This section bans fraud and false statements in stablecoin transactions, sets felony penalties for violations, and gives the commission enforcement power.
(a) It is unlawful for any person, in connection with the offer, sale, or purchase of any stablecoin, directly or indirectly, to knowingly: (1) Employ any device, scheme, or artifice to defraud a person; (2) Make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made not misleading in the light of the circumstances under which the statements are made; or (3) Engage in any act, practice, or course of business that operates or would operate as a fraud or deceit upon any person. (b)(1) A person that knowingly violates subsection (a) shall be guilty of a Class B felony. (2) The limitations period for any prosecution under this section does not commence or begin to accrue until the discovery of the facts constituting the deception, after which the prosecution shall be commenced within five years. (c) A person that intentionally makes a false statement, misrepresentation, or false certification in a record filed or required to be maintained under this chapter or intentionally makes a false entry or omits a material entry in such a record is guilty of a Class C felony. (d) A person that intentionally engages in an activity for which a license is required under this chapter without being licensed under this chapter and who receives more than five thousand dollars ($5,000) in compensation within a 30-day period from this activity is guilty of a Class C felony. (e) A person that intentionally engages in an activity for which a license is required under this chapter without being licensed under this chapter and who receives five thousand dollars ($5,000) or less in compensation within a 30-day period from this activity is guilty of a Class D felony. (f) The enforcement of this chapter shall be vested in the commission. It is the duty of the commission to enforce this chapter and to investigate, prevent, and detect violations of this chapter. The commission is vested with the rights, privileges, and powers conferred by law upon district attorneys, including the power to appear before grand juries and to interrogate witnesses before a grand jury. A district attorney may empower the commission to proceed on his or her behalf in any proceeding under this chapter. (g) In any proceeding under this chapter, intent or knowledge need not be alleged and proved in prosecutions of violations involving unlicensed issuers. (h) A proceeding under this chapter shall not preempt or foreclose any criminal action or liability that may arise under any other criminal provision.