United States S 1870: Prohibiting Foreign Adversary Interference in Cryptocurrency Markets Act

Bill Text

II
118TH CONGRESS
1ST SESSION S. 1870
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
JUNE 7, 2023
Mr. TUBERVILLE (for himself and Mrs. GILLIBRAND) 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 inter-
ference 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 Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Prohibiting Foreign 4
Adversary Interference in Cryptocurrency Markets Act’’. 5
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SEC. 2. PROHIBITION ON REGISTRATION OF FOREIGN AD-1
VERSARY-AFFILIATED DIGITAL COMMODITY 2
PLATFORMS. 3
Section 4(b) of the Commodity Exchange Act (7 4
U.S.C. 6(b)) is amended by adding at the end the fol-5
lowing: 6
‘‘(3) PROHIBITION ON REGISTRATION OF FOR-7
EIGN ADVERSARY-AFFILIATED DIGITAL COMMODITY 8
PLATFORMS.— 9
‘‘(A) DEFINITIONS.—In this paragraph: 10
‘‘(i) COVERED ENTITY.—The term 11
‘covered entity’ means— 12
‘‘(I) an entity that is established 13
or organized under the laws of, or the 14
principal place of business of which is 15
located in, a foreign adversary; or 16
‘‘(II) any subsidiary owned (in 17
whole or in part) or operated by an 18
entity described in subclause (I). 19
‘‘(ii) DIGITAL COMMODITY.— 20
‘‘(I) IN GENERAL.—The term 21
‘digital commodity’ means a fungible 22
digital form of personal property that 23
can be possessed and transferred per-24
son-to-person without necessary reli-25
ance on an intermediary. 26
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‘‘(II) INCLUSIONS.—The term 1
‘digital commodity’ includes property 2
commonly known as cryptocurrency or 3
virtual currency. 4
‘‘(III) EXCLUSIONS.—The term 5
‘digital commodity’ does not include— 6
‘‘(aa) an interest in a phys-7
ical commodity; 8
‘‘(bb) a security; 9
‘‘(cc) a digital form of cur-10
rency backed by the full faith 11
and credit of the United States; 12
or 13
‘‘(dd) any other instrument 14
that the Commission determines 15
not to be a digital commodity. 16
‘‘(iii) DIGITAL COMMODITY 17
BROKER.— 18
‘‘(I) IN GENERAL.—The term 19
‘digital commodity broker’ means a 20
person that is engaged, as an identifi-21
able business, in— 22
‘‘(aa) soliciting or accepting 23
orders on behalf of another per-24
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son for a digital commodity 1
trade; 2
‘‘(bb) accepting digital com-3
modities from another person for 4
the purpose of entering into dig-5
ital commodity trades; 6
‘‘(cc) arranging digital com-7
modity trades on behalf of an-8
other person; or 9
‘‘(dd) a similar activity, as 10
determined by the Commission. 11
‘‘(II) EXCLUSION.—The term 12
‘digital commodity broker’ does not 13
include a person solely because that 14
person validates digital commodity 15
transactions. 16
‘‘(iv) DIGITAL COMMODITY CUSTO-17
DIAN.—The term ‘digital commodity custo-18
dian’ means a person that, as an identifi-19
able business, maintains possession, cus-20
tody, or control over digital commodities 21
on behalf of another person. 22
‘‘(v) DIGITAL COMMODITY DEALER.— 23
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‘‘(I) IN GENERAL.—The term 1
‘digital commodity dealer’ means a 2
person that— 3
‘‘(aa) has an identifiable 4
business of dealing in a digital 5
commodity as principal for its 6
own account; 7
‘‘(bb) makes a market in a 8
digital commodity; 9
‘‘(cc) holds itself out as a 10
dealer in a digital commodity; 11
‘‘(dd) has as an identifiable 12
business of buying or selling dig-13
ital commodities for conversion 14
into other digital commodities, 15
currency, or other consideration; 16
‘‘(ee) has as an identifiable 17
business of accepting digital com-18
modities from another person (re-19
ferred to in this item as a ‘de-20
positor’) with an obligation to re-21
turn the digital commodities, con-22
sideration linked to the digital 23
commodities, or both to the de-24
positor; or 25
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‘‘(ff) engages in a similar 1
activity, as determined by the 2
Commission. 3
‘‘(II)