II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Digital Asset Anti5 Money Laundering Act of 2022’’. 

6 SEC. 2. DEFINITIONS. 

7 (1) DIGITAL ASSETS.—The term ‘‘digital asset’’ 

8 means an asset that is issued or transferred using 

9 distributed ledger, blockchain technology, or similar 


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1 technology, including but not limited to virtual cur2 rencies, coins, and tokens. 

3 (2) DIGITAL ASSET KIOSK.—The term ‘‘digital 

4 asset kiosk’’ means a stand-alone machine, com5 monly referred to as a digital asset automated teller 

6 machine, that facilitates the buying, selling, and ex7 change of virtual currencies. 

8 (3) DIGITAL ASSET MIXER.—The term ‘‘digital 

9 asset mixer’’ means a website, software, or other 

10 service designed to conceal or obfuscate the origin, 

11 destination, and counterparties of digital asset 

12 transactions. 

13 (4) FINANCIAL INSTITUTION.—The term ‘‘fi14 nancial institution’’ has the meaning given the term 

15 in section 5312(a) of title 31, United States Code. 

16 (5) PRIVACY COIN.—The term ‘‘privacy coin’’ 

17 means a digital asset designed to— 

18 (A) prevent tracing through distributed 

19 ledgers; or 

20 (B) conceal or obfuscate the origin, des21 tination, and counterparties of digital asset 

22 transactions. 

23 SEC. 3. DIGITAL ASSET RULEMAKINGS. 

24 (a) MONEY SERVICE BUSINESS DESIGNATION.—The 

25 Financial Crimes Enforcement Network shall promulgate 


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1 a rule classifying custodial and unhosted wallet providers, 

2 cryptocurrency miners, validators, or other nodes who may 

3 act to validate or secure third-party transactions, inde4 pendent network participants, including MEV searchers, 

5 and other validators with control over network protocols 

6 as money service businesses. 

7 (b) IMPLEMENTATION OF PROPOSED RULE.—Not 

8 later than 120 days after the date of enactment of this 

9 Act, the Financial Crimes Enforcement Network shall fi10 nalize the proposed virtual currency rule (85 Fed. Reg. 

11 83840; relating to requirements for certain transactions 

12 involving convertible virtual currency or digital assets). 

13 (c) REPORTING REQUIREMENTS.—Not later than 

14 120 days after the date of enactment of this Act, the Fi15 nancial Crimes Enforcement Network shall promulgate a 

16 rule that requires United States persons engaged in a 

17 transaction with a value greater than $10,000 in digital 

18 assets through 1 or more accounts outside of the United 

19 States to file a report described in section 1010.350 of 

20 title 31, Code of Federal Regulations, using the form de21 scribed in that section, in accordance with section 5314 

22 of title 31, United States Code. 

23 (d) TREASURY REGULATIONS.—Not later than 120 

24 days after the date of enactment of this Act, the Secretary 


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1 of the Treasury shall promulgate a rule that prohibits fi2 nancial institutions from— 

3 (1) handling, using, or transacting business 

4 with digital asset mixers, privacy coins, and other 

5 anonymity-enhancing technologies, as specified by 

6 the Secretary; and 

7 (2) handling, using, or transacting business 

8 with digital assets that have been anonymized by the 

9 technologies described in paragraph (1). 

10 SEC. 4. EXAMINATION AND REVIEW PROCESS. 

11 (a) TREASURY.—Not later than 2 years after the 

12 date of enactment of this Act, the Secretary of the Treas13 ury, in consultation with the Conference of State Bank 

14 Supervisors and Federal Financial Institutions Examina15 tion Council, shall establish a risk-focused examination 

16 and review process for money service businesses to as17 sess— 

18 (1) the adequacy of antimoney laundering pro19 grams and reporting obligations under subsections 

20 (g) and (h) of section 5318 of title 31, United States 

21 Code; and 

22 (2) compliance with antimoney laundering and 

23 countering the financing of terrorism requirements 

24 under subchapter II of chapter 53 of title 31, United 

25 States Code. 


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1 (b) SEC.—Not later than 2 years after the date of 

2 enactment of this Act, the Securities and Exchange Com3 mission shall establish a dedicated risk-focused examina4 tion and review process for entities regulated by the Com5 mission to assess— 

6 (1) the adequacy of antimoney laundering pro7 grams and reporting obligations under subsections 

8 (g) and (h) of section 5318 of title 31, United States 

9 Code; and 

10 (2) compliance with antimoney laundering and 

11 countering the financing of terrorism requirements 

12 under subchapter II of chapter 53 of title 31, United 

13 States Code. 

14 (c) CFTC.—Not later than 2 years after the date of 

15 enactment of this Act, the Commodity Futures Trading 

16 Commission shall establish a dedicated risk-focused exam17 ination and review process for entities regulated by the 

18 Commission to assess— 

19 (1) the adequacy of antimoney laundering pro20 grams and reporting obligations under subsections 

21 (g) and (h) of section 5318 of title 31, United States 

22 Code; and 

23 (2) compliance with antimoney laundering and 

24 countering the financing of terrorism requirements 


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1 under subchapter II of chapter 53 of title 31, United 

2 States Code. 

3 SEC. 5. DIGITAL ASSET KIOSKS. 

4 (a) IN GENERAL.—Not later than 1 year after the 

5 date of enactment of this Act, the Financial Crimes En6 forcement Network shall require digital asset kiosk owners 

7 and administrators to submit and update the physical ad8 dresses of the kiosks owned or operated by the owner or 

9 administrator every 3 months, as applicable. 

10 (b) GUIDANCE.—Not later than 1 year after the date 

11 of enactment of this Act, the Financial Crimes Enforce12 ment Network shall issue guidance requiring digital asset 

13 kiosk owners and administrators to— 

14 (1) verify the identity of each customer using a 

15 valid form of government-issued identification or 

16 other documentary method, as determined by the 

17 Secretary of the Treasury; and 

18 (2) collect the name, date of birth, physical ad19 dress, and phone number of each counterparty to 

20 the transaction. 

21 (c) REPORTS.— 

22 (1) FINCEN.—Not later than 120 days after 

23 the date of enactment of this Act, the Financial 

24 Crimes Enforcement Network shall issue a report 

25 identifying unlicensed kiosk operators and adminisVerDate Sep 11 2014 05:16 Dec 28, 2022 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S5267.IS S5267

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1 trators, including identification of known unlicensed 

2 operators and estimates of the number and locations 

3 of suspected unlicensed operators, as applicable. 

4 (2) DEA.—Not later than 1 year after the date 

5 of enactment of this Act, the Drug Enforcement Ad6 ministration shall issue a report identifying rec7 ommendations to reduce drug trafficking with digital 

8 asset kiosks. 

9 SEC. 6. AUTHORIZATION OF APPROPRIATIONS. 

10 There are authorized to be appropriated to the Sec11 retary of the Treasury such sums as are necessary to carry 

12 out this Act. 

Æ 


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