185 
ed periods, and retroactively or prospectively, or both, a 
registered digital commodity broker or registered digital 
commodity dealer from the requirements of this section, 
if the Commission determines that— 
‘‘(1)(A) the exemption would be consistent with 
the public interest and the purposes of this Act; and 
‘‘(B) the exemption will not have a material ad-
verse effect on the ability of the Commission or the 
digital commodity broker or digital commodity deal-
er to discharge regulatory duties under this Act; or 
‘‘(2) the registered digital commodity broker or 
registered digital commodity dealer is subject to 
comparable, comprehensive supervision and regula-
tion by the appropriate government authorities in 
the home country of the registered digital commodity 
broker or registered digital commodity dealer, re-
spectively. 
‘‘(n) TREATMENT
UNDER
THE
BANK
SECRECY 
ACT.—A registered digital commodity broker and a reg-
istered digital commodity dealer shall be treated as a fi-
nancial institution for purposes of the Bank Secrecy Act.’’. 
SEC. 407. REGISTRATION OF ASSOCIATED PERSONS. 
(a) IN GENERAL.—Section 4k of the Commodity Ex-
change Act (7 U.S.C. 6k) is amended— 
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(b) CONFORMING AMENDMENTS.—The Commodity 
Exchange Act (7 U.S.C. 1a et seq.) is amended by striking 
‘‘section 4k(6)’’ each place it appears and inserting ‘‘sec-
tion 4k(7)’’. 
SEC. 408. REGISTRATION OF COMMODITY POOL OPERA-
TORS AND COMMODITY TRADING ADVISORS. 
Section 4m(3) of the Commodity Exchange Act (7 
U.S.C. 6m(3)) is amended— 
(1) in subparagraph (A)— 
(A) by striking ‘‘any commodity trading 
advisor’’ and inserting ‘‘a commodity pool oper-
ator or commodity trading advisor’’; and 
(B) by striking ‘‘acting as a commodity 
trading advisor’’ and inserting ‘‘acting as a 
commodity pool operator or commodity trading 
advisor’’; and 
(2) in subparagraph (C), by inserting ‘‘digital 
commodities,’’ after ‘‘physical commodities,’’. 
SEC. 409. EXCLUSION FOR ANCILLARY ACTIVITIES. 
The Commodity Exchange Act (7 U.S.C. 1 et seq.), 
as amended by the preceding provisions of this Act, is 
amended by inserting after section 4u the following: 
‘‘SEC. 4v. EXCLUSION FOR ANCILLARY ACTIVITIES. 
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of this Act, a person shall not be subject to this 
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Act and the regulations promulgated under this Act solely 
based on the person undertaking any ancillary activities. 
‘‘(b) EXCEPTIONS.—Subsection (a) shall not be con-
strued to apply to the antimanipulation, antifraud, or false 
reporting enforcement authorities of the Commission. 
‘‘(c) ANCILLARY ACTIVITIES DEFINED.—In this sec-
tion, the term ‘ancillary activities’ means any of the fol-
lowing activities related to the operation of a blockchain 
system: 
‘‘(1) Compiling network transactions, operating 
a pool, relaying, searching, sequencing, validating, or 
acting in a similar capacity with respect to a digital 
commodity transaction. 
‘‘(2) Providing computational work, operating a 
node, or procuring, offering, or utilizing network 
bandwidth, or other similar incidental services with 
respect to a digital commodity transaction. 
‘‘(3) Providing a user interface that enables a 
user to read, and access data about a blockchain 
system, send messages, or otherwise interact with a 
blockchain system. 
‘‘(4) Developing, publishing, constituting, ad-
ministering, maintaining, or otherwise distributing a 
blockchain system. 
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‘‘(5) 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 a user’s digital commod-
ities or related private keys.’’. 
SEC. 410. EFFECTIVE DATE. 
Unless otherwise provided in this title, this title and 
the amendments made by this title shall take effect 360 
days after the date of enactment of this Act, except that, 
to the extent a provision of this title requires a rule-
making, the provision shall take effect on the later of— 
(1) 360 days after the date of enactment of this 
Act; or 
(2) 60 days after the publication in the Federal 
Register of the final rule implementing the provision. 
TITLE V—INNOVATION AND 
TECHNOLOGY IMPROVEMENTS 
SEC. 501. CODIFICATION OF THE SEC STRATEGIC HUB FOR 
INNOVATION AND FINANCIAL TECHNOLOGY. 
