[Congressional Record Volume 165, Number 17 (Monday, January 28, 2019)]
[House]
[Pages H1227-H1231]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  FINANCIAL TECHNOLOGY PROTECTION ACT

  Ms. WATERS. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 56) to establish an Independent Financial Technology Task 
Force to Combat Terrorism and Illicit Financing, to provide rewards for 
information leading to convictions related to terrorist use of digital 
currencies, to establish a Fintech Leadership in Innovation and 
Financial Intelligence Program to encourage the development of tools 
and programs to combat terrorist and illicit use of digital currencies, 
and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                                H.R. 56

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Financial Technology 
     Protection Act''.

     SEC. 2. SENSE OF CONGRESS.

       It is the sense of Congress that the Federal Government 
     should prioritize the investigation of terrorist and illicit 
     use of new financial technology, including digital 
     currencies.

     SEC. 3. INDEPENDENT FINANCIAL TECHNOLOGY TASK FORCE TO COMBAT 
                   TERRORISM AND ILLICIT FINANCING.

       (a) Establishment.--There is established the Independent 
     Financial Technology Task Force to Combat Terrorism and 
     Illicit Financing (the ``Task Force''), which shall consist 
     of--
       (1) the Secretary of the Treasury, who shall serve as the 
     head of the Task Force;
       (2) the Attorney General;
       (3) the Director of National Intelligence;
       (4) the Director of the Financial Crimes Enforcement 
     Network;
       (5) the Director of the Secret Service;
       (6) the Director of the Federal Bureau of Investigation; 
     and
       (7) 6 individuals appointed by the Secretary of the 
     Treasury, in consultation with the members of the Task Force 
     described under paragraphs (2) through (6), to represent the 
     private sector (including the banking industry, nonprofit 
     groups, and think tanks), with at least 2 of such individuals 
     having experience in the Fintech industry.
       (b) Duties.--The Task Force shall--
       (1) conduct independent research on terrorist and illicit 
     use of new financial technologies, including digital 
     currencies; and

[[Page H1228]]

       (2) develop legislative and regulatory proposals to improve 
     counter-terrorist and counter-illicit financing efforts.
       (c) Annual Congressional Report.--Not later than 1 year 
     after the date of the enactment of this Act, and annually 
     thereafter, the Task Force shall issue a report to the 
     Congress containing the findings and determinations made by 
     the Task Force in the previous year and any legislative and 
     regulatory proposals developed by the Task Force.

     SEC. 4. REWARDS FOR INFORMATION RELATED TO TERRORIST USE OF 
                   DIGITAL CURRENCIES.

       (a) In General.--The Secretary of the Treasury, in 
     consultation with the Attorney General, shall establish a 
     fund to pay a reward, not to exceed $450,000, to any person 
     who provides information leading to the conviction of an 
     individual involved with terrorist use of digital currencies.
       (b) Use of Fines and Forfeitures.--With respect to fines 
     and forfeitures related to the conviction of an individual 
     involved with terrorist use of digital currencies, the 
     Secretary of the Treasury shall, subject to the availability 
     of appropriations made in advance--
       (1) use such amounts to pay rewards under this section 
     related to such conviction; and
       (2) with respect to any such amounts remaining after 
     payments are made under paragraphs (1) and (2), deposit such 
     amounts in the Fintech Leadership in Innovation and Financial 
     Intelligence Program.

     SEC. 5. FINTECH LEADERSHIP IN INNOVATION AND FINANCIAL 
                   INTELLIGENCE PROGRAM.

