445 
ital commodity broker or registered dig-
ital commodity dealer, respectively. 
‘‘(n) TREATMENT UNDER THE BANK SECRECY 
ACT.—A registered digital commodity broker 
and a registered digital commodity dealer 
shall be treated as a financial institution for 
purposes of the Bank Secrecy Act.’’. 
SEC. 407. REGISTRATION OF ASSOCIATED PERSONS. 
(a) IN GENERAL.—Section 4k of the Com-
modity Exchange Act (7 U.S.C. 6k) is amend-
ed— 
(1) by redesignating subsections (4) 
through (6) as subsections (5) through (7), 
respectively; and 
(2) by inserting after subsection (3) 
the following: 
‘‘(4) It shall be unlawful for any person to 
act as an associated person of a digital com-
modity broker or an associated person of a 
digital commodity dealer unless the person is 
registered with the Commission under this 
Act and such registration shall not have ex-
pired, been suspended (and the period of sus-
pension has not expired), or been revoked. It 
shall be unlawful for a digital commodity 
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broker or a digital commodity dealer to per-
mit such a person to become or remain associ-
ated with the digital commodity broker or 
digital commodity dealer if the digital com-
modity broker or digital commodity dealer 
knew or should have known that the person 
was not so registered or that the registration 
had expired, been suspended (and the period 
of suspension has not expired), or been re-
voked.’’; and 
(3) in subsection (5) (as so redesig-
nated), by striking ‘‘or of a commodity 
trading advisor’’ and inserting ‘‘of a com-
modity trading advisor, of a digital com-
modity broker, or of a digital commodity 
dealer’’. 
(b) CONFORMING AMENDMENTS.—The Com-
modity Exchange Act (7 U.S.C. 1a et seq.) is 
amended by striking ‘‘section 4k(6)’’ each 
place it appears and inserting ‘‘section 4k(7)’’. 
SEC. 408. REGISTRATION OF COMMODITY POOL OPERA-
TORS AND COMMODITY TRADING ADVISORS. 
Section 4m(3) of the Commodity Exchange 
Act (7 U.S.C. 6m(3)) is amended— 
(1) in subparagraph (A)— 
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(A) by striking ‘‘any commodity 
trading advisor’’ and inserting ‘‘a 
commodity pool operator or com-
modity trading advisor’’; and 
(B) by striking ‘‘acting as a com-
modity trading advisor’’ and inserting 
‘‘acting as a commodity pool operator 
or commodity trading advisor’’; and 
(2) in subparagraph (C), by inserting 
‘‘digital 
commodities,’’ 
after 
‘‘physical 
commodities,’’. 
SEC. 409. EXCLUSION FOR ANCILLARY ACTIVITIES. 
The Commodity Exchange Act (7 U.S.C. 1 
et seq.), as amended by the preceding provi-
sions of this Act, is amended by inserting after 
section 4u the following: 
‘‘SEC. 4v. EXCLUSION FOR ANCILLARY ACTIVITIES. 
‘‘(a) IN
GENERAL.—Notwithstanding any 
other provision of this Act, a person shall not 
be subject to this Act and the regulations pro-
mulgated under this Act solely based on the 
person undertaking any ancillary activities. 
‘‘(b) EXCEPTIONS.—Subsection (a) shall not 
be 
construed 
to 
apply 
to 
the 
antimanipulation, antifraud, or false report-
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ing enforcement authorities of the Commis-
sion. 
‘‘(c) ANCILLARY
ACTIVITIES
DEFINED.—In 
this section, the term ‘ancillary activities’ 
means any of the following activities related 
to the operation of a blockchain system: 
‘‘(1) Compiling network transactions, 
operating a pool, relaying, searching, se-
quencing, validating, or acting in a simi-
lar capacity with respect to a digital com-
modity transaction. 
‘‘(2) Providing computational work, 
operating a node, or procuring, offering, 
or utilizing network bandwidth, or other 
similar incidental services with respect 
to a digital commodity transaction. 
‘‘(3) Providing a user interface that 
enables a user to read, and access data 
about a blockchain system, send mes-
sages, 
or 
otherwise 
interact 
with 
a 
blockchain system. 