Section 4 of the Securities Exchange Act of 1934 (15 
U.S.C. 78d) is amended by adding at the end the fol-
lowing: 
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‘‘(l) STRATEGIC HUB FOR INNOVATION AND FINAN-
CIAL TECHNOLOGY.— 
‘‘(1) OFFICE
ESTABLISHED.—There is estab-
lished within the Commission the Strategic Hub for 
Innovation and Financial Technology (referred to in 
this section as the ‘FinHub’). 
‘‘(2) PURPOSES.—The purposes of FinHub are 
as follows: 
‘‘(A) To assist in shaping the approach of 
the Commission to technological advancements 
in the financial industry. 
‘‘(B) To examine financial technology inno-
vations within capital markets, market partici-
pants, and investors. 
‘‘(C) To coordinate the response of the 
Commission to emerging technologies in finan-
cial, regulatory, and supervisory systems. 
‘‘(3) DIRECTOR
OF
FINHUB.—FinHub shall 
have a Director who shall be appointed by the Com-
mission, from among individuals having experience 
in both emerging technologies and Federal securities 
law and serve at the pleasure of the Commission. 
The Director shall report directly to the Commission 
and perform such functions and duties as the Com-
mission may prescribe. 
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‘‘(4) RESPONSIBILITIES.—FinHub shall— 
‘‘(A) foster responsible technological inno-
vation and fair competition within the Commis-
sion, including around financial technology, reg-
ulatory technology, and supervisory 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 serve the Com-
mission’s oversight functions; 
‘‘(D) analyze technological advancements 
and the impact of regulatory requirements on 
financial technology companies; 
‘‘(E) advise the Commission with respect 
to rulemakings or other agency or staff action 
regarding financial technology; 
‘‘(F) provide businesses working in emerg-
ing financial technology fields with information 
on the Commission, its rules and regulations; 
and 
‘‘(G) encourage firms working in emerging 
technology fields to engage with the Commis-
sion and obtain feedback from the Commission 
on potential regulatory issues. 
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192 
‘‘(5) ACCESS TO DOCUMENTS.—The Commis-
sion shall ensure that FinHub has full access to the 
documents and information of the Commission and 
any self-regulatory organization, as necessary to 
carry out the functions of FinHub. 
‘‘(6) REPORT TO CONGRESS.— 
‘‘(A) IN GENERAL.—Not later than Octo-
ber 31 of each year after 2024, FinHub shall 
submit to the Committee on Banking, Housing, 
and Urban Affairs of the Senate and the Com-
mittee on Financial Services of the House of 
Representatives a report on the activities of 
FinHub during the immediately preceding fiscal 
year. 
‘‘(B) CONTENTS.—Each report required 
under subparagraph (A) shall include— 
‘‘(i) the total number of persons that 
met with FinHub; 
‘‘(ii) the total number of market par-
ticipants FinHub met with, including the 
classification of those participants; 
‘‘(iii) a summary of general issues dis-
cussed during meetings with persons; 
‘‘(iv) information on steps FinHub 
has taken to improve Commission services, 
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193 
including responsiveness to the concerns of 
persons; 
‘‘(v) recommendations— 
‘‘(I) with respect to the regula-
tions of the Commission and the guid-
ance and orders of the Commission; 
and 
‘‘(II) for such legislative actions 
as the FinHub determines appro-
priate; and 
‘‘(vi) any other information, as deter-
mined appropriate by the Director of 
FinHub. 
‘‘(C) CONFIDENTIALITY.—A report under 
subparagraph (A) may not contain confidential 
information. 
‘‘(7) SYSTEMS OF RECORDS.— 
‘‘(A) IN GENERAL.—The Commission shall 
establish a detailed system of records (as de-
fined under section 552a of title 5, United 
States Code) to assist FinHub in commu-
nicating with interested parties. 
‘‘(B) ENTITIES
COVERED
BY
THE
SYS-
TEM.—Entities covered by the system required 
under subparagraph (A) include entities or per-
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sons submitting requests or inquiries and other 
information to Commission through FinHub. 
‘‘(C) 
SECURITY
AND
STORAGE
OF 
RECORDS.—FinHub shall store— 
‘‘(i) electronic records— 
‘‘(I) in the system required under 
subparagraph (A); or 
‘‘(II) on the secure network or 
other electronic medium, such as 
encrypted hard drives or back-up 
media, of the Commission; and 
‘‘(ii) paper records in secure facilities. 
‘‘(8) EFFECTIVE DATE.—This subsection shall 
take effect on the date that is 180 days after the 
date of the enactment of this subsection.’’. 
