,,ii  #aah? ,,congress  #a/ ,session    
,s4 #bcee  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #ah1 #bjbc,mr4   
,re$ 7= himself1 ,mr4 ,r\nds1 ,mr4      
,w>n]1 & ,mr4 ,romney7 introduc$ !      
foll[+ bill2 :i* 0 read twice & ref]r$  
to ! ,committee on ,bank+1 ,h\s+1 &     
,urban ,affairs  ,a ,,bill  ,to cl>ify !
 applicability ( sanctions & antimoney  
laund]+ compliance obligations to ,unit$
 ,/ates p]sons 9 ! dec5traliz$ f9ance   
te*nology sector & virtual curr5cy kiosk
 op]ators1 & = o!r purposes4  #a4 ,%ort 
title ,?is ,act may be cit$ z !         
,crypto-,asset ,national ,security      
,enhancem5t & ,en=cem5t ,act ( #bjbc4   
#b4 ,dec5traliz$ f9ance national        
security enhancem5t  7a7 ,def9itions ,9 
?is section3 7#a7 ,control ,! t]m       
control1 ) respect to a digital asset   
protocol1 includes ! p[]1 directly or   
indirectly1 to direct a *ange 9 !       
comput] code or o!r t]ms gov]n+ !       
op]ation ( ! protocol1 z det]m9$ by !   
,secret>y ( ! ,treasury4 ,su* p[] may be

 ex]cis$ ?r\gh own]%ip ( gov]nance      
tok5s1 adm9i/rator privileges1 ability  
to alt] or upgrade comput] code1 or     
o!rwise4  7#b7 ,digital asset ,! t]m    
digital asset means any digital         
repres5tation ( value t is record$ on a 
cryptographically secur$ di/ribut$ l$g] 
or any simil> te*nology or ano!r        
implem5tation1 :i* 0 design$ & built z  
"p ( a sy/em to lev]age or replace      
block*a91 di/ribut$ l$g] te*nology1 or  
_! d]ivatives4  7#c7 ,digital asset     
protocol ,! t]m digital asset protocol  
means any communication protocol1 sm>t  
contract1 or o!r s(tw>e-- 7,a7 deploy$  
?r\gh ! use ( di/ribut$ l$g] or simil>  
te*nology2 &  7,b7 t provides a me*anism
 = us]s to int]act & agree to ! t]ms ( a
 trade = digital assets4  7#d7 ,digital 
asset protocol back]  7,a7 ,9 g5]al ,!  
t]m digital asset protocol back] means  
any p]son t-- 7i7 holds gov]nance tok5s 
( a digital asset protocol valu$ at m   
?an #be1jjj1jjj 7subject to adju/m5t "u 
subp>agraph 7,b772 or  7ii7 makes-- 7,i7

 an inve/m5t 9 ! developm5t ( a digital 
asset protocol ( #be1jjj1jjj 7subject to
 adju/m5t "u subp>agraph 7,b77 or m2 or 
7,,ii7 any comb9ation ( inve/m5ts 9 !   
developm5t ( a digital asset protocol   
if-- 7aa7 any su* inve/m5t is n less ?an
 #b1ejj1jjj 7subject to adju/m5t "u     
subp>agraph 7,b772 &  7bb7 su*          
inve/m5ts1 9 ! aggregate1 equal or exce$
 #be1jjj1jjj 7subject to adju/m5t "u    
subp>agraph 7,b77 9 any #ab-mon? p]iod4 
7,b7 ,adju/m5t ( ?re%olds ,! ,secret>y (
 ! ,treasury may adju/ any doll> am\nt  
specifi$ 9 clause 7i7 or 7ii7 (         
subp>agraph 7,a7 if1 be=e ! increase    
takes effect1 ! ,secret>y notifies !    
foll[+ committees ( ! increase3 7i7 ,!  
,committee on ,bank+1 ,h\s+1 & ,urban   
,affairs & ! ,committee on ,=eign       
,relations ( ! ,s5ate4  7ii7 ,!         
,committee on ,f9ancial ,s]vices & !    
,committee on ,=eign ,affairs ( ! ,h\se 
( ,repres5tatives4  7,c7 ,valuation (   
gov]nance tok5s  7i7 ,9 g5]al ,=        
purposes ( subp>agraph 7,a71 ! proc$ures