‘‘(4) Developing, publishing, consti-
tuting, administering, maintaining, or 
otherwise distributing a blockchain sys-
tem. 
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‘‘(5) Developing, publishing, consti-
tuting, administering, maintaining, or 
otherwise distributing software or sys-
tems that create or deploy hardware or 
software, including wallets or other sys-
tems, facilitating an individual user’s 
own personal ability to keep, safeguard, 
or custody a user’s digital commodities or 
related private keys.’’. 
SEC. 410. EFFECTIVE DATE. 
Unless otherwise provided in this title, 
this title and the amendments made by this 
title shall take effect 360 days after the date 
of enactment of this Act, except that, to the 
extent a provision of this title requires a rule-
making, the provision shall take effect on the 
later of— 
(1) 360 days after the date of enact-
ment of this Act; or 
(2) 60 days after the publication in 
the Federal Register of the final rule im-
plementing the provision. 
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TITLE V—INNOVATION AND 
TECHNOLOGY IMPROVEMENTS 
SEC. 501. CODIFICATION OF THE SEC STRATEGIC HUB FOR 
INNOVATION AND FINANCIAL TECHNOLOGY. 
Section 4 of the Securities Exchange Act 
of 1934 (15 U.S.C. 78d) is amended by adding 
at the end the following: 
‘‘(l) STRATEGIC HUB FOR INNOVATION AND FI-
NANCIAL TECHNOLOGY.— 
‘‘(1) OFFICE ESTABLISHED.—There is es-
tablished within the Commission the 
Strategic Hub for Innovation and Finan-
cial Technology (referred to in this sec-
tion as the ‘FinHub’). 
‘‘(2) 
PURPOSES.—The 
purposes 
of 
FinHub are as follows: 
‘‘(A) To assist in shaping the ap-
proach of the Commission to techno-
logical advancements in the financial 
industry. 
‘‘(B) To examine financial tech-
nology 
innovations 
within 
capital 
markets, market participants, and in-
vestors. 
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‘‘(C) To coordinate the response of 
the Commission to emerging tech-
nologies in financial, regulatory, and 
supervisory systems. 
‘‘(3) DIRECTOR
OF
FINHUB.—FinHub 
shall have a Director who shall be ap-
pointed by the Commission, from among 
individuals having experience in both 
emerging technologies and Federal secu-
rities law and serve at the pleasure of the 
Commission. The Director shall report di-
rectly to the Commission and perform 
such functions and duties as the Commis-
sion may prescribe. 
‘‘(4) 
RESPONSIBILITIES.—FinHub 
shall— 
‘‘(A) foster responsible techno-
logical innovation and fair competi-
tion within the Commission, includ-
ing around financial technology, reg-
ulatory technology, and supervisory 
technology; 
‘‘(B) provide internal education 
and training to the Commission re-
garding financial technology; 
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‘‘(C) advise the Commission re-
garding 
financial 
technology 
that 
would serve the Commission’s over-
sight functions; 
‘‘(D) 
analyze 
technological 
ad-
vancements and the impact of regu-
latory requirements on financial tech-
nology companies; 
‘‘(E) advise the Commission with 
respect to rulemakings or other agen-
cy or staff action regarding financial 
technology; 
‘‘(F) provide businesses working 
in 
emerging 
financial 
technology 
fields with information on the Com-
mission, its rules and regulations; and 
‘‘(G) encourage firms working in 
emerging technology fields to engage 
with the Commission and obtain feed-
back from the Commission on poten-
tial regulatory issues. 
‘‘(5) ACCESS TO DOCUMENTS.—The Com-
mission shall ensure that FinHub has full 
access to the documents and information 
of the Commission and any self-regu-
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453 
latory organization, as necessary to carry 
out the functions of FinHub. 
‘‘(6) REPORT TO CONGRESS.— 
‘‘(A) IN GENERAL.—Not later than 
October 31 of each year after 2024, 
FinHub shall submit to the Com-
mittee on Banking, Housing, and 
Urban Affairs of the Senate and the 
Committee on Financial Services of 
the House of Representatives a report 
on the activities of FinHub during the 
immediately preceding fiscal year. 
