I 

118TH CONGRESS 

1ST SESSION H. R. 5745 

To provide for the regulation of digital assets, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 27, 2023 

Mr. BEYER introduced the following bill; which was referred to the Committee 

on Financial Services, and in addition to the Committees on Agriculture, 

and Ways and Means, 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 provide for the regulation of digital assets, 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 ‘‘Digital Asset Market 

5 Structure and Investor Protection Act’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

TITLE I—DIGITAL ASSET SECURITIES UNDER THE FEDERAL 

SECURITIES LAWS 


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Subtitle A—Securities Exchange Act of 1934 

Sec. 101. Definition of digital asset security. 

Sec. 102. Delayed registration for digital asset securities. 

Sec. 103. Desecuritization of digital asset securities. 

Sec. 104. Joint SEC and CFTC rulemaking on major digital asset classification. 

Sec. 105. Conforming amendments. 

Subtitle B—Other Securities Laws 

Sec. 111. Securities Act of 1933. 

Sec. 112. Investment Advisers Act of 1940. 

Sec. 113. Investment Company Act of 1940. 

Sec. 114. Securities Investor Protection Act of 1970. 

TITLE II—TREATMENT OF DIGITAL ASSETS UNDER THE 

COMMODITY EXCHANGE ACT 

Sec. 201. Definitions. 

Sec. 202. Actual delivery of digital assets. 

Sec. 203. Optional Federal charter for digital asset trading and clearing. 

Sec. 204. Reporting requirements. 

Sec. 205. CTA and CPOs: Commodity Interests. 

Sec. 206. Swap data repositories and digital asset trade repositories. 

TITLE III—DIGITAL FEDERAL RESERVE NOTES, LEGAL TENDER 

STATUS, THE REGULATION OF DIGITAL ASSET FIAT-BASED 

STABLECOINS, AND FEDERAL DEPOSIT AND SHARE INSURANCE FOR DIGITAL ASSETS 

Subtitle A—Digital Federal Reserve Notes 

Sec. 301. In general. 

Sec. 302. Digital asset legal tender status. 

Subtitle B—Regulation of Digital Asset Fiat-Based Stablecoins 

Sec. 311. Department of Treasury regulation of digital asset fiat-based 

stablecoins. 

Sec. 312. Conforming amendment. 

Subtitle C—Federal Deposit and Share Insurance for Digital Assets 

Sec. 321. Digital asset not deposits for Federal deposit and share insurance. 

Sec. 322. Directed rulemaking FDIC and NCUA website disclosure on digital 

assets and insurance noncoverage. 

TITLE IV—BANK SECRECY ACT 

Sec. 401. Bank Secrecy Act. 

Sec. 402. Anonymizing services, money mule, and anonymity-enhanced convertible virtual currencies. 

Sec. 403. Digital asset transaction actual delivery reporting. 

Sec. 404. Virtual digital asset service providers. 

TITLE V—VARIOUS DIGITAL ASSET REPORTS 

Sec. 501. IRS report on digital asset ownership/taxes. 


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Sec. 502. Report on ransomware and digital assets. 

Sec. 503. Report on decentralized finance. 

Sec. 504. Report on custody of digital assets and digital asset securities. 

Sec. 505. Report on digital asset trading platforms. 

Sec. 506. Report on false trade reporting, wash trading, and off-chain transaction on digital asset trading platforms. 

Sec. 507. Relevant committees defined. 

1 TITLE I—DIGITAL ASSET SECU2 RITIES UNDER THE FEDERAL 

3 SECURITIES LAWS 

4 Subtitle A—Securities Exchange 

5 Act of 1934 

6 SEC. 101. DEFINITION OF DIGITAL ASSET SECURITY. 

7 (a) DEFINITION OF SECURITY.—Section 3(a)(10) of 

8 the Securities Exchange Act of 1934 (15 U.S.C. 

9 78c(a)(10)) is amended— 

10 (1) by inserting ‘‘digital asset security,’’ after 

11 ‘‘investment contract,’’; and 

12 (2) by striking ‘‘; but shall not include cur13 rency’’ and inserting ‘‘; but shall not include any fiat 

14 currency, commodity, digital asset,’’. 

15 (b) OTHER DEFINITIONS.—Section 3(a) of the Secu16 rities Exchange Act of 1934 (15 U.S.C. 78c(a)) is amend17 ed— 

18 (1) by transferring paragraph (79) so as to ap19 pear after paragraph (78); 

20 (2) by redesignating the second paragraph (80) 

21 as paragraph (81); and 

22 (3) by adding at the end the following: 


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1 ‘‘(82) DIGITAL ASSET SECURITY.— 

2 ‘‘(A) IN GENERAL.—The term ‘digital 

3 asset security’ means a digital asset that: 

4 ‘‘(i) Provides the holder of the digital 

5 asset with any of the following rights: 

6 ‘‘(I) Equity or debt interest in 

7 the issuer. 

8 ‘‘(II) Right to profits, interest, or 

9 dividend payments from the issuer. 

10 ‘‘(III) Voting rights in the major 

11 corporate actions (which shall not in12 clude new block creations, hardforks, 

13 or protocol changes related to the dig14 ital asset) of the issuer. 

15 ‘‘(IV) Liquidation rights in the 

16 event of the issuer’s liquidation. 

17 ‘‘(ii) In the case of an issuer with a 

18 service, goods, or platform that is not 

19 wholly operational at the time of issuing 

20 such digital asset, with respect to any 

21 fundraising or capital formation activity 

22 (including initial coin offerings) which is 

23 accomplished through the issuance of such 

24 a digital asset, issues such digital asset to 

25 a holder in return for money (including 


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1 other digital assets) to fund the develop2 ment of the proposed service, goods, or 

3 platform of the issuer. 

4 ‘‘(B) RULE RELATING TO DIGITAL AS5 SETS.—The term ‘digital asset security’ does 

6 not include any digital asset other than the dig7 ital assets described in subparagraph (A). Any 

8 digital asset not described in subparagraph (A) 

9 shall be considered to be, and regulated as, a 

10 commodity under the Commodity Exchange Act 

11 (7 U.S.C. 1a et seq.).’’. 

12 SEC. 102. DELAYED REGISTRATION FOR DIGITAL ASSET SE13 CURITIES. 

14 Section 12(g)(1) of the Securities Exchange Act of 

15 1934 (15 U.S.C. 78l(g)(1)) is amended— 

16 (1) in subparagraph (A)(ii), by striking ‘‘and’’ 

17 at the end; 

18 (2) in subparagraph (B), by inserting ‘‘and’’ 

19 after ‘‘persons,’’; and 

20 (3) by inserting after subparagraph (B) the fol21 lowing: 

22 ‘‘(C) in the case of an issuer of a digital asset 

23 security, not later than 120 days after the last day 

24 of the third fiscal year on which the issuer first has 

25 total assets exceeding $10,000,000 and a class of eqVerDate Sep 11 2014 22:47 Oct 03, 2023 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H5745.IH H5745

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1 uity security (other than an exempted security) held 

2 of record by 2,000 or more persons,’’. 

3 SEC. 103. DESECURITIZATION OF DIGITAL ASSET SECURI4 TIES. 

5 Section 12(g) of the Securities Exchange Act of 1934 

6 (15 U.S.C. 78l(g)) is amended by adding at the end the 

7 following: 

8 ‘‘(7) DESECURITIZATION OF DIGITAL

9 ASSET SECURITIES.—Registration of any class 

10 of digital asset security pursuant to this sub11 section or status as a security (or both) shall be 

12 terminated ninety days, or such shorter period 

13 as the Commission may determine, after the 

14 issuer files a desecuritization certification with 

15 the Commission. The desecuritization certifi16 cation shall demonstrate that the issuer’s serv17 ice, goods, or platform are fully operational and 

18 that the digital asset does not provide holders 

19 of such digital assets with any of the rights 

20 specified in subclauses (I) through (IV) of sec21 tion 3(a)(82)(A). The Commission shall after 

22 notice and opportunity for hearing deny termi23 nation of registration or change in status as a 

24 security (or both) if it finds that the 

25 desecuritization certification is untrue. TermiVerDate Sep 11 2014 22:47 Oct 03, 2023 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H5745.IH H5745

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1 nation of registration or change in status (or 

2 both) shall be deferred pending final determina3 tion on the question of denial. A digital asset 

4 security so desecuritized shall be considered to 

5 be, and regulated as, a commodity under the 

6 Commodity Exchange Act (7 U.S.C. 1a et 

7 seq.).’’. 

