I 

117TH CONGRESS 

2D SESSION H. R. 7067 

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 HOUSE OF REPRESENTATIVES 

MARCH 11, 2022 

Mr. SHERMAN introduced the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committee on Financial 

Services, for a period to be subsequently determined by the Speaker, in 

each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

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 ‘‘Closing Loopholes in 

5 Russia Sanctions Act of 2022’’. 

6 SEC. 2. APPLICABILITY. 

7 This Act applies to any person engaged in the busi8 ness of effecting transactions in digital assets for the acVerDate Sep 11 2014 16:51 Mar 15, 2022 Jkt 029200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7067.IH H7067

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1 count of others, including any communication protocol sys2 tems or other similar systems using decentralized finance 

3 technology or other similar technology to provide trans4 actional services, including digital wallets, digital asset 

5 trading platforms, digital asset exchanges, and digital 

6 asset mining services. 

7 SEC. 3. DEFINITIONS. 

8 In this Act: 

9 (1) DIGITAL ASSETS.—The term ‘‘digital as10 sets’’ includes— 

11 (A) any digital representation of value 

12 which is recorded on a cryptographically se13 cured distributed ledger or any similar tech14 nology, as specified by the Secretary of the 

15 Treasury; and 

16 (B) nonfungible tokens and other digital 

17 assets using blockchain or other similar tech18 nology. 

19 (2) DIGITAL ASSET EXCHANGE.—The term 

20 ‘‘digital asset exchange’’ or ‘‘virtual currency ex21 change’’ includes— 

22 (A) an entity such as a State-licensed 

23 money services business or money transmitting 

24 business, as defined in section 5330 of title 31, 

25 United States Code; and 


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1 (B) a financial institution that exchanges 

2 virtual currency or digital assets. 

3 (3) DIGITAL ASSET WALLETS.—The term ‘‘dig4 ital asset wallets’’ mean interfaces for storing and 

5 transferring digital assets. 

6 (4) FOREIGN PERSON.—The term ‘‘foreign per7 son’’ means an individual or entity that is not a 

8 United States person. 

9 (5) HOSTED WALLETS.—The term ‘‘hosted wal10 let’’ means a digital account hosted by a third-party 

11 financial institution that allows the account holder 

12 to store, send, and receive cryptocurrency and digital 

13 assets. 

14 (6) UNHOSTED WALLETS.—The term 

15 ‘‘unhosted wallets’’ means a digital wallet that is not 

16 hosted by a third-party financial system, including 

17 software hosted on a computer, phone, or other de18 vice of a person. 

19 (7) UNITED STATES PERSON.—The term 

20 ‘‘United States person’’ means— 

21 (A) an individual who is a United States 

22 citizen or an alien lawfully admitted for perma23 nent residence to the United States; or 

24 (B) an entity organized under the laws of 

25 the United States or any jurisdiction within the 


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1 United States, including a foreign branch of 

2 such an entity. 

3 SEC. 4. IMPOSITION OF SANCTIONS WITH RESPECT TO THE 

4 USE OF CRYPTOCURRENCY TO FACILITATE 

5 TRANSACTIONS BY RUSSIAN PERSONS SUB6 JECT TO SANCTIONS. 

7 (a) IN GENERAL.—As soon as practicable after the 

8 date of the enactment of this Act, the President may exer9 cise all of the powers granted to the President under the 

10 International Emergency Economic Powers Act (50 

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

12 prohibit all transactions in property and interests in prop13 erty of a foreign person described in subsection (b) if such 

14 property and interests in property are in the United 

15 States, come within the United States, or are or come 

16 within the possession or control of a United States person. 

17 (b) FOREIGN PERSONS DESCRIBED.—A foreign per18 son described in this subsection is a foreign person— 

19 (1) that operates a digital asset exchange or is 

20 otherwise a part of the digital asset industry; and 

21 (2) that facilitates, directly or indirectly, trans22 actions for any person with respect to which sanc23 tions have been imposed by the United States for ac24 tions relating to the Russian Federation, including 


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1 transactions that facilitate the evasion of such sanc2 tions. 

3 (c) IMPLEMENTATION; PENALTIES.— 

4 (1) IMPLEMENTATION.—The President may ex5 ercise all authorities provided under sections 203 

6 and 205 of the International Emergency Economic 

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

8 this section. 

9 (2) PENALTIES.—A person that violates, at10 tempts to violate, conspires to violate, or causes a 

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

12 order issued to carry out this section shall be subject 

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

14 of section 206 of the International Emergency Eco15 nomic Powers Act (50 U.S.C. 1705) to the same ex16 tent as a person that commits an unlawful act de17 scribed in subsection (a) of that section. 

18 (d) EXCEPTION RELATING TO IMPORTATION OF

19 GOODS.— 

20 (1) IN GENERAL.—The requirement to block 

21 and prohibit all transactions in all property and in22 terests in property under subsection (a) shall not in23 clude the authority or a requirement to impose sanc24 tions on the importation of goods. 


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1 (2) GOOD.—In this subsection, the term ‘‘good’’ 

2 means any article, natural or manmade substance, 

3 material, supply or manufactured product, including 

4 inspection and test equipment, and excluding tech5 nical data. 

6 SEC. 5. VIRTUAL CURRENCY EXCHANGES. 

7 No digital asset exchange that does business in the 

8 United States shall transact with, or fulfill transactions 

9 of, hosted wallets and unhosted wallets or cryptocurrency 

10 addresses that are known to be, or could reasonably be 

11 known to be, affiliated with persons headquartered in the 

12 Russian Federation. 

13 SEC. 6. TRANSACTIONS REPORTS. 

14 (a) IN GENERAL.—Not later than 60 days after the 

15 date of enactment of this Act, the Financial Crimes En16 forcement Network shall require United States taxpayers 

17 holding greater than $10,000 in cryptocurrency in ac18 counts outside of the United States to file a report de19 scribed in section 1010.350 of title 31, Code of Federal 

20 Regulations, using the form described in that section, in 

21 accordance with section 5314 of title 31, United States 

22 Code. 

23 (b) RULEMAKING.—Not later than 60 days after the 

24 date of enactment of this Act, the Secretary of the Treas25 ury shall finalize rulemaking requiring banks and money 


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1 service businesses to submit reports, keep records, and 

2 verify the identity of customers in relation to transactions 

3 involving convertible virtual currency or digital assets held 

4 in unhosted wallets. 

5 SEC. 7. REPORT. 

6 Not later than 60 days after the date of enactment 

7 of this Act, the Secretary of the Treasury shall submit 

8 to Congress a report on the progress of the Department 

9 of the Treasury in carrying out this Act, including any 

10 resources needed by the Department to improve implemen11 tation and progress in coordinating with governments of 

12 countries that are allies or partners of the United States. 

13 SEC. 8. SUNSET. 

14 Sections 4 and 5 shall cease to have effect on the 

15 date on which the President certifies to Congress that all 

16 sanctions imposed by the United States with respect to 

17 the Russian Federation have terminated. 

Æ 


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