II 

117TH CONGRESS 

2D SESSION S. 3867 

To impose sanctions with respect to the use of cryptocurrency to facilitate 

transactions by Russian persons subject to sanctions, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 17, 2022 

Ms. WARREN (for herself, Mr. REED, Mr. WARNER, Mr. TESTER, Ms. 

DUCKWORTH, Ms. STABENOW, Mr. WARNOCK, Mr. VAN HOLLEN, Ms. 

SMITH, Ms. CORTEZ MASTO, and Mr. MENENDEZ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To impose sanctions with respect to the use of 

cryptocurrency to facilitate transactions by Russian persons subject to sanctions, 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 Sanctions 

5 Compliance Enhancement Act of 2022’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 


pbinns on DSKJLVW7X2PROD with BILLS
2 

•S 3867 IS

1 (1) APPROPRIATE CONGRESSIONAL COMMIT2 TEES AND LEADERSHIP.—The term ‘‘appropriate 

3 congressional committees and leadership’’ means— 

4 (A) the Committee on Banking, Housing, 

5 and Urban Affairs, the Committee on Foreign 

6 Relations, and the majority and minority lead7 ers of the Senate; and 

8 (B) the Committee on Financial Services, 

9 the Committee on Foreign Affairs, and the 

10 speaker, the majority leader, and the minority 

11 leader of the House of Representatives. 

12 (2) DIGITAL ASSETS.—The term ‘‘digital as13 sets’’ means any digital representation of value, fi14 nancial assets and instruments, or claims that are 

15 used to make payments or investments, or to trans16 mit or exchange funds or the equivalent thereof, that 

17 are issued or represented in digital form through the 

18 use of distributed ledger technology. 

19 (3) DIGITAL ASSET TRADING PLATFORM.—The 

20 term ‘‘digital asset trading platform’’ means a per21 son, or group of persons, that operates as an ex22 change or other trading facility for the purchase, 

23 sale, lending, or borrowing of digital assets. 


pbinns on DSKJLVW7X2PROD with BILLS
3 

•S 3867 IS

1 (4) DIGITAL ASSET TRANSACTION

2 FACILITATOR.—The term ‘‘digital asset transaction 

3 facilitator’’ means— 

4 (A) any person, or group of persons, that 

5 significantly and materially facilitates the pur6 chase, sale, lending, borrowing, exchange, cus7 tody, holding, validation, or creation of digital 

8 assets on the account of others, including any 

9 communication protocol, decentralized finance 

10 technology, smart contract, or other software, 

11 including open-source computer code— 

12 (i) deployed through the use of dis13 tributed ledger or any similar technology; 

14 and 

15 (ii) that provides a mechanism for 

16 multiple users to purchase, sell, lend, bor17 row, or trade digital assets; and 

18 (B) any person, or group of persons, that 

19 the Secretary of the Treasury otherwise deter20 mines to be significantly and materially facili21 tating digital assets transactions in violation of 

22 sanctions. 

23 (5) FOREIGN PERSON.—The term ‘‘foreign per24 son’’ means an individual or entity that is not a 

25 United States person. 


pbinns on DSKJLVW7X2PROD with BILLS
4 

•S 3867 IS

1 (6) UNITED STATES PERSON.—The term 

2 ‘‘United States person’’ means— 

3 (A) an individual who is a United States 

4 citizen or an alien lawfully admitted for perma5 nent residence to the United States; or 

6 (B) an entity organized under the laws of 

7 the United States or any jurisdiction within the 

8 United States, including a foreign branch of 

9 such an entity. 

10 SEC. 3. IMPOSITION OF SANCTIONS WITH RESPECT TO THE 

11 USE OF DIGITAL ASSETS TO FACILITATE 

12 TRANSACTIONS BY RUSSIAN PERSONS SUB13 JECT TO SANCTIONS. 

14 (a) REPORT REQUIRED.—Not later than 90 days 

15 after the date of the enactment of this Act, and periodi16 cally thereafter as necessary, the President shall submit 

17 to Congress a report identifying any foreign person that— 

18 (1) operates a digital asset trading platform or 

19 is a digital asset transaction facilitator; and 

20 (2)(A) has significantly and materially assisted, 

21 sponsored, or provided financial, material, or techno22 logical support for, or goods or services to or in sup23 port of any person with respect to which sanctions 

24 have been imposed by the United States relating to 


pbinns on DSKJLVW7X2PROD with BILLS
5 

•S 3867 IS

1 the Russian Federation, including by facilitating 

2 transactions that evade such sanctions; or 

3 (B) is owned or controlled by, or acting or pur4 porting to act for or on behalf of any person with 

5 respect to which sanctions have been imposed by the 

6 United States relating to the Russian Federation. 

7 (b) IMPOSITION OF SANCTIONS.—The President may 

8 exercise all of the powers granted to the President under 

9 the International Emergency Economic Powers Act (50 

10 U.S.C. 1701 et seq.) to the extent necessary to block and 

11 prohibit all transactions in property and interests in prop12 erty of a foreign person identified in a report submitted 

13 under subsection (a) if such property and interests in 

14 property are in the United States, come within the United 

15 States, or are or come within the possession or control 

16 of a United States person. 

