Digital Commodity Intermediaries Act
Sponsored By: Senator John Boozman
In Committee
Summary
A federal registration-first regulatory framework for digital commodities that would require exchanges, brokers, dealers, and custodians to register, meet custody and capital standards, and follow market-integrity and disclosure rules. It would also create a software-developer safe harbor while preserving anti-fraud authority.
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Bill Overview
Analyzed Economic Effects
9 provisions identified: 3 benefits, 0 costs, 6 mixed.
Stronger custody and exchange protections
If enacted, each customer's digital asset held by an exchange would have to be kept with a qualified digital asset custodian and kept separate from the exchange's assets. Exchanges and custodians could not treat customer property as their own or use it except with the customer's express written permission for each use. Customer money could be invested only in specified high-quality assets. Futures commission merchants would also have to use qualified custodians, and some state custodians would get at least 2 years to comply after the rules.
CFTC authority, listings, and portfolio rules
If enacted, the CFTC would have exclusive authority over many interstate cash and spot digital commodity trades, subject to specified exclusions. The CFTC and SEC would have deadlines (usually 18 months) to write joint rules on mixed transactions, delisting, and portfolio margining. The bill requires that exchanges certify listings, disclose token economics and trading data, and that portfolio-margin rules explicitly reference digital commodities and cleared swaps. A savings clause preserves existing rules for instruments already covered by the Commodity Exchange Act.
Developer and node operator safe harbor
If enacted, people who only build, run, or maintain blockchain software and infrastructure would not be treated as covered by this Act just for those activities. The safe harbor would cover compiling or relaying transactions, running nodes or oracles, providing UIs, and similar work. The CFTC would still be able to bring fraud, manipulation, or false-reporting enforcement.
Fees and one-time startup funding
If enacted, the bill would authorize a one-time $150 million appropriation to set up the program until the CFTC starts collecting fees. The CFTC could then charge registration and annual fees to exchanges, brokers, dealers, and qualified custodians to cover oversight costs. Fee rates must be published on a schedule and cannot be passed to customers as a per-transaction fee. The CFTC may continue prior-year fee rates if regular appropriations are delayed.
New duties and capital rules for firms
If enacted, registered digital commodity brokers, dealers, and exchanges would need written risk-management systems, reporting and books-and-records procedures, and must not commit fraud or manipulation. The CFTC would set minimum capital for brokers and dealers. Exchanges would need financial resources sufficient to cover one year of operating costs plus what they owe customers.
New registration and provisional rules
If enacted, the bill would make it illegal to act as a digital commodity broker or dealer unless registered with the Commodity Futures Trading Commission. The CFTC must create an expedited registration process within 180 days, and a 90-day window runs after that for people to register. People who register early get provisional status that ends 270 days after final rules. Starting 30 days after enactment, unregistered platforms must give a clear notice that they are not registered.
Secondary market network token rules
If enacted, starting 18 months after enactment many secondary-market sales of network tokens would be treated as sales of digital commodities. The change would not apply when the sale is an investment contract tied to an ancillary asset offered by the original issuer or underwriter.
Retail advocacy, outreach, and reports
If enacted, the CFTC would create an Office of the Digital Commodity Retail Advocate to help retail customers, do research, and report to Congress. The Advocate must hire an Ombudsman within 180 days. The CFTC would also do customer education and prepare a demographic report on market customers within 180 days to guide outreach to underserved groups.
Timing, rule deadlines, and hiring help
If enacted, most of the bill's new rules and amendments would start 18 months after enactment or later if an agency must finish rulemaking. The CFTC and SEC would generally have 18 months to write required rules. The CFTC Chairman would also have faster hiring authority to bring in technical experts for implementation.
Sponsors & CoSponsors
Sponsor
John Boozman
AR • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov