I 
117TH CONGRESS 
1ST SESSION H. R. 4741 
To provide for the regulation of digital assets, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 28, 2021 
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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Digital Asset Market 
Structure and Investor Protection Act’’. 
SEC. 2. TABLE OF CONTENTS. 
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 classifica-
tion. 
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 INSUR-
ANCE 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 convert-
ible 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 trans-
action on digital asset trading platforms. 
Sec. 507. Relevant committees defined. 
TITLE I—DIGITAL ASSET SECU-
RITIES UNDER THE FEDERAL 
SECURITIES LAWS 
Subtitle A—Securities Exchange 
Act of 1934 
SEC. 101. DEFINITION OF DIGITAL ASSET SECURITY. 
(a) DEFINITION OF SECURITY.—Section 3(a)(10) of 
the Securities Exchange Act of 1934 (15 U.S.C. 
78c(a)(10)) is amended— 
(1) by inserting ‘‘digital asset security,’’ after 
‘‘investment contract,’’; and 
(2) by striking ‘‘; but shall not include cur-
rency’’ and inserting ‘‘; but shall not include any fiat 
currency, commodity, digital asset,’’. 
(b) OTHER DEFINITIONS.—Section 3(a) of the Secu-
rities Exchange Act of 1934 (15 U.S.C. 78c(a)) is amend-
ed— 
(1) by transferring paragraph (79) so as to ap-
pear after paragraph (78); 
(2) by redesignating the second paragraph (80) 
as paragraph (81); and 
(3) by adding at the end the following: 
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‘‘(82) DIGITAL ASSET SECURITY.— 
‘‘(A) IN
GENERAL.—The term ‘digital 
asset security’ means a digital asset that: 
‘‘(i) Provides the holder of the digital 
asset with any of the following rights: 
‘‘(I) Equity or debt interest in 
the issuer. 
‘‘(II) Right to profits, interest, or 
dividend payments from the issuer. 
‘‘(III) Voting rights in the major 
corporate actions (which shall not in-
clude new block creations, hardforks, 
or protocol changes related to the dig-
ital asset) of the issuer. 
‘‘(IV) Liquidation rights in the 
event of the issuer’s liquidation. 
‘‘(ii) In the case of an issuer with a 
service, goods, or platform that is not 
wholly operational at the time of issuing 
such digital asset, with respect to any 
fundraising or capital formation activity 
(including initial coin offerings) which is 
accomplished through the issuance of such 
a digital asset, issues such digital asset to 
a holder in return for money (including 
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other digital assets) to fund the develop-
ment of the proposed service, goods, or 
platform of the issuer. 
‘‘(B) RULE
RELATING
TO
DIGITAL
AS-
SETS.—The term ‘digital asset security’ does 
not include any digital asset other than the dig-
ital assets described in subparagraph (A). Any 
digital asset not described in subparagraph (A) 
shall be considered to be, and regulated as, a 
commodity under the Commodity Exchange Act 
(7 U.S.C. 1a et seq.).’’. 
SEC. 102. DELAYED REGISTRATION FOR DIGITAL ASSET SE-
CURITIES. 
Section 12(g)(1) of the Securities Exchange Act of 
1934 (15 U.S.C. 78l(g)(1)) is amended— 
(1) in subparagraph (A)(ii), by striking ‘‘and’’ 
at the end; 
(2) in subparagraph (B), by inserting ‘‘and’’ 
after ‘‘persons,’’; and 
(3) by inserting after subparagraph (B) the fol-
lowing: 
‘‘(C) in the case of an issuer of a digital asset 
security, not later than 120 days after the last day 
of the third fiscal year on which the issuer first has 
total assets exceeding $10,000,000 and a class of eq-
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uity security (other than an exempted security) held 
of record by 2,000 or more persons,’’. 
SEC. 103. DESECURITIZATION OF DIGITAL ASSET SECURI-
TIES. 
Section 12(g) of the Securities Exchange Act of 1934 
(15 U.S.C. 78l(g)) is amended by adding at the end the 
following: 
‘‘(7) 
DESECURITIZATION
OF
DIGITAL 
ASSET SECURITIES.—Registration of any class 
of digital asset security pursuant to this sub-
section or status as a security (or both) shall be 
terminated ninety days, or such shorter period 
as the Commission may determine, after the 
issuer files a desecuritization certification with 
the Commission. The desecuritization certifi-
cation shall demonstrate that the issuer’s serv-
ice, goods, or platform are fully operational and 
that the digital asset does not provide holders 
of such digital assets with any of the rights 
specified in subclauses (I) through (IV) of sec-
tion 3(a)(82)(A). The Commission shall after 
notice and opportunity for hearing deny termi-
nation of registration or change in status as a 
security (or both) if it finds that the 
desecuritization certification is untrue. Termi-
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nation of registration or change in status (or 
both) shall be deferred pending final determina-
tion on the question of denial. A digital asset 
security so desecuritized shall be considered to 
be, and regulated as, a commodity under the 
Commodity Exchange Act (7 U.S.C. 1a et 
seq.).’’. 
SEC. 104. JOINT SEC AND CFTC RULEMAKING ON MAJOR 
DIGITAL ASSET CLASSIFICATION. 
The Securities Exchange Act of 1934 is amended by 
adding at the end the following: 
‘‘SEC. 105. JOINT SEC AND CFTC RULEMAKING ON MAJOR 
DIGITAL ASSET CLASSIFICATION. 
‘‘(a) IN GENERAL.—Not later than 150 days after 
the date of the enactment of this section, the Commission 
and the Commodity Futures Trading Commission shall 
jointly publish, for purposes of a 60-day public comment 
period, a proposed rulemaking that classifies each of the 
major digital assets by (i) highest market capitalization 
and (ii) highest daily trading volume as either— 
‘‘(1) a digital asset; or 
‘‘(2) a digital asset security. 
‘‘(b) FINAL RULE.—Not later than 270 days after 
the date of the enactment of this Act, the Commission and 
the Commodity Futures Trading Commission shall jointly 
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publish a final rule that classifies each of the major digital 
assets by (i) highest market capitalization and (ii) highest 
daily average trading volume as— 
‘‘(1) a digital asset; or 
‘‘(2) a digital asset security. 
‘‘(c) MAJOR DIGITAL ASSETS DEFINED.—In this 
subsection, the term ‘major digital assets’ means the top 
25 digital assets (including digital asset securities) by (i) 
the highest market capitalization and (ii) the highest daily 
trading volume as of the date of the enactment of the Dig-
ital Asset Market Structure and Investor Protection Act 
as reported on an appropriate publicly available website 
(as jointly determined by the Commission and the Com-
modity Futures Trading Commission) that publishes such 
information, such as CoinMarketCap.’’. 
SEC. 105. CONFORMING AMENDMENTS. 
(a) DEFINITION OF BROKER.—Section 3(a)(4)(A) of 
the Securities Exchange Act of 1934 (15 U.S.C. 78c(a) 
is amended by inserting ‘‘including a digital asset security, 
but not digital assets,’’ after ‘‘security’’. 