‘‘(B) CONTENTS.—Each report re-
quired under subparagraph (A) shall 
include— 
‘‘(i) the total number of per-
sons that met with FinHub; 
‘‘(ii) the total number of mar-
ket participants FinHub met with, 
including 
the 
classification 
of 
those participants; 
‘‘(iii) a summary of general 
issues discussed during meetings 
with persons; 
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‘‘(iv) 
information 
on 
steps 
FinHub has taken to improve 
Commission 
services, 
including 
responsiveness to the concerns of 
persons; 
‘‘(v) recommendations— 
‘‘(I) with respect to the 
regulations of the Commission 
and the guidance and orders 
of the Commission; and 
‘‘(II) for such legislative 
actions as the FinHub deter-
mines appropriate; and 
‘‘(vi) any other information, as 
determined appropriate by the 
Director of FinHub. 
‘‘(C) CONFIDENTIALITY.—A report 
under subparagraph (A) may not con-
tain confidential information. 
‘‘(7) SYSTEMS OF RECORDS.— 
‘‘(A) IN
GENERAL.—The Commis-
sion shall establish a detailed system 
of records (as defined under section 
552a of title 5, United States Code) to 
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assist FinHub in communicating with 
interested parties. 
‘‘(B) ENTITIES COVERED BY THE SYS-
TEM.—Entities covered by the system 
required under subparagraph (A) in-
clude entities or persons submitting 
requests or inquiries and other infor-
mation 
to 
Commission 
through 
FinHub. 
‘‘(C) SECURITY
AND
STORAGE
OF 
RECORDS.—FinHub shall store— 
‘‘(i) electronic records— 
‘‘(I) in the system required 
under subparagraph (A); or 
‘‘(II) on the secure net-
work or other electronic me-
dium, such as encrypted hard 
drives or back-up media, of 
the Commission; and 
‘‘(ii) paper records in secure 
facilities. 
‘‘(8) EFFECTIVE DATE.—This subsection 
shall take effect on the date that is 180 
days after the date of the enactment of 
this subsection.’’. 
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456 
SEC. 502. CODIFICATION OF LABCFTC. 
(a) IN GENERAL.—Section 18 of the Com-
modity Exchange Act (7 U.S.C. 22) is amended 
by adding at the end the following: 
‘‘(c) LABCFTC.— 
‘‘(1) ESTABLISHMENT.—There is estab-
lished in the Commission LabCFTC. 
‘‘(2) 
PURPOSE.—The 
purposes 
of 
LabCFTC are to— 
‘‘(A) promote responsible finan-
cial technology innovation and fair 
competition for the benefit of the 
American public; 
‘‘(B) serve as an information plat-
form to inform the Commission about 
new financial technology innovation; 
and 
‘‘(C) provide outreach to financial 
technology 
innovators 
to 
discuss 
their innovations and the regulatory 
framework established by this Act 
and 
the 
regulations 
promulgated 
thereunder. 
‘‘(3) DIRECTOR.—LabCFTC shall have a 
Director, who shall be appointed by the 
Commission and serve at the pleasure of 
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457 
the Commission. Notwithstanding section 
2(a)(6)(A), the Director shall report di-
rectly to the Commission and perform 
such functions and duties as the Commis-
sion may prescribe. 
‘‘(4) DUTIES.—LabCFTC shall— 
‘‘(A) advise the Commission with 
respect to rulemakings or other agen-
cy or staff action regarding financial 
technology; 
‘‘(B) provide internal education 
and training to the Commission re-
garding financial technology; 
‘‘(C) advise the Commission re-
garding 
financial 
technology 
that 
would bolster the Commission’s over-
sight functions; 
‘‘(D) engage with academia, stu-
dents, and professionals on financial 
technology issues, ideas, and tech-
nology relevant to activities under 
this Act; 
‘‘(E) provide persons working in 
emerging technology fields with in-
formation on the Commission, its 
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458 
rules and regulations, and the role of 
a registered futures association; and 
‘‘(F) encourage persons working 
in emerging technology fields to en-
gage with the Commission and obtain 
feedback from the Commission on po-
tential regulatory issues. 
