[Congressional Record Volume 169, Number 120 (Thursday, July 13, 2023)]
[Senate]
[Pages S2523-S2524]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 326. Ms. WARREN (for herself, Mr. Warner, Mr. Warnock, Ms. Smith, 
Ms. Cortez Masto, Mr. King, Mr. Durbin, and Mr. Reed) submitted an 
amendment intended to be proposed by her to the bill S. 2226, to 
authorize appropriations for fiscal year 2024 for military activities 
of the Department of Defense, for military construction, and for 
defense activities of the Department of Energy, to prescribe military 
personnel strengths for such fiscal year, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end of title X, add the following:

      Subtitle __--Digital Asset Sanctions Compliance Enhancement

     SEC. __01. SHORT TITLE.

       This subtitle may be cited as the ``Digital Asset Sanctions 
     Compliance Enhancement Act of 2023''.

     SEC. __02. DEFINITIONS.

       In this subtitle:
       (1) Appropriate congressional committees and leadership.--
     The term ``appropriate congressional committees and 
     leadership'' means--
       (A) the Committee on Banking, Housing, and Urban Affairs, 
     the Committee on Foreign Relations, and the majority and 
     minority leaders of the Senate; and
       (B) the Committee on Financial Services, the Committee on 
     Foreign Affairs, and the Speaker, the majority leader, and 
     the minority leader of the House of Representatives.
       (2) Digital asset.--The term ``digital asset'' means any 
     digital representation of value, financial asset or 
     instrument, or claim that is used to make payments or 
     investments, or to transmit or exchange funds or the 
     equivalent thereof, and is issued or represented in digital 
     form through the use of distributed ledger technology.
       (3) Digital asset trading platform.--The term ``digital 
     asset trading platform'' means a person, or group of persons, 
     that operates as an exchange or other trading facility for 
     the purchase, sale, lending, or borrowing of digital assets.
       (4) Digital asset transaction facilitator.--The term 
     ``digital asset transaction facilitator'' means--
       (A) any person, or group of persons, that significantly and 
     materially facilitates the purchase, sale, lending, 
     borrowing, exchange, custody, holding, validation, or 
     creation of digital assets on the account of others, 
     including any communication protocol, decentralized finance 
     technology, smart contract, or other software, including 
     open-source computer code--

[[Page S2524]]

       (i) deployed through the use of distributed ledger or any 
     similar technology; and
       (ii) that provides a mechanism for multiple users to 
     purchase, sell, lend, borrow, or trade digital assets; and
       (B) any person, or group of persons, that the Secretary of 
     the Treasury otherwise determines to be significantly and 
     materially facilitating digital assets transactions in 
     violation of sanctions.
       (5) Foreign person.--The term ``foreign person'' means an 
     individual or entity that is not a United States person.
       (6) United states person.--The term ``United States 
     person'' means--
       (A) an individual who is a United States citizen or an 
     alien lawfully admitted for permanent residence to the United 
     States; or
       (B) an entity organized under the laws of the United States 
     or any jurisdiction within the United States, including a 
     foreign branch of such an entity.

     SEC. __03. IMPOSITION OF SANCTIONS WITH RESPECT TO THE USE OF 
                   DIGITAL ASSETS TO FACILITATE TRANSACTIONS BY 
                   RUSSIAN PERSONS SUBJECT TO SANCTIONS.

