US Lawmaker to Introduce Bill Strengthening Bank Secrecy Act Requirements for Crypto
U.S. Representative Sean Casten, a Democrat from Illinois, has announced plans to introduce a bill that will enhance the bank secrecy act requirements for cryptocurrency. This comes after reports surfaced that Hamas had raised millions of dollars through crypto prior to launching attacks in Israel. Casten revealed his intention during a hearing of the House Financial Services Committee’s panel on illicit finance and national security.
The legislation that Casten plans to introduce will be similar to a bill put forward by Senator Elizabeth Warren from Massachusetts. Although Casten did not specify which bill he was referring to, Warren reintroduced a bill in July that aims to crack down on the use of crypto for money laundering, sanctions evasion, and financing terrorism.
Recent revelations about terrorist organizations using cryptocurrency have led to increased scrutiny. The Wall Street Journal reported that Hamas and other militant groups had raised millions through crypto before carrying out attacks in Israel. However, crypto researcher Elliptic has stated that the figures used in the report were misrepresented.
Elliptic clarified that since the attacks on October 7th, only $21,000 in fresh crypto donations have been received, with most of it already frozen. The firm added that compared to other funding sources, crypto donations remain relatively small.
Other Lawmakers Express Concerns About Crypto
Former Chair of the House Financial Services Committee Maxine Waters also raised concerns about cryptocurrency’s connection to Iran and Hamas. Witnesses at the hearing confirmed that Hamas does utilize cryptocurrency for fundraising.
Adam Zarazinski, CEO of Inca Digital, a data analytics intelligence firm focused on crypto, acknowledged the potential risks associated with crypto but also highlighted its ability to democratize finance and promote economic growth and financial inclusion globally.
Hot Take: Strengthening Regulations to Combat Crypto-Related Terrorism
In response to reports of terrorist organizations using cryptocurrency for fundraising, US lawmakers are taking action to strengthen regulations. U.S. Representative Sean Casten plans to introduce a bill that will enhance the bank secrecy act requirements for cryptocurrency, similar to a bill introduced by Senator Elizabeth Warren. The goal is to crack down on the use of crypto for money laundering, sanctions evasion, and terrorism financing. However, recent clarifications from crypto researcher Elliptic indicate that the scale of crypto fundraising by Hamas may have been misrepresented. While concerns about cryptocurrency’s connection to terrorism persist, experts also recognize its potential to democratize finance and drive economic growth globally.
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