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•HR 3633 EH1S 
operate with one another to achieve a common pur-
pose. 
(4) The digital commodity 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, 
allocate resources, and facilitate decision making. 
(5) Blockchain systems and the digital commod-
ities they empower provide control, enhance trans-
parency, reduce transaction costs, and increase effi-
ciency if proper protections are put in place for in-
vestors, consumers, our financial system, 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 commodity companies are set-
ting up their operations outside of the United 
States, where countries are establishing frameworks 
to embrace the potential of blockchain technology 
and digital commodities and provide safeguards for 
consumers. 
(8) Digital commodities, despite the purported 
anonymity, provide law enforcement with an excep-
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•HR 3633 EH1S 
tional tracing tool to identify illicit activity and bring 
criminals to justice. 
(9) The Financial Services Committee of the 
House of Representatives has held multiple hearings 
highlighting various risks that digital commodities 
can pose to the financial markets, consumers, and 
investors that must be addressed as we seek to har-
ness the benefits of these innovations. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) the United States should seek to prioritize 
understanding the potential opportunities of the next 
generation of the internet; 
(2) the United States should seek to foster ad-
vances in technology that have robust evidence indi-
cating they can improve our financial system and 
create more fair and equitable access to financial 
services for everyday Americans while protecting our 
financial system, investors, and consumers; 
(3) the United States must support the respon-
sible development of digital commodities and the un-
derlying 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;
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•HR 3633 EH1S 
(4) Congress should consult with public and 
private sector stakeholders to understand how to 
enact a functional framework tailored to the specific 
risks and unique benefits of different digital com-
modity-related activities, distributed ledger tech-
nology, distributed networks, and mature blockchain 
systems; 
(5) Congress should enact a functional frame-
work tailored to the specific risks of different digital 
commodity-related activities and unique benefits of 
distributed ledger technology, distributed networks, 
and mature blockchain systems; and 
(6) consumers and market participants will ben-
efit from a framework for digital commodities con-
sistent with longstanding investor protections in se-
curities and commodities markets, yet tailored to the 
unique benefits and risks of the digital commodity 
ecosystem. 
SEC. 502. STRATEGIC HUB FOR INNOVATION AND FINAN-
CIAL TECHNOLOGY. 
Section 4 of the Securities Exchange Act of 1934 (15 
U.S.C. 78d) is amended by adding at the end the fol-
lowing: 
‘‘(k) STRATEGIC HUB FOR INNOVATION AND FINAN-
CIAL TECHNOLOGY.—
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•HR 3633 EH1S 
‘‘(1) ESTABLISHMENT.—Not later than 180 
days after the date of the enactment of this sub-
section, the Securities and Exchange Commission 
shall establish a committee to be known as the Stra-
tegic Hub for Innovation and Financial Technology 
(referred to in this subsection as the ‘FinHub’) to 
support engagement on emerging technologies in the 
financial sector. 
‘‘(2) MEMBERS.—The composition of FinHub 
shall be determined by the Commission, drawing 
from relevant divisions as appropriate, including the 
Division of Trading and Markets, Division of Cor-
porate Finance, and Division of Investment Manage-
ment. 
‘‘(3) RESPONSIBILITIES.—FinHub shall— 
‘‘(A) serve as a resource for the Commis-
sion on emerging financial technology advance-
ments; 
‘‘(B) engage with market participants 
working on emerging financial technologies; and 
‘‘(C) facilitate communication between the 
Commission and businesses working in emerg-
ing financial technology fields with information 
on the Commission, its rules, and regulations. 
‘‘(4) REPORT TO THE COMMISSION.—
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•HR 3633 EH1S 
‘‘(A) IN GENERAL.—Not later than Octo-
ber 31 of each year after 2025, FinHub shall 
provide an annual summary of its engagement 
activities to the Commission, which shall be in-
cluded in the Commission’s annual report to 
Congress. 
‘‘(B) 
CONFIDENTIALITY.—Each 
report 
submitted under this paragraph shall not con-
tain confidential information.’’. 
SEC. 503. CODIFICATION OF LABCFTC. 
(a) IN GENERAL.—Section 18 of the Commodity Ex-
change Act (7 U.S.C. 22) is amended by adding at the 
end the following: 
‘‘(c) LABCFTC.— 
‘‘(1) ESTABLISHMENT.—There is established in 
the Commission LabCFTC. 
‘‘(2) PURPOSE.—The purposes of LabCFTC 
are to— 
‘‘(A) promote responsible financial tech-
nology innovation and fair competition for the 
benefit of the American public; 
‘‘(B) serve as an information platform to 
inform the Commission about new financial 
technology innovation; and
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•HR 3633 EH1S 
‘‘(C) provide outreach to financial tech-
nology innovators to discuss their innovations 
and the regulatory framework established by 
this Act and the regulations promulgated there-
under. 
