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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. 413

Sec. 413. Other tradable assets

374 words·~2 min read·/bill/119/hr/3633/rh/section-413

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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 4w the following: A tradable asset shall not be offered, solicited, traded, facilitated, executed, cleared, reported, or otherwise dealt in, on or subject to the rules of a registered entity, or by any other entity registered with the Commission, except in accordance with subsection (b). A tradable asset that is offered, solicited, traded, facilitated, executed, cleared, reported, or otherwise dealt in on or subject to the rules of a registered entity, or by any other entity registered with the Commission, shall be treated as a digital commodity for purposes of this Act.
In addition to the other requirements of this Act, the Commission may, by rule or regulation, impose additional obligations on any person registered under this Act offering, soliciting, trading, facilitating, executing, clearing, reporting, or otherwise dealing in a tradable asset, or class thereof, pursuant to paragraph
(1)as are necessary for the protection of customers, the promotion of innovation, and the maintenance of fair, orderly, and efficient markets, including additional obligations related to— disclosure; recordkeeping; capital; reporting; business conduct; documentation; supervision of employees; and segregation. A tradable asset, the primary purpose of which is to be used to commit fraud or market manipulation, or engage in any other conduct that would result in abusive practices or be disruptive to market integrity, shall not be offered, solicited, traded, facilitated, executed, cleared, reported, or otherwise dealt in on or subject to the rules of a registered entity, or by any other entity registered with the Commission. In this section, the term tradable asset means a digital asset other than— a digital commodity that is treated as such other than by reason of subsection (b)(1) of this section; or a digital asset excluded from the definition of digital commodity pursuant to subclause
(I)through
(VII)of section 1a(16)(F)(iii). The Commission may, after public notice and comment, issue guidance establishing criteria for determining if the primary purpose of a tradable asset is to be used to commit fraud or market manipulation, or engage in any other conduct that would result in abusive practices or be disruptive to market integrity. .
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Sec. 413
Other tradable assets
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