       (a) Report Required.--Not later than 90 days after the date 
     of enactment of this Act, and periodically thereafter as 
     necessary, the President shall submit to Congress a report 
     identifying any foreign person that--
       (1) operates a digital asset trading platform or is a 
     digital asset transaction facilitator; and
       (2)(A) has significantly and materially assisted, 
     sponsored, or provided financial, material, or technological 
     support to, or has provided goods or services to or in 
     support of, any person with respect to which sanctions have 
     been imposed by the United States relating to the Russian 
     Federation, including by facilitating transactions that evade 
     such sanctions; or
       (B) is owned or controlled by, or is acting or purporting 
     to act for or on behalf of, any person with respect to which 
     sanctions have been imposed by the United States relating to 
     the Russian Federation.
       (b) Imposition of Sanctions.--The President may exercise 
     all of the powers granted to the President under the 
     International Emergency Economic Powers Act (50 U.S.C. 1701 
     et seq.) to the extent necessary to block and prohibit all 
     transactions in property and interests in property of a 
     foreign person identified in a report submitted under 
     subsection (a) if such property and interests in property are 
     in the United States, come within the United States, or are 
     or come within the possession or control of a United States 
     person.
       (c) Implementation; Penalties.--
       (1) Implementation.--The President may exercise all 
     authorities provided under sections 203 and 205 of the 
     International Emergency Economic Powers Act (50 U.S.C. 1702, 
     1704) to carry out this section.
       (2) Penalties.--A person that violates, attempts to 
     violate, conspires to violate, or causes a violation of this 
     section or any regulation, license, or order issued to carry 
     out this section shall be subject to the penalties set forth 
     in subsections (b) and (c) of section 206 of the 
     International Emergency Economic Powers Act (50 U.S.C. 1705) 
     to the same extent as a person that commits an unlawful act 
     described in subsection (a) of that section.
       (d) National Security Waiver.--The President may waive the 
     imposition of sanctions under this section with respect to a 
     person if the President--
       (1) determines that such a waiver is in the national 
     security interests of the United States; and
       (2) submits to Congress a notification of the waiver and 
     the reasons for the waiver.
       (e) Exceptions.--
       (1) Exception for intelligence activities.--This section 
     shall not apply with respect to activities subject to the 
     reporting requirements under title V of the National Security 
     Act of 1947 (50 U.S.C. 3091 et seq.) or any authorized 
     intelligence activities of the United States.
       (2) Exception relating to importation of goods.--
       (A) In general.--The authority to block and prohibit all 
     transactions in all property and interests in property under 
     subsection (b) shall not include the authority or a 
     requirement to impose sanctions on the importation of goods.
       (B) Good.--In this paragraph, the term ``good'' means any 
     article, natural or manmade substance, material, supply or 
     manufactured product, including inspection and test 
     equipment, and excluding technical data.

     SEC. __04. DISCRETIONARY PROHIBITION OF TRANSACTIONS.

       The Secretary of the Treasury may require that no digital 
     asset trading platform or digital asset transaction 
     facilitator that does business in the United States transact 
     with, or fulfill transactions of, digital asset addresses 
     that are known to be, or could reasonably be known to be, 
     affiliated with persons headquartered or domiciled in the 
     Russian Federation if the Secretary--
       (1) determines that exercising such authority is important 
     to the national interest of the United States; and
       (2) not later than 90 days after the date on which the 
     Secretary exercises the authority described in paragraph (1), 
     submits to the appropriate congressional committees and 
     leadership a report on the basis for any determination under 
     that paragraph.

     SEC. __05. TRANSACTION REPORTING.

       Not later than 120 days after the date of enactment of this 
     Act, the Financial Crimes Enforcement Network of the 
     Department of the Treasury shall require United States 
     persons engaged in a transaction with a value greater than 
     $10,000 in digital assets through 1 or more accounts outside 
     of the United States to file a report described in section 
     1010.350 of title 31, Code of Federal Regulations, or any 
     successor regulation,using the form described in that 
     section, in accordance with section 5314 of title 31, United 
     States Code.

     SEC. __06. REPORTS.

       (a) In General.--Not later than 120 days after the date of 
     enactment of this Act, the Secretary of the Treasury shall 
     submit to the appropriate congressional committees and 
     leadership a report on the progress of the Department of the 
     Treasury in carrying out this subtitle, including any 
     resources needed by the Department to improve implementation 
     and progress in coordinating with governments of countries 
     that are allies or partners of the United States.
       (b) Other Reports.--
       (1) In general.--Not later than 120 days after the date of 
     enactment of this Act, and annually thereafter, the Secretary 
     of the Treasury shall submit to the appropriate congressional 
     committees and leadership and make publicly available a 
     report identifying the digital asset trading platforms that 
     the Office of Foreign Assets Control of the Department of the 
     Treasury determines to be high risk for sanctions evasion, 
     money laundering, or other illicit activities.
       (2) Petition.--Any exchange included in a report submitted 
     under paragraph (1) may petition the Office of Foreign Assets 
     Control of the Department of the Treasury for removal, which 
     shall be granted upon demonstrating that the exchange is 
     taking steps sufficient to comply with applicable United 
     States law.
                                 ______