I 
117TH CONGRESS 
2D SESSION 
H. R. 8950 
To amend the Commodity Exchange Act to provide the Commodity Futures 
Trading Commission jurisdiction to oversee the spot digital commodity 
market, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 22, 2022 
Mr. SEAN PATRICK MALONEY of New York (for himself and Ms. PLASKETT) 
introduced the following bill; which was referred to the Committee on Ag-
riculture 
A BILL 
To amend the Commodity Exchange Act to provide the Com-
modity Futures Trading Commission jurisdiction to over-
see the spot digital commodity market, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Digital Commodities 
Consumer Protection Act of 2022’’. 
SEC. 2. DEFINITIONS. 
(a) IN GENERAL.—Section 1a of the Commodity Ex-
change Act (7 U.S.C. 1a) is amended— 
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(1) by redesignating paragraphs (3) through 
(15) and paragraphs (16) through (51) as para-
graphs (5) through (17) and paragraphs (25) 
through (60), respectively; 
(2) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) ASSOCIATED PERSON OF A DIGITAL COM-
MODITY BROKER.— 
‘‘(A) IN GENERAL.—The term ‘associated 
person of a digital commodity broker’ means a 
person who is associated with a digital com-
modity broker as a partner, officer, employee, 
or agent (or any person occupying a similar sta-
tus or performing similar functions) in any ca-
pacity that involves— 
‘‘(i) the solicitation or acceptance of a 
digital commodity trade; or 
‘‘(ii) the supervision of any person en-
gaged in the solicitation or acceptance of a 
digital commodity trade. 
‘‘(B) EXCLUSION.—The term ‘associated 
person of a digital commodity broker’ does not 
include any person associated with a digital 
commodity broker the functions of which are 
solely clerical or ministerial. 
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(A) by redesignating clauses (iii) and (iv) 
as clauses (iv) and (v), respectively; and 
(B) by inserting after clause (ii) the fol-
lowing: 
‘‘(iii) digital commodity;’’; 
(5) in paragraph (13)(A)(i) (as so redesig-
nated)— 
(A) by redesignating subclauses (III) and 
(IV) as subclauses (IV) and (V), respectively; 
and 
(B) by inserting after subclause (II) the 
following: 
‘‘(III) digital commodity;’’; 
(6) in paragraph (14)(A)(i) (as so redesig-
nated)— 
(A) in subclause (II), by adding a semi-
colon at the end; 
(B) by redesignating subclauses (III) and 
(IV) as subclauses (IV) and (V), respectively; 
and 
(C) by inserting after subclause (II) the 
following: 
‘‘(III) a digital commodity;’’; 
(7) by inserting after paragraph (17) (as so re-
designated) the following: 
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‘‘(18) DIGITAL COMMODITY.— 
‘‘(A) IN GENERAL.—The term ‘digital com-
modity’ means a fungible digital form of per-
sonal property that can be possessed and trans-
ferred person-to-person without necessary reli-
ance on an intermediary. 
‘‘(B) INCLUSIONS.—The term ‘digital com-
modity’ includes property commonly known as 
cryptocurrency or virtual currency, such as 
Bitcoin and Ether. 
‘‘(C) 
EXCLUSIONS.—The 
term 
‘digital 
commodity’ does not include— 
‘‘(i) an interest in a physical com-
modity; 
‘‘(ii) a security; 
‘‘(iii) a digital form of currency 
backed by the full faith and credit of the 
United States; 
‘‘(iv) except as provided in subpara-
graph (D), an instrument regulated by the 
Commission pursuant to any provision of 
this Act other than section 2(c)(2)(F); or 
‘‘(v) any other instrument that the 
Commission determines not to be a digital 
commodity. 
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‘‘(D) 
EXCEPTION.—The 
exclusion 
de-
scribed in subparagraph (C)(iv) shall not apply 
to a commodity transaction that is subject only 
to Commission antimanipulation, antifraud, or 
false reporting authority. 
‘‘(19) DIGITAL COMMODITY BROKER.— 
‘‘(A) IN GENERAL.—The term ‘digital com-
modity broker’ means a person that is engaged, 
as an identifiable business, in— 
‘‘(i) soliciting or accepting orders on 
behalf of another person for a digital com-
modity trade; 
‘‘(ii) accepting digital commodities 
from another person for the purpose of en-
tering into digital commodity trades; 
‘‘(iii) arranging digital commodity 
trades on behalf of another person; or 
‘‘(iv) a similar activity, as determined 
by the Commission. 