‘‘(5) ACCESS TO DOCUMENTS.—The Com-
mission shall ensure that LabCFTC has 
full access to the documents and informa-
tion of the Commission and any self-regu-
latory organization or registered futures 
association, as necessary to carry out the 
functions of LabCFTC. 
‘‘(6) REPORT TO CONGRESS.— 
‘‘(A) IN GENERAL.—Not later than 
October 31 of each year after 2024, 
LabCFTC shall submit to the Com-
mittee on Agriculture of the House of 
Representatives and the Committee 
on Agriculture, Nutrition, and For-
estry of the Senate a report on its ac-
tivities. 
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the confidentiality requirements in 
section 8. 
‘‘(7) SYSTEMS OF RECORDS.— 
‘‘(A) IN
GENERAL.—The Commis-
sion shall establish a detailed system 
of records (as defined in section 552a 
of title 5, United States Code) to as-
sist LabCFTC in communicating with 
interested parties. 
‘‘(B) PERSONS COVERED BY THE SYS-
TEM.—The persons covered by the sys-
tem of records shall include persons 
submitting requests or inquiries and 
other information to the Commission 
through LabCFTC. 
‘‘(C) SECURITY
AND
STORAGE
OF 
RECORDS.—The system of records shall 
store records electronically or on 
paper in secure facilities, and shall 
store electronic records on the secure 
network of the Commission and on 
other 
electronic 
media, 
such 
as 
encrypted hard drives and back-up 
media, as needed.’’. 
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461 
(b) 
CONFORMING
AMENDMENTS.—Section 
2(a)(6)(A) of such Act (7 U.S.C. 2(a)(6)(A)) is 
amended— 
(1) by striking ‘‘paragraph and in’’ 
and inserting ‘‘paragraph,’’; and 
(2) by inserting ‘‘and section 18(c)(3),’’ 
before ‘‘the executive’’. 
(c) EFFECTIVE DATE.—The Commodity Fu-
tures Trading Commission shall implement 
the amendments made by this section (includ-
ing complying with section 18(c)(7) of the 
Commodity Exchange Act) within 180 days 
after the date of the enactment of this Act. 
SEC. 503. CFTC-SEC JOINT ADVISORY COMMITTEE ON DIG-
ITAL ASSETS. 
(a) ESTABLISHMENT.—The Commodity Fu-
tures Trading Commission and the Securities 
and Exchange Commission (in this section re-
ferred to as the ‘‘Commissions’’) shall jointly 
establish the Joint Advisory Committee on 
Digital Assets (in this section referred to as 
the ‘‘Committee’’). 
(b) PURPOSE.— 
(1) 
IN
GENERAL.—The 
Committee 
shall— 
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462 
(A) provide the Commissions with 
advice on the rules, regulations, and 
policies of the Commissions related to 
digital assets; 
(B) further the regulatory harmo-
nization of digital asset policy be-
tween the Commissions; 
(C) 
examine 
and 
disseminate 
methods for describing, measuring, 
and quantifying digital asset— 
(i) decentralization; 
(ii) functionality; 
(iii) information asymmetries; 
and 
(iv) transaction and network 
security; 
(D) examine the potential for dig-
ital assets, blockchain systems, and 
distributed ledger technology to im-
prove efficiency in the operation of fi-
nancial market infrastructure and 
better protect financial market par-
ticipants, including services and sys-
tems which provide— 
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463 
(i) improved customer protec-
tions; 
(ii) public availability of infor-
mation; 
(iii) greater transparency re-
garding customer funds; 
(iv) reduced transaction cost; 
and 
(v) increased access to finan-
cial market services; and 
(E) discuss the implementation by 
the Commissions of this Act and the 
amendments made by this Act. 
(2) REVIEW BY AGENCIES.—Each Com-
mission shall— 
(A) review the findings and rec-
ommendations of the Committee; 
(B) promptly issue a public state-
ment each time the Committee sub-
mits a finding or recommendation to 
a Commission— 
(i) assessing the finding or 
recommendation 
of 
the 
Com-
mittee; 
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464 
(ii) disclosing the action or 
decision not to take action made 
by the Commission in response to 
a finding or recommendation; and 
(iii) explaining the reasons for 
the action or decision not to take 
action; and 
(C) each time the Committee sub-
mits a finding or recommendation to 
a Commission, provide the Committee 
with a formal response to the finding 
or recommendation not later than 3 
months after the date of the submis-
sion of the finding or recommenda-
tion. 
