Vote Smart's Synopsis:

Vote to pass a bill that establishes a regulatory framework for digital assets.

Highlights:

• Establishes a regulatory framework for digital assets (Title II-VI, Sec. 201-608).

• Requires the Commodity Futures Trading Commission (CFTC) to regulate a digital asset as a commodity if the blockchain, or digital ledger, on which it runs is functional and decentralized (Title II-VI, Sec. 201-608).

• Classifies a blockchain as decentralized if, among other requirements, no individual has unilateral authority to control the blockchain or its usage, and no issuer or affiliated person has control of 20% or more of the digital asset or the voting power of the digital asset (Title II-VI, Sec. 201-608).

• Authorizes the CFTC with exclusive regulatory authority over cash or spot markets for digital commodities (Title II-VI, Sec. 201-608 ).

• Requires the Securities and Exchange Commission (SEC) to regulate a digital asset as a security if its associated blockchain is functional but not decentralized (Title II-VI, Sec. 201-608).

• Establishes certain exceptions to SEC regulation for digital assets that limit annual sales, restrict nonaccredited investor access, and satisfy disclosure and compliance requirements (Title II-VI, Sec. 201-608).

• Establishes requirements for primary and secondary market transactions (Sec. ).

• Requires the CFTC and SEC jointly issue rules to define terms and exempt dually registered exchanges from duplicative rules (Title II-VI, Sec. 201-608).

Full Bill Text

Full Bill Text