Sec. 204. Plain language crypto asset customer agreements
532 words·~2 min read·
/bill/118/s/2281/is/section-204·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Chapter 98 of title 31, United States Code, as amended by section 203 of this Act, is amended by adding at the end the following: In consultation with the Securities and Exchange Commission and the Commodity Futures Trading Commission, the Bureau of Consumer Financial Protection shall issue guidance setting forth best practices for crypto asset intermediary standard customer agreements and all disclosures required to be made under title II of the Lummis-Gillibrand Responsible Financial Innovation Act and other applicable law, which shall require the customer agreements and disclosures, in accordance with applicable law, to be written in plain language that is easily comprehensible to customers.
Not later than 180 days after the date of enactment of this section, the Bureau shall create a publicly available database for the filing of all required documents under this section. The Securities and Exchange Commission, in consultation with the Bureau of Consumer Financial Protection, shall issue guidance setting forth best practices for issuers under section 42 of the Securities Exchange Act of 1934 to create plain language summaries of disclosures required to be made to customers under that section.
Each summary described in paragraph
(1)shall be— not more than 2 pages in length; and filed by the applicable issuer with the Securities and Exchange Commission at the same time as disclosures are filed under section 42 of the Securities Exchange Act of 1934. Crypto asset intermediaries shall file the following with the Bureau of Consumer Financial Protection: Not later than 180 days after the date of enactment of this section, the standard customer agreement used by the intermediary on the date of enactment. Any standard customer agreement used after the date of enactment of this section, but before the database under subsection
(a)becomes operational, to be filed not more than 60 days after the date on which the database under subsection
(a)becomes operational. Any standard customer agreement used after the database under subsection
(a)becomes operational, not more than 30 days after the date on which the agreement is first used by customers. For all crypto assets supported by the crypto asset intermediary, all disclosures made under section 42 of the Securities Exchange Act of 1934 and the accompanying summaries. Any other document that contains required disclosures under title II of the Lummis-Gillibrand Responsible Financial Innovation Act , not more than 30 days after the date on which the document is made available to customers. When filing a standard customer agreement under subsection (c), a crypto asset intermediary shall include a summary of changes (as compared to the previous filed version) that is in plain language, as determined by the Bureau of Consumer Financial Protection. A filing under this section may not be construed to permit the Bureau of Consumer Financial Protection to approve the contents of any standard customer agreement. The Bureau of Consumer Financial Protection shall adopt rules to implement this section, with a comment period of not less than 90 days. . The table of sections for chapter 98 of title 31, United States Code, as amended by section 203 of this Act, is amended by adding at the end the following: 9804. Plain language crypto asset customer agreements. .