(c) MEMBERSHIP AND LEADERSHIP.— 
(1) NON-FEDERAL MEMBERS.— 
(A) IN
GENERAL.—The Commis-
sions shall appoint at least 20 non-
governmental stakeholders with a 
wide diversity of opinion and who 
represent a broad spectrum of inter-
ests representing the digital asset 
ecosystem, equally divided between 
the Commissions, to serve as mem-
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bers 
of 
the 
Committee. 
The 
ap-
pointees shall include— 
(i) digital asset issuers; 
(ii) persons registered with 
the Commissions and engaged in 
digital asset related activities; 
(iii) individuals engaged in 
academic research relating to dig-
ital assets; and 
(iv) digital asset users. 
(B) MEMBERS NOT COMMISSION EM-
PLOYEES.—Members appointed under 
subparagraph (A) shall not be deemed 
to be employees or agents of a Com-
mission solely by reason of member-
ship on the Committee. 
(2) 
CO-DESIGNATED
FEDERAL
OFFI-
CERS.— 
(A) NUMBER; APPOINTMENT.—There 
shall be 2 co-designated Federal offi-
cers of the Committee, as follows: 
(i) The Director of LabCFTC 
of the Commodity Futures Trad-
ing Commission. 
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(ii) The Director of the Stra-
tegic Hub for Innovation and Fi-
nancial Technology of the Securi-
ties and Exchange Commission. 
(B) DUTIES.—The duties required 
by chapter 10 of title 5, United States 
Code, to be carried out by a des-
ignated Federal officer with respect 
to the Committee shall be shared by 
the co-designated Federal officers of 
the Committee. 
(3) COMMITTEE LEADERSHIP.— 
(A) COMPOSITION; ELECTION.—The 
Committee members shall elect, from 
among the Committee members— 
(i) a chair; 
(ii) a vice chair; 
(iii) a secretary; and 
(iv) an assistant secretary. 
(B) TERM OF OFFICE.—Each mem-
ber elected under subparagraph (A) 
in a 2-year period referred to in sec-
tion 1013(b)(2) of title 5, United States 
Code, shall serve in the capacity for 
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467 
which the member was so elected, 
until the end of the 2-year period. 
(d) NO
COMPENSATION
FOR
COMMITTEE 
MEMBERS.— 
(1) NON-FEDERAL MEMBERS.—All Com-
mittee members appointed under sub-
section (c)(1) shall— 
(A) serve without compensation; 
and 
(B) while away from the home or 
regular place of business of the mem-
ber in the performance of services for 
the Committee, be allowed travel ex-
penses, including per diem in lieu of 
subsistence, in the same manner as 
persons employed intermittently in 
the Government service are allowed 
expenses under section 5703(b) of 
title 5, United States Code. 
(2) NO
COMPENSATION
FOR
CO-DES-
IGNATED
FEDERAL
OFFICERS.—The co-des-
ignated Federal officers shall serve with-
out compensation in addition to that re-
ceived for their services as officers or em-
ployees of the United States. 
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(e) FREQUENCY
OF MEETINGS.—The Com-
mittee shall meet— 
(1) not less frequently than twice an-
nually; and 
(2) at such other times as either Com-
mission may request. 
(f) DURATION.—Section 1013(a)(2) of title 5, 
United States Code, shall not apply to the 
Committee. 
(g) TIME LIMITS.—The Commissions shall— 
(1) adopt a joint charter for the Com-
mittee within 90 days after the date of 
the enactment of this section; 
(2) appoint members to the Com-
mittee within 120 days after such date of 
enactment; and 
(3) hold the initial meeting of the 
Committee within 180 days after such 
date of enactment. 
(h) 
FUNDING.—The 
Commissions 
shall 
jointly fund the Committee. 
SEC. 504. STUDY ON DECENTRALIZED FINANCE. 
