Sec. 204. Registration of digital commodity exchanges
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The Commodity Exchange Act is amended by inserting after section 5h ( 7 U.S.C. 7b–3 ) the following: A trading facility that offers or seeks to offer a cash or spot market in at least 1 digital commodity shall register with the Commission as a digital commodity exchange. A person desiring to register as a digital commodity exchange shall submit to the Commission an application in such form and containing such information as the Commission shall require for the purpose of making the determinations required for approval.
The Commission shall, by rule, prescribe the contents of an application under clause (i), including governance, resources, systems safeguards, surveillance, and conflict management. A trading facility that offers or seeks to offer a cash or spot market in at least 1 digital commodity shall not be required to register under this section if the trading facility— serves only customers in a single State, territory, or possession of the United States; permits no more than a de minimis amount of trading activity, as the Commission may determine by rule or regulation, in a digital commodity; or is already registered as a designated contract market, provided that the trading facility shall— provide reasonable notice to the Commission of its intention to engage in offering a cash or spot market in at least 1 digital commodity; and comply with all other provisions of this Act and the rules promulgated thereunder as they apply to a digital commodity exchange.
In order to foster the development of fair and orderly markets, protect customers, and promote responsible innovation, the Commission shall— prescribe rules to exempt an entity registered with the Commission under more than 1 section of this Act from duplicative, conflicting, or unduly burdensome provisions of this Act and the rules under this Act; prescribe rules establishing requirements for the identification, mitigation, and resolution of conflicts of interest among and across affiliated entities or entities with multiple registrations under this Act, including conflicts of interest related to vertically integrated market structures and their varying responsibilities and activities; and after an analysis of the risks and benefits, prescribe rules to provide for portfolio margining in accordance with section 103(e) of the Digital Commodity Intermediaries Act .
A person required to be registered as a digital commodity exchange under this section shall register with the Commission as such regardless of whether the person is registered with another State or Federal regulator. Section 4b shall apply to any agreement, contract, or transaction in a digital commodity as if the agreement, contract, or transaction were a contract of sale of a commodity for future delivery. Section 4c shall apply to any agreement, contract, or transaction in a digital commodity as if the agreement, contract, or transaction were a transaction involving the purchase or sale of a commodity for future delivery.
Section 4b–1 shall apply to any agreement, contract, or transaction in a digital commodity as if the agreement, contract, or transaction were a contract of sale of a commodity for future delivery. A digital commodity exchange or any affiliate of a digital commodity exchange shall not trade on or subject to the rules of the digital commodity exchange for its own account. Subject to the limitations described in subparagraph (C), a digital commodity exchange or any affiliate of a digital commodity exchange may trade on the digital commodity exchange for its own account so long as the trading is not solely for the purpose of the profit of the digital commodity exchange, including the following transactions:
A transaction for, or entered into at the direction of, or for the benefit of, an unaffiliated customer. A transaction in connection with the provision of liquidity on the digital commodity exchange if conducted pursuant to policies and procedures reasonably designed to limit such activity to the reasonably expected customer demand for liquidity on the digital commodity exchange. A transaction in connection with risk-mitigating hedging activities that are designed to reduce specific risks to the digital commodity exchange or its affiliate in connection with and related to its digital commodity activities.