‘‘(B) EXCLUSION.—The term ‘digital com-
modity broker’ does not include a person solely 
because that person validates digital commodity 
transactions. 
‘‘(20) DIGITAL COMMODITY CUSTODIAN.— 
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‘‘(A) IN GENERAL.—The term ‘digital com-
modity custodian’ means a person that, as an 
identifiable business, maintains possession, cus-
tody, or control over digital commodities on be-
half of another person. 
‘‘(B) EXCLUSIONS.—The term ‘digital 
commodity custodian’ does not include— 
‘‘(i) an insured depository institution 
(as defined in section 3 of the Federal De-
posit Insurance Act (12 U.S.C. 1813)); or 
‘‘(ii) an insured credit union (as de-
fined in section 101 of the Federal Credit 
Union Act (12 U.S.C. 1752)). 
‘‘(21) DIGITAL COMMODITY DEALER.— 
‘‘(A) IN GENERAL.—The term ‘digital com-
modity dealer’ means a person that— 
‘‘(i) has an identifiable business of 
dealing in a digital commodity as principal 
for its own account; 
‘‘(ii) makes a market in a digital com-
modity; 
‘‘(iii) holds itself out as a dealer in a 
digital commodity; 
‘‘(iv) has as an identifiable business of 
buying or selling digital commodities for 
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conversion into other digital commodities, 
currency, or other consideration; 
‘‘(v) has as an identifiable business of 
accepting digital commodities from another 
person (referred to in this clause as a ‘de-
positor’) with an obligation to return the 
digital commodities, consideration linked to 
the digital commodities, or both to the de-
positor; or 
‘‘(vi) engages in a similar activity, as 
determined by the Commission. 
‘‘(B) EXCLUSION.—The term ‘digital com-
modity dealer’ does not include a person solely 
because that person validates digital commodity 
transactions. 
‘‘(22) DIGITAL COMMODITY PLATFORM.— 
‘‘(A) IN GENERAL.—The term ‘digital com-
modity platform’ means a person that is 1 or 
more of the following: 
‘‘(i) A digital commodity broker. 
‘‘(ii) A digital commodity custodian. 
‘‘(iii) A digital commodity dealer. 
‘‘(iv) A digital commodity trading fa-
cility. 
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‘‘(B) CATEGORY.—The term ‘category’, 
with respect to a digital commodity platform, 
means 1 or more categories described in clauses 
(i) through (iv) of subparagraph (A) of that 
digital commodity platform. 
‘‘(23) DIGITAL COMMODITY TRADE.— 
‘‘(A) IN GENERAL.—The term ‘digital com-
modity trade’ means a purchase or sale of a 
digital commodity in exchange for— 
‘‘(i) another digital commodity; or 
‘‘(ii) any other consideration. 
‘‘(B) INCLUSIONS.—The term ‘digital com-
modity trade’ includes— 
‘‘(i) an offer to enter into a purchase 
or sale described in subparagraph (A); and 
‘‘(ii) a loan of a digital commodity, an 
offer to enter into a loan of a digital com-
modity, or a similar activity, as determined 
by the Commission. 
‘‘(C) EXCLUSION.—Except as provided in 
subparagraph (D), the term ‘digital commodity 
trade’ excludes a transaction regulated by the 
Commission pursuant to any provision of this 
Act except section 2(c)(2)(F). 
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‘‘(D) 
EXCEPTION.—The 
exclusion 
de-
scribed in subparagraph (C) shall not apply to 
a commodity transaction that is subject only to 
Commission antimanipulation, antifraud, or 
false reporting authority. 
‘‘(24) DIGITAL
COMMODITY
TRADING
FACIL-
ITY.— 
‘‘(A) IN GENERAL.—The term ‘digital com-
modity trading facility’ means a trading facility 
that facilitates the execution or trading of dig-
ital commodity trades between persons. 
