Definitions under the Commodity Exchange Act

(a) In general Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is amended— (1) by redesignating paragraphs (3), (4), (5) through (14), (15), (16) through (34), (35) through (39), and (40) through (51) as paragraphs (5), (6), (11) through (20), (24), (31) through (49), (51) through (55), and (57) through (68), respectively; (2) by inserting after paragraph (2) the following: (3) Associated person of a digital commodity broker (A) In general Except as provided in subparagraph (B), the term associated person of a digital commodity broker means a person who is associated with a digital commodity broker as a partner, officer, employee, or agent (or any person occupying a similar status or performing similar functions) in any capacity that involves— (i) the solicitation or acceptance of an order for the purchase or sale of a digital commodity; or (ii) the supervision of any person engaged in the solicitation or acceptance of an order for the purchase or sale of a digital commodity. (B) Exclusion The term associated person of a digital commodity broker does not include any person associated with a digital commodity broker the functions of which are solely clerical or ministerial. (4) Associated person of a digital commodity dealer (A) In general Except as provided in subparagraph (B), the term associated person of a digital commodity dealer means a person who is associated with a digital commodity dealer as a partner, officer, employee, or agent (or any person occupying a similar status or performing similar functions) in any capacity that involves— (i) the solicitation or acceptance of a contract for the purchase or sale of a digital commodity; or (ii) the supervision of any person engaged in the solicitation or acceptance of a contract for the purchase or sale of a digital commodity. (B) Exclusion The term associated person of a digital commodity dealer does not include any person associated with a digital commodity dealer the functions of which are solely clerical or ministerial.; (3) by inserting after paragraph (6) (as so redesignated) the following: (7) Blockchain The term blockchain means technology— (A) through which data is shared across a network that creates a public blockchain of verified transactions or information among network participants; and (B) in which cryptography is used to link the data described in subparagraph (A)— (i) to maintain the integrity of the blockchain described in that subparagraph; and (ii) to execute other functions. (8) Blockchain application The term blockchain application means any executable software that is deployed to and maintained on a blockchain and composed of a blockchain protocol, including a smart contract or any network of smart contracts, or other similar technology. (9) Blockchain protocol The term blockchain protocol means publicly available source code of a blockchain or blockchain application that is executed by the network participants of a blockchain to facilitate its functioning, or other similar technology. (10) Blockchain system The term blockchain system means any blockchain, blockchain application, or network of blockchain applications, together with its blockchain protocol.; (4) by inserting after paragraph (20) (as so redesignated) the following: (21) Decentralized finance messaging system (A) In general The term decentralized finance messaging system means a software application that provides a user with the ability to create or submit an instruction, communication, or message to a decentralized finance trading protocol. (B) Additional requirements The term decentralized finance messaging system does not include any system that provides any person other than the user with— (i) control over the funds of the user; or (ii) the authority to execute any of the transactions of the user. (22) Decentralized finance trading protocol (A) In general The term decentralized finance trading protocol means a blockchain system through which multiple participants can execute a financial transaction— (i) in accordance with an automated rule or algorithm that is predetermined and nondiscretionary; and (ii) without reliance on a person other than the user to maintain custody or control of any digital assets subject to the financial transaction. (B) Exclusions (i) In general The term decentralized finance trading protocol does not include a blockchain system if— (I) a person or group of persons under common control or acting pursuant to an agreement to act in concert has the authority, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise, to control or materially alter the functionality, operation, or rules of consensus or agreement of the blockchain system; (II) the blockchain system does not operate, execute, and enforce its operations and transactions based solely on pre-established, transparent rules encoded directly within the source code of the blockchain system; or (III) a person or group of persons under common control has the unilateral authority, via operation of the blockchain system, to restrict, censor, or prohibit the use of the blockchain system, including any applicable system-based user activity. (ii) Special rule For purposes of clause (i), a decentralized governance system shall not be considered to be a person or a group of persons under common control or acting pursuant to an agreement to act in concert. (23) Decentralized