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 Com-
mittee 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 jurisdic-
tion of the committee concerned 
A BILL 
To 
impose 
sanctions 
with 
respect 
to 
the 
use 
of 
cryptocurrency to facilitate transactions by Russian per-
sons subject to sanctions, 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 ‘‘Closing Loopholes in 
Russia Sanctions Act of 2022’’. 
SEC. 2. APPLICABILITY. 
This Act applies to any person engaged in the busi-
ness of effecting transactions in digital assets for the ac-
VerDate Sep 11 2014 
16:51 Mar 15, 2022
Jkt 029200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H7067.IH
H7067
pamtmann on DSKBC07HB2PROD with BILLS
count of others, including any communication protocol sys-
tems or other similar systems using decentralized finance 
technology or other similar technology to provide trans-
actional services, including digital wallets, digital asset 
trading platforms, digital asset exchanges, and digital 
asset mining services. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) DIGITAL
ASSETS.—The term ‘‘digital as-
sets’’ includes— 
(A) any digital representation of value 
which is recorded on a cryptographically se-
cured distributed ledger or any similar tech-
nology, as specified by the Secretary of the 
Treasury; and 
(B) nonfungible tokens and other digital 
assets using blockchain or other similar tech-
nology. 
(2) DIGITAL
ASSET
EXCHANGE.—The term 
‘‘digital asset exchange’’ or ‘‘virtual currency ex-
change’’ includes— 
(A) an entity such as a State-licensed 
money services business or money transmitting 
business, as defined in section 5330 of title 31, 
United States Code; and 
VerDate Sep 11 2014 
16:51 Mar 15, 2022
Jkt 029200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H7067.IH
H7067
pamtmann on DSKBC07HB2PROD with BILLS
(B) a financial institution that exchanges 
virtual currency or digital assets. 
(3) DIGITAL ASSET WALLETS.—The term ‘‘dig-
ital asset wallets’’ mean interfaces for storing and 
transferring digital assets. 
(4) FOREIGN PERSON.—The term ‘‘foreign per-
son’’ means an individual or entity that is not a 
United States person. 
(5) HOSTED WALLETS.—The term ‘‘hosted wal-
let’’ means a digital account hosted by a third-party 
financial institution that allows the account holder 
to store, send, and receive cryptocurrency and digital 
assets. 
(6) 
UNHOSTED
WALLETS.—The 
term 
‘‘unhosted wallets’’ means a digital wallet that is not 
hosted by a third-party financial system, including 
software hosted on a computer, phone, or other de-
vice of a person. 
(7) 
UNITED
STATES
PERSON.—The 
term 
‘‘United States person’’ means— 
(A) an individual who is a United States 
citizen or an alien lawfully admitted for perma-
nent residence to the United States; or 
(B) an entity organized under the laws of 
the United States or any jurisdiction within the 
VerDate Sep 11 2014 
16:51 Mar 15, 2022
Jkt 029200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H7067.IH
H7067
pamtmann on DSKBC07HB2PROD with BILLS