‘‘(B) the methodology used by the Com-
mission to generate the estimate described in 
subparagraph (A). 
‘‘(3) PUBLICATION.—Using the methodology 
described in paragraph (2)(B), the Commission shall 
publish on the website of the Commission, and peri-
odically update on a timely basis, an estimate of the 
energy consumption and sources of energy used in 
connection with the creation and transfer of the 
most widely traded digital commodities. 
‘‘(h) PROHIBITION ON FRAUD, DECEPTION, AND MA-
NIPULATION.—It shall be unlawful for any digital com-
modity platform to engage in any act, practice, or course 
of business in connection with its business as a digital 
commodity platform that is fraudulent, deceptive, or ma-
nipulative. 
‘‘(i) SELF-REGULATION.— 
‘‘(1) 
IN
GENERAL.—A 
digital 
commodity 
broker, digital commodity dealer, or digital com-
modity custodian shall be a member of a registered 
futures association, regardless of whether such per-
son is separately registered as a digital commodity 
trading facility. 
‘‘(2) DELEGATION
OF
REGISTRATION
FUNC-
TIONS.—The Commission may authorize any reg-
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istered futures association to perform any portion of 
the registration functions with respect to digital 
commodity platforms, associated persons of digital 
commodity brokers, and associated persons of digital 
commodity dealers— 
‘‘(A) in accordance with rules, notwith-
standing any other provision of law, adopted by 
that registered futures association and sub-
mitted to the Commission for approval; and 
‘‘(B) subject to the provisions of this sec-
tion applicable to registrations granted by the 
Commission. 
‘‘(j) DUAL REGISTRATION.—A digital commodity 
platform registered under this section may also be reg-
istered with the Securities and Exchange Commission as 
an exchange, broker, or dealer (as those terms are defined 
in section 3 of the Securities Exchange Act of 1934 (15 
U.S.C. 78c)) or another trading platform. 
‘‘(k) FEES FOR REGISTRATION.— 
‘‘(1) IN GENERAL.—The Commission shall, in 
accordance with this subsection, assess and collect 
fees, which shall be used to recover the annual costs 
of— 
‘‘(A) registering digital commodity plat-
forms; 
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‘‘(B) conducting oversight of digital com-
modity trades; and 
‘‘(C) carrying out education and outreach 
under subsection (l). 
‘‘(2) DETERMINATION OF FEE RATES.—In de-
termining fee rates under paragraph (1), the Com-
mission shall consider— 
‘‘(A) the volume of business of the digital 
commodity platform; and 
‘‘(B) the category of the digital commodity 
platform. 
‘‘(3) PROHIBITIONS.— 
‘‘(A) COMMISSION.—The Commission shall 
not require a digital commodity platform to col-
lect directly from customers a per-transaction 
fee for each digital commodity trade. 
‘‘(B) DIGITAL COMMODITY PLATFORMS.— 
A digital commodity platform shall not impose 
directly on customers a per-transaction fee for 
each digital commodity trade to pay the fees 
under paragraph (1). 
‘‘(4) PUBLICATION.—Not later than 60 days 
after the date of enactment of an Act making a reg-
ular appropriation to the Commission for a fiscal 
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year, the Commission shall publish in the Federal 
Register a notice of— 
‘‘(A) the fee rates determined pursuant to 
this subsection for that fiscal year; and 
‘‘(B) any estimates or projections on which 
those fee rates are based. 
‘‘(5) RECORDS AND DISCLOSURE.—In carrying 
out this subsection, the Commission shall not be re-
quired to comply with section 553 of title 5, United 
States Code. 
‘‘(6) NO JUDICIAL REVIEW.—A fee rate pre-
scribed under this subsection shall not be subject to 
judicial review. 
‘‘(7) DEPOSIT OF FEES.—Fees collected pursu-
ant to this subsection for any fiscal year shall be de-
posited and credited as offsetting collections to the 
account providing appropriations to the Commission. 
‘‘(8) ANNUAL
ADJUSTMENT.—For each fiscal 
year, the Commission shall, by order, determine fee 
rates pursuant to this subsection that are reasonably 
likely to produce aggregate fee collections that are 
equal to the annual appropriation to the Commission 
by Congress for activities relating to the registration 
of digital commodity platforms and the oversight of 
digital commodity trades. 
