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Code · BILL · 119th Congress · H.R. 3633 (Reported in House) — To provide for a system of regulation of the offer and sale of digital commodities by the Securities and Exchange Com... · Sec. 302

Sec. 302. Anti-fraud authority over permitted payment stablecoins and certain digital commodity transactions

419 words·~2 min read·/bill/119/hr/3633/rh/section-302

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Section 10 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78j ) is amended— by moving subsection
(c)so as to appear after subsection (b); by designating the undesignated matter at the end of that section as subsection (d); and by adding at the end the following: Rules promulgated under subsection
(b)that prohibit fraud, manipulation, or insider trading (but not rules imposing or specifying reporting or recordkeeping requirements, procedures, or standards as prophylactic measures against fraud, manipulation, or insider trading), and judicial precedents decided under subsection
(b)and rules promulgated thereunder that prohibit fraud, manipulation, or insider trading, shall apply with respect to permitted payment stablecoin and digital commodity transactions engaged in by a broker or dealer or through an alternative trading system or, as applicable, a national securities exchange to the same extent as they apply to securities transactions. Judicial precedents decided under section 17(a) of the Securities Act of 1933 and sections 9, 15, 16, 20, and 21A of this title, and judicial precedents decided under applicable rules promulgated under such sections, shall apply to permitted payment stablecoins and digital commodities with respect to those circumstances in which the permitted payment stablecoins and digital commodities are brokered, traded, or custodied by a broker or dealer or through an alternative trading system or, as applicable, a national securities exchange to the same extent as they apply to securities. . Title I of the Securities Exchange Act of 1934 ( 15 U.S.C. 78a et seq. ) is amended by inserting after section 6 the following: Permitted payment stablecoins may be brokered, traded, or custodied by a broker, dealer or through an alternative trading system or national securities exchange. The Commission shall only have jurisdiction over a transaction in a permitted payment stablecoin with respect to those circumstances in which a permitted payment stablecoin is brokered, traded, or custodied— by a broker or dealer; through a national securities exchange; or through an alternative trading system. Subsection
(b)shall only apply to a transaction described in subsection
(b)for the purposes of regulating the offer, execution, solicitation, or acceptance of a permitted payment stablecoin in those circumstances in which the permitted payment stablecoin is brokered, traded, or custodied— by a broker or dealer; through a national securities exchange; or through an alternative trading system. Nothing in this section may be construed to prohibit permitted payment stablecoins from being custodied by any person or entity that is not a broker, dealer, alternative trading system, or national securities exchange. .
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Sec. 302
Anti-fraud authority over permitted payment stablecoins and certain digital commodity transactions
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