‘‘(B) EXCLUSION.—The term ‘digital com-
modity trading facility’ does not include a per-
son solely because that person validates digital 
commodity transactions.’’; 
(8) in paragraph (43) (as so redesignated)— 
(A) in the paragraph heading, by striking 
‘‘; MEMBER OF A DERIVATIVES TRANSACTION 
EXECUTION FACILITY’’; 
(B) in the matter preceding subparagraph 
(A), by striking ‘‘entity or derivatives trans-
action execution facility,’’ and inserting ‘‘enti-
ty,’’; 
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(C) in subparagraph (A), by striking ‘‘enti-
ty’’ and all that follows through the semicolon 
and inserting ‘‘entity;’’; and 
(D) in subparagraph (B), by striking ‘‘en-
tity’’ and all that follows through the period at 
the end and inserting ‘‘entity.’’; and 
(9) in paragraph (49) (as so redesignated)— 
(A) by redesignating subparagraphs (E) 
and (F) as subparagraphs (F) and (G), respec-
tively; and 
(B) by inserting after subparagraph (D) 
the following: 
‘‘(E) a digital commodity trading facility 
registered under section 5i;’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 1a of the Commodity Exchange Act 
(7 U.S.C. 1a) is amended— 
(A) in paragraph (26)(A) (as redesignated 
by subsection (a)(1)), in the matter preceding 
clause (i), by striking ‘‘(18)(A)’’ and inserting 
‘‘(27)(A)’’; and 
(B) in paragraph (27)(A)(vii)(III)(aa) (as 
redesignated by subsection (a)(1)), by striking 
‘‘(17)(A)’’ and inserting ‘‘(26)(A)’’. 
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(2) Section 4(c)(1)(A)(i)(I) of the Commodity 
Exchange Act (7 U.S.C. 6(c)(1)(A)(i)(I)) is amended 
by striking ‘‘paragraphs (2), (3), (4), (5), and (7), 
paragraph (18)(A)(vii)(III), paragraphs (23), (24), 
(31), (32), (38), (39), (41), (42), (46), (47), (48), 
and (49) of section 1a’’ and inserting ‘‘paragraphs 
(2), (5), (6), (7), (9), (27)(A)(vii)(III), (32), (33), 
(40), (41), (47), (48), (50), (51), (55), (56), (57), 
and (58) of section 1a’’. 
(3) Section 4q(a)(1) of the Commodity Ex-
change Act (7 U.S.C. 6q(a)(1)) is amended by strik-
ing ‘‘1a(9)’’ and inserting ‘‘1a(11)’’. 
(4) Section 4s of the Commodity Exchange Act 
(7 U.S.C. 6s) is amended— 
(A) in subsection (f)(1)(D), by striking 
‘‘1a(47)(A)(v)’’ and inserting ‘‘1a(56)(A)(v)’’; 
and 
(B) in subsection (h)(5)(A)(i), in the mat-
ter 
preceding 
subclause 
(I), 
by 
striking 
‘‘1a(18)’’ and inserting ‘‘1a(27)(A)’’. 
(5) Section 4t(b)(1)(C) of the Commodity Ex-
change Act (7 U.S.C. 6t(b)(1)(C)) is amended by 
striking 
‘‘1a(47)(A)(v)),’’ 
and 
inserting 
‘‘1a(56)(A)(v)),’’. 
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(6) Section 5 of the Commodity Exchange Act 
(7 U.S.C. 7) is amended— 
(A) in subsection (d)(23), by striking 
‘‘1a(47)(A)(v)’’ and inserting ‘‘1a(56)(A)(v)’’; 
and 
(B) in subsection (e)(1), by striking 
‘‘1a(9)’’ and inserting ‘‘1a(11)’’. 
(7) Section 5b(k)(3)(A) of the Commodity Ex-
change Act (7 U.S.C. 7a–1(k)(3)(A)) is amended by 
striking 
‘‘1a(47)(A)(v))’’ 
and 
inserting 
‘‘1a(56)(A)(v))’’. 
(8) Section 5c(c)(4)(B) of the Commodity Ex-
change Act (7 U.S.C. 7a–2(c)(4)(B)) is amended by 
striking ‘‘1a(10)’’ and inserting ‘‘1a(11)’’. 
(9) Section 5h(f)(10)(A)(iii) of the Commodity 
Exchange Act (7 U.S.C. 7b–3(f)(10)(A)(iii)) is 
amended by striking ‘‘1a(47)(A)(v)’’ and inserting 
‘‘1a(56)(A)(v)’’. 
(10) Section 21(f)(4)(C) of the Commodity Ex-
change Act (7 U.S.C. 24a(f)(4)(C)) is amended by 
striking ‘‘1a(48)’’ and inserting ‘‘1a(57)’’. 