8 SEC. 104. JOINT SEC AND CFTC RULEMAKING ON MAJOR 

9 DIGITAL ASSET CLASSIFICATION. 

10 The Securities Exchange Act of 1934 is amended by 

11 adding at the end the following: 

12 ‘‘SEC. 105. JOINT SEC AND CFTC RULEMAKING ON MAJOR 

13 DIGITAL ASSET CLASSIFICATION. 

14 ‘‘(a) IN GENERAL.—Not later than 150 days after 

15 the date of the enactment of this section, the Commission 

16 and the Commodity Futures Trading Commission shall 

17 jointly publish, for purposes of a 60-day public comment 

18 period, a proposed rulemaking that classifies each of the 

19 major digital assets by (i) highest market capitalization 

20 and (ii) highest daily trading volume as either— 

21 ‘‘(1) a digital asset; or 

22 ‘‘(2) a digital asset security. 

23 ‘‘(b) FINAL RULE.—Not later than 270 days after 

24 the date of the enactment of this Act, the Commission and 

25 the Commodity Futures Trading Commission shall jointly 


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1 publish a final rule that classifies each of the major digital 

2 assets by (i) highest market capitalization and (ii) highest 

3 daily average trading volume as— 

4 ‘‘(1) a digital asset; or 

5 ‘‘(2) a digital asset security. 

6 ‘‘(c) MAJOR DIGITAL ASSETS DEFINED.—In this 

7 subsection, the term ‘major digital assets’ means the top 

8 25 digital assets (including digital asset securities) by (i) 

9 the highest market capitalization and (ii) the highest daily 

10 trading volume as of the date of the enactment of the Dig11 ital Asset Market Structure and Investor Protection Act 

12 as reported on an appropriate publicly available website 

13 (as jointly determined by the Commission and the Com14 modity Futures Trading Commission) that publishes such 

15 information, such as CoinMarketCap.’’. 

16 SEC. 105. CONFORMING AMENDMENTS. 

17 (a) DEFINITION OF BROKER.—Section 3(a)(4)(A) of 

18 the Securities Exchange Act of 1934 (15 U.S.C. 78c(a) 

19 is amended by inserting ‘‘including a digital asset security, 

20 but not digital assets,’’ after ‘‘security’’. 

21 (b) SECURITIES EXCHANGE ACT DEFINITIONS.— 

22 Section 3(a) of the Securities Exchange Act of 1934 (15 

23 U.S.C. 78c(a)), as amended by section 101, is further 

24 amended by adding at the end the following: 


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1 ‘‘(83) COMMODITY EXCHANGE ACT TERMS.— 

2 The terms, ‘commodity’, ‘digital asset’, ‘digital asset 

3 repository of transactions’, and ‘virtual currency’ 

4 have the meanings given such terms, respectively, in 

5 section 1a of the Commodity Exchange Act (7 

6 U.S.C. 1a).’’. 

7 Subtitle B—Other Securities Laws 

8 SEC. 111. SECURITIES ACT OF 1933. 

9 (a) DEFINITION OF SECURITY.—Section 2(a)(1) of 

10 the Securities Act of 1933 (15 U.S.C. 77b(a)(1)) is 

11 amended— 

12 (1) by inserting ‘‘digital asset security,’’ after 

13 ‘‘investment contract,’’; and 

14 (2) by striking the period at the end and insert15 ing ‘‘; but does not include any fiat currency, com16 modity, digital asset, or any note, draft, bill of ex17 change, or banker’s acceptance which has a maturity 

18 at the time of issuance of not exceeding nine months 

19 exclusive of days of grace or any renewal thereof the 

20 maturity of which is likewise limited.’’. 

21 (b) OTHER DEFINITIONS.—Section 2(a) of the Secu22 rities Act of 1933 (15 U.S.C. 77b(a)) is amended by add23 ing the following: 

24 ‘‘(20) The terms ‘commodity’, ‘digital asset’, 

25 ‘digital asset repository of transactions’, and ‘virtual 


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1 currency’ have the meanings given such terms, re2 spectively, in section 1a of the Commodity Exchange 

3 Act (7 U.S.C. 1a). 

4 ‘‘(21) The term ‘digital asset security’ has the 

5 meaning given such term in section 3(a) of the Secu6 rities Exchange Act of 1934 (15 U.S.C. 78c(a)).’’. 

7 SEC. 112. INVESTMENT ADVISERS ACT OF 1940. 

8 (a) DEFINITION OF SECURITY.—Section 202(a)(18) 

9 of the Investment Advisers Act of 1940 (15 U.S.C. 80b– 

10 2(a)(18)) is amended— 

11 (1) by inserting ‘‘digital asset security,’’ after 

12 ‘‘investment contract,’’; and 

13 (2) by striking the period at the end and insert14 ing ‘‘; but does not include any fiat currency, com15 modity, digital asset, or any note, draft, bill of ex16 change, or banker’s acceptance which has a maturity 

17 at the time of issuance of not exceeding nine months 

18 exclusive of days of grace or any renewal thereof the 

19 maturity of which is likewise limited.’’. 

20 (b) DEFINITION OF DIGITAL ASSET SECURITY.— 

21 Section 202(a) of the Investment Advisers Act of (15 

22 U.S.C. 80b–2(a)) is amended by adding at the end the 

23 following: 


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1 ‘‘(31) The term ‘digital asset security’ has the 

2 meaning given such term section 3(a) of the Securi3 ties Exchange Act of 1934 (15 U.S.C. 78c(a)).’’. 

4 (c) OTHER DEFINITIONS.—The second paragraph 

5 (29) of section 202(a) of the Investment Advisers Act of 

6 1940 (15 U.S.C. 80b–2(a)(29)) is amended by inserting 

7 ‘‘ ‘commodity’, ‘digital asset’, ‘digital asset repository of 

8 transactions’, ‘virtual currency’ ’’, after ‘‘ ‘commodity trad9 ing advisor’,’’. 

10 SEC. 113. INVESTMENT COMPANY ACT OF 1940. 

11 (a) DEFINITION OF SECURITY.—Section 2(a)(36) of 

12 the Investment Company Act of 1940 (15 U.S.C. 80b– 

13 2(a)(36) is amended— 

14 (1) by inserting ‘‘digital asset security,’’ after 

15 ‘‘investment contract,’’; and 

16 (2) by striking the period at the end and insert17 ing ‘‘; but does not include any fiat currency, com18 modity, digital asset, or any note, draft, bill of ex19 change, or banker’s acceptance which has a maturity 

20 at the time of issuance of not exceeding nine months 

21 exclusive of days of grace or any renewal thereof the 

22 maturity of which is likewise limited.’’. 

23 (b) COMMODITY EXCHANGE ACT TERMS.—Section 

24 2(a)(54) of the Investment Company Act of 1940 (15 

25 U.S.C. 80a–2(a)) is amended by striking ‘‘and ‘swap exeVerDate Sep 11 2014 22:47 Oct 03, 2023 Jkt 049200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H5745.IH H5745

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1 cution facility’ ’’ and inserting ‘‘ ‘swap execution facility’, 

2 ‘commodity’, ‘digital asset’, ‘digital asset repository of 

3 transactions’, and ‘virtual currency’ ’’. 

4 (c) DEFINITION OF DIGITAL ASSET SECURITY.—Sec5 tion 2(a) of the Investment Company Act of 1940 (15 

6 U.S.C. 80a–2(a)) is amended by adding at the end the 

7 following: 

8 ‘‘(55) The term ‘digital asset security’ has the 

9 meaning given such term in section 3(a) of the Secu10 rities Exchange Act of 1934 (15 U.S.C. 78c(a)).’’. 

11 SEC. 114. SECURITIES INVESTOR PROTECTION ACT OF 1970. 

12 (a) IN GENERAL.— 

13 (1) DEFINITION OF SECURITY.—Section 16(14) 

14 of the Securities Investor Protection Act of 1970 (15 

15 U.S.C. 78lll(14)) is amended— 

16 (A) by inserting ‘‘, digital asset security,’’ 

17 after ‘‘investment contract’’; 

18 (B) by inserting ‘‘, digital asset security,’’ 

19 after ‘‘if such investment contract’’; and 

20 (C) in the last sentence, by inserting ‘‘dig21 ital asset,’’ after ‘‘commodity,’’. 

22 (2) OTHER DEFINITIONS.—Section 16 of the 

23 Securities Investor Protection Act of 1970 (15 

24 U.S.C. 78lll) is amended by adding the following: 


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1 ‘‘(15) COMMODITY EXCHANGE ACT TERMS.— 

2 The terms ‘commodity’, ‘digital asset’, ‘digital asset 

3 repository of transactions’, and ‘virtual currency’ 

4 have the meanings given such terms, respectively, in 

5 section 1a of the Commodity Exchange Act (7 

6 U.S.C. 1a). 

7 ‘‘(16) DIGITAL ASSET SECURITY.—The term 

8 ‘digital asset security’ has the meaning given such 

9 term in section 3(a) of the Securities Exchange Act 

10 of 1934 (15 U.S.C. 78c(a)).’’. 

