Crypto-Asset National Security Enhancement and Enforcement Act of 2023

This bill targets large-scale decentralized finance (DeFi) platforms and their key participants for national security compliance. It requires digital asset protocol backers (those holding governance tokens worth $25 million or more) and transaction facilitators to annually certify token valuations to the SEC and Treasury, and subjects them to sanctions penalties if they facilitate violations of U.S. sanctions. It also amends anti-money laundering rules to apply to DeFi actors and mandates that crypto kiosk operators verify consumer identities and report kiosk locations. These changes directly affect major DeFi platforms and crypto businesses meeting the financial thresholds, aligning their operations with existing sanctions and banking regulations.