(a) IN GENERAL.—The Commodity Futures 
Trading Commission and the Securities and 
Exchange Commission shall jointly carry out 
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a study on decentralized finance that ana-
lyzes— 
(1) the nature, size, role, and use of 
decentralized finance blockchain proto-
cols; 
(2) the operation of blockchain proto-
cols that comprise decentralized finance; 
(3) the interoperability of blockchain 
protocols and blockchain systems; 
(4) the interoperability of blockchain 
protocols and software-based systems, in-
cluding websites and wallets; 
(5) the decentralized governance sys-
tems through which blockchain protocols 
may be developed, published, constituted, 
administered, maintained, or otherwise 
distributed, including— 
(A) whether the systems enhance 
or detract from— 
(i) the decentralization of the 
decentralized finance; and 
(ii) the inherent risks of the 
decentralized governance system; 
and 
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(B) any procedures or require-
ments that would mitigate the risks 
identified in subparagraph (A)(ii); 
(6) the benefits of decentralized fi-
nance, including— 
(A) 
operational 
resilience 
and 
interoperability of blockchain-based 
systems; 
(B) market competition and inno-
vation; 
(C) transaction efficiency; 
(D) transparency and traceability 
of transactions; and 
(E) disintermediation; 
(7) the risks of decentralized finance, 
including— 
(A) pseudonymity of users and 
transactions; 
(B) disintermediation; and 
(C) cybersecurity vulnerabilities; 
(8) the extent to which decentralized 
finance has integrated with the tradi-
tional financial markets and any poten-
tial risks to stability of the markets; 
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(9) how the levels of illicit activity in 
decentralized finance compare with the 
levels of illicit activity in traditional fi-
nancial markets; 
(10) how decentralized finance may 
increase the accessibility of cross-border 
transactions; and 
(11) the feasibility of embedding self- 
executing compliance and risk controls 
into decentralized finance. 
(b) REPORT.—Not later than 1 year after 
the date of enactment of this Act, the Com-
modity Futures Trading Commission and the 
Securities and Exchange Commission shall 
jointly submit to the relevant congressional 
committees a report that includes the results 
of the study required by subsection (a). 
(c) GAO STUDY.—The Comptroller General 
of the United States shall— 
(1) carry out a study on decentralized 
finance that analyzes the information de-
scribed under paragraphs (1) through 
(11) of subsection (a); and 
(2) not later than 1 year after the date 
of enactment of this Act, submit to the 
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relevant congressional committees a re-
port that includes the results of the study 
required by paragraph (1). 
(d) DEFINITIONS.—In this section: 
(1) DECENTRALIZED FINANCE.— 
(A) IN GENERAL.—The term ‘‘decen-
tralized finance’’ means blockchain 
protocols that allow users to engage 
in financial transactions in a self-di-
rected manner so that a third-party 
intermediary does not effectuate the 
transactions or take custody of dig-
ital assets of a user during any part 
of the transactions. 
(B) RELATIONSHIP TO ANCILLARY AC-
TIVITIES.—The term ‘‘decentralized fi-
nance’’ shall not be interpreted to 
limit or exclude any activity from the 
meaning of ‘‘ancillary activities’’, as 
defined in section 15H(c) of the Secu-
rities Exchange Act of 1934 or section 
4v(c) of the Commodity Exchange Act. 
(2) RELEVANT CONGRESSIONAL COMMIT-
TEES.—The term ‘‘relevant congressional 
committees’’ means— 
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(A) the Committees on Financial 
Services and Agriculture of the House 
of Representatives; and 
(B) the Committees on Banking, 
Housing, and Urban Affairs and Agri-
culture, Nutrition, and Forestry of 
the Senate. 
SEC. 505. STUDY ON NON-FUNGIBLE DIGITAL ASSETS. 
