,i #aai? ,,congress #b;d ,session ,h4 ,r4 #ajcag ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,septemb] #h1 #bjbf,mr4 ,issa 7= himself & ,mr4 ,good57 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ! ,judici>y ,a ,,bill ,to e/abli% requirem5ts & ov]sight = digital assets 9 ! cu/ody ( ,f$]al ag5cies1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,digital ,asset ,inv5tory & ,audit ,act ( #bjbf or ! ,inv5tory ,act ( #bjbf4 #b4 ,def9itions ,9 ?is ,act3 7#a7 ,cryptographic key mat]ial ,! t]m cryptographic key mat]ial means any cryptographic key1 private key1 public key1 se$ phrase1 recov]y phrase1 mnemonic phrase1 key %>e1 multi-p>ty computation %>e1 au?orization cr$5tial1 digital signature cr$5tial1 cryptographic p>amet]1 or o!r cryptographic in=mation or mat]ial1 :e!r /or$ 9 physical1 electronic1 digital1 or o!r =m1 t is us$ to g5]ate1 d]ive1 au!nticate1 recov]1 au?orize1 validate1 sign1 transf]1 or o!rwise ex]cise cu/ody1 own]%ip1 or control ov] a cryptocurr5cy or o!r di/ribut$ l$g] te*nology-bas$ digital asset4 7#b7 ,digital asset ,! t]m digital asset has ! mean+ giv5 to x 9 section #b ( ! ,g5ius ,act 7#ab ,u4,s4,c4 #eija74 7#c7 ,discov]y & scann+ tool ,! t]m discov]y & scann+ tool means a te*nology s(tw>e specifically design$ to scan digital evid5ce & electronically /or$ in=mation extract$ f comput]s1 s]v]s1 mobile devices1 cl\d environm5ts1 removable m$ia1 or o!r digital /orage sy/ems to locate1 id5tify1 validate1 inv5tory1 classify1 & triage cryptocurr5cy private key mat]ial & o!r cryptocurr5cy-relat$ artifacts = ! purpose ( discov]+ recov]able digital assets & support+ _! audit1 inve/igation1 recov]y1 seizure1 & =feiture4 7#d7 ,electronically /or$ in=mation ,! t]m electronically /or$ in=mation means digital evid5ce1 digital /orage devices1 electronic records1 cl\d-bas$ data1 & any o!r electronically /or$ data4 7#e7 ,f$]al ag5cy ,! t]m ,f$]al ag5cy means any dep>tm5t1 ag5cy1 bureau1 (fice1 or compon5t ( ! ,unit$ ,/ates ,gov]nm5t1 includ+ ! ,dep>tm5t ( ,ju/ice1 ,dep>tm5t ( ! ,treasury1 ,dep>tm5t ( ,homel& ,security1 ,intellig5ce ,community elem5ts1 regulatory ag5cies1 & law en=cem5t ag5cies4 7#f7 ,wallet mat]ial ,! t]m wallet mat]ial means a s(tw>e application1 h>dw>e device1 physical m$ium1 cu/odial s]vice1 digital acc\nt1 or o!r te*nological me*anism us$ to g5]ate1 /ore1 manage1 secure1 access1 recov]1 or utilize digital asset cryptographic key mat]ial or o!r au!ntication cr$5tials = ! purpose ( hold+1 access+1 transf]r+1 receiv+1 or o!rwise ex]cis+ cu/ody or control ov] a cryptocurr5cy or o!r di/ribut$ l$g] te*nology-bas$ digital asset4 ,! t]m includes cu/odial wallets1 non-cu/odial wallets1 h>dw>e wallets1 s(tw>e wallets1 mobile wallets1 web-bas$ wallets1 multi-signature wallets1 multi-p>ty computation wallets1 & any successor te*nologies t p]=m sub/antially simil> functions4 #c4 ,id5tification & safegu>d+ ( digital assets 9 ,f$]al cu/ody 7a7 ,program e/abli%m5t ,n lat] ?an #ahj days aft] enactm5t ( ?is ,act1 ! ,attorney ,g5]al1 9 coord9ation ) ! ,secret>y ( ,homel& ,security1 ! ,secret>y ( ! ,treasury1 & ! ,director ( ,national ,intellig5ce1 %all issue a b9d+ directive applicable to all ,f$]al ag5cies t directs all ,f$]al ag5cies t collect or seize electronically /or$ in=mation su* z digital /orage devices1 electronic records1 & digital evid5ce to-- 7#a7 scan su* electronically /or$ in=mation = high value digital assets 9 ! =m ( cryptocurr5cy private key mat]ial2 7#b7 prop]ly secure ^! assets z soon z practicable ^u electronically /or$ in=mation acquisition2 & 7#c7 conduct annual audits to ov]see activity logs1 ensur+ compreh5sive discov]y1 docum5tation1 & secure h&l+ & /orage ( all digital assets 9 gov]nm5t cu/ody4 7b7 ,scann+ ^u seizure or =feiture ,= ea* crim9al1 civil1 or adm9i/rative case 9 :i* a ,f$]al ag5cy seizes1 =feits1 or o!rwise acquires cu/ody ( electronically /or$ in=mation1 su* ag5cy %all1 z soon z practicable1 scan ! electronically /or$ in=mation = digital assets & associat$ cryptographic key mat]ial4 7c7 ,/&>ds & protocols ,! ,attorney ,g5]al1 9 consultation ) ! ,director ( ! ,national ,in/itute ( ,/&>ds & ,te*nology1 %all develop & publi% te*nical /&>ds gov]n+-- 7#a7 discov]y & scann+ tools ( electronically /or$ in=mation = cryptocurr5cy private keys & wallet mat]ial2 7#b7 secure extraction1 /orage1 & access control ( cryptographic key mat]ials2 7#c7 pres]vation ( *a9 ( cu/ody & evid5ti>y integrity2 & 7#d7 logg+ & monitor+ ( all access to digital asset cu/ody sy/ems4 7d7 ,tra9+ ,! ,attorney ,g5]al %all e/abli% tra9+ programs = ,f$]al law en=cem5t (fic]s1 digital evid5ce cu/odians1 & =5sic exam9]s reg>d+ digital asset discov]y1 h&l+1 /orage1 & audit compliance4 #d4 ,annual digital asset audits 7a7 ,audit requirem5t ,ea* ,f$]al ag5cy t collects1 seizes1 or ma9ta9s cu/ody ( electronically /or$ in=mation %all conduct an annual digital asset audit to-- 7#a7 id5tify & acc\nt = all digital assets & cryptographic mat]ials2 7#b7 v]ify secure cu/ody & access controls2 7#c7 id5tify any loss1 unau?oriz$ access1 or proc$ural defici5cies2 & 7#d7 docum5t corrective actions tak54 7b7 ,report+ ,n lat] ?an #ahj days aft] completion ( ea* annual audit1 ! head ( ea* ,f$]al ag5cy %all submit a report to ! ,attorney ,g5]al & ! ,committees on ! ,judici>y1 ,homel& ,security & ,gov]nm5tal ,affairs1 ,select ,committee on ,intellig5ce1 & ,bank+ ( ! ,s5ate & ! ,committees on ! ,judici>y1 ,homel& ,security1 ,p]man5t ,select ,committee on ,intellig5ce1 & ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives detail+ audit f9d+s & rem$iation measures4 #e4 ,additional audit & ov]sight au?orities 7a7 ,int]nal & ext]nal audits ,9 addition to audits conduct$ by ! ,comptroll] ,g5]al ( ! ,unit$ ,/ates "u section #g1 ! ,inspector ,g5]al ( ! relevant ag5cy1 9 coord9ation ) su* (fice z ! ,inspector ,g5]al det]m9es appropriate or su* monitors z ! c\rt may appo9t1 %all conduct an audit on electronic devices = digital assets & associat$ cryptographic keys4 7b7 ,no limitation ,no?+ 9 ?is ,act %all be con/ru$ to-- 7#a7 limit ! au?ority ( any ,f$]al entity ) lawful audit or ov]sight jurisdiction2 7#b7 au?orize ! collection1 se>*1 seizure1 ret5tion1 review1 disclosure or use ( electronically /or$ in=mation1 digital assets or cryptographic private key mat]ial except z o!rwise au?oriz$ by law2 or 7#c7 limit or impair any "r1 rem$y1 def5se1 privilege1 protection1 suppression argum5t1 or proc$ural requirem5t o!rwise available "u law4 #f4 ,int]ag5cy coord9ation & ov]sight ,! ,attorney ,g5]al %all conv5e an int]ag5cy work+ gr\p to coord9ate digital asset cu/ody practices1 %>e audit f9d+s1 & develop be/ practices across ,f$]al ag5cies4 #g4 ,comptroll] g5]al review 7a7 ,,gao review ,n lat] ?an #a ye>s aft] ! date ( enactm5t ( ?is ,act1 & e #c ye>s !reaft]1 ! ,comptroll] ,g5]al ( ! ,unit$ ,/ates & relevant ,inspector ,g5]al ,(fices %all conduct a review ( ,f$]al ag5cy compliance ) ?is ,act4 7b7 ,report to ,congress ,! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all submit to ,congress a report on ! review conduct$ "u subsection 7a7 conta9+ f9d+s & recomm5dations4 #h4 ,=feiture fund fund+ & appropriations 7a7 ,asset ,=feiture ,fund ,section #ebd7;c77#a7 ( title #bh1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 subp>agraph 7,i71 by /rik+ & at ! end2 7#b7 9 subp>agraph 7,j71 by /rik+ ! p]iod & ins]t+ 2 &2 & 7#c7 by add+ at ! end ! foll[+3 7,k7 paym5ts = ! acquisition ( digital =5sic tools necess>y to c>ry out ! ,inv5tory ,act ( #bjbf4 4 7b7 ,dep>tm5t ( ,treasury ,=feiture ,fund ,section #igje7;a77#a7 ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 7,k7 ,paym5ts = ! acquisition ( digital =5sic tools necess>y to c>ry out ! ,inv5tory ,act ( #bjbf4 4