S. 2609: Financial Technology Protection Act of 2025

This bill is known as the Financial Technology Protection Act of 2025. It aims to establish a special group, called the Independent Financial Technology Working Group, to combat terrorism and other illegal financing methods that utilize modern financial technologies like digital assets.

Establishment of the Working Group

The Working Group will be comprised of:

• The Secretary of the Treasury, who will act as the chair.
• Representatives from various government departments, including:
  • The Department of the 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 from various sectors, including:
  • Financial technology companies
  • Blockchain intelligence companies
  • Financial institutions
  • Research institutions or organizations
  • Organizations focused on individual privacy and civil liberties

Duties of the Working Group

The main responsibilities of the Working Group will include:

• Conducting research on how terrorists and criminals use digital assets and related technologies.
• Developing proposals for legislation and regulations aimed at strengthening anti-money laundering and counter-terrorist financing efforts in the United States.

Reporting Requirements

The Working Group is required to report regularly:

• Within one year of the bill's enactment and annually for the following three years, the Working Group must submit findings and proposals to the Secretary of the Treasury and other relevant congressional committees.
• At the end of its activities, the Working Group will submit a final report detailing all findings and recommendations.

Duration and Termination

The Working Group will exist for a period of four years after the enactment of the bill. If necessary, it may continue functioning temporarily to finalize any ongoing activities.

Preventing Evasion of Sanctions

The bill mandates that, within 180 days of its enactment, the President must create a report assessing:

• How digital assets may be used by various actors, including states and terrorist organizations, to evade sanctions and finance terrorism.
• A strategy for the U.S. to reduce the illicit use of these technologies.

This report must be made public, with the unclassified portion available on the Treasury Department's website.

Definitions

The bill includes specific definitions for key terms such as:

• Digital asset: Any digital value recorded on a secured ledger.
• Illicit use: Activities including fraud, money laundering, and financing of illegal organizations.
• Emerging technologies: Technologies of importance as identified by relevant government entities.

Relevant Companies

None found.