#aafth ,,congress #ast ,session ,h4 ,r4 #ef ,,an ,,act ,to establish an ,independent ,financial ,technology ,task ,force to ,combat ,terrorism and ,illicit ,financing1 to provide rewards for information leading to convictions related to terrorist use of digital currencies1 to establish a ,fintech ,leadership in ,innovation and ,financial ,intelligence ,program to encourage the development of tools and programs to combat terrorist and illicit use of digital currencies1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,financial ,technology ,protection ,act4 #b4 ,sense of ,congress ,it is the sense of ,congress that the ,federal ,government should prioritize the investigation of terrorist and illicit use of new financial technology1 including digital currencies4 #c4 ,independent ,financial ,technology ,task ,force to ,combat ,terrorism and ,illicit ,financing 7a7 ,establishment ,there is established the ,independent ,financial ,technology ,task ,force to ,combat ,terrorism and ,illicit ,financing 7the ,task ,force71 which shall consist of-- 7#a7 the ,secretary of the ,treasury1 who shall serve as the head of the ,task ,force2 7#b7 the ,attorney ,general2 7#c7 the ,director of ,national ,intelligence2 7#d7 the ,director of the ,financial ,crimes ,enforcement ,network2 7#e7 the ,director of the ,secret ,service2 7#f7 the ,director of the ,federal ,bureau of ,investigation2 and 7#g7 #f individuals appointed by the ,secretary of the ,treasury1 in consultation with the members of the ,task ,force described under paragraphs 7#b7 through 7#f71 to represent the private sector 7including the banking industry1 nonprofit groups1 and think tanks71 with at least #b of such individuals having experience in the ,fintech industry4 7b7 ,duties ,the ,task ,force shall-- 7#a7 conduct independent research on terrorist and illicit use of new financial technologies1 including digital currencies2 and 7#b7 develop legislative and regulatory proposals to improve counter-terrorist and counter-illicit financing efforts4 7c7 ,annual congressional report ,not later than #a year after the date of the enactment of this ,act1 and annually thereafter1 the ,task ,force shall issue a report to the ,congress containing the findings and determinations made by the ,task ,force in the previous year and any legislative and regulatory proposals developed by the ,task ,force4 #d4 ,rewards for information related to terrorist use of digital currencies 7a7 ,in general ,the ,secretary of the ,treasury1 in consultation with the ,attorney ,general1 shall establish a fund to pay a reward1 not to exceed #dej1jjj1 to any person who provides information leading to the conviction of an individual involved with terrorist use of digital currencies4 7b7 ,use of fines and forfeitures ,with respect to fines and forfeitures related to the conviction of an individual involved with terrorist use of digital currencies1 the ,secretary of the ,treasury shall1 subject to the availability of appropriations made in advance-- 7#a7 use such amounts to pay rewards under this section related to such conviction2 and 7#b7 with respect to any such amounts remaining after payments are made under paragraphs 7#a7 and 7#b71 deposit such amounts in the ,fintech ,leadership in ,innovation and ,financial ,intelligence ,program4 #e4 ,fintech ,leadership in ,innovation and ,financial ,intelligence ,program 7a7 ,establishment ,there is established a program to be known as the ,fintech ,leadership in ,innovation and ,financial ,intelligence ,program1 which shall be funded as provided under section #d7;b77#b74 7b7 ,innovation grants 7#a7 ,in general ,the ,secretary of the ,treasury shall make grants for the development of tools and programs to detect terrorist and illicit use of digital currencies4 7#b7 ,eligible recipients ,the ,secretary may make grants under this subsection to entities located in the ,united ,states1 including academic institutions1 companies1 nonprofit institutions1 individuals1 and any other entities located in the ,united ,states that the ,secretary determines appropriate4 7#c7 ,eligible projects ,with respect to tools and programs described under paragraph 7#a71 in addition to grants for the development of such tools and programs1 the ,secretary may make grants under this subsection to carry out pilot programs using such tools1 the development of test cases using such tools1 and research related to such tools4 7#d7 ,preferences ,in making grants under this subsection1 the ,secretary shall give preference to-- 7,a7 technology that is nonproprietary or that is community commons-based2 7,b7 computer code that is developed and released on an open source basis2 7,c7 tools that are proactive 7such as meeting regulatory requirements under know your customer and anti-money laundering requirements for any entity that has to comply with ,u4,s4 ,government regulations7 vs4 reactive 7such as aiding law enforcement organizations in catching illegal activity after the fact72 and 7,d7 tools and incentives that are on decentralized platforms4 7#e7 ,other requirements 7,a7 ,use of existing global standards ,any new technology developed with a grant made under this subsection shall be based on existing global standards1 such as those developed by the ,internet ,engineering ,task ,force 7,,ietf7 and the ,world ,wide ,web ,consortium 7,w#c;,c74 7,b7 ,supporting existing laws or regulations ,tools and programs developed with a grant made under this subsection shall be in support of existing laws or regulations1 