       (a) Establishment.--There is established a program to be 
     known as the ``Fintech Leadership in Innovation and Financial 
     Intelligence Program'', which shall be funded as provided 
     under section 4(b)(2).
       (b) Innovation Grants.--
       (1) In general.--The Secretary of the Treasury shall make 
     grants for the development of tools and programs to detect 
     terrorist and illicit use of digital currencies.
       (2) Eligible recipients.--The Secretary may make grants 
     under this subsection to entities located in the United 
     States, including academic institutions, companies, nonprofit 
     institutions, individuals, and any other entities located in 
     the United States that the Secretary determines appropriate.
       (3) Eligible projects.--With respect to tools and programs 
     described under paragraph (1), in addition to grants for the 
     development of such tools and programs, the Secretary may 
     make grants under this subsection to carry out pilot programs 
     using such tools, the development of test cases using such 
     tools, and research related to such tools.
       (4) Preferences.--In making grants under this subsection, 
     the Secretary shall give preference to--
       (A) technology that is nonproprietary or that is community 
     commons-based;
       (B) computer code that is developed and released on an open 
     source basis;
       (C) tools that are proactive (such as meeting regulatory 
     requirements under ``know your customer'' and anti-money 
     laundering requirements for any entity that has to comply 
     with U.S. Government regulations) vs. reactive (such as 
     aiding law enforcement organizations in catching illegal 
     activity after the fact); and
       (D) tools and incentives that are on decentralized 
     platforms.
       (5) Other requirements.--
       (A) Use of existing global standards.--Any new technology 
     developed with a grant made under this subsection shall be 
     based on existing global standards, such as those developed 
     by the Internet Engineering Task Force (IETF) and the World 
     Wide Web Consortium (W3C).
       (B) Supporting existing laws or regulations.--Tools and 
     programs developed with a grant made under this subsection 
     shall be in support of existing laws or regulations, 
     including the Bank Secrecy Act, and make efforts to balance 
     privacy and anti-money laundering concerns.
       (C) Open access requirement.--Tools and programs developed 
     with a grant made under this subsection shall be freely 
     accessible and usable by the public. This requirement may be 
     fulfilled by publicly availing application programming 
     interfaces or software development kits.

     SEC. 6. PREVENTING ROGUE AND FOREIGN ACTORS FROM EVADING 
                   SANCTIONS.

       (a) Report and Strategy With Respect to Digital Currencies 
     and Other Related Emerging Technologies.--
       (1) In general.--Not later than 180 days after the date of 
     the enactment of this Act, the President, acting through the 
     Secretary of Treasury and in consultation with the Attorney 
     General, the Secretary of State, the Secretary of Homeland 
     Security, the Director of National Intelligence, the Director 
     of the Office of Management and Budget, and the appropriate 
     Federal banking agencies and Federal functional regulators, 
     shall--
       (A) submit to the appropriate congressional committees a 
     report that identifies and describes the potential uses of 
     digital currencies and other related emerging technologies by 
     states, non-state actors, and foreign terrorist organizations 
     to evade sanctions, finance terrorism, or launder monetary 
     instruments, and threaten United States national security; 
     and
       (B) develop and submit to the appropriate congressional 
     committees a strategy to mitigate and prevent such illicit 
     use of digital currencies and other related emerging 
     technologies.
       (2) Form; public availability.--
       (A) Form.--The report and strategy required under paragraph 
     (1) shall be submitted in unclassified form, but may contain 
     a classified annex.
       (B) Public availability.--The unclassified portion of such 
     report and strategy shall be made available to the public and 
     posted on the internet website of the Department of 
     Treasury--
       (i) in pre-compressed, easily downloadable versions that 
     are made available in all appropriate formats; and
       (ii) in machine-readable format, if applicable.
       (3) Sources of information.--In preparing the report and 
     strategy required under paragraph (1), the President may 
     utilize any credible publication, database, web-based 
     resource, and any credible information compiled by any 
     government agency, nongovernmental organization, or other 
     entity that is made available to the President.
       (b) Briefing.--Not later than 2 years after the date of the 
     enactment of this Act, the Secretary of the Treasury shall 
     brief the appropriate congressional committees on the 
     implementation of the strategy required under subsection (a).

     SEC. 7. DETERMINATION OF BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the House Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.

     SEC. 8. DEFINITIONS.

