Sec. 101. Definitions

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Subtitle VI of title 31, United States Code, is amended by adding after chapter 97 the following: Sec. 9801. Definitions. In this chapter: The term appropriate commission means the Commodity Futures Trading Commission or the Securities and Exchange Commission, or both, if applicable, based on the commission that has statutory jurisdiction over a crypto asset intermediary and acts as the primary registration or licensing authority for that intermediary. The term crypto asset — means a natively electronic asset that— confers economic, proprietary, or access rights or powers; is recorded using cryptographically secured distributed ledger technology, or any similar analogue; and does not represent, derive value from, or maintain backing by, a financial asset (except other crypto assets); and does not include— a payment stablecoin, except as otherwise provided by this chapter; and other interests in financial assets (except other crypto assets) represented on a distributed ledger or any similar analogue.

The term crypto asset intermediary — means— a person who holds a license, registration, or other similar authorization, as specified by this chapter, the Commodity Exchange Act ( 7 U.S.C. 1 et seq. ), the Securities Act of 1933 ( 15 U.S.C. 77a et seq. ), the Corporation of Foreign Bondholders Act, 1933 ( 15 U.S.C. 77bb et seq. ), the Trust Indenture Act of 1939 ( 15 U.S.C. 77aaa et seq. ), the Securities Exchange Act of 1934 ( 15 U.S.C. 78a et seq. ), the Securities Investor Protection Act of 1970 ( 15 U.S.C. 78aaa et seq. ), the Investment Company Act of 1940 ( 15 U.S.C. 80a–1 et seq. ), the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–1 ), or the Omnibus Small Business Capital Formation Act of 1980 ( 15 U.S.C. 80c ), that conducts market activities relating to crypto assets; or a person who is required by law to hold a license, registration, or other similar authorization described in clause (i); and does not include a depository institution.

The term depository institution has the meaning given the term in section 19(b)(1) of the Federal Reserve Act ( 12 U.S.C. 461(b)(1) ). The term distributed ledger technology means technology that enables the operation and use of a ledger that— is shared across a set of distributed nodes that participate in a network and store a complete or partial replica of the ledger; is synchronized between the nodes; has data appended to the ledger by following the specified consensus mechanism of the ledger; may be accessible to anyone or restricted to a subset of participants; and may require participants to have authorization to perform certain actions or require no authorization.

The term payment stablecoin means a claim represented on a distributed ledger or a similar analogue that is— redeemable, on demand, on a 1-to-1 basis for instruments denominated in United States dollars; issued by a business entity; accompanied by a statement from the issuer that the asset is redeemable, as specified in subparagraph (A), from the issuer or another identified person; backed by 1 or more financial assets (excluding other crypto assets), consistent with subparagraph (A); and intended to be used as a medium of exchange.

The term security has the meaning given the term in section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) ). The term smart contract — means— computer code deployed to a distributed ledger technology network that executes an instruction based on the occurrence or nonoccurrence of specified conditions; or any similar analogue; and includes taking possession or control of a crypto asset and transferring the asset or issuing executable instructions for these actions. .

The table of contents for subtitle VI of title 31, United States Code, is amended by adding at the end the following: 98. Crypto assets 9801 .

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