The Commission shall adopt rules establishing appropriate conditions, requirements, or other limitations on the use of the exceptions described in subparagraph
(B)that are necessary for the protection of customers, the promotion of innovation, or the maintenance of fair, orderly, and efficient markets, which shall require that the digital commodity exchange has put in place adequate protections against conflicts of interest, such as timely and effective disclosure to clients, customers, and counterparties of any material conflict of interest or information barriers reasonably designed to protect against such conflicts of interest. In order for a digital commodity exchange or any affiliate of a digital commodity exchange to engage in trading on the affiliated digital commodity exchange pursuant to subparagraph (B), the digital commodity exchange or affiliate shall provide to the Commission notice that shall enumerate how any proposed activity is consistent with the exceptions described in subparagraph
(B)and the purposes of this Act. A digital commodity exchange shall report to the Commission such quantitative metrics as the Commission determines, by rule, to be appropriate to provide the Commission with sufficient visibility into the activities of the digital commodity exchange or its affiliates in reliance on subparagraph (B)(ii). To be registered, and maintain registration, as a digital commodity exchange, a digital commodity exchange shall comply with— the core principles described in this subsection; and any requirement that the Commission may impose by rule or regulation pursuant to section 8a(5). Unless otherwise determined by the Commission by rule or regulation, a digital commodity exchange shall have reasonable discretion in establishing the manner in which the digital commodity exchange complies with the core principles described in this subsection. A digital commodity exchange shall— establish and enforce compliance with any rule of the digital commodity exchange, including— the terms and conditions of the trades traded or processed on or through the digital commodity exchange; and any limitation on access to the digital commodity exchange; establish and enforce trading, trade processing, and participation rules that will deter abuses and have the capacity to detect, investigate, and enforce those rules, including means— to provide market participants with impartial access to the market; and to capture information that may be used in establishing whether rule violations have occurred; and establish rules governing the operation of the exchange, including rules specifying trading procedures to be used in entering and executing orders traded or posted on the exchange. A digital commodity exchange shall permit trading only in a digital commodity that is not readily susceptible to manipulation. A digital commodity exchange shall establish policies and procedures to permit trading in a digital commodity only if— disclosures with respect to the digital commodity required under, as applicable, section 4B of the Securities Act of 1933 have been filed with the Securities and Exchange Commission; or such other similar information that is related to the ongoing development plan of the blockchain system and is able to be publicly ascertained, as the Commission may, by rule or regulation, require, has been provided to the public. A digital commodity exchange shall— permit trading in a digital commodity only if the digital commodity exchange reasonably determines that the information required by clause
(ii)is correct, current, and available to the public; establish policies and procedures to determine that the information provided pursuant to clause
(ii)is correct, current, and available to the public; and communicate in a fair and balanced manner based on principles of fair dealing and good faith. With respect to a digital commodity and each blockchain system to which the digital commodity relates for which the digital commodity exchange will make the digital commodity available to the customers of the digital commodity exchange, the information required by this clause is the following: The source code for any blockchain system to which the digital commodity relates. A description of the steps necessary to independently access, search, and verify the transaction history of any blockchain system to which the digital commodity relates, to the extent any such independent access, search, and verification activities are technically feasible with respect to such blockchain system. A narrative description of the purpose of any blockchain system to which the digital commodity relates and the operation of any such blockchain system, including— information explaining the launch and supply process, including the number of digital assets to be issued in an initial allocation, the total number of digital commodities to be created, the release schedule for the digital commodities, and the total number of digital commodities then outstanding; information detailing any applicable consensus mechanism or process for validating transactions, method of generating or mining digital commodities, and any process for burning or destroying digital commodities on the blockchain system; an explanation of governance mechanisms for implementing changes to the blockchain system or forming consensus among holders of the digital commodities; and sufficient information for a third party to create a tool for verifying the transaction history of the digital commodity. The trading volume and volatility of the digital commodity on the exchange. Information about the material risks and characteristics of the digital commodity. Any material incentives or conflicts of interest that the digital commodity exchange may have in connection with the listing of the digital commodity. Information required by the Commission by rule or regulation pertaining to marketing and advertising, including testimonials and endorsements. Such additional information as the Commission shall determine by rule or regulation to be necessary for a customer to understand the financial and operational risks of a digital commodity, and to be practically feasible to provide. A digital commodity exchange shall provide a competitive, open, and efficient market and mechanism for executing transactions that protects the price discovery process of trading on the exchange. A digital commodity exchange shall establish and enforce rules— to protect markets and market participants from abusive practices committed by any party, including abusive practices