(11) Section 403 of the Legal Certainty for 
Bank Products Act of 2000 (7 U.S.C. 27a) is 
amended— 
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(A) in subsection (a)(2), by striking 
‘‘1a(47)(A)(v)’’ and inserting ‘‘1a(56)(A)(v)’’; 
and 
(B) in subsection (b)(1), by striking 
‘‘1a(47)’’ and inserting ‘‘1a’’. 
(12) Section 5(e) of the Securities Act of 1933 
(15 U.S.C. 77e(e)) is amended by striking ‘‘section 
1a(18) of the Commodity Exchange Act (7 U.S.C. 
1a(18))’’ and inserting ‘‘section 1a of the Com-
modity Exchange Act (7 U.S.C. 1a)’’. 
(13) Section 3C(g)(3)(A)(v) of the Securities 
Exchange 
Act 
of 
1934 
(15 
U.S.C. 
78c– 
3(g)(3)(A)(v)) is amended by striking ‘‘section 
1a(10) of the Commodity Exchange Act;’’ and in-
serting ‘‘section 1a of the Commodity Exchange Act 
(7 U.S.C. 1a);’’. 
(14) Section 6(g)(5)(B)(i) of the Securities Ex-
change Act of 1934 (15 U.S.C. 78f(g)(5)(B)(i)) is 
amended— 
(A) in subclause (I), by striking ‘‘section 
1a(18)(B)(ii) of the Commodity Exchange Act’’ 
and inserting ‘‘subparagraph (B)(ii) of section 
1a(27) of the Commodity Exchange Act (7 
U.S.C. 1a(27))’’; and 
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(B) in subclause (II), by striking ‘‘such 
section 1a(18))’’ and inserting ‘‘that section)’’. 
(15) Section 712(a)(8) of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (15 
U.S.C. 8302(a)(8)) is amended by striking ‘‘section 
1a(47)(D) of the Commodity Exchange Act (7 
U.S.C. 
1a(47)(D))’’ 
and 
inserting 
‘‘section 
1a(56)(D) of the Commodity Exchange Act (7 
U.S.C. 1a(56)(D))’’. 
(16) Section 752(a) of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (15 
U.S.C. 8325(a)) is amended by striking ‘‘section 
1a(39) of the Commodity Exchange Act),’’ and in-
serting ‘‘section 1a of the Commodity Exchange Act 
(7 U.S.C. 1a)),’’. 
SEC. 3. COMMISSION JURISDICTION OVER DIGITAL COM-
MODITY TRADES. 
Section 2 of the Commodity Exchange Act (7 U.S.C. 
2) is amended— 
(1) in subsection (a)(1)(A), in the first sen-
tence, by striking ‘‘section 19 of this Act’’ and in-
serting ‘‘subsection (c)(2)(F) or section 19’’; and 
(2) in subsection (c)(2), by adding at the end 
the following: 
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‘‘(F) COMMISSION
JURISDICTION
OVER 
DIGITAL COMMODITY TRADES.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), this Act applies to, and 
the Commission shall have exclusive juris-
diction over, any account, agreement, con-
tract, or transaction involving a digital 
commodity trade. 
‘‘(ii) EXCEPTION.—Nothing in this 
Act applies to, and the Commission shall 
not have jurisdiction over, any digital com-
modity transaction by a merchant or con-
sumer that uses a digital commodity solely 
for the purchase or sale of a good or serv-
ice. 
‘‘(iii) 
PROHIBITION
ON
CERTAIN 
TRADING
PRACTICES.—Sections 4b, 4c, 
and 6(c) shall apply to any digital com-
modity trade as if the digital commodity 
trade were a contract of sale of a com-
modity for future delivery.’’. 
SEC. 4. DIGITAL COMMODITY PLATFORMS. 
The Commodity Exchange Act is amended by insert-
ing after section 5h (7 U.S.C. 7b–3) the following: 
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‘‘SEC. 5i. DIGITAL COMMODITY PLATFORMS. 
‘‘(a) REGISTRATION.— 
‘‘(1) REQUIREMENT.—It shall be unlawful for 
any person to act as any category of digital com-
modity platform unless the person is registered 
under this section as that category of digital com-
modity platform. 
