S.Amdt. 2301

SA 2301. Mr. REED (for himself and Mrs. Shaheen) submitted an
amendment intended to be proposed by him to the bill S. 1582, to
provide for the regulation of payment stablecoins, and for other
purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

Subtitle ___--Strengthening Counter-terrorist Financing Activities

SEC. 20. DEFINITIONS.

In this subtitle:
(1) Account; correspondent account; payable-through
account.--The terms ``account'', ``correspondent account'',
and ``payable-through account'' have the meanings given those
terms in section 5318A of title 31, United States Code.
(2) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Relations and the Committee on
Banking, Housing, and Urban Affairs of the Senate; and
(B) the Committee on Foreign Affairs and the Committee on
Financial Services of the House of Representatives.
(3) Digital asset.--Except as otherwise provided by the
Secretary of the Treasury by rule, the term ``digital asset''
has the meaning given the term in section 6045(g)(3)(D) of
the Internal Revenue Code of 1986.
(4) Digital asset platform.--The term ``digital asset
platform'' means any person, as determined by the Secretary
of the Treasury, that--
(A) facilitates the exchange, purchase, sale, custody,
transfer, issuance, or lending of digital assets;
(B) makes available any service in connection with digital
asset transactions; or
(C) controls any person engaged in any of the foregoing.
(5) Financial institution.--The term ``financial
institution'' means--
(A) before the effective date of section 6110(a)(1) of the
Anti-Money Laundering Act of 2020 (31 U.S.C. 5312 note), a
financial institution specified in subparagraph (A), (B),
(C), (D), (E), (F), (G), (H), (I), (J), (K), (M), (N), (P),
(R), (T), (Y), or (Z) of section 5312(a)(2) of title 31,
United States Code; and
(B) on or after the effective date of section 6110(a)(1) of
the Anti-Money Laundering Act of 2020 (31 U.S.C. 5312 note),
a financial institution specified in subparagraph (A), (B),
(C), (D), (E), (F), (G), (H), (I), (J), (K), (M), (N), (P),
(R), (T), (Y), (Z), or (AA) of section 5312(a)(2) of title
31, United States Code.
(6) Foreign person.--The term ``foreign person'' means any
individual or entity that is not a United States person.
(7) Interstate commerce.--The term ``interstate commerce''
means--

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(A) trade, commerce, transportation, or communication among
the several States, or between any foreign country and any
State, or between any State and any place outside thereof;
and
(B) the intrastate use of any interstate means of
communication, or any other interstate instrumentality.
(8) Person.--The term ``person'' means any individual or
entity, as those terms are defined in sections 578.313 and
578.305 of title 31, Code of Federal Regulations.
(9) United states person.--The term ``United States
person'' has the meaning given the term section 5570(9) of
the Burma Unified through Rigorous Military Accountability
Act of 2022 (22 U.S.C. 10221(9)).

SEC. 21. SANCTIONS AUTHORITIES OVER DIGITAL ASSET PLATFORMS
TRANSACTING WITH SPECIALLY DESIGNATED GLOBAL
TERRORISTS.