 & crit]ia to be us$ 9 det]m9+ !        
valuation ( gov]nance tok5s may1 z      
det]m9$ by ! ,securities & ,ex*ange     
,commission 9 regulations-- 7,i7 require
 a m9imum trad+ p]iod2  7,,ii7 rely on  
sales 9 a private m>ket2 or  7,,iii7    
rely on second>y m>ket trades ?r\gh a   
f9ancial in/itution 7z def9$ 9 section  
#ajaj4ajj7t7 ( title #ca1 ,code ( ,f$]al
 ,regulations 7or a successor           
regulation774  7ii7 ,consultation       
requir$ ,! ,securities & ,ex*ange       
,commission %all consult ) ! ,secret>y (
 ! ,treasury be=e prescrib+ regulations 
"u clause 7i74  7iii7 ,c]tification     
requir$ ,ea* digital asset protocol     
back] describ$ 9 p>agraph 7#d7 or 9     
section #ecab7;a77#b77;,,aa7 ( title    
#ca1 ,unit$ ,/ates ,code1 z am5d$ by    
subsection 7c7 ( ?is section1 %all      
submit to ! ,securities & ,ex*ange      
,commission & ! ,secret>y ( ! ,treasury 
an annual c]tification ) respect to !   
value ( ! gov]nance tok5s ( ! digital   
asset protocol held by ! digital asset  

protocol back]1 beg9n+ on ! e>li] (--   
7,i7 ! date on :i* ! value ( ^?         
gov]nance tok5s equals or exce$s ! doll>
 am\nt specifi$ 9 subp>agraph 7,a77i71 z
 may be adju/$ by ! ,secret>y ( !       
,treasury2 or  7,,ii7 ! date on :i* !   
,securities & ,ex*ange ,commission or ! 
,secret>y ( ! ,treasury reque/ in=mation
 ab\t ! valuation ( ! gov]nance tok5s4  
7#e7 ,digital asset transaction         
facilitator ,! t]m digital asset        
transaction facilitator means any p]son 
t-- 7,a7 controls a digital asset       
protocol1 z det]m9$ by ! ,secret>y ( !  
,treasury2 or  7,b7 makes available an  
application design$ to facilitate       
transactions us+ a digital asset        
protocol4  7#f7 ,unit$ /ates p]son ,!   
t]m ,unit$ ,/ates p]son means any ,unit$
 ,/ates citiz51 p]man5t resid5t ali51   
entity organiz$ "u ! laws ( ! ,unit$    
,/ates or any jurisdiction )9 ! ,unit$  
,/ates 7includ+ =eign bran*es71 or any  
p]son 9 ! ,unit$ ,/ates4  7b7           
,applicability ( sanctions compliance   

obligations to unit$ /ates p]sons 9 !   
dec5traliz$ f9ance sector  7#a7 ,9 g5]al
 ,9 ! case ( a violation describ$ 9     
p>agraph 7#b7 t is conduct$ ?r\gh ! use 
( a digital asset protocol1 ea* p]son   
describ$ 9 p>agraph 7#c7 %all be subject
 to ! p5alties set =? 9 subsections 7b7 
& 7c7 ( section #bjf ( ! ,int]national  
,em]g5cy ,economic ,p[]s ,act 7#ej      
,u4,s4,c4 #agje7 to ! same ext5t z a    
p]son t commits an unlawful act describ$
 9 subsection 7a7 ( t section4  7#b7    
,violations describ$ ,a violation       
describ$ 9 ?is p>agraph is a violation (
 a lic5se1 ord]1 regulation1 or         
prohibition issu$ to implem5t sanctions 
adm9i/]$ by ! ,(fice ( ,=eign ,assets   
,control4  7#c7 ,p]sons describ$ ,a     
p]son describ$ 9 ?is p>agraph is a      
,unit$ ,/ates p]son t is a digital asset
 transaction facilitator or a digital   
asset protocol back] ( a digital asset  
protocol us$ 9 a violation describ$ 9   
p>agraph 7#b74  7#d7 ,exemption =       
controll$ dec5traliz$ f9ance protocols  

