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