committed by a party acting as an agent for a participant; and to promote fair and equitable trading on the exchange. A digital commodity exchange shall— establish and enforce rules or terms and conditions defining, or specifications detailing— trading procedures to be used in entering and executing orders traded on or through the facilities of the digital commodity exchange; and procedures for trade processing of digital commodities on or through the facilities of the digital commodity exchange; and monitor trading in digital commodities to prevent manipulation, price distortion, and disruptions, through surveillance, compliance, and disciplinary practices and procedures, including methods for conducting real-time monitoring of trading and comprehensive and accurate trade reconstructions. A digital commodity exchange shall— establish and enforce rules that will allow the exchange to obtain any necessary information to perform any of the functions described in this section; provide the information to the Commission on request; and have the capacity to carry out such international information-sharing agreements as the Commission may require. A digital commodity exchange shall adopt rules to provide for the exercise of emergency authority, in consultation or cooperation with the Commission or a registered entity, as is necessary and appropriate, including the authority to facilitate the liquidation or transfer of open positions in any digital commodity or to suspend or curtail trading in a digital commodity. A digital commodity exchange shall make public on its website timely information on price, trading volume, and other trading data on digital commodities to the extent prescribed by the Commission by rule or regulation. A digital commodity exchange shall have the capacity to electronically capture and transmit trade information with respect to transactions executed on the exchange. A digital commodity exchange shall— maintain records relating to the business of the digital commodity exchange, including a complete audit trail, in a form and manner acceptable to the Commission for a period of 5 years; report to the Commission, in a form and manner acceptable to the Commission, such information as the Commission determines to be necessary or appropriate for the Commission to perform the duties of the Commission under this Act; keep any such records of digital commodities that relate to a security open to inspection and examination by the Securities and Exchange Commission; and provide to the Commission an annual financial statement certified by an independent public accountant. A digital commodity exchange shall provide to the Commission (including any designee of the Commission) information under subparagraph
(A)in such form and at such frequency as is required by the Commission. Unless necessary or appropriate to achieve the purposes of this Act, a digital commodity exchange shall not— adopt any rules or take any actions that result in any unreasonable restraint of trade; or impose any material anticompetitive burden on trading. A digital commodity exchange shall establish and enforce rules— to minimize conflicts of interest in the decision-making processes of the digital commodity exchange, including conflicts of interest that might potentially bias the judgement or supervision of the digital commodity exchange and contravene the principles of fair and equitable trading; to minimize conflicts of interest that might arise— out of transactions or arrangements with affiliates (including affiliates engaging in digital commodity activities); or as a result of multiple registrations under this Act; to establish a process for resolving conflicts of interest referred to in subparagraphs
(A)and (B); to require disclosure by the digital commodity exchange of any material incentives or conflicts of interest that the digital commodity exchange is unable to resolve, or prohibit the conditions giving rise to such conflicts of interest not able to be resolved, as the Commission may determine to be appropriate; and relating to such additional matters as the Commission shall determine by rule or regulation to be necessary in the public interest. A digital commodity exchange may permit an affiliated digital commodity broker or digital commodity dealer to facilitate impartial access to the digital commodity exchange, subject to the rules prescribed by the Commission with respect to conflicts of interest regarding transactions or arrangements with affiliates. A digital commodity exchange shall have adequate financial, operational, and managerial resources, as shall be determined by the Commission by rule or regulation, to discharge each responsibility of the digital commodity exchange. A digital commodity exchange shall possess financial resources that, at a minimum, exceed the sum of— the total amount that would enable the digital commodity exchange to cover the operating costs of the digital commodity exchange for a 1-year period, as calculated on a rolling basis; and the total amount necessary to meet the financial obligations of the digital commodity exchange to all customers of the digital commodity exchange. The resources used to meet the requirements under subparagraph
(B)shall not include digital commodities originated by the digital commodity exchange or affiliates of the digital commodity exchange. A digital commodity exchange shall establish and enforce disciplinary procedures that authorize the digital commodity exchange to discipline, suspend, or expel members or market participants that violate the rules of the digital commodity exchange, or similar methods for performing the same functions, including delegation of the functions to third parties. A digital commodity exchange shall establish governance arrangements that are transparent to fulfill public interest requirements. A digital commodity exchange shall establish and enforce appropriate fitness standards for— officers and directors; any individual or entity with direct access to, or control of, customer assets; and other persons, as determined by the Commission by rule or regulation. Except as otherwise provided by the Commission by rule, regulation, or order, a digital commodity exchange shall be governed by a board of directors, subject to the following requirements: The composition of the board of directors shall be sufficient to maintain appropriate independence, as determined by the Commission. A digital commodity exchange shall endeavor to recruit individuals to serve on the board of directors from among, and to have