‘‘(2) APPLICATIONS.—A person desiring to reg-
ister as any category of digital commodity platform 
shall submit to the Commission an application in 
such form and containing such information as the 
Commission may require for the purpose of deter-
mining whether the applicant is in compliance with 
subsection (b) and the other requirements of this 
Act. 
‘‘(3) MULTIPLE
REGISTRATIONS.—As appro-
priate to further the purposes of this Act and avoid 
duplicative or unnecessary requirements, and taking 
into consideration potential conflicts of interest or 
other risks, the Commission may prescribe rules or 
regulations permitting, or may otherwise authorize— 
‘‘(A) registration by a person in more than 
1 category of digital commodity platform; 
‘‘(B) a registered entity, a swap dealer, or 
a futures commission merchant registered 
under this Act to register under this section in 
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1 or more categories of digital commodity plat-
form; and 
‘‘(C) exemptions or additional require-
ments applicable to persons with multiple reg-
istrations under this Act. 
‘‘(b) CORE PRINCIPLES FOR DIGITAL COMMODITY 
PLATFORMS.— 
‘‘(1) COMPLIANCE WITH CORE PRINCIPLES.— 
‘‘(A) IN GENERAL.—To be registered, and 
maintain registration, as a digital commodity 
platform, the digital commodity platform shall 
comply with— 
‘‘(i) the core principles described in 
this subsection; and 
‘‘(ii) any requirement that the Com-
mission may impose by rule or regulation. 
‘‘(B) REASONABLE
DISCRETION
OF
DIG-
ITAL
COMMODITY
PLATFORM.—Unless other-
wise determined by the Commission by rule or 
regulation, a digital commodity platform de-
scribed in subparagraph (A) shall have reason-
able discretion in establishing the manner in 
which the digital commodity platform complies 
with the core principles described in this sub-
section. 
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‘‘(2) CORE
PRINCIPLES
APPLICABLE
TO
DIG-
ITAL COMMODITY TRADING FACILITIES.— 
‘‘(A) COMPLIANCE WITH RULES.—A digital 
commodity trading facility shall— 
‘‘(i) establish and enforce compliance 
with any rule of the digital commodity 
trading facility, including— 
‘‘(I) the terms and conditions of 
the transactions in digital commod-
ities traded or processed on or 
through the digital commodity trading 
facility; and 
‘‘(II) any limitation on access to 
the digital commodity trading facility; 
‘‘(ii) establish and enforce trading, 
trade processing, and participation rules 
that will deter abuses and have the capac-
ity to detect, investigate, and enforce those 
rules, including means— 
‘‘(I) to provide market partici-
pants with impartial access to the 
market; and 
‘‘(II) to capture information that 
may be used in establishing whether 
rule violations have occurred; and 
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‘‘(iii) establish rules governing the op-
eration of the digital commodity trading 
facility. 
‘‘(B) DIGITAL COMMODITY TRANSACTIONS 
NOT
READILY
SUSCEPTIBLE
TO
MANIPULA-
TION.—A digital commodity trading facility 
shall permit trading only in transactions in dig-
ital commodities that are not readily susceptible 
to manipulation. 
‘‘(C) 
MONITORING
OF
TRADING
AND 
TRADE PROCESSING.— 
‘‘(i) MARKETS AND MECHANISMS.— 
‘‘(I) IN
GENERAL.—A digital 
commodity trading facility shall pro-
vide a competitive, open, and efficient 
market and mechanism for executing 
transactions that protects the price 
discovery process of trading on the 
digital commodity trading facility. 
‘‘(II) CENTRALIZED MARKET.—A 
digital 
commodity 
trading 
facility 
shall provide a centralized market for 
executing transactions. 
‘‘(ii) PROTECTION OF MARKETS AND 
MARKET
PARTICIPANTS.—A digital com-
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modity trading facility shall establish and 
enforce rules— 
‘‘(I) to protect markets and mar-
ket participants from abusive prac-
tices committed by any party, includ-
ing abusive practices committed by a 
party acting as an agent for a partici-
pant; and 
‘‘(II) to promote fair and equi-
table trading on the digital commodity 
trading facility. 