‘‘(3) DIRECTOR.—LabCFTC shall have a Direc-
tor, who shall be appointed by the Commission and 
serve at the pleasure of the Commission. Notwith-
standing section 2(a)(6)(A), the Director shall re-
port directly to the Commission and perform such 
functions and duties as the Commission may pre-
scribe. 
‘‘(4) DUTIES.—LabCFTC shall— 
‘‘(A) advise the Commission with respect 
to rulemakings or other agency or staff action 
regarding financial technology; 
‘‘(B) provide internal education and train-
ing to the Commission regarding financial tech-
nology; 
‘‘(C) advise the Commission regarding fi-
nancial technology that would bolster the Com-
mission’s oversight functions; 
‘‘(D) engage with academia, students, and 
professionals on financial technology issues,
227 
•HR 3633 EH1S 
ideas, and technology relevant to activities 
under this Act; 
‘‘(E) provide persons working in emerging 
technology fields with information on the Com-
mission, its rules and regulations, and the role 
of a registered futures association; and 
‘‘(F) encourage persons working in emerg-
ing technology fields to engage with the Com-
mission and obtain feedback from the Commis-
sion on potential regulatory issues. 
‘‘(5) REPORT TO CONGRESS.— 
‘‘(A) IN GENERAL.—Not later than Octo-
ber 31 of each year after 2025, LabCFTC shall 
submit to the Committee on Agriculture of the 
House of Representatives and the Committee 
on Agriculture, Nutrition, and Forestry of the 
Senate a report on its activities. 
‘‘(B) CONTENTS.—Each report required 
under paragraph (1) shall include— 
‘‘(i) the total number of persons that 
met with LabCFTC; 
‘‘(ii) a summary of general issues dis-
cussed during meetings with the person; 
‘‘(iii) information on steps LabCFTC 
has taken to improve Commission services,
228 
•HR 3633 EH1S 
including responsiveness to the concerns of 
persons; 
‘‘(iv) recommendations made to the 
Commission with respect to the regula-
tions, guidance, and orders of the Commis-
sion and such legislative actions as may be 
appropriate; and 
‘‘(v) any other information determined 
appropriate by the Director of LabCFTC. 
‘‘(C) CONFIDENTIALITY.—A report under 
paragraph (A) shall abide by the confidentiality 
requirements in section 8. 
‘‘(6) RECORDS AND ENGAGEMENT.—The Com-
mission shall— 
‘‘(A) maintain systems of records to track 
engagements 
with 
the 
public 
through 
LabCFTC; 
‘‘(B) store communications and materials 
received in connection with any such engage-
ment in accordance with Commission policies 
and procedures on data retention and confiden-
tiality; and 
‘‘(C) take reasonable steps to protect any 
confidential or proprietary information received 
through LabCFTC engagement.’’.
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•HR 3633 EH1S 
(b) 
CONFORMING
AMENDMENTS.—Section 
2(a)(6)(A) of such Act (7 U.S.C. 2(a)(6)(A)) is amend-
ed— 
(1) by striking ‘‘paragraph and in’’ and insert-
ing ‘‘paragraph,’’; and 
(2) by inserting ‘‘and section 18(c)(3),’’ before 
‘‘the executive’’. 
(c) EFFECTIVE DATE.—The Commodity Futures 
Trading Commission shall implement the amendments 
made by this section (including complying with section 
18(c)(7) of the Commodity Exchange Act) within 180 
days after the date of the enactment of this Act. 
SEC. 504. STUDY ON DECENTRALIZED FINANCE. 
