Bill · S. 5140· Senate(119-S-5140)
Digital Equities and No Automatic Disqualifications Act
- Introduced
- 7/27/2026
- Last activity
- 7/27/2026 — Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Sponsored by
- James Justice
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The "Digital Equities and No Automatic Disqualifications Act" seeks to ensure fairness and transparency in how the Commodity Futures Trading Commission and the Securities and Exchange Commission handle disqualifications. It prevents certain statutes, rules, or regulations from having an automatic effect on any person other than a natural person. Instead, the responsible regulatory authority must make a specific determination to apply the disqualifying provision. To achieve this, the two agencies must engage in joint rulemaking within one year of the Act's enactment. This new process will establish how authorities decide whether to apply a disqualifying provision before a matter is disposed of.
Yes· 3 of 4
Does this protect the right to fair treatment by the courts?+5
The bill enhances due process by replacing automatic disqualifications with a discretionary determination process.
Does this make what the government does easier for the public to see?+4
The bill promotes transparency and consistency in how regulatory agencies apply disqualifying provisions.
Would business owners be better off under this?+4
The bill provides more predictability and fairness for entities facing regulatory disqualifications.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Prevention of Automatic Disqualifications: By removing the automatic effect of certain provisions for non-natural persons, the bill ensures that a regulatory authority must first make a specific determination to apply a disqualification (Section 2(a)).
-
Consistency Across Authorities: The required joint rulemaking aims to provide consistency across different regulatory authorities when they administer these provisions (Section 2(b)(2)(A)).
-
Protection of Confidentiality: The new rules will provide for a nonpublic process when a regulatory action that triggers a disqualification has not yet been made public (Section 2(b)(2)(C)).
-
Public Interest Protections: The application of a disqualifying provision will only occur if it is determined to be necessary and appropriate in the public interest and for the protection of investors (Section 2(b)(2)(D)).
-
Consideration of Mitigating Circumstances: The new process will require regulatory authorities to take into consideration applicable mitigating factors (Section 2(b)(2)(E)).
-
Targeted Application: The bill ensures that a disqualifying provision can only be applied if the triggering event occurred in the same legal entity and relates to the specific business line directly affected (Section 2(b)(2)(F)).
Potential Negative Impacts for People
- Notice Requirements for Parties: A party subject to a disqualifying provision is required to provide written notice to the relevant regulatory authority within 30 calendar days after the event occurs (Section 2(b)(2)(B)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Governance And Ideology
- Improves Due Process+5Improves Government Transparency+4
- Demographic And Interest Groups
- Good For Business Owners+4
- Economy And Finance
- Improves Consumer Protection+3
- 7/27/2026
- Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Introduced in Senate