(a) The Comptroller General of the United 
States shall carry out a study of non-fungible 
digital assets that analyzes— 
(1) the nature, size, role, purpose, and 
use of non-fungible digital assets; 
(2) the similarities and differences be-
tween non-fungible digital assets and 
other digital assets, including digital 
commodities and payment stablecoins, 
and how the markets for those digital as-
sets intersect with each other; 
(3) how non-fungible digital assets 
are minted by issuers and subsequently 
administered to purchasers; 
(4) how non-fungible digital assets 
are stored after being purchased by a 
consumer; 
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(5) the interoperability of non-fun-
gible digital assets between different 
blockchain systems; 
(6) the scalability of different non- 
fungible digital asset marketplaces; 
(7) the benefits of non-fungible digital 
assets, including verifiable digital owner-
ship; 
(8) the risks of non-fungible tokens, 
including— 
(A) intellectual property rights; 
(B) cybersecurity risks; and 
(C) market risks; 
(9) whether and how non-fungible 
digital assets have integrated with tradi-
tional marketplaces, including those for 
music, real estate, gaming, events, and 
travel; 
(10) whether non-fungible tokens can 
be used to facilitate commerce or other 
activities through the representation of 
documents, identification, contracts, li-
censes, and other commercial, govern-
ment, or personal records; 
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(11) any potential risks to traditional 
markets from such integration; and 
(12) the levels and types of illicit ac-
tivity in non-fungible digital asset mar-
kets. 
(b) REPORT.—Not later than 1 year after 
the date of the enactment of this Act, the Sec-
retary of Commerce, shall make publicly 
available a report that includes the results of 
the study required by subsection (a). 
SEC. 506. STUDY ON EXPANDING FINANCIAL LITERACY 
AMONGST DIGITAL ASSET HOLDERS. 
(a) IN GENERAL.— The Commodity Futures 
Trading Commission with the Securities and 
Exchange Commission shall jointly conduct a 
study to identify— 
(1) the existing level of financial lit-
eracy among retail digital asset holders, 
including subgroups of investors identi-
fied by the Commodity Futures Trading 
Commission with the Securities and Ex-
change Commission; 
(2) methods to improve the timing, 
content, and format of financial literacy 
materials regarding digital assets pro-
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vided by the Commodity Futures Trading 
Commission and the Securities and Ex-
change Commission; 
(3) methods to improve coordination 
between the Securities and Exchange 
Commission and the Commodity Futures 
Trading Commission with other agencies, 
including the Financial Literacy and 
Education Commission as well as non-
profit organizations and State and local 
jurisdictions, to better disseminate finan-
cial literacy materials; 
(4) the efficacy of current financial 
literacy efforts with a focus on rural com-
munities and communities with majority 
minority populations; 
(5) the most useful and understand-
able relevant information that retail dig-
ital asset holders need to make informed 
financial decisions before engaging with 
or purchasing a digital asset or service 
that is typically sold to retail investors of 
digital assets; 
(6) the most effective public-private 
partnerships in providing financial lit-
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477 
eracy regarding digital assets to con-
sumers; 
(7) the most relevant metrics to meas-
ure successful improvement of the finan-
cial literacy of an individual after engag-
ing with financial literacy efforts; and 
(8) in consultation with the Financial 
Literacy and Education Commission, a 
strategy (including to the extent prac-
ticable, measurable goals and objectives) 
to increase financial literacy of investors 
regarding digital assets. 
(b) REPORT.—Not later than 1 year after 
the date of the enactment of this Act, the Com-
modity Futures Trading Commission and the 
Securities and Exchange Commission shall 
jointly submit a written report on the study 
required by subsection (a) to the Committees 
on Financial Services and on Agriculture of 
the House of Representatives and the Com-
mittees on Banking, Housing, and Urban Af-
fairs and on Agriculture, Nutrition, and For-
estry of the Senate. 
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SEC. 507. STUDY ON FINANCIAL MARKET INFRASTRUCTURE 
IMPROVEMENTS. 
(a) IN GENERAL.—The Commodity Futures 
Trading Commission and the Securities and 
Exchange Commission shall jointly conduct a 
study to assess whether additional guidance 
or rules are necessary to facilitate the devel-
opment of tokenized securities and deriva-
tives products, and to the extent such guid-
ance or rules would foster the development of 
fair and orderly financial markets, be nec-
essary or appropriate in the public interest, 
and be consistent with the protection of in-
vestors and customers. 
(b) REPORT.— 
(1) TIME LIMIT.—Not later than 1 year 
after the date of enactment of this Act, 
the Commodity Futures Trading Commis-
sion and the Securities and Exchange 
Commission shall jointly submit to the 
relevant congressional committees a re-
port that includes the results of the study 
required by subsection (a). 