(a) IN GENERAL.—The Commodity Futures Trading 
Commission, the Securities and Exchange Commission, 
and the Secretary of the Treasury shall jointly carry out 
a study on decentralized finance that analyzes— 
(1) the nature, size, role, and use of decentral-
ized finance blockchain applications; 
(2) the operation of blockchain applications that 
comprise decentralized finance; 
(3) the interoperability of blockchain applica-
tions and other blockchain systems;
230 
•HR 3633 EH1S 
(4) the interoperability of blockchain applica-
tions and software-based systems, including websites 
and wallets; 
(5) 
the 
decentralized 
governance 
systems 
through which blockchain applications may be devel-
oped, published, constituted, administered, main-
tained, or otherwise distributed, including— 
(A) whether the systems enhance or de-
tract from— 
(i) the decentralization of the decen-
tralized finance; and 
(ii) the inherent benefits and risks of 
the decentralized governance system; and 
(B) any procedures, requirements, or best 
practices that would mitigate the risks identi-
fied in subparagraph (A)(ii); 
(6) the benefits of decentralized finance, includ-
ing— 
(A) operational resilience and availability 
of blockchain systems; 
(B) interoperability of blockchain systems; 
(C) market competition and innovation; 
(D) transaction efficiency; 
(E) transparency and traceability of trans-
actions; and
231 
•HR 3633 EH1S 
(F) disintermediation; 
(7) the risks of decentralized finance, includ-
ing— 
(A) pseudonymity of users and trans-
actions; 
(B) disintermediation; and 
(C) cybersecurity vulnerabilities; 
(8) the extent to which decentralized finance 
has integrated with the traditional financial markets 
and any potential risks or improvements to the sta-
bility of the markets; 
(9) how the levels of illicit activity in decentral-
ized finance compare with the levels of illicit activity 
in traditional financial markets; 
(10) methods for addressing illicit activity in 
decentralized finance and traditional markets that 
are tailored to the unique attributes of each; 
(11) how decentralized finance may increase the 
accessibility of cross-border transactions; and 
(12) the feasibility of embedding self-executing 
compliance and risk controls into decentralized fi-
nance. 
(b) CONSULTATION.—In carrying out the study re-
quired under subsection (a), the Commodity Futures 
Trading Commission and the Securities and Exchange
232 
•HR 3633 EH1S 
Commission shall consult with the Secretary of the Treas-
ury on the factors described under paragraphs (7) through 
(10) of subsection (a). 
(c) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Commodity Futures Trading 
Commission and the Securities and Exchange Commission 
shall jointly submit to the relevant congressional commit-
tees a report that includes the results of the study re-
quired by subsection (a). 
(d) GAO STUDY.—The Comptroller General of the 
United States shall— 
(1) carry out a study on decentralized finance 
that analyzes the information described under para-
graphs (1) through (12) of subsection (a); and 
(2) not later than 1 year after the date of en-
actment of this Act, submit to the relevant congres-
sional committees a report that includes the results 
of the study required by paragraph (1). 
(e) DEFINITIONS.—In this section: 
(1) DECENTRALIZED FINANCE.— 
(A) IN GENERAL.—The term ‘‘decentral-
ized finance’’ means blockchain applications (in-
cluding decentralized finance trading protocols 
and related decentralized finance messaging 
systems) that allow users to engage in financial
233 
•HR 3633 EH1S 
transactions in a self-directed manner so that a 
third-party intermediary does not effectuate the 
transactions or take custody of digital commod-
ities of a user during any part of the trans-
actions. 
(B) RELATIONSHIP TO EXCLUDED ACTIVI-
TIES.—The term ‘‘decentralized finance’’ shall 
not be interpreted to limit or exclude any activ-
ity from the activities described in section 
15I(a) of the Securities Exchange Act of 1934 
or section 4v(a) of the Commodity Exchange 
Act. 
(2) 
RELEVANT
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘relevant congressional commit-
tees’’ means— 
(A) the Committees on Financial Services 
and Agriculture of the House of Representa-
tives; and 
(B) the Committees on Banking, Housing, 
and Urban Affairs and Agriculture, Nutrition, 
and Forestry of the Senate. 
SEC. 505. STUDY ON NON-FUNGIBLE TOKENS. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall carry out a study of non-fungible to-
kens that analyzes—
234 
•HR 3633 EH1S 
(1) the nature, size, role, purpose, and use of 
non-fungible tokens; 
(2) the similarities and differences between non- 
fungible tokens and other digital commodities, in-
cluding digital commodities and permitted payment 
stablecoins, and how the markets for those digital 
commodities intersect with each other; 
(3) how non-fungible tokens are minted by 
issuers and subsequently administered to purchasers; 
(4) how non-fungible tokens are stored after 
being purchased by a consumer; 
(5) the interoperability of non-fungible tokens 
between different blockchain systems; 
(6) the scalability of different non-fungible to-
kens marketplaces; 
(7) the benefits of non-fungible tokens, includ-
ing verifiable digital ownership; 
(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 tokens have 
integrated with traditional marketplaces, including 
those for music, real estate, gaming, events, and 
travel;
235 
•HR 3633 EH1S 
(10) whether and how non-fungible tokens can 
be used to facilitate commerce or other activities 
through the representation of documents, identifica-
tion, contracts, licenses, and other commercial, gov-
ernment, or personal records; 
(11) any potential risks to traditional markets 
from such integration; and 
(12) the levels and types of illicit activity in 
non-fungible tokens markets. 
(b) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, the Comptroller General, 
shall make publicly available a report that includes the re-
sults of the study required by subsection (a). 
