Tom Emmer Seeks Clarification on Crypto Financing Terrorism Claims
During a House Financial Services Committee hearing, United States Congressman Tom Emmer raised questions about allegations of cryptocurrencies being used to finance terrorism. Emmer specifically addressed the Wall Street Journal’s report on Hamas and its attempt to raise funds through digital assets. The journal claimed that Hamas received $41 million in digital assets between August 2021 and June 2023, with an additional $93 million going to the Palestinian Islamic Jihad.
Blockchain Analytics Firms Dispute WSJ’s Claims
However, leading blockchain analytics firms have rejected these claims, stating that the amount of money going to these organizations is insignificant. Emmer asked Brian Nelson, the US Department of Treasury Undersecretary for Terrorism and Financial Intelligence (TFI), to confirm if the department’s assessment aligns with the Wall Street Journal’s coverage.
Nelson responded by stating that the Treasury’s data is similar to that of the analytics firms. He clarified that while the Wall Street Journal focused on individual wallets, it did not provide aggregated numbers among wallet users. Nelson emphasized that cryptocurrency assets are not the primary means of financing terrorism globally and that terrorists predominantly rely on traditional methods and services.
Accurate Data Needed for Development
Emmer further questioned Nelson about whether Hamas’ crypto usage was smaller than what was reported by the media. The undersecretary confirmed this, stating that their assessment aligns with Emmer’s claim. Emmer urged the Treasury Department to publish their records to address false information in the sector, as he believes it is hindering innovation in the United States.
Disagreements Over Cryptocurrency Risks
In December, US Senator Elizabeth Warren expressed her concerns about cryptocurrency, highlighting its use in criminal activities such as money laundering, terrorist financing, and drug trafficking. However, Emmer, other US representatives, independent firms, and the Department of Treasury disagree with Warren’s stance. They argue that digital assets are not a significant threat to the economy and that accurate data is crucial for informed discussions on the subject.
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