SEC. 502. 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— 
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195 
‘‘(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 
‘‘(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; 
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‘‘(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, 
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) ACCESS TO DOCUMENTS.—The Commis-
sion shall ensure that LabCFTC has full access to 
the documents and information of the Commission 
and any self-regulatory organization or registered fu-
tures association, as necessary to carry out the func-
tions of LabCFTC. 
‘‘(6) REPORT TO CONGRESS.— 
‘‘(A) IN GENERAL.—Not later than Octo-
ber 31 of each year after 2024, LabCFTC shall 
submit to the Committee on Agriculture of the 
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197 
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, 
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. 
‘‘(7) SYSTEMS OF RECORDS.— 
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198 
‘‘(A) IN GENERAL.—The Commission shall 
establish a detailed system of records (as de-
fined in section 552a of title 5, United States 
Code) to assist LabCFTC in communicating 
with interested parties. 
‘‘(B) PERSONS
COVERED
BY
THE
SYS-
TEM.—The persons covered by the system of 
records shall include persons submitting re-
quests or inquiries and other information to the 
Commission through LabCFTC. 
‘‘(C) 
SECURITY
AND
STORAGE
OF 
RECORDS.—The system of records shall store 
records electronically or on paper in secure fa-
cilities, and shall store electronic records on the 
secure network of the Commission and on other 
electronic media, such as encrypted hard drives 
and back-up media, as needed.’’. 
(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’’. 
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199 
(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. 503. CFTC–SEC JOINT ADVISORY COMMITTEE ON DIG-
ITAL ASSETS. 
(a) ESTABLISHMENT.—The Commodity Futures 
Trading Commission and the Securities and Exchange 
Commission (in this section referred to as the ‘‘Commis-
sions’’) shall jointly establish the Joint Advisory Com-
mittee on Digital Assets (in this section referred to as the 
‘‘Committee’’). 
(b) PURPOSE.— 
(1) IN GENERAL.—The Committee shall— 
(A) provide the Commissions with advice 
on the rules, regulations, and policies of the 
Commissions related to digital assets; 
(B) further the regulatory harmonization 
of digital asset policy between the Commissions; 
(C) examine and disseminate methods for 
describing, measuring, and quantifying digital 
asset— 
(i) decentralization; 
(ii) functionality; 
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200 
(iii) information asymmetries; and 
(iv) transaction and network security; 
(D) examine the potential for digital as-
sets, blockchain systems, and distributed ledger 
technology to improve efficiency in the oper-
ation of financial market infrastructure and 
better protect financial market participants, in-
cluding services and systems which provide— 
(i) greater transparency regarding 
customer funds; 
(ii) reduced transaction cost; and 
(iii) increased access to financial mar-
ket services; and 
(E) discuss the implementation by the 
Commissions of this Act and the amendments 
made by this Act. 
(2) REVIEW BY AGENCIES.—Each Commission 
shall— 
(A) review the findings and recommenda-
tions of the Committee; 
(B) each time the Committee submits a 
finding or recommendation to a Commission, 
promptly issue a public statement— 
(i) assessing the finding or rec-
ommendation of the Committee; 
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201 
(ii) disclosing the action or decision 
not to take action made by the Commis-
sion in response to a finding or rec-
ommendation; and 
(iii) the reasons for the action or deci-
sion not to take action; and 
(C) each time the Committee submits a 
finding or recommendation to a Commission, 
provide the Committee with a formal response 
to the finding or recommendation not later than 
3 months after the date of the submission of 
the finding or recommendation. 
(c) MEMBERSHIP AND LEADERSHIP.— 
(1) NON-FEDERAL MEMBERS.— 
(A) IN GENERAL.—The Commissions shall 
appoint at least 20 nongovernmental stake-
holders with a wide diversity of opinion and 
who represent a broad spectrum of interests 
representing the digital asset ecosystem, equally 
divided between the Commissions, to serve as 
members of the Committee. The appointees 
shall include— 
(i) digital asset issuers; 
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202 
(ii) persons registered with the Com-
missions and engaged in digital asset re-
lated activities; 
(iii) individuals engaged in academic 
research relating to digital assets; and 
(iv) digital asset users. 
(B) MEMBERS NOT COMMISSION EMPLOY-
EES.—Members appointed under subparagraph 
(A) shall not be deemed to be employees or 
agents of a Commission solely by reason of 
membership on the Committee. 
(2) CO-DESIGNATED FEDERAL OFFICERS.— 
(A) NUMBER; APPOINTMENT.—There shall 
be 2 co-designated Federal officers of the Com-
mittee, as follows: 
(i) The Director of LabCFTC of the 
Commodity Futures Trading Commission. 
(ii) The Director of the Strategic Hub 
for Innovation and Financial Technology. 
