; (II) for activities directly related to the operation of the blockchain system, such as mining, validating, staking, or other activity directly tied to the operation of the blockchain system; or (III) to the existing holders of another digital asset, in proportion to the total units of such other digital asset as are held by each person. (B) Prohibition on evasion It shall be unlawful for any person to facilitate an end user distribution to knowingly evade classification as a digital asset issuer, related person, or an affiliated person, or the requirements related to a digital asset issuance. (31) Functional system With respect to a blockchain system to which a digital asset relates, the term functional system means the network allows network participants to use such digital asset for— (A) the transmission and storage of value on the blockchain system; (B) the participation in services provided by or an application running on the blockchain system; or (C) the participation in the decentralized governance system of the blockchain system. (32) Permitted payment stablecoin (A) In general The term permitted payment stablecoin means a digital asset— (i) that is or is designed to be used as a means of payment or settlement; (ii) the issuer of which— (I) is obligated to convert, redeem, or repurchase for a fixed amount of monetary value; or (II) represents will maintain or creates the reasonable expectation that it will maintain a stable value relative to the value of a fixed amount of monetary value; (iii) the issuer of which is subject to regulation by a Federal or State regulator with authority over entities that issue payment stablecoins; and (iv) that is not— (I) a national currency