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‘‘(9) LAPSE
OF
APPROPRIATION.—If, on the 
first day of a fiscal year, a regular appropriation to 
the Commission has not been enacted, the Commis-
sion shall continue to collect (as offsetting collec-
tions) fees pursuant to this subsection at each of the 
rates in effect during the preceding fiscal year. 
‘‘(10) BUDGET
REQUESTS.—The Commission 
shall itemize in each budget submitted to the Presi-
dent or the Office of Management and Budget the 
estimated annual costs of— 
‘‘(A) registering digital commodity plat-
forms; 
‘‘(B) conducting oversight of digital com-
modity trades; and 
‘‘(C) carrying out education and outreach 
under subsection (l). 
‘‘(11) LIMITATIONS.— 
‘‘(A) IN GENERAL.—Fees may only be as-
sessed and imposed pursuant to this subsection 
on digital commodity platforms regulated by the 
Commission pursuant to this section. 
‘‘(B) USE
OF
FEES.—Fees authorized 
under this subsection are prohibited from fund-
ing any Commission activity not directly related 
to the registration of digital commodity plat-
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forms, the oversight of digital commodity 
trades, and the education and outreach carried 
out under subsection (l). 
‘‘(l) CUSTOMER EDUCATION AND OUTREACH.—The 
Commission shall provide education and outreach to cus-
tomers participating in digital commodity markets. 
‘‘(m) INSPECTION.—The Commission may inspect 
and monitor digital commodity platforms, on an ongoing 
basis, for the purpose of ensuring compliance with this 
Act. 
‘‘(n) PREEMPTION OF STATE LAWS.— 
‘‘(1) IN GENERAL.—The registration of a dig-
ital commodity platform, an associated person of a 
digital commodity broker, or an associated person of 
a digital commodity dealer under this section— 
‘‘(A) shall preempt any applicable registra-
tion requirements under State laws relating to 
money transmission, virtual currency, and com-
modity brokers; and 
‘‘(B) shall not affect the applicability of 
State antifraud laws. 
‘‘(2) COMPLIANCE.—Beginning on the effective 
date of a registration of a digital commodity plat-
form under this section, the digital commodity plat-
form shall not be required to comply with applicable 
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State law requirements relating to money trans-
mission, virtual currency, and commodity brokerage. 
‘‘(o) REGULATIONS.—The Commission shall pre-
scribe such rules and regulations as are appropriate for 
the implementation of this section.’’. 
SEC. 5. ADDITIONAL AMENDMENTS. 
(a) RETAIL COMMODITY TRANSACTIONS.—Section 
2(c)(2)(D)(ii) of the Commodity Exchange Act (7 U.S.C. 
2(c)(2)(D)(ii)) is amended— 
(1) in subclause (III)(bb), by striking ‘‘or’’ at 
the end; 
(2) by redesignating subclauses (IV) and (V) as 
subclauses (V) and (VI), respectively; and 
(3) by inserting after subclause (III) the fol-
lowing: 
‘‘(IV) 
a 
digital 
commodity 
trade;’’. 
(b) APPLICABILITY.—Section 2(i) of the Commodity 
Exchange Act (7 U.S.C. 2(i)) is amended— 
(1) by redesignating paragraphs (1) and (2) as 
subparagraphs (A) and (B), respectively, and indent-
ing appropriately; 
(2) in the matter preceding subparagraph (A) 
(as so redesignated), by striking ‘‘The provisions’’ 
and inserting the following: 
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‘‘(1) SWAPS.—The provisions’’; and 
(3) by adding at the end the following: 
‘‘(2) DIGITAL
COMMODITIES.—The provisions 
of this Act (including any rule prescribed or regula-
tion promulgated under this Act) relating to digital 
commodities shall not apply to activities outside the 
United States unless those activities— 
‘‘(A) have a reasonably foreseeable signifi-
cant effect within the United States; 
‘‘(B) involve, for the purpose of soliciting 
or accepting any order for, or otherwise dealing 
in, digital commodities— 
‘‘(i) the offering to enter into, enter-
ing into, execution, or confirming the exe-
cution of digital commodities with any 
United States person; or 
‘‘(ii) the conducting of any office or 
business anywhere in the United States 
(including any territory or possession of 
the United States); or 
‘‘(C) contravene such rules or regulations 
as the Commission may prescribe or promulgate 
as are necessary or appropriate to prevent the 
evasion of any provision of this Act.’’. 