SEC. 506. STUDY ON EXPANDING FINANCIAL LITERACY 
AMONGST DIGITAL COMMODITY HOLDERS. 
(a) IN GENERAL.—The Commodity Futures Trading 
Commission with the Securities and Exchange Commis-
sion shall jointly conduct a study to identify— 
(1) the existing level of financial literacy among 
retail digital commodity holders, including subgroups 
of investors identified 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 dig-
236 
•HR 3633 EH1S 
ital commodities provided by the Commodity Fu-
tures Trading Commission and the Securities and 
Exchange 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 Edu-
cation Commission as well as nonprofit organizations 
and State and local jurisdictions, to better dissemi-
nate financial literacy materials; 
(4) the efficacy of current financial literacy ef-
forts with a focus on rural communities and commu-
nities with majority minority populations; 
(5) the most useful and understandable relevant 
information, including clear disclosures, that retail 
digital commodity holders need to make informed fi-
nancial decisions before engaging with or purchasing 
a digital commodity or service that is typically sold 
to retail investors of digital commodities; 
(6) the most effective public-private partner-
ships in providing financial literacy regarding digital 
commodities to consumers; 
(7) the most relevant metrics to measure suc-
cessful improvement of the financial literacy of an
237 
•HR 3633 EH1S 
individual after engaging with financial literacy ef-
forts; and 
(8) in consultation with the Financial Literacy 
and Education Commission, a strategy (including to 
the extent practicable, measurable goals and objec-
tives) to increase financial literacy of investors re-
garding digital commodities. 
(b) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, the Commodity 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 Fi-
nancial Services and on Agriculture of the House of Rep-
resentatives and the Committees on Banking, Housing, 
and Urban Affairs and on Agriculture, Nutrition, and 
Forestry of the Senate. 
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 develop-
ment of tokenized securities and derivatives products, and 
to the extent such guidance or rules would foster the devel-
opment of fair and orderly financial markets, be necessary
238 
•HR 3633 EH1S 
or appropriate in the public interest, and be consistent 
with the protection of investors and customers. 
(b) REPORT.— 
(1) TIME LIMIT.—Not later than 1 year after 
the date of enactment of this Act, the Commodity 
Futures Trading Commission and the Securities and 
Exchange Commission shall jointly submit to the rel-
evant congressional committees a report that in-
cludes the results of the study required by sub-
section (a). 
(2) RELEVANT
CONGRESSIONAL
COMMITTEES 
DEFINED.—In this section, the term ‘‘relevant con-
gressional committees’’ means— 
(A) the Committees on Financial Services 
and on Agriculture of the House of Representa-
tives; and 
(B) the Committees on Banking, Housing, 
and Urban Affairs and on Agriculture, Nutri-
tion, and Forestry of the Senate. 
SEC. 508. STUDY ON BLOCKCHAIN IN PAYMENTS. 
(a) STUDY REQUIRED.—The Secretary of the Treas-
ury shall conduct a study on the potential use of 
blockchain technology by the domestic private sector to ad-
dress— 
(1) fraud in payments;
239 
•HR 3633 EH1S 
(2) transaction costs and transaction times; 
(3) automated payments; and 
(4) efficiency in commercial transactions. 
(b) REPORT TO CONGRESS.—Not later than one year 
after the date of enactment of this Act, the Secretary shall 
submit a report to the Committee on Financial Services 
of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate that 
summarizes the findings of the study required under sub-
section (a). 
(c) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to mandate the use of blockchain 
technology by any public or private entity. 
SEC. 509. STUDY ON ILLICIT USE OF DIGITAL ASSETS. 
(a) IN GENERAL.—One year after the date of the en-
actment of this Act, the Secretary of the Treasury, in con-
sultation with the Securities and Exchange Commission 
and the Commodity Futures Trading Commission, shall 
conduct a comprehensive review of how Foreign Terrorist 
Organizations and Transnational Criminal Syndicates uti-
lize digital assets in connection with illicit activities. 
(b) REPORT.—Not later than 180 days after com-
pleting the review under subsection (a), the Secretary of 
the Treasury shall issue a report to the Committees on 
Agriculture and on Financial Services of the House of
240 
•HR 3633 EH1S 
Representatives and the Committees on Agriculture, Nu-
trition, and Forestry and on Banking, Housing, and 
Urban Affairs of the Senate on the findings of the Sec-
retary, including— 
(1) an assessment of how Foreign Terrorist Or-
ganizations and Transnational Criminal Syndicates 
utilize digital assets in connection with illicit activi-
ties; and 
(2) recommendations to assist the Securities 
and Exchange Commission and the Commodity Fu-
tures Trading Commission in strengthening compli-
ance and enforcement of digital assets-related enti-
ties registered with their respective agencies. 