(b) SECURITIES EXCHANGE ACT DEFINITIONS.— 
Section 3(a) of the Securities Exchange Act of 1934 (15 
U.S.C. 78c(a)), as amended by section 101, is further 
amended by adding at the end the following: 
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‘‘(83) COMMODITY
EXCHANGE
ACT
TERMS.— 
The terms, ‘commodity’, ‘digital asset’,‘digital asset 
trade repository’, and ‘virtual currency’ have the 
meanings given such terms, respectively, in section 
1a of the Commodity Exchange Act (7 U.S.C. 1a).’’. 
Subtitle B—Other Securities Laws 
SEC. 111. SECURITIES ACT OF 1933. 
(a) DEFINITION OF SECURITY.—Section 2(a)(1) of 
the Securities Act of 1933 (15 U.S.C. 77b(a)(1)) is 
amended— 
(1) by inserting ‘‘digital asset security,’’ after 
‘‘investment contract,’’; and 
(2) by striking the period at the end and insert-
ing ‘‘; but does not include any fiat currency, com-
modity, digital asset, or any note, draft, bill of ex-
change, or banker’s acceptance which has a maturity 
at the time of issuance of not exceeding nine months 
exclusive of days of grace or any renewal thereof the 
maturity of which is likewise limited.’’. 
(b) OTHER DEFINITIONS.—Section 2(a) of the Secu-
rities Act of 1933 (15 U.S.C. 77b(a)) is amended by add-
ing the following: 
‘‘(20) The terms ‘commodity’, ‘digital asset’, 
‘digital asset trade repository’, and ‘virtual currency’ 
have the meanings given such terms, respectively, in 
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section 1a of the Commodity Exchange Act (7 
U.S.C. 1a). 
‘‘(21) The term ‘digital asset security’ has the 
meaning given such term in section 3(a) of the Secu-
rities Exchange Act of 1934 (15 U.S.C. 78c(a)).’’. 
SEC. 112. INVESTMENT ADVISERS ACT OF 1940. 
(a) DEFINITION OF SECURITY.—Section 202(a)(18) 
of the Investment Advisers Act of 1940 (15 U.S.C. 80b– 
2(a)(18)) is amended— 
(1) by inserting ‘‘digital asset security,’’ after 
‘‘investment contract,’’; and 
(2) by striking the period at the end and insert-
ing ‘‘; but does not include any fiat currency, com-
modity, digital asset, or any note, draft, bill of ex-
change, or banker’s acceptance which has a maturity 
at the time of issuance of not exceeding nine months 
exclusive of days of grace or any renewal thereof the 
maturity of which is likewise limited.’’. 
(b) DEFINITION OF DIGITAL ASSET SECURITY.— 
Section 202(a) of the Investment Advisers Act of (15 
U.S.C. 80b–2(a)) is amended by adding at the end the 
following: 
‘‘(31) The term ‘digital asset security’ has the 
meaning given such term section 3(a) of the Securi-
ties Exchange Act of 1934 (15 U.S.C. 78c(a)).’’. 
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(c) OTHER DEFINITIONS.—The second paragraph 
(29) of section 202(a) of the Investment Advisers Act of 
1940 (15 U.S.C. 80b–2(a)(29)) is amended by inserting 
‘‘ ‘commodity’, ‘digital asset’, ‘digital asset trade reposi-
tory’, ‘virtual currency’ ’’, after ‘‘ ‘commodity trading advi-
sor’,’’. 
SEC. 113. INVESTMENT COMPANY ACT OF 1940. 
(a) DEFINITION OF SECURITY.—Section 2(a)(36) of 
the Investment Company Act of 1940 (15 U.S.C. 80b– 
2(a)(36) is amended— 
(1) by inserting ‘‘digital asset security,’’ after 
‘‘investment contract,’’; and 
(2) by striking the period at the end and insert-
ing ‘‘; but does not include any fiat currency, com-
modity, digital asset, or any note, draft, bill of ex-
change, or banker’s acceptance which has a maturity 
at the time of issuance of not exceeding nine months 
exclusive of days of grace or any renewal thereof the 
maturity of which is likewise limited.’’. 
(b) COMMODITY EXCHANGE ACT TERMS.—Section 
2(a)(54) of the Investment Company Act of 1940 (15 
U.S.C. 80a–2(a)) is amended by striking ‘‘and ‘swap exe-
cution facility’ ’’ and inserting ‘‘ ‘swap execution facility’, 
‘commodity’, ‘digital asset’, ‘digital asset trade repository’, 
and ‘virtual currency’ ’’. 
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(c) DEFINITION OF DIGITAL ASSET SECURITY.—Sec-
tion 2(a) of the Investment Company Act of 1940 (15 
U.S.C. 80a–2(a)) is amended by adding at the end the 
following: 
‘‘(55) The term ‘digital asset security’ has the 
meaning given such term in section 3(a) of the Secu-
rities Exchange Act of 1934 (15 U.S.C. 78c(a)).’’. 
SEC. 114. SECURITIES INVESTOR PROTECTION ACT OF 1970. 
(a) IN GENERAL.— 
(1) DEFINITION OF SECURITY.—Section 16(14) 
of the Securities Investor Protection Act of 1970 (15 
U.S.C. 78lll(14)) is amended— 
(A) by inserting ‘‘, digital asset security,’’ 
after ‘‘investment contract’’; 
(B) by inserting ‘‘, digital asset security,’’ 
after ‘‘if such investment contract’’; and 
(C) in the last sentence, by inserting ‘‘dig-
ital asset,’’ after ‘‘commodity,’’. 
(2) OTHER DEFINITIONS.—Section 16 of the 
Securities Investor Protection Act of 1970 (15 
U.S.C. 78lll) is amended by adding the following: 
‘‘(15) COMMODITY
EXCHANGE
ACT
TERMS.— 
The terms ‘commodity’, ‘digital asset’, ‘digital asset 
trade repository’, and ‘virtual currency’ have the 
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meanings given such terms, respectively, in section 
1a of the Commodity Exchange Act (7 U.S.C. 1a). 
‘‘(16) DIGITAL
ASSET
SECURITY.—The term 
‘digital asset security’ has the meaning given such 
term in section 3(a) of the Securities Exchange Act 
of 1934 (15 U.S.C. 78c(a)).’’. 
(b) SIPC NOTICE.—Not later than 90 days after the 
date of the enactment of this Act, the Securities Investor 
Protection Corporation shall make publicly available on 
the website of the Corporation a notice— 
(1) regarding the status of digital assets and 
digital asset securities and how such status impacts 
Securities Investor Protector Corporation insurance 
coverage; and 
(2) that digital assets are not deposits and dig-
ital asset securities are in almost all cases not secu-
rities and neither would be covered by Securities In-
vestor Protection Corporation insurance, regardless 
of whether— 
(A) an insured bank, savings association, 
or credit union holds the digital assets or digital 
asset securities; or 
(B) a broker or dealer (as defined in sec-
tion 3(a) of the Securities Exchange Act of 
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1934 (15 U.S.C. 78c(a))) holds the digital as-
sets or digital asset securities. 