the composition of the board reflect, a broad and culturally diverse pool of qualified candidates. A digital commodity exchange shall— establish and maintain a program of risk analysis and oversight to identify and minimize sources of operational and security risks (including cybersecurity risks), through the development of appropriate controls and procedures, and automated systems that— are reliable and secure; and have adequate scalable capacity; establish and maintain emergency procedures, backup resources, and a plan for disaster recovery that allow for— the timely recovery and resumption of operations; the fulfillment of the responsibilities and obligations of the digital commodity exchange; and the appropriate safeguarding and ability to access the private keys or other credentials necessary to transmit digital commodities in the possession, custody, or control of the digital commodity exchange; and periodically conduct tests to verify that the backup resources of the digital commodity exchange are sufficient to ensure continued— order processing and trade matching; price reporting; market surveillance; maintenance of a comprehensive and accurate audit trail; and access and ability to transfer digital commodities in the possession, custody, or control of the digital commodity exchange. A digital commodity exchange shall establish robust and professional risk management systems adequate for managing the day-to-day business of the digital commodity exchange. The Commission shall adopt rules or regulations imposing customer protection requirements that— require disclosure by a digital commodity exchange to a customer (other than another digital commodity exchange registered under this section), which shall be updated in a timely manner to reflect material changes, and in accordance with paragraph (5), of— the underlying technology of any digital commodity that is listed on the digital commodity exchange; the functionality and utility of any digital commodity that is listed on the digital commodity exchange; the governance structure of any digital commodity that is listed on the digital commodity exchange; the trading volume and volatility of any digital commodity that is listed on the digital commodity exchange; information about the material risks and characteristics of any applicable digital commodities; and any material incentives or conflicts of interest that the digital commodity exchange may have in connection with the listing of any applicable digital commodities; establish a duty for a digital commodity exchange to communicate in a fair and balanced manner based on principles of fair dealing and good faith; establish standards governing digital commodity exchange marketing and advertising, including testimonials and endorsements; establish such other standards and requirements as the Commission may determine are— appropriate for the protection of customers; or otherwise in furtherance of the purposes of this Act; and standardize and simplify disclosures under paragraph (1), including requiring that disclosures— be conspicuous; use plain language comprehensible to customers; and succinctly explain the information that is required to be communicated to the customer. Subject to section 8, and on request, the Commission shall share information collected under subsection (c)(8)(A) with— the Board of Governors of the Federal Reserve System; the Securities and Exchange Commission; each appropriate Federal banking agency; each appropriate State bank supervisor (as defined in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 )); the Financial Stability Oversight Council; the Department of Justice; State securities regulators; and any other person that the Commission determines to be appropriate, including— foreign financial supervisors (including foreign futures authorities); foreign central banks; and foreign ministries. Before the Commission may share information with any entity described in paragraph (1), the Commission shall receive a written agreement from the entity stating that the entity shall abide by the confidentiality requirements described in section 8 relating to the information on digital commodities that is provided. A digital commodity exchange shall hold customer money, assets, and property in a manner to minimize the risk of loss to the customer or unreasonable delay in customer access to the money, assets, and property of the customer. Each digital commodity exchange shall hold in a qualified digital asset custodian each unit of a digital asset that is— the property of a customer of the digital commodity exchange; required to be held by the digital commodity exchange under subsection (c)(11); or otherwise so required by the Commission to reasonably protect customers and customer assets or promote the public interest. A digital commodity exchange shall treat and deal with all money, assets, and property that is received by the digital commodity exchange, or accrues to a customer as the result of trading in digital commodities, as belonging to the customer. Money, assets, and property described in subparagraph
(A)shall be separately accounted for and shall not be commingled with the funds of the digital commodity exchange or be used to margin, secure, or guarantee any trades or accounts of any customer or person other than the person for whom the same are held. Notwithstanding subparagraph (A), money, assets, and property described in subparagraph
(A)may, for convenience, be commingled and deposited in the same account or accounts with any bank, trust company, derivatives clearing organization, or qualified digital asset custodian. Notwithstanding subparagraph (A), such share of the money, assets, and property described in subparagraph
(A)as in the normal course of business shall be necessary to margin, guarantee, secure, transfer, adjust, or settle a contract of sale of a digital commodity with a registered entity may be withdrawn and applied to such purposes, including the payment of commissions, brokerage, interest, taxes, storage, and other charges, lawfully accruing in connection with the contract of sale. Notwithstanding subparagraph (A), in accordance with such terms and conditions as the Commission may prescribe by rule, regulation, or order, any money, assets, or property of the customers of a digital commodity exchange may be commingled and deposited in customer accounts with any other money, assets, or property received by the digital commodity exchange and required by the Commission to be separately accounted for and treated and dealt with as belonging to the customer of the digital commodity exchange. Money described in paragraph
