1. Short title This Act may be cited as the Digital Asset Anti-Money Laundering Act of 2023 . 2. Definitions (1) Anonymity enhanced cryptocurrency The term anonymity enhanced cryptocurrency means a digital asset containing any feature that— (A) prevents tracing through distributed ledgers; or (B) conceals or obfuscates the origin, destination, and counterparties of digital asset transactions. (2) Digital assets The term digital asset means an asset that is issued or transferred using a cryptographically secured distributed ledger, blockchain technology, or any other similar technology. (3) Digital assets kiosk The term digital assets kiosk means a digital assets automated teller machine that facilitates the buying, selling, and exchange of digital assets. (4) Digital assets mixer The term digital assets mixer means a website, software, or other service with features that conceal or obfuscate the origin, destination, or counterparties of digital asset transactions. (5) Financial institution The term financial institution has the meaning given the term in section 5312(a) of title 31, United States Code. (6) Money services business The term money services business has the meaning given the term in section 1010.100 of title 31, Code of Federal Regulations. (7) Unhosted wallet The term unhosted wallet means software or hardware that facilitates the storage of public and private keys used to digitally sign and securely transact digital assets, such that the stored value is the property of the wallet owner and the wallet owner has total independent control over the value. (8) Validator The term validator means a person or entity that— (A) processes and validates, approves, or verifies transactions, or produces blocks of digital asset transactions to be recorded on a cryptographically secured distributed ledger or any similar technology, as specified by the Secretary of the Treasury