IIB 

117TH CONGRESS 

1ST SESSION H. R. 1602 

IN THE SENATE OF THE UNITED STATES 

APRIL 22, 2021 

Received; read twice and referred to the Committee on Banking, Housing, and 

Urban Affairs 

AN ACT 

To direct the Commodity Futures Trading Commission and 

the Securities and Exchange Commission to jointly establish a digital asset working group, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Eliminate Barriers to 

3 Innovation Act of 2021’’. 

4 SEC. 2. WORKING GROUP TO SUPPORT INNOVATION WITH 

5 RESPECT TO DIGITAL ASSETS. 

6 (a) ESTABLISHMENT.—Not later than 90 days after 

7 the date of the enactment of this section, the Securities 

8 and Exchange Commission and the Commodity Futures 

9 Trading Commission shall jointly establish a working 

10 group (to be known as the ‘‘SEC and CFTC Working 

11 Group on Digital Assets’’) to carry out the report required 

12 under subsection (c)(1). 

13 (b) MEMBERSHIP.— 

14 (1) IN GENERAL.—The Working Group shall be 

15 composed of members appointed in accordance with 

16 paragraph (2). 

17 (2) APPOINTMENT OF MEMBERS.— 

18 (A) REPRESENTATIVES OF COMMIS19 SIONS.—The Securities and Exchange Commis20 sion and the Commodity Futures Trading Com21 mission shall each appoint an equal number of 

22 employees of each such Commission to serve as 

23 members of the Working Group. 

24 (B) REPRESENTATIVES OF NONGOVERN25 MENTAL STAKEHOLDERS.— 


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1 (i) APPOINTMENT.—The Securities 

2 and Exchange Commission and the Com3 modity Futures Trading Commission shall 

4 each appoint an equal number of non5 governmental representatives to serve as 

6 members of the Working Group, except 

7 that such number of members may not be 

8 greater than or equal to the number of 

9 members appointed under subparagraph 

10 (A). 

11 (ii) REQUIRED MEMBERS.—The mem12 bers of the Working Group appointed 

13 under clause (i) shall include at least one 

14 representative from each of the following: 

15 (I) Financial technology compa16 nies that provide products or services 

17 involving digital assets. 

18 (II) Financial firms under the ju19 risdiction of the Securities and Ex20 change Commission or the Commodity 

21 Futures Trading Commission. 

22 (III) Institutions or organizations 

23 engaged in academic research or advo24 cacy relating to digital asset use. 


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1 (IV) Small businesses engaged in 

2 financial technology. 

3 (V) Investor protection organiza4 tions. 

5 (VI) Institutions and organiza6 tions that support investment in his7 torically-underserved businesses. 

8 (C) NO COMPENSATION FOR MEMBERS OF

9 THE WORKING GROUP.— 

10 (i) FEDERAL EMPLOYEE MEMBERS.— 

11 All members of the Working Group ap12 pointed under subparagraph (A) shall 

13 serve without compensation in addition to 

14 that received for their services as officers 

15 or employees of the United States. 

16 (ii) NON-FEDERAL MEMBERS.—All 

17 members of the Working Group appointed 

18 under subparagraph (B) shall serve with19 out compensation. 

20 (c) REPORT.— 

21 (1) IN GENERAL.—Not later than 1 year after 

22 the date of the enactment of this section, the Work23 ing Group shall submit to the Securities and Ex24 change Commission, the Commodity Futures TradVerDate Sep 11 2014 20:52 Apr 23, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1602.RFS H1602

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1 ing Commission, and the relevant committees a re2 port that contains— 

3 (A) an analysis of— 

4 (i) the legal and regulatory framework 

5 and related developments in the United 

6 States relating to digital assets, includ7 ing— 

8 (I) the impact that lack of clarity 

9 in such framework has on primary 

10 and secondary markets in digital as11 sets; and 

12 (II) how the domestic legal and 

13 regulatory regimes relating to digital 

14 assets impact the competitive position 

15 of the United States; and 

16 (ii) developments in other countries 

17 related to digital assets and identification 

18 of how these developments impact the com19 petitive position of the United States; and 

20 (B) recommendations— 

21 (i) for the creation, maintenance, and 

22 improvement of primary and secondary 

23 markets in digital assets, including for im24 proving the fairness, orderliness, integrity, 


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1 efficiency, transparency, availability, and 

2 efficacy of such markets; 

3 (ii) for standards concerning custody, 

4 private key management, cybersecurity, 

5 and business continuity relating to digital 

6 asset intermediaries; and 

7 (iii) for best practices to— 

8 (I) reduce fraud and manipula9 tion of digital assets in cash, lever10 aged, and derivatives markets; 

11 (II) improve investor protections 

12 for participants in such markets; and 

13 (III) assist in compliance with 

14 anti-money laundering and countering 

15 the financing of terrorism obligations 

16 under the Bank Secrecy Act. 

17 (2) REPORT LIMITED TO SEC AND CFTC AU18 THORITIES.—The analysis and recommendations 

19 provided under subparagraphs (A) and (B) of para20 graph (1) may only relate to the laws, regulations, 

21 and related matters that are under the primary ju22 risdiction of the Securities and Exchange Commis23 sion or the Commodity Futures Trading Commis24 sion. 


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1 (d) NONAPPLICABILITY OF FACA.—The Federal Ad2 visory Committee Act (5 U.S.C. App.) shall not apply to 

3 the Working Group. 

4 (e) TERMINATION.— 

5 (1) IN GENERAL.—The Working Group shall 

6 terminate on the date that is 1 year after the date 

7 of the enactment of this section, except that the 

8 Chairman of the Securities and Exchange Commis9 sion and the Chairman of the Commodity Futures 

10 Trading Commission may, jointly, extend the Work11 ing Group for a longer period, not to exceed 1 year. 

12 (2) SECOND REPORT IN THE CASE OF EXTEN13 SION.—In the case of an extension of the Working 

14 Group under paragraph (1), the Working Group 

15 shall, not later than the last day of such extension, 

16 submit to the Securities and Exchange Commission, 

17 the Commodity Futures Trading Commission, and 

18 the relevant committees a report that contains an 

19 update to the analysis and recommendations re20 quired under subparagraphs (A) and (B) of sub21 section (c)(1). 

22 (f) DEFINITIONS.—In this section: 

23 (1) BANK SECRECY ACT.—The term ‘‘Bank Se24 crecy Act’’ means— 


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1 (A) section 21 of the Federal Deposit In2 surance Act (12 U.S.C. 1829b); 

3 (B) chapter 2 of title I of Public Law 91– 

4 508 (12 U.S.C. 1951 et seq.); and 

5 (C) subchapter II of chapter 53 of title 31, 

6 United States Code. 

7 (2) HISTORICALLY-UNDERSERVED BUSI8 NESSES.—The term ‘‘historically-underserved busi9 nesses’’ means women-owned businesses, minority10 owned businesses, and rural businesses. 

11 (3) RELEVANT COMMITTEES.—The term ‘‘rel12 evant committees’’ means— 

13 (A) the Committee on Financial Services 

14 of the House of Representatives; 

15 (B) the Committee on Banking, Housing, 

16 and Urban Affairs of the Senate; 

17 (C) the Committee on Agriculture of the 

18 House of Representatives; and 

19 (D) the Committee on Agriculture, Nutri20 tion, and Forestry of the Senate. 


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1 (4) WORKING GROUP.—The term ‘‘Working 

2 Group’’ means the working group established under 

3 subsection (a). 

Passed the House of Representatives April 20, 2021. 

Attest: CHERYL L. JOHNSON, 

Clerk. 


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