       For purposes of this Act:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committee on Financial Services, the Committee on 
     the Judiciary, the Permanent Select Committee on 
     Intelligence, and the Committee on Foreign Affairs of the 
     House of Representatives; and
       (B) the Committee on Banking, Housing, and Urban Affairs, 
     the Committee on Homeland Security and Governmental Affairs, 
     the Committee on the Judiciary, the Select Committee on 
     Intelligence, and the Committee on Foreign Relations of the 
     Senate.
       (2) Appropriate federal banking agencies.--The term 
     ``appropriate Federal banking agencies'' has the meaning 
     given the term in section 3 of the Federal Deposit Insurance 
     Act (12 U.S.C. 1813).
       (3) Bank secrecy act.--The term ``Bank Secrecy Act'' 
     means--
       (A) section 21 of the Federal Deposit Insurance Act;
       (B) chapter 2 of title I of Public Law 91-508; and
       (C) subchapter II of chapter 53 of title 31, United States 
     Code.
       (4) Digital currency.--The term ``digital currency''--
       (A) means a digital representation of value that--
       (i) is used as a medium of exchange, unit of account, or 
     store of value; and
       (ii) is not established legal tender, whether or not 
     denominated in established legal tender; and
       (B) does not include--
       (i) a transaction in which a merchant grants, as part of an 
     affinity or rewards program, value that cannot be taken from 
     or exchanged with the merchant for legal tender, bank credit, 
     or digital currency; or
       (ii) a digital representation of value issued by or on 
     behalf of a publisher and used solely within an online game, 
     game platform, or family of games sold by the same publisher 
     or offered on the same game platform.
       (5) Federal functional regulator.--The term ``Federal 
     functional regulator'' has the meaning given that term in 
     section 509 of the Gramm-Leach-Bliley Act (15 U.S.C. 6809).
       (6) Foreign terrorist organization.--The term ``foreign 
     terrorist organization'' means an organization that is 
     designated as a foreign terrorist organization under section 
     219 of the Immigration and Nationality Act (8 U.S.C. 1189).
       (7) Terrorist.--The term ``terrorist'' includes a person 
     carrying out domestic terrorism or international terrorism 
     (as such terms are defined, respectively, under section 2331 
     of title 18, United States Code).

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
California (Ms. Waters) and the gentleman from North Carolina (Mr. 
McHenry) each will control 20 minutes.
  The Chair recognizes the gentlewoman from California.


                             General Leave

  Ms. WATERS. Mr. Speaker, I ask unanimous consent that all Members 
have 5 legislative days within which to revise and extend their remarks 
on this legislation and to insert extraneous material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from California?
  There was no objection.

                              {time}  1745

  Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume.

[[Page H1229]]