governance system (A) In general The term decentralized governance system means, with respect to a blockchain system, any transparent, rules-based system permitting persons to form consensus or reach agreement in the development, provision, publication, maintenance, or administration of such blockchain system, in which participation is not limited to, or under the effective control of, any person or group of persons under common control (within the meaning of section 104(b) of the Digital Asset Market Clarity Act of 2026). (B) Relationship of persons to decentralized governance systems With respect to a decentralized governance system, the decentralized governance system and any persons participating in the decentralized governance system shall be treated as separate persons unless such persons are under common control or acting pursuant to an agreement to act in concert. (C) Legal entities for decentralized governance systems (i) In general The term decentralized governance system shall include a legal entity, including a decentralized unincorporated nonprofit association or other entity created pursuant to State law, used to implement the rules-based system described in subparagraph (A), provided that the legal entity does not operate pursuant to centralized management. (ii) Effect of certain delegations For the purposes of this subparagraph, the delegation of ministerial or administrative authority at the direction of the participants in a decentralized governance system shall not be construed to be centralized management.; (5) by inserting after paragraph (24) (as so redesignated) the following: (25) Digital asset The term digital asset means any digital representation of value which is recorded on a cryptographically secured blockchain. (26) Digital asset custodian The term digital asset custodian means a person who, as a regular business, holds, maintains, or safeguards digital assets for others. (27) Digital commodity (A) In general The term digital commodity means any fungible digital asset that can be exclusively possessed and transferred, person to person, without necessary reliance on an intermediary, and is recorded on a blockchain. (B) Network tokens The term digital commodity includes a network token (as defined in section 4B(a) of the Securities Act of 1933) unless the network token is excluded from the definition under clauses (iii) through (vii) of subparagraph (D). (C) Meme coins (i) In general The term digital commodity includes a meme coin unless the meme coin is excluded from the definition under subparagraph (D). (ii) Definition For the purposes of this paragraph, the term meme coin means a digital asset inspired by an internet meme, character, current event, or trend for which the promoter seeks to attract an enthusiastic online community to purchase and engage in trading of the digital asset primarily for speculative purposes. (iii) Exclusions The Commission, by rule or regulation, may exclude from the term meme coin any digital asset or class of digital assets if the Commission determines that the rule or regulation will effectuate the purposes of this Act. (D) Exclusions The term digital commodity does not include any of the following: (i) Security Any security. (ii) Security derivative A digital asset that, based on its terms and other characteristics, is, represents, or is functionally equivalent to an agreement, contract, or transaction that is— (I) a security future (as defined in section 2(a) of the Securities Act of 1933 (15 U.S.C. 77b(a))); (II) a security-based swap; or (III) a put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof) (within the meaning of section 2(a)(1) of the Securities Act of 1933 (15 U.S.C. 77b(a)(1))). (iii) Permitted payment stablecoin A payment stablecoin (as defined in section 2 of the GENIUS Act (Public Law 119–27; 139 Stat. 419)) that is issued by a permitted payment stablecoin issuer (as defined in that section). (iv) Banking deposit (I) A deposit (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)), regardless of the technology used to record the deposit. (II) An account (as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752)), regardless of the technology used to record the account. (v) Commodity A digital asset that references, represents an interest in, or is functionally equivalent to— (I) an agricultural commodity; (II) an excluded commodity, other than a security; or (III) an exempt commodity, other than the digital commodity itself, as shall be further defined by the Commission. (vi) Commodity derivative A digital asset that, based on its terms and other characteristics, is, represents, or is functionally equivalent to an agreement, contract, or transaction that is— (I) a contract of sale of a commodity for future delivery or an option thereon; (II) a security futures product; (III) a swap; (IV) an agreement, contract, or transaction described in subparagraph (C)(i) or (D)(i) of section 2(c)(2); (V) a commodity option authorized under section 4c; or (VI) a leverage transaction authorized under section 19. (vii) Pooled investment vehicle (I) In general A digital asset not described in clause (i) that, based on its terms and other characteristics, is, represents, or is functionally equivalent to an interest in— (aa) a commodity pool; or (bb) a pooled investment vehicle. (II) Pooled investment vehicle defined In this clause, the term pooled investment vehicle