(c) REGISTRATION OF ASSOCIATED PERSONS.— 
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(1) IN
GENERAL.—Section 4k of the Com-
modity Exchange Act (7 U.S.C. 6k) is amended— 
(A) 
by 
redesignating 
paragraphs 
(4) 
through (6) as paragraphs (5) through (7); 
(B) by inserting after paragraph (3) the 
following: 
‘‘(4) It shall be unlawful for any person to act 
as an associated person of a digital commodity 
broker or an associated person of a digital com-
modity dealer unless such person is registered with 
the Commission under this Act and such registration 
shall not have expired, been suspended (and the pe-
riod of suspension has not expired), or been revoked. 
It shall be unlawful for a digital commodity broker 
or a digital commodity dealer to permit such a per-
son to become or remain associated with the digital 
commodity broker or digital commodity dealer if 
such digital commodity broker or digital commodity 
dealer knew or should have known that such person 
was not so registered or that such registration had 
expired, been suspended (and the period of suspen-
sion has not expired), or been revoked.’’; and 
(C) in paragraph (5) (as so redesignated), 
by striking ‘‘or of a commodity trading advisor’’ 
and inserting ‘‘of a commodity trading advisor, 
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of a digital commodity broker, or of a digital 
commodity dealer’’. 
(2) CONFORMING
AMENDMENT.—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)’’. 
(d) COMMODITY TRADING ADVISERS; COMMODITY 
POOL OPERATORS.— 
(1) IN GENERAL.—Section 4l of the Commodity 
Exchange Act (7 U.S.C. 6l) is amended— 
(A) in paragraph (2), by striking ‘‘deriva-
tives transaction execution facilities’’ and in-
serting ‘‘digital commodity trades on or subject 
to the rules of digital commodity trading facili-
ties’’; and 
(B) in paragraph (3), by striking ‘‘deriva-
tives transaction execution facilities’’ and in-
serting ‘‘digital commodity trading facilities’’. 
(2) USE OF MAIL OR OTHER INTERSTATE COM-
MERCE.—Section 4m(3)(C) of the Commodity Ex-
change Act (7 U.S.C. 6m(3)(C)) is amended by in-
serting ‘‘digital commodity trades,’’ before ‘‘and any 
monies’’. 
(3) REGISTRATION.—Section 4n(3)(B) of the 
Commodity Exchange Act (7 U.S.C. 6n(3)(B)) is 
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amended by inserting ‘‘or digital commodity’’ after 
‘‘futures market’’. 
(e) ACCEPTABLE
BUSINESS
PRACTICES
UNDER 
CORE PRINCIPLES.—Section 5c(a)(1) of the Commodity 
Exchange Act (7 U.S.C. 7a–2(a)(1)) is amended by strik-
ing ‘‘and 5b(c)(2),’’ and inserting ‘‘, 5b(c)(2), and 5i(b)’’. 
(f) PUBLIC DISCLOSURE.—Section 8(a)(1) of the 
Commodity Exchange Act (7 U.S.C. 12(a)(1)) is amended, 
in the first sentence of the matter preceding subparagraph 
(A), by inserting ‘‘, digital commodity platforms,’’ after 
‘‘boards of trade’’. 