‘‘(iii) 
PROCEDURES
AND
MONI-
TORING.—A digital commodity trading fa-
cility shall— 
‘‘(I) establish and enforce rules 
or terms and conditions defining, or 
specifications detailing— 
‘‘(aa) trading procedures to 
be used in entering and executing 
orders traded on or through the 
facilities of the digital commodity 
trading facility; and 
‘‘(bb) procedures for trade 
processing of digital commodities 
on or through the facilities of the 
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digital commodity trading facil-
ity; and 
‘‘(II) monitor trading in digital 
commodities to prevent manipulation, 
price distortion, and disruptions of the 
delivery or settlement process through 
surveillance, compliance, and discipli-
nary practices and procedures, includ-
ing 
investigations, 
sanctions, 
and 
methods 
for 
conducting 
real-time 
monitoring of trading and comprehen-
sive and accurate trade reconstruc-
tions. 
‘‘(D) ABILITY TO OBTAIN INFORMATION.— 
A digital commodity trading facility shall— 
‘‘(i) establish and enforce rules that 
will allow the digital commodity trading fa-
cility to obtain any necessary information 
to perform any of the functions described 
in this section; 
‘‘(ii) provide the information to the 
Commission on request; and 
‘‘(iii) have the capacity to carry out 
such 
international 
information-sharing 
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agreements as the Commission may re-
quire. 
‘‘(E) FINANCIAL
INTEGRITY
OF
TRANS-
ACTIONS.—A digital commodity trading facility 
shall establish and enforce rules and procedures 
for ensuring the financial integrity of digital 
commodity trades entered on or through the fa-
cilities of the digital commodity trading facility. 
‘‘(F) EMERGENCY AUTHORITY.—A digital 
commodity trading facility shall adopt rules to 
provide for the exercise of emergency authority, 
in consultation or cooperation with the Commis-
sion, as is necessary and appropriate, including 
the authority to liquidate or transfer open posi-
tions in any digital commodity or to suspend or 
curtail trading in a digital commodity. 
‘‘(G) TIMELY
PUBLICATION
OF
TRADING 
INFORMATION.— 
‘‘(i) IN
GENERAL.—A digital com-
modity trading facility shall make public 
timely information on price, trading vol-
ume, and other trading data on digital 
commodities to the extent prescribed by 
the Commission. 
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‘‘(ii) CAPACITY
OF
DIGITAL
COM-
MODITY
TRADING
FACILITY.—A digital 
commodity trading facility shall be re-
quired to have the capacity to electronically 
capture and transmit trade information 
with respect to transactions executed on 
the digital commodity trading facility. 
‘‘(H) AVAILABILITY OF GENERAL INFOR-
MATION.—A digital commodity trading facility 
shall make available to market authorities, mar-
ket participants, and the public accurate infor-
mation concerning— 
‘‘(i) the terms and conditions of the 
contracts for transactions in digital com-
modities; 
‘‘(ii) the rules and mechanisms for 
executing digital commodity trades on or 
through the facilities of the digital com-
modity trading facility; and 
‘‘(iii) the rules and specifications de-
scribing the operation of the electronic 
matching platform or trade execution facil-
ity of the digital commodity trading facil-
ity. 
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‘‘(I) DISCIPLINARY PROCEDURES.—A dig-
ital commodity trading facility shall establish 
and enforce— 
‘‘(i) disciplinary procedures that au-
thorize the digital commodity trading facil-
ity to discipline, suspend, or expel market 
participants that violate the rules of the 
digital commodity trading facility; or 
‘‘(ii) similar methods for performing 
the functions described in clause (i), in-
cluding delegation to third parties. 
‘‘(J) DISPUTE
RESOLUTION.—A digital 
commodity trading facility shall establish and 
enforce rules regarding, and provide facilities 
for alternative dispute resolution, as appro-
priate, for, market participants and market 
intermediaries. 
‘‘(3) CORE
PRINCIPLES
APPLICABLE
TO
DIG-
ITAL
COMMODITY
DEALERS
AND
DIGITAL
COM-
MODITY BROKERS.— 
‘‘(A) EXECUTION.—A digital commodity 
dealer or digital commodity broker— 
‘‘(i) shall establish prices fairly and 
objectively; 
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‘‘(ii) shall disclose the basis for those 
prices; and 
‘‘(iii) shall not disrupt market func-
tioning or hinder the price discovery proc-
ess. 
‘‘(B) DAILY TRADING RECORDS.— 
‘‘(i) IN
GENERAL.—A digital com-
modity dealer or digital commodity broker 
shall keep full, complete, and systematic 
records (including all pertinent data and 
memoranda) of all transactions relating to 
its business of dealing or brokerage in dig-
ital commodity transactions. 
