Bill targeting illicit use of crypto passes US House

Cointelegraph2024/07/23 20:43

By:Turner Wright

Lawmakers in the United States House of Representatives voted in favor of legislation to establish a working group researching the illicit use of digital assets.

A majority of House members approved the Financial Technology Protection Act by voice vote on July 22. The bill, introduced in April 2023 by Representatives Zach Nunn and Jim Himes, aims to address how “rogue and foreign nations” could use crypto to evade sanctions by having members of several federal agencies coordinate their efforts.

“This bipartisan bill will help ensure the United States is prepared to address security risks and prevent illicit money laundering while also protecting consumer choice for all Americans,” said Representative Nunn. “We must do both simultaneously to ensure the long-term integrity of digital assets.”

Actions on H.R.2969, the Financial Technology Protection Act. Source: Congress.gov

According to Representative Nunn, the working group established by the bill’s passage would include “five crypto industry leaders” from related private-industry firms and representatives from the Justice Department, Internal Revenue Service, Office of Foreign Assets Control and other federal agencies.

Related: How law enforcement struggles with sophisticated crypto laundering

The Financial Technology Protection Act was one of the few crypto-related bills lawmakers passed out of the House Financial Services Committee in July 2023. The Financial Innovation and Technology for the 21st Century (FIT21) Act was sent out of committee and approved by House members in May. The bill is expected to go to the Senate for approval.

It’s unclear if events surrounding the US election could impact how lawmakers approach crypto legislation before and after November. Before he announced he would not be running for reelection, President Joe Biden vetoed a resolution approved in the House and Senate that would have overturned a Securities and Exchange Commission rule on banks recording crypto as a liability on their balance sheets.

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