Digital Commodity Intermediaries Act

This bill gives the Commodity Futures Trading Commission (CFTC) authority to regulate digital commodity intermediaries, including exchanges, brokers, and dealers, by creating a new registration and oversight system. It defines key terms, requires rulemaking, and sets deadlines for implementation.

Title I, Definitions; Rulemaking: Amends the Commodity Exchange Act to add definitions for digital commodity intermediaries and related terms. The CFTC must issue rules further defining these terms and, jointly with the SEC, exempt dually registered persons from duplicative rules. An expedited registration process must be adopted within 180 days, and persons registered under it will have provisional status. The bill does not affect existing futures, swaps, or other regulated transactions, and prohibits spot digital commodity entities from engaging in certain activities. The CFTC must consult with foreign regulators and may enter information-sharing arrangements. Rules must be issued within 18 months, and the Act generally takes effect 18 months after enactment.

Title II, Registration for Digital Commodity Intermediaries at the Commodity Futures Trading Commission: Gives the CFTC jurisdiction over digital commodity transactions, with savings for existing regulated products. Requires futures commission merchants to use qualified digital asset custodians for digital assets. Sets trading certification and approval rules for digital commodity contracts. Requires trading facilities offering cash or spot markets in digital commodities to register as digital commodity exchanges, with exemptions for single-state or de minimis activity. Requires digital commodity brokers and dealers to register, with exemptions for de minimis activity, single-state customers, or existing futures commission merchants. Requires associated persons of such brokers and dealers to register. Protects software developers from being regulated based on activities like compiling transactions, providing computational work, or developing blockchain systems. Allows portfolio margining for digital commodities and cleared swaps. Clarifies that certain property of a commodity broker's estate is included in customer property. Authorizes the CFTC to collect fees from registered entities to cover oversight costs. Establishes an Office of the Digital Commodity Retail Advocate within the CFTC to represent retail participants. Requires the CFTC to report on the demographics of digital commodity market customers and propose outreach to historically underserved customers.