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for the purpose of executing a spot transaction for 
the purchase or sale of a digital commodity. 
‘‘(6) Developing, publishing, constituting, ad-
ministering, maintaining, or otherwise distributing 
software or systems that create or deploy hardware 
or software, including wallets or other systems, fa-
cilitating an individual user’s own personal ability to 
keep, safeguard, or custody the user’s digital assets 
or related private keys. 
‘‘(b) EXCEPTIONS.—Subsection (a) shall not be inter-
preted to apply to the anti-fraud, anti-manipulation, or 
false reporting enforcement authorities of the Commis-
sion.’’. 
SEC. 410. RESOURCES FOR IMPLEMENTATION AND EN-
FORCEMENT. 
(a) COLLECTION OF FEES.— 
(1) IN
GENERAL.—The Commodity Futures 
Trading Commission (in this section referred to as 
the ‘‘Commission’’) shall charge and collect a fee 
from each person in provisional status registered 
with the Commission pursuant to section 106, on— 
(A) the filing of the initial application for 
registration; and 
(B) an annual basis thereafter for main-
taining provisional status.
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(2) AMOUNT.—The fees authorized under para-
graph (1) may be collected and available for obliga-
tion only in the amounts provided in advance in an 
appropriation Act. 
(3) AUTHORITY
TO
ADJUST
FEES.—Notwith-
standing the preceding provisions of this subsection, 
to promote fair competition or innovation, the Com-
mission, in its sole discretion, may reduce or elimi-
nate any fee otherwise required to be paid by a small 
or medium filer under this subsection. 
(b) FEE SCHEDULE.— 
(1) IN GENERAL.—The Commission shall pub-
lish in the Federal Register a schedule of the fees 
to be charged and collected under this section. 
(2) CONTENT.—The fee schedule for a fiscal 
year shall include a written analysis of the estimate 
of the Commission of the total costs of carrying out 
the functions of the Commission under this Act dur-
ing the fiscal year. 
(3) SUBMISSION
TO
CONGRESS.—Before pub-
lishing the fee schedule for a fiscal year, the Com-
mission shall submit a copy of the fee schedule to 
the Committees on Agriculture and on Appropria-
tions of the House of Representatives and the Com-
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mittees on Agriculture, Nutrition, and Forestry and 
on Appropriations of the Senate. 
(4) TIMING.— 
(A) 1ST FISCAL YEAR.—The Commission 
shall publish the fee schedule for the fiscal year 
in which this Act is enacted, within 30 days 
after the date of the enactment of this Act. 
(B) SUBSEQUENT
FISCAL
YEARS.—The 
Commission shall publish the fee schedule for 
each subsequent fiscal year, not less than 90 
days before the due date prescribed by the 
Commission for payment of the annual fee for 
the fiscal year. 
(c) LATE PAYMENT PENALTY.— 
(1) IN GENERAL.—The Commission may im-
pose a penalty against a person that fails to pay an 
annual fee charged under this section, within 30 
days after the due date prescribed by the Commis-
sion for payment of the fee. 
(2) AMOUNT.—The amount of the penalty shall 
be— 
(A) 5 percent of the amount of the fee due, 
multiplied by
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(B) the whole number of consecutive 30- 
day periods that have elapsed since the due 
date. 
(d) REIMBURSEMENT OF EXCESS FEES.—To the ex-
tent that the total amount of fees collected under this sec-
tion during a fiscal year that begins after the date of the 
enactment of this Act exceeds the amount provided under 
subsection (a)(2) with respect to the fiscal year, the Com-
mission shall reimburse the excess amount to the persons 
who have timely paid their annual fees, on a pro-rata basis 
that excludes penalties, and shall do so within 60 days 
after the end of the fiscal year. 
(e) DEPOSIT OF FEES INTO THE TREASURY.—All 
amounts collected under this section shall be credited to 
the currently applicable appropriation, account, or fund of 
the Commission as discretionary offsetting collections, and 
shall be available for the purposes authorized in subsection 
(f) only to the extent and in the amounts provided in ad-
vance in appropriations Acts. 
(f) AUTHORIZATION OF APPROPRIATIONS.—In addi-
tion to amounts otherwise authorized to be appropriated 
to the Commission, there is authorized to be appropriated 
to the Commission amounts collected under this section 
to cover the costs of carrying out the functions of the 
Commission under this Act.