means— (aa) any investment company (as defined in section 3(a) of the Investment Company Act of 1940 (15 U.S.C. 80a–3(a))); (bb) any company (as defined in section 2 of such Act (15 U.S.C. 80a–2)) that would be an investment company under section 3(a) of such Act (15 U.S.C. 80a–3(a)), but for the exclusions provided from that definition by section 3(c) of such Act (15 U.S.C. 80a–3(c)), if for purposes of this subclause the company were assumed to be an issuer (as defined in section 2 of such Act (15 U.S.C. 80a–2)); or (cc) any entity or person that is not an investment company but holds or will hold assets other than securities. (viii) Good, collectible, and other noncommodity digital asset (I) In general A digital asset that has value, utility, or significance beyond its mere existence as a digital asset, including the digital equivalent of a tangible or intangible good or a nonfungible token (as defined in section 602(a) of the Digital Asset Market Clarity Act of 2026), such as— (aa) a work of art, a musical composition, a literary work, or other intellectual property; (bb) collectibles, merchandise, virtual land, and in-game or in-application assets; (cc) affinity, rewards, or loyalty points, including airline miles or credit card points; or (dd) rights, licenses, and tickets. (II) Exception The Commission may determine, by rule or regulation or order, that a good, collectible, or other noncommodity digital asset or class of goods, collectibles, or other noncommodity digital assets is traded in such a manner or form that the asset or class of assets should be considered a digital commodity, such as a mass-minted series of items with substantially similar or nearly identical traits that are marketed or sold interchangeably and are primarily speculative in nature. (28) Digital commodity broker (A) In general The term digital commodity broker means any person who— (i) as a regular business, in a digital commodity cash or spot market— (I) (aa) solicits or accepts an order from a person who is not an eligible contract participant for the purchase or sale of a unit of a digital commodity; and (bb) in conjunction with the activity described in item (aa), accepts or maintains control over the funds or other property or assets of the person or the execution of the transaction; (II) solicits or accepts an order from a person who is not an eligible contract participant on behalf of a digital commodity dealer for the purchase or sale of a unit of a digital commodity; or (III) solicits or accepts an order from a person who is not an eligible contract participant for the purchase or sale of a unit of a digital commodity on or subject to the rules of a registered digital commodity exchange; or (ii) is registered with the Commission as a digital commodity broker. (B) Exceptions The term digital commodity broker does not include a person solely because the person— (i) enters into 1 or more digital commodity transactions that are attributable or solely incidental to making, sending, receiving, or facilitating payments, whether involving a payment service provider or on a peer-to-peer basis; or (ii) is a bank (as defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a))) engaging in certain banking activities with respect to a digital commodity in the same or a similar manner as a bank is excluded from the definition of a broker under section 3(a)(4) of that Act (15 U.S.C. 78c(a)(4)), as determined by the Commission. (C) Further definition The Commission, by rule or regulation, may exclude from the term digital commodity broker any person or class of persons if the Commission determines that the rule or regulation is in the public interest and will effectuate the purposes of this Act. (29) Digital commodity dealer (A) In general The term digital commodity dealer means any person who— (i) as a regular business, in a spot or cash digital commodity market, enters into, or offers to enter into, a purchase or sale of a unit of a digital commodity— (I) with a counterparty that is not an eligible contract participant; and (II) not on or through a registered digital commodity exchange or decentralized finance trading protocol; or (ii) is registered with the Commission as a digital commodity dealer. (B) Exception The term digital commodity dealer does not include a person solely because the person— (i) enters into 1 or more digital commodity transactions that are attributable or solely incidental to making, sending, receiving, or facilitating payments, whether involving a payment service provider or on a peer-to-peer basis; or (ii) is a bank (as defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a))) engaging in certain banking activities with respect to a digital commodity in the same or a similar manner as a bank is excluded from the definition of a dealer under section 3(a)(5) of that Act (15 U.S.C. 78c(a)(5)), as determined by the Commission. (C) Further definition The Commission, by rule or regulation, may exclude from the term digital commodity dealer any person or class of persons if the Commission determines that the rule or regulation is in the public interest and will effectuate the purposes of this Act. (30) Digital commodity exchange The term digital commodity exchange means a trading facility that offers or seeks to offer a cash or spot market in at least 1 digital commodity.; (6) by inserting after paragraph (49) (as so redesignated) the