including the ,bank ,secrecy ,act1 and make efforts to balance privacy and anti-money laundering concerns4 7,c7 ,open access requirement ,tools and programs developed with a grant made under this subsection shall be freely accessible and usable by the public4 ,this requirement may be fulfilled by publicly availing application programming interfaces or software development kits4 #f4 ,preventing rogue and foreign actors from evading sanctions 7a7 ,report and strategy with respect to digital currencies and other related emerging technologies 7#a7 ,in general ,not later than #ahj days after the date of the enactment of this ,act1 the ,president1 acting through the ,secretary of ,treasury and in consultation with the ,attorney ,general1 the ,secretary of ,state1 the ,secretary of ,homeland ,security1 the ,director of ,national ,intelligence1 the ,director of the ,office of ,management and ,budget1 and the appropriate ,federal banking agencies and ,federal functional regulators1 shall-- 7,a7 submit to the appropriate congressional committees a report that identifies and describes the potential uses of digital currencies and other related emerging technologies by states1 non-state actors1 and foreign terrorist organizations to evade sanctions1 finance terrorism1 or launder monetary instruments1 and threaten ,united ,states national security2 and 7,b7 develop and submit to the appropriate congressional committees a strategy to mitigate and prevent such illicit use of digital currencies and other related emerging technologies4 7#b7 ,form2 public availability 7,a7 ,form ,the report and strategy required under paragraph 7#a7 shall be submitted in unclassified form1 but may contain a classified annex4 7,b7 ,public availability ,the unclassified portion of such report and strategy shall be made available to the public and posted on the internet website of the ,department of ,treasury-- 7i7 in pre-compressed1 easily downloadable versions that are made available in all appropriate formats2 and 7ii7 in machine-readable format1 if applicable4 7#c7 ,sources of information ,in preparing the report and strategy required under paragraph 7#a71 the ,president may utilize any credible publication1 database1 web-based resource1 and any credible information compiled by any government agency1 nongovernmental organization1 or other entity that is made available to the ,president4 7b7 ,briefing ,not later than #b years after the date of the enactment of this ,act1 the ,secretary of the ,treasury shall brief the appropriate congressional committees on the implementation of the strategy required under subsection 7a74 #g4 ,determination of ,budgetary ,effects ,the budgetary effects of this ,act1 for the purpose of complying with the ,statutory ,pay-,as-,you-,go ,act of #bjaj1 shall be determined by reference to the latest statement titled ,budgetary ,effects of ,,paygo ,legislation for this ,act1 submitted for printing in the ,congressional ,record by the ,chairman of the ,house ,budget ,committee1 provided that such statement has been submitted prior to the vote on passage4 #h4 ,definitions ,for purposes of this ,act3 7#a7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7,a7 the ,committee on ,financial ,services1 the ,committee on the ,judiciary1 the ,permanent ,select ,committee on ,intelligence1 and the ,committee on ,foreign ,affairs of the ,house of ,representatives2 and 7,b7 the ,committee on ,banking1 ,housing1 and ,urban ,affairs1 the ,committee on ,homeland ,security and ,governmental ,affairs1 the ,committee on the ,judiciary1 the ,select ,committee on ,intelligence1 and the ,committee on ,foreign ,relations of the ,senate4 7#b7 ,appropriate ,federal banking agencies ,the term appropriate ,federal banking agencies has the meaning given the term in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7#c7 ,bank ,secrecy ,act ,the term ,bank ,secrecy ,act means-- 7,a7 section #ba of the ,federal ,deposit ,insurance ,act2 7,b7 chapter #b of title ,i of ,public ,law #ia-ejh2 and 7,c7 subchapter ,,ii of chapter #ec of title #ca1 ,united ,states ,code4 7#d7 ,digital currency ,the term digital currency-- 7,a7 means a digital representation of value that-- 7i7 is used as a medium of exchange1 unit of account1 or store of value2 and 7ii7 is not established legal tender1 whether or not denominated in established legal tender2 and 7,b7 does not include-- 7i7 a transaction in which a merchant grants1 as part of an affinity or rewards program1 value that cannot be taken from or exchanged with the merchant for legal tender1 bank credit1 or digital currency2 or 7ii7 a digital representation of value issued by or on behalf of a publisher and used solely within an online game1 game platform1 or family of games sold by the same publisher or offered on the same game platform4 7#e7 ,federal functional regulator ,the term ,federal functional regulator has the meaning given that term in section #eji of the ,gramm-,leach-,bliley ,act 7#ae ,u4,s4,c4 #fhji74 7#f7 ,foreign terrorist organization ,the term foreign terrorist organization means an organization that is designated as a foreign terrorist organization under section #bai of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aahi74 7#g7 ,terrorist ,the term terrorist includes a person carrying out domestic terrorism or international terrorism 7as such terms are defined1 respectively1 under section #bcca of title #ah1 ,united ,states ,code74 ,passed the ,house of ,representatives ,january #bh1 #bjai4;,clerk4