asset exchange shall not be required to register as a futures commission merchant for any activity for which the registered crypto asset exchange is regulated under section 5i. . 405. Supervision of affiliates (a) In general The Commodity Exchange Act ( 7 U.S.C. 1 et seq. ) (as amended by section 404(a)) is amended by inserting after section 5i the following: 5j. Commission supervision of crypto asset affiliates (a) Definition of covered affiliate In this section, covered affiliate means, based on the totality of the facts and circumstances as determined by the Commission, a person with a substantial legal or financial relationship to an entity registered under this Act that is primarily engaged in crypto asset activities, based on the following factors: (1) The degree to which conflicts of interest may be present, or the financial interests of the entity may come into conflict with the fiduciary duty of the entity to customers or the prudent operation of the entity. (2) The legal relationship between the entity and the affiliate. (3) The overall financing requirements of the entity and the affiliate, and the degree, if any, to which the entity and the affiliate are financially dependent on each other. (4) The degree, if any, to which the entity or its customers rely on the affiliate for operational support or services in connection with the business of the entity. (5) The level of market, credit, or other risk present in the activities of the affiliate. (6) The extent to which the affiliate has the authority or the ability to cause a withdrawal of capital from the entity. (7) Any other factor determined by the Commission by rule to be material. (b) Commission designation of covered affiliates (1) In general In consultation with an entity registered under this Act, not later than 1 year after the date of enactment of this section, and not less frequently than 90 days before the examination of an entity by the Commission or a customer protection and market integrity authority registered under section 9809 of