(1) conduct independent research on terrorist 
and illicit use of new financial technologies, includ-
ing digital currencies; and 
(2) develop legislative and regulatory proposals 
to improve counter-terrorist and counter-illicit fi-
nancing efforts. 
(c) ANNUAL CONGRESSIONAL REPORT.—Not later 
than 1 year after the date of the enactment of this Act, 
and annually thereafter, the Task Force shall issue a re-
port to the Congress containing the findings and deter-
minations made by the Task Force in the previous year 
and any legislative and regulatory proposals developed by 
the Task Force. 
SEC. 4. REWARDS FOR INFORMATION RELATED TO TER-
RORIST USE OF DIGITAL CURRENCIES. 
(a) IN GENERAL.—The Secretary of the Treasury, in 
consultation with the Attorney General, shall establish a 
program to pay a reward to any person who provides infor-
mation leading to the conviction of an individual involved 
with terrorist use of digital currencies. 
(b) USE OF APPROPRIATED FUNDS.—To the extent 
provided in advance by appropriation Acts, the Secretary 
may use appropriated funds to pay a reward under this 
section with respect to information leading to a conviction 
described under subsection (a) if the amount of fines and 
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forfeitures related to such conviction are not sufficient to 
pay such reward. 
(c) USE OF FINES AND FORFEITURES.—With re-
spect to fines and forfeitures related to the conviction of 
an individual involved with terrorist use of digital cur-
rencies, the Secretary of the Treasury shall, without fur-
ther appropriation or fiscal year limitation— 
(1) use such amounts to pay rewards under this 
section related to such conviction; 
(2) with respect to any such amounts remaining 
after payments are made under paragraph (1), repay 
to the general fund of the Treasury— 
(A) any reward amounts paid using appro-
priated funds under subsection (b); and 
(B) the amount of any funds appropriated 
to the FinTech Leadership in Innovation Fund 
established under section 5; and 
(3) with respect to any such amounts remaining 
after payments are made under paragraphs (2) and 
(3), deposit such amounts in the FinTech Leader-
ship in Innovation Fund. 
SEC. 5. FINTECH LEADERSHIP IN INNOVATION FUND. 
(a) ESTABLISHMENT.—There is established a fund to 
be known as the ‘‘FinTech Leadership in Innovation 
Fund’’, which shall be available to the Secretary of the 
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Treasury, without further appropriation or fiscal year lim-
itation, to carry out this section. 
(b) INNOVATION GRANTS.— 
(1) IN GENERAL.—The Secretary of the Treas-
ury shall make grants for the development of tools 
and programs to detect terrorist and illicit use of 
digital currencies. 
(2) ELIGIBLE RECIPIENTS.—The Secretary may 
make grants under this subsection to entities located 
in the United States, including academic institu-
tions, companies, non-profit institutions, individuals, 
and any other entities locating in the United States 
that the Secretary determines appropriate. 
(3) ELIGIBLE PROJECTS.—With respect to tools 
and programs described under paragraph (1), in ad-
dition to grants for the development of such tools 
and programs, the Secretary may make grants 
under this subsection to carry out pilot programs 
using such tools, the development of test cases using 
such tools, and research related to such tools. 
(4) PREFERENCES.—In making grants under 
this subsection, the Secretary shall give preference 
to— 
(A) technology that is non-proprietary or 
that is community commons-based; 
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(B) computer code that is developed and 
released on an open source basis; and 
(C) tools that are proactive (such as meet-
ing regulatory requirements under ‘‘know your 
customer’’ and anti-money laundering require-
ments for any entity that has to comply with 
U.S. Government regulations) vs. reactive (such 
as aiding law enforcement organizations in 
catching illegal activity after the fact). 
(5) OTHER REQUIREMENTS.— 
(A) USE
OF
EXISTING
GLOBAL
STAND-
ARDS.—Any new technology developed with a 
grant made under this subsection shall be based 
on existing global standards, such as those de-
veloped by the Internet Engineering Task Force 
(IETF) and the World Wide Web Consortium 
(W3C). 
(B) SUPPORTING EXISTING LAWS OR REG-
ULATIONS.—Tools and programs developed with 
a grant made under this subsection shall be in 
support of existing laws or regulations, includ-
ing the Bank Secrecy Act. 
(C) OPEN ACCESS REQUIREMENT.—Tools 
and programs developed with a grant made 
under this subsection shall be freely accessible 
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and usable by the public. This requirement may 
be fulfilled by publicly availing application pro-
gramming interfaces or software development 
kits. 
SEC. 6. DEFINITIONS. 
For purposes of this Act: 
(1) BANK SECRECY ACT.—The term ‘‘Bank Se-
crecy Act’’ means— 
(A) section 21 of the Federal Deposit In-
surance Act; 
(B) chapter 2 of title I of Public Law 91– 
508; and 
(C) subchapter II of chapter 53 of title 31, 
United States Code. 
(2) DIGITAL
CURRENCY.—The term ‘‘digital 
currency’’— 
(A) means a digital representation of value 
that— 
(i) is used as a medium of exchange, 
unit of account, or store of value; and 
(ii) is not legal tender, whether or not 
denominated in legal tender; and 
(B) does not include— 
(i) a transaction in which a merchant 
grants, as part of an affinity or rewards 
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