‘‘(iv) that is capable of being trans-
ferred between persons through a decen-
tralized method without an intermediate 
custodian; and 
‘‘(B) is a broad term which includes sev-
eral other terms used to describe digital assets 
by market participants and regulators such as 
‘virtual asset’, ‘virtual currency’, and ‘convert-
ible virtual currency’ among others. 
‘‘(53) DIGITAL
ASSET
SECURITY.—The term 
‘digital asset security’ has the meaning given the 
term in section 3(a) of the Securities Exchange Act 
of 1934 (15 U.S.C. 78c(a)). 
‘‘(54) DIGITAL ASSET REPOSITORY OF TRANS-
ACTIONS.—The term ‘digital asset repository of 
transactions’ or ‘DART’ means any person that col-
lects and maintains information or records with re-
spect to transactions or positions in, or the terms 
and conditions of, contracts of sale of digital assets 
in interstate commerce entered into by third parties 
(both on chain public distributed ledger transactions 
as well as off-chain transactions) for the purpose of 
providing a centralized recordkeeping facility for any 
digital asset, but does not include a private or public 
distributed ledger or the operator of either such 
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ledger unless such private or public distributed ledg-
er or operator seeks to aggregate or include ‘off- 
chain’ transactions as well. 
‘‘(55) DISTRIBUTED LEDGER TECHNOLOGY.— 
The term ‘distributed ledger technology,’ means a 
decentralized peer-to-peer network of computers that 
operate on open-source software which validate and 
irrevocably log digital asset ownership and trans-
actions on a permanent public distributed ledger 
which is visible to the entire network. 
‘‘(56) VIRTUAL CURRENCY.—The term ‘virtual 
currency’ means a digital asset which is a digital 
representation of value that does not have legal ten-
der status and that functions as a medium of ex-
change, a unit of account, or a store of value.’’. 
(c) DEFINITION
OF COMMODITY TRADING ADVI-
SOR.—Section 1(a)(12)(A)(i) of the Commodity Exchange 
Act (7 U.S.C. 1(a)(12)(A)(i) is amended by adding ‘‘com-
modity interests, including any—’’ after ‘‘advisability of 
trading in’’. 
(d) DEFINITION
OF FUTURES COMMISSION MER-
CHANT.—Section 1a(28)(A)(i)(I)(aa) Commodity Ex-
change Act (7 U.S.C. 1a(9)) is amended— 
(1) in subitem (EE), by striking ‘‘or’’ at the 
end; and 
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(2) by adding at the end the following: 
‘‘(GG) any contract of 
sale of a digital asset in 
interstate commerce, but not 
a digital asset security; or’’. 
(e) DEFINITION OF INTRODUCING BROKER.—Section 
1a(31)(A)(i)(I) of the Commodity Exchange Act (7 U.S.C. 
1a(31)) is amended— 
(1) in item (cc) by striking ‘‘or’’ at the end; 
(2) in item (dd), by striking ‘‘and’’ at the end 
and inserting ‘‘or’’; and 
(3) by adding at the end the following: 
‘‘(ee) any contract of sale of 
a digital asset in interstate com-
merce, but not a digital asset se-
curity; and’’. 
SEC. 202. ACTUAL DELIVERY OF DIGITAL ASSETS. 
Section 2(c)(2)(D)(ii)(III) of the Commodity Ex-
change Act (7 U.S.C. 2(c)(2)(D)(ii)(III)) is amended— 
(1) in item (aa)— 
(A) by striking ‘‘other longer’’ and insert-
ing ‘‘shorter’’; and 
(B) by striking ‘‘; or’’ and inserting a 
semicolon; and 
(2) by adding at the end the following: 
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‘‘(cc) with respect to digital 
assets, results in actual delivery 
(including transfer of control 
over private keys) not later than 
24 hours after the transaction is 
entered into and such delivery is 
accomplished by either— 
‘‘(AA) 
recording 
the 
transaction on the public 
distributed ledger for the 
digital asset; or 
‘‘(BB) with respect to 
digital 
asset 
transactions 
which are not recorded on a 
public distributed ledger for 
the digital asset, reporting 
the transaction to a CFTC 
registered digital asset re-
pository of transactions; or’’. 
SEC. 203. OPTIONAL FEDERAL CHARTER FOR DIGITAL 
ASSET TRADING AND CLEARING. 
