(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.

(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—

(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—

(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.

(a) Audit requirement

Each Federal agency that collects, seizes, or maintains custody of electronically stored information shall conduct an annual digital asset audit to—

(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.

(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—

(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.

(a) Asset Forfeiture Fund

Section 524(c)(1) of title 28, United States Code, is amended—

(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.