US SB4064

Establishes CFTC as the exclusive regulator of digital commodity markets, defining "digital commodity" as fungible digital assets on cryptographically secured blockchains, explicitly including meme coins and network tokens while excluding securities, stablecoins, banking deposits, commodity derivatives, and collectibles like NFTs

Creates three new registration categories requiring CFTC registration: digital commodity exchanges (trading facilities), digital commodity brokers (who solicit/accept orders from retail customers), and digital commodity dealers (who enter transactions with retail customers outside exchanges)

Requires all registered digital commodity brokers and dealers to become members of a registered futures association, meet minimum capital requirements addressing digital commodity trading risks, and maintain daily trading records including recorded communications

Mandates digital commodity exchanges comply with 23 core principles covering trade execution, market manipulation prevention, system safeguards, financial resources, customer asset protection, cybersecurity, and listing standards for non-manipulable assets

Establishes strict customer asset protection requirements, including segregation of customer funds, prohibition on commingling with proprietary assets, and detailed insolvency protections, while permitting customer-authorized use of digital commodities for blockchain validation services

Defines "qualified digital asset custodian" requirements including federal or state supervision, adequate capital for orderly wind-down, customer asset protection, AML/cybersecurity compliance, and provides existing state-supervised custodians a minimum 2-year transition period

Requires each digital commodity exchange to designate a Chief Compliance Officer who reports directly to the board, administers compliance policies, establishes remediation procedures, and submits annual reports certified under penalty of law

Mandates joint CFTC-SEC rulemakings within specified timeframes for: exempting dually-registered entities from duplicative requirements, handling mixed digital asset transactions (digital commodities traded for securities), portfolio margining rules (within 360 days), and asset delisting procedures (within 180 days)

Creates conflict of interest rules requiring governance and financial separation among affiliated entities, prohibiting exchanges from acting as counterparties or self-dealing, and mandating independent oversight of market operations

Provides exemption pathways for foreign digital commodity exchanges subject to comparable home-country regulation, including a 2-year transition period exemption requiring information sharing agreements and certifications of good standing