  Mr. Speaker, I am so pleased that this body will vote on H.R. 56, the 
Financial Technology Protection Act, which passed the House in the 
115th Congress. This bill would strengthen and expand efforts to deter 
terrorists and illicit abuses of financial technology through 
interagency coordination and research through collaboration with 
private institutions and citizens.
  As stated in last year's National Money Laundering Risk Assessment 
from the United States Department of the Treasury, many 
cryptocurrencies are being designed to make virtual currency 
transactions untraceable and are increasingly being used by bad actors.
  The talent and technological capabilities to track these transactions 
must keep up so the government can identify terrorists, hackers, and 
other criminals who try to hide their activities and proceeds using 
cryptocurrencies and related exchanges.
  This bill would establish a public-private sector task force, a grant 
program to encourage the development of largely open-source tracking 
technology, and a whistleblower reward program to counter terrorist 
uses of digital currencies. Also, it would require the government to 
examine how state and nonstate actors, including foreign terrorist 
organizations, use these cryptocurrencies to evade sanctions, finance 
terrorism, and launder money.
  I thank Congressmen Budd and Lynch for reintroducing this bipartisan 
legislation.
  Mr. Speaker, I urge my colleagues to support it, and I reserve the 
balance of my time.
  Mr. McHENRY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H.R. 56, the Financial Technology 
Protection Act.
  Our number one priority is to ensure the safety of the American 
people, especially from terrorists and terror organizations seeking to 
take away the freedoms we hold dear. This bipartisan legislation is a 
prime example of how we can reach across the aisle and find common 
ground in the fight against terrorism as well as illicit finance.
  H.R. 56 establishes an Independent Financial Technology Task Force, 
which will improve coordination between the private and public sectors 
in order to research and develop tools to combat terrorism and the 
illicit use of financial technologies, including digital currencies.
  Recent studies have found evidence that terrorists, especially lone-
wolf actors, use digital currencies. A public-private task force as 
established through this legislation can inform Congress on the 
legislative and regulatory steps needed to stop these bad actors.
  Furthermore, this bipartisan bill would incentivize individuals to 
come forward with knowledge of possible terrorist and illicit financing 
involving digital currencies by offering monetary rewards for 
information that leads to successful convictions. A reward program is 
just the kind of innovation in policymaking that we need to stay a step 
ahead of terrorists.
  Last Congress, the Treasury Department informed our committee that 
using such unconventional tools could be critical in generating useful 
intelligence, and I applaud Mr. Budd and Mr. Lynch for thinking 
creatively in this process and listening to testimony and taking that 
and putting that in legislative form.
  The threat of illicit use of digital currencies is evolving, and 
policymakers must work together to find best practices and solutions. 
That is why this bipartisan bill is so important.
  Furthermore, I would add that digital currencies have enormous 
potential benefits. We want to understand those benefits, but we also 
want to understand those costs involved, as policymakers. We want to be 
smart about it. I think it is useful and helpful for us to begin with 
understanding how we stamp out bad actors and their use of digital 
currencies before we move into that next set of conversation about how 
we properly enhance their utility in our society.
  Mr. Speaker, I want to thank, again, my colleague from Massachusetts 
(Mr. Lynch) for his work here and my colleague from North Carolina, the 
great north State, Mr. Budd, first for their relationship on this 
important policymaking, and also their willingness to work across the 
aisle in order to get good legislation that is ensuring the safety of 
the American people.
  Mr. Speaker, I urge my colleagues to support H.R. 56 as a 
commonsense, forward-looking approach to combating terrorism, and I 
reserve the balance of my time.
  Ms. WATERS. Mr. Speaker, I yield 4 minutes to the gentleman from 
Massachusetts (Mr. Lynch), who is a strong leader and a strong voice on 
the Financial Services Committee and the lead Democratic cosponsor of 
this bill.
  Mr. LYNCH. Mr. Speaker, I rise in support of H.R. 56.
  First, I would like to thank our chairwoman, the gentlewoman from 
California (Ms. Waters), for her outstanding leadership in bringing 
this bill to the floor. I would also like to thank the gentleman from 
North Carolina (Mr. McHenry) for his energetic support as well. In 
addition, I would like to thank my distinguished colleague, the 
gentleman from North Carolina (Mr. Budd), a colleague of ours on the 
Financial Services Committee, for working in a bipartisan fashion with 
me to get this bill to the floor in a better way to safeguard our 
emerging financial technology sector against its illicit use by 
terrorists and their financiers, money launderers, computer hackers, 
and other criminal actors.
  I would also like to point out, as evidenced in the course of our 
ongoing committee investigation to examine terrorist and money 
laundering activities, that continued innovations in digital 
currencies, peer-to-peer financing, mobile payments, and other emerging 
financial technologies--or in today's lingo, fintech--have been met 
with increasing efforts by malign actors to exploit these digital 
platforms and services for terrorist and other criminal purposes. 
According to the Combating Terrorism Center At West Point: ``Given the 
interest that terrorist organizations have shown in leveraging digital 
currencies, their use of such mediums for conducting financial 
transactions will only increase in the future.''

