gled and deposited in customer ac-
counts with any other money, assets, 
or property received by the digital 
commodity exchange and required by 
the Commission to be separately ac-
counted for and treated and dealt 
with as belonging to the customer of 
the digital commodity exchange. 
‘‘(C) PERMITTED
INVESTMENTS.—Money 
described in clause (ii) may be invested in obli-
gations of the United States, in general obliga-
tions of any State or of any political subdivision 
of a State, and in obligations fully guaranteed 
as to principal and interest by the United 
States, or in any other investment that the 
Commission may by rule or regulation pre-
scribe, and such investments shall be made in 
accordance with such rules and regulations and 
subject to such conditions as the Commission 
may prescribe. 
‘‘(D) CUSTOMER PROPERTY.—Assets held 
on behalf of a customer by a digital commodity 
exchange shall be considered to be customer 
property as such term is defined in section 761 
of title 11, United States Code, with regard to 
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all money, assets, and property of any customer 
received by a digital commodity exchange for 
trading or custody, or to margin, guarantee, or 
secure digital commodity transactions (includ-
ing money, assets, or property accruing to the 
customer as the result of such transactions). 
‘‘(E) MISUSE OF CUSTOMER PROPERTY.— 
It shall be unlawful— 
‘‘(i) for any digital commodity ex-
change that has received any customer 
money, assets, or property for custody to 
dispose of, or use any such money, assets, 
or property as belonging to the digital 
commodity exchange; or 
‘‘(ii) for any other person, including 
any depository, other digital commodity ex-
change, or digital commodity custodian 
that has received any customer money, as-
sets, or property for deposit, to hold, dis-
pose of, or use any such money, assets, or 
property as belonging to the depositing 
digital commodity exchange or any person 
other than the customers of the digital 
commodity exchange. 
‘‘(F) CUSTOMER RIGHT TO OPT OUT.— 
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‘‘(i) IN GENERAL.—A customer shall 
have the right to waive the restrictions in 
subparagraph (B), by affirmatively elect-
ing, in writing to the digital commodity ex-
change, to waive the restrictions. 
‘‘(ii) LIMITATIONS.—The Commission 
may, by rule, establish notice and disclo-
sure requirements, segregation require-
ments, investment limitations, and other 
rules related to the waiving of any restric-
tions under this paragraph that are rea-
sonably necessary to protect customers, in-
cluding eligible contract participants, non- 
eligible contract participants, or any other 
class of customers. 
‘‘(5) MONITORING
OF
TRADING
AND
TRADE 
PROCESSING.— 
‘‘(A) IN GENERAL.—The digital commodity 
exchange shall provide a competitive, open, and 
efficient market and mechanism for executing 
transactions that protects the price discovery 
process of trading on the exchange. 
‘‘(B) PROTECTION OF MARKETS AND MAR-
KET PARTICIPANTS.—The digital commodity ex-
change shall establish and enforce rules— 
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‘‘(i) to protect markets and market 
participants from abusive practices com-
mitted by any party, including abusive 
practices committed by a party acting as 
an agent for a participant; and 
‘‘(ii) to promote fair and equitable 
trading on the exchange. 
‘‘(C) The digital commodity exchange 
shall— 
‘‘(i) establish and enforce rules or 
terms and conditions defining, or specifica-
tions detailing— 
‘‘(I) trading procedures to be 
used in entering and executing orders 
traded on or through the facilities of 
the digital commodity exchange; and 
‘‘(II) procedures for trade proc-
essing of digital commodities on or 
through the facilities of the digital 
commodity exchange; and 
‘‘(ii) monitor trading in digital com-
modities to prevent manipulation, price 
distortion, and disruptions of the delivery 
or cash settlement process through surveil-
lance, compliance, and disciplinary prac-
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tices and procedures, including methods 
for conducting real-time monitoring of 
trading and comprehensive and accurate 
trade reconstructions. 
‘‘(6) ABILITY TO OBTAIN INFORMATION.—The 
digital commodity exchange shall— 
‘‘(A) establish and enforce rules that will 
allow the facility to obtain any necessary infor-
mation to perform any of the functions de-
scribed in this section; 
‘‘(B) provide the information to the Com-
mission on request; and 
‘‘(C) have the capacity to carry out such 
international information-sharing agreements as 
the Commission may require. 
‘‘(7) EMERGENCY
AUTHORITY.—The digital 
commodity exchange shall adopt rules to provide for 
the exercise of emergency authority, in consultation 
or cooperation with the Commission or a registered 
entity, as is necessary and appropriate, including the 
authority to facilitate the liquidation or transfer of 
open positions in any digital commodity or to sus-
pend or curtail trading in a digital commodity. 
‘‘(8) REPORTING REQUIREMENTS.— 
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‘‘(A) DUTY OF DIGITAL COMMODITY EX-
CHANGE.—Each digital commodity exchange 
shall provide to the Commission all information 
that is determined by the Commission to be 
necessary to perform each responsibility of the 
Commission under this Act. 
‘‘(B) TIMELY
PUBLICATION
OF
TRADING 
INFORMATION.— 
‘‘(i) IN GENERAL.—The digital com-
modity exchange shall make public timely 
information on price, trading volume, and 
other trading data on digital commodities 
to the extent prescribed by the Commis-
sion. 
‘‘(ii) CAPACITY
OF
DIGITAL
COM-
MODITY
EXCHANGE.—The digital com-
modity exchange shall be required to have 
the capacity to electronically capture and 
transmit trade information with respect to 
transactions executed on the exchange. 
‘‘(9) RECORDKEEPING AND REPORTING.— 
‘‘(A) IN GENERAL.—A digital commodity 
exchange shall— 
‘‘(i) maintain records of all activities 
relating to the business of the facility, in-
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