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Code · BILL · 118th Congress · H.R. 4763 (Referred in Senate) — To provide for a system of regulation of digital assets by the Commodity Futures Trading Commission and the Securitie... · Sec. 103

Sec. 103. Definitions under the Commodity Exchange Act

1,399 words·~6 min read·/bill/118/hr/4763/rfs/section-103·

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Section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a ) is amended— in paragraph (10)(A)— by redesignating clauses
(iii)and
(iv)as clauses
(iv)and (v), respectively; and by inserting after clause
(ii)the following: digital commodity; ; in paragraph (11)— in subparagraph (A)(i)— by redesignating subclauses
(III)and
(IV)as subclauses
(IV)and (V), respectively; and by inserting after subclause
(II)the following: digital commodity; ; and by redesignating subparagraph
(B)as subparagraph
(C)and inserting after subparagraph
(A)the following: The term commodity pool operator does not include— a decentralized governance system; or any excluded activity, as described in section 4v. ; in paragraph (12)(A)(i)— in subclause (II), by adding at the end a semicolon; by redesignating subclauses
(III)and
(IV)as subclauses
(IV)and (V), respectively; and by inserting after subclause
(II)the following: a digital commodity; ; in paragraph (40)— by striking and at the end of subparagraph (E); by striking the period at the end of subparagraph
(F)and inserting ; and ; and by adding at the end the following: a digital commodity exchange registered under section 5i. ; and by adding at the end the following: Except as provided in subparagraph (B), the term associated person of a digital commodity broker means a person who is associated with a digital commodity broker as a partner, officer, employee, or agent (or any person occupying a similar status or performing similar functions) in any capacity that involves— the solicitation or acceptance of an order for the purchase or sale of a digital commodity; or the supervision of any person engaged in the solicitation or acceptance of an order for the purchase or sale of a digital commodity. The term associated person of a digital commodity broker does not include any person associated with a digital commodity broker the functions of which are solely clerical or ministerial. Except as provided in subparagraph (B), the term associated person of a digital commodity dealer means a person who is associated with a digital commodity dealer as a partner, officer, employee, or agent (or any person occupying a similar status or performing similar functions) in any capacity that involves— the solicitation or acceptance of an order for the purchase or sale of a digital commodity; or the supervision of any person engaged in the solicitation or acceptance of an order for the purchase or sale of a digital commodity. The term associated person of a digital commodity dealer does not include any person associated with a digital commodity dealer the functions of which are solely clerical or ministerial. The term Bank Secrecy Act means— section 21 of the Federal Deposit Insurance Act ( 12 U.S.C. 1829b ); chapter 2 of title I of Public Law 91–508 ( 12 U.S.C. 1951 et seq. ); and subchapter II of chapter 53 of title 31, United States Code. The term digital commodity means— any unit of a digital asset held by a person, other than the digital asset issuer, a related person, or an affiliated person, before the first date on which each blockchain system to which the digital asset relates is a functional system and certified to be a decentralized system under section 44 of the Securities Exchange Act of 1934, that was— issued to the person through an end user distribution described under section 42(d)(1) of the Securities Exchange Act of 1934; or acquired by such person in a transaction that was executed on a digital commodity exchange; any unit of a digital asset held by a person, other than the digital asset issuer, a related person, or an affiliated person, after the first date on which each blockchain system to which the digital asset relates is a functional system and certified to be a decentralized system under section 44 of the Securities Exchange Act of 1934; and any unit of a digital asset held by a related person or an affiliated person during any period when any blockchain system to which the digital asset relates is a functional system and certified to be a decentralized system under section 44 of the Securities Exchange Act of 1934. The term digital commodity does not include a permitted payment stablecoin. If, before enactment of this paragraph, a Federal court in a Securities and Exchange Commission enforcement action determines that a digital asset transaction is not an offer or sale of a security, any unit of a digital asset transferred pursuant to the transaction shall be considered a digital commodity, unless the determination is overturned. The term digital commodity broker means any person who, in a digital commodity cash or spot market, is— engaged in soliciting or accepting orders for the purchase or sale of a unit of a digital commodity from a person that is not an eligible contract participant; engaged in soliciting or accepting orders for the purchase or sale of a unit of a digital commodity from a person on or subject to the rules of a registered entity; or registered with the Commission as a digital commodity broker. The term digital commodity broker does not include a person solely because the person— enters into a digital commodity transaction the primary purpose of which is to make, send, receive, or facilitate payments, whether involving a payment service provider or on a peer-to-peer basis; validates a digital commodity transaction, operates a node, or engages in similar activity to participate in facilitating, operating, or securing a blockchain system; or is a bank (as defined under section 3(a) of the Securities Exchange Act of 1934) engaging in certain banking activities with respect to a digital commodity in the same manner as a bank is excluded from the definition of a broker under section 3(a)(4) of the Securities Exchange Act of 1934. The term digital commodity custodian means an entity in the business of holding, maintaining, or safeguarding digital commodities for others. The term digital commodity dealer means any person who— in digital commodity cash or spot markets— holds itself out as a dealer in a digital commodity; makes a market in a digital commodity; has an identifiable business of dealing in a digital commodity as principal for its own account; or engages in any activity causing the person to be commonly known in the trade as a dealer or market maker in a digital commodity; has an identifiable business of entering into any agreement, contract, or transaction described in subsection (c)(2)(D)(i) involving a digital commodity; or is registered with the Commission as a digital commodity dealer. The term digital commodity dealer does not include a person solely because the person— enters into a digital commodity transaction with an eligible contract participant; enters into a digital commodity transaction on or through a registered digital commodity exchange; enters into a digital commodity transaction for the person’s own account, either individually or in a fiduciary capacity, but not as a part of a regular business; enters into a digital commodity transaction the primary purpose of which is to make, send, receive, or facilitate payments, whether involving a payment service provider or on a peer-to-peer basis; validates a digital commodity transaction, operates a node, or engages in similar activity to participate in facilitating, operating, or securing a blockchain system; or is a bank (as defined under section 3(a) of the Securities Exchange Act of 1934) engaging in certain banking activities with respect to a digital commodity in the same manner as a bank is excluded from the definition of a dealer under section 3(a)(5) of the Securities Exchange Act of 1934. The term digital commodity exchange means a trading facility that offers or seeks to offer a cash or spot market in at least 1 digital commodity. The terms affiliated person , blockchain system , decentralized governance system , decentralized system , digital asset , digital asset issuer , end user distribution , functional system , permitted payment stablecoin , related person , and restricted digital asset have the meaning given the terms, respectively, under section 2(a) of the Securities Act of 1933 ( 15 U.S.C. 77b(a) ). The terms digital asset broker and digital asset dealer have the meaning given those terms, respectively, under section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) ). The term mixed digital asset transaction means an agreement, contract, or transaction involving a digital commodity and— a security; or a restricted digital asset. .
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  • Pub. L. 91-508
Citation graph
cites case law
Sec. 103
Definitions under the Commodity Exchange Act
U.S.C.§ 1a
U.S.C.§ 1829b
U.S.C.§ 1951
U.S.C.§ 77b
U.S.C.§ 78c
Pub. L.Pub. L. 91-508
Cites 6Cited by 0 across 0 sources
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