United States of America: Introduction of Digital Asset Sanctions Compliance Enhancement Act in US Senate

On 17 March 2022, the Digital Asset Sanctions Compliance Enhancement Act (S.3867) was introduced in the United States (US) Senate by Sen. Elizabeth Warren (D-MA) and Sen. Jack Reed (D-RI). The Act aims to address loopholes that could be used to avoid the sanctions imposed on Russia as a consequence of its invasion of Ukraine. Specifically, the Act would give the Treasury Secretary the authority to ban digital asset trading platforms from engaging in cryptocurrency transactions with Russia, thus ensuring that Russian actors cannot use digital assets to evade sanctions. Furthermore, the Act would require individuals engaging in offshore transactions of over USD 10’000 in cryptocurrencies to file a form to the Financial Crimes Enforcement Network.