[Congressional Record Volume 171, Number 124 (Monday, July 21, 2025)]
[House]
[Pages H3509-H3511]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
{time} 1740
FINANCIAL TECHNOLOGY PROTECTION ACT OF 2025
Mr. HILL of Arkansas. Mr. Speaker, I move to suspend the rules and
pass the bill (H.R. 2384) to establish an Independent Financial
Technology Working Group to Combat Terrorism and Illicit Financing, and
for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 2384
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 of 2025''.
SEC. 2. INDEPENDENT FINANCIAL TECHNOLOGY WORKING GROUP TO
COMBAT TERRORISM AND ILLICIT FINANCING.
(a) Establishment.--There is established the Independent
Financial Technology Working Group to Combat Terrorism and
Illicit Financing (in this section referred to as the
``Working Group''), which shall consist of the following:
(1) The Secretary of the Treasury, acting through the Under
Secretary for Terrorism and Financial Crimes, who shall serve
as the chair of the Working Group.
(2) A senior-level representative from each of the
following:
(A) The Department of the Treasury.
(B) The Office of Terrorism and Financial Intelligence.
(C) The Internal Revenue Service.
(D) The Department of Justice.
(E) The Federal Bureau of Investigation.
(F) The Drug Enforcement Administration.
(G) The Department of Homeland Security.
(H) The United States Secret Service.
(I) The Department of State.
(J) The Office of the Director of National Intelligence.
(3) At least five individuals appointed by the Under
Secretary for Terrorism and Financial Crimes to represent the
following:
(A) Financial technology companies.
(B) Blockchain intelligence companies.
(C) Financial institutions.
(D) Institutions or organizations engaged in research.
(E) Institutions or organizations focused on individual
privacy and civil liberties.
(4) Such additional individuals as the Secretary of the
Treasury may appoint as necessary to accomplish the duties
described under subsection (b).
(b) Duties.--The Working Group shall--
(1) conduct research on terrorist and illicit use of
digital assets and other related emerging technologies; and
(2) develop legislative and regulatory proposals to improve
anti-money laundering, counter-terrorist, and other counter-
illicit financing efforts in the United States.
(c) Reports.--
(1) In general.--Not later than one year after the date of
the enactment of this Act, and annually for the 3 years
thereafter, the Working Group shall submit to the Secretary
of the Treasury, the heads of each agency represented in the
Working Group pursuant to subsection (a)(2), and the
appropriate congressional committees a report containing the
findings and determinations made by the Working Group in the
previous year and any legislative and regulatory proposals
developed by the Working Group.
(2) Final report.--Before the date on which the Working
Group terminates under subsection (d)(1), the Working Group
shall submit to the appropriate congressional committees a
final report detailing the findings, recommendations, and
activities of the Working Group, including any final results
from the research conducted by the Working Group.
(d) Sunset.--
(1) In general.--The Working Group shall terminate on the
later of--
(A) the date that is 4 years after the date of the
enactment of this Act; or
(B) the date on which the Working Group completes any wind-
up activities described under paragraph (2).
(2) Authority to wind up activities.--If there are ongoing
research, proposals, or other related activities of the
Working Group ongoing as of the date that is 4 years after
the date of the enactment of this Act, the Working Group may
temporarily continue working in order to wind-up such
activities.
(3) Return of appropriated funds.--On the date on which the
Working Group terminates under paragraph (1), any unobligated
funds appropriated to carry out this section shall be
transferred to the Treasury.
SEC. 3. PREVENTING ROGUE AND FOREIGN ACTORS FROM EVADING
SANCTIONS.
(a) Report and Strategy With Respect to Digital Assets 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 the Treasury and in consultation with the head
of each agency represented on the Independent Financial
Technology Working Group to Combat Terrorism and Illicit
Financing pursuant to section 2(a)(2), shall submit to the
appropriate congressional committees a report that
describes--
(A) the potential uses of digital assets and other related
emerging technologies by States, non-State actors, foreign
terrorist organizations, and other terrorist groups to evade
sanctions, finance terrorism, or launder monetary
instruments, and threaten the national security of the United
States; and
(B) a strategy for the United States to mitigate and
prevent the illicit use of digital assets and other related
emerging technologies.
