S.Amdt. 6378

SA 6378, submitted by Ms. Cortez Masto, aims to change the Commodity Exchange Act by adding a prohibition on foreign entities entering into certain event contracts.

The purpose of this amendment is to stop covered entities—which are entities where a majority of ownership is held by non-United States persons—from offering or entering into covered event contracts with United States persons. These specific contracts are based on contingencies or occurrences involving national defense information.

To maintain their status as a registered swap execution facility or designated contract market, these entities must ensure they do not engage in these contracts. If a covered entity knowingly violates this requirement, they face the following:

• Suspension of registration
• Revocation as a registered entity