[Congressional Record Volume 170, Number 115 (Thursday, July 11, 2024)]
[Senate]
[Page S5027]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2753. Ms. WARREN submitted an amendment intended to be proposed by 
her to the bill S. 4638, to authorize appropriations for fiscal year 
2025 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:

        TITLE __--DIGITAL ASSET SANCTIONS COMPLIANCE ENHANCEMENT

     SEC. __01. SHORT TITLE.

       This title may be cited as the ``Digital Asset Sanctions 
     Compliance Enhancement Act''.

     SEC. __02. DEFINITIONS.

       In this title:
       (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 assets.--The term ``digital assets'' means any 
     digital representation of value, financial assets and 
     instruments, or claims that are used to make payments or 
     investments, or to transmit or exchange funds or the 
     equivalent thereof, that are 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--
       (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 the 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 for, or 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 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 
     and 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 exercising 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 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, 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 Act, 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.--Not later than 120 days after the date 
     of enactment of this Act, and every year 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. Any exchange included in the report may petition 
     the Office of Foreign Assets Control for removal, which shall 
     be granted upon demonstrating that the exchange is taking 
     steps sufficient to comply with applicable United States law.
                                 ______