[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7429 Introduced in House (IH)]
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117th CONGRESS
2d Session
H. R. 7429
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
April 6, 2022
Mr. Sherman (for himself, Mr. Green of Texas, Ms. Dean, Ms. Adams, Ms.
Bourdeaux, Mr. Lawson of Florida, Mr. Cleaver, Mr. Costa, Mr. Doggett,
Mr. Garamendi, Mr. Lieu, Mrs. Carolyn B. Maloney of New York, Mr.
Mfume, Mr. Pappas, Mr. Vargas, and Ms. Wild) introduced the following
bill; which was referred to the Committee on Financial Services, and in
addition to the Committee on Foreign Affairs, 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 ``Russian Digital Asset Sanctions
Compliance Act of 2022''.
SEC. 2. DEFINITIONS.
In this Act:
(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. 3. 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. 4. 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. 5. 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. 6. 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.
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