11 (b) SIPC NOTICE.—Not later than 90 days after the 

12 date of the enactment of this Act, the Securities Investor 

13 Protection Corporation shall make publicly available on 

14 the website of the Corporation a notice— 

15 (1) regarding the status of digital assets and 

16 digital asset securities and how such status impacts 

17 Securities Investor Protection Corporation insurance 

18 coverage; and 

19 (2) that digital assets are not deposits and dig20 ital asset securities are in almost all cases not secu21 rities and neither would be covered by Securities In22 vestor Protection Corporation insurance, regardless 

23 of whether— 


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1 (A) an insured bank, savings association, 

2 or credit union holds the digital assets or digital 

3 asset securities; or 

4 (B) a broker or dealer (as defined in sec5 tion 3(a) of the Securities Exchange Act of 

6 1934 (15 U.S.C. 78c(a))) holds the digital as7 sets or digital asset securities. 

8 TITLE II—TREATMENT OF DIG9 ITAL ASSETS UNDER THE 

10 COMMODITY EXCHANGE ACT 

11 SEC. 201. DEFINITIONS. 

12 (a) DEFINITION OF COMMODITY.—Section 1a(9) of 

13 the Commodity Exchange Act (7 U.S.C. 1a(9)) is amend14 ed by adding ‘‘digital asset (including Bitcoin, Ether, and 

15 their hardforks),’’ after ‘‘livestock products,’’. 

16 (b) OTHER DEFINITIONS RELATING TO DIGITAL AS17 SETS.—Section 1a of the Commodity Exchange Act (7 

18 U.S.C. 1a) is amended by adding at the end the following: 

19 ‘‘(52) DIGITAL ASSET.—The term ‘digital 

20 asset’— 

21 ‘‘(A) means an asset— 

22 ‘‘(i) that is created electronically or 

23 digitally through software code; 

24 ‘‘(ii) that is programmed with rules 

25 that— 


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1 ‘‘(I) govern the creation, supply, 

2 ownership, use, and transfer of such 

3 digital asset; and 

4 ‘‘(II) are designed to resist modi5 fication or tampering by any single 

6 person or persons under common con7 trol; 

8 ‘‘(iii) that has a transaction history 

9 that— 

10 ‘‘(I) is recorded on a— 

11 ‘‘(aa) distributed digital 

12 ledger; or 

13 ‘‘(bb) digital data structure 

14 in which consensus is achieved 

15 through a mathematically 

16 verifiable process; 

17 ‘‘(II) is updated as soon as pos18 sible in accordance with the digital 

19 asset programming rules related to 

20 transactions and ownership; and 

21 ‘‘(III) after consensus is reached, 

22 is designed to prevent modification or 

23 tampering with the ownership or 

24 transaction history by any single per25 son or persons under common control; 


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1 ‘‘(iv) that is capable of being trans2 ferred between persons through a decen3 tralized method without an intermediate 

4 custodian; and 

5 ‘‘(B) is a broad term which includes sev6 eral other terms used to describe digital assets 

7 by market participants and regulators such as 

8 ‘virtual asset’, ‘virtual currency’, and ‘convert9 ible virtual currency’ among others. 

10 ‘‘(53) DIGITAL ASSET SECURITY.—The term 

11 ‘digital asset security’ has the meaning given the 

12 term in section 3(a) of the Securities Exchange Act 

13 of 1934 (15 U.S.C. 78c(a)). 

14 ‘‘(54) DIGITAL ASSET REPOSITORY OF TRANS15 ACTIONS.—The term ‘digital asset repository of 

16 transactions’ or ‘DART’ means any person that col17 lects and maintains information or records with re18 spect to transactions or positions in, or the terms 

19 and conditions of, contracts of sale of digital assets 

20 in interstate commerce entered into by third parties 

21 (both on chain public distributed ledger transactions 

22 as well as off-chain transactions) for the purpose of 

23 providing a centralized recordkeeping facility for any 

24 digital asset, but does not include a private or public 

25 distributed ledger or the operator of either such 


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1 ledger unless such private or public distributed ledg2 er or operator seeks to aggregate or include ‘off3 chain’ transactions as well. 

4 ‘‘(55) DISTRIBUTED LEDGER TECHNOLOGY.— 

5 The term ‘distributed ledger technology,’ means a 

6 decentralized peer-to-peer network of computers that 

7 operate on open-source software which validate and 

8 irrevocably log digital asset ownership and trans9 actions on a permanent public distributed ledger 

10 which is visible to the entire network. 

11 ‘‘(56) VIRTUAL CURRENCY.—The term ‘virtual 

12 currency’ means a digital asset which is a digital 

13 representation of value that does not have legal ten14 der status and that functions as a medium of ex15 change, a unit of account, or a store of value.’’. 

16 (c) DEFINITION OF COMMODITY TRADING ADVI17 SOR.—Section 1(a)(12)(A)(i) of the Commodity Exchange 

18 Act (7 U.S.C. 1(a)(12)(A)(i) is amended by adding ‘‘com19 modity interests, including any—’’ after ‘‘advisability of 

20 trading in’’. 

21 (d) DEFINITION OF FUTURES COMMISSION MER22 CHANT.—Section 1a(28)(A)(i)(I)(aa) Commodity Ex23 change Act (7 U.S.C. 1a(9)) is amended— 

24 (1) in subitem (EE), by striking ‘‘or’’ at the 

25 end; and 


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1 (2) by adding at the end the following: 

2 ‘‘(GG) any contract of 

3 sale of a digital asset in 

4 interstate commerce, but not 

5 a digital asset security; or’’. 

6 (e) DEFINITION OF INTRODUCING BROKER.—Section 

7 1a(31)(A)(i)(I) of the Commodity Exchange Act (7 U.S.C. 

8 1a(31)) is amended— 

9 (1) in item (cc) by striking ‘‘or’’ at the end; 

10 (2) in item (dd), by striking ‘‘and’’ at the end 

11 and inserting ‘‘or’’; and 

12 (3) by adding at the end the following: 

13 ‘‘(ee) any contract of sale of 

14 a digital asset in interstate com15 merce, but not a digital asset se16 curity; and’’. 

17 SEC. 202. ACTUAL DELIVERY OF DIGITAL ASSETS. 

18 Section 2(c)(2)(D)(ii)(III) of the Commodity Ex19 change Act (7 U.S.C. 2(c)(2)(D)(ii)(III)) is amended— 

20 (1) in item (aa)— 

21 (A) by striking ‘‘other longer’’ and insert22 ing ‘‘shorter’’; and 

23 (B) by striking ‘‘; or’’ and inserting a 

24 semicolon; and 

25 (2) by adding at the end the following: 


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1 ‘‘(cc) with respect to digital 

2 assets, results in actual delivery 

3 (including transfer of control 

4 over private keys) not later than 

5 24 hours after the transaction is 

6 entered into and such delivery is 

7 accomplished by either— 

8 ‘‘(AA) recording the 

9 transaction on the public 

10 distributed ledger for the 

11 digital asset; or 

12 ‘‘(BB) with respect to 

13 digital asset transactions 

14 which are not recorded on a 

15 public distributed ledger for 

16 the digital asset, reporting 

17 the transaction to a CFTC 

18 registered digital asset re19 pository of transactions; or’’. 

20 SEC. 203. OPTIONAL FEDERAL CHARTER FOR DIGITAL 

21 ASSET TRADING AND CLEARING. 

22 Section 2(a)(1) of the Commodity Exchange Act (7 

23 U.S.C. 2(a)(1)) is amended by adding at the end the fol24 lowing: 


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1 ‘‘(J) OPTIONAL FEDERAL CHARTER FOR

2 DIGITAL ASSET TRADING AND CLEARING.—Not3 withstanding any other provision of law, a reg4 istered entity may list, trade, or clear a contract 

5 of sale of a commodity in interstate commerce 

6 (including digital assets). The registered entity 

7 shall apply all the core principles and related 

8 regulations, including Bank Secrecy Act, anti9 money laundering and know your customer re10 quirements, to such contracts. The Commission 

11 shall have exclusive jurisdiction under this para12 graph over any agreement, contract, or trans13 action involving a contract of sale of a com14 modity in interstate commerce (including any 

15 digital asset) which is listed, traded, or cleared 

16 on or through a registered entity and, provided 

17 further, such contracts shall be treated for reg18 ulatory and enforcement purposes as if they 

19 were contracts of sale of a commodity for future 

20 delivery.’’. 

