[Congressional Record Volume 169, Number 120 (Thursday, July 13, 2023)]
[Senate]
[Pages S2847-S2848]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 712. Ms. LUMMIS (for herself, Mrs. Gillibrand, Ms. Warren, and Mr. 
Marshall) 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 appropriate place, insert the following:

                     Subtitle _____--Crypto Assets

     SEC. ___01. ANTI-MONEY LAUNDERING EXAMINATION STANDARDS.

       (a) Treasury.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary of the Treasury, in 
     consultation with the Conference of State Bank Supervisors 
     and the Federal Financial Institutions Examination Council, 
     shall establish a risk-focused examination and review process 
     for money service businesses, as defined in section 1010.100 
     of title 31, Code of Federal Regulations, to assess the 
     following relating to crypto assets--
       (1) the adequacy of reporting obligations and anti-money 
     laundering programs under subsections (g) and (h) of section 
     5318 of title 31, United States Code, respectively as applied 
     to those businesses; and
       (2) compliance of those businesses with anti-money 
     laundering and countering the financing of terrorism 
     requirements under subchapter II of chapter 53 of title 31, 
     United States Code.
       (b) Securities Exchange Commission.--Not later than 2 years 
     after the date of enactment of this Act, the Securities and 
     Exchange Commission shall establish a dedicated risk-focused 
     examination and review process for entities regulated by the 
     Commission to assess the following relating to crypto 
     assets--
       (1) the adequacy of reporting obligations and anti-money 
     laundering programs under subsections (g) and (h) of section 
     5318 of title 31, United States Code, respectively as applied 
     to those entities; and
       (2) compliance of those entities with anti-money laundering 
     and countering the financing of terrorism requirements under 
     subchapter II of chapter 53 of title 31, United States Code.
       (c) Commodity Futures Trading Commission.--Not later than 2 
     years after the date of enactment of this Act, the Commodity 
     Futures Trading Commission shall establish a dedicated risk-
     focused examination and review process for entities regulated 
     by the Commodity Futures Trading Commission to assess the 
     following relating to crypto assets--
       (1) the adequacy of reporting obligations and anti-money 
     laundering programs under subsections (g) and (h) of section 
     5318 of title 31, United States Code, respectively, as 
     applied to those entities; and
       (2) compliance of those entities with anti-money laundering 
     and countering the financing of terrorism requirements under 
     subchapter II of chapter 53 of title 31, United States Code.

     SEC. ___02. CRYPTO ASSET KIOSKS.

       (a) Definition.--In this section, the term ``crypto asset 
     kiosk'' means a stand-alone machine, including a crypto asset 
     automated teller machine, which facilitates the buying, 
     selling, or exchange of crypto assets.
       (b) Update.--Beginning not later than 2 years after the 
     date of enactment of this Act, the Director of the Financial 
     Crimes Enforcement Network of the Department of the Treasury 
     shall require crypto asset kiosk owners and administrators to 
     submit and update the physical addresses of the kiosks owned 
     or operated by the owner or administrator, as applicable, 
     once every 120 days and collect the name, date of birth, 
     physical address, and phone number of each counterparty to a 
     transaction..
       (c) Rulemaking.--Not later than 2 years after the date of 
     enactment of this Act, the Director of the Financial Crimes 
     Enforcement Network of the Department of the Treasury shall 
     issue rules requiring crypto asset kiosk owners and 
     administrators to verify the identity of each customer using 
     a valid form of government-issued identification or other 
     documentary method, as determined by the Secretary of the 
     Treasury.
       (d) Reports.--
       (1) Financial crimes enforcement network.--Not later than 
     180 days after the date of enactment of this Act, the 
     Director of the Financial Crimes Enforcement Network of the 
     Department of the Treasury shall issue a public report 
     identifying unlicensed kiosk operators and administrators, 
     including identification of known unlicensed operators and 
     estimates of the number and locations of suspected unlicensed 
     operators, as applicable.
       (2) Drug enforcement agency.--Not later than 1 year after 
     the date of enactment of this Act, the Drug Enforcement 
     Administration shall issue a report to Congress identifying 
     recommendations to reduce drug trafficking with crypto asset 
     kiosks.

     SEC. ___03. SANCTIONS COMPLIANCE RESPONSIBILITIES OF PAYMENT 
                   STABLECOIN ISSUERS.

       Not later than 120 days after the date of the enactment of 
     this Act, the Secretary of the Treasury shall adopt guidance 
     clarifying the sanctions compliance responsibilities and 
     liability of an issuer of a payment stablecoin with respect 
     to downstream transactions relating to the stablecoin that 
     take place after the stablecoin is first provided to a 
     customer of the issuer.

     SEC. ___04. CRYPTO ASSET MIXERS AND TUMBLERS.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Director of the Financial Crimes 
     Enforcement Network of the Department of the Treasury shall 
     submit to the Committee on Banking, Housing and Urban Affairs 
     of the Senate and the Committee on Financial Services of the 
     House of Representatives a report that analyzes the following 
     issues:
       (1) Current (as of the date on which the report is 
     submitted) typologies of crypto asset mixers and tumblers and 
     historical transaction volume.
       (2) Estimates of the percentage of transactions relating to 
     mixers and tumblers which are used by actors engaged in 
     illicit finance.

[[Page S2848]]

       (3) An assessment of potential non-illicit uses of mixers 
     and tumblers described in paragraph (1).
       (4) Analysis of regulatory approaches employed by other 
     jurisdictions relating to mixers and tumblers.
       (5) Recommendations for legislation or regulation relating 
     to mixers and tumblers.
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