California Democratic Congressman Brad Sherman has submitted an amendment to the House Rules Committee aimed at incorporating specific cryptocurrency regulation provisions into the must-pass National Defense Authorization Act (NDAA). The amendment is intended to enhance the control and supervision authority of US financial regulatory agencies over cryptocurrency transactions, especially those involving foreign entities or conducted overseas.
The first part of Sherman’s proposed amendment grants explicit authority to the US Secretary of the Treasury to prohibit cryptocurrency addresses associated with Russia from engaging in transactions on digital asset trading platforms within US jurisdiction. This is to prevent malicious actors from using cryptocurrency to evade economic sanctions imposed on Russia. The provision emphasizes the necessity of clear regulatory authority to prevent transactions that may be linked 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 conducting cryptocurrency transactions valued at 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