US HB4394

Secretary of the Treasury must establish a public-private partnership program within 6 months to develop anti-money laundering, identity verification, sanctions compliance, and cybersecurity controls for decentralized finance (DeFi) services, with the program terminating after 18 months

Financial Crimes Enforcement Network (FinCEN) must publish an advisory within 18 months on responsible development and operation of DeFi services on public blockchain networks to strengthen Bank Secrecy Act compliance

Treasury must issue a rule within 30 months defining "decentralized finance service" and "decentralized smart contract" and requiring DeFi services to maintain risk-based anti-money laundering and sanctions compliance programs

DeFi services owned or controlled by the President, Vice President, Members of Congress, senior executive branch employees, or their immediate family members are prohibited from participating in the partnership program

Covered DeFi services include peer-to-peer trading platforms, lending protocols, staking/liquidity services, mixing services, and cross-chain bridges operating through smart contracts on public blockchain networks