Sponsors (22)
4 meetings related to this legislation
Last progress September 18, 2025 (4 months ago)
Introduced on May 29, 2025 by French Hill
Adds new paragraph (18) to bar Federal reserve banks from offering financial products or services directly to individuals, maintaining accounts for individuals, and issuing a central bank digital currency (or a substantially similar digital asset).
Inserts a new paragraph (11) to prohibit the Board of Governors from testing, studying, developing, creating, or implementing a CBDC; prohibits using a CBDC to implement monetary policy; provides a construction exception for certain privacy-preserving dollar-denominated currency; and defines “central bank digital currency.”
Creates a federal regulatory framework for digital commodities and related trading activity by assigning registration and enforcement roles to the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). It establishes a temporary provisional CFTC registration path for digital commodity exchanges, brokers, and dealers; limits certain insider resales of tokens sold under exempt investment-contract offers; extends SEC oversight and rulemaking for some trading by SEC-registered brokers/dealers and national securities exchanges; requires CFTC registration and customer-protection rules for digital-commodity brokers and dealers; and establishes innovation hubs, a codified LabCFTC, and several one-year studies to improve regulator understanding of blockchain, stablecoins, NFTs, and DeFi. Sets multiple near-term deadlines for agencies to write rules (many within 270 days or one year), creates new reporting, recordkeeping, and disclosure obligations, bans deceptive filings and manipulative trading practices, and preempts some state and local restrictions on compliant digital-asset sales. The bill reshapes market structure, increases compliance burdens for trading platforms and issuers, and clarifies overlapping SEC/CFTC authorities while leaving enforcement overlap intact.
Requires a person acting as a digital commodity exchange, digital commodity broker, or digital commodity dealer to file a statement of provisional registration with the Commodity Futures Trading Commission within 180 days after enactment, unless exempt from registration under Commodity Exchange Act section 5k.
For a non-registered entity that files a provisional registration statement, sets conditions to be considered in compliance, including: being a member of a futures association registered under Commodity Exchange Act section 17 and complying with its rules (including customer disclosure and protection of customer assets rules); submitting and materially updating statements about its digital commodity activities; submitting and updating information required by the section; complying with subsection (c) requirements; and paying all fees and penalties imposed under section 410 of this Act.
For a “registered entity” that files a provisional registration statement, sets conditions to be considered in compliance, including: submitting and materially updating statements about its digital commodity activities; submitting and updating information required by subsection (a) and subsection (b); complying with subsection (c); and paying all fees and penalties imposed under section 410 of this Act.
Defines “registered entity” (for this provisional registration section) as a person designated by the CFTC as a contract market or registered with the CFTC as a swap execution facility.
Requires a person filing a provisional registration statement to disclose general information to the CFTC (unless already known to the CFTC), including management/ownership, financial condition, affiliates, conflicts of interest, addresses (including incorporation, principal place of business, service of process), and states of operation; and operational information like business description and U.S. customer terms of service, account approval process, rulebook/order fulfillment rules, risk management, product listing process, and Bank Secrecy Act compliance policies and procedures.
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
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Who is affected and how:
Digital commodity exchanges, brokers, and dealers: Face new registration requirements (including a provisional path), ongoing membership obligations, minimum capital and custody rules, recordkeeping, and disclosures; noncompliance is prohibited and enforceable by the CFTC.
Issuers and token distributors: Must observe resale restrictions on insiders and comply with SEC reporting/disclosure rules tied to exempt investment-contract sales; some tokens are subject to transition rules based on issuance date and blockchain maturity.
SEC-registered brokers/dealers and national securities exchanges: Could be required to operate under new SEC rules to permit ATS trading in digital commodities and permitted payment stablecoins; will face trading standards and investor-protection obligations.
Investors and customers (retail and institutional): Likely to receive greater disclosure, custody protections, and anti-fraud safeguards, which may reduce certain risks but could also reduce product availability or increase costs from compliance burdens.
Fintech firms, startups, and technology companies: Will confront increased compliance costs, potential registration or business-model adjustments, and new reporting burdens; innovation hubs and studies aim to assist regulators and industry but implementation timelines may impose near-term operational strain.
Federal regulators (CFTC and SEC): Will take on expanded rulewriting, enforcement, coordination, and new offices/hubs; agencies will need staff and resources to meet short statutory deadlines and carry out studies.
State and local regulators: Some state and local restrictions on compliant digital-asset sales may be preempted, reducing local regulatory variability but potentially limiting state-level consumer-protection actions.
Overall effects and tradeoffs:
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