‘‘(ii) INCLUDED COMMUNICATIONS.— 
A digital commodity dealer or digital com-
modity broker shall keep all oral and writ-
ten communications provided or received 
concerning quotes, solicitations, bids, of-
fers, instructions, trading, and prices that 
lead to the execution of a transaction in a 
digital commodity. 
‘‘(C) BUSINESS CONDUCT STANDARDS.—A 
digital commodity dealer or digital commodity 
broker shall conform with such business con-
duct standards as may be prescribed by the 
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Commission by rule or regulation that relate 
to— 
‘‘(i) fraud, manipulation, and other 
abusive practices involving digital com-
modity trades (including digital commodity 
trades that are offered but not entered 
into); 
‘‘(ii) diligent supervision of the busi-
ness of the digital commodity dealer or 
digital commodity broker; and 
‘‘(iii) such other matters as the Com-
mission determines to be appropriate. 
‘‘(D) DUTIES.—A digital commodity dealer 
or digital commodity broker shall comply with 
the following requirements: 
‘‘(i) 
RISK
MANAGEMENT
PROCE-
DURES.—The digital commodity dealer or 
digital commodity broker shall establish ro-
bust and professional risk management 
systems adequate for managing the day-to- 
day business of the digital commodity deal-
er or digital commodity broker. 
‘‘(ii) DISCLOSURE
OF
GENERAL
IN-
FORMATION.—The digital commodity deal-
er or digital commodity broker shall dis-
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close to the Commission, as applicable, in-
formation concerning— 
‘‘(I) terms and conditions of its 
digital commodity trades; 
‘‘(II) trading operations, mecha-
nisms, and practices; 
‘‘(III) financial integrity protec-
tions relating to transactions in digital 
commodity trades; and 
‘‘(IV) other information relevant 
to its digital commodity trades. 
‘‘(E) ABILITY TO OBTAIN INFORMATION.— 
A digital commodity dealer or digital com-
modity broker shall— 
‘‘(i) establish and enforce internal sys-
tems and procedures to obtain any nec-
essary information to perform any of the 
functions described in this section; and 
‘‘(ii) provide the information described 
in clause (i) to the Commission on request. 
‘‘(4) CORE
PRINCIPLES
APPLICABLE
TO
ALL 
DIGITAL COMMODITY PLATFORMS.— 
‘‘(A) RECORDKEEPING AND REPORTING.— 
A digital commodity platform shall— 
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‘‘(i) adopt any rules or take any ac-
tions that result in any unreasonable re-
straint of trade; or 
‘‘(ii) impose any material anticompeti-
tive burden on trading or custody. 
‘‘(C) 
CONFLICTS
OF
INTEREST.—The 
Commission shall require conflict of interest 
systems and procedures that— 
‘‘(i) establish structural and institu-
tional safeguards— 
‘‘(I) to minimize conflicts of in-
terest that might potentially bias the 
judgment or supervision of a digital 
commodity platform and contravene 
the core principles of fair and equi-
table trading and the business con-
duct standards described in this Act, 
including conflicts arising out of 
transactions or arrangements with af-
filiates (including affiliates acting as 
issuers, 
market-makers, 
or 
custodians); and 
‘‘(II) which may include, as the 
Commission determines to be appro-
priate, information partitions and the 
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legal separation of different categories 
of digital commodity platforms; 
‘‘(ii) establish a process for resolving 
conflicts of interest described in clause (i); 
‘‘(iii) require disclosure by a digital 
commodity platform of any material incen-
tives or conflicts of interest that the digital 
commodity platform is unable to resolve; 
and 
‘‘(iv) address such other issues as the 
Commission determines to be appropriate. 
‘‘(D) FINANCIAL RESOURCES.— 
‘‘(i) IN
GENERAL.—A digital com-
modity platform shall have adequate finan-
cial, operational, and managerial resources 
to discharge each responsibility of the dig-
ital commodity platform. 
‘‘(ii) 
FINANCIAL
RESOURCES
FOR 
MARGIN TRADING.—The Commission shall 
require such additional financial resources 
as are necessary to enable a digital com-
modity platform to fulfill obligations of the 
digital commodity platform arising from 
margined, leveraged, or financed trans-
actions. 
