Prohibiting Foreign Adversary Interference in Cryptocurrency Markets Act
This bill would tighten oversight of the U.S. digital-asset (cryptocurrency) markets by barring the Commodity Futures Trading Commission (CFTC) from registering any digital commodity platform that is owned or operated by an entity organized or located in a designated “foreign adversary.” The foreign-adversary list in the bill includes China, Cuba, Iran, North Korea, Russia, and Venezuela under Maduro. The proposal defines several categories of digital-commodity actors (brokers, custodians, dealers, and trading facilities) and would apply the registration prohibition to platforms owned in whole or in part by a covered entity. It also requires revocation of existing registrations if ownership shifts to such an entity. In short, the bill aims to shield U.S. digital-asset markets from interference or influence by governments deemed to be foreign adversaries.
Key Points
- 1Prohibits registration of digital-commodity platforms owned or operated by a “covered entity” affiliated with a foreign adversary.
- 2Defines a broad set of terms to cover the digital-asset market: digital commodities (including cryptocurrency), digital-commodity platforms (brokers, custodians, dealers, trading facilities), and specific roles within platforms.
- 3Establishes the list of foreign adversaries (China, Cuba, Iran, North Korea, Russia, and Venezuela under Maduro) and applies the ban to entities from those jurisdictions.
- 4Requires revocation of a platform’s registration if a covered entity acquires any ownership interest.
- 5Carves out certain exclusions in definitions (e.g., securities, physical-commodity interests, digital forms of U.S.-backed currency) and clarifies that validators that merely confirm transactions are not “digital-commodity brokers/dealers” for purposes of the ban.