21 SEC. 204. REPORTING OF DIGITAL ASSET TRANSACTIONS 

22 TO DART. 

23 A digital asset trading platform shall report to the 

24 digital asset repository of transactions each contract of 

25 sale of a digital asset in interstate commerce transaction 


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1 executed on such digital asset trading platform, not later 

2 than 24 hours after such trade has executed. 

3 SEC. 205. CTA AND CPOS: COMMODITY INTERESTS. 

4 Section 4m (3)(C) of the Commodity Exchange Act 

5 (7 U.S.C. 6m(3)(C)) is amended by replacing the word 

6 ‘‘paragraph’’ with ‘‘Act’’ and striking the word ‘‘physical’’. 

7 SEC. 206. SWAP DATA REPOSITORIES AND DIGITAL ASSET 

8 TRADE REPOSITORIES. 

9 Section 21 of the Commodity Exchange Act (7 U.S.C. 

10 24a) is amended to read as follows: 

11 ‘‘SEC. 21. SWAP DATA REPOSITORIES AND DIGITAL ASSET 

12 TRADE REPOSITORIES. 

13 ‘‘(a) REGISTRATION REQUIREMENT.— 

14 ‘‘(1) REQUIREMENT; AUTHORITY OF DERIVA15 TIVES CLEARING ORGANIZATION.— 

16 ‘‘(A) IN GENERAL.—It shall be unlawful 

17 for any person, unless registered with the Com18 mission, directly or indirectly to make use of 

19 the mails or any means or instrumentality of 

20 interstate commerce to perform the functions of 

21 a swap data repository or a digital asset reposi22 tory of transactions. 

23 ‘‘(B) REGISTRATION OF DERIVATIVES

24 CLEARING ORGANIZATIONS.—A derivatives 


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1 clearing organization may register as a swap 

2 data repository. 

3 ‘‘(2) INSPECTION AND EXAMINATION.—Each 

4 registered swap data repository and digital asset re5 pository of transactions shall be subject to inspection 

6 and examination by any representative of the Com7 mission. 

8 ‘‘(3) COMPLIANCE WITH CORE PRINCIPLES.— 

9 ‘‘(A) IN GENERAL.—To be registered, and 

10 maintain registration, as a swap data repository 

11 or a digital asset repository of transactions, the 

12 swap data repository or digital asset repository 

13 of transactions shall comply with— 

14 ‘‘(i) the requirements and core prin15 ciples described in this section; and 

16 ‘‘(ii) any requirement that the Com17 mission may impose by rule or regulation 

18 pursuant to section 8a(5). 

19 ‘‘(B) REASONABLE DISCRETION OF REPOS20 ITORY.—Unless otherwise determined by the 

21 Commission by rule or regulation, a swap data 

22 repository or a digital asset repository of trans23 actions described in subparagraph (A) shall 

24 have reasonable discretion in establishing the 

25 manner in which the swap data repository or 


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1 the digital asset repository of transactions com2 plies with the core principles described in this 

3 section. 

4 ‘‘(b) STANDARD SETTING.— 

5 ‘‘(1) DATA IDENTIFICATION.— 

6 ‘‘(A) IN GENERAL.—In accordance with 

7 subparagraph (B), the Commission shall pre8 scribe standards that specify the data elements 

9 for each swap or digital asset that shall be col10 lected and maintained by each registered swap 

11 data repository or digital asset repository of 

12 transactions, respectively. 

13 ‘‘(B) REQUIREMENT.—In carrying out 

14 subparagraph (A), the Commission shall pre15 scribe consistent data element standards appli16 cable to registered entities and reporting 

17 counterparties. 

18 ‘‘(2) DATA COLLECTION AND MAINTENANCE.— 

19 The Commission shall prescribe data collection and 

20 data maintenance standards for swap data reposi21 tories and digital asset trade repositories. 

22 ‘‘(3) COMPARABILITY.—The standards pre23 scribed by the Commission under this subsection 

24 shall be comparable to the data standards imposed 

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1 tions in connection with the clearing of swaps or dig2 ital assets, as appropriate. 

3 ‘‘(c) DUTIES.—A swap data repository or a digital 

4 asset repository of transactions shall— 

5 ‘‘(1) accept data prescribed by the Commission 

6 for each swap or digital asset transaction under sub7 section (b), respectively; 

8 ‘‘(2) confirm with both counterparties to the 

9 swap or the digital asset transaction the accuracy of 

10 the data that was submitted; 

11 ‘‘(3) maintain the data described in paragraph 

12 (1) in such form, in such manner, and for such pe13 riod as may be required by the Commission; 

14 ‘‘(4)(A) provide direct electronic access to the 

15 Commission (or any designee of the Commission, in16 cluding another registered entity); and 

17 ‘‘(B) provide the information described in para18 graph (1) in such form and at such frequency as the 

19 Commission may require to comply with the public 

20 reporting requirements contained in section 

21 2(a)(13); 

22 ‘‘(5) at the direction of the Commission, estab23 lish automated systems for monitoring, screening, 

24 and analyzing swap or digital asset data, including 


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1 compliance and frequency of end user clearing ex2 emption claims by individual and affiliated entities; 

3 ‘‘(6) maintain the privacy of any and all swap 

4 or digital asset transaction information that the 

5 swap data repository or digital asset repository of 

6 transactions, respectively, receives from a swap deal7 er, counterparty, or any other registered entity; 

8 ‘‘(7) on a confidential basis pursuant to section 

9 8, upon request, and after notifying the Commission 

10 of the request, make available swap or digital asset 

11 data obtained by the swap data repository or digital 

12 asset repository of transactions, respectively, includ13 ing individual counterparty trade and position data, 

14 to— 

15 ‘‘(A) each appropriate prudential regulator; 

16 ‘‘(B) the Financial Stability Oversight 

17 Council; 

18 ‘‘(C) the Securities and Exchange Commis19 sion; 

20 ‘‘(D) the Department of Justice; and 

21 ‘‘(E) any other person that the Commis22 sion determines to be appropriate, including— 

23 ‘‘(i) foreign financial supervisors (in24 cluding foreign futures authorities); 

25 ‘‘(ii) foreign central banks; 


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1 ‘‘(iii) foreign ministries; and 

2 ‘‘(iv) other foreign authorities; and 

3 ‘‘(8) establish and maintain emergency proce4 dures, backup facilities, and a plan for disaster re5 covery that allows timely recovery and resumption of 

6 operations and the fulfillment of the responsibilities 

7 and obligations of the organization. 

8 ‘‘(d) CONFIDENTIALITY AGREEMENT.—Before the 

9 swap data repository or digital asset repository of trans10 actions may share information with any entity described 

11 in subsection (c)(7), the swap data repository or digital 

12 asset repository of transactions shall receive a written 

13 agreement from each entity stating that the entity shall 

14 abide by the confidentiality requirements described in sec15 tion 12 of this title relating to information on swap or 

16 digital asset transactions, respectively, that is provided. 

17 ‘‘(e) DESIGNATION OF CHIEF COMPLIANCE OFFI18 CER.— 

19 ‘‘(1) IN GENERAL.—Each swap data repository 

20 or digital asset repository of transactions shall des21 ignate an individual to serve as a chief compliance 

22 officer. 

23 ‘‘(2) DUTIES.—The chief compliance officer 

24 shall— 


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1 ‘‘(A) report directly to the board or to the 

2 senior officer of the swap data repository or 

3 digital asset repository of transactions; 

4 ‘‘(B) review the compliance of the swap 

5 data repository or digital asset repository of 

6 transactions with respect to requirements and 

7 core principles described in this section; 

8 ‘‘(C) in consultation with the board of the 

9 swap data repository or digital asset repository 

10 of transactions, a body performing a function 

11 similar to the board of the swap data repository 

12 or digital asset repository of transactions, or 

13 senior officer of the swap data repository or 

14 digital asset repository of transactions resolve 

15 any conflicts of interest that may arise; 

16 ‘‘(D) be responsible for administering each 

17 policy and procedure that is required to be es18 tablished pursuant to this section; 

19 ‘‘(E) ensure compliance with this Act (in20 cluding regulations) relating to agreements, 

21 contracts, or transactions, including each rule 

22 prescribed by the Commission under this sec23 tion; 


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1 ‘‘(F) establish procedures for the remedi2 ation of noncompliance issues identified by the 

3 chief compliance officer through any— 

4 ‘‘(i) compliance office review; 

5 ‘‘(ii) look-back; 

6 ‘‘(iii) internal or external audit find7 ing; 

8 ‘‘(iv) self-reported error; or 

9 ‘‘(v) validated complaint; and 

10 ‘‘(G) establish and follow appropriate pro11 cedures for handling, management response, re12 mediation, retesting, and closing of noncompli13 ance issues. 

