,i  #aai? ,,congress  #a/ ,session  ,h4 
,r4 #dcid  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,july #ae1 #bjbe,mr4  
,ca/5 introduc$ ! foll[+ bill2 :i* 0    
ref]r$ to ! ,committee on ,f9ancial     
,s]vices  ,a ,,bill  ,to require !      
,secret>y ( ! ,treasury to develop a    
public-private p>tn]%ip program to      
exam9e innovative anti-money laund]+    
solutions = dec5traliz$ f9ance s]vices1 
& = o!r purposes4  #a4 ,%ort title  ,?is
 ,act may be cit$ z ! ,compliant        
,op]ations ( ,dec5traliz$ ,entities ,act
 ( #bjbe or ! ! ,,code ,act ( #bjbe4    
#b4 ,f9d+s ,! ,congress f9ds ! foll[+3  
7#a7 ,9 #bjai1 "u ! ,trump              
,adm9i/ration1 ! ,f9ancial ,crimes      
,en=cem5t ,network issu$ guidance       
7,,f9-#bjai-;,g#jja7 to cl>ify t        
dec5traliz$ f9ance applications may be  
requir$ to regi/] ) ! ag5cy & comply ) !
 ,bank ,secrecy ,act1 includ+ anti-money
 laund]+1 recordkeep+1 & report+        
requirem5ts4  7#b7 ,9 #bjai1 "u ! ,trump
 ,adm9i/ration1 ! ,f9ancial ,crimes     

,en=cem5t ,network publi%$ an advisory  
7,,f9-#bjai-;,a#jjc7 not+ t ! preval5ce 
( unregi/]$ cryptocurr5cy entities )\t  
suffici5t anti-money laund]+ controls   
enables illicit activity t ?reat5s      
national security4  7#c7 ,9 #bjbb1 "u ! 
,bid5 ,adm9i/ration1 ! ,f$]al ,bureau ( 
,inve/igation publi%$ a public s]vice   
ann\ncem5t 7,i-#jhbibb-,,psa7 enc\rag+  
dec5traliz$ f9ance s]vices to in/itute  
real-"t analytics1 monitor+1 & rigor\s  
te/+ ( ! comput] code to m quickly      
id5tify vuln]abilities & respond to     
indicators ( suspici\s activity4  7#d7  
,9 #bjbc1 "u ! ,bid5 ,adm9i/ration1 !   
,commodity ,futures ,trad+ ,commission  
issu$ a report 7,dec5traliz$ ,f9ance71  
advocat+ = build+ regulatory compliance 
into dec5traliz$ f9ance sy/ems & not+ t 
areas l illicit f9ance compliance &     
cyb]security are ripe = ?is k9d (       
ne>-t]m action by s(tw>e develop]s4     
7#e7 ,dec5traliz$ f9ance s]vices may be 
subject to ,bank ,secrecy ,act          
requirem5ts1 b !re is a lack (          

/&>dization across dec5traliz$ f9ance   
s]vices & compliance processes4  7#f7   
,dec5traliz$ f9ance s]vices pres5t      
unique cyb]security risks & h be5       
vuln]able to exploitation campaigns by  
,nor? ,korean ?reat actors4  7#g7       
,dec5traliz$ f9ance s]vices & ! broad]  
cryptocurr5cy ecosy/em c\ld b5efit f a  
set ( te*nological controls t are       
coh]5t1 consi/5t1 & capable ( satisfy+  
,bank ,secrecy ,act requirem5ts4  #c4   
,public-private p>tn]%ip program =      
dec5traliz$ f9ance s]vices  7a7 ,9 g5]al
 ,n lat] ?an #f mon?s aft] ! date (     
enactm5t ( ?is ,act1 ! ,secret>y ( !    
,treasury1 9 consultation ) ! ,f9ancial 
,crimes ,en=cem5t ,network1 ! ,(fice (  
,=eign ,assets ,control1 ! ,f$]al       
,bureau ( ,inve/igation1 ! ,unit$ ,/ates
 ,secret ,s]vice1 ! ,national ,in/itute 
( ,/&>ds & ,te*nology1 ! ,cyb]security &
 ,infra/ructure ,security ,ag5cy1 & su* 
o!r relevant ag5cies z det]m9$ by !     
,secret>y ( ! ,treasury1 %all develop a 
public-private p>tn]%ip program )       

