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 
(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 
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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. 
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 
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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-
sets and whether internalization of digital asset 
transactions by digital asset trading platforms cre-
ates transparency issues related to the public distrib-
uted ledger having an up-to-date record of all trans-
actions and current ownership of digital assets; 
(5) quantifies the amount and average daily 
trading volume of off-chain digital asset transactions 
occurring on United States digital asset trading 
platforms which are not reported to the public dis-
tributed ledger for the digital asset for each of the 
last five years; 
(6) identifies the entities which have facilitated 
false trade reporting; and 
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(7) provides legislative and regulatory rec-
ommendations to promote and increase United 
States investor protection with respect to digital as-
sets. 
SEC. 507. RELEVANT COMMITTEES DEFINED. 
The term ‘‘relevant committees’’ means— 
(1) the Committee on Financial Services of the 
House of Representatives; 
(2) the Committee on Banking, Housing, and 
Urban Affairs of the Senate; 
(3) the Committee on Agriculture of the House 
of Representatives; and 
(4) the Committee on Agriculture, Nutrition, 
and Forestry of the Senate. 
Æ 
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