US Lawmaker Brad Sherman Pushes Crypto Amendment In NDAA Bill

Californian Democrat Brad Sherman has filed a significant crypto amendment with the House Rules Committee. This amendment is proposed to be included in the must-pass National Defense Authorization Act (NDAA) bill.

Sherman’s push for this amendment gives light to the fact that the increasing concern over the use of cryptocurrencies in global transactions, particularly those that could potentially undermine U.S. national security interests.

By integrating this amendment into the NDAA, Sherman aims to provide the U.S. Treasury and financial regulators with enhanced powers to control and monitor digital asset transactions, thereby addressing potential threats from foreign entities.

Discretionary Prohibition of Transactions with Russian Affiliates

Brad Sherman’s crypto amendment to the NDAA bill started off with a significant focus being placed on granting the U.S. Treasury Secretary explicit authority to prohibit digital asset trading platforms and transaction facilitators under U.S. jurisdiction from engaging with cryptocurrency addresses linked to Russia.

According to the amendment, the Treasury Secretary may enforce this prohibition if it is deemed crucial for the national interest of the United States. Furthermore, within 90 days of exercising this authority, the Treasury Secretary must submit a detailed report to the appropriate congressional committees and leadership, outlining the basis for such a determination. This provision aims to prevent Russian-affiliated entities from leveraging cryptocurrencies to circumvent economic sanctions or engage in activities detrimental to U.S. national security.

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Reporting Requirements for Large Offshore Crypto Transactions

Brad went on with his amendment addressing reports of large offshore cryptocurrency transactions. Specifically, it mandates that the Financial Crimes Enforcement Network (FinCEN) require United States taxpayers to report any transaction exceeding $10,000 in value if it involves digital assets through one or more accounts outside of the United States.

This reporting must be done using FinCEN Form 114 (FBAR), as specified in section 1010.350 of title 31, Code of Federal Regulations, and in accordance with section 5314 of title 31, United States Code.

The amendment stipulates that this requirement should be enforced within 120 days of the enactment of the Act. This measure is designed to enhance transparency and prevent the use of offshore accounts to evade taxes or launder money through cryptocurrencies.

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