  So the growing reliance on digital currency for terrorist financing 
recently manifested itself in the U.S. in the form of a complex bank 
fraud scheme perpetrated by a Long Island woman, Zoobia Shahnaz, who 
pleaded guilty in November of 2018 to providing material support to a 
terrorist organization.
  In an attempt to raise funds for the Islamic State, Ms. Shahnaz 
fraudulently obtained credit cards which she used to purchase more than 
$62,000 in bitcoin and other cryptocurrencies. After converting the 
currency to U.S. dollars and transferring the funds to her checking 
account, she proceeded to execute wire transactions totaling over 
$150,000 directed to top Islamic State-affiliated individuals and shell 
entities in Pakistan, China, and Turkey.
  The illicit use of digital currency systems has also extended to 
other criminal enterprises, including cybercrime. According to a six-
count indictment returned by a Federal grand jury in Newark, New 
Jersey, two Iranian nationals engaged in a nearly 3-year international 
extortion and computer crime scheme involving the deployment of so-
called sam sam ransomware against U.S. public and private entities. 
Acting from inside Iran, these cybercriminals forcibly encrypted the 
computer systems of more than 200 hospitals, municipalities, and public 
institutions in the United States, including the city of Atlanta, the 
city of Newark, and the Colorado Department of Transportation. In 
exchange for decryption keys, they demanded ransom to be paid in 
bitcoin. In total, the men collected over $6 million in ransom 
payments, to date, while causing more than $30 million in losses to 
their U.S. victims.
  Moreover, in July of last year, Special Counsel Bob Mueller indicted 
12 Russian intelligence officers stemming from their involvement in 
cyber attacks against U.S. individuals and entities leading up to the 
2016 Presidential election. According to the 11-count indictment, in 
order to ``facilitate the purchase of infrastructure used in their 
hacking activity . . . the defendants conspired to launder the 
equivalent of more than $95,000 through a web of transactions 
structured to capitalize on the perceived anonymity of cryptocurrencies 
such as bitcoin.''

[[Page H1230]]

  The SPEAKER pro tempore. The time of the gentleman has expired.
  Ms. WATERS. Mr. Speaker, I yield the gentleman from Massachusetts an 
additional 1 minute.
  Mr. LYNCH. So as we continue to witness and embrace rapid digital 
innovation in the traditional banking and finance sector, it is urgent 
that government and industry work together to adopt and deploy 
regulatory protocols such as blockchain technologies to protect the 
integrity of digital financial systems against abuse.
  To this end, our legislation, the Financial Technology Protection 
Act, would establish an independent task force consisting of both 
public and private stakeholders to address the threat of exploitation 
of new financial technologies by terrorists and other malign actors.
  It would also authorize innovative fintech grants to enhance the 
ability of U.S. companies, academic institutions, nonprofit 
organizations, and other private-sector entities to develop new tools 
designed to protect against criminal use of cryptocurrencies and 
enhance U.S. competitiveness in global financial markets.
  Moreover, the bill would authorize a rewards program for individuals 
who provide information leading to the conviction of those who use 
digital currency systems for terrorist purposes.
  Mr. Speaker, I urge my colleagues on both sides of the aisle to 
support H.R. 56.
  Mr. McHENRY. Mr. Speaker, I yield 5 minutes to the gentleman from 
North Carolina (Mr. Budd), who is from the great metropolis of Advance 
in Davie County and who is a leader in fintech.
  Mr. BUDD. Mr. Speaker, I want to thank my friend, the ranking member, 
for yielding, and I want to start by congratulating him on his new role 
on the Financial Services Committee. Certainly, he makes our home 
State, the Old North State, proud.
  I also want to congratulate the new chair on her position as chair of 
our committee, and I look forward to working with her in a bipartisan 
fashion whenever I can.
  I also have to thank my colead on H.R. 56, the gentleman from 
Massachusetts (Mr. Lynch), for his leadership on illicit financing 
issues, and this bill in particular. I always enjoy teaming up with 
him, and I value his input and expertise on these issues. I am hopeful 
we will see some movement on his kleptocracy legislation soon, and I am 
proud to be coleading that bill with the gentleman.
  Today, Mr. Speaker, I rise in strong support of my bipartisan 
legislation, the Financial Technology Protection Act. I have said this 
many times before, but I will say it again because it bears repeating: 
Illicit financing networks are the linchpin of any terrorist group, 
criminal organization, or rogue state's operations.
  As we move into an increasingly digital and virtual world, criminals 
and terrorists will start to use new technologies that are available to 
them. This shouldn't shock anyone. Of course, we all recognize the good 
that comes with innovation and new technology, but there will always be 
bad actors as well.
  The bottom line is that the Federal Government has to be one step 
ahead of the illicit actors in this new space without threatening 
technological innovation, and that is what this bill will do. It will 
do this by giving the private sector additional tools to protect their 
new technology, hence the name for the bill, the Financial Technology 
Protection Act.
  Mr. Speaker, H.R. 56 is a culmination of months of work with outside 
groups all over the political spectrum, from national security groups 
that appreciate the task force to trade and industry groups that 
appreciate the new tools being given to them that will help them 
better protect their industry and livelihood.