following: (50) Mixed digital asset transaction The term mixed digital asset transaction means a transaction in which a digital commodity is traded for a security.; (7) by inserting after paragraph (55) (as so redesignated) the following: (56) Qualified digital asset custodian (A) In general The term qualified digital asset custodian means a digital asset custodian that— (i) holds digital assets on behalf of a person registered under this Act or a customer of a person registered under this Act; and (ii) is in compliance with subparagraphs (B) though (D). (B) Supervision requirement A digital asset custodian is in compliance with this subparagraph if the digital asset custodian is subject to— (i) supervision and examination for custody and safekeeping of digital assets by an appropriate Federal banking agency, the National Credit Union Administration, the Commission, or the Securities and Exchange Commission; or (ii) adequate supervision and appropriate regulation for custody and safekeeping of digital assets by— (I) a State bank supervisor (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)); (II) a State officer, agency, or other entity that has primary regulatory authority over nondepository State trust companies; (III) a State credit union supervisor (as defined in section 6003 of the Anti-Money Laundering Act of 2020 (31 U.S.C. 5311 note; division F of Public Law 116–283)); or (IV) an appropriate foreign governmental authority in the home country of the digital asset custodian. (C) Other requirements A digital asset custodian is in compliance with this subparagraph if the following requirements are met: (i) Not otherwise prohibited The digital asset custodian has not been prohibited by the applicable supervisor described in subparagraph (B) from engaging in an activity with respect to the custody and safekeeping of digital assets. (ii) Information sharing (I) In general The digital asset custodian shares information with the Commission on request and complies with such requirements for periodic sharing of information regarding customer accounts that the digital asset custodian holds on behalf of an entity registered with the Commission as the Commission determines by rule are reasonably necessary to effectuate any of the provisions, or to accomplish any of the purposes, of this Act. (II) Provision of information If the digital asset custodian is subject to regulation and examination by an appropriate Federal banking agency, the digital asset custodian may satisfy any information request described in subclause (I) by providing the Commission with a detailed listing, in writing, of the digital assets of a customer in the custody of, or use by, the digital asset custodian. (D) Rulemaking (i) In general The Commission shall prescribe rules to permit a person registered with the Commission to be a qualified digital asset custodian. (ii) Content In prescribing the rules under clause (i), to be a qualified digital asset custodian, the Commission shall require a person registered with the Commission— (I) to implement requirements consistent with the requirements described in subparagraph (E)(i); (II) to establish sufficient system safeguards; (III) to prevent or mitigate conflicts of interest, as appropriate; and (IV) to establish separate governance arrangements for the custodial function of the entity. (E) Adequate supervision and appropriate regulation (i) In general For purposes of subparagraph (B), the terms adequate supervision and appropriate regulation mean such minimum standards for supervision and regulation as are reasonably necessary to protect the digital assets held by a person registered under this Act, including standards relating to the licensing, examination, and supervisory processes that require the person to, at a minimum— (I) receive a review and evaluation of ownership, character and fitness, conflicts of interest, business model, financial statements, funding resources, and policies and procedures of the digital asset custodian; (II) hold capital sufficient to conduct an orderly wind-down and resolution of the digital asset custodian; (III) protect customer assets; (IV) establish and maintain books and records regarding the business of the digital asset custodian; (V) submit financial statements and audited financial statements to the applicable supervisor described in subparagraph (B); (VI) provide disclosures to the applicable supervisor described in subparagraph (B) regarding actions, proceedings, and other items as determined by the supervisor; (VII) maintain and enforce policies and procedures for compliance with applicable State and Federal laws, including those related to anti-money laundering and cybersecurity; (VIII) establish a business continuity plan to ensure functionality in cases of disruption; and (IX) establish policies and procedures to resolve complaints. (ii) Rulemaking with respect to definitions (I) In general For purposes of this paragraph, the Commission shall, by rule, further define the terms adequate supervision and appropriate regulation as necessary and appropriate for the protection of customers, and consistent with the purposes of this Act. (II) Existing digital asset custodians A State depository institution or a trust company operating as a digital asset custodian before the effective date of a rulemaking under subclause (I) is deemed subject to adequate supervision and appropriate