[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 5267 Introduced in Senate (IS)]
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117th CONGRESS
2d Session
S. 5267
To require the Financial Crimes Enforcement Network to issue guidance
on digital assets, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 15, 2022
Ms. Warren (for herself and Mr. Marshall) introduced the following
bill; which was read twice and referred to the Committee on Banking,
Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To require the Financial Crimes Enforcement Network to issue guidance
on digital assets, 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 ``Digital Asset Anti-Money Laundering
Act of 2022''.
SEC. 2. DEFINITIONS.
(1) Digital assets.--The term ``digital asset'' means an
asset that is issued or transferred using distributed ledger,
blockchain technology, or similar technology, including but not
limited to virtual currencies, coins, and tokens.
(2) Digital asset kiosk.--The term ``digital asset kiosk''
means a stand-alone machine, commonly referred to as a digital
asset automated teller machine, that facilitates the buying,
selling, and exchange of virtual currencies.
(3) Digital asset mixer.--The term ``digital asset mixer''
means a website, software, or other service designed to conceal
or obfuscate the origin, destination, and counterparties of
digital asset transactions.
(4) Financial institution.--The term ``financial
institution'' has the meaning given the term in section 5312(a)
of title 31, United States Code.
(5) Privacy coin.--The term ``privacy coin'' means a
digital asset designed to--
(A) prevent tracing through distributed ledgers; or
(B) conceal or obfuscate the origin, destination,
and counterparties of digital asset transactions.
SEC. 3. DIGITAL ASSET RULEMAKINGS.
(a) Money Service Business Designation.--The Financial Crimes
Enforcement Network shall promulgate a rule classifying custodial and
unhosted wallet providers, cryptocurrency miners, validators, or other
nodes who may act to validate or secure third-party transactions,
independent network participants, including MEV searchers, and other
validators with control over network protocols as money service
businesses.
(b) Implementation of Proposed Rule.--Not later than 120 days after
the date of enactment of this Act, the Financial Crimes Enforcement
Network shall finalize the proposed virtual currency rule (85 Fed. Reg.
83840; relating to requirements for certain transactions involving
convertible virtual currency or digital assets).
(c) Reporting Requirements.--Not later than 120 days after the date
of enactment of this Act, the Financial Crimes Enforcement Network
shall promulgate a rule that requires 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.
(d) Treasury Regulations.--Not later than 120 days after the date
of enactment of this Act, the Secretary of the Treasury shall
promulgate a rule that prohibits financial institutions from--
(1) handling, using, or transacting business with digital
asset mixers, privacy coins, and other anonymity-enhancing
technologies, as specified by the Secretary; and
(2) handling, using, or transacting business with digital
assets that have been anonymized by the technologies described
in paragraph (1).
SEC. 4. EXAMINATION AND REVIEW PROCESS.
(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 Federal Financial Institutions
Examination Council, shall establish a risk-focused examination and
review process for money service businesses to assess--
(1) the adequacy of antimoney laundering programs and
reporting obligations under subsections (g) and (h) of section
5318 of title 31, United States Code; and
(2) compliance with antimoney laundering and countering the
financing of terrorism requirements under subchapter II of
chapter 53 of title 31, United States Code.
(b) SEC.--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--
(1) the adequacy of antimoney laundering programs and
reporting obligations under subsections (g) and (h) of section
5318 of title 31, United States Code; and
(2) compliance with antimoney laundering and countering the
financing of terrorism requirements under subchapter II of
chapter 53 of title 31, United States Code.
(c) CFTC.--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 Commission to assess--
(1) the adequacy of antimoney laundering programs and
reporting obligations under subsections (g) and (h) of section
5318 of title 31, United States Code; and
(2) compliance with antimoney laundering and countering the
financing of terrorism requirements under subchapter II of
chapter 53 of title 31, United States Code.
SEC. 5. DIGITAL ASSET KIOSKS.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Financial Crimes Enforcement Network shall require
digital asset kiosk owners and administrators to submit and update the
physical addresses of the kiosks owned or operated by the owner or
administrator every 3 months, as applicable.
(b) Guidance.--Not later than 1 year after the date of enactment of
this Act, the Financial Crimes Enforcement Network shall issue guidance
requiring digital asset kiosk owners and administrators to--
(1) 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; and
(2) collect the name, date of birth, physical address, and
phone number of each counterparty to the transaction.
(c) Reports.--
(1) FinCEN.--Not later than 120 days after the date of
enactment of this Act, the Financial Crimes Enforcement Network
shall issue a 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) DEA.--Not later than 1 year after the date of enactment
of this Act, the Drug Enforcement Administration shall issue a
report identifying recommendations to reduce drug trafficking
with digital asset kiosks.
SEC. 6. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary of the
Treasury such sums as are necessary to carry out this Act.
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