  I think that this bill strikes an impressive balance and is an 
example of some bipartisan areas that we can work together on in the 
116th Congress. Specifically, Mr. Speaker, my legislation will do the 
following things:
  First, and perhaps most importantly, H.R. 56 establishes the Fintech 
Leadership in Innovation and Financial Intelligence Program, which will 
be used for grants and rewards in the fintech space for ideas and 
programs to combat terrorist use of digital currencies. These 
technologies would be open access and open source. Experts in the 
private sector can track illicit use of these currencies and perhaps do 
a better job of leveraging their talent to create tools and programs 
through the Fintech Leadership and Financial Intelligence Program. We 
need to give them the ability to try, and that is exactly what this 
bill does.
  Secondly, it establishes the Independent Financial Technology Task 
Force to Combat Terrorism and Illicit Financing, which will improve 
coordination and start conversations between the private and public 
sectors for new ways to combat illicit use. In my view, industry and 
the Federal Government should be coming together to find best practices 
and solutions to stop this new terrorist funding threat.
  H.R. 56 includes language from H.R. 5227, the Preventing Rogue and 
Foreign Actors from Evading Sanctions Act, introduced last Congress by 
my friend, Mark Meadows of North Carolina. This language directs the 
Treasury Department to develop a strategy that identifies and describes 
the potential uses of virtual currencies and other related emerging 
technologies by states and nonstate actors, terrorist organizations to 
evade sanctions, finance terrorism, or launder monetary instruments and 
threaten the United States' national security. Again, the development 
of a national strategy to combat illicit use strikes me as common 
sense; therefore, we are excited to have it included in the bill and to 
have Mr. Meadows' support.
  Finally, this Budd-Lynch legislation establishes a targeted rewards 
program for information leading to the capture of terrorists or illicit 
actors involved with terror digital currency networks. The government 
should be encouraging individuals with knowledge of illicit use of 
virtual currencies to come forward through the offerings of rewards for 
successful convictions.
  Here is the bottom line: H.R. 56 is legislation that sparks private-
sector innovation to deal with terror and illicit financing when it 
comes to virtual currencies, which ultimately benefits the underlying 
technology, the blockchain.

                              {time}  1800

  I think that Congress should be promoting programs and technologies 
that give industry the tools they need to save their technology and 
industry from illicit use and, hopefully, save them from further 
negotiation down the road.
  I am very excited that this bill is up for a vote in the House today 
and has such strong bipartisan support.
  Mr. Speaker, I urge adoption of my bipartisan legislation and, once 
again, thank everyone who has had a hand in bringing this to the floor. 
It is an exciting day when we can focus on fintech, and I am hopeful 
for the future of this committee and the 116th Congress.
  Ms. WATERS. Mr. Speaker, I reserve the right to close.
  Mr. McHENRY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, three for three--the House Financial Services Committee 
comes out with the first three bills, and they are bipartisan. I would 
hope the House would adopt them tonight.
  I think this is a great first step in this long road of legislating 
that I think we can be about in the Financial Services Committee. The 
chairwoman has shown that will, that interest, that inclination to work 
together where we can, where we can achieve consensus across the aisle.
  I mean that as a compliment. In the politics of today, when you are 
working across the aisle, it seems as though that is dealt as an insult 
in some factions.
  I know that Chairwoman Waters has worked intently to get to the 
position of chairing this committee, for a little longer than I have to 
be the ranking member of the committee; but, as she will show me on 
opening day of the House Financial Services Committee, she has the 
gavel and I do not, but where we can work together, I am honored to be 
able to do so.
  I want to thank my colleague, Mr. Budd, for working so intently on 
financial innovation and on fintech as well as cryptocurrencies, which 
are of great interest to him, and I appreciate Mr. Lynch being engaged 
in this subject matter as well.

