Research Summary
The report discusses two significant legislative developments in the U.S. – The Terrorism Financing Prevention Act and The Deploying American Blockchains Act. The former aims to prevent foreign financial institutions from supporting transactions with foreign terrorist organizations, while the latter seeks to promote the competitiveness of the U.S. in blockchain technology.
Key Takeaways
The Terrorism Financing Prevention Act
- Legislative Action: The Terrorism Financing Prevention Act was introduced by U.S. Senators Mitt Romney, Mark R. Warner, Mike Rounds, and Jack Reed. The Act aims to prevent foreign financial institutions and digital asset transaction facilitators from supporting transactions with foreign terrorist organizations.
- Amendment to the PATRIOT Act: The Act proposes an amendment to section 311 of the PATRIOT Act, granting the Treasury the power to restrict U.S. financial institutions’ “transmittals of funds” involving activities it deems to be of “primary money laundering concern.”
- Regulatory Implications: The Act could potentially impose secondary sanctions on any non-U.S. person involved in the crypto sector, effectively banning U.S. persons from even touching a crypto network.
The Deploying American Blockchains Act
- Legislative Action: The Deploying American Blockchains Act was unanimously passed by the House Committee on Energy and Commerce. The Act, sponsored by Representative Larry Bucshon, is part of 44 pieces of legislation designed to improve people’s lives and secure America’s global competitive edge.
- Provisions of the Act: The Act calls for establishing best practices standards and supporting both private and public sectors in promoting the integration and understanding of blockchain technology. It also calls for establishing a seven-year Blockchain Deployment Program to promote U.S. leadership on a global scale.
- Implications for Blockchain Technology: The unanimous vote signals bipartisan support for blockchain technology and its applications. It also recognizes the urgency in strengthening U.S. competitiveness on the global scale.
Actionable Insights
- Monitor Regulatory Developments: Financial institutions and digital asset transaction facilitators should closely monitor the developments around The Terrorism Financing Prevention Act, as it could have significant implications for their operations.
- Understand the Implications: U.S. and non-U.S. persons involved in the crypto sector should understand the implications of the potential secondary sanctions imposed by The Terrorism Financing Prevention Act.
- Explore Opportunities in Blockchain: The Deploying American Blockchains Act presents opportunities for both private and public sectors to explore and integrate blockchain technology into their operations.