TITLE II—TREATMENT OF DIG-
ITAL 
ASSETS 
UNDER 
THE 
COMMODITY EXCHANGE ACT 
SEC. 201. DEFINITIONS. 
(a) DEFINITION OF COMMODITY.—Section 1a(9) of 
the Commodity Exchange Act (7 U.S.C. 1a(9)) is amend-
ed by adding ‘‘digital asset (including Bitcoin, Ether, and 
their hardforks),’’ after ‘‘livestock products,’’. 
(b) OTHER DEFINITIONS RELATING TO DIGITAL AS-
SETS.—Section 1a of the Commodity Exchange Act (7 
U.S.C 1a) is amended by adding at the end the following: 
‘‘(52) DIGITAL
ASSET.—The term ‘digital 
asset’— 
‘‘(A) means an asset— 
‘‘(i) that is created electronically or 
digitally through software code; 
‘‘(ii) that is programmed with rules 
that— 
‘‘(I) govern the creation, supply, 
ownership, use, and transfer of such 
digital asset; and 
‘‘(II) are designed to resist modi-
fication or tampering by any single 
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person or persons under common con-
trol; 
‘‘(iii) that has a transaction history 
that— 
‘‘(I) is recorded on a— 
‘‘(aa) 
distributed 
digital 
ledger; or 
‘‘(bb) digital data structure 
in which consensus is achieved 
through 
a 
mathematically 
verifiable process; 
‘‘(II) is updated as soon as pos-
sible in accordance with the digital 
asset programming rules related to 
transactions and ownership; and 
‘‘(III) after consensus is reached, 
is designed to prevent modification or 
tampering with the ownership or 
transaction history by any single per-
son or persons under common control; 
‘‘(iv) that is capable of being trans-
ferred between persons through a decen-
tralized method without an intermediate 
custodian; and 
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‘‘(B) is a broad term which includes sev-
eral other terms used to describe digital assets 
by market participants and regulators such as 
‘virtual asset’, ‘virtual currency’, and ‘convert-
ible virtual currency’ among others. 
‘‘(53) DIGITAL
ASSET
SECURITY.—The term 
‘digital asset security’ has the meaning given the 
term in section 3(a) of the Securities Exchange Act 
of 1934 (15 U.S.C. 78c(a)). 
‘‘(54) DIGITAL
ASSET
TRADE
REPOSITORY.— 
The term ‘digital asset trade repository’ means any 
person that collects and maintains information or 
records with respect to transactions or positions in, 
or the terms and conditions of, contracts of sale of 
digital assets in interstate commerce entered into by 
third parties (both on chain public distributed ledger 
transactions as well as off chain transactions) for 
the purpose of providing a centralized recordkeeping 
facility for any digital asset, but does not include a 
private or public distributed ledger or the operator 
of either such ledger unless such private or public 
distributed ledger or operator seeks to aggregate/in-
clude ‘off chain’ transactions as well. 
‘‘(55) DISTRIBUTED LEDGER TECHNOLOGY.— 
The term ‘distributed ledger technology,’ means a 
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decentralized peer-to-peer network of computers that 
operate on open-source software which validate and 
irrevocably log digital asset ownership and trans-
actions on a permanent public distributed ledger 
which is visible to the entire network. 
‘‘(56) VIRTUAL CURRENCY.—The term ‘virtual 
currency’ means a digital asset which is a digital 
representation of value that does not have legal ten-
der status and that functions as a medium of ex-
change, a unit of account, or a store of value.’’. 
(c) DEFINITION
OF COMMODITY TRADING ADVI-
SOR.—Section 1(a)(12)(A)(i) of the Commodity Exchange 
Act (7 U.S.C. 1(a)(12)(A)(i) is amended by adding ‘‘com-
modity interests, including any—’’ after ‘‘advisability of 
trading in’’. 
(d) DEFINITION
OF FUTURES COMMISSION MER-
CHANT.—Section 1a(28)(A)(i)(I)(aa) Commodity Ex-
change Act (7 U.S.C. 1a(9)) is amended— 
(1) in subitem (EE), by striking ‘‘or’’ at the 
end; and 
(2) by adding at the end the following: 
‘‘(GG) any contract of 
sale of a digital asset in 
interstate commerce, but not 
a digital asset security; or’’. 
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(e) DEFINITION OF INTRODUCING BROKER.—Section 
1a(31)(A)(i)(I) of the Commodity Exchange Act (7 U.S.C. 
1a(31)) is amended— 
(1) in item (cc) by striking ‘‘or’’ at the end; 
(2) in item (dd), by striking ‘‘and’’ at the end 
and inserting ‘‘or’’; and 
(3) by adding at the end the following: 
‘‘(ee) any contract of sale of 
a digital asset in interstate com-
merce, but not a digital asset se-
curity; and’’. 
SEC. 202. ACTUAL DELIVERY OF DIGITAL ASSETS. 
Section 2(c)(2)(D)(ii)(III) of the Commodity Ex-
change Act (7 U.S.C. 2(c)(2)(D)(ii)(III)) is amended— 
(1) in item (aa)— 
(A) by striking ‘‘other longer’’ and insert-
ing ‘‘shorter’’; and 
(B) by striking ‘‘; or’’ and inserting a 
semicolon; and 
(2) by adding at the end the following: 
‘‘(cc) with respect to digital 
assets, results in actual delivery 
(including transfer of control 
over private keys) not later than 
24 hours after the transaction is 
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entered into and such delivery is 
accomplished by either— 
‘‘(AA) 
recording 
the 
transaction on the public 
distributed ledger for the 
digital asset; or 
‘‘(BB) with respect to 
digital 
asset 
transactions 
which are not recorded on a 
public distributed ledger for 
the digital asset, reporting 
the transaction to a CFTC 
registered digital asset trade 
repository; or’’. 
SEC. 203. OPTIONAL FEDERAL CHARTER FOR DIGITAL 
ASSET TRADING AND CLEARING. 
Section 2(a)(1) of the Commodity Exchange Act (7 
U.S.C. 2(a)(1)) is amended by adding at the end the fol-
lowing: 
‘‘(J) OPTIONAL
FEDERAL
CHARTER
FOR 
DIGITAL ASSET TRADING AND CLEARING.—Not-
withstanding any other provision of law, a reg-
istered entity may list, trade, or clear a contract 
of sale of a commodity in interstate commerce 
(including digital assets). The registered entity 
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shall apply all the core principles and related 
regulations, including Bank Secrecy Act, anti- 
money laundering and know your customer re-
quirements, to such contracts. The Commission 
shall have exclusive jurisdiction under this para-
graph over any agreement, contract, or trans-
action involving a contract of sale of a com-
modity in interstate commerce (including any 
digital asset) which is listed, traded, or cleared 
on or through a registered entity and, provided 
further, such contracts shall be treated for reg-
ulatory and enforcement purposes as if they 
were contracts of sale of a commodity for future 
delivery.’’. 
SEC. 204. REPORTING REQUIREMENTS. 