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(g) EXPEDITED HIRING AUTHORITY.— 
(1) APPOINTMENT
AUTHORITY.—The Chair-
man, pursuant to section 6(a), may appoint individ-
uals to a position described in paragraph (2) of this 
subsection— 
(A) in accordance with the statutes, rules, 
and regulations governing appointments to posi-
tions in the excepted service (as defined in sec-
tion 2103 of title 5, United States Code); and 
(B) without regard to any statute, rule, or 
regulation governing appointments to positions 
in the competitive service (as defined in section 
2102 of such title). 
(2) POSITION DESCRIBED.—A position referred 
to in subparagraph (1) is a position at the Commis-
sion that— 
(A) is in the competitive service (as defined 
in section 2102 of such title); and 
(B) requires specialized knowledge of dig-
ital commodities markets, financial and capital 
market formation or regulation, financial mar-
ket structures or surveillance, data collection or 
analysis, or information technology, cybersecu-
rity, or system safeguards.
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(3) RULE
OF
CONSTRUCTION.—The appoint-
ment of a candidate to a position under this sub-
section shall not be considered to cause the position 
to be converted from the competitive service to the 
excepted service. 
(h) SUNSET.—The authorities provided by this sec-
tion shall expire at the end of the 4th fiscal year that be-
gins after the date of the enactment of this Act. 
SEC. 411. REQUIREMENTS RELATED TO CONTROL PER-
SONS. 
The Commodity Exchange Act (7 U.S.C. 1 et seq.), 
as amended the preceding provisions of this Act, is amend-
ed by inserting after section 4v the following: 
‘‘SEC. 4w. LIMITATION ON TRANSACTIONS BY BLOCKCHAIN 
CONTROL PERSONS. 
‘‘(a) LIMITATION.—It shall be unlawful for a 
blockchain control person with respect to a blockchain sys-
tem certified as a mature blockchain system in accordance 
with section 42 of the Securities Exchange Act of 1934 
to sell a unit of a digital commodity related to the 
blockchain system unless the person files notice with the 
Commission, in a form and manner determined by the 
Commission, that the person has or intends to obtain an 
authority described in subsection (b)(1) with respect to the
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blockchain system, and complies with rules adopted by the 
Commission that require— 
‘‘(1) disclosure of information to the Commis-
sion and the public about the material activities, as 
determined by the Commission, of the blockchain 
control person; and 
‘‘(2)(A) the use of a digital commodity broker 
to effect the sale; or 
‘‘(B) such other sales restrictions applicable to 
the blockchain control person, or any affiliated 
blockchain control person, to prevent manipulation 
and distortion of the value of the digital commodity 
and promote further maturity of the blockchain sys-
tem to which the digital commodity relates. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) BLOCKCHAIN
CONTROL
PERSON.—The 
term ‘blockchain control person’ means, with respect 
to a blockchain system, any person or group of per-
sons under common control, other than a decentral-
ized governance system, who— 
‘‘(A) has the unilateral authority, directly 
or indirectly, through any contract, arrange-
ment, understanding, relationship, or otherwise, 
to control or materially alter the functionality, 
operation, or rules of consensus or agreement of
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the blockchain system or its related digital com-
modity; or 
‘‘(B) has the unilateral authority to direct 
the voting, in the aggregate, of 20 percent or 
more of the outstanding voting power of the 
blockchain system by means of a related digital 
commodity, nodes or validators, a decentralized 
governance 
system, 
or 
otherwise, 
in 
a 
blockchain system which can be altered by a 
voting system. 
‘‘(2) AFFILIATED BLOCKCHAIN CONTROL PER-
SON.—The term ‘affiliated blockchain control per-
son’ means any person directly or indirectly control-
ling, controlled by, or under common control with a 
blockchain control person, as the Commission by 
rule or regulation, may determine will effectuate the 
purposes of this section.’’. 
SEC. 412. OTHER TRADABLE ASSETS. 
The Commodity Exchange Act (7 U.S.C. 1 et seq.), 
as amended by the preceding provisions of this Act, is 
amended— 
(1) by inserting after section 4w the following:
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‘‘SEC. 4x. TRADING REQUIREMENTS FOR OTHER TRADABLE 
ASSETS. 
‘‘(a) LIMITATION.—A contract of sale of a tradable 
asset shall not be offered, solicited, traded, facilitated, exe-
cuted, cleared, reported, or otherwise dealt in, on or sub-
ject to the rules of a registered entity, or by any other 
entity registered with the Commission, except in accord-
ance with subsection (b). 
