Disrupting Bad Actors
United States Senators Cynthia Lummis (R-WY) and Bill Hagerty (R-TN) have introduced a new bill aimed at combating illicit finance in the crypto sector. Known as the Preventing Illicit Finance Through Partnership Act of 2024, the bill seeks to coordinate efforts between federal agencies and private companies to fight against illicit financial activity. According to Senator Hagerty, federal law enforcement agencies already have the necessary tools to combat illicit finance, but effective communication with the private sector is crucial. The bill aims to foster collaboration and information sharing to detect and disrupt bad actors.
How It Works
If approved, the Preventing Illicit Finance Through Partnership Act of 2024 would establish a pilot program consisting of 20 money services organizations, chaired by the attorney general. This program would enable federal agencies and private sector entities to share information regarding possible instances of illicit finance. Additionally, it would provide private companies with a channel to report suspicious money transfers and sanctions evasion to federal agencies. Senator Lummis emphasized that while there are bad actors in every industry, crypto assets themselves are not the problem. The bill aims to allow federal regulators to work with the private sector to identify and address bad actors without stifling the entire crypto industry.
A Collaborative Solution
The Preventing Illicit Finance Through Partnership Act of 2024 is one of several crypto-related bills introduced recently. Senator Elizabeth Warren’s Digital Asset Anti-Money Laundering Act has gained support for enforcing compliance requirements in the crypto space. However, Lummis and Hagerty’s bill takes a more collaborative approach to addressing issues in the cryptocurrency sector. While some lawmakers have expressed concerns about potential impacts, this bill aims to inform regulators about crypto asset use cases and establish federal rules that support innovation in the industry.
Hot Take: Senators Introduce New Crypto Legislation to Combat Illicit Finance in Crypto
United States Senators Cynthia Lummis and Bill Hagerty have introduced the Preventing Illicit Finance Through Partnership Act of 2024. This bill aims to coordinate efforts between federal agencies and private companies to combat illicit finance in the crypto sector. By fostering collaboration and information sharing, the bill seeks to detect and disrupt bad actors without stifling the entire emerging crypto industry. If approved, the bill would establish a pilot program allowing federal agencies and private sector entities to share information on possible instances of illicit finance. This collaborative approach is seen as a way to address issues facing the cryptocurrency sector while supporting innovation and regulatory clarity.
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