Strengthening Overseas Law Enforcement Democratic Party Legislators Propose Amendments to National Defense Authorization Act to Sanction Russian Addresses in Cryptocurrency Transactions

California Democratic Congressman Brad Sherman has submitted an amendment to the House Rules Committee aimed at incorporating specific cryptocurrency regulatory provisions into the must-pass National Defense Authorization Act (NDAA). This amendment is designed to enhance the control and supervision of cryptocurrency transactions by US financial regulatory agencies, particularly those transactions related to foreign entities or conducted overseas.

Enhancing the Secretary of the Treasury’s Powers, Blocking Russia

Enhancing FinCEN Reporting Requirements

Sherman’s proposed amendment’s first part grants clear authority to the US Secretary of the Treasury to prohibit cryptocurrency addresses in the US jurisdiction that are linked to Russia from conducting transactions on digital asset trading platforms. This is to prevent illicit actors from using cryptocurrency to evade economic sanctions imposed on Russia. The provision emphasizes the necessity of clear regulatory authority to prevent transactions possibly related to Russian entities, ensuring compliance with domestic and international sanctions.

The second part of the amendment focuses on enhancing reporting requirements for significant overseas cryptocurrency transactions involving US taxpayers. The Financial Crimes Enforcement Network (FinCEN) will be authorized to require US taxpayers conducting cryptocurrency transactions worth over $10,000 outside the US to submit FinCEN Form 114 (FBAR). This requirement aims to increase transparency, combat financial crimes, and ensure reporting of significant overseas cryptocurrency transactions.

NDAA
Russia
National Defense Authorization Act
Democratic Party