The US House of Representatives has passed a new bill that aims to stop illegal money transfers using cryptocurrency. Representative Zach Nunn (R-Iowa) introduced the bill on July 22. Its goal is to set up a government working group to look into the role of cryptocurrency in terrorism and money laundering.
This move from both parties aims to make it easier for the government and businesses to work together to stop illegal financial activities in the digital asset sector. As cryptocurrencies become more popular, Rep. Nunn emphasized the need to make sure that everyone can access them safely and that security risks and illegal activities don’t happen.
Rep. Nunn said, “This bipartisan bill will help make sure the United States is ready to deal with security risks and stop illegal funds laundering while also protecting all Americans’ consumer choice.”
Crypto Regulation Efforts Continue
The bill is part of the House’s ongoing work to regulate cryptocurrencies, like the Financial Innovation and Technology for the 21st Century Act (FIT21) and other similar bills. However, the Senate has not yet shown the same enthusiasm for crypto-related bills as the House.
Rep. Nunn stressed how important the bill was for national security and how it would help protect digital assets. The suggested working group would be run by the Treasury Department and include experts from research institutions, fintech companies, and blockchain intelligence to stop people from abusing crypto transactions.
An analyst at TD Cowen named Jaret Seiberg said the bill answers to calls for stricter laws against money laundering and gives the crypto industry political leverage against criticism. The bill’s introduction fits with ongoing efforts by the business to get support from Vice President Kamala Harris, especially since President Joe Biden said he wouldn’t run for president again in 2024.
In April 2023, the US Department of the Treasury released reports that pointed out problems with decentralized finance (DeFi), such as not following rules against money theft and having weak security. Also, reports from October suggested that cryptocurrencies may have been used to pay for attacks, showing that they can be used to get around standard banking systems.
