WASHINGTON, DC (WVDN) – Senator Jim Justice introduced the Digital Equities and No Automatic Disqualifications Act (DE NADA). This bill would give the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) discretion to determine whether it is warranted to disqualify an entire entity from doing business when one of its affiliated entities violates the law.
“The Digital Equities and No Automatic Disqualifications Act brings fairness and common sense back to the regulatory process. This bill keeps the bad actors accountable while making sure honest folks aren’t caught in the crossfire. We ought to have a system that’s tough on wrongdoing, but fair to the people playing by the rules,” said Senator Jim Justice.
BACKGROUND:
- Currently, regulators automatically disqualify a business’s whole corporate structure from engaging in any business practices if one of their affiliated entities violates the law, even if unrelated to the business.
- Since these disqualifications are automatic, even legitimate business interests are halted without a proper evaluation of the severity of the offense or the collateral consequences of service disruptions.
- The current waiver process available for businesses when their operations have been frozen has become opaque and inconsistent, eroding a sense of due process. Many decide to settle cases to avoid the fallout.
- This bill continues the CFTC and SEC’s authority to use disqualifications to deter and punish bad actors, while ensuring integrity and fairness in the process.
