AUTHORITY TO GRANT EXEMPTIONS TO STATES WITH EFFECTIVE REGULATION AND ENFORCEMENT.

SEC. 410. AUTHORITY TO GRANT EXEMPTIONS TO STATES WITH EFFECTIVE REGULATION AND ENFORCEMENT. (a) In General.— Section 5318(a) of title 31, United States Code, is amended— (1) by striking “and” at the end of paragraph (4); (2) by redesignating paragraph (5) as paragraph (6); and (3) by inserting after paragraph (4) the following new paragraph: 108 STAT. 2253 “(5) exempt from the requirements of this subchapter any class of transactions within any State if the Secretary determines that— “(A) under the laws of such State, that class of transactions is subject to requirements substantially similar to those imposed under this subchapter; and “(B) there is adequate provision for the enforcement of such requirements; and”. (b) Technical and Conforming Amendment.— The penultimate sentence of section 5318(a)(6) of title 31, United States Code (as so redesignated by the amendment made by subsection (a) of this section) is amended by inserting “under this paragraph or paragraph (5)” after “exemption”.