New Proposal Aims to Tighten Restrictions on Russian Digital Asset Transactions
In a bid to strengthen the enforcement of sanctions on Russian digital assets, Congressman Brad Sherman has put forth a new amendment. This proposed addition to the National Defense Authorization Act (NDAA) empowers the Treasury Secretary to block crypto transactions associated with Russian entities and mandates that U.S. taxpayers report any offshore crypto transactions exceeding $10,000 to the Financial Crimes Enforcement Network (FinCEN).
The primary goal of this amendment is to ensure strict compliance with sanctions placed on Russian digital assets. If passed, it will require the President to provide a detailed report to Congress within 90 days of the Act's enactment, pinpointing any foreign individuals or entities aiding in the evasion of U.S. sanctions through digital asset transactions related to Russia.
Under this proposal, the President can utilize the International Emergency Economic Powers Act to halt transactions involving these identified foreign entities if their assets fall under U.S. jurisdiction. The President is also granted the authority to enforce penalties for any violations of these regulations. However, there is a provision for a national security waiver, allowing the President to exempt certain cases if it is deemed to be in the best interest of U.S. national security, with the requirement of notifying Congress along with the rationale for the waiver.
Furthermore, the Secretary of the Treasury will have the power to restrict transactions associated with digital asset addresses linked to Russian entities if it is deemed necessary for national security. Within 90 days of making such determinations, a report must be submitted to Congress. Additionally, FinCEN will be tasked with mandating that U.S. individuals report any digital asset transactions exceeding $10,000 through foreign accounts. Regular reports outlining the implementation progress of these measures and identifying high-risk digital asset trading platforms will also be submitted to Congress by the Secretary of the Treasury.
Eleanor Terrett from Fox Business emphasized the significance of this proposed amendment, noting that the NDAA is a crucial piece of legislation that is likely to pass, making it an ideal vehicle for such amendments. She suggested that similar amendments may surface as members seek to attach other bills to the NDAA.
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