Section 2(a)(1) of the Commodity Exchange Act (7 
U.S.C. 2(a)(1)) is amended by adding at the end the fol-
lowing: 
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‘‘(J) OPTIONAL
FEDERAL
CHARTER
FOR 
DIGITAL ASSET TRADING AND CLEARING.—Not-
withstanding any other provision of law, a reg-
istered entity may list, trade, or clear a contract 
of sale of a commodity in interstate commerce 
(including digital assets). The registered entity 
shall apply all the core principles and related 
regulations, including Bank Secrecy Act, anti- 
money laundering and know your customer re-
quirements, to such contracts. The Commission 
shall have exclusive jurisdiction under this para-
graph over any agreement, contract, or trans-
action involving a contract of sale of a com-
modity in interstate commerce (including any 
digital asset) which is listed, traded, or cleared 
on or through a registered entity and, provided 
further, such contracts shall be treated for reg-
ulatory and enforcement purposes as if they 
were contracts of sale of a commodity for future 
delivery.’’. 
SEC. 204. REPORTING OF DIGITAL ASSET TRANSACTIONS 
TO DART. 
A digital asset trading platform shall report to the 
digital asset repository of transactions each contract of 
sale of a digital asset in interstate commerce transaction 
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executed on such digital asset trading platform, not later 
than 24 hours after such trade has executed. 
SEC. 205. CTA AND CPOS: COMMODITY INTERESTS. 
Section 4m (3)(C) of the Commodity Exchange Act 
(7 U.S.C. 6m(3)(C)) is amended by replacing the word 
‘‘paragraph’’ with ‘‘Act’’ and striking the word ‘‘physical’’. 
SEC. 206. SWAP DATA REPOSITORIES AND DIGITAL ASSET 
TRADE REPOSITORIES. 
Section 21 of the Commodity Exchange Act (7 U.S.C. 
24a) is amended to read as follows: 
‘‘SEC. 21. SWAP DATA REPOSITORIES AND DIGITAL ASSET 
TRADE REPOSITORIES. 
‘‘(a) REGISTRATION REQUIREMENT.— 
‘‘(1) REQUIREMENT; AUTHORITY
OF
DERIVA-
TIVES CLEARING ORGANIZATION.— 
‘‘(A) IN GENERAL.—It shall be unlawful 
for any person, unless registered with the Com-
mission, directly or indirectly to make use of 
the mails or any means or instrumentality of 
interstate commerce to perform the functions of 
a swap data repository or a digital asset reposi-
tory of transactions. 
‘‘(B) 
REGISTRATION
OF
DERIVATIVES 
CLEARING
ORGANIZATIONS.—A 
derivatives 
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compliance and frequency of end user clearing ex-
emption claims by individual and affiliated entities; 
‘‘(6) maintain the privacy of any and all swap 
or digital asset transaction information that the 
swap data repository or digital asset repository of 
transactions, respectively, receives from a swap deal-
er, counterparty, or any other registered entity; 
‘‘(7) on a confidential basis pursuant to section 
8, upon request, and after notifying the Commission 
of the request, make available swap or digital asset 
data obtained by the swap data repository or digital 
asset repository of transactions, respectively, includ-
ing individual counterparty trade and position data, 
to— 
‘‘(A) each appropriate prudential regulator; 
‘‘(B) the Financial Stability Oversight 
Council; 
‘‘(C) the Securities and Exchange Commis-
sion; 
‘‘(D) the Department of Justice; and 
‘‘(E) any other person that the Commis-
sion determines to be appropriate, including— 
‘‘(i) foreign financial supervisors (in-
cluding foreign futures authorities); 
‘‘(ii) foreign central banks; 
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‘‘(iii) foreign ministries; and 
‘‘(iv) other foreign authorities; and 
‘‘(8) establish and maintain emergency proce-
dures, backup facilities, and a plan for disaster re-
covery that allows timely recovery and resumption of 
operations and the fulfillment of the responsibilities 
and obligations of the organization. 
‘‘(d) CONFIDENTIALITY AGREEMENT.—Before the 
swap data repository or digital asset repository of trans-
actions may share information with any entity described 
in subsection (c)(7), the swap data repository or digital 
asset repository of transactions shall receive a written 
agreement from each entity stating that the entity shall 
abide by the confidentiality requirements described in sec-
tion 12 of this title relating to information on swap or 
digital asset transactions, respectively, that is provided. 
‘‘(e) DESIGNATION OF CHIEF COMPLIANCE OFFI-
CER.— 
‘‘(1) IN GENERAL.—Each swap data repository 
or digital asset repository of transactions shall des-
ignate an individual to serve as a chief compliance 
officer. 
