Digital Equities and No Automatic Disqualifications Act

This bill prevents automatic disqualification of business entities from financial industry registrations or privileges when certain events occur, requiring regulators to review each case individually first. It mandates that the Commodity Futures Trading Commission and the Securities and Exchange Commission create a joint process within one year to ensure consistent, fair evaluations that consider mitigating factors and the specific nature of the misconduct. The new rules require affected companies to notify regulators within 30 days of an event and ensure that any penalty is necessary for investor protection and limited to the specific business line involved. These changes apply to major financial laws governing commodities, securities, investment companies, and investment advisers, as well as their associated regulations and self-regulatory organization rules.