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Code · BILL · 118th Congress · S. 2281 (Introduced in Senate) — To provide for consumer protection and responsible financial innovation, to bring crypto assets within the regulatory... · Sec. 401

Sec. 401. Definitions

590 words·~3 min read·/bill/118/s/2281/is/section-401

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Section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a ) is amended— in paragraph (9), by striking and frozen concentrated orange juice and inserting frozen concentrated orange juice, and a crypto asset (consistent with section 2(c)(2)(F)) ; by redesignating paragraphs
(15)through (37), (38), (39), and
(40)through
(51)as paragraphs
(18)through (40), (42), (43), and
(45)through (56), respectively; by inserting after paragraph
(14)the following: Except as provided in subparagraph (B), the term crypto asset has the meaning given the term in section 9801 of title 31, United States Code. The term crypto asset does not include an asset that provides the holder of the asset with any of the following rights in a business entity: A debt or equity interest in that entity. Liquidation rights with respect to that entity. An entitlement to an interest or dividend payment from that entity. Any other financial interest in that entity. The term crypto asset exchange means a trading facility that lists for trading at least 1 crypto asset. The term decentralized crypto asset exchange means software that— comprises predetermined and publicly disclosed code deployed to a public distributed ledger; permits a user or group of users to create a pool or group of pools for crypto assets; enables a user or group of users to conduct crypto asset transactions from a pool or group of pools, with such transactions occurring pursuant to the code described in clause (i); and no person, or group of persons, known to one another who have entered into an agreement (implied or otherwise) to act in concert, can unilaterally control or cause to control the software protocol through altering transactions, functions, or actions on the protocol, or blocking or approving transactions on the protocol. For the purposes of subparagraph (A)(iv), the term control shall not include mining, validation, or the communication of transactions to a distributed ledger. ; in paragraph (31)(A)(i) (as so redesignated)— in subclause (I)— in item (aa)— in subitem (EE), by striking or at the end; and by adding at the end the following: the purchase or sale of a crypto asset that is traded on or subject to the rules of a registered entity; ; in item (bb), by striking and at the end and inserting or ; and by adding at the end the following: acting as a counterparty (not on a principal basis) to any cash or spot agreement, contract, or transaction involving a crypto asset, which may include a payment stablecoin, with a person who is not an eligible contract participant, unless the activity is— conducted in compliance with the laws of the State in which the activity occurs; subject to regulation by another Federal authority; or separately regulated under this Act; and ; and in subclause (II), by striking items
(aa)or
(bb)and inserting item (aa), (bb), or
(cc); by inserting after paragraph
(40)(as so redesignated) the following: The term payment stablecoin has the meaning given the term in section 9801 of title 31, United States Code. ; by inserting after paragraph
(43)(as so redesignated) the following: The term registered crypto asset exchange means a crypto asset exchange registered under section 5i. ; in paragraph
(45)(as so redesignated)— in subparagraph (E), by striking and at the end; by redesignating subparagraph
(F)as subparagraph (G); and by inserting after subparagraph
(E)the following: a registered crypto asset exchange; and ; and in paragraph (56)(B)(i) (as so redesignated), by inserting or a decentralized crypto asset exchange after execution algorithm .
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Sec. 401
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