1. Short title This Act may be cited as the Stop Terrorist Use of Virtual Currencies Act . 2. Findings The Congress finds the following: (1) Virtual currencies (VC) provide low-cost, high-speed means for verified transactions. (2) When used positively, VCs unite disparate financial markets and provide a convenient means for a number of constituencies, including the economically marginalized, to conduct transactions cheaply across large geographic expanses. (3) Simultaneously, to the extent regulatory frameworks are premised on institution-based transactions, VCs could be exploited by terrorists and cybercriminals to fund untraceable operations. (4) According to the Center for New American Security (CNAS), if VCs become sufficiently liquid and easily convertible, and terrorist groups acquire technical infrastructure needed to support VC activity at a significant scale, VCs could pose a highly dangerous threat to the United States and its partners. (5) The Committee on Financial Services issued a report entitled, Stopping Terror Finance: Securing the U.S. Financial Sector in December, 2016, which includes numerous recommendations to enhance a whole-of-government approach towards counter terrorist financing. 3. Sense of Congress It is the Sense of Congress that— (1) to the extent current statutes require financial institutions to serve as the first line of defense against illicit activity in the global financial system, and that VCs specifically bypass such institutions, the United States needs to adapt its financial regulatory framework to ensure adequate supervision of financial activity; (2) the President should develop principles to prioritize counter terrorist financing among other forms of illicit financial activity and provide recommendations to Congress to address this threat; (3) such principles should include a focus on innovation and public-private partnership