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‘‘(E) SYSTEM
SAFEGUARDS.—A digital 
commodity platform shall— 
‘‘(i) establish and maintain a program 
of risk analysis and oversight to identify 
and minimize sources of operational risk 
(including cybersecurity risk), through the 
development of appropriate controls and 
procedures, and automated systems, that— 
‘‘(I) are reliable and secure; and 
‘‘(II) have adequate scalable ca-
pacity; 
‘‘(ii) establish and maintain emer-
gency procedures, backup facilities, and a 
plan for disaster recovery that allow for— 
‘‘(I) the timely recovery and re-
sumption of operations; and 
‘‘(II) the fulfillment of the re-
sponsibilities and obligations of the 
digital commodity platform; and 
‘‘(iii) periodically conduct tests to 
verify that the backup resources of the dig-
ital commodity platform are sufficient to 
ensure continued— 
‘‘(I) order processing and trade 
matching; 
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‘‘(II) price reporting; 
‘‘(III) market surveillance; and 
‘‘(IV) maintenance of a com-
prehensive and accurate audit trail. 
‘‘(F) DESIGNATION OF CHIEF COMPLIANCE 
OFFICER.— 
‘‘(i) IN
GENERAL.—A digital com-
modity platform shall designate an indi-
vidual to serve as a chief compliance officer 
(referred to in this paragraph as a ‘chief 
compliance officer’). 
‘‘(ii) DUTIES.—A chief compliance of-
ficer shall— 
‘‘(I) report directly to the board 
or to the senior officer of the digital 
commodity platform; 
‘‘(II) review compliance with the 
core principles described in this sub-
section; 
‘‘(III) in consultation with the 
board of the digital commodity plat-
form, a body performing a function 
similar to that of a board, or the sen-
ior officer of the digital commodity 
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platform, resolve any conflicts of in-
terest that may arise; 
‘‘(IV) be responsible for estab-
lishing and administering the policies 
and procedures required to be estab-
lished pursuant to this section; 
‘‘(V) ensure compliance with this 
Act and the rules and regulations 
issued under this Act, including rules 
prescribed by the Commission pursu-
ant to this section; and 
‘‘(VI) establish procedures for 
the remediation of noncompliance 
issues found during compliance office 
reviews, look backs, internal or exter-
nal audit findings, self-reported er-
rors, or through validated complaints. 
‘‘(iii) REQUIREMENTS
FOR
PROCE-
DURES.—In establishing procedures under 
clause (ii)(VI), a chief compliance officer 
shall design the procedures to establish the 
handling, management response, remedi-
ation, retesting, and closing of noncompli-
ance issues. 
‘‘(iv) ANNUAL REPORTS.— 
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‘‘(I) IN
GENERAL.—In accord-
ance with rules prescribed by the 
Commission, a chief compliance offi-
cer shall annually prepare and sign a 
report that contains a description of— 
‘‘(aa) the compliance of the 
digital commodity platform with 
this Act; and 
‘‘(bb) the policies and proce-
dures, including the code of eth-
ics and conflict of interest poli-
cies, of the digital commodity 
platform. 
‘‘(II) REQUIREMENTS.—A chief 
compliance officer shall— 
‘‘(aa) submit each report de-
scribed in subclause (I) with the 
appropriate financial report of 
the digital commodity platform 
that is required to be submitted 
to the Commission pursuant to 
this section; and 
‘‘(bb) include in the report a 
certification that, under penalty 
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trade, or arrange for trading, in digital commodities 
that have met the requirements of subsection (d) 
(including the listing and disclosure requirements). 
‘‘(f) CUSTOMER
PROTECTION.—The Commission 
shall adopt customer protection requirements that— 
‘‘(1) require disclosure by a digital commodity 
platform to a customer (other than another digital 
commodity platform registered under this section) 
of— 
‘‘(A) information about the material risks 
and characteristics of any applicable digital 
commodity contracts; and 
‘‘(B) any material incentives or conflicts of 
interest that the digital commodity platform 
may have in connection with any applicable dig-
ital commodity contracts; 
‘‘(2) establish a duty for a digital commodity 
platform to communicate in a fair and balanced 
manner based on principles of fair dealing and good 
faith; 
‘‘(3) establish standards governing digital com-
modity platform marketing and advertising, includ-
ing testimonials and endorsements; and 
‘‘(4) establish such other standards and re-
quirements as the Commission may determine are— 
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