‘‘(2) DUTIES.—The chief compliance officer 
shall— 
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‘‘(A) report directly to the board or to the 
senior officer of the swap data repository or 
digital asset repository of transactions; 
‘‘(B) review the compliance of the swap 
data repository or digital asset repository of 
transactions with respect to requirements and 
core principles described in this section; 
‘‘(C) in consultation with the board of the 
swap data repository or digital asset repository 
of transactions, a body performing a function 
similar to the board of the swap data repository 
or digital asset repository of transactions, or 
senior officer of the swap data repository or 
digital asset repository of transactions resolve 
any conflicts of interest that may arise; 
‘‘(D) be responsible for administering each 
policy and procedure that is required to be es-
tablished pursuant to this section; 
‘‘(E) ensure compliance with this Act (in-
cluding regulations) relating to agreements, 
contracts, or transactions, including each rule 
prescribed by the Commission under this sec-
tion; 
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‘‘(F) establish procedures for the remedi-
ation of noncompliance issues identified by the 
chief compliance officer through any— 
‘‘(i) compliance office review; 
‘‘(ii) look-back; 
‘‘(iii) internal or external audit find-
ing; 
‘‘(iv) self-reported error; or 
‘‘(v) validated complaint; and 
‘‘(G) establish and follow appropriate pro-
cedures for handling, management response, re-
mediation, retesting, and closing of noncompli-
ance issues. 
‘‘(3) ANNUAL REPORTS.— 
‘‘(A) IN
GENERAL.—In accordance with 
rules prescribed by the Commission, the chief 
compliance officer shall annually prepare and 
sign a report that contains a description of— 
‘‘(i) the compliance of the swap data 
repository or the digital asset repository of 
transactions, as appropriate, of the chief 
compliance office with respect to this Act 
(including regulations); and 
‘‘(ii) each policy and procedure of the 
swap data repository or the digital asset 
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repository of transactions, as appropriate, 
of the chief compliance officer (including 
the code of ethics and conflict of interest 
policies of the swap data repository or the 
digital asset repository of transactions, as 
appropriate). 
‘‘(B) REQUIREMENTS.—A compliance re-
port under subparagraph (A) shall— 
‘‘(i) accompany each appropriate fi-
nancial report of the swap data repository 
or digital asset repository of transactions 
that is required to be furnished to the 
Commission pursuant to this section; and 
‘‘(ii) include a certification that, under 
penalty of law, the compliance report is ac-
curate and complete. 
‘‘(f) CORE PRINCIPLES APPLICABLE TO SWAP DATA 
REPOSITORIES
AND DIGITAL ASSET TRADE REPOSI-
TORIES.— 
‘‘(1) 
ANTITRUST
CONSIDERATIONS.—Unless 
necessary or appropriate to achieve the purposes of 
this Act, a swap data repository or digital asset re-
pository of transactions shall not— 
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‘‘(A) adopt any rule or take any actions 
that result in any unreasonable restraint of 
trade; or 
‘‘(B) impose any material anticompetitive 
burden on the trading, clearing, or reporting of 
transactions. 
‘‘(2) 
GOVERNANCE
ARRANGEMENTS.—Each 
swap data repository or digital asset repository of 
transactions shall establish governance arrangements 
that are transparent— 
‘‘(A) to fulfill public interest requirements; 
and 
‘‘(B) to support the objectives of the Fed-
eral Government, owners, and participants. 
‘‘(3) CONFLICTS
OF
INTEREST.—Each swap 
data repository or digital asset repository of trans-
actions shall— 
‘‘(A) establish and enforce rules to mini-
mize conflicts of interest in the decision making 
process of the swap data repository or the dig-
ital asset repository of transactions; and 
‘‘(B) establish a process for resolving con-
flicts of interest described in subparagraph (A). 
‘‘(4) ADDITIONAL DUTIES DEVELOPED BY THE 
COMMISSION.— 
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‘‘(A) IN GENERAL.—The Commission may 
develop 1 or more additional duties applicable 
to swap data repositories or digital asset trade 
repositories. 
‘‘(B) 
CONSIDERATION
OF
EVOLVING 
STANDARDS.—In developing additional duties 
under subparagraph (A), the Commission may 
take into consideration any evolving standard of 
the United States or the international commu-
nity. 
‘‘(C) ADDITIONAL
DUTIES
FOR
COMMIS-
SION
DESIGNEES.—The Commission shall es-
tablish additional duties for any registered swap 
data repository or digital asset repository of 
transactions in order to minimize conflicts of 
interest, protect data, ensure compliance, and 
guarantee safety and security of the swap data 
repository or digital asset repository of trans-
actions. 
‘‘(g) REQUIRED REGISTRATION OF SWAP DATA RE-
POSITORIES
AND
DIGITAL
ASSET
TRADE
REPOSI-
TORIES.—Any person that is required to be registered as 
a swap data repository or a digital asset repository of 
transactions under this section shall register with the 
Commission regardless of whether that person is also li-
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censed as a bank, trust company, money services business, 
or registered with the Securities and Exchange Commis-
sion as a security-based swap data repository, broker-deal-
er, qualified custodian, or transfer agent. 
‘‘(h) RULES.—The Commission shall adopt rules gov-
erning persons that are registered under this section.’’. 
