Bill Summary
This legislation is proposing amendments to the Commodity Exchange Act in regards to the regulation of virtual currencies. It defines virtual currency as a digital representation of value that is not recognized as legal tender but can function as a medium of exchange, unit of account, or store of value. It also lays out specific requirements for Boards of Trade and Swap Execution Facilities when dealing with contracts or swaps referencing virtual currencies. These requirements include having access to all trade and trader data on the spot market platform and being able to provide this data to the Commission upon request.
Possible Impacts
1. For individuals who use virtual currencies as a medium of exchange, this legislation may affect their ability to participate in certain markets or trading platforms. They may have to provide their data to the Commission upon request, which could potentially infringe on their privacy.
2. For companies that offer virtual currency trading services, this legislation could require them to have unconstrained access to all trade and trader data of their clients. This may increase the regulatory burden on these companies and could potentially limit their business operations.
3. If individuals or companies fail to comply with the requirements set by this legislation, they may face penalties or legal consequences. This could impact their financial stability and reputation.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4234 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 4234
To amend the Commodity Exchange Act with respect to the regulation of
virtual currencies.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 6, 2019
Mr. Sean Patrick Maloney of New York introduced the following bill;
which was referred to the Committee on Agriculture
_______________________________________________________________________
A BILL
To amend the Commodity Exchange Act with respect to the regulation of
virtual currencies.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. VIRTUAL CURRENCY.
(a) Definition.--Section 1a of the Commodity Exchange Act (7 U.S.C.
1a) is amended by adding at the end the following:
``(52) Virtual currency.--The term `virtual currency' means
a digital representation of value that does not have legal
tender status and that functions as a medium of exchange, a
unit of account, or a store of value.''.
(b) Requirements Applicable to Boards of Trade.--Section 5(d)(4) of
such Act (7 U.S.C. 7(d)(4)) is amended--
(1) by striking all that precedes ``board of trade'' and
inserting the following:
``(4) Prevention of market disruption.--
``(A) In general.--The'';
(2) by redesignating each of subparagraphs (A) and (B) as
clauses (i) and (ii), respectively, and moving each of such
provisions 2 ems to the right; and
(3) by adding after and below the end the following:
``(B) Virtual currency.--Notwithstanding paragraph
(1)(B), with regard to a contract on the contract
market that references a virtual currency available on
a spot market platform, in order to fully comply with
this paragraph, the board of trade must have--
``(i) unconstrained access to all trade and
trader data regarding the virtual currency on
the spot market platform; and
``(ii) the capability to provide the data
to the Commission on request.''.
(c) Requirements Applicable To Swap Execution Facilities.--Section
5h(f)(4) of such Act (7 U.S.C. 7b-3(f)(4)) is amended--
(1) by striking all that precedes ``swap execution facility
shall'' and inserting the following:
``(4) Monitoring of trading and trade processing.--
``(A) In general.--The'';
(2) by redesignating each of clauses (i) and (ii) of
subparagraph (A) as subclauses (I) and (II), respectively, and
moving each of such provisions 2 ems to the right;
(3) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively, and moving each of such provisions
2 ems to the right; and
(4) by adding after and below the end the following:
``(B) Virtual currency.--Notwithstanding paragraph
(1)(B), with regard to a swap on the swap execution
facility that references a virtual currency available
on a spot market platform, in order to fully comply
with this paragraph, the board of trade must have--
``(i) unconstrained access to all trade and
trader data regarding the virtual currency on
the spot market platform; and
``(ii) the capability to provide the data
to the Commission on request.''.
<all>