Vote Smart's Synopsis:

Vote to pass a bill that establishes a regulatory framework for digital commodities, defined by the bill as digital assets that rely upon a blockchain for their value.

Highlights:

• Establishes a regulatory framework for digital commodities, defined by the bill as digital assets that rely upon a blockchain for their value (Sec. 1-509).

• Specifies that the Commodity Futures Trading Commission must generally regulate digital commodities transactions, including digital commodity exchanges, brokers, and dealers (Sec. 1-509).

• Specifies that to qualify for trade on an exchange (Sec. 1-509):

• A digital commodity’s blockchain must be mature, or on a blockchain system that has achieved decentralized control as defined by the bill; or

• The issuer of the digital commodity must file certain reports.

• Establishes requirements for trade monitoring, recordkeeping, and the commingling of customer assets.  

• Exempts digital commodities on mature blockchains (and digital commodities on blockchains expected to mature within certain timeframes) from Securities and Exchange Commission (SEC) registration requirements if annual sales fall under a certain amount and other requirements are met (Sec. 1-509).

• Authorizes the SEC with jurisdiction over digital commodity activities and transactions engaged in by certain brokers and dealers on alternative trading systems and by national securities exchanges (Sec. 1-509). 

• Specifies that digital commodity exchanges, brokers, and dealers are subject to the Bank Secrecy Act for anti-money laundering and related purposes (Sec. 1-509).

• Establishes requirements for alternative trading systems, previously issued digital commodities, and provisional registration until the bill is implemented (Sec. 1-509).

Full Bill Text

Full Bill Text