Section 2(a)(13) of the Commodity Exchange Act is 
amended— 
(1) by amending the paragraph heading to read 
as follows: ‘‘REPORTING AND PUBLIC AVAILABILITY 
OF SWAP AND DIGITAL ASSET TRANSACTION DATA’’; 
and 
(2) by adding at the end the following: 
‘‘(H) REPORTING
OF
DIGITAL
ASSET 
TRANSACTIONS.—With respect to contracts of 
sale of a digital asset in interstate commerce 
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transactions, actual delivery (including transfer 
of control over private keys) shall occur not 
later than 24 hours after the transaction has 
been entered into and such delivery shall be ac-
complished by either— 
‘‘(i) recording the transaction on the 
public distributed ledger for the digital 
asset; or 
‘‘(ii) with respect to digital asset 
transactions which are not recorded on the 
public distributed ledger for the digital 
asset, reporting the transaction to a CFTC 
registered digital asset trade repository.’’. 
SEC. 205. CTA AND CPOS: COMMODITY INTERESTS. 
Section 4m (3)(C) of the Commodity Exchange Act 
(7 U.S.C. 6m(3)(C)) is amended by replacing the word 
‘‘paragraph’’ with ‘‘Act’’ and striking the word ‘‘physical’’. 
SEC. 206. SWAP DATA REPOSITORIES AND DIGITAL ASSET 
TRADE REPOSITORIES. 
Section 21 of the Commodity Exchange Act (7 U.S.C. 
24a) is amended to read as follows: 
‘‘SEC. 21 SWAP DATA REPOSITORIES AND DIGITAL ASSET 
TRADE REPOSITORIES. 
‘‘(a) REGISTRATION REQUIREMENT.— 
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‘‘(i) the requirements and core prin-
ciples described in this section; and 
‘‘(ii) any requirement that the Com-
mission may impose by rule or regulation 
pursuant to section 8a(5). 
‘‘(B) REASONABLE DISCRETION OF REPOS-
ITORY.—Unless otherwise determined by the 
Commission by rule or regulation, a swap data 
repository or a digital asset trade repository de-
scribed in subparagraph (A) shall have reason-
able discretion in establishing the manner in 
which the swap data repository or the digital 
asset trade repository complies with the core 
principles described in this section. 
‘‘(b) STANDARD SETTING.— 
‘‘(1) DATA IDENTIFICATION.— 
‘‘(A) IN
GENERAL.—In accordance with 
subparagraph (B), the Commission shall pre-
scribe standards that specify the data elements 
for each swap or digital asset that shall be col-
lected and maintained by each registered swap 
data repository or digital asset trade repository, 
respectively. 
‘‘(B) REQUIREMENT.—In carrying out 
subparagraph (A), the Commission shall pre-
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scribe consistent data element standards appli-
cable to registered entities and reporting 
counterparties. 
‘‘(2) DATA COLLECTION AND MAINTENANCE.— 
The Commission shall prescribe data collection and 
data maintenance standards for swap data reposi-
tories and digital asset trade repositories. 
‘‘(3) COMPARABILITY.—The standards pre-
scribed by the Commission under this subsection 
shall be comparable to the data standards imposed 
by the Commission on derivatives clearing organiza-
tions in connection with the clearing of swaps or dig-
ital assets, as appropriate. 
‘‘(c) DUTIES.—A swap data repository or a digital 
asset trade repository shall— 
‘‘(1) accept data prescribed by the Commission 
for each swap or digital asset transaction under sub-
section (b), respectively; 
‘‘(2) confirm with both counterparties to the 
swap or the digital asset transaction the accuracy of 
the data that was submitted; 
‘‘(3) maintain the data described in paragraph 
(1) in such form, in such manner, and for such pe-
riod as may be required by the Commission; 
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‘‘(4)(A) provide direct electronic access to the 
Commission (or any designee of the Commission, in-
cluding another registered entity); and 
‘‘(B) provide the information described in para-
graph (1) in such form and at such frequency as the 
Commission may require to comply with the public 
reporting 
requirements 
contained 
in 
section 
2(a)(13); 
‘‘(5) at the direction of the Commission, estab-
lish automated systems for monitoring, screening, 
and analyzing swap or digital asset data, including 
compliance and frequency of end user clearing ex-
emption claims by individual and affiliated entities; 
‘‘(6) maintain the privacy of any and all swap 
or digital asset transaction information that the 
swap data repository or digital asset trade reposi-
tory, respectively, receives from a swap dealer, 
counterparty, or any other registered entity; 
‘‘(7) on a confidential basis pursuant to section 
8, upon request, and after notifying the Commission 
of the request, make available swap or digital asset 
data obtained by the swap data repository or digital 
asset trade repository, respectively, including indi-
vidual counterparty trade and position data, to— 
‘‘(A) each appropriate prudential regulator; 
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‘‘(B) the Financial Stability Oversight 
Council; 
‘‘(C) the Securities and Exchange Commis-
sion; 
‘‘(D) the Department of Justice; and 
‘‘(E) any other person that the Commis-
sion determines to be appropriate, including— 
‘‘(i) foreign financial supervisors (in-
cluding foreign futures authorities); 
‘‘(ii) foreign central banks; 
‘‘(iii) foreign ministries; and 
‘‘(iv) other foreign authorities; and 
‘‘(8) establish and maintain emergency proce-
dures, backup facilities, and a plan for disaster re-
covery that allows timely recovery and resumption of 
operations and the fulfillment of the responsibilities 
and obligations of the organization. 
‘‘(d) CONFIDENTIALITY AGREEMENT.—Before the 
swap data repository or digital asset trade repository may 
share information with any entity described in subsection 
(c)(7), the swap data repository or digital asset trade re-
pository shall receive a written agreement from each entity 
stating that the entity shall abide by the confidentiality 
requirements described in section 12 of this title relating 
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to information on swap or digital asset transactions, re-
spectively, that is provided. 
‘‘(e) DESIGNATION OF CHIEF COMPLIANCE OFFI-
CER.— 
‘‘(1) IN GENERAL.—Each swap data repository 
or digital asset trade repository shall designate an 
individual to serve as a chief compliance officer. 
‘‘(2) DUTIES.—The chief compliance officer 
shall— 
‘‘(A) report directly to the board or to the 
senior officer of the swap data repository or 
digital asset trade repository; 
‘‘(B) review the compliance of the swap 
data repository or digital asset trade repository 
with respect to requirements and core principles 
described in this section; 
‘‘(C) in consultation with the board of the 
swap data repository or digital asset trade re-
pository, a body performing a function similar 
to the board of the swap data repository or dig-
ital asset trade repository, or senior officer of 
the swap data repository or digital asset trade 
repository resolve any conflicts of interest that 
may arise; 
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‘‘(D) be responsible for administering each 
policy and procedure that is required to be es-
tablished pursuant to this section; 
‘‘(E) ensure compliance with this Act (in-
cluding regulations) relating to agreements, 
contracts, or transactions, including each rule 
prescribed by the Commission under this sec-
tion; 
‘‘(F) establish procedures for the remedi-
ation of noncompliance issues identified by the 
chief compliance officer through any— 
‘‘(i) compliance office review; 
‘‘(ii) look-back; 
‘‘(iii) internal or external audit find-
ing; 
‘‘(iv) self-reported error; or 
‘‘(v) validated complaint; and 
‘‘(G) establish and follow appropriate pro-
cedures for handling, management response, re-
mediation, retesting, and closing of noncompli-
ance issues. 