[[Page H1231]]

  I look forward to more bipartisan legislating coming out of this 
committee as well as a number of more interesting activities that I am 
sure will be a part of this.
  I am now informed that we do have one Member to close. Mr. Speaker, I 
yield 2 minutes to the gentleman from Virginia (Mr. Riggleman), a new 
Member who has a great deal of experience in national security.
  Mr. RIGGLEMAN. Mr. Speaker, special thanks to the chair and to the 
ranking member for their leadership on this. I would also like to thank 
Representative Budd for sponsoring this bipartisan legislation and 
thank my colleagues across the aisle, Representatives Lynch and Soto, 
for their important work on this bill as well.
  While I may be new to Congress, I am all too familiar with terrorist 
threats and the danger they pose to the safety and security of our 
Nation. I served my country in the Air Force as an intelligence officer 
and worked to track down terrorists after 9/11. I also supported 
``follow the money'' analysis and operations related to terrorist 
financing.
  One of the key components that allows terrorists to organize and 
execute their missions is financing. As financial technology, or 
fintech, evolves, so do the opportunities for criminals to take 
advantage of the financial system.
  H.R. 56 calls for financial regulators, law enforcement, and private-
sector experts to come together to create the Fintech Task Force to 
Combat Terrorism and Illicit Finance. This task force is charged with 
developing innovative methods to track, prevent, and prosecute 
terrorists that use digital currencies and other financial technologies 
to advance their agenda.
  Technology is integral to everyday life for consumers, businesses, 
and governments, which is why it is critical that experts from law 
enforcement and the private sector come together to protect our 
financial system from terrorists and other bad actors.
  Mr. Speaker, for these reasons and many others, I strongly support 
this bill.
  Mr. McHENRY. Mr. Speaker, I yield back the balance of my time.
  Ms. WATERS. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, I would like to thank Representative Budd and 
Representative Lynch for the work that they have put forth on this 
legislation, and I would like to take a moment to thank Mr. Lynch for 
not only this legislation, but all of the efforts that he has put forth 
on the Financial Services Committee that have benefited this Congress 
and our country.
  Let me just say that I rise again to encourage my colleagues on both 
sides of the aisle to vote for H.R. 56, the Financial Technology 
Protection Act. This bipartisan bill aims to improve our efforts to 
deter terrorists and criminal abusers of financial technology, 
including cryptocurrencies, through its support of interagency 
coordination and research and through collaboration with private 
institutions and citizens.
  The measure created by this legislation will give the U.S. a better 
understanding of how bad actors, including terrorists, use 
cryptocurrencies to evade sanctions, finance terrorism, and launder 
money. These state and nonstate actors are always looking for new ways 
to get around our protective and investigative measures, and this bill 
will help us to stay at least one step ahead.
  So, again, my sincere gratitude and thanks to Congressmen Budd and 
Lynch for reintroducing this bill, which was passed by this body in the 
last Congress.
  I would like to, again, follow up on statements that were made by the 
ranking member, Mr. McHenry, to remind everyone that the first three 
bills of this Congress that have been introduced by the Financial 
Services Committee are bipartisan bills where we have shown that we are 
willing to provide leadership and send a message to all of the Members 
of Congress that we have to work hard to try and get good, viable, 
strong legislation through this Congress, working together in ways that 
perhaps we have not done before.

  I am very pleased and proud to stand here as the chairperson of the 
Financial Services Committee, helping to make sure that the first three 
bills that we introduce are bipartisan and urging my support for these 
bills and this bill now that it is before you.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from California (Ms. Waters) that the House suspend the 
rules and pass the bill, H.R. 56, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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