(2) Form of report; public availability.--
(A) In general.--The report required by paragraph (1) shall
be submitted in unclassified form, but may include a
classified annex.
(B) Public availability.--The unclassified portion of each
report required by paragraph (1) shall be made available to
the public and posted on a publicly accessible website of the
Department of the Treasury--
(i) in precompressed, easily downloadable versions, in all
appropriate formats; and
(ii) in machine-readable format, if applicable.
[[Page H3510]]
(3) Sources of information.--In preparing the reports
required by paragraph (1), the President may utilize any
credible publication, database, or 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 by subsection
(a)(1)(B).
SEC. 4. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Banking, Housing, and Urban Affairs,
the Committee on Finance, the Committee on Foreign Relations,
the Committee on Homeland Security and Governmental Affairs,
the Committee on the Judiciary, and the Select Committee on
Intelligence of the Senate; and
(B) the Committee on Financial Services, the Committee on
Foreign Affairs, the Committee on Homeland Security, the
Committee on the Judiciary, the Committee on Ways and Means,
and the Permanent Select Committee on Intelligence of the
House of Representatives.
(2) Blockchain intelligence company.--The term ``blockchain
intelligence company'' means any business providing software,
research, or other services (such as blockchain tracing
tools, geofencing, transaction screening, the collection of
business data, and sanctions screening) that--
(A) support private and public sector investigations and
risk management activities; and
(B) involve cryptographically secured distributed ledgers
or any similar technology or implementation.
(3) Digital asset.--The term ``digital asset'' means any
digital representation of value that is recorded on a
cryptographically secured digital ledger or any similar
technology.
(4) Emerging technologies.--The term ``emerging
technologies'' means the critical and emerging technology
areas listed in the Critical and Emerging Technologies List
developed by the Fast Track Action Subcommittee on Critical
and Emerging Technologies of the National Science and
Technology Council, including any updates to such list.
(5) 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).
(6) Illicit use.--The term ``illicit use'' includes fraud,
darknet marketplace transactions, money laundering, the
purchase and sale of illicit goods, sanctions evasion, theft
of funds, funding of illegal activities, transactions related
to child sexual abuse material, and any other financial
transaction involving the proceeds of specified unlawful
activity (as defined in section 1956(c) of title 18, United
States Code).
(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 gentleman from
Arkansas (Mr. Hill) and the gentlewoman from California (Ms. Waters)
each will control 20 minutes.
The Chair recognizes the gentleman from Arkansas.
General Leave
Mr. HILL of Arkansas. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days to revise and extend their remarks
and include extraneous material on this bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Arkansas?
There was no objection.
Mr. HILL of Arkansas. Mr. Speaker, I yield myself such time as I may
consume.
I rise in strong support of H.R. 2384, the Financial Technology
Protection Act.
Last week, the House passed critical digital asset legislation,
setting the stage for the United States to reclaim our global
leadership position in financial technology on digital assets. This
week, we build on that momentum to further strengthen our role in
global finance.
As our technological world evolves, so must the tools that we use to
combat the potential new threats associated with it.
The Financial Technology Protection Act creates a forum to ensure
that our law enforcement can keep pace with illicit actors seeking to
exploit these technological developments for their own gain.
Mr. Nunn's and Mr. Himes' bill establishes an Independent Financial
Technology Working Group to combat terrorism, money laundering, and
other illicit finance through the use of financial technologies,
including digital assets.
The group will conduct independent research on the illicit use of new
financial technologies and develop legislative and regulatory proposals
to improve anti-money laundering and counterterrorism financing efforts
here in the United States.
This commonsense bill also requires private sector stakeholders to be
members of the working group, bridging a gap between law enforcement
and the private sector and allowing individuals with boots-on-the-
ground experience to inform law enforcement's efforts and strategies.
Because of that, I urge all my colleagues on both sides of the aisle
to join me in supporting this good bill, and I reserve the balance of
my time.
Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume.
I rise in support of H.R. 2384, the Financial Technology Protection
Act sponsored by Representative Nunn and Representative Himes.