SEC. 510. GAO STUDY ON CERTAIN CENTRALIZED INTER-
MEDIARIES THAT ARE PRIMARILY LOCATED 
IN FOREIGN JURISDICTIONS. 
(a) IN GENERAL.—The Comptroller General of the 
United States, in consultation with the Secretary of the 
Treasury, shall conduct a study to— 
(1) assess the risks posed by centralized inter-
mediaries that are primarily located in foreign juris-
dictions that provide services to U.S. persons with-
out regulatory requirements that are substantially 
similar to the requirements of the Bank Secrecy Act; 
and
241 
•HR 3633 EH1S 
(2) provide any regulatory or legislative rec-
ommendations to address these risks under para-
graph (1). 
(b) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Comptroller General shall 
issue a report to Congress containing all findings and de-
terminations made in carrying out the study required 
under subsection (a). 
SEC. 511. STUDIES ON FOREIGN ADVERSARY PARTICIPA-
TION. 
(a) IN GENERAL.—The Secretary of the Treasury, in 
consultation with the Commodity Futures Trading Com-
mission and the Securities and Exchange Commission, 
shall, not later than 1 year after date of the enactment 
of this section, conduct a study and submit a report to 
the relevant congressional committees that— 
(1) identifies any digital commodity registrants 
which are owned by governments of foreign adver-
saries; 
(2) determines whether any governments of for-
eign adversaries are collecting trading data about 
United States persons in the digital commodity mar-
kets; and 
(3) evaluates whether any proprietary intellec-
tual property of digital commodity registrants is
242 
•HR 3633 EH1S 
being misused or stolen by any governments of for-
eign adversaries. 
(b) GAO STUDY AND REPORT.— 
(1) IN
GENERAL.—The Comptroller General 
shall, not later than 1 year after date of the enact-
ment of this section, conduct a study and submit a 
report to the relevant congressional committees 
that— 
(A) identifies any digital commodity reg-
istrants which are owned by governments of 
foreign adversaries; 
(B) determines whether any governments 
of foreign adversaries are collecting trading 
data about United States persons in the digital 
commodity markets; and 
(C) evaluates whether any proprietary in-
tellectual property of digital commodity reg-
istrants is being misused or stolen by any gov-
ernments of foreign adversaries. 
(c) DEFINITIONS.—In this section: 
(1) DIGITAL
COMMODITY
REGISTRANT.—The 
term ‘‘digital commodity registrant’’ means any per-
son required to register as a digital commodity ex-
change, digital commodity broker, or digital com-
modity dealer under the Commodity Exchange Act.
243 
•HR 3633 EH1S 
(2) FOREIGN
ADVERSARIES.—The term ‘‘for-
eign adversaries’’ means the foreign governments 
and foreign non-government persons determined by 
the Secretary of Commerce to be foreign adversaries 
under section 7.4(a) of title 15, Code of Federal 
Regulations. 
(3) 
RELEVANT
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘relevant congressional commit-
tees’’ means— 
(A) the Committees on Financial Services 
and Agriculture of the House of Representa-
tives; and 
(B) the Committees on Banking, Housing, 
and Urban Affairs and Agriculture, Nutrition, 
and Forestry of the Senate. 
SEC. 512. CONFORMING AMENDMENTS. 
The GENIUS Act is amended— 
(1) in section 2, by amending paragraph (7) to 
read as follows: 
‘‘(7) DIGITAL ASSET SERVICE PROVIDER.—The 
term ‘digital asset service provider’ means any entity 
registered or required to be registered with the Secu-
rities and Exchange Commission or the Commodity 
Futures Trading Commission.’’; 
(2) in section 4(a)—
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•HR 3633 EH1S 
(A) by amending paragraph (3) to read as 
follows: 
‘‘(3) MONTHLY CERTIFICATION; EXAMINATION 
OF REPORTS BY REGISTERED PUBLIC ACCOUNTING 
FIRM.— 
‘‘(A) IN GENERAL.—A permitted payment 
stablecoin issuer shall, each month, have the in-
formation disclosed in the previous month-end 
report required under paragraph (1)(C) exam-
ined by a registered public accounting firm and 
such examination shall be performed in accord-
ance with standards for attestation engage-
ments issued or adopted by the primary Federal 
payment stablecoin regulator or, in the case of 
a State qualified payment stablecoin issuer, the 
State payment stablecoin regulator. 