TITLE 
III—DIGITAL 
FEDERAL 
RESERVE NOTES, LEGAL TEN-
DER STATUS, THE REGULA-
TION OF DIGITAL ASSET FIAT- 
BASED 
STABLECOINS, 
AND 
FEDERAL 
DEPOSIT 
AND 
SHARE INSURANCE FOR DIG-
ITAL ASSETS 
Subtitle A—Digital Federal Reserve 
Notes 
SEC. 301. IN GENERAL. 
(a) SUPERVISING AND REGULATING ISSUE AND RE-
TIREMENT
OF
FEDERAL
RESERVE
NOTES.—Section 
11(d) of the Federal Reserve Act (12 U.S.C. 248(d)) is 
amended to read as follows: 
‘‘(d) To supervise and regulate through the Secretary 
of the Treasury the issue and retirement of Federal Re-
serve notes (both physical and digital), except for the can-
cellation and destruction, and accounting with respect to 
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such cancellation and destruction, of notes unfit for cir-
culation, and to prescribe rules and regulations (including 
appropriate technology) under which such notes may be 
delivered by the Secretary of the Treasury to the Federal 
Reserve agents applying therefor.’’. 
(b) ISSUANCE TO RESERVE BANKS; NATURE OF OB-
LIGATION; REDEMPTION.—Section 16 of the Federal Re-
serve Act (12 U.S.C. 411) is amended by striking the first 
two sentences and inserting: ‘‘Federal reserve notes, to be 
issued at the discretion of the Board of Governors of the 
Federal Reserve System for the purpose of making ad-
vances to Federal reserve banks through the Federal re-
serve agents as hereinafter set forth and for no other pur-
pose, are authorized. Notwithstanding any other provision 
of law, the Board of Governors of the Federal Reserve 
System is authorized to issue digital versions of Federal 
reserve notes in addition to current physical Federal re-
serve notes. Further, the Board of Governors of the Fed-
eral Reserve System, after consultation with the Secretary 
of the Treasury, is authorized to use distributed ledger 
technology for the creation, distribution and recordation 
of all transactions involving digital Federal reserve notes. 
The said notes shall be obligations of the United States 
and shall be considered legal tender and shall be receivable 
by all national and member banks and Federal reserve 
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banks and for all taxes, customs, and other public dues. 
They shall be redeemed in lawful money on demand at 
the Treasury Department of the United States, in the city 
of Washington, District of Columbia, or at any Federal 
Reserve bank.’’. 
SEC. 302. DIGITAL ASSET LEGAL TENDER STATUS. 
Section 5103 of title 31, United States Code, is 
amended to read as follows: 
‘‘§ 5103. Legal tender 
‘‘United States coins and currency (including Federal 
reserve notes and circulating notes of Federal reserve 
banks and national banks) are legal tender for all debts, 
public charges, taxes, and dues. Foreign fiat currencies, 
digital assets, digital asset securities and foreign gold and 
silver coins are not legal tender.’’. 
Subtitle B—Regulation of Digital 
Asset Fiat-Based Stablecoins 
SEC. 311. DEPARTMENT OF TREASURY REGULATION OF 
DIGITAL ASSET FIAT-BASED STABLECOINS. 
Subchapter I of chapter 51 of subtitle IV of title 31, 
United States Code is amended by adding at the end the 
following: 
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‘‘§ 5104. Department of Treasury regulation of digital 
asset fiat-based stablecoins 
‘‘(a) IN GENERAL.—Beginning on the date of the en-
actment of this section, no person may issue, use, or per-
mit to be used a digital asset fiat-based stablecoin that 
is not approved by the Secretary of the Treasury under 
subsection (b). 
‘‘(b) APPLICATIONS.— 
‘‘(1) IN
GENERAL.—Not later than 90 days 
after the date of the enactment of this section, the 
Secretary of the Treasury shall establish an applica-
tion process under which the Secretary may approve 
or disapprove a person wishing to issue a digital 
asset fiat-based stablecoin, under such terms and 
conditions as the Secretary determines necessary 
and appropriate. 
‘‘(2) CONSULTATION.—In carrying out para-
graph (1), the Secretary of the Treasury shall, in 
considering applications for digital asset fiat-based 
stablecoins, consult with— 
‘‘(A) the Board of Governors of the Fed-
eral Reserve System; 
‘‘(B) the Securities and Exchange Commis-
sion; 
‘‘(C) the Commodity Futures Trading 
Commission; and 
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‘‘(D) such other foreign central banks or 
foreign treasury departments or agencies as the 
Secretary of the Treasury determines appro-
priate. 
‘‘(3) APPROVAL OR DISAPPROVAL; TERMS AND 
CONDITIONS CHANGES; TERMINATION.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary of the Treasury may 
approve or disapprove an application by an 
issuer of a digital asset fiat-based stablecoin or 
may withdraw an approval or modify the terms 
and conditions of an approval previously issued 
under paragraph (1). 
