U.S. Congressman Brad Sherman has proposed an amendment designed to enhance the enforcement of sanctions on Russian digital assets. The amendment allows the Treasury Secretary to prohibit crypto transactions linked to Russian entities and requires U.S. taxpayers to report crypto transactions offshore exceeding $10,000 to the Financial Crimes Enforcement Network (FinCEN).
US Lawmaker Proposes Stricter Digital Asset Regulations to Enforce Russian Sanctions
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New Amendment Seeks to Clamp Down on Russian Digital Asset Transactions
Representative Brad Sherman (D-CA) has proposed an amendment to the National Defense Authorization Act (NDAA) designed to enhance compliance with sanctions on Russian digital assets. Submitted to the Rules Committee, this proposal intends to bolster enforcement mechanisms for digital asset transactions involving sanctioned Russian entities, ensuring strict adherence to U.S. sanctions policies.
The amendment requires the President to submit a report to Congress within 90 days of the enactment of the Act, identifying any foreign person operating a digital asset trading platform or acting as a digital asset transaction facilitator who has materially assisted in evading U.S. sanctions related to the Russian Federation.
The President may use powers under the International Emergency Economic Powers Act to block and prohibit transactions involving such identified foreign persons if their assets are within U.S. jurisdiction or control. The amendment grants the President authority to implement its provisions, including imposing penalties for violations. A national security waiver is available, allowing the President to waive sanctions if it serves U.S. national security interests, provided Congress is notified with reasons for the waiver.
In addition, the Secretary of the Treasury may prohibit transactions involving digital asset addresses linked to Russian entities if deemed in the national interest, with a report to Congress required within 90 days of such determinations. The Financial Crimes Enforcement Network (FinCEN) must mandate that U.S. persons report transactions exceeding $10,000 in digital assets through foreign accounts. The Secretary of the Treasury must also submit periodic reports to Congress detailing the progress in implementing these measures and identifying high-risk digital asset trading platforms.
Fox Business’ Eleanor Terrett commented: “Important to note here that the annual defense bill is a must-pass piece of legislation and slipping in seemingly innocuous amendments like this likely wouldn’t affect its passing. We may see more amendments like this as members attempt to get other bills attached to the NDAA.”
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