Sec. 205. Basic consumer protection standards for crypto assets
423 words·~2 min read·
/bill/118/s/2281/is/section-205·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: Each crypto asset intermediary shall ensure that the scope of permissible transactions that may be undertaken with crypto assets belonging to a customer is disclosed clearly in a customer agreement. Each crypto asset intermediary shall provide clear notice to each customer and require acknowledgment of the following: Whether customer crypto assets are segregated from other customer assets and the manner of segregation.
How the crypto assets of the customer would be treated in a bankruptcy or insolvency scenario and the risk of loss. The time period and manner in which the intermediary is obligated to return the crypto asset of the customer upon request. Applicable fees imposed on a customer. The dispute resolution process of the intermediary. In this subsection: The term agreement includes the standard terms of service of a crypto asset intermediary. The term subsidiary proceeds includes forks, airdrops, staking, and other gains that accrue to a crypto asset through market transactions as a financial asset or as a result of being held in custody or safekeeping by a crypto asset intermediary.
Except as otherwise specified by an agreement with a customer, all subsidiary proceeds relating to crypto asset services provided to a customer shall accrue to the benefit of the customer in accordance with paragraph (3). A crypto asset intermediary may elect not to collect certain subsidiary proceeds if the election is disclosed in an agreement with the customer. A customer may request return of a crypto asset from an intermediary in a method that permits the collection of the subsidiary proceeds of the crypto asset.
A crypto asset intermediary shall enter into an agreement with a customer, if desired by the customer, regarding the manner in which to invest subsidiary proceeds or other gains attributable to the crypto assets of the customer. Each year, the chief executive officer of a crypto asset intermediary shall, under penalty of perjury, certify compliance with the following, to the best of the knowledge and belief of the chief executive officer: Applicable anti-money laundering, customer identification, prevention of terrorist financing, and sanctions laws.
Applicable custodial and safekeeping laws, including proof of reserve requirements. The other provisions of this chapter. . The table of sections for chapter 98 of title 31, United States Code, as amended by section 204 of this Act, is amended by adding at the end the following: 9805. Basic consumer protection standards for crypto assets. .