‘‘(B) TIMING.—With respect to a with-
drawal or modification of an approval under 
subparagraph (A), the Secretary of the Treas-
ury shall notify the issuer at least 60 days be-
fore such approval is so withdrawn or modified. 
‘‘(4) NO GRANDFATHERING OF EXISTING DIG-
ITAL ASSET FIAT-BASED STABLECOINS.—The Sec-
retary of the Treasury shall not grandfather the use 
of any digital asset fiat-based stablecoin. All digital 
asset fiat-based stablecoins, including digital asset 
fiat-based stablecoins existing on the date of the en-
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actment of this section, shall apply to the Secretary 
of the Treasury under this section. 
‘‘(c) DIGITAL ASSET FIAT-BASED STABLECOIN DE-
FINED.—In this section, the term ‘digital asset fiat-based 
stablecoin’ means a digital asset (as defined in section 1a 
of the Commodity Exchange Act (7 U.S.C. 1a)) that is, 
as determined by the Secretary of the Treasury, tied, 
pegged to, or collateralized substantially by— 
‘‘(1) the United States dollar or; 
‘‘(2) one or more fiat currencies.’’. 
SEC. 312. CONFORMING AMENDMENT. 
The table of contents for subchapter I of chapter 51 
of subtitle IV of title 31, United States Code is amended 
by adding at the end the following: 
‘‘5104. Department of Treasury regulation of digital asset fiat-based 
stablecoins.’’. 
Subtitle C—Federal Deposit and 
Share Insurance for Digital Assets 
SEC. 321. DIGITAL ASSET NOT DEPOSITS FOR FEDERAL DE-
POSIT AND SHARE INSURANCE. 
(a) FEDERAL DEPOSIT INSURANCE ACT.—Section 
3(l)(5) of the Federal Deposit Insurance Act (12 U.S.C. 
1813(l)(5)) is amended— 
(1) in subparagraph (B), by striking ‘‘; and’’ 
and inserting a semicolon; 
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(2) in subparagraph (C), by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(D) any— 
‘‘(i) digital asset (as defined in section 
1a of the Commodity Exchange Act (7 
U.S.C. 1a)); or 
‘‘(ii) digital asset security (as defined 
in section 3(a) of the Securities Exchange 
Act of 1934 (15 U.S.C. 78c(a)).’’. 
(b) FEDERAL CREDIT UNION ACT.—Section 101(5) 
of the Federal Credit Union Act (12 U.S.C. 1752(5)) is 
amended by striking ‘‘State law’’ and inserting ‘‘State law: 
Provided further: That in no case may such terms include 
a digital asset (as defined in section 1a of the Commodity 
Exchange Act (7 U.S.C. 1a)) or digital asset security (as 
defined in section 3(a) of the Securities Exchange Act of 
1934 (15 U.S.C. 78c(a))’’. 
SEC. 
322. 
DIRECTED 
RULEMAKING 
FDIC 
AND 
NCUA 
WEBSITE DISCLOSURE ON DIGITAL ASSETS 
AND INSURANCE NONCOVERAGE. 
(a) FDIC AND NCUA NOTICES.—Not later than 90 
days after the date of the enactment of this Act, the Fed-
eral Deposit Insurance Corporation and the National 
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Credit Union Administration shall each make publicly 
available on the website of such entity a notice— 
(1) regarding the treatment of digital assets 
and digital asset securities; 
(2) that digital assets and digital asset securi-
ties are not ‘‘deposits’’ or ‘‘shares’’ and are not cov-
ered by Federal deposit insurance (FDIC or 
NCUA), regardless of whether an insured bank, sav-
ings association, or credit union holds the digital as-
sets or digital assets securities; and 
(3) such notice shall specifically address wheth-
er the FDIC Nondeposit Investment Product 
(NDIP) Policy Statement and related disclosure ob-
ligations or similar NCUA requirements apply to 
digital assets and digital asset securities. 
(b) DIGITAL ASSET.—In this section, the term ‘‘dig-
ital asset’’ has the meaning given the term in section 1a 
of the Commodity Exchange Act (7 U.S.C. 1a). 
(c) DIGITAL ASSET SECURITY.—In this section, the 
term ‘‘digital asset security’’ has the meaning given the 
term in section 3(a) of the Securities Exchange Act of 
1934 (15 U.S.C. Sec. 78c(a)). 
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TITLE IV—BANK SECRECY ACT 
SEC. 401. BANK SECRECY ACT. 
(a) DEFINITION
OF MONETARY INSTRUMENTS.— 
Section 5312(a)(3)(B) of title 31, United States Code, is 
amended— 
(1) by inserting ‘‘digital assets,’’ after ‘‘coins 
and currency of a foreign country,’’; and 
(2) by inserting after ‘‘passed on delivery’’, the 
following: ‘‘, digital asset security as such term is 
defined in section 3(a) of the Securities Exchange 
Act of 1934’’. 
