Digital Equities and No Automatic Disqualifications Act
The source supplies the latest action, but no lifecycle stage.
Latest action (27 Jul 2026): Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
What this bill does
This bill, titled the Digital Equities and No Automatic Disqualifications Act, would require federal agencies like the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) to establish specific processes before disqualifying non-natural persons from certain registrations, rights, or privileges. Currently, some rules can automatically disqualify entities based on specific events. This bill would prevent such automatic disqualifications.
Instead, these regulatory authorities would need to actively determine whether to apply a disqualifying provision. The bill mandates that the CFTC and SEC jointly develop rules within a year of enactment. These rules would need to ensure consistency in how disqualifications are handled, require entities to notify the relevant agency if they become subject to a disqualifying event, and ensure that any disqualification is necessary and appropriate for investor protection, considering mitigating factors and the specific conduct involved.
The bill was introduced in the Senate and has been referred to the Committee on Banking, Housing, and Urban Affairs. It has not yet been voted on by the committee or either chamber of Congress. If passed by both the Senate and the House of Representatives, it would then be sent to the President to be signed into law.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Timeline
27 Jul 2026
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Common questions
- What does S. 5140 do?
- This bill, titled the Digital Equities and No Automatic Disqualifications Act, would require federal agencies like the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) to establish specific processes before disqualifying non-natural persons from certain registrations, rights, or privileges. Currently, some rules can automatically disqualify entities based on specific events. This bill would prevent such automatic disqualifications. Instead, these regulatory authorities would need to actively determine whether to apply a disqualifying provision. The bill mandates that the CFTC and SEC jointly develop rules within a year of enactment. These rules would need to ensure consistency in how disqualifications are handled, require entities to notify the relevant agency if they become subject to a disqualifying event, and ensure that any disqualification is necessary and appropriate for investor protection, considering mitigating factors and the specific conduct involved. The bill was introduced in the Senate and has been referred to the Committee on Banking, Housing, and Urban Affairs. It has not yet been voted on by the committee or either chamber of Congress. If passed by both the Senate and the House of Representatives, it would then be sent to the President to be signed into law.
- Has S. 5140 become law?
- The source does not supply a confirmed lifecycle stage for S. 5140. Check the latest action and official source below.
- Who sponsored S. 5140?
- S. 5140 was sponsored by Sen. Justice, James C. [R-WV] (R-WV), with 0 cosponsors.
- What's the latest action on S. 5140?
- Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (27 Jul 2026).
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