1. Short title This Act may be cited as the Crypto-Asset National Security Enhancement and Enforcement Act of 2023 . 2. Decentralized finance national security enhancement (a) Definitions In this section: (1) Control The term control , with respect to a digital asset protocol, includes the power, directly or indirectly, to direct a change in the computer code or other terms governing the operation of the protocol, as determined by the Secretary of the Treasury. Such power may be exercised through ownership of governance tokens, administrator privileges, ability to alter or upgrade computer code, or otherwise. (2) Digital asset The term digital asset means any digital representation of value that is recorded on a cryptographically secured distributed ledger or any similar technology or another implementation, which was designed and built as part of a system to leverage or replace blockchain, distributed ledger technology, or their derivatives. (3) Digital asset protocol The term digital asset protocol means any communication protocol, smart contract, or other software— (A) deployed through the use of distributed ledger or similar technology; and (B) that provides a mechanism for users to interact and agree to the terms of a trade for digital assets. (4) Digital asset protocol backer (A) In general The term digital asset protocol backer means any person that— (i) holds governance tokens of a digital asset protocol valued at more than $25,000,000 (subject to adjustment under subparagraph (B)); or (ii) makes— (I) an investment in the development of a digital asset protocol of $25,000,000 (subject to adjustment under subparagraph (B)) or more; or (II) any combination of investments in the development of a digital asset protocol if— (aa) any such investment is not less than $2,500,000 (subject to adjustment under subparagraph (B))