(b) DEFINITION OF DIGITAL ASSET AND VIRTUAL 
ASSET.—Section 5312(a) of title 31, United States Code, 
is amended by adding after paragraph (6) the following: 
‘‘(7) DIGITAL ASSET.—The term ‘digital asset’ 
has the meaning given the term in section 1a of the 
Commodity Exchange Act (7 U.S.C. 1a). 
‘‘(8) VIRTUAL ASSET.—The term ‘virtual asset’ 
means— 
‘‘(A) a digital representation of value that 
can be digitally traded, or transferred, and can 
be used for payment or investment purposes; 
and 
‘‘(B) a digital asset.’’. 
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(c) DEFINITION OF VIRTUAL ASSET SERVICE PRO-
VIDER.—Section 5312(a) of title 31, United States Code, 
is further amended by adding at the end the following: 
‘‘(9) VIRTUAL ASSET SERVICE PROVIDER.—The 
term ‘virtual asset service provider’— 
‘‘(A) means a person who— 
‘‘(i) exchanges between digital asset 
and fiat currencies; 
‘‘(ii) exchanges between digital assets; 
‘‘(iii) transfers of digital assets; 
‘‘(iv) is responsible for the custody, 
safekeeping of a digital asset or an instru-
ment that enables control over a digital 
asset; 
‘‘(v) issues or has the authority to re-
deem a digital asset; and 
‘‘(vi) provides financial services re-
lated to the offer or sale of a digital asset 
by a person who issues such digital asset; 
and 
‘‘(B) does not include any person who— 
‘‘(i) obtains a digital asset to purchase 
goods or services for themself; 
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‘‘(ii) provides communication service 
or network access services used by a money 
transmitter; or 
‘‘(iii) develops, creates, or dissemi-
nates software designed to be used to issue 
a digital asset or facilitate financial activi-
ties associated with a digital asset.’’. 
(d) ADDITIONAL DEFINITIONS.—Section 5312(c)(1) 
of title 31, United States Code, is amended— 
(1) in subparagraph (A), by striking the period 
at the end and inserting a semicolon; and 
(2) by adding after subparagraph (A), the fol-
lowing: 
‘‘(B) any virtual asset service provider 
that— 
‘‘(i) exchanges between digital assets 
and fiat currencies; 
‘‘(ii) exchanges between digital assets; 
‘‘(iii) transfers digital assets; 
‘‘(iv) is responsible for the custody, 
safekeeping or administration of digital as-
sets or instruments enabling control over 
digital assets; or 
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‘‘(v) provides financial services related 
to the offer or sale of a digital asset by an 
issuer.’’. 
SEC. 402. ANONYMIZING SERVICES, MONEY MULE, AND AN-
ONYMITY-ENHANCED CONVERTIBLE VIRTUAL 
CURRENCIES. 
Subchapter II of chapter 53 of subtitle IV of title 
31, United States Code is amended by adding at the end 
the following: 
‘‘SEC. 5333. ANONYMIZING SERVICES, MONEY MULE, AND 
ANONYMITY-ENHANCED CONVERTIBLE VIR-
TUAL CURRENCIES. 
‘‘(a) IN GENERAL.—Not later than 180 days of the 
date of the enactment of the Digital Asset Market Struc-
ture and Investor Protection Act, the Secretary of the 
Treasury, acting through the Financial Crimes Enforce-
ment Network, shall issue a rule that governs— 
‘‘(1) anonymizing services; 
‘‘(2) money mules; and 
‘‘(3) anonymity-enhanced convertible virtual 
currency transactions. 
‘‘(b) PURPOSE.—The purpose of the rule described 
in subsection (a) shall be to ensure that anonymizing serv-
ices, money mule, and anonymity-enhanced convertible vir-
tual currencies are not used to prevent association of an 
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individual customer with the movement of a digital asset, 
digital asset security, or virtual currency of which the cus-
tomer is the direct or beneficial owner. 
‘‘(c) REQUIREMENTS.—The rule described in sub-
section (a) shall— 
‘‘(1) require any financial institution to prohibit 
any person from engaging in any transactions that 
involves digital assets or digital asset securities 
and— 
‘‘(A) anonymizing services; 
‘‘(B) money mules; or 
‘‘(C) anonymity-enhanced convertible vir-
tual currencies; 
‘‘(2) prohibit any financial institution from in-
forming persons about— 
‘‘(A) the existence of anonymizing services, 
money mules and anonymity-enhanced convert-
ible virtual currencies; 
‘‘(B) the availability of anonymizing serv-
ices, money mules and anonymity-enhanced 
convertible virtual currencies; or 
‘‘(C) means for identifying anonymizing 
services, money mules and anonymity-enhanced 
convertible virtual currencies; and 
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‘‘(3) require any financial institution to estab-
lish written procedures governing the documentation 
of the persons and amounts associated with any 
transaction involving— 
‘‘(A) an anonymizing service; 
‘‘(B) a money mule; or 
‘‘(C) anonymity-enhanced convertible vir-
tual currencies. 