,a digital asset protocol back] %all n  
be subject to p>agraph 7#a7 = a         
violation describ$ 9 p>agraph 7#b7 if ! 
,secret>y has det]m9$ t ! digital asset 
protocol is controll$ by a digital asset
 transaction facilitator or by ano!r    
p]son1 :o may be appo9t$ by contract or 
ano!r means4  7#e7 ,applicability       
,p>agraph 7#a7 %all apply ) respect to  
violations describ$ 9 p>agraph 7#b7 t   
occur on or aft] ! date t is #ij days   
aft] ! date ( ! enactm5t ( ?is ,act4    
7c7 ,bank secrecy act application to !  
dec5traliz$ f9ance sector  7#a7 ,9 g5]al
 ,section #ecab7;a77#b7 ( title #ca1    
,unit$ ,/ates ,code1 z am5d$ by section 
#faaj7;a77#a7 ( ! ,anti-,money ,laund]+ 
,act ( #bjbj 7division ,f ( ,public ,law
 #aaf-bhc71 is am5d$-- 7,a7 9           
subp>agraph 7,z71 by /rik+ or at ! end2 
7,b7 by r$esignat+ subp>agraph 7,,aa7 z 
subp>agraph 7,,bb72 &  7,c7 by ins]t+   
aft] subp>agraph 7,z7 ! foll[+3 7,,aa7 a
 digital asset transaction facilitator  
or a digital asset protocol back] ( a   

digital asset protocol2 or 4  7#b7      
,effective date ,subp>agraph 7,,aa7 (   
section #ecab7;a77#b7 ( title #ca1      
,unit$ ,/ates ,code1 z add$ by          
subsection 7a71 %all take effect on !   
day aft] ! effective date ( ! f9al rules
 issu$ by ! ,secret>y ( ! ,treasury     
pursuant to section #faaj7;b7 ( !       
,anti-,money ,laund]+ ,act ( #bjbj      
7division ,f ( ,public ,law #aaf-bhc74  
7#c7 ,exemption = controll$ dec5traliz$ 
f9ance protocols ,! ,secret>y ( !       
,treasury may ex]cise ! exemptive       
au?ority "u section #ecah7;a77#g7 (     
title #ca1 ,unit$ ,/ates ,code1 )       
respect to a digital asset protocol     
back] ( a digital asset protocol1 if--  
7,a7 ! ,secret>y ( ! ,treasury f9ds t   
su* digital asset protocol is controll$ 
by a digital asset transaction          
facilitator or by ano!r p]son1 :o may be
 appo9t$ ?r\gh contract or o!r means2 & 
7,b7 ! digital asset transaction        
facilitator or o!r p]son describ$ 9     
subp>agraph 7,a7 is subject to !        

requirem5ts "u ?is section & regulations
 prescrib$ "u ?is section = transactions
 conduct$ ?r\gh ! use ( su* digital     
asset protocol4  #c4 ,prohibitions or   
conditions on c]ta9 transmittals ( funds
 ,section #ecah;,a ( title #ca1 ,unit$  
,/ates ,code1 is am5d$-- 7#a7 9         
subsection 7a77#b77;,c71 by /rik+       
subsection 7b77#e7 & ins]t+ p>agraphs   
7#e7 & 7#f7 ( subsection 7b72 &  7#b7 9 
subsection 7b7-- 7,a7 9 p>agraph 7#e71  
by /rik+ = or on behalf ( a =eign bank+ 
in/itution2 &  7,b7 by add+ at ! end !  
foll[+3  7#f7 ,prohibitions or          
conditions on c]ta9 transmittals ( funds
 ,if ! ,secret>y f9ds a jurisdiction    
outside ( ! ,unit$ ,/ates1 #a or m      
f9ancial in/itutions op]at+ outside ( ! 
,unit$ ,/ates1 #a or m types ( acc\nts  
)91 or involv+1 a jurisdiction outside (
 ! ,unit$ ,/ates1 or #a or m classes (  
transactions )91 or involv+1 a          
jurisdiction outside ( ! ,unit$ ,/ates  
to be ( prim>y money laund]+ conc]n1 !  
,secret>y1 9 consultation ) ! ,secret>y 