‘‘(3) ANNUAL REPORTS.— 
‘‘(A) IN
GENERAL.—In accordance with 
rules prescribed by the Commission, the chief 
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compliance officer shall annually prepare and 
sign a report that contains a description of— 
‘‘(i) the compliance of the swap data 
repository or the digital asset trade reposi-
tory, as appropriate, of the chief compli-
ance office with respect to this Act (includ-
ing regulations); and 
‘‘(ii) each policy and procedure of the 
swap data repository or the digital asset 
trade repository, as appropriate, of the 
chief compliance officer (including the code 
of ethics and conflict of interest policies of 
the swap data repository or the digital 
asset trade repository, as appropriate). 
‘‘(B) REQUIREMENTS.—A compliance re-
port under subparagraph (A) shall— 
‘‘(i) accompany each appropriate fi-
nancial report of the swap data repository 
or digital asset trade repository that is re-
quired to be furnished to the Commission 
pursuant to this section; and 
‘‘(ii) include a certification that, under 
penalty of law, the compliance report is ac-
curate and complete. 
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‘‘(f) CORE PRINCIPLES APPLICABLE TO SWAP DATA 
REPOSITORIES
AND DIGITAL ASSET TRADE REPOSI-
TORIES.— 
‘‘(1) 
ANTITRUST
CONSIDERATIONS.—Unless 
necessary or appropriate to achieve the purposes of 
this Act, a swap data repository or digital asset 
trade repository shall not— 
‘‘(A) adopt any rule or take any actions 
that result in any unreasonable restraint of 
trade; or 
‘‘(B) impose any material anticompetitive 
burden on the trading, clearing, or reporting of 
transactions. 
‘‘(2) 
GOVERNANCE
ARRANGEMENTS.—Each 
swap data repository or digital asset trade repository 
shall establish governance arrangements that are 
transparent— 
‘‘(A) to fulfill public interest requirements; 
and 
‘‘(B) to support the objectives of the Fed-
eral Government, owners, and participants. 
‘‘(3) CONFLICTS
OF
INTEREST.—Each swap 
data repository or digital asset trade repository 
shall— 
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‘‘(A) establish and enforce rules to mini-
mize conflicts of interest in the decision making 
process of the swap data repository or the dig-
ital asset trade repository; and 
‘‘(B) establish a process for resolving con-
flicts of interest described in subparagraph (A). 
‘‘(4) ADDITIONAL DUTIES DEVELOPED BY THE 
COMMISSION.— 
‘‘(A) IN GENERAL.—The Commission may 
develop 1 or more additional duties applicable 
to swap data repositories or digital asset trade 
repositories. 
‘‘(B) 
CONSIDERATION
OF
EVOLVING 
STANDARDS.—In developing additional duties 
under subparagraph (A), the Commission may 
take into consideration any evolving standard of 
the United States or the international commu-
nity. 
‘‘(C) ADDITIONAL
DUTIES
FOR
COMMIS-
SION
DESIGNEES.—The Commission shall es-
tablish additional duties for any registered swap 
data repository or digital asset trade repository 
in order to minimize conflicts of interest, pro-
tect data, ensure compliance, and guarantee 
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safety and security of the swap data repository 
or digital asset trade repository. 
‘‘(g) REQUIRED REGISTRATION OF SWAP DATA RE-
POSITORIES
AND
DIGITAL
ASSET
TRADE
REPOSI-
TORIES.—Any person that is required to be registered as 
a swap data repository or a digital asset trade repository 
under this section shall register with the Commission re-
gardless of whether that person is also licensed as a bank, 
trust company, money services business, or registered with 
the Securities and Exchange Commission as a security- 
based swap data repository, broker-dealer, qualified custo-
dian, or transfer agent. 
‘‘(h) RULES.—The Commission shall adopt rules gov-
erning persons that are registered under this section.’’. 
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TITLE 
III—DIGITAL 
FEDERAL 
RESERVE NOTES, LEGAL TEN-
DER STATUS, THE REGULA-
TION OF DIGITAL ASSET FIAT- 
BASED 
STABLECOINS, 
AND 
FEDERAL 
DEPOSIT 
AND 
SHARE INSURANCE FOR DIG-
ITAL ASSETS 
Subtitle A—Digital Federal Reserve 
Notes 
SEC. 301. IN GENERAL. 
(a) SUPERVISING AND REGULATING ISSUE AND RE-
TIREMENT
OF
FEDERAL
RESERVE
NOTES.—Section 
11(d) of the Federal Reserve Act (12 U.S.C. 248(d)) is 
amended to read as follows: 
‘‘(d) To supervise and regulate through the Secretary 
of the Treasury the issue and retirement of Federal Re-
serve notes (both physical and digital), except for the can-
cellation and destruction, and accounting with respect to 
such cancellation and destruction, of notes unfit for cir-
culation, and to prescribe rules and regulations (including 
appropriate technology) under which such notes may be 
delivered by the Secretary of the Treasury to the Federal 
Reserve agents applying therefor.’’. 
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(b) ISSUANCE TO RESERVE BANKS; NATURE OF OB-
LIGATION; REDEMPTION.—Section 16 of the Federal Re-
serve Act (12 U.S.C. 411) is amended by striking the first 
two sentences and inserting: ‘‘Federal reserve notes, to be 
issued at the discretion of the Board of Governors of the 
Federal Reserve System for the purpose of making ad-
vances to Federal reserve banks through the Federal re-
serve agents as hereinafter set forth and for no other pur-
pose, are authorized. Notwithstanding any other provision 
of law, the Board of Governors of the Federal Reserve 
System is authorized to issue digital versions of Federal 
reserve notes in addition to current physical Federal re-
serve notes. Further, the Board of Governors of the Fed-
eral Reserve System, after consultation with the Secretary 
of the Treasury, is authorized to use distributed ledger 
technology for the creation, distribution and recordation 
of all transactions involving digital Federal reserve notes. 
The said notes shall be obligations of the United States 
and shall be considered legal tender and shall be receivable 
by all national and member banks and Federal reserve 
banks and for all taxes, customs, and other public dues. 
They shall be redeemed in lawful money on demand at 
the Treasury Department of the United States, in the city 
of Washington, District of Columbia, or at any Federal 
Reserve bank.’’. 
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SEC. 302. DIGITAL ASSET LEGAL TENDER STATUS. 
Section 5103 of title 31, United States Code, is 
amended to read as follows: 
‘‘§ 5103. Legal tender. 
‘‘United States coins and currency (including Federal 
reserve notes and circulating notes of Federal reserve 
banks and national banks) are legal tender for all debts, 
public charges, taxes, and dues. Foreign fiat currencies, 
digital assets, digital asset securities and foreign gold and 
silver coins are not legal tender.’’. 
