H.R. 2384 — what changed

Establishment— There is established the Independent Financial Technology Working Group to Combat Terrorism and Illicit Financing (in this section referred to as the “Working Group”), which shall consist of the following:

The Secretary of the Treasury, acting through the Under Secretary for Terrorism and Financial Crimes, who shall serve as the chair of the Working Group.

A senior-level representative from each of the following:

The Office of Terrorism and Financial Intelligence.

The Internal Revenue Service.

The Department of Justice.

The Federal Bureau of Investigation.

The Drug Enforcement Administration.

The Department of Homeland Security.

The United States Secret Service.

The Department of State.

The Office of the Director of National Intelligence.

At least five individuals appointed by the Under Secretary for Terrorism and Financial Crimes to represent the following:

Financial technology companies.

Blockchain intelligence companies.

Financial institutions.

Institutions or organizations engaged in research.

Institutions or organizations focused on individual privacy and civil liberties.

Such additional individuals as the Secretary of the Treasury may appoint as necessary to accomplish the duties described under subsection (b).

Duties— The Working Group shall—

conduct research on terrorist and illicit use of digital assets and other related emerging technologies; and

develop legislative and regulatory proposals to improve anti-money laundering, counter-terrorist, and other counter-illicit financing efforts in the United States.

In general— Not later than one year after the date of the enactment of this Act, and annually for the 3 years thereafter, the Working Group shall submit to the Secretary of the Treasury, the heads of each agency represented in the Working Group pursuant to subsection (a)(2), and the appropriate congressional committees a report containing the findings and determinations made by the Working Group in the previous year and any legislative and regulatory proposals developed by the Working Group.

Final report— Before the date on which the Working Group terminates under subsection (d)(1), the Working Group shall submit to the appropriate congressional committees a final report detailing the findings, recommendations, and activities of the Working Group, including any final results from the research conducted by the Working Group.

In general— The Working Group shall terminate on the later of—

the date that is 4 years after the date of the enactment of this Act; or

the date on which the Working Group completes any wind-up activities described under paragraph (2).

Authority to wind up activities— If there are ongoing research, proposals, or other related activities of the Working Group ongoing as of the date that is 4 years after the date of the enactment of this Act, the Working Group may temporarily continue working in order to wind-up such activities.

Return of appropriated funds— On the date on which the Working Group terminates under paragraph (1), any unobligated funds appropriated to carry out this section shall be transferred to the Treasury.

In general— Not later than 180 days after the date of the enactment of this Act, the President, acting through the Secretary of the Treasury and in consultation with the head of each agency represented on the Independent Financial Technology Working Group to Combat Terrorism and Illicit Financing pursuant to section 2(a)(2), shall submit to the appropriate congressional committees a report that describes—

the potential uses of digital assets and other related emerging technologies by States, non-State actors, foreign terrorist organizations, and other terrorist groups to evade sanctions, finance terrorism, or launder monetary instruments, and threaten the national security of the United States; and

a strategy for the United States to mitigate and prevent the illicit use of digital assets and other related emerging technologies.

In general— The report required by paragraph (1) shall be submitted in unclassified form, but may include a classified annex.

in precompressed, easily downloadable versions, in all appropriate formats; and

in machine-readable format, if applicable.

Sources of information— In preparing the reports required by paragraph (1), the President may utilize any credible publication, database, or web-based resource, and any credible information compiled by any government agency, nongovernmental organization, or other entity that is made available to the President.

Briefing— Not later than 2 years after the date of the enactment of this Act, the Secretary of the Treasury shall brief the appropriate congressional committees on the implementation of the strategy required by subsection (a)(1)(B).