(2) RELEVANT CONGRESSIONAL COMMIT-
TEES DEFINED.—In this section, the term 
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‘‘relevant 
congressional 
committees’’ 
means— 
(A) the Committees on Financial 
Services and on Agriculture of the 
House of Representatives; and 
(B) the Committees on Banking, 
Housing, and Urban Affairs and on 
Agriculture, Nutrition, and Forestry 
of the Senate. 
TITLE VI—MISCELLANEOUS 
SEC. 601. FINDINGS; SENSE OF CONGRESS. 
(a) FINDINGS.—Congress finds the fol-
lowing: 
(1) Entrepreneurs and innovators are 
building and deploying this next genera-
tion of the internet. 
(2) Digital asset networks represent a 
new way for people to join together and 
cooperate with one another to undertake 
certain activities. 
(3) Digital assets have the potential to 
be the foundational building blocks of 
these networks, aligning the economic in-
centive for individuals to cooperate with 
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one another to achieve a common pur-
pose. 
(4) The digital asset ecosystem has 
the potential to grow our economy and 
improve everyday lives of Americans by 
facilitating collaboration through the use 
of technology to manage activities, allo-
cate resources, and facilitate decision 
making. 
(5) Blockchain networks and the dig-
ital assets they empower provide creator 
control, enhance transparency, reduce 
transaction costs, and increase efficiency 
if proper protections are put in place for 
investors, consumers, our financial sys-
tem, and our national security. 
(6) Blockchain technology facilitates 
new 
types 
of 
network 
participation 
which businesses in the United States 
may utilize in innovative ways. 
(7) Other digital asset companies are 
setting up their operations outside of the 
United States, where countries are estab-
lishing frameworks to embrace the poten-
tial of blockchain technology and digital 
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assets and provide safeguards for con-
sumers. 
(8) Digital assets, despite the pur-
ported anonymity, provide law enforce-
ment with an exceptional tracing tool to 
identify illicit activity and bring crimi-
nals to justice. 
(9) The Financial Services Committee 
of the House of Representatives has held 
multiple hearings highlighting various 
risks that digital assets can pose to the fi-
nancial markets, consumers, and inves-
tors that must be addressed as we seek to 
harness the benefits of these innovations. 
(b) SENSE OF CONGRESS.—It is the sense of 
Congress that— 
(1) the United States should seek to 
prioritize understanding the potential op-
portunities of the next generation of the 
internet; 
(2) the United States should seek to 
foster advances in technology that have 
robust evidence indicating they can im-
prove our financial system and create 
more fair and equitable access to finan-
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cial services for everyday Americans 
while protecting our financial system, in-
vestors, and consumers; 
(3) the United States must support 
the responsible development of digital as-
sets and the underlying technology in the 
United States or risk the shifting of the 
development of such assets and tech-
nology outside of the United States, to 
less regulated countries; 
(4) Congress should consult with pub-
lic and private sector stakeholders to un-
derstand how to enact a functional 
framework tailored to the specific risks 
and unique benefits of different digital 
asset-related activities, distributed ledger 
technology, distributed networks, and de-
centralized systems; and 
(5) enact a functional framework tai-
lored to the specific risks of different dig-
ital asset-related activities and unique 
benefits of distributed ledger technology, 
distributed networks, and decentralized 
systems; and 
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(6) consumers and market partici-
pants will benefit from a framework for 
digital 
assets 
consistent 
with 
long-
standing investor protections in securi-
ties and commodities markets, yet tai-
lored to the unique benefits and risks of 
the digital asset ecosystem. 
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Union Calendar No. 401 
118TH CONGRESS 
2D SESSION 
H. R. 4763 
[Report No. 118–484, Parts I and II] 
A BILL 
To provide for a system of regulation of digital as-
sets by the Commodity Futures Trading Com-
mission and the Securities and Exchange Com-
mission, and for other purposes. 
MAY 6, 2024 
Reported from the Committee on Agriculture with an 
amendment 
MAY 6, 2024 
Reported from the Committee on Financial Services with 
an amendment; committed to the Committee of the 
Whole House on the State of the Union and ordered 
to be printed 
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