Subtitle B—Regulation of Digital 
Asset Fiat-Based Stablecoins 
SEC. 311. DEPARTMENT OF TREASURY REGULATION OF 
DIGITAL ASSET FIAT-BASED STABLECOINS. 
Subchapter I of chapter 51 of subtitle IV of title 31, 
United States Code is amended by adding at the end the 
following: 
‘‘§ 5104. Department of Treasury regulation of digital 
asset fiat-based stablecoins 
‘‘(a) IN GENERAL.—Beginning on the date of the en-
actment of this section, no person may issue, use, or per-
mit to be used a digital asset fiat-based stablecoin that 
is not approved by the Secretary of the Treasury under 
subsection (b). 
‘‘(b) APPLICATIONS.— 
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‘‘(1) IN
GENERAL.—Not later than 90 days 
after the date of the enactment of this section, the 
Secretary of the Treasury shall establish an applica-
tion process under which the Secretary may approve 
or disapprove a person wishing to issue a digital 
asset fiat-based stablecoin, under such terms and 
conditions as the Secretary determines necessary 
and appropriate. 
‘‘(2) CONSULTATION.—In carrying out para-
graph (1), the Secretary of the Treasury shall, in 
considering applications for digital asset fiat-based 
stablecoins, consult with— 
‘‘(A) the Board of Governors of the Fed-
eral Reserve System; 
‘‘(B) the Securities and Exchange Commis-
sion; 
‘‘(C) the Commodity Futures Trading 
Commission; and 
‘‘(D) such other foreign central banks or 
foreign treasury departments or agencies as the 
Secretary of the Treasury determines appro-
priate. 
‘‘(3) APPROVAL OR DISAPPROVAL; TERMS AND 
CONDITIONS CHANGES; TERMINATION.— 
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‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary of the Treasury may 
approve or disapprove an application by an 
issuer of a digital asset fiat-based stablecoin or 
may withdraw an approval or modify the terms 
and conditions of an approval previously issued 
under paragraph (1). 
‘‘(B) TIMING.—With respect to a with-
drawal or modification of an approval under 
subparagraph (A), the Secretary of the Treas-
ury shall notify the issuer at least 60 days be-
fore such approval is so withdrawn or modified. 
‘‘(4) NO GRANDFATHERING OF EXISTING DIG-
ITAL ASSET FIAT-BASED STABLECOINS.—The Sec-
retary of the Treasury shall not grandfather the use 
of any digital asset fiat-based stablecoin. All digital 
asset fiat-based stablecoins, including digital asset 
fiat-based stablecoins existing on the date of the en-
actment of this section, shall apply to the Secretary 
of the Treasury under this section. 
‘‘(c) DIGITAL ASSET FIAT-BASED STABLECOIN DE-
FINED.—In this section, the term ‘digital asset fiat-based 
stablecoin’ means a digital asset (as defined in section 1a 
of the Commodity Exchange Act (7 U.S.C. 1a)) that is, 
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as determined by the Secretary of the Treasury, tied, 
pegged to, or collateralized substantially by— 
‘‘(1) the United States dollar or; 
‘‘(2) one or more fiat currencies.’’. 
SEC. 312. CONFORMING AMENDMENT. 
The table of contents for subchapter I of chapter 51 
of subtitle IV of title 31, United States Code is amended 
by adding at the end the following: 
‘‘5104. Department of Treasury regulation of digital asset fiat-based 
stablecoins.’’. 
Subtitle C—Federal Deposit and 
Share Insurance for Digital Assets 
SEC. 321. DIGITAL ASSET NOT DEPOSITS FOR FEDERAL DE-
POSIT AND SHARE INSURANCE. 
(a) FEDERAL DEPOSIT INSURANCE ACT.—Section 
3(l)(5) of the Federal Deposit Insurance Act (12 U.S.C. 
1813(l)(5)) is amended— 
(1) in subparagraph (B), by striking ‘‘; and’’ 
and inserting a semicolon; 
(2) in subparagraph (C), by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(D) any— 
‘‘(i) digital asset (as defined in section 
1a of the Commodity Exchange Act (7 
U.S.C 1a)); or 
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‘‘(ii) digital asset security (as defined 
in section 3(a) of the Securities Exchange 
Act of 1934 (15 U.S.C. 78c(a)).’’. 
(b) FEDERAL CREDIT UNION ACT.—Section 101(5) 
of the Federal Credit Union Act (12 U.S.C. 1752(5)) is 
amended by striking ‘‘State law’’ and inserting ‘‘State law: 
Provided further: That in no case may such terms include 
a digital asset (as defined in section 1a of the Commodity 
Exchange Act (7 U.S.C 1a)) or digital asset security (as 
defined in section 3(a) of the Securities Exchange Act of 
1934 (15 U.S.C. 78c(a))’’. 
SEC. 
322. 
DIRECTED 
RULEMAKING 
FDIC 
AND 
NCUA 
WEBSITE DISCLOSURE ON DIGITAL ASSETS 
AND INSURANCE NONCOVERAGE. 
(a) FDIC AND NCUA NOTICES.—Not later than 90 
days after the date of the enactment of this Act, the Fed-
eral Deposit Insurance Corporation and the National 
Credit Union Administration shall each make publicly 
available on the website of such entity a notice— 
(1) regarding the treatment of digital assets 
and digital asset securities; 
(2) that digital assets and digital asset securi-
ties are not ‘‘deposits’’ or ‘‘shares’’ and are not cov-
ered by Federal deposit insurance (FDIC or 
NCUA), regardless of whether an insured bank, sav-
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ings association, or credit union holds the digital as-
sets or digital assets securities; and 
(3) such notice shall specifically address wheth-
er the FDIC Nondeposit Investment Product 
(NDIP) Policy Statement and related disclosure ob-
ligations or similar NCUA requirements apply to 
digital assets and digital asset securities. 
(b) DIGITAL ASSET.—In this section, the term ‘‘dig-
ital asset’’ has the meaning given the term in section 1a 
of the Commodity Exchange Act (7 U.S.C. 1a). 
(c) DIGITAL ASSET SECURITY.—In this section, the 
term ‘‘digital asset security’’ has the meaning given the 
term in section 3(a) of the Securities Exchange Act of 
1934 (15 U.S.C. Sec. 78c(a)). 
TITLE IV—BANK SECRECY ACT 
SEC. 401. BANK SECRECY ACT. 
(a) DEFINITION
OF MONETARY INSTRUMENTS.— 
Section 5312(a)(3)(B) of title 31, United States Code, is 
amended— 
(1) by inserting ‘‘digital assets,’’ after ‘‘coins 
and currency of a foreign country,’’; and 
(2) by inserting after ‘‘passed on delivery’’, the 
following: ‘‘, digital asset security as such term is 
defined in section 3(a) of the Securities Exchange 
Act of 1934’’. 
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(b) DEFINITION OF DIGITAL ASSET AND VIRTUAL 
ASSET.—Section 5312(a) of title 31, United States Code, 
is amended by adding after paragraph (6) the following: 
‘‘(7) DIGITAL ASSET.—The term ‘digital asset’ 
has the meaning given the term in section 1a of the 
Commodity Exchange Act (7 U.S.C. 1a). 
