Bill Overview
Title: To require congressional notification prior to payments of Department of State rewards using cryptocurrencies, and for other purposes.
Description: This bill requires the Department of State to notify Congress before paying out a reward in cryptocurrency under an existing program that authorizes rewards for information leading to the arrest or conviction of parties responsible for certain criminal acts. (Current law allows such rewards to consist of money, nonmonetary items, or both.) The State Department must also report to Congress on any cryptocurrency payments made under the rewards program, including an explanation of why a reward was made using cryptocurrency. The bill also requires the State Department to report to Congress on the most effective avenues to provide aid to Ukraine, including possible uses of cryptocurrencies or other blockchain-related technologies. (Blockchain is a digital ledger technology that allows for transactions without a trusted intermediary, such as a bank.) The Department of the Treasury must report to Congress an assessment of how digital currencies can affect the effectiveness and enforcement of U.S. sanctions relating to Russia's invasion of Ukraine.
Sponsors: Rep. Meeks, Gregory W. [D-NY-5]
Target Audience
Population: Individuals involved in digital currency and sanctions policies
Estimated Size: 300000
- The bill impacts the Department of State personnel, particularly the Office of Economic Sanctions Policy and Implementation.
- The bill impacts individuals and entities involved in digital currencies and their regulation, as it introduces a new role focusing on digital currency security.
- Malevolent actors using digital currencies to circumvent sanctions are indirectly impacted by increased scrutiny and policy development.
- Entities or individuals eligible for Department of State rewards may be affected by changes in the payment method, specifically those involving cryptocurrencies.
- The bill impacts policymakers interested in the implications of digital currencies on geopolitical situations, particularly regarding Russia and Ukraine.
Reasoning
- The policy is primarily focused on digital currency security and sanctions, so it directly affects those involved in government roles pertaining to these areas including policymakers.
- Given the technological aspect, individuals in the cryptocurrency and blockchain sectors may perceive indirect impacts due to increased regulations.
- The majority of Americans may not perceive a significant immediate impact on their daily lives from this policy, as it is highly specialized.
- Considering budget limitations, direct impacts are likely limited to key stakeholders such as those in the Department of State and entities closely following cryptocurrency policies.
Simulated Interviews
Sanctions Policy Analyst (Washington, D.C.)
Age: 34 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- This policy provides a needed framework to handle digital currency risks during sanctions.
- It might initially increase workload but ensures stronger policy resilience.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Cryptocurrency Developer (San Francisco, CA)
Age: 28 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- There might be increased regulatory scrutiny but it's a necessary step for industry legitimacy.
- The implications for sanction resilience should be balanced with innovation freedom.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Financial Services Advisor (New York, NY)
Age: 45 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- While it doesn't directly impact clients yet, it sets a precedent for future regulations.
- It's important for overall market stability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Digital Security Consultant (Austin, TX)
Age: 38 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- It's a positive move towards enhancing digital currency security against misuse.
- Could lead to more business opportunities in developing security solutions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Policy Advocacy Group Member (Chicago, IL)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 6/20
Statement of Opinion:
- The act provides a clear focus on preventing the misuse of digital currencies.
- Striking a balance between regulation and innovation will be critical.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 8 | 6 |
International Relations Scholar (Miami, FL)
Age: 41 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 2/20
Statement of Opinion:
- The act is pivotal in understanding and controlling the geopolitical uses of digital currencies.
- Will help in creating more researched and effective policies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Cryptocurrency Trader (Boston, MA)
Age: 31 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 5/20
Statement of Opinion:
- Uncertain regulations can impact market stability, but clarity is beneficial in the long term.
- Will watch how this policy impacts sanction circumvention.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Blockchain Startup Founder (Seattle, WA)
Age: 27 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 5/20
Statement of Opinion:
- The push for transparency helps in legitimation, though it might introduce stringent compliance costs.
- This policy might open discussions for broader applications.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 7 |
Professor of Finance (Houston, TX)
Age: 44 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- Policies like this are crucial in curbing illegal activities through cryptocurrencies.
- It will serve as an important case for other regulations globally.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Computing Master’s Student (Los Angeles, CA)
Age: 22 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- Interesting real-world implications for my studies on how governments regulate crypto.
- Learning about these policies could shape career paths.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Cost Estimates
Year 1: $1150000 (Low: $1000000, High: $1300000)
Year 2: $1100000 (Low: $950000, High: $1250000)
Year 3: $1050000 (Low: $900000, High: $1200000)
Year 5: $1000000 (Low: $850000, High: $1150000)
Year 10: $1000000 (Low: $850000, High: $1150000)
Year 100: $1000000 (Low: $850000, High: $1150000)
Key Considerations
- Appointment and maintenance of the director position require ongoing funding and support.
- Administrative burden in terms of reporting compliance to Congress is a cost factor.
- Ensuring cybersecurity and resilience against cryptocurrency misuse is crucial for policy success.
- Assessing cryptocurrency implications on sanctions and foreign aid accurately is complex and requires expertise.