S.Amdt. 2137

SA 2137. Mrs. GILLIBRAND (for herself and Ms. Lummis) submitted an
amendment intended to be proposed by her to the bill S. 4638, to
authorize appropriations for fiscal year 2025 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe military
personnel strengths for such fiscal year, and for other purposes; which
was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. _____. CRYPTO ASSETS.

(a) Crypto Asset Anti-money Laundering Examination
Standards.--Not later than 2 years after the date of
enactment of this Act, the Secretary of the Treasury, in
consultation with the Conference of State Bank Supervisors
and Federal functional regulators, as defined in section
1010.100 of title 31, Code of Federal Regulations, shall
establish a risk-focused examination and review process for
financial institutions, as defined in that section, to assess
the following relating to crypto assets, as determined by the
Secretary:
(1) The adequacy of reporting obligations and anti-money
laundering programs under subsections (g) and (h) of section
5318 of title 31, United States Code, respectively as applied
to those institutions.
(2) Compliance of those institutions with anti-money
laundering and countering the financing of terrorism
requirements under subchapter II of chapter 53 of title 31,
United States Code.
(b) Combating Anonymous Crypto Asset Transactions.--Not
later than 1 year after the date of enactment of this Act,
the Secretary of the Treasury shall submit a report and
provide a briefing, as determined by the Secretary, to the
Committee on Banking, Housing and Urban Affairs of the Senate
and the Committee on Financial Services of the House of
Representatives that assess the following issues:
(1) Categories of anonymity-enhancing technologies or
services used in connection with crypto assets, such as
mixers and tumblers, in use as of the date on which the
report is submitted.
(2) As data are available, estimates of the magnitude of
transactions related to the categories in paragraph (1) that
are believed to be connected, directly or indirectly, to
illicit finance, including crypto asset transaction volumes
associated with sanctioned entities and entities subject to
special measures pursuant to section 5318A of title 31,
United States Code, and a description of any limitations
applicable to the data used in such estimates.
(3) Categories of privacy-enhancing technologies or
services used in connection with crypto assets in use as of
the date on which the report is submitted.
(4) Legislative and regulatory approaches employed by other
jurisdictions relating to the technologies and services
described in paragraphs (1) and (3).
(5) Recommendations for legislation or regulation relating
to the technologies and services described in paragraphs (1)
and (3).
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