‘‘(8) VIRTUAL ASSET.—The term ‘virtual asset’ 
means— 
‘‘(A) a digital representation of value that 
can be digitally traded, or transferred, and can 
be used for payment or investment purposes; 
and 
‘‘(B) a digital asset.’’. 
(c) DEFINITION OF VIRTUAL ASSET SERVICE PRO-
VIDER.—Section 5312(a) of title 31, United States Code, 
is further amended by adding at the end the following: 
‘‘(9) VIRTUAL ASSET SERVICE PROVIDER.—The 
term ‘virtual asset service provider’— 
‘‘(A) means a person who— 
‘‘(i) exchanges between digital asset 
and fiat currencies; 
‘‘(ii) exchanges between digital assets; 
‘‘(iii) transfers of digital assets; 
‘‘(iv) is responsible for the custody, 
safekeeping of a digital asset or an instru-
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ment that enables control over a digital 
asset; 
‘‘(v) issues or has the authority to re-
deem a digital asset; and 
‘‘(vi) provides financial services re-
lated to the offer or sale of a digital asset 
by a person who issues such digital asset; 
and 
‘‘(B) does not include any person who— 
‘‘(i) obtains a digital asset to purchase 
goods or services for themself; 
‘‘(ii) provides communication service 
or network access services used by a money 
transmitter; or 
‘‘(iii) develops, creates, or dissemi-
nates software designed to be used to issue 
a digital asset or facilitate financial activi-
ties associated with a digital asset.’’. 
(d) ADDITIONAL DEFINITIONS.—Section 5312(c)(1) 
of title 31, United States Code, is amended— 
(1) in subparagraph (A), by striking the period 
at the end and inserting a semicolon; and 
(2) by adding after subparagraph (A), the fol-
lowing: 
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‘‘(B) any virtual asset service provider 
that— 
‘‘(i) exchanges between digital assets 
and fiat currencies; 
‘‘(ii) exchanges between digital assets; 
‘‘(iii) transfers digital assets; 
‘‘(iv) is responsible for the custody, 
safekeeping or administration of digital as-
sets or instruments enabling control over 
digital assets; or 
‘‘(v) provides financial services related 
to the offer or sale of a digital asset by an 
issuer.’’. 
SEC. 402. ANONYMIZING SERVICES, MONEY MULE, AND AN-
ONYMITY-ENHANCED CONVERTIBLE VIRTUAL 
CURRENCIES. 
Subchapter II of chapter 53 of subtitle IV of title 
31, United States Code is amended by adding at the end 
the following: 
‘‘SEC. 5333. ANONYMIZING SERVICES, MONEY MULE, AND 
ANONYMITY-ENHANCED CONVERTIBLE VIR-
TUAL CURRENCIES. 
‘‘(a) IN GENERAL.—Not later than 180 days of the 
date of the enactment of the Digital Asset Market Struc-
ture and Investor Protection Act, the Secretary of the 
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SEC. 403. DIGITAL ASSET TRANSACTION ACTUAL DELIVERY 
REPORTING. 
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of the Treasury, in con-
sultation with the Commodity Futures Trading Commis-
sion, shall issue a rule that requires, for any transaction 
involving a contract of sale of a digital asset (as defined 
in section 1a of the Commodity Exchange Act (7 U.S.C. 
1a)) in interstate commerce— 
(1) the transfer of possession and control (in-
cluding transfer of control over any private keys) by 
the seller to the purchaser not later than 24 hours 
after the digital asset transaction is entered into and 
such delivery is accomplished by either— 
(A) the recording of the transaction on the 
public distributed ledger for the digital asset; or 
(B) with respect to digital asset trans-
actions which are not recorded on the public 
distributed ledger for the digital asset, report-
ing the transaction to a CFTC registered dig-
ital asset trade repository. 
SEC. 404. VIRTUAL DIGITAL ASSET SERVICE PROVIDERS. 
(a) IN GENERAL.—The Secretary of the Treasury 
shall, not later than 270 days after the date of the enact-
ment of this Act, issue a rule requiring virtual asset serv-
ice providers (as defined in section 5312(a) of title 31, 
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United States Code), which are engaged in services which 
are available in the United States and to United States 
persons, even if the provider is located outside the United 
States, related to digital asset securities and digital assets, 
that such persons shall be required to— 
(1) register with the Securities and Exchange 
Commission or with the Commodity Futures Trad-
ing Commission, as appropriate and in such capac-
ities as are appropriate; 
(2) with respect to digital asset securities, meet 
the customer protection and account custody rules 
which are applicable to Securities Exchange Com-
mission registered broker-dealers for customer funds 
and securities; and 
(3) with respect to digital assets, meet the cus-
tomer account custody and segregated funds rules 
which are applicable to Commodity Futures Trading 
Commission registered futures commission mer-
chants. 
(b) CUSTOMER ACCOUNTS.—The customer accounts 
custody requirements referenced in subsection (a) shall in-
clude, but are not limited to, using registered and qualified 
custodians, proper customer account labeling and identi-
fication, minimum of quarterly account statements being 
issued to customers by the registered and qualified custo-
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dian, annual surprise audit requirements and annual au-
dits by accounting firms which are registered with the 
Public Company Accounting Oversight Board. 
TITLE V—VARIOUS DIGITAL 
ASSET REPORTS 
SEC. 501. IRS REPORT ON DIGITAL ASSET OWNERSHIP/ 
TAXES. 
(a) IN GENERAL.—Not later than 270 days after the 
date of the enactment of this Act, the Secretary of the 
Treasury, acting through the Internal Revenue Service, 
after consulting with other Federal and State regulators 
and market participants as appropriate, shall submit a re-
port to the specified committees on the utilization of dig-
ital assets by United States citizens that— 
(1) estimates the number and percentage of 
United States citizens who own digital assets as of 
the date of the enactment of this Act and who have 
paid tax on digital assets each year between 2016 
and 2020; 
(2) compares the number and percentage of 
Americans who own stocks and bonds and who have 
paid taxes on such assets over the same time period 
referenced above; 
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(3) estimates the number and percentage of 
Americans who fail to report digital asset holdings 
and income versus stock and bond holdings; 
(4) identifies the major digital asset trading 
platforms in the United States, the number of cus-
tomer accounts with each platform, and the annual 
trading volume of each platform; 
(5) estimates the number of United States citi-
zens who use United States registered digital asset 
trading platforms compared to foreign digital asset 
trading platforms; 
(6) estimates the amount of tax revenue which 
was not received by the United States Treasury due 
to under reporting by United States taxpayers each 
year between 2016 and 2020; and 
(7) makes legislative and regulatory rec-
ommendations regarding changes which would im-
prove reporting and collection of taxes on digital as-
sets so it would be closer to reporting and collection 
of taxes on securities holdings. 
