Public-private partnership program for decentralized finance services

(a) In general Not later than 6 months after the date of enactment of this Act, the Secretary of the Treasury, in consultation with the Financial Crimes Enforcement Network, the Office of Foreign Assets Control, the Federal Bureau of Investigation, the United States Secret Service, the National Institute of Standards and Technology, the Cybersecurity and Infrastructure Security Agency, and such other relevant agencies as determined by the Secretary of the Treasury, shall develop a public-private partnership program with decentralized finance services and relevant risk management experts to— (1) focus on decentralized finance applications and front-end user interfaces; (2) consider integrating anti-money laundering, identity verification, sanctions, and cybersecurity controls and other technological solutions into decentralized smart contracts prior to deployment on a public blockchain network; (3) test the capabilities of such integrated controls in decentralized smart contracts; (4) consider establishing a regulatory gateway to external, verifiable data inputs and outputs that are capable of upgrading smart contract behavior after it has been deployed; and (5) provide legislative and regulatory recommendations related to integrated compliance mechanisms for decentralized finance services. (b) Prohibition on certain participants Participants selected for the public-private partnership program required under subsection (a) shall not include a decentralized finance service owned or controlled, directly or indirectly, by a covered person. (c) Sunset The public-private partnership program developed under subsection (a) shall terminate 18 months after the date of enactment of this Act. (d) Rule of construction Nothing in subsection (a) shall be construed to limit, impair, or otherwise affect the supervisory, regulatory, or enforcement authority or the jurisdiction of the agencies described in subsection (a) under any applicable law. (e) Interagency coordination The Secretary of the Treasury shall share the recommendations provided pursuant to subsection (a)(5) with other appropriate agencies, and such agencies shall take the recommendations into account when issuing rules or carrying out supervisory functions.