# 119-s-5140: Digital Equities and No Automatic Disqualifications Act

119-s-5140, Digital Equities and No Automatic Disqualifications Act, is a 119th Congress bill sponsored by Sen. Justice, James C. [R-WV] (R-WV); status introduced; PRIA reads it as touching household money (as of 2026-08-12).

- Canonical: https://policyrisk.com/legislation/119-s-5140
- As of: 2026-08-12
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-5140
- Congress: 119
- Title: Digital Equities and No Automatic Disqualifications Act
- Status: introduced
- Introduced: 2026-07-27
- Sponsor: Sen. Justice, James C. [R-WV] (R-WV)
- Cosponsors: 0
- Policy area: Finance and Financial Sector
- Touches household money: yes
- Last recorded action: 2026-08-12

## Summary

**Prevents automatic regulatory disqualifications for entities that are not natural persons unless the SEC or CFTC affirmatively decide to apply them.** The bill would require the Securities and Exchange Commission and the Commodity Futures Trading Commission to complete a joint rulemaking not later than 1 year after enactment to set a uniform process for applying disqualifying provisions. - Firms and funds that are not natural persons would not face automatic bans. They would have to give written notice to the relevant regulator within 30 calendar days after a triggering event. - The SEC and CFTC would have to issue consistent rules within 1 year that include confidential procedures when needed, require consideration of mitigating factors, and limit application so a disqualification only applies to the same legal entity and to the business line actually affected. - Agencies could apply a disqualifying provision only if doing so is necessary and appropriate in the public interest and for the protection of investors, creating a formal test for when disqualifications are used.

## Provisions PRIA read

- Protect companies from automatic disqualification: benefit, medium. If enacted, the bill would stop automatic disqualifications from applying to non-natural persons (companies, funds, and partnerships) unless a regulator first decides to apply the rule to the specific matter. The Securities and Exchange Commission and the Commodity Futures Trading Commission would…

## Related bills

- 119-s-2120: Older Americans Act Reauthorization Act of 2025
- 119-s-4952: Protecting American Taxpayers Act
- 119-s-4378: Protecting American Taxpayers Act
- 119-s-5117: Senior Chatbot Protection Act of 2026
- 119-s-3659: SECURE Minerals Act of 2026
- 119-s-1748: Kids Online Safety Act

## Sources
- [119-s-5140 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/5140)

## Related
- [119-s-2120: Older Americans Act Reauthorization Act of 2025](https://policyrisk.com/legislation/119-s-2120)
- [119-s-4952: Protecting American Taxpayers Act](https://policyrisk.com/legislation/119-s-4952)
- [119-s-4378: Protecting American Taxpayers Act](https://policyrisk.com/legislation/119-s-4378)
- [119-s-5117: Senior Chatbot Protection Act of 2026](https://policyrisk.com/legislation/119-s-5117)
- [119-s-3659: SECURE Minerals Act of 2026](https://policyrisk.com/legislation/119-s-3659)
- [119-s-1748: Kids Online Safety Act](https://policyrisk.com/legislation/119-s-1748)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-5140 (as of 2026-08-12).