(3)may be invested in obligations of the United States, in general obligations of any State or of any political subdivision of a State, and in obligations fully guaranteed as to principal and interest by the United States, or in any high-quality liquid asset that the Commission may by rule or regulation prescribe, and such investments shall be made in accordance with such rules and regulations and subject to such conditions as the Commission shall prescribe. All assets held on behalf of a customer by a digital commodity exchange, and all money, assets, and property of any customer received by a digital commodity exchange for trading or custody, or to facilitate, margin, guarantee, or secure contracts of sale of a digital commodity (including money, assets, or property accruing to the customer as the result of the transactions), shall be considered customer property for purposes of section 761 of title 11, United States Code. A transaction involving the sale of a unit of a digital commodity occurring on or subject to the rules of a digital commodity exchange shall be considered a contract for the purchase or sale of a commodity for future delivery, on or subject to the rules of, a contract market or board of trade for purposes of the definition of commodity contract in section 761 of title 11, United States Code. A digital commodity exchange shall be considered a futures commission merchant for purposes of section 761 of title 11, United States Code. Assets removed from segregation due to a customer election under paragraph
(7)shall not be considered customer property for purposes of section 761 of title 11, United States Code. It shall be unlawful— for any digital commodity exchange that has received any customer money, assets, or property for custody to dispose of, or use any such money, assets, or property as belonging to the digital commodity exchange or any person other than a customer of the digital asset exchange; or for any other person, including any depository, other digital commodity exchange, or digital asset custodian that has received any customer money, assets, or property for deposit, to hold, dispose of, or use any such money, assets, or property as belonging to the depositing digital commodity exchange or any person other than the customers of the digital commodity exchange. For purposes of this paragraph, the term use with respect to a digital commodity, includes utilizing any unit of a digital asset to participate in a blockchain service (as defined in paragraph (7)(D)) or a decentralized governance system associated with the digital commodity or the blockchain system to which the digital commodity relates in any manner other than that expressly directed by the customer from whom the unit of a digital commodity was received. A digital commodity exchange (or a designee of a digital commodity exchange) may use a unit of a digital commodity belonging to a customer to provide a blockchain service for a blockchain system to which the unit of the digital commodity relates if for each use— the customer expressly permits the use, in writing, to the digital commodity exchange; and the digital commodity exchange complies with subparagraph (B). The Commission shall, by rule, establish notice and written disclosure requirements and any other limitations and rules related to a permission provided under subparagraph
(A)or the treatment of customer assets in the event of an insolvency, resolution, or liquidation proceeding, including a description of the manner in which any digital commodity would be treated in an insolvency, resolution, or liquidation proceeding, and how the treatment of digital commodities differs from the treatment of any other assets in the event of an insolvency, resolution, or liquidation proceeding, that are reasonably necessary to protect customers, including eligible contract participants, non-eligible contract participants, and any other class of customers. A digital commodity exchange may not— require a customer to provide the permission referred to in subparagraph
(A)as a condition of doing business on the exchange; or penalize a customer for not providing the permission referred to in subparagraph (A). The Commission may, by rule, modify the requirements of paragraph
(2)or
(3)to facilitate the use of a unit of a digital commodity belonging to a customer to provide a blockchain service. In this paragraph, the term blockchain service means any activity relating to validating transactions on a blockchain system, providing security for a blockchain system, or other similar activity required for the ongoing operation of a blockchain system. A registered digital commodity exchange may permit an affiliated digital commodity broker to facilitate impartial access to the digital commodity exchange. The Commission shall, by rule, impose any additional requirements related to the operations and activities of the digital commodity exchange and an affiliated digital commodity broker necessary to protect market participants, promote fair and equitable trading on the digital commodity exchange, provide market participants with impartial access to the market, protect customer funds, and promote responsible innovation. A digital commodity exchange shall designate an individual to serve as a chief compliance officer, who shall be solely responsible to the digital commodity exchange and not to any other affiliated entity or other entity regulated under this Act. The chief compliance officer of a digital commodity exchange shall— report directly to the board or to the senior officer of the exchange; review compliance with the core principles in this section; in consultation with the board of the exchange, a body performing a function similar to that of a board, or the senior officer of the exchange, resolve any conflicts of interest that may arise; establish and administer the policies and procedures required to be established pursuant to this section; ensure compliance with this Act and the rules and regulations issued under this Act, including rules prescribed by the Commission pursuant to this section; and establish procedures for the remediation of noncompliance issues found during compliance office reviews, look-backs, internal or external audit findings, self-reported errors, or through validated complaints. In establishing procedures under paragraph (2)(F), the chief compliance officer shall design the procedures to establish the handling, management response, remediation, retesting, and closing of noncompliance issues. In accordance with rules that shall be prescribed by the Commission, the chief compliance officer of a digital commodity exchange shall annually prepare and sign a report that contains a description of— the compliance of the digital commodity exchange with this Act; and the policies and procedures, including the code of ethics and conflicts of interest policies, of the digital commodity exchange. The chief compliance officer shall— submit each report described in subparagraph