( ,/ate1 ! ,attorney ,g5]al1 & !        
,*airman ( ! ,bo>d ( ,gov]nors ( !      
,f$]al ,res]ve ,sy/em1 may prohibit1 or 
impose conditions ^u1 c]ta9 transmittals
 ( funds 7to be def9$ by ! ,secret>y71  
to or f any dome/ic f9ancial in/itution 
or dome/ic f9ancial ag5cy if su*        
transmittal ( funds involves any su*    
jurisdiction1 in/itution1 class (       
transaction1 or type ( acc\nt4  4  #d4  
,virtual curr5cy kiosk national security
 enhancem5t  7a7 ,def9itions ,9 ?is     
section3 7#a7 ,virtual curr5cy ,! t]m   
virtual curr5cy means any digital       
repres5tation ( value t is record$ on a 
cryptographically secur$ di/ribut$ l$g] 
or any simil> te*nology or ano!r        
implem5tation1 :i* 0 design$ & built z  
"p ( a sy/em to lev]age or replace      
block*a91 di/ribut$ l$g] te*nology1 or  
_! d]ivatives4  7#b7 ,virtual curr5cy   
transf] ,! t]m virtual curr5cy transf]  
means a )drawal1 ex*ange1 or o!r paym5t 
or transf] t involves a transaction 9   
virtual curr5cy4  7#c7 ,virtual curr5cy 

kiosk ,! t]m virtual curr5cy kiosk means
 a /&-alone ma*9e t facilitates a       
virtual curr5cy transf]4  7#d7 ,virtual 
curr5cy kiosk op]ator ,! t]m virtual    
curr5cy kiosk op]ator means any p]son :o
 op]ates a virtual curr5cy kiosk at :i* 
consum]s initiate virtual curr5cy       
transf]s4  7b7 ,antimoney laund]+  7#a7 
,9 g5]al ,except z provid$ 9 p>agraph   
7#b71 be=e effect+ any virtual curr5cy  
transf]1 a virtual curr5cy kiosk op]ator
 %all v]ify & record1 at a m9imum1 ! "n 
& physical address ( !-- 7,a7 consum]1  
:i* %all include review ( an (ficial    
docum5t evid5c+ nationality or resid5ce 
t includes a photograph ( ! consum]2 &  
7,b7 c\nt]p>ty to su* transf]4  7#b7    
,exception ,p>agraph 7#a7 %all n apply  
to a c\nt]p>ty describ$ 9 p>agraph      
7#a77;,b7 t conducts a virtual curr5cy  
transf] us+ a wallet held at a f9ancial 
in/itution1 z def9$ 9 section #ecab (   
title #ca1 ,unit$ ,/ates ,code1 t is    
subject to ! requirem5ts ( sub*apt] ,,ii
 ( title #ca1 ,unit$ ,/ates ,code4  7c7 

,rulemak+ ,n lat] ?an #cfj days aft] !  
date ( enactm5t ( ?is ,act1 ! ,f9ancial 
,crimes ,en=cem5t ,network %all         
promulgate regulations requir+ ea*      
virtual curr5cy kiosk op]ator to-- 7#a7 
furni% to ! ,f9ancial ,crimes ,en=cem5t 
,network a li/ ( ! locations1 includ+   
physical addresses1 ( all virtual       
curr5cy kiosks t are own$ or op]at$ by  
su* op]ator2 &  7#b7 update ! li/       
describ$ 9 p>agraph 7#a7 e #ij days4