S. 5140 — Digital Equities and No Automatic Disqualifications Act

This section requires the Commodity Futures Trading Commission and the Securities and Exchange Commission to conduct joint rulemaking within 1 year establishing a process for determining whether to apply disqualifying provisions under the Commodity Exchange Act, Securities Act of 1933, Securities Exchange Act of 1934, Investment Company Act of 1940, Investment Advisers Act of 1940, and related rules to any person other than a natural person. The rules must provide for consistency across authorities, require written notice within 30 days of a triggering event, allow nonpublic proceedings when appropriate, limit application to cases necessary and appropriate for the public interest and investor protection after considering mitigating factors, and restrict application to the same legal entity and directly affected business line.