The US House of Representatives has approved a new bill targeting the use of cryptocurrency for illegal finance. Introduced by Representative Zach Nunn (R-Iowa) on July 22, the legislation seeks to form a governmental working group to assess crypto’s role in terrorism and money laundering.
This bipartisan bill aims to boost public-private collaboration in tackling illicit finance in the digital asset space. Rep. Nunn stressed the need to provide secure access to cryptocurrencies while protecting against security threats. The bill parallels sector-friendly initiatives like the Financial Innovation and Technology for the 21st Century Act (FIT21).
The working group, under the Treasury Department, will include experts from blockchain intelligence, research institutions, and fintech companies. The goal is to explore crypto transactions and deter exploitation by malicious actors. Analyst Jaret Seiberg notes this move counters critics demanding tougher anti-money laundering measures.
Additionally, the bill arrives amid efforts to gain support from Vice President Kamala Harris, following President Biden’s announcement of not running in 2024. The Treasury Department had earlier flagged vulnerabilities in decentralized finance that criminals exploit. Reports also indicated cryptocurrency may have funded attacks, underscoring the bill’s urgency.
This legislation is crucial for strengthening national security and ensuring the integrity of digital assets, aiming for long-term stability in the financial tech sector.
