119-s1223

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1223 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 1223

To amend the Commodity Exchange Act to prohibit interference in United 
 States digital commodity markets by entities organized or established 
 in a foreign adversary, and for other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 April 1 (legislative day, March 31), 2025

 Mr. Tuberville (for himself, Mrs. Hyde-Smith, and Mr. Justice) 
introduced the following bill; which was read twice and referred to the 
 Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

 A BILL

To amend the Commodity Exchange Act to prohibit interference in United 
 States digital commodity markets by entities organized or established 
 in a foreign adversary, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Prohibiting Foreign Adversary 
Interference in Cryptocurrency Markets Act''.

SEC. 2. PROHIBITION ON REGISTRATION OF FOREIGN ADVERSARY-AFFILIATED 
 DIGITAL COMMODITY PLATFORMS.

 

Section 4

    (b) of the Commodity Exchange Act (7 U.S.C. 6

    (b) ) is 
amended by adding at the end the following:
 ``

    (3) Prohibition on registration of foreign adversary-
 affiliated digital commodity platforms.--
 ``
        (A) === Definitions. ===
-In this paragraph:
 ``
            (i) Covered entity.--The term `covered 
 entity' means--
 ``
            (I) an entity that is established 
 or organized under the laws of, or the 
 principal place of business of which is 
 located in, a foreign adversary; and
 ``
            (II) any subsidiary owned (in 
 whole or in part) or operated by an 
 entity described in subclause
            (I) .
 ``
            (ii) Digital commodity.--
 ``
            (I) In general.--The term 
 `digital commodity' means a fungible 
 digital form of personal property that 
 can be possessed and transferred 
 person-to-person without necessary 
 reliance on an intermediary.
 ``
            (II) Inclusions.--The term 
 `digital commodity' includes property 
 commonly known as `cryptocurrency' or 
 `virtual currency'.
 ``
            (III) Exclusions.--The term 
 `digital commodity' does not include--
 ``

    (aa) an interest in a 
 physical commodity;
 ``

    (bb) a security;
 ``
            (cc) a digital form of 
 currency backed by the full 
 faith and credit of the United 
 States; or
 ``
            (dd) any other instrument 
 that the Commission determines 
 not to be a digital commodity.
 ``
            (iii) Digital commodity broker.--
 ``
            (I) In general.--The term 
 `digital commodity broker' means a 
 person that is engaged, as an 
 identifiable business, in--
 ``

    (aa) soliciting or 
 accepting orders on behalf of 
 another person for a digital 
 commodity trade;
 ``

    (bb) accepting digital 
 commodities from another person 
 for the purpose of entering 
 into digital commodity trades;
 ``
            (cc) arranging digital 
 commodity trades on behalf of 
 another person; or
 ``
            (dd) a similar activity, 
 as determined by the 
 Commission.
 ``
            (II) Exclusion.--The term 
 `digital commodity broker' does not 
 include a person solely because that 
 person validates digital commodity 
 transactions.
 ``
            (iv) Digital commodity custodian.--The 
 term `digital commodity custodian' means a 
 person that, as an identifiable business, 
 maintains possession, custody, or control over 
 digital commodities on behalf of another 
 person.
 ``
            (v) Digital commodity dealer.--
 ``
            (I) In general.--The term 
 `digital commodity dealer' means a 
 person that--
 ``

    (aa) has an identifiable 
 business of dealing in a 
 digital commodity as principal 
 for its own account;
 ``

    (bb) makes a market in a 
 digital commodity;
 ``
            (cc) holds itself out as 
 a dealer in a digital 
 commodity;
 ``
            (dd) has as an 
 identifiable business of buying 
 or selling digital commodities 
 for conversion into other 
 digital commodities, currency, 
 or other consideration;
 ``

    (ee) has as an 
 identifiable business of 
 accepting digital commodities 
 from another person (referred 
 to in this item as a 
 `depositor') with an obligation 
 to return to the depositor the 
 digital commodities, 
 consideration linked to the 
 digital commodities, or both; 
 or
 ``

    (ff) engages in a similar 
 activity, as determined by the 
 Commission.
 ``
            (II) Exclusion.--The term 
 `digital commodity dealer' does not 
 include a person solely because that 
 person validates digital commodity 
 transactions.
 ``
            (vi) Digital commodity platform.--The 
 term `digital commodity 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 
 facility.
 ``
            (vii) Digital commodity trade.--
 ``
            (I) In general.--The term 
 `digital commodity trade' means a 
 purchase or sale of a digital commodity 
 in exchange for--
 ``

    (aa) another digital 
 commodity; or
 ``

    (bb) any other 
 consideration.
 ``
            (II) Inclusions.--The term 
 `digital commodity trade' includes--
 ``

    (aa) an offer to enter 
 into a purchase or sale 
 described in subclause
            (I) ; and
 ``

    (bb) a loan of a digital 
 commodity, an offer to enter 
 into a loan of a digital 
 commodity, or a similar 
 activity, as determined by the 
 Commission.
 ``
            (viii) Digital commodity trading 
 facility.--
 ``
            (I) In general.--The term 
 `digital commodity trading facility' 
 means a trading facility that 
 facilitates the execution or trading of 
 digital commodity trades between 
 persons.
 ``
            (II) Exclusion.--The term 
 `digital commodity trading facility' 
 does not include a person solely 
 because that person validates digital 
 commodity transactions.
 ``
            (ix) Foreign adversary.--The term 
 `foreign adversary' means--
 ``
            (I) the People's Republic of 
 China, including the Hong Kong Special 
 Administrative Region and the Macao 
 Special Administrative Region;
 ``
            (II) the Republic of Cuba;
 ``
            (III) the Islamic Republic of 
 Iran;
 ``
            (IV) the Democratic People's 
 Republic of Korea;
 ``
            (V) the Russian Federation; and
 ``
            (VI) the Bolivarian Republic of 
 Venezuela under the regime of Nicolas 
 Maduro Moros.
 ``
        (B) Prohibition on registration.--The Commission 
 shall not register under this Act a digital commodity 
 platform that is owned (in whole or in part) by a 
 covered entity.
 ``
            (C) Revocation of registration.--The Commission 
 shall revoke the registration under this Act of a 
 digital commodity platform if a covered entity acquires 
 all or any part of the ownership of the digital 
 commodity platform.''.
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