(a) In General.--The President may impose 1 or more of the
sanctions described in subsection (c) with respect to a
digital asset platform that the President determines, on or
after the date of enactment of this Act, engages in an
activity described in subsection (b).
(b) Activities Described.--A digital asset platform engages
in an activity described in this subsection if the digital
asset platform--
(1) knowingly facilitates a significant transaction or
transactions, including transactions involving any digital
asset, with a covered foreign person; or
(2) knowingly engages in money laundering to carry out an
activity described in paragraph (1).
(c) Sanctions Described.--
(1) Blocking of property, digital assets, and related
technologies.--The President may, pursuant to the
International Emergency Economic Powers Act (50 U.S.C. 1701
et seq.), as amended by this subtitle, block and prohibit all
transactions in all property and interests in property of the
digital asset platform if such property and interests in
property are in the United States, come within the United
States, or come within the possession or control of a United
States person.
(2) Restrictions on providing accounts.--The President may
prohibit, or impose conditions on, the opening or maintaining
in the United States of an operational or business account at
a financial institution by the digital asset platform.
(3) Inclusion on entity list.--The President may include
the digital asset platform on the entity list maintained by
the Bureau of Industry and Security of the Department of
Commerce and set forth in Supplement No. 4 to part 744 of the
Export Administration Regulations, for activities contrary to
the national security or foreign policy interests of the
United States.
(4) Loans from united states financial institutions.--The
President may prohibit any United States financial
institution from making loans or providing credits to the
digital asset platform totaling more than $10,000,000 in any
12-month period unless the digital asset platform is engaged
in activities to relieve human suffering and the loans or
credits are provided for such activities.
(5) Procurement sanction.--The United States Government may
not procure, or enter into any contract for the procurement
of, any goods or services from the digital asset platform.
(6) Foreign exchange.--The President may, pursuant to such
regulations as the President may prescribe, prohibit any
transactions in foreign exchange that are subject to the
jurisdiction of the United States and in which the digital
asset platform has any interest.
(7) Financial institution transactions.--The President may,
pursuant to such regulations as the President may prescribe,
prohibit any transfers of credit or payments between
financial institutions or by, through, or to any financial
institution, to the extent that such transfers or payments
are subject to the jurisdiction of the United States and
involve any interest of the digital asset platform.
(8) Ban on investment in platform.--The President may,
pursuant to such regulations or guidelines as the President
may prescribe, prohibit any United States person from
investing in or purchasing significant amounts of equity or
debt instruments of the digital asset platform, or from
investing in or purchasing significant amounts of any digital
assets issued by the digital asset platform.
(9) Sanctions on principal executive officers.--The
President may impose on the principal executive officer or
officers of the digital asset platform, or on individuals
performing similar functions and with similar authorities as
such officer or officers, any of the sanctions under this
paragraph.
(d) Penalties.--A person that violates, attempts to
violate, conspires to violate, or causes a violation of this
section or any regulation, license, or order issued to carry
out this section shall be subject to the penalties set forth
in subsections (b) and (c) of section 206 of the
International Emergency Economic Powers Act (50 U.S.C. 1705)
to the same extent as a person that commits an unlawful act
described in subsection (a) of that section.
(e) Exceptions.--
(1) Intelligence activities.--This section shall not apply
with respect to activities subject to the reporting
requirements under title V of the National Security Act of
1947 (50 U.S.C. 3091 et seq.) or any authorized intelligence
activities of the United States.
(2) Law enforcement activities.--Sanctions under this
section shall not apply with respect to any authorized law
enforcement activities of the United States.
(3) United states government activities.--Nothing this
subtitle shall prohibit transactions for the conduct of the
official business of the Federal Government by employees,
grantees, or contractors thereof.
(4) Humanitarian exemption.--The President may not impose
sanctions under this section with respect to any person for
conducting or facilitating a transaction for the sale of
agricultural commodities, food, medicine, or medical devices
for the provision of humanitarian assistance.
(f) National Interest Waiver.--
(1) In general.--The President may waive the imposition of
sanctions under subsection (a) with respect to a digital
asset platform if the President determines that such a waiver
is in the national interests of the United States.
(2) Notice and report.--
(A) In general.--Upon the issuance of a waiver described in
paragraph (1), the President shall submit to the appropriate
congressional committees--
(i) a notice of such waiver; and
(ii) a report describing the justification for the waiver.
(B) Form.--The report required by subparagraph (A)(ii)
shall be submitted in unclassified form, but may contain a
classified annex.
(g) Covered Foreign Persons Defined.--A foreign person
described in this subsection is any person identified as a
specially designated global terrorist on the list of
specially designated nationals and blocked persons maintained
by the Office of Foreign Assets Control of the Department of
the Treasury and the property and interests in property of
which are blocked pursuant to the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.).

SEC. 22. IMPROVEMENTS TO SANCTIONS AUTHORITIES OVER DIGITAL
ASSETS.

(a) Extraterritorial Jurisdiction.--For purposes of any
provision of law authorizing the imposition of sanctions or
sanctions enforcement actions, a payment stablecoin
denominated in United States Dollars, wherever located, shall
be considered property subject to the jurisdiction of the
United States.
(b) Presidential Authorities Over Digital Asset
Technologies.--Section 203 of the International Emergency
Economic Powers Act (50 U.S.C. 1702) is amended--
(1) in subsection (a), by adding at the end the following:
``(4) The President may exercise the authorities granted by
this subsection with respect to blockchain-enabled smart
contracts, or other similar technology, without regard to
whether such contracts operate autonomously, can be modified,
or are owned.'';
(2) in subsection (b)(3), by inserting after ``news wire
feeds.'' the following: ``The information or informational
materials exempted from regulation or prohibition by this
paragraph do not include any protocol, network, software,
node, or contract designated or otherwise regulated pursuant
to subsection (a)(1)(B)(ii).''; and
(3) by adding at the end, the following:
``(d) Definitions.--In this section:
``(1) Interest.--The term `interest' includes any interest
of any nature whatsoever, direct or indirect, present,
future, or contingent, and legal, equitable, or beneficial,
or otherwise, without regard to whether such interest is
legally cognizable.
``(2) National; person.--The terms `national' and `person'
include--
``(A) any individual;
``(B) any entity, association, group, or other
organization; and
``(C) any body of persons joined by common purpose or
interest.
``(3) Property.--The term `property' includes--
``(A) property of any nature whatsoever, real, personal, or
mixed, tangible or intangible, even if such property is
abandoned or ownerless;
``(B) services of any nature whatsoever; and
``(C) contracts of any nature whatsoever.''.
(c) Authorities Over Digital Asset Platforms.--Section 203
of the International Emergency Economic Powers Act (50 U.S.C.
1702) is amended by inserting at the end the following:
``(e) Digital Asset Platforms.--
``(1) In general.--For the purposes of this section, any
digital asset platform, wherever located, shall be deemed
subject to the jurisdiction of the United States if engaged
in the business of performing any of the functions of a
digital asset platform in interstate commerce, as the
Secretary of the Treasury may determine by rule.
``(2) Definition.--For the purposes of paragraph (1), the
term `digital asset platform' means any person, as determined
by the Secretary of the Treasury, that--
``(A) facilitates the exchange, purchase, sale, custody,
transfer, issuance, or lending of digital assets;
``(B) makes available any service in connection with
digital asset transactions; or
``(C) controls any person engaged in any of the
foregoing.''.
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