S. 1223

119 S1223 IS: Prohibiting Foreign Adversary Interference in Cryptocurrency Markets Act
 U.S. Senate
 2025-04-01
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS  1st Session  S. 1223  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.
1.
Short title
This Act may be cited as the   Prohibiting Foreign Adversary Interference in Cryptocurrency Markets Act  .
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 Nicolás 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.
 .