Strengthening Overseas Law Enforcement Democratic Party Lawmakers Propose Amendment to National Defense Authorization Act to Target Cryptocurrency Transactions Sanction Russian Addresses
California Democratic Party member 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). The amendment is designed to enhance the control and oversight powers of US financial regulatory agencies over cryptocurrency transactions, especially those involving foreign entities or conducted overseas.
Enhancing the authority of the Treasury Secretary to block Russia
Enhancing FinCEN’s reporting requirements
Sherman’s proposed amendment’s first part grants explicit authority to the US Treasury Secretary to prohibit cryptocurrency addresses in the US jurisdiction linked to Russia from conducting transactions on digital asset trading platforms. This is to prevent bad actors from using cryptocurrency to evade economic sanctions imposed on Russia. The provision emphasizes the necessity of clear regulatory powers to prevent transactions possibly related to Russian entities and ensure compliance with domestic and international sanctions.
The second part of the amendment focuses on enhancing reporting requirements for US taxpayers involved in significant overseas cryptocurrency transactions. The Financial Crimes Enforcement Network (FinCEN) will be authorized to require any US taxpayer engaging in cryptocurrency transactions outside the US exceeding $10,000 in value to submit FinCEN Form 114 (FBAR). This requirement aims to increase transparency, combat financial crime, and ensure reporting of significant overseas cryptocurrency transactions.
NDAA
Russia
National Defense Authorization Act
Democratic Party
