Bills · HR 4394
IN COMMITTEE· 119TH CONGRESS
House BillHR 4394Finance and Financial Sector
the CODE Act of 2025
INTRO JUL 15· LAST ACTION JUL 15
READING
7MIN
COSPONSORS
0
READER REACTIONS0 TOTAL
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- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because decentralized finance (DeFi) has become a rapidly growing area in the financial world, but it currently lacks clear and consistent rules to prevent illicit activities like money laundering and funding terrorism. Criminals have exploited these gaps, posing risks to national security and the integrity of the financial system.
If this bill becomes law, it aims to create a framework that allows DeFi innovation to continue while also ensuring these services are not used for illegal purposes. This could make digital asset services safer and more trustworthy for users and investors. If it doesn't become law, the regulatory uncertainty and vulnerability to illicit finance in the DeFi space would likely persist, potentially leading to continued exploitation by criminals and a slower adoption of these technologies due to trust concerns.
KEY PROVISIONS
5AI-extractedPROVISION 01
Requires the Secretary of the Treasury to establish a public-private partnership program with decentralized finance services and risk management experts.
This program aims to develop and test innovative ways to integrate anti-money laundering and sanctions compliance directly into DeFi technologies.
PROVISION 02
Mandates that the Financial Crimes Enforcement Network (FinCEN) publish an advisory on responsible development and operation of decentralized finance services.
This will provide official guidance to the DeFi industry on how to strengthen compliance with existing financial crime laws.
PROVISION 03
Requires the Secretary of the Treasury to issue a rule defining "decentralized finance service" and requiring these services to implement anti-money laundering and sanctions compliance programs.
This provision establishes clear legal definitions and compliance obligations, bringing regulatory clarity and accountability to the DeFi sector.
PROVISION 04
The public-private partnership program is designed to terminate 18 months after the bill's enactment.
This sets a clear timeframe for the program, ensuring it is a focused, temporary initiative to gather information and make recommendations.
PROVISION 05
Prohibits decentralized finance services owned or controlled by certain government officials or their immediate family members from participating in the partnership program.
This prevents potential conflicts of interest or appearances of impropriety in the development of future regulations.
SPONSORSHIP
1 + 0
D· Illinois
YRS IN OFFICE
7
BILLS LED
50
ACTION TIMELINE
2 EVENTSJUL 15
Introduced in House
JUL 15
Referred to the House Committee on Financial Services.
BILL INFO
TypeHouse Bill
NumberHR 4394
Congress119th
StatusIn Committee
IntroducedJul 15, 2025
Last actionJul 15, 2025
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IN COMMITTEE· 119TH CONGRESS · FINANCIAL SERVICES COMMITTEE · INTRODUCED JUL 15, 2025
House BillHR 4394Finance and Financial Sector
the CODE Act of 2025
INTRODUCED JUL 15, 2025· LAST ACTION JUL 15, 2025
PASSAGE CHANCES
—%
READING
7 min
COSPONSORS
0
COMPLEXITY
Moderate
