- The US House of Representatives has passed a bill to form a group investigating cryptocurrency use in terrorism and money laundering
- The bill has been seen as largely symbolic and faces amendments before it passes
- The situation is another example of congressional action on cryptocurrency
The US House of Representatives has passed a bill to establish a working group focused on investigating the use of cryptocurrencies in terrorism and money laundering, but it is unlikely to pass without a corresponding bill in the Senate. Described as being largely symbolic, the bill will almost certainly face amendments if it is to have any success and is being seen as a way for critics of the space to have their concerns registered. Nevertheless, it represents another instance of congressional action on cryptocurrency-related measures and more discussion of the darker side of crypto use.
Bill is “Crucial” for America’s National Security
The bill, sponsored by Representative Zach Nunn of Iowa, aims to create a temporary working group under the Treasury Department. This group would be tasked with examining how digital assets might be exploited by bad actors and providing recommendations to address these issues. It would include members from various sectors, including “blockchain intelligence companies.
Nunn emphasized the importance of the bill, stating it is “crucial in strengthening America’s national security, protecting our digital assets, and ensuring the next generation of financial and internet technology is built right here in America.”
This bill previously cleared the House Financial Services Committee with unanimous approval last year. However, despite the House’s bipartisan support for sector-friendly legislation like the Financial Innovation and Technology for the 21st Century Act (FIT21), the Senate has yet to show a similar level of support for cryptocurrency measures.
Jaret Seiberg, an analyst at TD Cowen, described the bill as largely symbolic, suggesting it serves as a way for both crypto critics and advocates to express their positions. “For crypto critics, this is a way to register their demands for money laundering crackdowns,” Seiberg noted, adding that “for crypto advocates, this gives them political cover from attacks that their support for digital assets facilitates money laundering and criminal activity.”
Crypto Gets Political
The issue of cryptocurrency has become a significant topic in the run-up to the 2024 presidential election, with challenger Donald Trump emerging as a pro-crypto candidate. However, the chances of a narrowly divided Congress reaching a consensus on comprehensive regulatory measures for the industry remain slim. As such, the crypto industry is closely monitoring several relevant provisions under consideration for the National Defense Authorization Act, the annual bill that outlines the nation’s defense priorities.
In related news, industry representatives reached out to Vice President and Democratic presidential candidate-in-waiting Kamala Harris on Monday, urging her to adopt a supportive stance on cryptocurrency as she positions herself as a potential Democratic presidential candidate.
The Digital Chamber sent a letter to Harris, asking her to incorporate a positive view on digital assets and blockchain technology into the party’s platform. They also recommended choosing a running mate with a strong track record in digital asset technology and pro-innovation policies.
This appeal to Harris reflects a broader push from various industry participants, who are advocating for a more crypto-friendly approach from the potential future leader of the Democratic Party.
