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Blockchain Asset Innovation and Consumer Protection Act of 2022

SEC. 1—DEFINITIONS

As used in this chapter

(1) Blockchain Asset.—The term “blockchain asset” means a natively electronic asset that is recorded and transacted using cryptographically secured distributed ledger technology.

SEC. 2—PROHIBITED ACTIVITIES

It shall be unlawful for any person, directly or indirectly, by the use of any means or instrumentality of interstate commerce or of the mails,

(a) To employ any device, scheme, or artifice to defraud,

(b) To make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, or

(c) To engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person,

in connection with the purchase or sale of any blockchain asset.

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SEC. 3—CRIMINAL PENALTIES

Whoever violates this section shall be fined in an amount not to exceed [amount] or imprisoned not more than [years], or both, and shall forfeit to the United States, irrespective of any provision of State law.

SEC. 4—CIVIL REMEDIES

(a) The district courts of the United States shall have jurisdiction to prevent and restrain violations of section 2 of this chapter by issuing appropriate orders, including, but not limited to imposing reasonable restrictions on the future activities or investments of any person, including, but not limited to, prohibiting any person from engaging in the same type of endeavor that gave rise to the violation of section 2 of this chapter, the activities of which affect interstate or foreign commerce.

(b) The Attorney General may institute proceedings under this section. Pending final determination thereof, the court may at any time enter such restraining orders or prohibitions, or take such other actions, including the acceptance of satisfactory performance bonds, as it shall deem proper.

(c) Any person injured in his business or property by reason of a violation of section 2 of this chapter may sue therefor in any appropriate United States district court and shall recover the damages sustained by such person and the cost of the suit, including a reasonable attorneys fee.

(d) A final judgment or decree rendered in favor of the United States in any criminal proceeding brought by the United States under this chapter shall estop the defendant from denying the essential allegations of the criminal offense in any subsequent civil proceeding brought by the United States.

SEC. 5—EXCLUSION OF BLOCKCHAIN ASSETS FROM SECURITIES AND COMMODITIES LAWS

(a) No blockchain asset shall be considered a “security” under the Securities Act of 1933, 15 U.S.C. § 77b(a)(1), the Securities Exchange Act of 1934, 15 U.S.C. § 78c(a)(10), or the the Investment Company Act, 15 U.S.C. § 80a-2(a)(36).

(b) No blockchain asset shall be considered a "commodity" under the Commodity Exchange Act, 7 U.S.C. § 1a(9).

(c) Nothing in this section shall be construed to exclude from the definition of “security” any investment contract, as defined in the Securities Act of 1933, 15 U.S.C. § 77b(a)(1), the Securities Exchange Act of 1934, 15 U.S.C. § 78c(a)(10), and the Investment Company Act, 15 U.S.C. § 80a-2(a)(36), merely because the investment contract arises out of or relates to the purchase or sale of a blockchain asset that is excluded from the definition of “security” under this section.