14 ‘‘(3) ANNUAL REPORTS.— 

15 ‘‘(A) IN GENERAL.—In accordance with 

16 rules prescribed by the Commission, the chief 

17 compliance officer shall annually prepare and 

18 sign a report that contains a description of— 

19 ‘‘(i) the compliance of the swap data 

20 repository or the digital asset repository of 

21 transactions, as appropriate, of the chief 

22 compliance office with respect to this Act 

23 (including regulations); and 

24 ‘‘(ii) each policy and procedure of the 

25 swap data repository or the digital asset 


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1 repository of transactions, as appropriate, 

2 of the chief compliance officer (including 

3 the code of ethics and conflict of interest 

4 policies of the swap data repository or the 

5 digital asset repository of transactions, as 

6 appropriate). 

7 ‘‘(B) REQUIREMENTS.—A compliance re8 port under subparagraph (A) shall— 

9 ‘‘(i) accompany each appropriate fi10 nancial report of the swap data repository 

11 or digital asset repository of transactions 

12 that is required to be furnished to the 

13 Commission pursuant to this section; and 

14 ‘‘(ii) include a certification that, under 

15 penalty of law, the compliance report is ac16 curate and complete. 

17 ‘‘(f) CORE PRINCIPLES APPLICABLE TO SWAP DATA

18 REPOSITORIES AND DIGITAL ASSET TRADE REPOSI19 TORIES.— 

20 ‘‘(1) ANTITRUST CONSIDERATIONS.—Unless 

21 necessary or appropriate to achieve the purposes of 

22 this Act, a swap data repository or digital asset re23 pository of transactions shall not— 


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1 ‘‘(A) adopt any rule or take any actions 

2 that result in any unreasonable restraint of 

3 trade; or 

4 ‘‘(B) impose any material anticompetitive 

5 burden on the trading, clearing, or reporting of 

6 transactions. 

7 ‘‘(2) GOVERNANCE ARRANGEMENTS.—Each 

8 swap data repository or digital asset repository of 

9 transactions shall establish governance arrangements 

10 that are transparent— 

11 ‘‘(A) to fulfill public interest requirements; 

12 and 

13 ‘‘(B) to support the objectives of the Fed14 eral Government, owners, and participants. 

15 ‘‘(3) CONFLICTS OF INTEREST.—Each swap 

16 data repository or digital asset repository of trans17 actions shall— 

18 ‘‘(A) establish and enforce rules to mini19 mize conflicts of interest in the decision making 

20 process of the swap data repository or the dig21 ital asset repository of transactions; and 

22 ‘‘(B) establish a process for resolving con23 flicts of interest described in subparagraph (A). 

24 ‘‘(4) ADDITIONAL DUTIES DEVELOPED BY THE

25 COMMISSION.— 


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1 ‘‘(A) IN GENERAL.—The Commission may 

2 develop 1 or more additional duties applicable 

3 to swap data repositories or digital asset trade 

4 repositories. 

5 ‘‘(B) CONSIDERATION OF EVOLVING

6 STANDARDS.—In developing additional duties 

7 under subparagraph (A), the Commission may 

8 take into consideration any evolving standard of 

9 the United States or the international commu10 nity. 

11 ‘‘(C) ADDITIONAL DUTIES FOR COMMIS12 SION DESIGNEES.—The Commission shall es13 tablish additional duties for any registered swap 

14 data repository or digital asset repository of 

15 transactions in order to minimize conflicts of 

16 interest, protect data, ensure compliance, and 

17 guarantee safety and security of the swap data 

18 repository or digital asset repository of trans19 actions. 

20 ‘‘(g) REQUIRED REGISTRATION OF SWAP DATA RE21 POSITORIES AND DIGITAL ASSET TRADE REPOSI22 TORIES.—Any person that is required to be registered as 

23 a swap data repository or a digital asset repository of 

24 transactions under this section shall register with the 

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1 censed as a bank, trust company, money services business, 

2 or registered with the Securities and Exchange Commis3 sion as a security-based swap data repository, broker-deal4 er, qualified custodian, or transfer agent. 

5 ‘‘(h) RULES.—The Commission shall adopt rules gov6 erning persons that are registered under this section.’’. 

7 TITLE III—DIGITAL FEDERAL 

8 RESERVE NOTES, LEGAL TEN9 DER STATUS, THE REGULA10 TION OF DIGITAL ASSET FIAT11 BASED STABLECOINS, AND 

12 FEDERAL DEPOSIT AND 

13 SHARE INSURANCE FOR DIG14 ITAL ASSETS 

15 Subtitle A—Digital Federal Reserve 

16 Notes 

17 SEC. 301. IN GENERAL. 

18 (a) SUPERVISING AND REGULATING ISSUE AND RE19 TIREMENT OF FEDERAL RESERVE NOTES.—Section 

20 11(d) of the Federal Reserve Act (12 U.S.C. 248(d)) is 

21 amended to read as follows: 

22 ‘‘(d) To supervise and regulate through the Secretary 

23 of the Treasury the issue and retirement of Federal Re24 serve notes (both physical and digital), except for the can25 cellation and destruction, and accounting with respect to 


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1 such cancellation and destruction, of notes unfit for cir2 culation, and to prescribe rules and regulations (including 

3 appropriate technology) under which such notes may be 

4 delivered by the Secretary of the Treasury to the Federal 

5 Reserve agents applying therefor.’’. 

6 (b) ISSUANCE TO RESERVE BANKS; NATURE OF OB7 LIGATION; REDEMPTION.—Section 16 of the Federal Re8 serve Act (12 U.S.C. 411) is amended by striking the first 

9 two sentences and inserting: ‘‘Federal reserve notes, to be 

10 issued at the discretion of the Board of Governors of the 

11 Federal Reserve System for the purpose of making ad12 vances to Federal reserve banks through the Federal re13 serve agents as hereinafter set forth and for no other pur14 pose, are authorized. Notwithstanding any other provision 

15 of law, the Board of Governors of the Federal Reserve 

16 System is authorized to issue digital versions of Federal 

17 reserve notes in addition to current physical Federal re18 serve notes. Further, the Board of Governors of the Fed19 eral Reserve System, after consultation with the Secretary 

20 of the Treasury, is authorized to use distributed ledger 

21 technology for the creation, distribution and recordation 

22 of all transactions involving digital Federal reserve notes. 

23 The said notes shall be obligations of the United States 

24 and shall be considered legal tender and shall be receivable 

25 by all national and member banks and Federal reserve 


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1 banks and for all taxes, customs, and other public dues. 

2 They shall be redeemed in lawful money on demand at 

3 the Treasury Department of the United States, in the city 

4 of Washington, District of Columbia, or at any Federal 

5 Reserve bank.’’. 

6 SEC. 302. DIGITAL ASSET LEGAL TENDER STATUS. 

7 Section 5103 of title 31, United States Code, is 

8 amended to read as follows: 

9 ‘‘§ 5103. Legal tender 

10 ‘‘United States coins and currency (including Federal 

11 reserve notes and circulating notes of Federal reserve 

12 banks and national banks) are legal tender for all debts, 

13 public charges, taxes, and dues. Foreign fiat currencies, 

14 digital assets, digital asset securities and foreign gold and 

15 silver coins are not legal tender.’’. 

16 Subtitle B—Regulation of Digital 

17 Asset Fiat-Based Stablecoins 

18 SEC. 311. DEPARTMENT OF TREASURY REGULATION OF 

19 DIGITAL ASSET FIAT-BASED STABLECOINS. 

20 Subchapter I of chapter 51 of subtitle IV of title 31, 

21 United States Code is amended by adding at the end the 

22 following: 


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1 ‘‘§ 5104. Department of Treasury regulation of digital 

2 asset fiat-based stablecoins 

3 ‘‘(a) IN GENERAL.—Beginning on the date of the en4 actment of this section, no person may issue, use, or per5 mit to be used a digital asset fiat-based stablecoin that 

6 is not approved by the Secretary of the Treasury under 

7 subsection (b). 

8 ‘‘(b) APPLICATIONS.— 

9 ‘‘(1) IN GENERAL.—Not later than 90 days 

10 after the date of the enactment of this section, the 

11 Secretary of the Treasury shall establish an applica12 tion process under which the Secretary may approve 

13 or disapprove a person wishing to issue a digital 

14 asset fiat-based stablecoin, under such terms and 

15 conditions as the Secretary determines necessary 

16 and appropriate. 