(g) REGISTRATION OF COMMODITY DEALERS AND 
ASSOCIATED PERSONS.—Section 8a of the Commodity 
Exchange Act (7 U.S.C. 12a) is amended— 
(1) in paragraph (1), by inserting ‘‘digital com-
modity brokers, associated persons of digital com-
modity brokers, digital commodity dealers, associ-
ated persons of digital commodity dealers,’’ after ‘‘to 
register’’; 
(2) in paragraph (2)— 
(A) in subparagraph (C)— 
(i) in clause (i), by inserting ‘‘digital 
commodity broker, digital commodity deal-
er,’’ before ‘‘futures commission mer-
chant’’; and 
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(ii) in clause (ii), by striking ‘‘con-
tracts of’’ and inserting ‘‘a digital com-
modity trade or a contract of’’; 
(B) in subparagraph (D)— 
(i) in clause (i), by inserting ‘‘digital 
commodity trade or’’ before ‘‘contract of 
sale’’; and 
(ii) in clause (ii), by inserting ‘‘digital 
commodity broker, digital commodity deal-
er,’’ before ‘‘futures commission mer-
chant’’; and 
(C) in subparagraph (E)(i), by striking 
‘‘Investors’’ and inserting ‘‘Investor’’; 
(3) in paragraph (3)— 
(A) in subparagraph (B)(i), by striking 
‘‘Investors’’ and inserting ‘‘Investor’’; 
(B) in subparagraph (E)— 
(i) in clause (i), by striking ‘‘contract 
of sale of a commodity for future delivery 
or’’ and inserting ‘‘contract of sale of a 
commodity for future delivery, digital com-
modity trade, or’’; and 
(ii) in clause (ii), by inserting ‘‘digital 
commodity broker, digital commodity deal-
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er,’’ before ‘‘futures commission mer-
chant’’; and 
(C) in subparagraph (J)— 
(i) by inserting ‘‘a digital commodity 
trading facility,’’ before ‘‘a registered enti-
ty’’; and 
(ii) by striking ‘‘registered entity, as-
sociation’’ and inserting ‘‘digital com-
modity trading facility, registered entity, 
registered futures association’’; 
(4) in paragraph (4)— 
(A) by striking ‘‘futures commission mer-
chant’’ 
and 
inserting 
‘‘digital 
commodity 
broker, digital commodity dealer, futures com-
mission merchant,’’; 
(B) by inserting ‘‘digital commodity sub-
ject to the rules of a digital commodity trading 
facility or’’ before ‘‘commodity’’; and 
(C) by inserting ‘‘digital commodity trad-
ing facility or’’ before ‘‘registered entity’’ each 
place it appears; 
(5) in paragraph (6), by inserting ‘‘digital com-
modity trading facility, digital commodity custo-
dian,’’ before ‘‘registered entity’’ each place it ap-
pears; and 
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(6) in paragraph (9)— 
(A) by inserting ‘‘digital commodity trad-
ing facility or’’ before ‘‘registered entity’’ each 
place it appears; 
(B) by inserting ‘‘digital commodity or’’ 
before ‘‘futures contract’’ each place it appears; 
and 
(C) by inserting ‘‘digital commodity or’’ 
before ‘‘commodity’’ each place it appears. 
SEC. 6. APPLICABILITY. 
The amendments made by this Act shall not apply 
to any person regulated under the Commodity Exchange 
Act (7 U.S.C. 1 et seq.), as amended by this Act, until 
the date of effectiveness of the final rule of the Commodity 
Futures Trading Commission requiring registration of 
digital commodity platforms under section 5i of that Act. 
SEC. 7. REPORT ON HISTORICALLY UNDERSERVED CUS-
TOMERS PARTICIPATING IN DIGITAL COM-
MODITY MARKETS. 
Not later than 180 days after the date of enactment 
of this Act, the Commodity Futures Trading Commission 
(referred to in this section as the ‘‘Commission’’) shall— 
(1) examine the racial, ethnic, and gender de-
mographics of customers participating in digital 
commodity markets; and 
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(2) submit to the Committee on Agriculture, 
Nutrition, and Forestry of the Senate and the Com-
mittee on Agriculture of the House of Representa-
tives a report— 
(A) describing how those demographics will 
inform the rules and regulations of the Com-
mission relating to customer protection; 
(B) proposing ways in which the Commis-
sion can provide outreach to historically under-
served customers participating in digital com-
modity markets; and 
(C) containing recommendations relating 
to any other activities the Commission deter-
mines to be necessary to provide appropriate 
protection, outreach, or other similar activities 
relating to historically underserved customers 
participating in digital commodity markets. 
Æ 
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