[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10317 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 10317
To establish requirements and oversight for digital assets in the
custody of Federal agencies, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 8, 2026
Mr. Issa (for himself and Mr. Gooden) introduced the following bill;
which was referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To establish requirements and oversight for digital assets in the
custody of Federal agencies, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Digital Asset Inventory and Audit
Act of 2026'' or the ``Inventory Act of 2026''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Cryptographic key material.--The term ``cryptographic
key material'' means any cryptographic key, private key, public
key, seed phrase, recovery phrase, mnemonic phrase, key share,
multi-party computation share, authorization credential,
digital signature credential, cryptographic parameter, or other
cryptographic information or material, whether stored in
physical, electronic, digital, or other form, that is used to
generate, derive, authenticate, recover, authorize, validate,
sign, transfer, or otherwise exercise custody, ownership, or
control over a cryptocurrency or other distributed ledger
technology-based digital asset.
(2) Digital asset.--The term ``digital asset'' has the
meaning given to it in section 2 of the Genius Act (12 U.S.C.
5901).
(3) Discovery and scanning tool.--The term ``discovery and
scanning tool'' means a technology software specifically
designed to scan digital evidence and electronically stored
information extracted from computers, servers, mobile devices,
cloud environments, removable media, or other digital storage
systems to locate, identify, validate, inventory, classify, and
triage cryptocurrency private key material and other
cryptocurrency-related artifacts for the purpose of discovering
recoverable digital assets and supporting their audit,
investigation, recovery, seizure, and forfeiture.
(4) Electronically stored information.--The term
``electronically stored information'' means digital evidence,
digital storage devices, electronic records, cloud-based data,
and any other electronically stored data.
(5) Federal agency.--The term ``Federal agency'' means any
department, agency, bureau, office, or component of the United
States Government, including the Department of Justice,
Department of the Treasury, Department of Homeland Security,
Intelligence Community elements, regulatory agencies, and law
enforcement agencies.
(6) Wallet material.--The term ``wallet material'' means a
software application, hardware device, physical medium,
custodial service, digital account, or other technological
mechanism used to generate, store, manage, secure, access,
recover, or utilize digital asset cryptographic key material or
other authentication credentials for the purpose of holding,
accessing, transferring, receiving, or otherwise exercising
custody or control over a cryptocurrency or other distributed
ledger technology-based digital asset. The term includes
custodial wallets, non-custodial wallets, hardware wallets,
software wallets, mobile wallets, web-based wallets, multi-
signature wallets, multi-party computation wallets, and any
successor technologies that perform substantially similar
functions.
SEC. 3. IDENTIFICATION AND SAFEGUARDING OF DIGITAL ASSETS IN FEDERAL
CUSTODY.
(a) Program Establishment.--Not later than 180 days after enactment
of this Act, the Attorney General, in coordination with the Secretary
of Homeland Security, the Secretary of the Treasury, and the Director
of National Intelligence, shall issue a binding directive applicable to
all Federal agencies that directs all Federal agencies that collect or
seize electronically stored information such as digital storage
devices, electronic records, and digital evidence to--
(1) scan such electronically stored information for high
value digital assets in the form of cryptocurrency private key
material;
(2) properly secure these assets as soon as practicable
upon electronically stored information acquisition; and
(3) conduct annual audits to oversee activity logs,
ensuring comprehensive discovery, documentation, and secure
handling and storage of all digital assets in government
custody.
(b) Scanning Upon Seizure or Forfeiture.--For each criminal, civil,
or administrative case in which a Federal agency seizes, forfeits, or
otherwise acquires custody of electronically stored information, such
agency shall, as soon as practicable, scan the electronically stored
information for digital assets and associated cryptographic key
material.
(c) Standards and Protocols.--The Attorney General, in consultation
with the Director of the National Institute of Standards and
Technology, shall develop and publish technical standards governing--
(1) discovery and scanning tools of electronically stored
information for cryptocurrency private keys and wallet
material;
(2) secure extraction, storage, and access control of
cryptographic key materials;
(3) preservation of chain of custody and evidentiary
integrity; and
(4) logging and monitoring of all access to digital asset
custody systems.
(d) Training.--The Attorney General shall establish training
programs for Federal law enforcement officers, digital evidence
custodians, and forensic examiners regarding digital asset discovery,
handling, storage, and audit compliance.
SEC. 4. ANNUAL DIGITAL ASSET AUDITS.
(a) Audit Requirement.--Each Federal agency that collects, seizes,
or maintains custody of electronically stored information shall conduct
an annual digital asset audit to--
(1) identify and account for all digital assets and
cryptographic materials;
(2) verify secure custody and access controls;
(3) identify any loss, unauthorized access, or procedural
deficiencies; and
(4) document corrective actions taken.
(b) Reporting.--Not later than 180 days after completion of each
annual audit, the head of each Federal agency shall submit a report to
the Attorney General and the Committees on the Judiciary, Homeland
Security and Governmental Affairs, Select Committee on Intelligence,
and Banking of the Senate and the Committees on the Judiciary, Homeland
Security, Permanent Select Committee on Intelligence, and Financial
Services of the House of Representatives detailing audit findings and
remediation measures.
SEC. 5. ADDITIONAL AUDIT AND OVERSIGHT AUTHORITIES.
(a) Internal and External Audits.--In addition to audits conducted
by the Comptroller General of the United States under section 7, the
Inspector General of the relevant agency, in coordination with such
office as the Inspector General determines appropriate or such monitors
as the court may appoint, shall conduct an audit on electronic devices
for digital assets and associated cryptographic keys.
(b) No Limitation.--Nothing in this Act shall be construed to--
(1) limit the authority of any Federal entity with lawful
audit or oversight jurisdiction;
(2) authorize the collection, search, seizure, retention,
review, disclosure or use of electronically stored information,
digital assets or cryptographic private key material except as
otherwise authorized by law; or
(3) limit or impair any right, remedy, defense, privilege,
protection, suppression argument, or procedural requirement
otherwise available under law.
SEC. 6. INTERAGENCY COORDINATION AND OVERSIGHT.
The Attorney General shall convene an interagency working group to
coordinate digital asset custody practices, share audit findings, and
develop best practices across Federal agencies.
SEC. 7. COMPTROLLER GENERAL REVIEW.
(a) GAO Review.--Not later than 1 years after the date of enactment
of this Act, and every 3 years thereafter, the Comptroller General of
the United States and relevant Inspector General Offices shall conduct
a review of Federal agency compliance with this Act.
(b) Report to Congress.--The Comptroller General of the United
States shall submit to Congress a report on the review conducted under
subsection (a) containing findings and recommendations.
SEC. 8. FORFEITURE FUND FUNDING AND APPROPRIATIONS.
(a) Asset Forfeiture Fund.--Section 524(c)(1) of title 28, United
States Code, is amended--
(1) in subparagraph (I), by striking ``and'' at the end;
(2) in subparagraph (J), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following:
``(K) payments for the acquisition of digital
forensic tools necessary to carry out the Inventory Act
of 2026.''.
(b) Department of Treasury Forfeiture Fund.--Section 9705(a)(1) of
title 31, United States Code, is amended by adding at the end the
following:
``(K) Payments for the acquisition of digital
forensic tools necessary to carry out the Inventory Act
of 2026.''.
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