(B) DUTIES.—The duties required by 
chapter 10 of title 5, United States Code, to be 
carried out by a designated Federal officer with 
respect to the Committee shall be shared by the 
co-designated Federal officers of the Com-
mittee. 
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203 
(3) COMMITTEE LEADERSHIP.— 
(A) COMPOSITION; ELECTION.—The Com-
mittee members shall elect, from among the 
Committee members— 
(i) a chair; 
(ii) a vice chair; 
(iii) a secretary; and 
(iv) an assistant secretary. 
(B) TERM
OF
OFFICE.—Each member 
elected under subparagraph (A) in a 2-year pe-
riod referred to in section 1013(b)(2) of title 5, 
United States Code, shall serve in the capacity 
for which the member was so elected, until the 
end of the 2-year period. 
(d) NO COMPENSATION
FOR COMMITTEE MEM-
BERS.— 
(1) NON-FEDERAL MEMBERS.—All Committee 
members appointed under subsection (d)(1) shall— 
(A) serve without compensation; and 
(B) while away from the home or regular 
place of business of the member in the perform-
ance of services for the Committee, be allowed 
travel expenses, including per diem in lieu of 
subsistence, in the same manner as persons em-
ployed intermittently in the Government service 
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204 
are allowed expenses under section 5703(b) of 
title 5, United States Code. 
(2) NO
COMPENSATION
FOR
CO-DESIGNATED 
FEDERAL OFFICERS.—The co-designated Federal of-
ficers shall serve without compensation in addition 
to that received for their services as officers or em-
ployees of the United States. 
(e) FREQUENCY
OF MEETINGS.—The Committee 
shall meet— 
(1) not less frequently than twice annually; and 
(2) at such other times as either Commission 
may request. 
(f) DURATION.—Section 1013(a)(2) of title 5, United 
States Code, shall not apply to the Committee. 
(g) TIME LIMITS.—The Commissions shall— 
(1) adopt a joint charter for the Committee 
within 90 days after the date of the enactment of 
this section; 
(2) appoint members to the Committee within 
120 days after such date of enactment; and 
(3) hold the initial meeting of the Committee 
within 180 days after such date of enactment. 
(h) FUNDING.—The Commissions may jointly fund 
the Committee. 
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SEC. 504. MODERNIZATION OF THE SECURITIES AND EX-
CHANGE COMMISSION MISSION. 
(a) SECURITIES ACT OF 1933.—Section 2(b) of the 
Securities Act of 1933 (15 U.S.C. 77(b)) is amended— 
(1) in the heading, by inserting ‘‘INNOVATION,’’ 
after ‘‘EFFICIENCY,’’; and 
(2) by inserting ‘‘innovation,’’ after ‘‘effi-
ciency,’’. 
(b) SECURITIES EXCHANGE ACT OF 1934.—Section 
3(f) of the Securities Exchange Act of 1934 (15 U.S.C. 
78(c)) is amended— 
(1) in the heading, by inserting ‘‘INNOVATION,’’ 
after ‘‘EFFICIENCY,’’; and 
(2) by inserting ‘‘innovation,’’ after ‘‘effi-
ciency,’’. 
(c) INVESTMENT ADVISERS ACT OF 1940.—Section 
202(c) of the Investment Advisers Act of 1940 (15 U.S.C. 
80b–2) is amended— 
(1) in the heading, by inserting ‘‘INNOVATION,’’ 
after ‘‘EFFICIENCY,’’; and 
(2) by inserting ‘‘innovation,’’ after ‘‘effi-
ciency,’’. 
(d) INVESTMENT COMPANY ACT OF 1940.—Section 
2(c) of the Investment Company Act of 1940 (15 U.S.C. 
80a–2) is amended— 
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(1) in the heading, by inserting ‘‘INNOVATION,’’ 
after ‘‘EFFICIENCY,’’; and 
(2) by inserting ‘‘innovation,’’ after ‘‘effi-
ciency,’’. 
SEC. 505. STUDY ON DECENTRALIZED FINANCE. 
