Digital Commodity Intermediaries Act

This bill would provide for a system of regulation of the offer and sale of digital commodities by the Commodity Futures Trading Commission. At its core, the bill would define digital commodities under the Commodity Exchange Act and give the CFTC exclusive regulatory jurisdiction over cash and spot transactions in those assets when they occur on or with CFTC-registered digital commodity intermediaries. If enacted, the bill would establish a new registration system for digital asset exchanges, brokers, and dealers, with the CFTC required to establish an expedited registration path within 180 days of enactment, and covered firms generally having 90 days to register unless exempt.

The bill includes protections for software developers and core protocol contributors, carving out activities like validating transactions on a network, publishing software, building wallets, and designing blockchain systems from direct CFTC intermediary regulation, though these activities would remain subject to the CFTC's anti-fraud and anti-manipulation authority. The bill also creates an Office of the Digital Commodity Retail Advocate and requires the CFTC to report to Congress on the demographics of digital commodity customers, signaling a focus on retail participation and consumer protection. The CFTC, in coordination with the SEC, would be required to complete a suite of rules within 18 months of enactment, with the Act's effective date tied to that timetable.