H.R. 2384: Financial Technology Protection Act of 2025

The bill, known as the Financial Technology Protection Act of 2025, aims to address concerns regarding the use of financial technologies in terrorism and illicit financing. Its main features include the establishment of an Independent Financial Technology Working Group, chaired by the Secretary of the Treasury, which will consist of representatives from various government agencies and private sector experts in financial technology, blockchain intelligence, and related fields.

Key Components of the Bill

Formation of the Working Group

The Working Group will include:

• The Secretary of the Treasury (Chair)
• Senior representatives from:
  • The Department of Treasury
  • 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 Treasurer to represent:
  • Financial technology companies
  • Blockchain intelligence companies
  • Financial institutions
  • Research organizations
  • Organizations focused on privacy and civil liberties

Duties of the Working Group

The Working Group will have two primary responsibilities:

• Conducting research on the use of digital assets and emerging technologies for terrorist and illicit purposes.
• Developing legislative and regulatory proposals to strengthen efforts against money laundering, terrorism financing, and other illicit activities in the U.S.

Reporting Requirements

The Working Group must submit reports that include its findings and proposed legislation:

• An annual report to be submitted to the Secretary of the Treasury and other relevant congressional committees for four years after the bill’s enactment.
• A final report prior to the termination of the Working Group, detailing research findings, recommendations, and activities.

Timeframe and Additional Provisions

The Working Group is set to operate for a minimum of four years unless extended for ongoing activities. Any unspent funds will revert to the Treasury upon dissolution of the group.

Addressing Illicit Use of Digital Assets

Presidential Report and Strategy

Within 180 days of enactment, the President, through the Secretary of the Treasury, will report on:

• The potential for digital assets and emerging technologies to be used by various entities to evade sanctions and finance terrorism.
• A strategy to mitigate and prevent illicit uses of these technologies.

This report must be unclassified but may include a classified annex, and it will be made available to the public on the Department of Treasury's website.

Implementing Strategy Briefing

Two years after the enactment, the Secretary of the Treasury is required to brief congressional committees on the implementation of the prevention strategy.

Definitions

The bill includes specific definitions for terms such as:

• Digital Asset: Any digital representation of value recorded on a secured digital ledger.
• Blockchain Intelligence Company: A business providing services related to blockchain for investigations and risk management.
• Illicit Use: Includes various illegal activities such as fraud, money laundering, and transactions involving significant criminal activity.

Relevant Companies

• COIN - Coinbase Global, Inc.: A prominent cryptocurrency exchange likely to be impacted by new regulations concerning anti-money laundering and counter-terrorism financing.
• GS - The Goldman Sachs Group, Inc.: A major financial institution that may need to adapt its compliance strategies in light of the bill's requirements concerning financial technology.
• FTNT - Fortinet, Inc.: A cybersecurity company that provides solutions potentially relevant to the protection against illicit technology-driven activities.