(A)with the appropriate financial report of the digital commodity exchange that is required to be submitted to the Commission pursuant to this section; and include in the report a certification that, under penalty of law, the report is accurate and complete. If a proceeding under section 5e results in the suspension or revocation of the registration of a digital commodity exchange, or if a digital commodity exchange withdraws from registration, the Commission, on notice to the digital commodity exchange, may apply to the appropriate United States district court for the judicial district in which the digital commodity exchange is located for the appointment of a trustee. If the Commission applies for appointment of a trustee under paragraph (1)— the court may take exclusive jurisdiction over the digital commodity exchange and the records and assets of the digital commodity exchange, wherever located; and if the court takes jurisdiction under subparagraph (A), the court shall appoint the Commission, or a person designated by the Commission, as trustee with power to take possession and continue to operate or terminate the operations of the digital commodity exchange in an orderly manner for the protection of customers, subject to such terms and conditions as the court may prescribe. In order to promote responsible innovation and fair competition, or protect customers, the Commission may (on its own initiative or on application of the digital commodity exchange) exempt, either unconditionally or on stated terms or conditions or for stated periods and either retroactively or prospectively, or both, a digital commodity exchange from the requirements of this Act, if the Commission determines that— the exemption would be consistent with the public interest and the purposes of this Act; and the exemption will not have a material adverse effect on the ability of the Commission or the digital commodity exchange to discharge regulatory or self-regulatory duties under this Act. The Commission may exempt, conditionally or unconditionally, a digital commodity exchange from registration under this section if the Commission finds that the digital commodity exchange is subject to comparable, comprehensive supervision and regulation on a consolidated basis by the appropriate governmental authorities in the home country of the digital commodity exchange. The Commission may exempt a foreign digital commodity exchange from registration under this section for the 2-year period following the date of enactment of this section if— the foreign digital commodity exchange— keeps the books and records of the foreign digital commodity exchange open to inspection and examination by any representative of the Commission upon reasonable request; and reports to the Commission, in a form and manner acceptable to the Commission, such information as the Commission determines to be reasonably necessary or appropriate for the Commission to perform the duties of the Commission under this Act; and the appropriate government authorities in the home country of the foreign digital commodity exchange— certify that the foreign digital commodity exchange— is subject to— supervision and regulation on a consolidated basis by a governmental authority in its home country, including requirements relating to beneficial ownership, control persons, governance, risk management, financial reporting, and market integrity; and clear and enforceable managerial and supervisory responsibility at the consolidated level; and is in good standing and not subject to unresolved, material enforcement actions relating to market integrity, customer protection, or financial crime; and enter into a memorandum of understanding with the Commission in which those appropriate government authorities agree to provide to the Commission information regarding the foreign digital commodity exchange that the Commission requests during that 2-year period. The Commission may suspend or revoke an exemption under subparagraph
(B)if the Commission determines that the foreign digital commodity exchange or the appropriate government authority in the home country of the foreign digital commodity exchange fails to substantially comply with the requirements described in subparagraph (B). The Commission shall have exclusive jurisdiction over any digital commodity exchange registered under this section with respect to activities and transactions subject to this Act. Nothing in this subsection shall affect the ability of a State or local agency to investigate and bring enforcement actions regarding fraud, deceit, or unfair or deceptive acts or practices. The Commission shall prescribe such rules and regulations as are appropriate for the implementation of this section. In this section, the term customer means any person that maintains an account for the trading of digital commodities directly with a digital commodity exchange (other than a person that is owned or controlled, directly or indirectly, by the digital commodity exchange) for its own behalf or on behalf of any other person. . Section 22 of the Commodity Exchange Act ( 7 U.S.C. 25 ) is amended— in subsection (a)(1)— in subparagraph (B)— by striking commodity) or any swap; and inserting commodity), any swap, or any digital commodity transaction; ; and by striking to make such contract and all that follows through the semicolon at the end and inserting to make such contract, any swap, or any digital commodity transaction; ; in subparagraph (C), by conforming the margin of clause
(iv)to the margin of clauses
(i)through (iii); and in subparagraph (D)— in the matter preceding clause (i), by striking subparagraph
(B)hereof or swap and inserting subparagraph (B), a swap, or a digital commodity ; and in clause (ii), by striking any such contract or swap and inserting any such contract, swap, or digital commodity ; and in subsection (b)(1)(A), by inserting 5i, after 5h, .
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- 7 USC 7b–3
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