This Act may be cited as the “Russia Cryptocurrency Transparency Act”.

Congress finds the following:

(a) Congressional notification.—Subsection (e) of section 36 of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2708) is amended by adding at the end the following new paragraph:

“(7) The Secretary of State shall notify the appropriate congressional committees not later than 15 days before paying out a reward in cryptocurrency.”.

(b) Report.—Not later than 180 days after the date of the enactment of this Act, the Secretary of State shall submit to the appropriate congressional committees a report on the use of cryptocurrency as a part of the Department of State Rewards program that—

(1) explains why the Department of State made the determination to pay out rewards in cryptocurrency;

(2) lists each cryptocurrency payment already provided by the State Department;

(3) provides evidence as to why cryptocurrency payments would be more likely to induce whistleblowers to come forward with information than rewards paid out in United States dollars or other prizes;

(4) analyzes how the State Department’s use of cryptocurrency could undermine the dollar’s status as the global reserve currency; and

(5) examines if the State Department’s use of cryptocurrency could provide bad actors with additional hard-to-trace funds that could be used for criminal or illicit purposes.

(c) Appropriate Committees of Congress Defined.—In this section, the term “appropriate committees of Congress” means—

(1) the Committee on Foreign Affairs of the House of Representatives;

(2) the Committee on Foreign Relations of the Senate.

(a) In General.—Not later than 30 days after the date of the enactment of this Act, the Secretary of State, in coordination with the Secretary of the Treasury and the Administrator of the United States Agency for International Development, shall submit to the appropriate congressional committees a report on the most effective avenues to promote economic development and provide humanitarian aid to Ukraine, including possible uses of cryptocurrencies or other technologies incorporating blockchains. Such report shall—

(1) review and analyze the advantages offered by cross-border transactions involving digital assets relative to other traditional avenues for cross-border humanitarian relief payments and the reasons for those advantages, including structural barriers which may impact the cost, efficiency, and reliability of traditional payment channels; and

(2) also review and analyze ways in which technologies incorporating blockchains can—

(A) assist in the care, support, or resettlement of refugees and internally displaced persons from Ukraine;

(B) address humanitarian access challenges and ensure the effective delivery of such assistance to persons from Ukraine;

(C) increase efficiency, accountability, and transparency in the administration of humanitarian aid provided by the United States to persons from Ukraine;

(D) prevent corruption through the use of “web3” technologies;

(E) improve access to capital; and

(F) bolster the efficiency and reliability of cross-border remittances.

(b) Form.—The report required under subsection (a) shall be submitted in unclassified form and may include a classified annex.

(c) Appropriate congressional committees defined.—In this section, the term “appropriate congressional committees” means—

(1) the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives; and

(2) the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate.

(a) Sense of Congress.—It is the sense of Congress that—

(1) on March 9, 2022, President Biden issued an Executive Order outlining a national policy to mitigate the risks, and harness the potential benefits of, digital assets and distributed ledger technology;

(2) the growing development and adoption of digital assets have created an urgent need for the United States to play a leading role in the global financial system and facilitate technological innovation;

(3) these developments have had significant implications that pose risks to the financial stability and national security interest of the United States, including issues relating to privacy and surveillance;

(1) the United States Government must—

(A) ensure the efficacy and enforcement of the United States’ sanctions regime by preventing the misuse of digital assets, which can facilitate transactions by Russian persons subject to sanctions;

(B) mitigate national security liabilities and systemic financial risks posed by the misuse of digital assets by developing policy recommendations and addressing existing regulatory gaps; and

(C) maintain technological leadership to promote United States global competitiveness and play a leading role in the global governance of digital assets.

(b) Report.—

(1) IN GENERAL.—Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury, in consultation with the Secretary of State, shall submit a report to the appropriate congressional committees that provides an assessment on how digital currencies affect the effectiveness and enforcement of United States sanctions against the Russian Federation and actors subject to sanctions related to the Russian Federation’s invasion of Ukraine.

(2) MATTERS TO BE INCLUDED.—The report under paragraph (1) shall—

(A) describe any efforts by the Russian Federation or persons subject to sanctions related to the Russian Federation’s invasion of Ukraine to utilize digital assets to evade the sanctions regimes of the United States and its international allies and partners;

(B) describe any efforts by persons subject to sanctions related to the Russian Federation’s invasion of Ukraine to use decentralized finance technology or other similar technology to effect transactions, including digital wallets, digital asset trading platforms, and digital asset exchanges;

(C) assess how the use or adoption of digital currencies could undermine the national security interests of the United States and impact the efficacy and enforcement of sanctions, , and the enforcement of anti-money laundering provisions;

(D) detail actions taken by the United States government to work with private sector actors to combat the evasion of sanctions imposed by the United States; and

(E) include recommendations for new legislative and regulatory measures needed to strengthen the United States Government’s ability to prevent any states, state-sponsored actors, and non-state-sponsored actors from using digital currencies to evade sanctions imposed by the United States Government.

(c) Appropriate committees of congress defined.—In this section, the term “appropriate committees of Congress” means—

(1) the Committee on Foreign Affairs of the House of Representatives;

(2) the Committee on Financial Services of the House of Representatives;

(3) the Committee on Foreign Relations of the Senate; and

(4) the Committee on Banking, Housing, and Urban Affairs of the Senate.

(d) Report Form.—The report required under subsection (b) shall be submitted in unclassified form with a classified annex, if necessary.