S. 1223

119th CONGRESS 1st Session

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 · Sponsor: Mr. Tuberville · Committee: Committee on Agriculture, Nutrition, and Forestry

Table of contents

• S. 1223
  • SEC. 1. Short title
  • SEC. 2. Prohibition on registration of foreign adversary-affiliated digital commodity platforms

SEC. 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 () is amended by adding at the end the following: 7 U.S.C. 6(b)
  • (3) Prohibition on registration of foreign adversary-affiliated digital commodity platforms
    • (A) Definitions
      • In this paragraph:
        • (i) The term covered entity means—
        • 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
        • any subsidiary owned (in whole or in part) or operated by an entity described in subclause (I).
      • (ii) Digital commodity
        • 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.
        • The term includes property commonly known as or . cryptocurrency virtual currency digital commodity
        • The term does not include— digital commodity
        • an interest in a physical commodity;
        • a security;
        • a digital form of currency backed by the full faith and credit of the United States; or
        • any other instrument that the Commission determines not to be a digital commodity.
      • (iii) Digital commodity broker
        • The term digital commodity broker means a person that is engaged, as an identifiable business, in—
        • soliciting or accepting orders on behalf of another person for a digital commodity trade;
        • accepting digital commodities from another person for the purpose of entering into digital commodity trades;
        • arranging digital commodity trades on behalf of another person; or
        • a similar activity, as determined by the Commission.
        • The term does not include a person solely because that person validates digital commodity transactions. digital commodity broker
        • (iv) 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
        • The term digital commodity dealer means a person that—
        • has an identifiable business of dealing in a digital commodity as principal for its own account;
        • makes a market in a digital commodity;
        • holds itself out as a dealer in a digital commodity;
        • has as an identifiable business of buying or selling digital commodities for conversion into other digital commodities, currency, or other consideration;
        • has as an identifiable business of accepting digital commodities from another person (referred to in this item as a ) with an obligation to return to the depositor the digital commodities, consideration linked to the digital commodities, or both; or depositor
        • engages in a similar activity, as determined by the Commission.
        • The term does not include a person solely because that person validates digital commodity transactions. digital commodity dealer
        • (vi) The term digital commodity platform means a person that is 1 or more of the following:
        • A digital commodity broker.
        • A digital commodity custodian.
        • A digital commodity dealer.
        • A digital commodity trading facility.
      • (vii) Digital commodity trade
        • The term digital commodity trade means a purchase or sale of a digital commodity in exchange for—
        • another digital commodity; or
        • any other consideration.
        • The term includes— digital commodity trade
        • an offer to enter into a purchase or sale described in subclause (I); and
        • 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
        • The term digital commodity trading facility means a trading facility that facilitates the execution or trading of digital commodity trades between persons.
        • The term does not include a person solely because that person validates digital commodity transactions. digital commodity trading facility
        • (ix) The term foreign adversary means—
        • the People’s Republic of China, including the Hong Kong Special Administrative Region and the Macao Special Administrative Region;
        • the Republic of Cuba;
        • the Islamic Republic of Iran;
        • the Democratic People’s Republic of Korea;
        • the Russian Federation; and
        • 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.