The U.S. Treasury Department is expected to address its concerns about the use of cryptocurrencies for illicit finance at an upcoming hearing.
U.S. Treasury officials will explain to House members their concerns about cryptocurrencies being involved in illicit finance and ask for more authority to go after bad actors, according to testimony prepared ahead of a congressional hearing on Wednesday.
“Treasury is deeply concerned about the use of virtual assets for any illicit financial activity,” said Brian Nelson, Treasury Undersecretary for Terrorism and Financial Intelligence. note Ahead of a House Financial Services Committee hearing focused on terrorism and illicit finance.
Lawmakers in Washington are increasingly turning their attention to the illicit financing of cryptocurrencies. Senator Elizabeth Warren of Massachusetts has been pushing for anti-money laundering legislation, and Senate Banking Committee Chairman Sherrod Brown of Ohio has said it is under discussion. On legislation aimed at using digital assets for money laundering Politico.
Over the past decade, Treasury has been working to put in place a framework to combat terrorist financing that “mitigates illicit financial risks while encouraging responsible innovation,” Nelson said in prepared testimony.
The Treasury Department has tools to address some of the problems, including holding authorities accountable for failing to comply with the Bank Secrecy Act.
“However, additional tools and resources are needed to combat illicit financing by players in virtual asset markets and forums,” Nelson said. “That’s why we are eager to work with Congress to adopt common-sense reforms that update our tools and authorities to meet the evolving challenges we face today.”
At the end of last year, sent by the treasury suggestion We call on lawmakers to strengthen our powers, including the ability to require new sanctions tools to go after bad actors in the cryptocurrency industry. The Treasury Department also said there needed to be more oversight of stablecoins, but that wasn’t mentioned in Nelson’s testimony.
focus on hamas
Nelson also said he would keep lawmakers informed about Treasury Department efforts to prevent Hamas from moving in or raising funds to support terrorism and that the agency was looking at new methods the group could use.
“While we continue to assess that terrorist use of digital assets is only a small part of the established mechanisms for moving money, we also note that terrorist groups have and will continue to use digital assets to procure, transfer and store illicit proceeds. “I recognize that can happen,” Nelson said.
Nelson said the Treasury Department will continue to target financing linked to Hamas in the future.
Nelson’s comments come a week after the Treasury Department released its 2024 National Risk Assessment on Money Laundering, Terrorist Financing and Proliferation Financing, which highlighted the threats and risks of illicit finance in the United States, including cryptocurrencies. that much report For example, drug laundering is mostly cash-based, but the agency said criminals are increasingly turning to virtual assets.
The House Financial Services Committee’s digital asset-focused panel is also scheduled to hold a hearing Thursday focused on cryptocurrencies and illicit activity.
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