This bill seeks to establish the Independent Financial Technology
Working Group to Combat Terrorism and Illicit Financing, and for other
purposes.
This group is made up of both Federal agencies, companies dealing
with financial technology, and companies that engage in researching the
impact of financial technologies in global markets.
It will be tasked with evaluating emerging financial technologies,
including digital assets, to assess their potential use in combating
terrorism and illicit activities. It will conduct research on how bad
actors may exploit these technologies and recommend legal and
regulatory improvements to Congress and relevant agencies.
Additionally, the working group will develop a strategy to address
sanctions, evasion, and other illicit finance concerns.
The bill mandates that the group issue an annual report for 4 years
providing updates on its findings and recommendations.
Why is this needed? We know that Russia has used crypto exchanges and
alternative payment platforms to try to bypass the sanctions imposed
after its brutal and unlawful invasion of Ukraine. Hamas and other
terrorist groups have turned to cryptocurrencies to funnel resources
toward violent operations against innocent civilians as was exposed in
the investigation following the violent October 7 attacks on Israel.
North Korean hackers, operating as arms of the regime, have stolen
billions of dollars in cryptocurrency through cyberattacks, laundering
those funds to bankroll their illegal weapons programs and bypass
international sanctions.
These are not hypothetical risks. These are real, ongoing threats to
our national and global security.
Mr. Speaker, I urge my colleagues to support this bill, and I reserve
the balance of my time.
Mr. HILL of Arkansas. Mr. Speaker, I include in the Record the CBO
estimate for this bill.
H.R. 2384, FINANCIAL TECHNOLOGY PROTECTION ACT OF 2025, AS REPORTED BY
THE HOUSE COMMITTEE ON FINANCIAL SERVICES ON MAY 6, 2025
------------------------------------------------------------------------
By fiscal year, millions of
dollars--
-------------------------------
2025 2025-2030 2025-2035
------------------------------------------------------------------------
Direct Spending (Outlays)............... 0 0 0
Revenues................................ 0 0 0
Increase or Decrease (-) in the Deficit. 0 0 0
Spending Subject to Appropriation * 1 1
(Outlays)..............................
------------------------------------------------------------------------
* = between zero and $500,000.
Increases net direct spending in any of the four
consecutive 10-year periods beginning in 2036? No.
Increases on-budget deficits in any of the four consecutive
10-year periods beginning in 2036? No.
Statutory pay-as-you-go procedures apply? No.
Mandate Effects:
Contains intergovernmental mandate? No.
Contains private-sector mandate? No.
H.R. 2384 would establish a working group within the
Department of the Treasury to research terrorists' use of new
financial technologies, including digital assets, and report
on its findings. The working group would comprise 11 senior-
level representatives from specified agencies in the federal
government and 5 people representing businesses and other
interested organizations. The bill would require the working
group to report within 180 days of enactment on the evasion
of sanctions using digital assets to the Congress and to
report annually to the Congress and other executive branch
agencies about its findings. Under the bill, the working
group would sunset four years after enactment.
Using information about the costs of similar working
groups, CBO estimates that implementing H.R. 2384 would cost
less than
[[Page H3511]]
$500,000 annually, totaling $1 million over the 2025-2030
period for administrative costs; any related spending would
be subject to the availability of appropriated funds.
The CBO staff contact for this estimate is Matthew
Pickford. The estimate was reviewed by H. Samuel Papenfuss,
Deputy Director of Budget Analysis.
Philip L. Swagel,
Director, Congressional Budget Office.
Mr. HILL of Arkansas. Mr. Speaker, I yield such time as he may
consume to the gentleman from Iowa (Mr. Nunn), the author of this bill.
Mr. NUNN of Iowa. Mr. Speaker, I thank Chairman Hill for his
leadership on this, as well as Ranking Member Waters.
I rise today in strong support of H.R. 2384, the Financial Technology
Protection Act of 2025, a bill that I am honored to both lead and
author that was created out of a vast network of partnership on both
sides of the aisle.
Mr. Speaker, as you know, this Congress cemented the United States as
the crypto capital of the world. The leadership of Members of this
Chamber on both sides took meaningful steps to lay a foundation for a
robust digital asset framework, one that fosters innovation, creates
clarity, and protects consumers.
