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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. 603

Sec. 603. Records and reports; duties and powers of customer protection and market integrity authorities

1,313 words·~6 min read·/bill/118/s/2281/is/section-603·

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Chapter 98 of title 31, United States Code, as amended by section 602, is amended by adding at the end the following: Each customer protection and market integrity authority shall— with respect to the members of the authority, ascertain and enforce compliance with the rules of the authority, Federal and State law to which those members are subject, and any rules issued by any such member, including any rule issued under section 5i of the Commodity Exchange Act ( 5 U.S.C. 7i ); discipline members of the authority and other persons subject to the jurisdiction of the authority under this chapter; and make, and keep for prescribed periods, such electronic records and disseminate reports as the customer protection and market integrity authority, by rule, prescribes as necessary or appropriate in the public interest.
All records of a member described in subsection
(a)are subject at any time, or from time to time, to reasonable periodic, special, or other examinations by the customer protection and market integrity authority of the member. Before conducting an examination under subparagraph (A), the examining authority shall— inform all other relevant regulatory agencies and entities with jurisdiction over the member regarding the proposed examination; and consult concerning the feasibility and desirability of coordinating such examination with examinations conducted by other entities with a view to avoiding unnecessary duplication and undue regulatory burden. Upon a showing of good cause, the Securities and Exchange Commission or the Commodity Futures Trading Commission, as applicable, may conduct a special examination of a customer protection and market integrity authority or a member of such an authority. With respect to an examination under this paragraph, the examining authority shall share such information, including reports of the examination, customer complaint information, and other nonpublic regulatory information, as may be appropriate to foster a coordinated approach to regulatory oversight for members that are subject to examination by more than 1 examining authority. A customer protection and market integrity authority, at all times when an examination under this paragraph is not in progress, shall conduct ongoing supervision of members of the authority, as may be provided by the rules of the authority. A customer protection and market integrity authority shall— adopt tailored supervision and examination standards commensurate with the size and complexity of the authority and risks faced by members of the authority; and develop standard form customer agreements for the execution of crypto asset transactions. The Securities and Exchange Commission and Commodity Futures Trading Commission, shall, by rule or order, in order to foster cooperation and coordination— with respect to any person that is a member of or participant in more than 1 customer protection and market integrity authority or other entity delegated regulatory and disciplinary authority by a governmental agency or, relieve the authority or entity of any responsibility— to receive regulatory reports from the person; to examine the person for compliance; or to carry out other specified regulatory functions with respect to the person; and allocate among entities the authority to adopt rules with respect to matters as to which, in the absence of the allocation, such entities share authority. In making a rule, or entering an order, under paragraph (1), the appropriate commission shall take into consideration the regulatory capabilities and procedures of the entities, availability of staff, convenience of location, unnecessary regulatory duplication, and all other factors applicable to customer protection, cooperation and coordination, and the development of a healthy crypto asset market, which may include providing for the acceptance of examination reports prepared by a customer protection and market integrity authority under this chapter with respect to a crypto asset intermediary for which crypto asset activities constitute a majority of business, in lieu of examinations conducted by other entities. The Securities and Exchange Commission or Commodity Futures Trading Commission, by rule or order, may require that an authority relieved of any responsibility under this paragraph, and any person with respect to which that responsibility relates, take such steps as are specified in any rule or order to notify customers of, and persons doing business with, the person of the limited nature of the responsibility of that registered authority for the acts, practices, and course of business of the person. Each member of a customer protection and market integrity authority or other financial institution conducting crypto asset transactions shall report to the Financial Crimes Enforcement Network of the Department of the Treasury such information as may be required by rule relating to crypto asset theft or missing private keys for the possession or control of crypto assets. Section 24 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78x ) shall apply to the sharing of information by the Securities and Exchange Commission and Commodity Futures Trading Commission in accordance with this subsection. The commissions and a customer protection and market integrity authority shall ensure that all confidential information is not inappropriately disclosed pursuant to subparagraph (A). Nothing in this subsection may be construed to authorize the Securities and Exchange Commission and Commodity Futures Trading Commission or a customer protection and market integrity authority to— withhold information from Congress; or prevent the commissions, an authority or other entity delegated regulatory and disciplinary authority by a governmental agency from complying with— a request for information from any Federal or State department or agency requesting the information for purposes within the scope of the jurisdiction of that department or agency; or an order of a court of the United States in an action brought by the United States or the commissions. A customer protection and market integrity authority, in consultation with members of the authority, the Securities and Exchange Commission, and the Commodity Futures Trading Commission, shall develop rules governing the best execution of crypto asset transactions. A customer protection and market integrity authority may make an initial determination of the legal character of a crypto asset as a security, an ancillary asset, a commodity (as defined in section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a )), or as otherwise provided by law, upon the written request of a member of the authority. Upon receipt of a request under subparagraph (A), a customer protection and market integrity authority— shall consult with the commissions and make an initial determination regarding the request, after public notice and comment, not later than 45 days after the date on which the authority receives the request; and may hold a public hearing with respect to an initial determination described in clause (i), if— the matter is of significant precedential value or complex; or holding such a hearing is otherwise in the public interest. A customer protection and market integrity authority shall publish all determinations made under paragraph
(1)on the website of the authority. Not later than 30 days after the date on which an initial determination is made under subsection (g), the Securities and Exchange Commission or Commodity Futures Trading Commission may object to the initial determination of the customer protection and market integrity authority by issuing an order, after public notice, comment, and a hearing. Upon an objection under subparagraph (A), the initial determination to which the objection applies shall be held in abeyance. Not later than 30 days after the date on which an initial determination is made under subsection (g), the Securities and Exchange Commission or the Commodity Futures Trading Commission may object to the initial determination by issuing an order, after public notice, comment, and a hearing. Upon an objection under subparagraph (A), the initial determination to which the objection applies shall be held in abeyance, pending resolution under section 42(b)(4)(C) of the Securities Exchange Act of 1934. . The table of sections for chapter 98 of title 31, United States Code, as amended by section 602, is amended by adding at the end the following: 9811. Records and reports; duties and powers of customer protection and market integrity authorities. .
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  • 5 USC 7i
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Sec. 603
Records and reports; duties and powers of customer protection and market integrity authorities
U.S.C.§ 78x
U.S.C.§ 1a
Cite5 USC 7i
Cites 3Cited by 0 across 0 sources
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