[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7067 Introduced in House (IH)]
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117th CONGRESS
2d Session
H. R. 7067
To impose sanctions with respect to the use of cryptocurrency to
facilitate transactions by Russian persons subject to sanctions, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 11, 2022
Mr. Sherman introduced the following bill; which was referred to the
Committee on Foreign Affairs, and in addition to the Committee on
Financial Services, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To impose sanctions with respect to the use of cryptocurrency to
facilitate transactions by Russian persons subject to sanctions, and
for other purposes.
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 ``Closing Loopholes in Russia
Sanctions Act of 2022''.
SEC. 2. APPLICABILITY.
This Act applies to any person engaged in the business of effecting
transactions in digital assets for the account of others, including any
communication protocol systems or other similar systems using
decentralized finance technology or other similar technology to provide
transactional services, including digital wallets, digital asset
trading platforms, digital asset exchanges, and digital asset mining
services.
SEC. 3. DEFINITIONS.
In this Act:
(1) Digital assets.--The term ``digital assets'' includes--
(A) any digital representation of value which is
recorded on a cryptographically secured distributed
ledger or any similar technology, as specified by the
Secretary of the Treasury; and
(B) nonfungible tokens and other digital assets
using blockchain or other similar technology.
(2) Digital asset exchange.--The term ``digital asset
exchange'' or ``virtual currency exchange'' includes--
(A) an entity such as a State-licensed money
services business or money transmitting business, as
defined in section 5330 of title 31, United States
Code; and
(B) a financial institution that exchanges virtual
currency or digital assets.
(3) Digital asset wallets.--The term ``digital asset
wallets'' mean interfaces for storing and transferring digital
assets.
(4) Foreign person.--The term ``foreign person'' means an
individual or entity that is not a United States person.
(5) Hosted wallets.--The term ``hosted wallet'' means a
digital account hosted by a third-party financial institution
that allows the account holder to store, send, and receive
cryptocurrency and digital assets.
(6) Unhosted wallets.--The term ``unhosted wallets'' means
a digital wallet that is not hosted by a third-party financial
system, including software hosted on a computer, phone, or
other device of a person.
(7) 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. 4. IMPOSITION OF SANCTIONS WITH RESPECT TO THE USE OF
CRYPTOCURRENCY TO FACILITATE TRANSACTIONS BY RUSSIAN
PERSONS SUBJECT TO SANCTIONS.
(a) In General.--As soon as practicable after the date of the
enactment of this Act, 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 described in subsection (b) 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.
(b) Foreign Persons Described.--A foreign person described in this
subsection is a foreign person--
(1) that operates a digital asset exchange or is otherwise
a part of the digital asset industry; and
(2) that facilitates, directly or indirectly, transactions
for any person with respect to which sanctions have been
imposed by the United States for actions relating to the
Russian Federation, including transactions that facilitate the
evasion of such sanctions.
(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) Exception Relating to Importation of Goods.--
(1) In general.--The requirement to block and prohibit all
transactions in all property and interests in property under
subsection (a) shall not include the authority or a requirement
to impose sanctions on the importation of goods.
(2) Good.--In this subsection, 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. 5. VIRTUAL CURRENCY EXCHANGES.
No digital asset exchange that does business in the United States
shall transact with, or fulfill transactions of, hosted wallets and
unhosted wallets or cryptocurrency addresses that are known to be, or
could reasonably be known to be, affiliated with persons headquartered
in the Russian Federation.
SEC. 6. TRANSACTIONS REPORTS.
(a) In General.--Not later than 60 days after the date of enactment
of this Act, the Financial Crimes Enforcement Network shall require
United States taxpayers holding greater than $10,000 in cryptocurrency
in 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.
(b) Rulemaking.--Not later than 60 days after the date of enactment
of this Act, the Secretary of the Treasury shall finalize rulemaking
requiring banks and money service businesses to submit reports, keep
records, and verify the identity of customers in relation to
transactions involving convertible virtual currency or digital assets
held in unhosted wallets.
SEC. 7. REPORT.
Not later than 60 days after the date of enactment of this Act, the
Secretary of the Treasury shall submit to Congress 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.
SEC. 8. SUNSET.
Sections 4 and 5 shall cease to have effect on the date on which
the President certifies to Congress that all sanctions imposed by the
United States with respect to the Russian Federation have terminated.
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