IIB 
115TH CONGRESS 
2D SESSION 
H. R. 5036 
IN THE SENATE OF THE UNITED STATES 
SEPTEMBER 27, 2018 
Received; read twice and referred to the Committee on Banking, Housing, and 
Urban Affairs 
AN ACT 
To establish an Independent Financial Technology Task 
Force, to provide rewards for information leading to 
convictions related to terrorist use of digital currencies, 
to establish a FinTech Leadership in Innovation Pro-
gram to encourage the development of tools and pro-
grams to combat terrorist and illicit use of digital cur-
rencies, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
VerDate Sep 11 2014 
00:17 Sep 28, 2018
Jkt 079200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H5036.RFS
H5036
lotter on DSKBCFDHB2PROD with BILLS
HR 5036 RFS
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Financial Technology 
Protection Act’’. 
SEC. 2. SENSE OF CONGRESS. 
It is the sense of Congress that the Federal Govern-
ment should prioritize the investigation of terrorist and 
illicit use of new financial technology, including digital 
currencies. 
SEC. 3. INDEPENDENT FINANCIAL TECHNOLOGY TASK 
FORCE. 
(a) ESTABLISHMENT.—There is established the Inde-
pendent Financial Technology Task Force (the ‘‘Task 
Force’’), which shall consist of— 
(1) the Secretary of the Treasury, who shall 
serve as the head of the Task Force; 
(2) the Attorney General; 
(3) the Director of the Central Intelligence 
Agency; 
(4) the Director of the Financial Crimes En-
forcement Network; 
(5) the Director of the Secret Service; 
(6) the Director of the Federal Bureau of In-
vestigation; and 
(7) 6 individuals appointed by the Secretary of 
the Treasury to represent the private sector (includ-
ing the banking industry, nonprofit groups, and 
VerDate Sep 11 2014 
00:17 Sep 28, 2018
Jkt 079200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5036.RFS
H5036
lotter on DSKBCFDHB2PROD with BILLS
HR 5036 RFS
think tanks), with at least 1 of such individuals hav-
ing experience in the Fintech industry. 
(b) DUTIES.—The Task Force shall— 
(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 
fund to pay a reward, not to exceed $450,000, to any per-
son who provides information leading to the conviction of 
an individual involved with terrorist use of digital cur-
rencies. 
VerDate Sep 11 2014 
00:17 Sep 28, 2018
Jkt 079200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5036.RFS
H5036
lotter on DSKBCFDHB2PROD with BILLS
HR 5036 RFS
(b) 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, subject to the 
availability of appropriations made in advance— 
(1) use such amounts to pay rewards under this 
section related to such conviction; and 
(2) with respect to any such amounts remaining 
after payments are made under paragraphs (1) and 
(2), deposit such amounts in the FinTech Leader-
ship in Innovation Program. 
SEC. 5. FINTECH LEADERSHIP IN INNOVATION PROGRAM. 
(a) ESTABLISHMENT.—There is established a pro-
gram to be known as the ‘‘FinTech Leadership in Innova-
tion Program’’, which shall be funded as provided under 
section 4(b)(2). 
(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, nonprofit institutions, individuals, 
VerDate Sep 11 2014 
00:17 Sep 28, 2018
Jkt 079200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5036.RFS
H5036
lotter on DSKBCFDHB2PROD with BILLS
HR 5036 RFS
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 nonproprietary or 
that is community commons-based; 
(B) computer code that is developed and 
released on an open source basis; 
(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); and 
(D) tools and incentives that are on decen-
tralized platforms. 
VerDate Sep 11 2014 
00:17 Sep 28, 2018
Jkt 079200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H5036.RFS
H5036
lotter on DSKBCFDHB2PROD with BILLS
HR 5036 RFS
(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, and make efforts to 
balance privacy and anti-money laundering con-
cerns. 
(C) OPEN ACCESS REQUIREMENT.—Tools 
and programs developed with a grant made 
under this subsection shall be freely accessible 
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: 
VerDate Sep 11 2014 
00:17 Sep 28, 2018
Jkt 079200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H5036.RFS
H5036
lotter on DSKBCFDHB2PROD with BILLS
HR 5036 RFS
(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 established legal tender, 
whether or not denominated in established 
legal tender; and 
(B) does not include— 
(i) a transaction in which a merchant 
grants, as part of an affinity or rewards 
program, value that cannot be taken from 
or exchanged with the merchant for legal 
tender, bank credit, or digital currency; or 
(ii) a digital representation of value 
issued by or on behalf of a publisher and 
VerDate Sep 11 2014 
00:17 Sep 28, 2018
Jkt 079200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5036.RFS
H5036
lotter on DSKBCFDHB2PROD with BILLS