I 

117TH CONGRESS 

1ST SESSION H. R. 1602 

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. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 8, 2021 

Mr. MCHENRY (for himself, Mr. LYNCH, Mr. THOMPSON of Pennsylvania, Mr. 

BUDD, and Mr. DAVIDSON) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the 

Committee on Agriculture, for a period to be subsequently determined by 

the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

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, 

3 SECTION 1. SHORT TITLE. 

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

5 Innovation Act of 2021’’. 


pbinns on DSKJLVW7X2PROD with BILLS
2 

•HR 1602 IH

1 SEC. 2. WORKING GROUP TO SUPPORT INNOVATION WITH 

2 RESPECT TO DIGITAL ASSETS. 

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

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

5 and Exchange Commission and the Commodity Futures 

6 Trading Commission shall jointly establish a working 

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

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

9 under subsection (c)(1). 

10 (b) MEMBERSHIP.— 

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

12 composed of members appointed in accordance with 

13 paragraph (2). 

14 (2) APPOINTMENT OF MEMBERS.— 

15 (A) REPRESENTATIVES OF COMMIS16 SIONS.—The Securities and Exchange Commis17 sion and the Commodity Futures Trading Com18 mission shall each appoint an equal number of 

19 employees of each such Commission to serve as 

20 members of the Working Group. 

21 (B) REPRESENTATIVES OF NONGOVERN22 MENTAL STAKEHOLDERS.— 

23 (i) APPOINTMENT.—The Securities 

24 and Exchange Commission and the Com25 modity Futures Trading Commission shall 

26 each appoint an equal number of nonVerDate Sep 11 2014 06:16 Mar 16, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1602.IH H1602

pbinns on DSKJLVW7X2PROD with BILLS
3 

•HR 1602 IH

1 governmental representatives to serve as 

2 members of the Working Group, except 

3 that such number of members may not be 

4 greater than or equal to the number of 

5 members appointed under subparagraph 

6 (A). 

7 (ii) REQUIRED MEMBERS.—The mem8 bers of the Working Group appointed 

9 under clause (i) shall include at least one 

10 representative from each of the following: 

11 (I) Financial technology compa12 nies that provide products or services 

13 involving digital assets. 

14 (II) Financial firms under the ju15 risdiction of the Securities and Ex16 change Commission or the Commodity 

17 Futures Trading Commission. 

18 (III) Institutions or organizations 

19 engaged in academic research or advo20 cacy relating to digital asset use. 

21 (IV) Small businesses engaged in 

22 financial technology. 

23 (V) Investor protection organiza24 tions. 


pbinns on DSKJLVW7X2PROD with BILLS
4 

•HR 1602 IH

1 (VI) Institutions and organiza2 tions that support investment in his3 torically-underserved businesses. 

4 (C) NO COMPENSATION FOR MEMBERS OF

5 THE WORKING GROUP.— 

6 (i) FEDERAL EMPLOYEE MEMBERS.— 

7 All members of the Working Group ap8 pointed under subparagraph (A) shall 

9 serve without compensation in addition to 

10 that received for their services as officers 

11 or employees of the United States. 

12 (ii) NON-FEDERAL MEMBERS.—All 

13 members of the Working Group appointed 

14 under subparagraph (B) shall serve with15 out compensation. 

16 (c) REPORT.— 

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

18 the date of the enactment of this section, the Work19 ing Group shall submit to the Securities and Ex20 change Commission, the Commodity Futures Trad21 ing Commission, and the relevant committees a re22 port that contains— 

23 (A) an analysis of— 

24 (i) the legal and regulatory framework 

25 and related developments in the United 


pbinns on DSKJLVW7X2PROD with BILLS
5 

•HR 1602 IH

1 States relating to digital assets, includ2 ing— 

3 (I) the impact that lack of clarity 

4 in such framework has on primary 

5 and secondary markets in digital as6 sets; and 

7 (II) how the domestic legal and 

8 regulatory regimes relating to digital 

9 assets impact the competitive position 

10 of the United States; and 

11 (ii) developments in other countries 

12 related to digital assets and identification 

13 of how these developments impact the com14 petitive position of the United States; and 

15 (B) recommendations— 

16 (i) for the creation, maintenance, and 

17 improvement of primary and secondary 

18 markets in digital assets, including for im19 proving the fairness, orderliness, integrity, 

20 efficiency, transparency, availability, and 

21 efficacy of such markets; 

22 (ii) for standards concerning custody, 

23 private key management, cybersecurity, 

24 and business continuity relating to digital 

25 asset intermediaries; and 


pbinns on DSKJLVW7X2PROD with BILLS
6 

•HR 1602 IH

1 (iii) for best practices to— 

2 (I) reduce fraud and manipula3 tion of digital assets in cash, lever4 aged, and derivatives markets; 

5 (II) improve investor protections 

6 for participants in such markets; and 

7 (III) assist in compliance with 

8 anti-money laundering and countering 

9 the financing of terrorism obligations 

10 under the Bank Secrecy Act. 

11 (2) REPORT LIMITED TO SEC AND CFTC AU12 THORITIES.—The analysis and recommendations 

13 provided under subparagraphs (A) and (B) of para14 graph (1) may only relate to the laws, regulations, 

15 and related matters that are under the primary ju16 risdiction of the Securities and Exchange Commis17 sion or the Commodity Futures Trading Commis18 sion. 

19 (d) NONAPPLICABILITY OF FACA.—The Federal Ad20 visory Committee Act (5 U.S.C. App.) shall not apply to 

21 the Working Group. 

22 (e) TERMINATION.— 

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

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

25 of the enactment of this section, except that the 


pbinns on DSKJLVW7X2PROD with BILLS
7 

•HR 1602 IH

1 Chairman of the Securities and Exchange Commis2 sion and the Chairman of the Commodity Futures 

3 Trading Commission may, jointly, extend the Work4 ing Group for a longer period, not to exceed one 

5 year. 

6 (2) SECOND REPORT IN THE CASE OF EXTEN7 SION.—In the case of an extension of the Working 

8 Group under paragraph (1), the Working Group 

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

10 submit to the Securities and Exchange Commission, 

11 the Commodity Futures Trading Commission, and 

12 the relevant committees a report that contains an 

13 update to the analysis and recommendations re14 quired under subparagraphs (A) and (B) of sub15 section (c)(1). 

16 (f) DEFINITIONS.—In this section: 

17 (1) BANK SECRECY ACT.—The term ‘‘Bank Se18 crecy Act’’ means— 

19 (A) section 21 of the Federal Deposit In20 surance Act (12 U.S.C. 1829b); 

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

22 508 (12 U.S.C. 1951 et seq.); and 

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

24 United States Code. 


pbinns on DSKJLVW7X2PROD with BILLS
8 

•HR 1602 IH

1 (2) HISTORICALLY-UNDERSERVED BUSI2 NESSES.—The term ‘‘historically-underserved busi3 nesses’’ means women-owned businesses, minority4 owned businesses, and rural businesses. 

5 (3) RELEVANT COMMITTEES.—The term ‘‘rel6 evant committees’’ means— 

7 (A) the Committee on Financial Services 

8 of the House of Representatives; 

9 (B) the Committee on Banking, Housing, 

10 and Urban Affairs of the Senate; 

11 (C) the Committee on Agriculture of the 

12 House of Representatives; and 

13 (D) the Committee on Agriculture, Nutri14 tion, and Forestry of the Senate. 

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

16 Group’’ means the working group established under 

17 subsection (a). 

Æ 


pbinns on DSKJLVW7X2PROD with BILLS