Sec. 106. Expedited registration for digital commodity exchanges, brokers, and dealers; provisional status
518 words·~2 min read·
/bill/119/hr/3633/eh/section-106A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Unless exempted from registration, a person shall not act as a digital commodity broker, digital commodity dealer, or digital commodity exchange after the end of the 90-day period beginning on the date the process described in paragraph
(2)is adopted by the Commodity Futures Trading Commission, unless, as the case may be, the person is registered as a— digital commodity broker pursuant to section 4u of the Commodity Exchange Act; digital commodity dealer pursuant to section 4u of the Commodity Exchange Act; or digital commodity exchange pursuant to section 5i of the Commodity Exchange Act. Within 180 days after the date of the enactment of this Act, the Commodity Futures Trading Commission shall adopt, by rule, regulation, or order, a process for expedited registration of persons required to be registered pursuant to paragraph (1). A person who is registered in accordance with subsection
(a)of this section shall be in provisional status until— in the case of a digital commodity broker or dealer, 270 days after the final effective date of the rulemakings required under section 4u of the Commodity Exchange Act; or in the case of a digital commodity exchange, 270 days after the final effective date of the rulemakings required under section 5i of such Act. A person in provisional status shall pay all fees and penalties required under section 410. A person in provisional status shall be subject to the requirements of this section and the Commodity Exchange Act and any rules or regulations promulgated under this section or the Commodity Exchange Act, as applicable. Except as provided in subparagraph (B), a person in provisional status may continue to offer, solicit, trade, facilitate, execute, clear, report, or otherwise deal in any digital asset offered on or through the facilities of the person before the date of registration under this section, until such time as the joint rulemaking on definitions required under section 105(a) is effective. Before the effective date of the joint rulemaking on definitions under section 105(a), a person in provisional status shall cease offering, soliciting, trading, facilitating, executing, clearing, reporting, or otherwise dealing in any digital asset required to be delisted pursuant to a joint delisting process established under section 105(d). In order to promote responsible innovation and fair competition, or protect customers, the Commodity Futures Trading Commission may exempt any persons or class of persons registered pursuant to subsection
(a)and in provisional status pursuant to subsection
(b)from any requirements of this section or the Commodity Exchange Act or any rules or regulations promulgated under this section or the Commodity Exchange Act, as applicable. Beginning 30 days after the date of the enactment of this Act, any person acting as a digital commodity exchange, digital commodity broker, or digital commodity dealer shall disclose to the customers of the person so acting, in the disclosure documents, offering documents, and promotional material of the person so acting, in a prominent manner, that the person is not registered with or regulated by the Commodity Futures Trading Commission. Paragraph
(1)of this subsection shall not apply to any person who registers pursuant to subsection (a).