‘‘(B) CERTIFICATION.—Each month, the 
Chief Executive Officer and Chief Financial Of-
ficer of a permitted payment stablecoin issuer 
shall submit to, as applicable, the primary Fed-
eral payment stablecoin regulator or, in the 
case of a State qualified payment stablecoin 
issuer, the State payment stablecoin regulator, 
a certification that, based on such officers’
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•HR 3633 EH1S 
knowledge, the previous monthly report re-
quired under paragraph (1)(C)— 
‘‘(i) does not contain any untrue 
statement of material fact or omit to state 
a material fact necessary in order to make 
the statements made, in light of the cir-
cumstances under which such statements 
were made, not misleading; and 
‘‘(ii) fairly presented in all material 
respects the information required under 
paragraph (1)(C) for the period presented 
in such report. 
‘‘(C) CRIMINAL
PENALTY.—Any person 
who submits a certification required under sub-
paragraph (B) knowing that such certification 
is false shall be subject to the same criminal 
penalties as those set forth under section 
1350(c) of title 18, United States Code. 
‘‘(D) INTERNAL
CONTROLS
OVER
PER-
MITTED
PAYMENT
STABLECOIN
ISSUER’S
RE-
QUIREMENTS.— 
‘‘(i) IN GENERAL.—Management of a 
permitted payment stablecoin issuer shall 
establish and maintain an adequate inter-
nal control structure and procedures for
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•HR 3633 EH1S 
the requirements under this paragraph and 
paragraphs (1) and (2) in accordance with 
a framework determined acceptable by the 
primary Federal payment stablecoin regu-
lator or, in the case of a State qualified 
payment stablecoin issuer, the State pay-
ment stablecoin regulator. 
‘‘(ii) ATTESTATION REPORT.—A per-
mitted payment stablecoin issuer shall ob-
tain an annual attestation report by an 
independent registered public accounting 
firm attesting to management’s assertions 
concerning the effectiveness of the internal 
control structure and procedures for com-
pliance with the requirements described in 
this paragraph and paragraphs (1) and 
(2). Such attestation shall be made in ac-
cordance with standards for attestation en-
gagements issued or adopted by the pri-
mary Federal payment stablecoin regulator 
or, in the case of a State qualified payment 
stablecoin 
issuer, 
the 
State 
payment 
stablecoin regulator.’’; and 
(B) by amending paragraph (12) to read 
as follows:
247 
•HR 3633 EH1S 
‘‘(12) NON-FINANCIAL COMPANIES.— 
‘‘(A) PROHIBITION
ON
NON-FINANCIAL 
COMPANY OWNERSHIP.—It shall be unlawful for 
a company that derives a majority of its reve-
nues from activities that are not financial ac-
tivities to retain or acquire control of a 
nonbank entity that is— 
‘‘(i) a Federal qualified payment 
stablecoin issuer; or 
‘‘(ii) 
a 
State 
qualified 
payment 
stablecoin issuer. 
‘‘(B) FINANCIAL ACTIVITIES DEFINED.— 
‘‘(i) IN GENERAL.—In this paragraph, 
the term ‘financial activities’ means— 
‘‘(I) a financial activity, within 
the meaning of section 4(k) of the 
Bank Holding Company Act of 1956 
(12 U.S.C. 1843(k)); 
‘‘(II) issuing, redeeming, pro-
viding custodial or safekeeping serv-
ices for, buying, selling, making a 
market in, or managing a reserve for 
payment stablecoins; 
‘‘(III) providing electronic wallet 
services for payment stablecoins; or
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•HR 3633 EH1S 
‘‘(IV) an activity determined by 
the Board to be a financial activity 
pursuant to clause (ii). 
‘‘(ii) ESTABLISHING ADDITIONAL FI-
NANCIAL ACTIVITIES.—Not later than 180 
days after the date of enactment of the 
CLARITY Act of 2025, the Board, in con-
sultation with the Secretary of the Treas-
ury and the Comptroller, shall issue rules, 
consistent with the purposes of this Act, to 
establish— 
‘‘(I) a list of additional activities 
that are financial activities for pur-
poses of clause (i), including applica-
ble digital asset activities that are fi-
nancial activities; and 
‘‘(II) a streamlined procedure for 
a nonbank entity to submit an activity 
to the Board for purposes of the 
Board determining whether such ac-
tivity should be added to the list of 
additional activities that are financial 
activities for purposes of clause (i).’’; 
and 
(3) by adding at the end the following:
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‘‘SEC. 21. COMMODITY-BACKED PAYMENT STABLECOINS. 
‘‘(a) RULE OF CONSTRUCTION.—Nothing in this Act 
shall be construed to prohibit or limit a commodity-backed 
payment stablecoin issuer from issuing a commodity- 
backed payment stablecoin in accordance with regulations 
established by a State commodity-backed payment 
stablecoin regulator. 