dec5traliz$ f9ance s]vices & relevant   
risk managem5t exp]ts to-- 7#a7 focus on
 dec5traliz$ f9ance applications &      
front-end us] int]faces2  7#b7 consid]  
integrat+ anti-money laund]+1 id5tity   
v]ification1 sanctions1 & cyb]security  
controls & o!r te*nological solutions   
into dec5traliz$ sm>t contracts prior to
 deploym5t on a public block*a9 network2
  7#c7 te/ ! capabilities ( su*         
integrat$ controls 9 dec5traliz$ sm>t   
contracts2  7#d7 consid] e/abli%+ a     
regulatory gateway to ext]nal1 v]ifiable
 data inputs & outputs t are capable (  
upgrad+ sm>t contract behavior aft] x   
has be5 deploy$2 &  7#e7 provide        
legislative & regulatory recomm5dations 
relat$ to integrat$ compliance me*anisms
 = dec5traliz$ f9ance s]vices4  7b7     
,prohibition on c]ta9 p>ticipants       
,p>ticipants select$ = ! public-private 
p>tn]%ip program requir$ "u subsection  
7a7 %all n include a dec5traliz$ f9ance 
s]vice own$ or controll$1 directly or   
indirectly1 by a cov]$ p]son4  7c7      

,sunset ,! public-private p>tn]%ip      
program develop$ "u subsection 7a7 %all 
t]m9ate #ah mon?s aft] ! date ( enactm5t
 ( ?is ,act4  7d7 ,rule ( con/ruction   
,no?+ 9 subsection 7a7 %all be con/ru$  
to limit1 impair1 or o!rwise affect !   
sup]visory1 regulatory1 or en=cem5t     
au?ority or ! jurisdiction ( ! ag5cies  
describ$ 9 subsection 7a7 "u any        
applicable law4  7e7 ,int]ag5cy         
coord9ation ,! ,secret>y ( ! ,treasury  
%all %>e ! recomm5dations provid$       
pursuant to subsection 7a77#e7 ) o!r    
appropriate ag5cies1 & su* ag5cies %all 
take ! recomm5dations into acc\nt :5    
issu+ rules or c>ry+ out sup]visory     
functions4  #d4 ,fin,c,e,n advisory ,n  
lat] ?an #ah mon?s aft] ! date (        
enactm5t ( ?is ,act1 ! ,f9ancial ,crimes
 ,en=cem5t ,network %all publi% an      
advisory relat$ to ! responsible        
developm5t1 deploym5t1 & ongo+ op]ation 
( dec5traliz$ f9ance s]vices on a public
 block*a9 network = ! purposes ( /r5g!n+
 compliance ) ! ,bank ,secrecy ,act4    

#e4 ,rulemak+ to mod]nize & /r5g!n ,bank
 ,secrecy ,act requirem5ts = dec5traliz$
 f9ance s]vices ,n lat] ?an #cj mon?s   
aft] ! date ( enactm5t ( ?is ,act1 !    
,secret>y ( ! ,treasury %all issue a    
rule to--  7#a7 fur!r def9e ! t]ms      
dec5traliz$ f9ance s]vice & dec5traliz$ 
sm>t contract2 &  7#b7 expressly require
 t a dec5traliz$ f9ance s]vice implem5ts
 & ma9ta9s--  7,a7 a risk-bas$          
anti-money laund]+ program t meets !    
requirem5ts "u ! ,bank ,secrecy ,act2 & 
7,b7 a risk-bas$ sanctions compliance   
program4  #f4 ,def9itions ,9 ?is ,act3  
7#a7 ,bank ,secrecy ,act ,! t]m ,bank   
,secrecy ,act means--  7,a7 section #ba 
( ! ,f$]al ,deposit ,insurance ,act 7#ab
 ,u4,s4,c4 #ahbi;b72  7,b7 *apt] #b (   
title ,i ( ,public ,law #ia-ejh 7#ab    
,u4,s4,c4 #aiea et seq472 &  7,c7       
sub*apt] ,,ii ( *apt] #ec ( title #ca1  
,unit$ ,/ates ,code4  7#b7 ,cov]$ p]son 
,! t]m cov]$ p]son means--  7,a7 !      
,presid5t2  7,b7 ! ,vice ,presid5t2     
7,c7 a ,memb] ( ,congress2  7,d7 a s5ior

