Californian Democrat Brad Sherman introduces crypto amendment to NDAA, citing concerns over national security implications.
Brad Sherman, a Democrat from California, has submitted a substantial crypto amendment to the House Rules Committee.
It is suggested that this amendment be incorporated into the National Defense Authorization Act (NDAA) bill, which is required to be passed.
The growing concern regarding the use of cryptocurrencies in global transactions, particularly those that could potentially undermine U.S. national security interests, is exemplified by Sherman’s advocacy for this amendment.
Sherman’s objective is to empower the U.S. Treasury and financial regulators to more effectively regulate and supervise digital asset transactions by incorporating this amendment into the NDAA. This will mitigate potential dangers from foreign entities.
At the outset, Brad Sherman’s crypto amendment to the NDAA bill prioritized the provision of explicit authority to the U.S. Treasury Secretary to prevent digital asset trading platforms and transaction facilitators under U.S. jurisdiction from engaging with cryptocurrency addresses associated with Russia.
The amendment allows the Treasury Secretary to enforce this prohibition if it is determined to be essential for the national interest of the United States.
In addition, the Treasury Secretary is required to provide a comprehensive report to the relevant congressional committees and leadership within 90 days of exercising this authority, which will provide a detailed explanation of the basis for this determination.
The objective of this provision is to prevent Russian-affiliated entities from using cryptocurrencies to engage in activities that are detrimental to U.S. national security or to circumvent economic sanctions.
Brad continued with his amendment, which addressed allegations of significant offshore cryptocurrency transactions.
In particular, it mandates that the Financial Crimes Enforcement Network (FinCEN) require United States taxpayers to report any transaction surpassing $10,000 in value that involves digital assets through one or more accounts outside of the United States.
In accordance with section 5314 of title 31, United States Code, and as specified in section 1010.350 of title 31, Code of Federal Regulations, this reporting must be conducted using FinCEN Form 114 (FBAR).
The amendment specifies that this requirement must be implemented within 120 days of the Act’s enactment.
This measure is intended to prevent the use of offshore accounts to evade taxes or launder money through cryptocurrencies and to increase transparency.