‘‘(b) PRESERVATION
OF FEDERAL AUTHORITY.— 
Nothing in this section shall be construed to alter or limit 
the jurisdiction of the Commodity Futures Trading Com-
mission over any matter within the Commission’s author-
ity under applicable law. 
‘‘(c) DEFINITIONS.—For purposes of this section: 
‘‘(1) 
COMMODITY-BACKED
PAYMENT 
STABLECOIN.—The term ‘commodity-backed pay-
ment stablecoin’ means a digital asset— 
‘‘(A) that is, or is designed to be, used as 
a means of payment or settlement; 
‘‘(B) that is denominated in a highly liq-
uid, publicly traded physical commodity, such 
as gold; 
‘‘(C) the issuer of which is obligated to— 
‘‘(i) convert, redeem, or repurchase 
for a fixed amount of the denominated 
highly liquid, publicly traded physical com-
modity; and
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‘‘(ii) custody or cause to be custodied, 
for the benefit of the holders of the pay-
ment stablecoin, an amount of the physical 
commodity equal to or greater than the 
total amount of outstanding payment 
stablecoins, for the purpose of converting, 
redeeming, or repurchasing the digital 
asset; and 
‘‘(D) that is not— 
‘‘(i) a security issued by— 
‘‘(I) an investment company reg-
istered under section 8(a) of the In-
vestment Company Act of 1940 (15 
U.S.C. 80a–8(a)); or 
‘‘(II) a person that would be an 
investment company under the Invest-
ment Company Act of 1940 but for 
paragraphs (1) and (7) of section 3(c) 
of that Act (15 U.S.C. 80a-3(c)); 
‘‘(ii) a deposit (as defined under sec-
tion 3 of the Federal Deposit Insurance 
Act (12 U.S.C. 1813)), regardless of the 
technology used to record such deposit; 
‘‘(iii) an account (as defined in section 
101 of the Federal Credit Union Act (12
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•HR 3633 EH1S 
U.S.C. 1752)), regardless of the technology 
used to record such account; or 
‘‘(iv) an interest or participation in a 
commodity pool (as defined in section 
1a(10) of the Commodity Exchange Act (7 
U.S.C. 1a)). 
‘‘(2) 
COMMODITY-BACKED
PAYMENT 
STABLECOIN ISSUER.—The term ‘commodity-backed 
payment stablecoin issuer’ means— 
‘‘(A) an entity that issues a commodity- 
backed payment stablecoin; and 
‘‘(B) an entity that is approved to issue 
such commodity-backed payment stablecoins by 
a State commodity-backed payment stablecoin 
regulator. 
‘‘(3) PHYSICAL COMMODITY.—The term ‘phys-
ical commodity’ means any exempt commodity (as 
defined in section 1a(21) of the Commodity Ex-
change Act (7 U.S.C. 1a)) which can be physically 
delivered. 
‘‘(4) STATE
COMMODITY-BACKED
PAYMENT 
STABLECOIN
REGULATOR.—The term ‘State com-
modity-backed payment stablecoin regulator’ means 
a State agency that has primary regulatory and su-
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•HR 3633 EH1S 
pervisory authority over entities that issue com-
modity-backed payment stablecoins in such State. 
‘‘SEC. 22. PROTECTION OF SELF-CUSTODY. 
‘‘(a) IN GENERAL.—A United States individual shall 
retain the right to— 
‘‘(1) maintain a hardware wallet or software 
wallet for the purpose of facilitating the individual’s 
own lawful custody of digital assets; and 
‘‘(2) engage in direct, peer-to-peer transactions 
in digital assets with another individual or entity for 
the individual’s own lawful purposes using a hard-
ware wallet or software wallet, if— 
‘‘(A) such other individual or entity is not 
a financial institution (as defined in section 
5312 of title 31, United States Code); and 
‘‘(B) the transactions do not involve any 
property or interests in property that are 
blocked pursuant to, or are otherwise prohibited 
by, United States sanctions. 
‘‘(b) APPLICATION.—This section— 
‘‘(1) applies solely to personal use by individ-
uals; and 
‘‘(2) does not apply to individuals acting in a 
custodial or fiduciary capacity for others.
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•HR 3633 EH1S 
‘‘(c) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to limit the authority of the Sec-
retary of the Treasury, the Securities and Exchange Com-
mission, the Commodity Futures Trading Commission, or 
the primary Federal payment stablecoin regulators to 
carry out any enforcement action or special measure au-
thorized under applicable law, including— 
‘‘(1) the Bank Secrecy Act, section 9714 of the 
Combating Russian Money Laundering Act (31 
U.S.C. 5318A note), and section 7213A of the 
Fentanyl Sanctions Act (21 U.S.C. 2313a); or 
‘‘(2) any other law relating to illicit finance, 
money laundering, terrorism financing, or United 
States sanctions.’’. 
