U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 923 To promote United States competitiveness in the evolving global virtual currency marketplace. IN THE HOUSE OF REPRESENTATIVES JANUARY 30, 2019 Mr. SOTO (for himself, Mr. BUDD, Mr. DAVIDSON of Ohio, and Mr. EMMER) introduced the following bill; which was referred to the Committee on Fi- nancial Services, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the com- mittee concerned A BILL To promote United States competitiveness in the evolving global virtual currency marketplace. 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 ‘‘U.S. Virtual Currency 4 Market and Regulatory Competitiveness Act of 2019’’. 5 SEC. 2. SENSE OF 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\H923.IH H923 kjohnson on DSK79L0C42 with BILLS 2 •HR 923 IH of virtual currency may be important to protect investors, 1 deter bad actors, create market certainty, and ensure 2 American competitiveness in an evolving global market- 3 place. 4 SEC. 3. STUDY AND REPORT ON PROMOTING AMERICAN 5 COMPETITIVENESS IN EVOLVING GLOBAL 6 MARKETS. 7 (a) IN GENERAL.—Not later than one year after the 8 date of the enactment of this Act, the Chairman of the 9 Commodity Futures Trading Commission, in consultation 10 with the heads of the Securities and Exchange Commis- 11 sion and other relevant Federal agencies (as determined 12 by the Chairman of the Commodity Futures Trading Com- 13 mission), shall submit to the Committees on Agriculture 14 and on Financial Services of the House of Representatives 15 and the Committees on Agriculture, Nutrition, and For- 16 estry and on Banking, Housing, and Urban Affairs of the 17 Senate a report on the state of virtual markets and ways 18 to promote American competitiveness. The report shall in- 19 clude the following: 20 (1) A brief description of— 21 (A) the regulation of the United States vir- 22 tual currency industry, as a comparative study 23 of the regulation of such industry in foreign 24 VerDate Sep 11 2014 23:17 Feb 11, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H923.IH H923 kjohnson on DSK79L0C42 with BILLS 3 •HR 923 IH countries, to demonstrate competitiveness in a 1 global marketplace; and 2 (B) the potential benefits of virtual cur- 3 rency and blockchain technology in the United 4 States commodities market. 5 (2) Recommendations for any legislative 6 changes, if determined appropriate, needed to im- 7 prove the ability of the Commodity Futures Trading 8 Commission and other relevant Federal agencies— 9 (A) to promote competitiveness of the 10 United States and United States businesses in 11 this industry; 12 (B) to encourage the growth of adoption of 13 virtual currencies in segments of the commodity 14 market that could benefit from virtual cur- 15 rencies and access to transparent markets in 16 such currencies; 17 (C) to clarify the virtual currencies that 18 qualify as commodities for both existing cur- 19 rencies and ones that may be created in the fu- 20 ture; and 21 (D) to provide a new, optional regulatory 22 structure for virtual currency spot markets 23 (commonly referred to as exchanges) that in- 24 cludes Federal licensure, market supervision, 25 VerDate Sep 11 2014 23:17 Feb 11, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H923.IH H923 kjohnson on DSK79L0C42 with BILLS 4 •HR 923 IH consumer protections, and preemption of State 1 money transmission licensing obligations for 2 participating in spot markets. 3 (3) An analysis of the feasibility, cost, and po- 4 tential benefit of the new regulatory structure de- 5 scribed in subparagraphs (C) and (D) of paragraph 6 (2). 7 (b) VIRTUAL CURRENCY DEFINED.—In this Act, the 8 term ‘‘virtual currency’’ means a digital representation of 9 value that does not have legal tender status and that func- 10 tions as a medium of exchange, a unit of account, or a 11 store of value. 12 Æ VerDate Sep 11 2014 23:17 Feb 11, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H923.IH H923 kjohnson on DSK79L0C42 with BILLS