Prohibiting Foreign Adversary Interference in Cryptocurrency Markets Act

In this paragraph:

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).

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 digital commodity includes property commonly known as cryptocurrency or virtual currency.

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.

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.

The term digital commodity broker does not include a person solely because that person validates digital commodity transactions.

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.

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.

The term digital commodity dealer does not include a person solely because that person validates digital commodity transactions.

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.

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.

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.

The term digital commodity trading facility means a trading facility that facilitates the execution or trading of digital commodity trades between persons.

The term digital commodity trading facility does not include a person solely because that person validates digital commodity transactions.

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.

The Commission shall not register under this Act a digital commodity platform that is owned (in whole or in part) by a covered entity.

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.