II
119THCONGRESS
1
STSESSION 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
APRIL1 (legislative day, MARCH31), 2025
Mr. T
UBERVILLE(for himself, Mrs. HYDE-SMITH, and Mr. JUSTICE) intro-
duced the following bill; which was read twice and referred to the Com-
mittee 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) P
ROHIBITION ON REGISTRATION OF FOR -7
EIGN ADVERSARY-AFFILIATED DIGITAL COMMODITY 8
PLATFORMS.— 9
‘‘(A) D
EFINITIONS.—In this paragraph: 10
‘‘(i) C
OVERED 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; and 16
‘‘(II) any subsidiary owned (in 17
whole or in part) or operated by an 18
entity described in subclause (I). 19
‘‘(ii) D
IGITAL COMMODITY.— 20
‘‘(I) I
N 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’ 3
or ‘virtual currency’. 4
‘‘(III) E
XCLUSIONS.—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) D
IGITAL COMMODITY 17
BROKER.— 18
‘‘(I) I
N 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) E
XCLUSION.—The term 12
‘digital commodity broker’ does not 13
include a person solely because that 14
person validates digital commodity 15
transactions. 16
‘‘(iv) D
IGITAL 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) D
IGITAL 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 to the depositor the digital 22
commodities, consideration linked 23
to the digital commodities, or 24
both; or 25
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‘‘(ff) engages in a similar 1
activity, as determined by the 2
Commission. 3
‘‘(II) E
XCLUSION.—The term 4
‘digital commodity dealer’ does not in-5
clude a person solely because that per-6
son validates digital commodity trans-7
actions. 8
‘‘(vi) D
IGITAL COMMODITY PLAT -9
FORM.—The term ‘digital commodity plat-10
form’ means a person that is 1 or more of 11
the following: 12
‘‘(I) A digital commodity broker. 13
‘‘(II) A digital commodity custo-14
dian. 15
‘‘(III) A digital commodity deal-16
er. 17
‘‘(IV) A digital commodity trad-18
ing facility. 19
‘‘(vii) D
IGITAL COMMODITY TRADE .— 20
‘‘(I) I
N GENERAL.—The term 21
‘digital commodity trade’ means a 22
purchase or sale of a digital com-23
modity in exchange for— 24
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‘‘(aa) another digital com-1
modity; or 2
‘‘(bb) any other consider-3
ation. 4
‘‘(II) I
NCLUSIONS.—The term 5
‘digital commodity trade’ includes— 6
‘‘(aa) an offer to enter into 7
a purchase or sale described in 8
subclause (I); and 9
‘‘(bb) a loan of a digital 10
commodity, an offer to enter into 11
a loan of a digital commodity, or 12
a similar activity, as determined 13
by the Commission. 14
‘‘(viii) D
IGITAL COMMODITY TRADING 15
FACILITY.— 16
‘‘(I) I
N GENERAL.—The term 17
‘digital commodity trading facility’ 18
means a trading facility that facili-19
tates the execution or trading of dig-20
ital commodity trades between per-21
sons. 22
‘‘(II) E
XCLUSION.—The term 23
‘digital commodity trading facility’ 24
does not include a person solely be-25
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cause that person validates digital 1
commodity transactions. 2
‘‘(ix) F
OREIGN ADVERSARY .—The 3
term ‘foreign adversary’ means— 4
‘‘(I) the People’s Republic of 5
China, including the Hong Kong Spe-6
cial Administrative Region and the 7
Macao Special Administrative Region; 8
‘‘(II) the Republic of Cuba; 9
‘‘(III) the Islamic Republic of 10
Iran; 11
‘‘(IV) the Democratic People’s 12
Republic of Korea; 13
‘‘(V) the Russian Federation; 14
and 15
‘‘(VI) the Bolivarian Republic of 16
Venezuela under the regime of Nicola´s 17
Maduro Moros. 18
‘‘(B) P
ROHIBITION ON REGISTRATION .— 19
The Commission shall not register under this 20
Act a digital commodity platform that is owned 21
(in whole or in part) by a covered entity. 22
‘‘(C) R
EVOCATION OF REGISTRATION .— 23
The Commission shall revoke the registration 24
under this Act of a digital commodity platform 25
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if a covered entity acquires all or any part of 1
the ownership of the digital commodity plat-2
form.’’. 3
Æ
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