TITLE VI—ANTI-CBDC 
SURVEILLANCE STATE ACT 
SEC. 601. SHORT TITLE. 
This title may be cited as the ‘‘Anti-CBDC Surveil-
lance State Act’’.
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•HR 3633 EH1S 
SEC. 602. PROHIBITION ON FEDERAL RESERVE BANKS RE-
LATING TO CERTAIN PRODUCTS OR SERV-
ICES FOR INDIVIDUALS AND PROHIBITION 
ON DIRECTLY ISSUING A CENTRAL BANK DIG-
ITAL CURRENCY. 
Section 16 of the Federal Reserve Act (12 U.S.C. 411 
et seq.) is amended by adding at the end the following 
new paragraph: 
‘‘(18)(A) A Federal reserve bank may not— 
‘‘(i) offer financial products or services directly to an 
individual; 
‘‘(ii) maintain an account on behalf of an individual; 
or 
‘‘(iii) issue a central bank digital currency, or any 
digital asset that is substantially similar under any other 
name or label. 
‘‘(B) In this paragraph, the term ‘central bank digital 
currency’ has the meaning given that term under section 
10(11)(D).’’. 
SEC. 603. PROHIBITION ON FEDERAL RESERVE BANKS IN-
DIRECTLY ISSUING A CENTRAL BANK DIG-
ITAL CURRENCY. 
Section 16 of the Federal Reserve Act (12 U.S.C. 411 
et seq.), as amended by section 2, is further amended by 
adding at the end the following paragraph:
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•HR 3633 EH1S 
‘‘(19)(A) A Federal reserve bank may not offer a cen-
tral bank digital currency, or any digital asset that is sub-
stantially similar under any other name or label, indirectly 
to an individual through a financial institution or other 
intermediary. 
‘‘(B) In this paragraph, the term ‘central bank digital 
currency’ has the meaning given that term under section 
10(11)(D).’’. 
SEC. 604. PROHIBITION WITH RESPECT TO CENTRAL BANK 
DIGITAL CURRENCY. 
Section 10 of the Federal Reserve Act (12 U.S.C. 241 
et seq.) is amended by inserting before paragraph (12) the 
following: 
‘‘(11) PROHIBITION
WITH
RESPECT
TO
CEN-
TRAL BANK DIGITAL CURRENCY.— 
‘‘(A) IN
GENERAL.—The Board of Gov-
ernors of the Federal Reserve System may not 
test, study, develop, create, or implement a cen-
tral bank digital currency, or any digital asset 
that is substantially similar under any other 
name or label. 
‘‘(B) MONETARY POLICY.—The Board of 
Governors of the Federal Reserve System and 
the Federal Open Market Committee may not 
use a central bank digital currency to imple-
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•HR 3633 EH1S 
ment monetary policy, or any digital asset that 
is substantially similar under any other name or 
label. 
‘‘(C) EXCEPTION.—Subparagraph (A) and 
sections 16(18)(A)(iii) and 16(19)(A) may not 
be construed to prohibit any dollar-denominated 
currency that is open, permissionless, and pri-
vate, and fully preserves the privacy protections 
of United States coins and physical currency. 
‘‘(D) CENTRAL BANK DIGITAL CURRENCY 
DEFINED.—In this paragraph, the term ‘central 
bank digital currency’ means a form of digital 
money or monetary value that is— 
‘‘(i) denominated in the national unit 
of account; 
‘‘(ii) a direct liability of the Federal 
Reserve System; and 
‘‘(iii) widely available to the general 
public.’’. 
SEC. 605. SENSE OF CONGRESS. 
It is the sense of Congress that the Board of Gov-
ernors of the Federal Reserve System currently does not 
have the authority to issue a central bank digital currency, 
or any digital asset that is substantially similar under any 
other name or label, and will not have such authority un-
257 
•HR 3633 EH1S 
less Congress grants it under Congress’s Article 1 Section 
8 powers. 
Passed the House of Representatives July 17, 2025. 
Attest: 
Clerk.
119TH CONGRESS 
1ST SESSION 
H. R. 3633 
AN ACT 
To provide for a system of regulation of the offer 
and sale of digital commodities by the Securities 
and Exchange Commission and the Commodity 
Futures Trading Commission, to amend the Fed-
eral Reserve Act to prohibit the Federal reserve 
banks from offering certain products or services 
directly to an individual, to prohibit the use of 
central bank digital currency for monetary policy, 
and for other purposes.