17 (c) IMPLEMENTATION; PENALTIES.— 

18 (1) IMPLEMENTATION.—The President may ex19 ercise all authorities provided under sections 203 

20 and 205 of the International Emergency Economic 

21 Powers Act (50 U.S.C. 1702 and 1704) to carry out 

22 this section. 

23 (2) PENALTIES.—A person that violates, at24 tempts to violate, conspires to violate, or causes a 

25 violation of this section or any regulation, license, or 


pbinns on DSKJLVW7X2PROD with BILLS
6 

•S 3867 IS

1 order issued to carry out this section shall be subject 

2 to the penalties set forth in subsections (b) and (c) 

3 of section 206 of the International Emergency Eco4 nomic Powers Act (50 U.S.C. 1705) to the same ex5 tent as a person that commits an unlawful act de6 scribed in subsection (a) of that section. 

7 (d) NATIONAL SECURITY WAIVER.—The President 

8 may waive the imposition of sanctions under this section 

9 with respect to a person if the President— 

10 (1) determines that such a waiver is in the na11 tional security interests of the United States; and 

12 (2) submits to Congress a notification of the 

13 waiver and the reasons for the waiver. 

14 (e) EXCEPTIONS.— 

15 (1) EXCEPTION FOR INTELLIGENCE ACTIVI16 TIES.—This section shall not apply with respect to 

17 activities subject to the reporting requirements 

18 under title V of the National Security Act of 1947 

19 (50 U.S.C. 3091 et seq.) or any authorized intel20 ligence activities of the United States. 

21 (2) EXCEPTION RELATING TO IMPORTATION OF

22 GOODS.— 

23 (A) IN GENERAL.—The authority to block 

24 and prohibit all transactions in all property and 

25 interests in property under subsection (b) shall 


pbinns on DSKJLVW7X2PROD with BILLS
7 

•S 3867 IS

1 not include the authority or a requirement to 

2 impose sanctions on the importation of goods. 

3 (B) GOOD.—In this paragraph, the term 

4 ‘‘good’’ means any article, natural or manmade 

5 substance, material, supply or manufactured 

6 product, including inspection and test equip7 ment, and excluding technical data. 

8 SEC. 4. DISCRETIONARY PROHIBITION OF TRANSACTIONS. 

9 The Secretary of the Treasury may require that no 

10 digital asset trading platform or digital asset transaction 

11 facilitator that does business in the United States transact 

12 with, or fulfill transactions of, digital asset addresses that 

13 are known to be, or could reasonably be known to be, af14 filiated with persons headquartered or domiciled in the 

15 Russian Federation if the Secretary— 

16 (1) determines that exercising such authority is 

17 important to the national interest of the United 

18 States; and 

19 (2) not later than 90 days after exercising the 

20 authority described in paragraph (1), submits to the 

21 appropriate congressional committees and leadership 

22 a report on the basis for any determination under 

23 that paragraph. 


pbinns on DSKJLVW7X2PROD with BILLS
8 

•S 3867 IS

1 SEC. 5. TRANSACTION REPORTING. 

2 Not later than 120 days after the date of enactment 

3 of this Act, the Financial Crimes Enforcement Network 

4 shall require United States persons engaged in a trans5 action with a value greater than $10,000 in digital assets 

6 through 1 or more accounts outside of the United States 

7 to file a report described in section 1010.350 of title 31, 

8 Code of Federal Regulations, using the form described in 

9 that section, in accordance with section 5314 of title 31, 

10 United States Code. 

11 SEC. 6. REPORTS. 

12 (a) IN GENERAL.—Not later than 120 days after the 

13 date of enactment of this Act, the Secretary of the Treas14 ury shall submit to the appropriate congressional commit15 tees and leadership a report on the progress of the Depart16 ment of the Treasury in carrying out this Act, including 

17 any resources needed by the Department to improve im18 plementation and progress in coordinating with govern19 ments of countries that are allies or partners of the United 

20 States. 

21 (b) OTHER REPORTS.—Not later than 120 days after 

22 the date of enactment of this Act, and every year there23 after, the Secretary of the Treasury shall submit to the 

24 appropriate congressional committees and leadership and 

25 make publicly available a report identifying the digital 

26 asset trading platforms that the Office of Foreign Assets 


pbinns on DSKJLVW7X2PROD with BILLS
9 

•S 3867 IS

1 Control of the Department of the Treasury determines to 

2 be high risk for sanctions evasion, money laundering, or 

3 other illicit activities. Any exchange included in the report 

4 may petition the Office of Foreign Assets Control for re5 moval, which shall be granted upon demonstrating that 

6 the exchange is taking steps sufficient to comply with ap7 plicable United States law. 

Æ 


pbinns on DSKJLVW7X2PROD with BILLS