(b) SPECIFIED COMMITTEES.—In this section, the 
term ‘‘specified committees’’ means— 
(1) the Ways and Means Committee of the 
House of Representatives; 
(2) the Finance Committee of the Senate; 
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(3) the Committee on Financial Services of the 
House of Representatives; 
(4) the Committee on Banking, Housing, and 
Urban Affairs of the Senate; 
(5) the Committee on Agriculture of the House 
of Representatives; and 
(6) the Committee on Agriculture, Nutrition, 
and Forestry of the Senate. 
SEC. 502. REPORT ON RANSOMWARE AND DIGITAL ASSETS. 
(a) REPORT.—Not later than 270 days after the date 
of enactment of this Act, the Department of Justice, De-
partment of Homeland Security, Department of the 
Treasury, and Board of Governors of the Federal Reserve 
System shall jointly submit a report to the appropriate 
committees that— 
(1) summarizes the number and size of recent 
ransomware attacks in the United States and the 
world; 
(2) discusses the frequency of ransomware 
hackers requesting payment in digital assets and 
identifies the most common digital assets which are 
demanded; 
(3) discusses the use of mixing and tumbling 
services and money mules to help obscure audit trail 
for the digital assets involved; 
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(4) identifies the digital asset trading platforms 
most frequently used in for transactions involving 
digital asset ransoms; and 
(5) makes legislative and regulatory rec-
ommendations for addressing the problem of 
ransomware and digital assets. 
(b) APPROPRIATE COMMITTEES.—Appropriate com-
mittees include the Committee on the Judiciary, Com-
mittee on Homeland Security, Committee on Financial 
Services, and the Committee on Agriculture of the House 
of Representatives, and the Committee on the Judiciary, 
Committee on Homeland Security and Governmental Af-
fairs, Committee on Banking, Housing, and Urban Af-
fairs, Committee on Agriculture, Nutrition, and Forestry 
of the Senate. 
SEC. 503. REPORT ON DECENTRALIZED FINANCE. 
Not later than 270 days after the date of the enact-
ment of this Act, the Board of Governors of the Federal 
Reserve System, the Office of the Comptroller of the Cur-
rency, the Secretary of the Treasury, the Securities and 
Exchange Commission, and the Commodity Futures Trad-
ing Commission, shall jointly submit a report to the appro-
priate committees that— 
(1) summarizes the use of decentralized finance 
in the United States; 
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(2) estimates the number and percentage of 
Americans using decentralized finance products and 
services versus the global usage and identifies the 
major decentralized finance products and services by 
estimated dollar volume usage; 
(3) provides recommendations with respect to 
the definition of the term ‘‘decentralized finance’’ to 
be adopted and codified in United States law; 
(4) discusses the primary differences between 
digital asset fiat based stablecoins and central bank 
digital currencies; 
(5) discusses whether there are financial sta-
bility risks or concerns posed by decentralized fi-
nance; 
(6) provides recommendations regarding appro-
priate regulation and investor protection for decen-
tralized finance in United States banking, securities, 
and commodities, including with respect to United 
States jurisdiction and application of United States 
law; and 
(7) discusses the legal obligations of creators, 
owners, or operators of decentralized finance appli-
cations, distributed ledgers, smart contracts, and 
other applications which are hacked or are used for 
fraud and manipulation. 
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SEC. 504. REPORT ON CUSTODY OF DIGITAL ASSETS AND 
DIGITAL ASSET SECURITIES. 
Not later than 270 days after the date of the enact-
ment of this Act, the Securities and Exchange Commis-
sion, the Office of the Comptroller of the Currency, the 
Secretary of the Treasury, and the Commodity Futures 
Trading Commission, shall jointly submit a report to the 
appropriate committees that— 
(1) provides recommendations on the regula-
tion, licensing, and auditing of digital asset 
custodians and digital asset security custodians; and 
(2) considers each of the following issues: 
(A) The custody of digital assets and dig-
ital asset securities. 
(B) Estimates on digital assets and digital 
asset securities custody at trading platforms, li-
censed custodians, self custody in wallets. 
(C) FINRA Guidance to Broker Dealers 
on Digital Asset and Digital Asset Security 
Custody. 
(D) AICPA position on custody of digital 
assets and digital asset securities. 
(E) Custodian markets, banks, trust com-
panies, brokers, dealers, and futures commis-
sions merchants. 
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(F) The background on major United 
States and foreign digital asset and digital 
asset security custodians by size (assets held) 
and licensing. 
SEC. 505. REPORT ON DIGITAL ASSET TRADING PLAT-
FORMS. 
Not later than 270 days after the date of the enact-
ment of this section, the Securities and Exchange Com-
mission, the Commodity Futures Trading Commission, the 
Secretary of the Treasury, and the Financial Crimes En-
forcement Network, in consultation with such Federal and 
State regulators and market participants as the Commis-
sion determines appropriate, shall jointly submit to the 
relevant committees a report that— 
(1) identifies the 10 largest digital asset trading 
platforms in the United States, their registration 
status, the number of client accounts each platform 
has, and the annual trading volume on each trading 
platform over the last 5 years; 
(2) summarizes and compares— 
(A) the statutory and regulatory require-
ments applicable to United States digital asset 
trading platforms (MSBs) which are currently 
available to United States investors; and 
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(B) the statutory and regulatory require-
ments applicable to national securities ex-
changes, alternative trading systems, designated 
contract market, and swap execution facility; 
(3) identifies and quantifies investor losses re-
lated to all known major foreign and domestic unau-
thorized electronic access or hacks of digital asset 
trading platforms in the 5-year period preceding the 
date of the enactment of this Act; and 
(4) provides legislative and regulatory rec-
ommendations to promote and increase United 
States investor protection with respect to sale or 
trading of digital assets and digital asset securities. 
The report shall discuss the major differences between 
money services businesses and securities/commodities ex-
changes and provide concrete legislative and regulatory 
recommendations which would help clarify on what entities 
and under what rules and requirements the trading of dig-
ital assets and digital asset securities should take place 
as distinguished from the entities and the rules which 
should apply to the transmission of monetary instruments. 
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SEC. 506. REPORT ON FALSE TRADE REPORTING, WASH 
TRADING, AND OFF-CHAIN TRANSACTION ON 
DIGITAL ASSET TRADING PLATFORMS. 
Not later than 270 days after the date of the enact-
ment of this section, the Commodity Futures Trading 
Commission, the Secretary of the Treasury, and the Fi-
nancial Crimes Enforcement Network, in consultation 
with such Federal and State regulators and market par-
ticipants as the Commission determines appropriate, shall 
jointly submit to the relevant committees a report on false 
trade reporting, wash trading, and off-chain transactions 
with respect to contracts of sale of digital assets in inter-
state commerce that— 
(1) with respect to the 5-year period preceding 
the date of the enactment of this section, examines 
each public report regarding false trade reporting 
and wash trading of digital assets on digital asset 
trading platforms; 
(2) identifies the US and foreign digital asset 
trading platforms which have engaged in significant 
false trade reporting and wash trading; 
(3) quantifies and estimates the amount of false 
trade reporting and wash trading for each year of 
the last five years; 
(4) discusses the use of omnibus accounts by 
digital asset trading platforms to hold customer as-
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