Sec. 8. Anti-money laundering protections
851 words·~4 min read·
/bill/119/s/919/is/section-8·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
In this subsection: The term digital asset service provider — means a person that, for compensation or profit, engages in the business in the United States or for customers or users in the United States, of— exchanging digital assets for monetary value; exchanging digital assets for other digital assets; transferring digital assets to a third party; acting as a digital asset custodian; or participating in financial services related to a digital asset issuance; and does not include— a distributed ledger protocol or a person solely developing such a protocol; or a person solely validating transactions or operating a distributed ledger node.
The term offering means making available for purchase, sale, or exchange. The term distributed ledger protocol means publicly available and accessible executable software deployed to a distributed ledger, including smart contracts or networks of smart contracts. The term lawful order means any final and valid writ, process, order, rule, decree, command, or other requirement issued or promulgated under Federal law, issued by a court of competent jurisdiction or by an authorized Federal agency pursuant to its statutory authority, that— requires a permitted payment stablecoin issuer to seize, freeze, burn, or prevent the transfer of payment stablecoins issued by the permitted payment stablecoin issuer; specifies the digital assets or accounts subject to blocking with reasonable particularity; and is subject to judicial or administrative review or appeal as provided by law.
Not later than 30 days after the Department of the Treasury has identified the failure of a foreign issuer of any payment stablecoins trading in the United States that is not a permitted payment stablecoin issuer to comply with the terms of any lawful order, the Secretary of the Treasury, in coordination with relevant Federal agencies, shall designate the foreign issuer as noncompliant and notify the foreign issuer in writing of the designation. If a foreign issuer described in subsection
(b)does not come into compliance with the lawful order within 30 days of receiving the written notice described in that subsection, the Secretary of the Treasury shall— publish the determination of noncompliance in the Federal Register, including a statement on the failure of the foreign issuer to comply with the lawful order after the written notice; and issue a notification in the Federal Register prohibiting digital asset service providers from facilitating secondary trading of payment stablecoins issued by the foreign issuer in the United States. The prohibition on facilitation of secondary trading described in paragraph
(1)shall become effective on the date that is 30 days after the date of issue of notification of the prohibition in the Federal Register. With respect to the prohibition on facilitation of secondary trading described in paragraph (1), the Secretary of the Treasury may issue waivers and time extensions to digital asset service providers on a case by case basis. Any digital asset service provider that knowingly violates a prohibition under paragraph (1)(B) shall be subject to a civil monetary penalty of not more than $100,000 per violation per day. Any foreign issuer of payment stablecoin that knowingly continues to publicly offer a payment stablecoin in the United States after publication of the determination of noncompliance under paragraph (1)(A) shall be subject to a civil monetary penalty of not more than $1,000,000 per violation per day, and the Secretary of the Treasury may seek an injunction in a United States District Court to bar the foreign issuer from engaging in financial transactions in the United States or with United States persons. A determination of noncompliance under subsection
(b)is subject to judicial review in the United States Court of Appeals for the District of Columbia Circuit. The Secretary of the Treasury may offer a waiver, general license, or specific license to any United States persons engaging in secondary trading described in subsection
(c)on a case by case basis if the Secretary determines that— prohibiting secondary trading would adversely affect the financial system of the United States; or the foreign issuer of the payment stablecoin is taking tangible steps to remedy the failure to comply with the lawful order that resulted in the noncompliance determination under subsection (b). The President may waive the application of the secondary trading restrictions under subsection
(c)if the President determines that the waiver is in the national security interest of the United States. This Act 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; or activities necessary to carry out or assist law enforcement activity of the United States. Not later than 7 days after issuing a waiver or a license under paragraph (1), the Secretary of the Treasury shall submit a report to the Chairmen and Ranking members of the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives , including the text of the waiver or license, as well as the facts and circumstances justifying the waiver determination, and provide a briefing on the report.
Connectionstraces to 1
Traces to 1 document
Citation graph
cites case law
Sec. 8
Anti-money laundering protections
Cites 1Cited by 0 across 0 sources