‘‘(d) DEFINITIONS.—In this section, the term ‘virtual 
currency’, ‘anonymizing service’, ‘money mule’, and ‘ano-
nymity-enhanced convertible virtual currency’ have the 
meanings given such terms by the Secretary of the Treas-
ury, acting through the Financial Crimes Enforcement 
Network.’’. 
SEC. 403. DIGITAL ASSET TRANSACTION ACTUAL DELIVERY 
REPORTING. 
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of the Treasury, in con-
sultation with the Commodity Futures Trading Commis-
sion, shall issue a rule that requires, for any transaction 
involving a contract of sale of a digital asset (as defined 
in section 1a of the Commodity Exchange Act (7 U.S.C. 
1a)) in interstate commerce— 
(1) the transfer of possession and control (in-
cluding transfer of control over any private keys) by 
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the seller to the purchaser not later than 24 hours 
after the digital asset transaction is entered into and 
such delivery is accomplished by either— 
(A) the recording of the transaction on the 
public distributed ledger for the digital asset; or 
(B) with respect to digital asset trans-
actions which are not recorded on the public 
distributed ledger for the digital asset, report-
ing the transaction to a CFTC registered dig-
ital asset repository of transactions. 
SEC. 404. VIRTUAL DIGITAL ASSET SERVICE PROVIDERS. 
(a) IN GENERAL.—The Secretary of the Treasury 
shall, not later than 270 days after the date of the enact-
ment of this Act, issue a rule requiring virtual asset serv-
ice providers (as defined in section 5312(a) of title 31, 
United States Code), which are engaged in services which 
are available in the United States and to United States 
persons, even if the provider is located outside the United 
States, related to digital asset securities and digital assets, 
that such persons shall be required to— 
(1) register with the Securities and Exchange 
Commission or with the Commodity Futures Trad-
ing Commission, as appropriate and in such capac-
ities as are appropriate; 
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(2) with respect to digital asset securities, meet 
the customer protection and account custody rules 
which are applicable to Securities Exchange Com-
mission registered broker-dealers for customer funds 
and securities; and 
(3) with respect to digital assets, meet the cus-
tomer account custody and segregated funds rules 
which are applicable to Commodity Futures Trading 
Commission registered futures commission mer-
chants. 
(b) CUSTOMER ACCOUNTS.—The customer accounts 
custody requirements referenced in subsection (a) shall in-
clude, but are not limited to, using registered and qualified 
custodians, proper customer account labeling and identi-
fication, minimum of quarterly account statements being 
issued to customers by the registered and qualified custo-
dian, annual surprise audit requirements and annual au-
dits by accounting firms which are registered with the 
Public Company Accounting Oversight Board. 
TITLE V—VARIOUS DIGITAL 
ASSET REPORTS 
SEC. 501. IRS REPORT ON DIGITAL ASSET OWNERSHIP/ 
TAXES. 
(a) IN GENERAL.—Not later than 270 days after the 
date of the enactment of this Act, the Secretary of the 
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Treasury, acting through the Internal Revenue Service, 
after consulting with other Federal and State regulators 
and market participants as appropriate, shall submit a re-
port to the specified committees on the utilization of dig-
ital assets by United States citizens that— 
(1) estimates the number and percentage of 
United States citizens who own digital assets as of 
the date of the enactment of this Act and who have 
paid tax on digital assets each year between 2016 
and 2020; 
(2) compares the number and percentage of 
Americans who own stocks and bonds and who have 
paid taxes on such assets over the same time period 
referenced above; 
(3) estimates the number and percentage of 
Americans who fail to report digital asset holdings 
and income versus stock and bond holdings; 
(4) identifies the major digital asset trading 
platforms in the United States, the number of cus-
tomer accounts with each platform, and the annual 
trading volume of each platform; 
(5) estimates the number of United States citi-
zens who use United States registered digital asset 
trading platforms compared to foreign digital asset 
trading platforms; 
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(6) estimates the amount of tax revenue which 
was not received by the United States Treasury due 
to under reporting by United States taxpayers each 
year between 2016 and 2020; and 
(7) makes legislative and regulatory rec-
ommendations regarding changes which would im-
prove reporting and collection of taxes on digital as-
sets so it would be closer to reporting and collection 
of taxes on securities holdings. 