17 ‘‘(2) CONSULTATION.—In carrying out para18 graph (1), the Secretary of the Treasury shall, in 

19 considering applications for digital asset fiat-based 

20 stablecoins, consult with— 

21 ‘‘(A) the Board of Governors of the Fed22 eral Reserve System; 

23 ‘‘(B) the Securities and Exchange Commis24 sion; 

25 ‘‘(C) the Commodity Futures Trading 

26 Commission; and 


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1 ‘‘(D) such other foreign central banks or 

2 foreign treasury departments or agencies as the 

3 Secretary of the Treasury determines appro4 priate. 

5 ‘‘(3) APPROVAL OR DISAPPROVAL; TERMS AND

6 CONDITIONS CHANGES; TERMINATION.— 

7 ‘‘(A) IN GENERAL.—Subject to subpara8 graph (B), the Secretary of the Treasury may 

9 approve or disapprove an application by an 

10 issuer of a digital asset fiat-based stablecoin or 

11 may withdraw an approval or modify the terms 

12 and conditions of an approval previously issued 

13 under paragraph (1). 

14 ‘‘(B) TIMING.—With respect to a with15 drawal or modification of an approval under 

16 subparagraph (A), the Secretary of the Treas17 ury shall notify the issuer at least 60 days be18 fore such approval is so withdrawn or modified. 

19 ‘‘(4) NO GRANDFATHERING OF EXISTING DIG20 ITAL ASSET FIAT-BASED STABLECOINS.—The Sec21 retary of the Treasury shall not grandfather the use 

22 of any digital asset fiat-based stablecoin. All digital 

23 asset fiat-based stablecoins, including digital asset 

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1 actment of this section, shall apply to the Secretary 

2 of the Treasury under this section. 

3 ‘‘(c) DIGITAL ASSET FIAT-BASED STABLECOIN DE4 FINED.—In this section, the term ‘digital asset fiat-based 

5 stablecoin’ means a digital asset (as defined in section 1a 

6 of the Commodity Exchange Act (7 U.S.C. 1a)) that is, 

7 as determined by the Secretary of the Treasury, tied, 

8 pegged to, or collateralized substantially by— 

9 ‘‘(1) the United States dollar or; 

10 ‘‘(2) one or more fiat currencies.’’. 

11 SEC. 312. CONFORMING AMENDMENT. 

12 The table of contents for subchapter I of chapter 51 

13 of subtitle IV of title 31, United States Code is amended 

14 by adding at the end the following: 

‘‘5104. Department of Treasury regulation of digital asset fiat-based 

stablecoins.’’. 

15 Subtitle C—Federal Deposit and 

16 Share Insurance for Digital Assets 

17 SEC. 321. DIGITAL ASSET NOT DEPOSITS FOR FEDERAL DE18 POSIT AND SHARE INSURANCE. 

19 (a) FEDERAL DEPOSIT INSURANCE ACT.—Section 

20 3(l)(5) of the Federal Deposit Insurance Act (12 U.S.C. 

21 1813(l)(5)) is amended— 

22 (1) in subparagraph (B), by striking ‘‘; and’’ 

23 and inserting a semicolon; 


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1 (2) in subparagraph (C), by striking the period 

2 at the end and inserting ‘‘; and’’; and 

3 (3) by adding at the end the following: 

4 ‘‘(D) any— 

5 ‘‘(i) digital asset (as defined in section 

6 1a of the Commodity Exchange Act (7 

7 U.S.C. 1a)); or 

8 ‘‘(ii) digital asset security (as defined 

9 in section 3(a) of the Securities Exchange 

10 Act of 1934 (15 U.S.C. 78c(a)).’’. 

11 (b) FEDERAL CREDIT UNION ACT.—Section 101(5) 

12 of the Federal Credit Union Act (12 U.S.C. 1752(5)) is 

13 amended by striking ‘‘State law’’ and inserting ‘‘State law: 

14 Provided further: That in no case may such terms include 

15 a digital asset (as defined in section 1a of the Commodity 

16 Exchange Act (7 U.S.C. 1a)) or digital asset security (as 

17 defined in section 3(a) of the Securities Exchange Act of 

18 1934 (15 U.S.C. 78c(a))’’. 

19 SEC. 322. DIRECTED RULEMAKING FDIC AND NCUA 

20 WEBSITE DISCLOSURE ON DIGITAL ASSETS 

21 AND INSURANCE NONCOVERAGE. 

22 (a) FDIC AND NCUA NOTICES.—Not later than 90 

23 days after the date of the enactment of this Act, the Fed24 eral Deposit Insurance Corporation and the National 


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1 Credit Union Administration shall each make publicly 

2 available on the website of such entity a notice— 

3 (1) regarding the treatment of digital assets 

4 and digital asset securities; 

5 (2) that digital assets and digital asset securi6 ties are not ‘‘deposits’’ or ‘‘shares’’ and are not cov7 ered by Federal deposit insurance (FDIC or 

8 NCUA), regardless of whether an insured bank, sav9 ings association, or credit union holds the digital as10 sets or digital assets securities; and 

11 (3) such notice shall specifically address wheth12 er the FDIC Nondeposit Investment Product 

13 (NDIP) Policy Statement and related disclosure ob14 ligations or similar NCUA requirements apply to 

15 digital assets and digital asset securities. 

16 (b) DIGITAL ASSET.—In this section, the term ‘‘dig17 ital asset’’ has the meaning given the term in section 1a 

18 of the Commodity Exchange Act (7 U.S.C. 1a). 

19 (c) DIGITAL ASSET SECURITY.—In this section, the 

20 term ‘‘digital asset security’’ has the meaning given the 

21 term in section 3(a) of the Securities Exchange Act of 

22 1934 (15 U.S.C. Sec. 78c(a)). 


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1 TITLE IV—BANK SECRECY ACT 

2 SEC. 401. BANK SECRECY ACT. 

3 (a) DEFINITION OF MONETARY INSTRUMENTS.— 

4 Section 5312(a)(3)(B) of title 31, United States Code, is 

5 amended— 

6 (1) by inserting ‘‘digital assets,’’ after ‘‘coins 

7 and currency of a foreign country,’’; and 

8 (2) by inserting after ‘‘passed on delivery’’, the 

9 following: ‘‘, digital asset security as such term is 

10 defined in section 3(a) of the Securities Exchange 

11 Act of 1934’’. 

12 (b) DEFINITION OF DIGITAL ASSET AND VIRTUAL

13 ASSET.—Section 5312(a) of title 31, United States Code, 

14 is amended by adding after paragraph (6) the following: 

15 ‘‘(7) DIGITAL ASSET.—The term ‘digital asset’ 

16 has the meaning given the term in section 1a of the 

17 Commodity Exchange Act (7 U.S.C. 1a). 

18 ‘‘(8) VIRTUAL ASSET.—The term ‘virtual asset’ 

19 means— 

20 ‘‘(A) a digital representation of value that 

21 can be digitally traded, or transferred, and can 

22 be used for payment or investment purposes; 

23 and 

24 ‘‘(B) a digital asset.’’. 


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1 (c) DEFINITION OF VIRTUAL ASSET SERVICE PRO2 VIDER.—Section 5312(a) of title 31, United States Code, 

3 is further amended by adding at the end the following: 

4 ‘‘(9) VIRTUAL ASSET SERVICE PROVIDER.—The 

5 term ‘virtual asset service provider’— 

6 ‘‘(A) means a person who— 

7 ‘‘(i) exchanges between digital asset 

8 and fiat currencies; 

9 ‘‘(ii) exchanges between digital assets; 

10 ‘‘(iii) transfers of digital assets; 

11 ‘‘(iv) is responsible for the custody, 

12 safekeeping of a digital asset or an instru13 ment that enables control over a digital 

14 asset; 

15 ‘‘(v) issues or has the authority to re16 deem a digital asset; and 

17 ‘‘(vi) provides financial services re18 lated to the offer or sale of a digital asset 

19 by a person who issues such digital asset; 

20 and 

21 ‘‘(B) does not include any person who— 

22 ‘‘(i) obtains a digital asset to purchase 

23 goods or services for themself; 


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1 ‘‘(ii) provides communication service 

2 or network access services used by a money 

3 transmitter; or 

4 ‘‘(iii) develops, creates, or dissemi5 nates software designed to be used to issue 

6 a digital asset or facilitate financial activi7 ties associated with a digital asset.’’. 

