I 
115TH CONGRESS 
2D SESSION 
H. R. 5664 
To require a report on the possible exploitation of virtual currencies by 
terrorist actors, to authorize a competition program to identify regulatory 
solutions and develop technology with respect to counter terror threat 
financing, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 27, 2018 
Miss RICE of New York (for herself and Mr. KING of New York) introduced 
the following bill; which was referred to the Committee on Financial Serv-
ices, and in addition to the Permanent Select Committee on Intelligence 
(Permanent Select), 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 require a report on the possible exploitation of virtual 
currencies by terrorist actors, to authorize a competition 
program to identify regulatory solutions and develop 
technology with respect to counter terror threat financ-
ing, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Stop Terrorist Use 
of Virtual Currencies Act’’. 
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SEC. 2. FINDINGS. 
The Congress finds the following: 
(1) Virtual currencies (VC) provide low-cost, 
high-speed means for verified transactions. 
(2) When used positively, VCs unite disparate 
financial markets and provide a convenient means 
for a number of constituencies, including the eco-
nomically marginalized, to conduct transactions 
cheaply across large geographic expanses. 
(3) Simultaneously, to the extent regulatory 
frameworks are premised on institution-based trans-
actions, VCs could be exploited by terrorists and 
cybercriminals to fund untraceable operations. 
(4) According to the Center for New American 
Security (CNAS), if VCs become sufficiently liquid 
and easily convertible, and terrorist groups acquire 
technical infrastructure needed to support VC activ-
ity at a significant scale, VCs could pose a highly 
dangerous threat to the United States and its part-
ners. 
(5) The Committee on Financial Services issued 
a report entitled, ‘‘Stopping Terror Finance: Secur-
ing the U.S. Financial Sector’’ in December, 2016, 
which includes numerous recommendations to en-
hance a whole-of-government approach towards 
counter terrorist financing. 
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SEC. 3. SENSE OF CONGRESS. 
It is the Sense of Congress that— 
(1) to the extent current statutes require finan-
cial institutions to serve as the first line of defense 
against illicit activity in the global financial system, 
and that VCs specifically bypass such institutions, 
the United States needs to adapt its financial regu-
latory framework to ensure adequate supervision of 
financial activity; 
(2) the President should develop principles to 
prioritize counter terrorist financing among other 
forms of illicit financial activity and provide rec-
ommendations to Congress to address this threat; 
(3) such principles should include a focus on in-
novation and public-private partnership; and 
(4) the Financial Crimes Enforcement Network 
(FinCEN) should consider issuing more guidance 
and facilitating the establishment of institutions pur-
suant to sections 314(a) and 314(b) of the USA PA-
TRIOT Act to facilitate greater information flow 
within and among global banks. 
SEC. 4. REPORT. 
The President, acting through the Secretary of the 
Treasury and the Director of National Intelligence, shall 
report on the possible exploitation of virtual currencies by 
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terrorist actors. Such report shall include the following 
elements: 
(1) Recommendations to update the regulatory 
oversight structure regarding virtual currencies to 
address transactions that bypass financial institu-
tions, including banks, Money Services Businesses 
(MSB), and other financial institutions subject to 
regulation. 
(2) Assessment of current efforts by Federal 
departments and agencies to study and collect intel-
ligence against the terror finance threat and money 
laundering methodologies. 
(3) Identification of gaps between Federal and 
State regulations which could be exploited for illicit 
funding. 
SEC. 5. INNOVATION COMPETITION. 
(a) AUTHORIZATION.—In order to facilitate public- 
private partnership to develop and enhance illicit finance 
prevention systems, the Secretary of the Treasury may es-
tablish a program (referred to in this section as ‘‘the com-
petition’’) to be known as the ‘‘Competition for Innovation 
in Combating Illicit Terrorist Financing’’. 
(b) ACTIVITIES SUPPORTED.—The Competition may 
carry out, through the provision of grants or an annual 
reward, the following activities: 
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(1) 
COLLABORATIVE
RESEARCH.—Provide 
grants, for not more than two years, to engage stu-
dents, entrepreneurs, and financial experts to iden-
tify regulatory solutions with respect to the exploi-
tation of VCs by terrorists and other criminals. 
(2) COMPETITION.—Establish an annual com-
petition for a reward of not more than $500,000 to 
any individual, team, or nongovernmental entity that 
develops technologies to facilitate counter terror 
threat financing, particularly that addresses the use 
of VCs or emerging financial technology. 
(c) MANAGEMENT.— 
(1) IN GENERAL.—The Secretary of Treasury, 
in consultation with the Director of National Intel-
ligence, shall promulgate guidelines for review of 
grant applications to the Competition. 
(2) REQUIREMENTS.—The guidelines required 
under this subsection shall address, at a minimum, 
the following: 
(A) Criteria by which grants shall be se-
lected. 
(B) Policies to ensure that grants are in 
furtherance of United States security objectives. 
(d) ACCEPTANCE
OF
FUNDS
FROM
OUTSIDE 
SOURCES.—The Competition may accept funds from out-
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side sources, including foreign governments, nongovern-
mental organizations, and private business entities and, 
without further appropriation, use such funds to carry out 
the purpose of the Competition. 
(e) RULE OF CONSTRUCTION.—Nothing in this Act 
may be construed to make any grant recipient an agent 
or establishment of the United States Government. 
Æ 
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