(b) SPECIFIED COMMITTEES.—In this section, the 
term ‘‘specified committees’’ means— 
(1) the Ways and Means Committee of the 
House of Representatives; 
(2) the Finance Committee of the Senate; 
(3) the Committee on Financial Services of the 
House of Representatives; 
(4) the Committee on Banking, Housing, and 
Urban Affairs of the Senate; 
(5) the Committee on Agriculture of the House 
of Representatives; and 
(6) the Committee on Agriculture, Nutrition, 
and Forestry of the Senate. 
SEC. 502. REPORT ON RANSOMWARE AND DIGITAL ASSETS. 
(a) REPORT.—Not later than 270 days after the date 
of enactment of this Act, the Department of Justice, De-
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partment of Homeland Security, Department of the 
Treasury, and Board of Governors of the Federal Reserve 
System shall jointly submit a report to the appropriate 
committees that— 
(1) summarizes the number and size of recent 
ransomware attacks in the United States and the 
world; 
(2) discusses the frequency of ransomware 
hackers requesting payment in digital assets and 
identifies the most common digital assets which are 
demanded; 
(3) discusses the use of mixing and tumbling 
services and money mules to help obscure audit trail 
for the digital assets involved; 
(4) identifies the digital asset trading platforms 
most frequently used for transactions involving dig-
ital asset ransoms; and 
(5) makes legislative and regulatory rec-
ommendations for addressing the problem of 
ransomware and digital assets. 
(b) APPROPRIATE COMMITTEES.—Appropriate com-
mittees include the Committee on the Judiciary, Com-
mittee on Homeland Security, Committee on Financial 
Services, and the Committee on Agriculture of the House 
of Representatives, and the Committee on the Judiciary, 
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Committee on Homeland Security and Governmental Af-
fairs, Committee on Banking, Housing, and Urban Af-
fairs, Committee on Agriculture, Nutrition, and Forestry 
of the Senate. 
SEC. 503. REPORT ON DECENTRALIZED FINANCE. 
Not later than 270 days after the date of the enact-
ment of this Act, the Board of Governors of the Federal 
Reserve System, the Office of the Comptroller of the Cur-
rency, the Secretary of the Treasury, the Securities and 
Exchange Commission, and the Commodity Futures Trad-
ing Commission, shall jointly submit a report to the appro-
priate committees that— 
(1) summarizes the use of decentralized finance 
in the United States; 
(2) estimates the number and percentage of 
Americans using decentralized finance products and 
services versus the global usage and identifies the 
major decentralized finance products and services by 
estimated dollar volume usage; 
(3) provides recommendations with respect to 
the definition of the term ‘‘decentralized finance’’ to 
be adopted and codified in United States law; 
(4) discusses the primary differences between 
digital asset fiat-based stablecoins and central bank 
digital currencies; 
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(5) discusses whether there are financial sta-
bility risks or concerns posed by decentralized fi-
nance; 
(6) provides recommendations regarding appro-
priate regulation and investor protection for decen-
tralized finance in United States banking, securities, 
and commodities, including with respect to United 
States jurisdiction and application of United States 
law; and 
(7) discusses the legal obligations of creators, 
owners, or operators of decentralized finance appli-
cations, distributed ledgers, smart contracts, and 
other applications which are hacked or are used for 
fraud and manipulation. 
SEC. 504. REPORT ON CUSTODY OF DIGITAL ASSETS AND 
DIGITAL ASSET SECURITIES. 
Not later than 270 days after the date of the enact-
ment of this Act, the Securities and Exchange Commis-
sion, the Office of the Comptroller of the Currency, the 
Secretary of the Treasury, and the Commodity Futures 
Trading Commission, shall jointly submit a report to the 
appropriate committees that— 
(1) provides recommendations on the regula-
tion, licensing, and auditing of digital asset 
custodians and digital asset security custodians; and 
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(2) considers each of the following issues: 
(A) The custody of digital assets and dig-
ital asset securities. 
(B) Estimates on digital assets and digital 
asset securities custody at trading platforms, li-
censed custodians, self custody in wallets. 
(C) FINRA Guidance to Broker Dealers 
on Digital Asset and Digital Asset Security 
Custody. 
(D) AICPA position on custody of digital 
assets and digital asset securities. 
(E) Custodian markets, banks, trust com-
panies, brokers, dealers, and futures commis-
sions merchants. 
(F) The background on major United 
States and foreign digital asset and digital 
asset security custodians by size (assets held) 
and licensing. 
SEC. 505. REPORT ON DIGITAL ASSET TRADING PLAT-
FORMS. 
Not later than 270 days after the date of the enact-
ment of this section, the Securities and Exchange Com-
mission, the Commodity Futures Trading Commission, the 
Secretary of the Treasury, and the Financial Crimes En-
forcement Network, in consultation with such Federal and 
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