Now we can start making sure that this foundation is built in a safe
and secure way for every American. We build directly on the momentum
and the strength of our national security posture at this very critical
time.
We all know that blockchain technology and digital assets are here to
stay, and it is good that they are here in America. The question is not
whether this technology will shape the future. It is whether the U.S.
or other competitors, particularly those in China and the Chinese
Communist Party, will write the rules of the road for the future.
As a counterintelligence officer, I have seen firsthand how
terrorists and hostile regimes weaponize technology for illicit
finances and cybercrime. That includes the use of anonymous digital
platforms to launder money, to fund terrorism, and to bypass the very
sanctions this Chamber has helped lead.
However, the transparency and traceability of blockchain enhances our
law enforcement's ability to intercept these threats, recover stolen
funds, and deliver justice for everyday Americans.
In fact, just weeks ago, the U.S. Department of Justice used
blockchain analytics to intercept over a quarter of a million dollars
intended to go to deadly Hamas terrorists who would have used it to
threaten U.S. forces in the region.
Last year, the United States, working with our international
partners, utilized blockchain technology to help dismantle a Russian
money laundering scheme that seized more than $22 million in illicit
funds, many of those taken from Americans right here at home.
This is a threat to America's very national security. From dollar-
backed digital assets, we have the ability to help not only defend our
men and women serving on the front line from illicit actors who would
use weapons bought with this technology to threaten them, to the very
mothers, fathers, and grandparents who are being taken advantage of by
foreign actors to steal their money to fund this type of threat.
Mr. Speaker, this bipartisan bill establishes a working group, a task
force of sorts, of key Federal agencies that include our intelligence
experts, private organizations, and private sector leaders who are
experienced in this, all focused on combating terrorism and illicit
finance on digital platforms.
This team is helping to develop the legislative technology infusion
of critical information to help establish the best techniques, tactics,
and procedure to be able to stop this at its very inception.
By preventing money laundering and addressing national security
risks, we are able to help stop the illicit finance activities that do
real harm to the United States.
By passing this bill, we strengthen national security, protect
digital assets, and ensure the next generation of financial and
technological innovation is created right here in the U.S.
I thank Chairman Hill for his leadership and long vision in making
this happen. I particularly express my gratitude to my Democratic
colleague Representative Jim Himes, who is also the ranking member on
the House Intelligence Committee, the HPSCI, and who knows firsthand
the threats that are posed. I also thank Senator Ted Budd, who is
championing this effort in the Senate.
Together, we have worked on this vital legislation for empowering our
government, as well as our private sector leaders to be the vanguard in
protecting our Nation.
{time} 1750
Ms. WATERS. Mr. Speaker, I yield myself the balance of my time to
close.
Mr. Speaker, cybercriminal syndicates, supported by North Korea and
rogue states like Russia, are already exploiting financial technologies
to evade sanctions, fund war and terrorism, and destabilize
democracies. Ignoring these threats is not an option.
This working group is an initial robust approach to gain an
understanding of how to address these terrorism threats and prepare to
meet and predict them.
I thank Representatives Nunn and Himes for introducing this bill, and
I, again, urge my colleagues to support it.
Mr. Speaker, I yield back the balance of my time.
Mr. HILL of Arkansas. Mr. Speaker, I yield myself the balance of my
time.
Mr. Speaker, I rise again in strong support of this bill. Mr. Nunn is
doing good work here, and I appreciate his leadership as a former
counterintelligence officer, someone who has brought that expertise to
his work here in the House.
I appreciate my friend from Connecticut, our distinguished ranking
member of the House Permanent Select Committee on Intelligence, lending
his expertise to this bill. For years we have talked about how do we
fuse private-sector information, like in our financial services sector,
with law enforcement to come up with better strategies to counter
illicit finance, whether it is in trade-based money laundering, the use
of cash, hawala, now digital assets, or just the plain old banking
system. So I thank my friend from Iowa and urge strong bipartisan
support on both sides of the aisle.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Arkansas (Mr. Hill) that the House suspend the rules and
pass the bill, H.R. 2384, 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.
____________________