Virtual Currency Consumer Protection Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 922 To promote fair and transparent virtual currency markets by examining the potential for price manipulation. IN THE HOUSE OF REPRESENTATIVES JANUARY 30, 2019 Mr. SOTO (for himself, Mr. BUDD, Mr. DAVIDSON of Ohio, and Mrs. WATSON COLEMAN) introduced the following bill; which was referred to the Com- mittee on Financial Services, and in addition to the Committee on Agri- culture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdic- tion of the committee concerned A BILL To promote fair and transparent virtual currency markets by examining the potential for price manipulation. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Virtual Currency Con- 4 sumer Protection Act of 2019’’. 5 SEC. 2. SENSE OF THE CONGRESS. 6 It is the sense of Congress that virtual currency could 7 have a significant effect on the economy, and regulation 8 VerDate Sep 11 2014 23:17 Feb 11, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H922.IH H922 kjohnson on DSK79L0C42 with BILLS 2 •HR 922 IH of them may be important to protect investors, deter bad 1 actors, create market certainty, and ensure American com- 2 petitiveness in an evolving global marketplace. 3 SEC. 3. STUDY AND REPORT ON THE PREVENTION OF VIR- 4 TUAL CURRENCY PRICE MANIPULATION. 5 (a) IN GENERAL.—Not later than one year after the 6 date of the enactment of this Act, the Chairman of the 7 Commodity Futures Trading Commission, in consultation 8 with the heads of the Securities and Exchange Commis- 9 sion and other relevant Federal agencies (as determined 10 by the Chairman of the Commodity Futures Trading Com- 11 mission), shall submit to the Committees on Agriculture 12 and on Financial Services of the House of Representatives 13 and the Committees on Agriculture, Nutrition, and For- 14 estry and on Banking, Housing, and Urban Affairs of the 15 Senate a report to promote fair and transparent virtual 16 currency markets by examining the potential for price ma- 17 nipulation. The report shall include the following: 18 (1) A brief description of— 19 (A) methods by which persons could ma- 20 nipulate the price of virtual currencies; 21 (B) which types of virtual currency, if any, 22 are more susceptible to being manipulated; and 23 VerDate Sep 11 2014 23:17 Feb 11, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H922.IH H922 kjohnson on DSK79L0C42 with BILLS 3 •HR 922 IH (C) the effects on, and particular harm to, 1 investors if price manipulation of virtual cur- 2 rencies occurs. 3 (2) An analysis of the extent to which the regu- 4 latory authority of the Commodity Futures Trading 5 Commission and other relevant Federal agencies al- 6 lows for— 7 (A) market surveillance of virtual cur- 8 rencies for signs of manipulation; and 9 (B) enforcement of Federal regulations 10 against persons involved in any such manipula- 11 tion. 12 (3) Recommendations for any legislative 13 changes needed to improve the ability of the Com- 14 modity Futures Trading Commission and other rel- 15 evant Federal agencies— 16 (A) to carry out the monitoring and en- 17 forcement activities described in paragraph (2); 18 (B) to prevent price manipulations of vir- 19 tual currencies; and 20 (C) to protect virtual currency investors 21 from price manipulation. 22 (b) VIRTUAL CURRENCY DEFINED.—In this Act, the 23 term ‘‘virtual currency’’ means a digital representation of 24 value that does not have legal tender status and that func- 25 VerDate Sep 11 2014 23:17 Feb 11, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H922.IH H922 kjohnson on DSK79L0C42 with BILLS 4 •HR 922 IH tions as a medium of exchange, a unit of account, or a 1 store of value. 2 Æ VerDate Sep 11 2014 23:17 Feb 11, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H922.IH H922 kjohnson on DSK79L0C42 with BILLS