8 (d) ADDITIONAL DEFINITIONS.—Section 5312(c)(1) 

9 of title 31, United States Code, is amended— 

10 (1) in subparagraph (A), by striking the period 

11 at the end and inserting a semicolon; and 

12 (2) by adding after subparagraph (A), the fol13 lowing: 

14 ‘‘(B) any virtual asset service provider 

15 that— 

16 ‘‘(i) exchanges between digital assets 

17 and fiat currencies; 

18 ‘‘(ii) exchanges between digital assets; 

19 ‘‘(iii) transfers digital assets; 

20 ‘‘(iv) is responsible for the custody, 

21 safekeeping or administration of digital as22 sets or instruments enabling control over 

23 digital assets; or 


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1 ‘‘(v) provides financial services related 

2 to the offer or sale of a digital asset by an 

3 issuer.’’. 

4 SEC. 402. ANONYMIZING SERVICES, MONEY MULE, AND AN5 ONYMITY-ENHANCED CONVERTIBLE VIRTUAL 

6 CURRENCIES. 

7 Subchapter II of chapter 53 of subtitle IV of title 

8 31, United States Code is amended by adding at the end 

9 the following: 

10 ‘‘SEC. 5333. ANONYMIZING SERVICES, MONEY MULE, AND 

11 ANONYMITY-ENHANCED CONVERTIBLE VIR12 TUAL CURRENCIES. 

13 ‘‘(a) IN GENERAL.—Not later than 180 days of the 

14 date of the enactment of the Digital Asset Market Struc15 ture and Investor Protection Act, the Secretary of the 

16 Treasury, acting through the Financial Crimes Enforce17 ment Network, shall issue a rule that governs— 

18 ‘‘(1) anonymizing services; 

19 ‘‘(2) money mules; and 

20 ‘‘(3) anonymity-enhanced convertible virtual 

21 currency transactions. 

22 ‘‘(b) PURPOSE.—The purpose of the rule described 

23 in subsection (a) shall be to ensure that anonymizing serv24 ices, money mule, and anonymity-enhanced convertible vir25 tual currencies are not used to prevent association of an 


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1 individual customer with the movement of a digital asset, 

2 digital asset security, or virtual currency of which the cus3 tomer is the direct or beneficial owner. 

4 ‘‘(c) REQUIREMENTS.—The rule described in sub5 section (a) shall— 

6 ‘‘(1) require any financial institution to prohibit 

7 any person from engaging in any transactions that 

8 involves digital assets or digital asset securities 

9 and— 

10 ‘‘(A) anonymizing services; 

11 ‘‘(B) money mules; or 

12 ‘‘(C) anonymity-enhanced convertible vir13 tual currencies; 

14 ‘‘(2) prohibit any financial institution from in15 forming persons about— 

16 ‘‘(A) the existence of anonymizing services, 

17 money mules and anonymity-enhanced convert18 ible virtual currencies; 

19 ‘‘(B) the availability of anonymizing serv20 ices, money mules and anonymity-enhanced 

21 convertible virtual currencies; or 

22 ‘‘(C) means for identifying anonymizing 

23 services, money mules and anonymity-enhanced 

24 convertible virtual currencies; and 


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1 ‘‘(3) require any financial institution to estab2 lish written procedures governing the documentation 

3 of the persons and amounts associated with any 

4 transaction involving— 

5 ‘‘(A) an anonymizing service; 

6 ‘‘(B) a money mule; or 

7 ‘‘(C) anonymity-enhanced convertible vir8 tual currencies. 

9 ‘‘(d) DEFINITIONS.—In this section, the term ‘virtual 

10 currency’, ‘anonymizing service’, ‘money mule’, and ‘ano11 nymity-enhanced convertible virtual currency’ have the 

12 meanings given such terms by the Secretary of the Treas13 ury, acting through the Financial Crimes Enforcement 

14 Network.’’. 

15 SEC. 403. DIGITAL ASSET TRANSACTION ACTUAL DELIVERY 

16 REPORTING. 

17 Not later than 180 days after the date of the enact18 ment of this Act, the Secretary of the Treasury, in con19 sultation with the Commodity Futures Trading Commis20 sion, shall issue a rule that requires, for any transaction 

21 involving a contract of sale of a digital asset (as defined 

22 in section 1a of the Commodity Exchange Act (7 U.S.C. 

23 1a)) in interstate commerce— 

24 (1) the transfer of possession and control (in25 cluding transfer of control over any private keys) by 


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1 the seller to the purchaser not later than 24 hours 

2 after the digital asset transaction is entered into and 

3 such delivery is accomplished by either— 

4 (A) the recording of the transaction on the 

5 public distributed ledger for the digital asset; or 

6 (B) with respect to digital asset trans7 actions which are not recorded on the public 

8 distributed ledger for the digital asset, report9 ing the transaction to a CFTC registered dig10 ital asset repository of transactions. 

11 SEC. 404. VIRTUAL DIGITAL ASSET SERVICE PROVIDERS. 

12 (a) IN GENERAL.—The Secretary of the Treasury 

13 shall, not later than 270 days after the date of the enact14 ment of this Act, issue a rule requiring virtual asset serv15 ice providers (as defined in section 5312(a) of title 31, 

16 United States Code), which are engaged in services which 

17 are available in the United States and to United States 

18 persons, even if the provider is located outside the United 

19 States, related to digital asset securities and digital assets, 

20 that such persons shall be required to— 

21 (1) register with the Securities and Exchange 

22 Commission or with the Commodity Futures Trad23 ing Commission, as appropriate and in such capac24 ities as are appropriate; 


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1 (2) with respect to digital asset securities, meet 

2 the customer protection and account custody rules 

3 which are applicable to Securities Exchange Com4 mission registered broker-dealers for customer funds 

5 and securities; and 

6 (3) with respect to digital assets, meet the cus7 tomer account custody and segregated funds rules 

8 which are applicable to Commodity Futures Trading 

9 Commission registered futures commission mer10 chants. 

11 (b) CUSTOMER ACCOUNTS.—The customer accounts 

12 custody requirements referenced in subsection (a) shall in13 clude, but are not limited to, using registered and qualified 

14 custodians, proper customer account labeling and identi15 fication, minimum of quarterly account statements being 

16 issued to customers by the registered and qualified custo17 dian, annual surprise audit requirements and annual au18 dits by accounting firms which are registered with the 

19 Public Company Accounting Oversight Board. 

20 TITLE V—VARIOUS DIGITAL 

21 ASSET REPORTS 

22 SEC. 501. IRS REPORT ON DIGITAL ASSET OWNERSHIP/ 

23 TAXES. 

24 (a) IN GENERAL.—Not later than 270 days after the 

25 date of the enactment of this Act, the Secretary of the 


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1 Treasury, acting through the Internal Revenue Service, 

2 after consulting with other Federal and State regulators 

3 and market participants as appropriate, shall submit a re4 port to the specified committees on the utilization of dig5 ital assets by United States citizens that— 

6 (1) estimates the number and percentage of 

7 United States citizens who own digital assets as of 

8 the date of the enactment of this Act and who have 

9 paid tax on digital assets each year between 2016 

10 and 2020; 

11 (2) compares the number and percentage of 

12 Americans who own stocks and bonds and who have 

13 paid taxes on such assets over the same time period 

14 referenced above; 

15 (3) estimates the number and percentage of 

16 Americans who fail to report digital asset holdings 

17 and income versus stock and bond holdings; 

18 (4) identifies the major digital asset trading 

19 platforms in the United States, the number of cus20 tomer accounts with each platform, and the annual 

21 trading volume of each platform; 

22 (5) estimates the number of United States citi23 zens who use United States registered digital asset 

24 trading platforms compared to foreign digital asset 

25 trading platforms; 


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1 (6) estimates the amount of tax revenue which 

2 was not received by the United States Treasury due 

3 to under reporting by United States taxpayers each 

4 year between 2016 and 2020; and 

5 (7) makes legislative and regulatory rec6 ommendations regarding changes which would im7 prove reporting and collection of taxes on digital as8 sets so it would be closer to reporting and collection 

9 of taxes on securities holdings. 

10 (b) SPECIFIED COMMITTEES.—In this section, the 

11 term ‘‘specified committees’’ means— 

12 (1) the Ways and Means Committee of the 

13 House of Representatives; 

14 (2) the Finance Committee of the Senate; 

15 (3) the Committee on Financial Services of the 

16 House of Representatives; 

17 (4) the Committee on Banking, Housing, and 

18 Urban Affairs of the Senate; 

19 (5) the Committee on Agriculture of the House 

20 of Representatives; and 

21 (6) the Committee on Agriculture, Nutrition, 

22 and Forestry of the Senate. 