‘‘(b) REQUIREMENTS.— 
‘‘(1) TREATMENT
OF
TRADABLE
ASSETS.—A 
contract of sale of a tradable asset that is offered, 
solicited, traded, facilitated, executed, cleared, re-
ported, or otherwise dealt in on or subject to the 
rules of a registered entity, or by any other entity 
registered with the Commission, shall be treated as 
a digital commodity for purposes of this Act. 
‘‘(2) ADDITIONAL RULEMAKING AUTHORITY.— 
In addition to the other requirements of this Act, 
the Commission may, by rule or regulation, impose 
additional obligations on any person registered 
under this Act offering, soliciting, trading, facili-
tating, executing, clearing, reporting, or otherwise 
dealing in a contract of sale of a tradable asset, or 
class thereof, pursuant to paragraph (1) as are nec-
essary for the protection of customers, the pro-
motion of innovation, and the maintenance of fair,
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•HR 3633 EH1S 
orderly, and efficient markets, including additional 
obligations related to— 
‘‘(A) disclosure; 
‘‘(B) recordkeeping; 
‘‘(C) capital; 
‘‘(D) reporting; 
‘‘(E) business conduct; 
‘‘(F) documentation; 
‘‘(G) supervision of employees; and 
‘‘(H) segregation. 
‘‘(c) TRADABLE ASSET DEFINED.—In this section, 
the term ‘tradable asset’ means a digital asset other 
than— 
‘‘(1) a digital commodity that is treated as such 
other than by reason of subsection (b)(1) of this sec-
tion; or 
‘‘(2) a digital asset excluded from the definition 
of digital commodity pursuant to subclause (I) 
through (VII) of section 1a(16)(F)(iii).’’; and 
(2) by inserting after section 6d the following: 
‘‘SEC. 6e. PROHIBITION ON TRADING CERTAIN DIGITAL AS-
SETS. 
‘‘(a) IN GENERAL.—A contract of sale of a digital 
commodity or tradable asset (as defined in section 4x) 
shall not be offered, solicited, traded, facilitated, executed,
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•HR 3633 EH1S 
cleared, reported, or otherwise dealt in on or subject to 
the rules of a registered entity, or by any other entity reg-
istered with the Commission, if the primary purpose of 
the digital commodity or tradable asset is to be used to— 
‘‘(1) commit fraud or market manipulation; 
‘‘(2) further a scheme found in a final action by 
a court of competent jurisdiction to be in violation 
of campaign finance or government ethics laws; or 
‘‘(3) engage in any other conduct that would re-
sult in abusive practices or be disruptive to market 
integrity. 
‘‘(b) GUIDANCE ON FRAUDULENT, MANIPULATIVE, 
OR DISRUPTIVE TRADABLE ASSETS.—The Commission 
may, after public notice and comment, issue guidance es-
tablishing criteria for determining if the primary purpose 
of a digital commodity or tradable asset (as so defined) 
is to be used to commit fraud or market manipulation, 
or engage in any other conduct that would result in abu-
sive practices or be disruptive to market integrity.’’. 
SEC. 413. CONFLICT OF INTEREST RULEMAKING. 
Not later than 360 days after the date of the enact-
ment of this Act, the Commodity Futures Trading Com-
mission shall issue rules establishing requirements for the 
identification, mitigation, and resolution of conflicts of in-
terest among and across registered entities (within the
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meaning of the Commodity Exchange Act) and persons 
required to be registered with the Commission, including 
conflicts of interest related to vertically integrated market 
structures and their varying responsibilities. 
SEC. 414. EFFECTIVE DATE. 
Unless otherwise provided in this title, this title and 
the amendments made by this title shall take effect 270 
days after the date of the enactment of this Act. 
SEC. 415. SENSE OF CONGRESS. 
It is the sense of Congress that nothing in this Act 
or any amendment made by this Act should be interpreted 
to authorize any entity to regulate any commodity, other 
than a digital commodity, on any spot market. 
TITLE V—INNOVATION AND 
TECHNOLOGY IMPROVEMENTS 
SEC. 501. FINDINGS; SENSE OF CONGRESS. 
(a) FINDINGS.—Congress finds the following: 
(1) Entrepreneurs and innovators are building 
and deploying this next generation of the internet. 
(2) Digital commodity networks represent a 
new way for people to join together and cooperate 
with one another to undertake certain activities. 
(3) Digital commodities have the potential to be 
the foundational building blocks of these systems, 
aligning the economic incentive for individuals to co-