Sec. 411. Digital commodity activities by SEC-registered entities
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The Commodity Exchange Act ( 7 U.S.C. 1 et seq. ), as amended by the preceding provisions of this Act, is amended by inserting after section 5j the following: On receipt by the Commission from an alternative trading system of a written or electronic notice that contains such information as the Commission, by rule, may prescribe as necessary or appropriate in the public interest or for the protection of investors, the alternative trading system shall be exempt from registration as a digital commodity exchange pursuant to section 5i if— the alternative trading system does not list any retail commodity transactions pursuant to section 2(c)(2)(D); the provider, or an affiliated person of the provider, of the alternative trading system is not otherwise registered under this Act; the alternative trading system lists or trades no other contracts of sale of commodities, except for digital commodities, currencies, and securities; and the registration of the alternative trading system is not suspended pursuant to an order by the Securities and Exchange Commission.
An alternative trading system that provides notice to the Commission pursuant to paragraph
(1)of this subsection shall be exempt from the requirements of section 5i to the extent that the alternative trading system— is in compliance with requirements consistent with the requirements of section 5i and imposed on the alternative trading system by the Securities and Exchange Commission; annually files with the Commission, in a form and manner acceptable to the Commission, a notice that demonstrates compliance with this paragraph and contains any other information the Commission determines to be necessary or appropriate to perform the duties of the Commission under this Act; and has total trading volume in digital commodities during any calendar quarter in either of its 2 most recently completed fiscal years that does not exceed the lesser of— 25 percent of the total trading volume for all transactions over the same period; or $50,000,000,000. This subsection shall not be construed to limit any jurisdiction that the Commission may otherwise have under any other provision of this Act with respect to a contract of sale of a digital commodity or persons effecting contracts of sale of digital commodities. On receipt by the Commission, from a broker or dealer that is registered with the Securities and Exchange Commission, of a written or electronic notice that contains such information as the Commission, by rule, may prescribe as necessary or appropriate in the public interest or for the protection of investors, the broker or dealer shall be exempt from registration as a digital commodity broker or digital commodity dealer pursuant to section 4u of this Act if— the broker or dealer does not offer or engage in any retail commodity transactions pursuant to section 2(c)(2)(D) of this Act; the broker or dealer, or an affiliated person of the broker or dealer, is not otherwise registered under this Act; the broker or dealer does not offer or engage in any other contracts of sale of commodities, except for digital commodities, currencies, and securities; the broker or dealer is not subject to a statutory disqualification, as defined under section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) ); and the broker or dealer is a member of a national securities association registered pursuant to section 15A of the Securities Exchange Act of 1934. A broker or dealer that provides notice to the Commission pursuant to paragraph
(1)shall be exempt from the requirements of section 4u to the extent that the broker or dealer— is in compliance with requirements consistent with the requirements of section 4u and imposed on the broker or dealer by the Securities and Exchange Commission; annually files with the Commission, in a form and manner acceptable to the Commission, a notice that demonstrates compliance with this subsection and contains any other information the Commission determines to be necessary or appropriate to perform the duties of the Commission under this Act; and has consolidated annual gross financial revenues in either of its 2 most recently completed fiscal years from sales, commissions or other activities in digital commodities that do not exceed the lesser of— 10 percent of the total annual gross revenues during the same period; or $100,000,000. This subsection shall not be construed to limit any jurisdiction that the Commission may otherwise have under any other provision of this Act with respect to a contract of sale of a digital commodity and persons effecting contracts of sale of digital commodities. .
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