regulation if— (aa) the State depository institution or trust company is expressly permitted by a State bank supervisor to engage in the custody and safekeeping of digital assets; (bb) the State bank supervisor has established licensing, examination, and supervisory processes that require the State depository institution or trust company to, at a minimum, meet the conditions described in subclauses (I) through (IX) of clause (i); and (cc) the State depository institution or trust company is in good standing with its State bank supervisor. (III) Transition period for certain custodians In implementing the rulemaking under subclause (I), the Commission shall provide a transition period of not less than 2 years for any State depository institution or trust company that is deemed subject to adequate supervision and appropriate regulation under subclause (II) on the effective date of the rulemaking. (F) Authority to temporarily suspend standards The Commission may, by rule or order, temporarily suspend, in whole or in part, any requirement imposed under, or any standard referred to in, this section, or any requirement to utilize a qualified digital asset custodian, if the Commission determines that the suspension would be consistent with the public interest and the purposes of this Act.; and (8) in paragraph (57) (as so redesignated)— (A) in subparagraph (E), by striking and at the end; (B) in subparagraph (F), by striking the period at the end and inserting; and; and (C) by adding at the end the following: (G) a digital commodity exchange registered under section 5i.. (b) Conforming amendments (1) Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is amended— (A) in paragraph (32)(A) (as redesignated by subsection (a)(1)), in the matter preceding clause (i), by striking (18)(A) and inserting (33)(A); and (B) in paragraph (33)(A)(vii)(III)(aa) (as redesignated by subsection (a)(1)), by striking (17)(A) and inserting (32)(A). (2) Section 4(c)(1)(A)(i)(I) of the Commodity Exchange Act (7 U.S.C. 6(c)(1)(A)(i)(I)) is amended by striking paragraphs (2), (3), (4), (5), and (7), paragraph (18)(A)(vii)(III), paragraphs (23), (24), (31), (32), (38), (39), (41), (42), (46), (47), (48), and (49) of section 1a and inserting paragraphs (2), (5), (6), (11), (13), (33)(A)(vii)(III), (38), (39), (46), (47), (54), (55), (58), (59), (63), (64), (65), and (66) of section 1a. (3) Section 4q(a)(1) of the Commodity Exchange Act (7 U.S.C. 6q(a)(1)) is amended by striking 1a(9) and inserting 1a(15). (4) Section 4s of the Commodity Exchange Act (7 U.S.C. 6s) is amended— (A) in subsection (f)(1)(D), by striking 1a(47)(A)(v) and inserting 1a(64)(A)(v); and (B) in subsection (h)(5)(A)(i), in the matter preceding subclause (I), by striking 1a(18) of this Act and inserting 1a(33). (5) Section 4t(b)(1)(C) of the Commodity Exchange Act (7 U.S.C. 6t(b)(1)(C)) is amended by striking 1a(47)(A)(v)), and inserting 1a(64)(A)(v)),. (6) Section 5 of the Commodity Exchange Act (7 U.S.C. 7) is amended— (A) in subsection (d)(23), by striking 1a(47)(A)(v) and inserting 1a(64)(A)(v); and (B) in subsection (e)(1), by striking 1a(9) and inserting 1a(15). (7) Section 5b(k)(3)(A) of the Commodity Exchange Act (7 U.S.C. 7a–1(k)(3)(A)) is amended by striking 1a(47)(A)(v)) and inserting 1a(64)(A)(v)). (8) Section 5h(f)(10)(A)(iii) of the Commodity Exchange Act (7 U.S.C. 7b–3(f)(10)(A)(iii)) is amended by striking 1a(47)(A)(v) and inserting 1a(64)(A)(v). (9) Section 21(f)(4)(C) of the Commodity Exchange Act (7 U.S.C. 24a(f)(4)(C)) is amended by striking 1a(48) and inserting 1a(65). (10) Section 5(e) of the Securities Act of 1933 (15 U.S.C. 77e(e)) is amended by striking section 1a(18) of the Commodity Exchange Act (7 U.S.C. 1a(18)) and inserting section 1a of the Commodity Exchange Act (7 U.S.C. 1a). (11) Section 3C(g)(3)(A)(v) of the Securities Exchange Act of 1934 (15 U.S.C. 78c–3(g)(3)(A)(v)) is amended by striking section 1a(10) of the Commodity Exchange Act; and inserting section 1a of the Commodity Exchange Act (7 U.S.C. 1a);. (12) Section 6(g)(5)(B)(i) of the Securities Exchange Act of 1934 (15 U.S.C. 78f(g)(5)(B)(i)) is amended— (A) in subclause (I), by striking section 1a(18)(B)(ii) of the Commodity Exchange Act and inserting subparagraph (B)(ii) of section 1a(33) of the Commodity Exchange Act (7 U.S.C. 1a(33)); and (B) in subclause (II), by striking such section 1a(18)) and inserting that section). (13) Section 15F(h)(5)(A)(i) of the Securities Exchange Act of 1934 (15 U.S.C. 78o–10(h)(5)(A)(i)) is amended, in the matter preceding subclause (I), by striking 1a(18) and inserting 1a(33). (14) Section 712 of the Wall Street Transparency and Accountability Act of 2010 (15 U.S.C. 8302) is amended— (A) in subsection (a)(8), by striking 1a(47)(D) each place it appears and inserting 1a(64)(D); and (B) in subsection (d)(1), by striking 1a(47)(A)(v) each place it appears and inserting 1a(64)(A)(v). (15) Section 752(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (15 U.S.C. 8325(a)) is amended by striking section 1a(39) of the Commodity Exchange Act), and inserting section 1a of the Commodity Exchange Act (7 U.S.C. 1a)),. (16) Section 403 of the Legal Certainty for Bank Products Act of 2000 (7 U.S.C. 27a) is amended— (A) in subsection (a)(2), by striking 1a(47)(A)(v) and inserting 1a(64)(A)(v); and (B) in each of subsections (b)(1) and (c)(2), by striking 1a(47) and inserting 1a(64).