each time the Committee submits a finding or recommendation to a Commission, provide the Committee with a formal response to the finding or recommendation not later than 3 months after the date of the submission of the finding or recommendation.
The Commissions shall appoint at least 20 nongovernmental stakeholders with a wide diversity of opinion and who represent a broad spectrum of interests representing the digital asset ecosystem, equally divided between the Commissions, to serve as members of the Committee. The appointees shall include— digital asset issuers; persons registered with the Commissions and engaged in digital asset related activities; individuals engaged in academic research relating to digital assets; and digital asset users.
Members appointed under subparagraph
(A)shall not be deemed to be employees or agents of a Commission solely by reason of membership on the Committee. There shall be 2 co-designated Federal officers of the Committee, as follows: The Director of LabCFTC of the Commodity Futures Trading Commission. The Director of the Strategic Hub for Innovation and Financial Technology. The duties required by chapter 10 of title 5, United States Code, to be carried out by a designated Federal officer with respect to the Committee shall be shared by the co-designated Federal officers of the Committee. The Committee members shall elect, from among the Committee members— a chair; a vice chair; a secretary; and an assistant secretary. Each member elected under subparagraph
(A)in a 2-year period referred to in section 1013(b)(2) of title 5, United States Code, shall serve in the capacity for which the member was so elected, until the end of the 2-year period. All Committee members appointed under subsection (d)(1) shall— serve without compensation; and while away from the home or regular place of business of the member in the performance of services for the Committee, be allowed travel expenses, including per diem in lieu of subsistence, in the same manner as persons employed intermittently in the Government service are allowed expenses under section 5703(b) of title 5, United States Code. The co-designated Federal officers shall serve without compensation in addition to that received for their services as officers or employees of the United States. The Committee shall meet— not less frequently than twice annually; and at such other times as either Commission may request. Section 1013(a)(2) of title 5, United States Code, shall not apply to the Committee. The Commissions shall— adopt a joint charter for the Committee within 90 days after the date of the enactment of this section; appoint members to the Committee within 120 days after such date of enactment; and hold the initial meeting of the Committee within 180 days after such date of enactment. The Commissions may jointly fund the Committee.