Sec. 201. Commission jurisdiction over digital commodity transactions

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Section 2(a)(1) of the Commodity Exchange Act ( 7 U.S.C. 2(a)(1) ) is amended by adding at the end the following: Except as expressly provided in this Act, nothing in the Digital Commodity Intermediaries Act or any amendment made by that Act shall affect or apply to, or be interpreted to affect or apply to— any agreement, contract, or transaction that is subject to this Act as— a contract of sale of a commodity for future delivery or an option on such a contract; a swap; a security futures product; an option authorized under section 4c; an agreement, contract, or transaction described in subparagraph (C)(i) or (D)(i) of subsection (c)(2); or a leverage transaction authorized under section 19; or the activities of any person with respect to any such agreement, contract, or transaction.

An agreement, contract, or transaction described in clause (i)(I) shall not be regulated as a digital commodity agreement, contract, or transaction solely because it is issued, recorded, represented, or transferred on a blockchain or other similar technology. . Section 2(c)(1) of the Commodity Exchange Act ( 7 U.S.C. 2(c)(1) ) is amended— in the matter preceding subparagraph (A), by striking section, 5b, or and inserting section 5b or ; in subparagraph (F), by striking or at the end; in subparagraph (G), by striking the period and inserting ; or ; and by adding at the end the following: a payment stablecoin (as defined in section 2 of the GENIUS Act ( Public Law 119–27 ; 139 Stat. 419)) that is issued by a permitted payment stablecoin issuer (as defined in that section) (referred to in this subsection as a permitted payment stablecoin ). .

Section 2(c)(2) of the Commodity Exchange Act ( 7 U.S.C. 2(c)(2) ) is amended— in subparagraph (D)— in clause (ii)— in subclause (I), by inserting after paragraph

(1)the following: (other than an agreement, contract, or transaction in a permitted payment stablecoin) ; by striking subclause (IV); and by redesignating subclause

(V)as subclause (IV); by redesignating clause

(iv)as clause (v); by inserting after clause

(iii)the following: This subparagraph shall not apply to a contract of sale of a digital commodity or a permitted payment stablecoin that results in actual delivery within 2 days or such other period as the Commission may determine by rule or regulation based upon the typical commercial practice in cash or spot markets for the digital commodity or permitted payment stablecoin involved. ; and by inserting after clause

(v)(as so redesignated) the following: The Commission shall, by rule or regulation, establish appropriate conditions, requirements, or limitations with respect to the extension of leverage, margin, or financing in connection with any cash or spot digital commodity agreement, contract, or transaction subject to this subparagraph. In order to promote responsible innovation and fair competition, or protect customers, the Commission may by rule or regulation exempt, either unconditionally or on stated terms or conditions or for stated periods, and either retroactively or prospectively, or both, a digital commodity exchange or a digital commodity broker from the requirements of this subparagraph, if the Commission determines that the exemption would be consistent with the public interest and the purposes of this Act. ; and by adding at the end the following: Subject to sections 6d and 12(e), the Commission shall have exclusive jurisdiction with respect to any account, agreement, contract, or transaction involving a contract of sale of a digital commodity in interstate commerce, including in a digital commodity cash or spot market, that is offered, solicited, traded, facilitated, executed, cleared, reported, or otherwise dealt in— on or subject to the rules of a registered entity or an entity that is required to be registered as a registered entity; or by any other entity registered, or required to be registered, with the Commission. Clause

(i)shall not apply with respect to— custodial or depository activities for a digital commodity of an entity regulated by— an appropriate Federal banking agency; or a State bank supervisor (as defined in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 )); an offer or sale of an investment contract involving a digital commodity or a securities offer or sale involving a digital commodity; or a mixed digital asset transaction. Subject to clauses

(ii)and (iii), the Commission shall have jurisdiction over a cash or spot agreement, contract, or transaction in a permitted payment stablecoin that is offered, offered to enter into, entered into, executed, solicited, or accepted, or for which the execution of is confirmed— on or subject to the rules of a registered entity; or by any other entity registered with the Commission. This Act shall apply to a transaction described in clause

(i)only for the purpose of regulating the offer, execution, solicitation, or acceptance of a cash or spot permitted payment stablecoin transaction on a registered entity or by any other entity registered with the Commission, as if the permitted payment stablecoin were a digital commodity. Notwithstanding clauses

(i)and (ii), the Commission shall not make a rule or regulation, impose a requirement or obligation on a registered entity or other entity registered with the Commission, or impose a requirement or obligation on a permitted payment stablecoin issuer regarding the operation of a permitted payment stablecoin issuer or a permitted payment stablecoin. . Section 2 of the Commodity Exchange Act ( 7 U.S.C. 2 ) is amended by adding at the end the following: The secondary market offer or sale of a network token (as defined in section 4B(a) of the Securities Act of 1933) other than the offer or sale of an investment contract pursuant to which an ancillary asset is offered or sold by an ancillary asset originator, or an underwriter with respect to an investment contract pursuant to which such ancillary asset was originally sold, shall be considered an offer or sale of a digital commodity. . Paragraph

(15)of section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a ) (as amended by section 17(f) of the GENIUS Act ( Public Law 119–27 ; 139 Stat. 463) and as redesignated by section 101(a)(1)) is amended by striking the second sentence. Section 2(a)(1)(A) of the Commodity Exchange Act ( 7 U.S.C. 2(a)(1)(A) ) is amended, in the first sentence, by striking section 19 of this Act and inserting subparagraph

(F)or

(G)of subsection (c)(2) or section 19 . Section 4(c)(1) of the Commodity Exchange Act (7 U.S.C 6(c)(1)) is amended by adding after subparagraph

(B)the following: For purposes of this paragraph, an agreement, contract, or transaction that is subject to the jurisdiction of the Commission under any of the amendments made to this Act by the Digital Commodity Intermediaries Act shall be subject to subsection (a). .

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