23 SEC. 502. REPORT ON RANSOMWARE AND DIGITAL ASSETS. 

24 (a) REPORT.—Not later than 270 days after the date 

25 of enactment of this Act, the Department of Justice, DeVerDate Sep 11 2014 22:47 Oct 03, 2023 Jkt 049200 PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 E:\BILLS\H5745.IH H5745

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1 partment of Homeland Security, Department of the 

2 Treasury, and Board of Governors of the Federal Reserve 

3 System shall jointly submit a report to the appropriate 

4 committees that— 

5 (1) summarizes the number and size of recent 

6 ransomware attacks in the United States and the 

7 world; 

8 (2) discusses the frequency of ransomware 

9 hackers requesting payment in digital assets and 

10 identifies the most common digital assets which are 

11 demanded; 

12 (3) discusses the use of mixing and tumbling 

13 services and money mules to help obscure audit trail 

14 for the digital assets involved; 

15 (4) identifies the digital asset trading platforms 

16 most frequently used for transactions involving dig17 ital asset ransoms; and 

18 (5) makes legislative and regulatory rec19 ommendations for addressing the problem of 

20 ransomware and digital assets. 

21 (b) APPROPRIATE COMMITTEES.—Appropriate com22 mittees include the Committee on the Judiciary, Com23 mittee on Homeland Security, Committee on Financial 

24 Services, and the Committee on Agriculture of the House 

25 of Representatives, and the Committee on the Judiciary, 


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1 Committee on Homeland Security and Governmental Af2 fairs, Committee on Banking, Housing, and Urban Af3 fairs, Committee on Agriculture, Nutrition, and Forestry 

4 of the Senate. 

5 SEC. 503. REPORT ON DECENTRALIZED FINANCE. 

6 Not later than 270 days after the date of the enact7 ment of this Act, the Board of Governors of the Federal 

8 Reserve System, the Office of the Comptroller of the Cur9 rency, the Secretary of the Treasury, the Securities and 

10 Exchange Commission, and the Commodity Futures Trad11 ing Commission, shall jointly submit a report to the appro12 priate committees that— 

13 (1) summarizes the use of decentralized finance 

14 in the United States; 

15 (2) estimates the number and percentage of 

16 Americans using decentralized finance products and 

17 services versus the global usage and identifies the 

18 major decentralized finance products and services by 

19 estimated dollar volume usage; 

20 (3) provides recommendations with respect to 

21 the definition of the term ‘‘decentralized finance’’ to 

22 be adopted and codified in United States law; 

23 (4) discusses the primary differences between 

24 digital asset fiat-based stablecoins and central bank 

25 digital currencies; 


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1 (5) discusses whether there are financial sta2 bility risks or concerns posed by decentralized fi3 nance; 

4 (6) provides recommendations regarding appro5 priate regulation and investor protection for decen6 tralized finance in United States banking, securities, 

7 and commodities, including with respect to United 

8 States jurisdiction and application of United States 

9 law; and 

10 (7) discusses the legal obligations of creators, 

11 owners, or operators of decentralized finance appli12 cations, distributed ledgers, smart contracts, and 

13 other applications which are hacked or are used for 

14 fraud and manipulation. 

15 SEC. 504. REPORT ON CUSTODY OF DIGITAL ASSETS AND 

16 DIGITAL ASSET SECURITIES. 

17 Not later than 270 days after the date of the enact18 ment of this Act, the Securities and Exchange Commis19 sion, the Office of the Comptroller of the Currency, the 

20 Secretary of the Treasury, and the Commodity Futures 

21 Trading Commission, shall jointly submit a report to the 

22 appropriate committees that— 

23 (1) provides recommendations on the regula24 tion, licensing, and auditing of digital asset 

25 custodians and digital asset security custodians; and 


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1 (2) considers each of the following issues: 

2 (A) The custody of digital assets and dig3 ital asset securities. 

4 (B) Estimates on digital assets and digital 

5 asset securities custody at trading platforms, li6 censed custodians, self custody in wallets. 

7 (C) FINRA Guidance to Broker Dealers 

8 on Digital Asset and Digital Asset Security 

9 Custody. 

10 (D) AICPA position on custody of digital 

11 assets and digital asset securities. 

12 (E) Custodian markets, banks, trust com13 panies, brokers, dealers, and futures commis14 sions merchants. 

15 (F) The background on major United 

16 States and foreign digital asset and digital 

17 asset security custodians by size (assets held) 

18 and licensing. 

19 SEC. 505. REPORT ON DIGITAL ASSET TRADING PLAT20 FORMS. 

21 Not later than 270 days after the date of the enact22 ment of this section, the Securities and Exchange Com23 mission, the Commodity Futures Trading Commission, the 

24 Secretary of the Treasury, and the Financial Crimes En25 forcement Network, in consultation with such Federal and 


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1 State regulators and market participants as the Commis2 sion determines appropriate, shall jointly submit to the 

3 relevant committees a report that— 

4 (1) identifies the 10 largest digital asset trading 

5 platforms in the United States, their registration 

6 status, the number of client accounts each platform 

7 has, and the annual trading volume on each trading 

8 platform over the last 5 years; 

9 (2) summarizes and compares— 

10 (A) the statutory and regulatory require11 ments applicable to United States digital asset 

12 trading platforms (MSBs) which are currently 

13 available to United States investors; and 

14 (B) the statutory and regulatory require15 ments applicable to national securities ex16 changes, alternative trading systems, designated 

17 contract market, and swap execution facility; 

18 (3) identifies and quantifies investor losses re19 lated to all known major foreign and domestic unau20 thorized electronic access or hacks of digital asset 

21 trading platforms in the 5-year period preceding the 

22 date of the enactment of this Act; and 

23 (4) provides legislative and regulatory rec24 ommendations to promote and increase United 


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1 States investor protection with respect to sale or 

2 trading of digital assets and digital asset securities. 

3 The report shall discuss the major differences between 

4 money services businesses and securities/commodities ex5 changes and provide concrete legislative and regulatory 

6 recommendations which would help clarify on what entities 

7 and under what rules and requirements the trading of dig8 ital assets and digital asset securities should take place 

9 as distinguished from the entities and the rules which 

10 should apply to the transmission of monetary instruments. 

11 SEC. 506. REPORT ON FALSE TRADE REPORTING, WASH 

12 TRADING, AND OFF-CHAIN TRANSACTION ON 

13 DIGITAL ASSET TRADING PLATFORMS. 

14 Not later than 270 days after the date of the enact15 ment of this section, the Commodity Futures Trading 

16 Commission, the Secretary of the Treasury, and the Fi17 nancial Crimes Enforcement Network, in consultation 

18 with such Federal and State regulators and market par19 ticipants as the Commission determines appropriate, shall 

20 jointly submit to the relevant committees a report on false 

21 trade reporting, wash trading, and off-chain transactions 

22 with respect to contracts of sale of digital assets in inter23 state commerce that— 

24 (1) with respect to the 5-year period preceding 

25 the date of the enactment of this section, examines 


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1 each public report regarding false trade reporting 

2 and wash trading of digital assets on digital asset 

3 trading platforms; 

4 (2) identifies the US and foreign digital asset 

5 trading platforms which have engaged in significant 

6 false trade reporting and wash trading; 

7 (3) quantifies and estimates the amount of false 

8 trade reporting and wash trading for each year of 

9 the last five years; 

10 (4) discusses the use of omnibus accounts by 

11 digital asset trading platforms to hold customer as12 sets and whether internalization of digital asset 

13 transactions by digital asset trading platforms cre14 ates transparency issues related to the public distrib15 uted ledger having an up-to-date record of all trans16 actions and current ownership of digital assets; 

17 (5) quantifies the amount and average daily 

18 trading volume of off-chain digital asset transactions 

19 occurring on United States digital asset trading 

20 platforms which are not reported to the public dis21 tributed ledger for the digital asset for each of the 

22 last five years; 

23 (6) identifies the entities which have facilitated 

24 false trade reporting; and 


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1 (7) provides legislative and regulatory rec2 ommendations to promote and increase United 

3 States investor protection with respect to digital as4 sets. 

5 SEC. 507. RELEVANT COMMITTEES DEFINED. 

6 The term ‘‘relevant committees’’ means— 

7 (1) the Committee on Financial Services of the 

8 House of Representatives; 

9 (2) the Committee on Banking, Housing, and 

10 Urban Affairs of the Senate; 

11 (3) the Committee on Agriculture of the House 

12 of Representatives; and 

13 (4) the Committee on Agriculture, Nutrition, 

14 and Forestry of the Senate. 

Æ 


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