(a) IN GENERAL.—The Securities and Exchange 
Commission and the Commodity Futures Trading Com-
mission shall jointly carry out a study on decentralized 
finance that analyzes— 
(1) the nature, size, role, and use of decentral-
ized finance blockchain protocols; 
(2) the operation of blockchain protocols that 
comprise decentralized finance; 
(3) the interoperability of blockchain protocols 
and blockchain systems; 
(4) the interoperability of blockchain protocols 
and software-based systems, including websites and 
wallets; 
(5) 
the 
decentralized 
governance 
systems 
through which blockchain protocols may be devel-
oped, published, constituted, administered, main-
tained, or otherwise distributed, including— 
(A) whether the systems enhance or de-
tract from— 
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207 
(i) the decentralization of the decen-
tralized finance; and 
(ii) the inherent risks of the decentral-
ized governance system; and 
(B) any procedures or requirements that 
would mitigate the risks identified in subpara-
graph (A)(ii); 
(6) the benefits of decentralized finance, includ-
ing— 
(A) operational resilience and interoper-
ability of blockchain-based systems; 
(B) market competition and innovation; 
(C) transaction efficiency; 
(D) transparency and traceability of trans-
actions; and 
(E) disintermediation; and 
(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 to stability of the markets; 
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208 
(9) how the levels of illicit activity in decentral-
ized finance compare with the levels of illicit activity 
in traditional financial markets; 
(10) how decentralized finance may increase the 
accessibility of cross-border transactions; and 
(11) the feasibility of embedding self-executing 
compliance and risk controls into decentralized fi-
nance. 
(b) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Securities and Exchange 
Commission and the Commodity Futures Trading Com-
mission shall jointly submit to the relevant congressional 
committees a report that includes the results of the study 
required by subsection (a). 
(c) GAO STUDY.—The Comptroller General of the 
United States shall— 
(1) carry out a study on decentralized finance 
that analyzes the information described under para-
graphs (1) through (10) 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). 
(d) DEFINITIONS.—In this section: 
(1) DECENTRALIZED FINANCE.— 
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209 
(A) IN GENERAL.—The term ‘‘decentral-
ized finance’’ means blockchain protocols that 
allow users to engage in financial transactions 
in a self-directed manner so that a third-party 
intermediary does not effectuate the trans-
actions or take custody of digital assets of a 
user during any part of the transactions. 
(B) RELATIONSHIP TO ANCILLARY ACTIVI-
TIES.—The term ‘‘decentralized finance’’ shall 
not be interpreted to limit or exclude any activ-
ity from the meaning of ‘‘ancillary activities’’, 
as defined in section 15H(c) of the Securities 
Exchange Act of 1934 or section 4v(c) 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. 
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210 
SEC. 506. STUDY ON NON-FUNGIBLE DIGITAL ASSETS. 
(a) The Comptroller General of the United States 
shall carry out a study of non-fungible digital assets that 
analyzes— 
(1) the nature, size, role, purpose, and use of 
non-fungible digital assets; 
(2) the similarities and differences between non- 
fungible digital assets and other digital assets, in-
cluding 
digital 
commodities 
and 
payments 
stablecoins, and how the markets for those digital 
assets intersect with each other; 
(3) how non-fungible digital assets are minted 
by issuers and subsequently administered to pur-
chasers; 
(4) how non-fungible digital assets are stored 
after being purchased by a consumer; 
(5) the interoperability of non-fungible digital 
assets between different blockchain systems; 
(6) the scalability of different non-fungible dig-
ital asset marketplaces; 
(7) the benefits of non-fungible digital assets, 
including verifiable digital ownership; 
(8) the risks of non-fungible tokens, including— 
(A) intellectual property rights; 
(B) cybersecurity risks; and 
(C) market risks; 
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211 
(9) whether and how non-fungible digital assets 
have integrated with traditional marketplaces, in-
cluding those for music, real estate, gaming, events, 
and travel; 
(10) whether non-fungible tokens can be used 
to facilitate commerce or other activities through the 
representation of documents, identification, contract, 
licenses, and other commercial, government, or per-
sonal records; 
(11) any potential risks to such traditional mar-
kets from such integration; and 
(12) the levels and types of illicit activity in 
non-fungible digital asset markets. 
(b) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, the Secretary of Commerce, 
shall make publicly available a report that includes the re-
sults of the study required by subsection (a). 
SEC. 507. STUDY ON FINANCIAL MARKET INFRASTRUCTURE 
IMPROVEMENTS. 
(a) IN GENERAL.—The Securities and Exchange 
Commission and the Commodity Futures Trading Com-
mission shall jointly conduct a study to assess whether ad-
ditional guidance or rules are necessary to facilitate the 
development of tokenized securities and derivatives prod-
ucts, and to the extent such rules would foster the develop-
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212 
ment of fair and orderly financial markets, be necessary 
or appropriate in the public interest, and be consistent 
with the protection of investors. 
(b) REPORT.— 
(1) TIME LIMIT.—Not later than 1 year after 
the date of enactment of this Act, the Securities and 
Exchange Commission and the Commodity Futures 
Trading 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. 
Æ 
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