New Proposal Aims to Strengthen Oversight of Russian Digital Asset Transactions
Congressman Brad Sherman (D-CA) has put forth a new proposal as an amendment to the National Defense Authorization Act (NDAA) with the goal of improving the enforcement of sanctions on Russian digital assets. This amendment, which is currently under review by the Rules Committee, seeks to enhance the mechanisms in place for monitoring digital asset transactions involving Russian entities subject to sanctions, ensuring strict compliance with U.S. sanctions policies.
Under this proposal, the President would be required to present a report to Congress within 90 days of the Act’s enactment, identifying any foreign individuals or entities operating digital asset trading platforms or facilitating digital asset transactions that have played a significant role in evading U.S. sanctions on Russia. If these identified individuals or entities have assets within U.S. jurisdiction or control, the President would have the authority to block and prohibit transactions involving them using powers granted by the International Emergency Economic Powers Act. The President would also be empowered to enforce penalties for any violations of the amendment, with the option of a national security waiver available if it aligns with U.S. national security interests, provided that Congress is informed of the reasons for the waiver.
Furthermore, the Secretary of the Treasury would be able to restrict transactions involving digital asset addresses associated with Russian entities if it is deemed to be in the national interest, with a mandatory report to Congress within 90 days following such determinations. Additionally, the Financial Crimes Enforcement Network (FinCEN) would be tasked with requiring U.S. individuals to report any digital asset transactions exceeding $10,000 through foreign accounts. Periodic reports outlining the progress in implementing these measures and identifying high-risk digital asset trading platforms would need to be submitted to Congress by the Secretary of the Treasury.
Eleanor Terrett from Fox Business noted, “It is important to highlight that the annual defense bill is a crucial piece of legislation that must be passed, and including seemingly minor amendments like this one is unlikely to hinder its approval. It is possible that we may see more amendments of this nature as members strive to attach other bills to the NDAA.”
What are your thoughts on this proposed amendment? Share your opinions in the comments section below.