 executive bran* employee2 or  7,e7 !   
sp\se1 *ild1 son-9-law1 or              
daught]-9-law1 z det]m9$ "u applicable  
common law1 ( any individual describ$ 9 
subp>agraph 7,a71 7,b71 7,c71 or 7,d74  
7#c7 ,dec5traliz$ f9ance s]vice ,! t]m  
dec5traliz$ f9ance s]vice means a       
protocol1 application1 or s]vice t1     
?r\gh ! use ( dec5traliz$ sm>t contracts
 deploy$ on a public block*a9 network1  
facilitates digital asset transactions  
or ! ex*ange ( digital assets = o!r     
digital assets or fiat curr5cy & may    
include--  7,a7 a pe]-to-pe] digital    
asset trad+ plat=m2  7,b7 a digital     
asset l5d+ protocol2  7,c7 a digital    
asset /ak+ or liquidity s]vice2  7,d7 a 
digital asset mix+ s]vice2  7,e7 a      
cross-*a9 bridge s]vice provid]2 or     
7,f7 any o!r dec5traliz$ f9ance s]vice  
det]m9$ by ! ,secret>y ( ! ,treasury4   
7#d7 ,dec5traliz$ sm>t contract ,! t]m  
dec5traliz$ sm>t contract means a       
digital contract or collections (       
comput] code on a public block*a9       

network t are automatically execut$ if  
specific conditions are met4  7#e7      
,public block*a9 network ,! t]m public  
block*a9 network means an op5 s\rce1    
dec5traliz$1 p]missionless di/ribut$    
l$g] sy/em t records digital asset      
transactions4  7#f7 ,risk managem5t     
exp]t ,! t]m risk managem5t exp]t means 
a p]son or entity ) specializ$ k or     
exp]tise 9 id5tify+1 prev5t+1 & manag+  
illicit f9ance1 cyb]security1 or        
compliance risks associat$ ) dec5traliz$
 f9ance s]vices1 & may include-- 7,a7 an
 id5tity v]ification s(tw>e provid]2    
7,b7 a fraud detection s]vice2  7,c7 a  
block*a9 analytics firm2  7,d7 a sm>t   
contract auditor2  7,e7 a block*a9      
oracle s]vice2  7,f7 a block*a9         
cyb]security s]vice2 &  7,g7 any o!r    
relevant risk managem5t exp]ts z det]m9$
 by ! ,secret>y ( ! ,treasury4  7#g7    
,s5ior executive bran* employee ,! t]m  
s5ior executive bran* employee means an 
executive bran* employee-- 7,a7 :o is   
employ$ 9 a position li/$ 9 section     

#ecab ( title #e1 ,unit$ ,/ates ,code1  
or = :i* ! rate ( pay is equal to ! rate
 ( pay payable = level ,i ( ! ,executive
 ,s*$ule2  7,b7 :o is employ$ 9 a       
position-- 7i7 9 ! ,executive ,(fice ( !
 ,presid5t2 &  7ii7 li/$ 9 section #ecac
 ( title #e1 ,unit$ ,/ates ,code1 or =  
:i* ! rate ( pay is equal to ! rate (   
pay payable = level ,,ii ( ! ,executive 
,s*$ule2  7,c7 :o is appo9t$ by !       
,presid5t pursuant to section           
#aje7;a77#b77;,a7 ( title #c1 ,unit$    
,/ates ,code2 or  7,d7 :o is appo9t$ by 
! ,vice ,presid5t pursuant to section   
#ajf7;a77#a77;,a7 ( title #c1 ,unit$    
,/ates ,code4