Digital Asset Market Clarity Act

(a) Establishment. The Commodity Futures Trading Commission and the Commission (referred to collectively in this section as the Commissions) shall jointly establish the Joint Advisory Committee on Digital Assets (referred to in this section as the Committee).

(b) Purpose

(1) In general. The Committee shall—

(A) provide the Commissions with official findings and nonbinding recommendations on—

(i) the rules, regulations, oversight, and other matters of the Commissions relating to digital assets, including with respect to regulatory harmonization between the Commissions;

(ii) how to further the regulatory harmonization of digital asset policy between the Commissions or areas in which that harmonization should occur; and

(iii) the implementation by the Commissions of this Act, and the amendments made by this Act, including with respect to regulatory harmonization between the Commissions, memoranda of understanding, and the CFTC-SEC Micro-Innovation Sandbox established pursuant to section 501;

(B) develop and share objective methods and best practices for evaluating digital asset networks and activities, including, as appropriate, technical features, economic design, and implications for market integrity, investor protection, and operational resilience; and

(C) issue nonbinding recommendations to assist in resolving disputes between the Commissions.

(c) Review by the commissions. Each of the Commissions shall—

(1) review the findings and nonbinding recommendations provided under subsection (b)(1)(A);

(2) promptly publish a public statement each time the Committee submits a finding or nonbinding recommendation to the applicable Commission under subsection (b)(1)(A) that—

(A) assesses the finding or recommendation; and

(B) if applicable, discloses the action or decision not to take action; and

(3) provide the Committee with a formal written response not later than 90 days after the date of submission of a finding or nonbinding recommendation under subsection (b)(1)(A).

(d) Membership and leadership

(1) Non-federal members; size and composition

(A) In general. The Commissions shall appoint to the Committee not more than 14 nongovernmental voting members who—

(i) represent a broad spectrum of interests, equally divided between the Commissions; and

(ii) serve at the pleasure of the appointing Commission.

(B) Specific members. For each of the Commissions, the appointees under subparagraph (A) of this paragraph shall include—

(i) 2 individuals described in paragraph (2)(A);

(ii) 2 individuals described in paragraph (2)(B);

(iii) 1 individual described in paragraph (2)(C);

(iv) 2 individuals described in paragraph (2)(D); and

(v) 1 individual described in paragraph (2)(E).

(2) Members described. A member described in this paragraph is—

(A) an individual who is employed by, or is a related person with respect to, a digital asset market participant;

(B) a person registered with either of the Commissions and that is engaged in activities relating to digital assets;

(C) an individual engaged in academic research relating to digital assets;

(D) a retail user of digital assets; and

(E) a State securities regulator.

(3) NIST. The Director of the National Institute of Standards and Technology, or the designee of the Director, shall serve in an advisory capacity as a nonvoting, ex officio member of the Committee, and shall not be excluded from any proceedings, meetings, discussions, or deliberations of the Committee, except that the chair of the Committee, upon an affirmative vote of the Committee, may exclude the Director or the designee from any proceedings, meetings, discussions, or deliberations of the Committee when necessary to safeguard and promote the free exchange of confidential information.

(4) Co-designated Federal officers; commissioner support

(A) Co-designated Federal officers

(i) In general. Each Commission shall designate 1 Federal officer to serve as a co-designated Federal officer of the Committee.

(ii) Shared duties. The duties required by section 1009(e) of title 5, United States Code, to be carried out by a designated officer or employee of the Federal Government with respect to the Committee shall be shared by the Federal officers of the Committee who are co-designated under clause (i).

(B) Commissioner support

(i) In general. Commissioners of the Commissions may be supported by officers or employees of the respective Commission who may prepare or transmit materials, coordinate with agency staff, liaise with Committee leadership, propose agenda items, gather information, and otherwise support the participation of that commissioner in Committee business, in an ex officio, nonvoting capacity.

(ii) Rule of construction. An officer or employee described in clause (i) shall not be considered to be a member of the Committee for purposes of chapter 10 of title 5, United States Code.

(C) Information sharing. The co-designated Federal officers under subparagraph (A) and the officers or employees of the respective Commissions providing support under subparagraph (B) shall share information about digital asset activities under this Act, in accordance with section 902, including with regard to preventing insider trading.

(5) Committee leadership. The members of the Committee shall elect, from among the membership of the Committee, a secretary and an assistant secretary.

(6) Rotating chair. The chair and vice chair of the Committee shall rotate annually between the Commissions, with the Commission designating the chair in even-numbered calendar years, the Commodity Futures Trading Commission designating the chair in odd-numbered calendar years, the Commission designating the vice chair in odd-numbered calendar years, and the Commodity Futures Trading Commission designating the vice chair in even-numbered calendar years.

(7) Terms; vacancies; holdover

(A) In general. Each non-Federal member of the Committee shall be appointed for a term of 4 years.

(B) Service until new appointment. A member of the Committee may continue to serve after the expiration of the term of the member until a successor is appointed.

(C) Vacancies. A vacancy with respect to membership in the Committee shall be filled only for the remainder of the applicable term.

(D) Reappointment. A member of the Committee may be reappointed.

(8) Status of members. A member of the Committee appointed under paragraph (1) shall not be deemed to be an employee or agent of either of the Commissions solely by reason of membership on the Committee.

(e) No compensation for committee members

(1) Non-federal members. All Committee members appointed under subsection (d)(1) shall—

(A) serve without compensation; and

(B) while away from the home or regular place of business of the member in the performance of services for the Committee, be allowed travel expenses, including per diem in lieu of subsistence, in the same manner as persons employed intermittently in Government service are allowed expenses under section 5703 of title 5, United States Code.

(2) No compensation for co-designated federal officers. The Federal officers co-designated under subsection (d)(4)(A) shall serve without compensation in addition to that received for their services as officers or employees of the United States.

(f) Frequency of meetings. The Committee shall meet—

(1) not less frequently than twice annually; and

(2) at such other times as either of the Commissions may request.

(g) Procedures; advisory nature

(1) In general. The Committee shall operate pursuant to chapter 10 of title 5, United States Code, except as otherwise expressly provided by this section.

(2) Advisory nature of recommendations. The recommendations of the Committee are advisory in nature, shall not create any legal rights or obligations, and shall not limit or delay the independent authority of either of the Commissions.

(h) Time limits. The Commissions shall—

(1) not later than 90 days after the date of enactment of this Act, adopt a joint charter for the Committee;

(2) not later than 120 days after the date of enactment of this Act, make the appointments required under subsection (d)(1); and

(3) not later than 180 days after the date of enactment of this Act, hold the initial meeting of the Committee.

(i) Funding. Subject to the availability of funds, the Commissions shall jointly fund the Committee.

(j) Duration and renewal

(1) Initial period. The Committee shall remain in effect for 10 years beginning on the date of enactment of this Act.

(2) Renewal thereafter. At the conclusion of the 10-year period described in paragraph (1)—

(A) the Committee shall be subject to subsections (a) and (b) of section 1013 of title 5, United States Code; and

(B) the Commissions may renew the Committee for successive 2-year periods by publishing a notice in the Federal Register, consistent with chapter 10 of title 5, United States Code.