; (2) shall keep books and records in such form and manner and for such period as may be prescribed by the Commission by rule or regulation; and (3) shall keep the books and records open to inspection and examination by any representative of the Commission. . (b) Definition of clearing agency Section 3(a)(23)(B) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a)(23)(B) ) is amended by inserting digital asset broker, digital asset dealer, after broker, dealer, each place such term appears. 407. Rules related to conflicts of interest The Securities Exchange Act of 1934 ( 15 U.S.C. 78a et seq. ) is amended by inserting after section 10D the following: 10E. Conflicts of interest related to digital assets Each registered digital asset trading system, registered digital asset broker, registered digital asset dealer, and notice-registered digital asset clearing agency shall establish, maintain, and enforce written policies and procedures reasonably designed, taking into consideration the nature of such person’s business, to mitigate any conflicts of interest and transactions or arrangements with affiliates. . 408. Treatment of certain digital assets in connection with federally regulated intermediaries Section 18(b) of the Securities Act of 1933 ( 15 U.S.C. 77r(b) ) is amended by adding at the end the following: (5) Exemption for certain digital assets in connection with federally regulated intermediaries A restricted digital asset is treated as a covered security with respect to a transaction that is exempt from registration under this Act when it is— (A) brokered, traded, custodied, or cleared by a digital asset broker or digital asset dealer registered under section 15H of the Securities Exchange Act of 1934