According to CoinDesk, the U.S. House of Representatives has passed a bill to establish a working group to investigate the use of cryptocurrencies in terrorism and money laundering. The bill, sponsored by Rep. Zach Nunn (R-Iowa), aims to create a temporary group under the Treasury Department to assess and recommend measures to prevent the misuse of digital assets by bad actors. The group would include industry representatives, such as members from blockchain intelligence companies.
Despite the House's approval, the bill is unlikely to advance further without a corresponding Senate measure. This legislation is part of a broader effort by Congress to address cryptocurrency regulation, although the Senate has yet to match the House's progress. The bill's passage follows other crypto-friendly measures, such as the Financial Innovation and Technology for the 21st Century Act (FIT21), which have also cleared the House Financial Services Committee.
In a speech on the House floor, Nunn emphasized the importance of the legislation in enhancing national security, protecting digital assets, and fostering the development of financial and internet technology within the United States. However, Jaret Seiberg, an analyst at TD Cowen, suggested that the bill serves more as a political gesture. He noted that it allows crypto critics to push for stricter money laundering regulations while providing crypto advocates with political cover against accusations that digital assets facilitate criminal activities.
As the 2024 presidential contest approaches, cryptocurrency has become a significant political issue. However, the likelihood of a divided Congress reaching a consensus on comprehensive crypto regulation remains slim. Industry insiders are closely monitoring relevant provisions in the National Defense Authorization Act, which sets the nation's defence priorities.
Additionally, the Digital Chamber sent a letter to Vice President Kamala Harris, urging her to adopt a positive stance on digital assets and blockchain technology. The letter called for Harris to include a pro-crypto position in the Democratic party's platform and to select a running mate with a history of supporting innovation in digital asset technology. This appeal aligns with similar requests from other industry participants, advocating for a more crypto-friendly approach from the potential Democratic leader.
