Lawmakers Call for Action on Crypto-Financed Terrorism
A bipartisan group of lawmakers, including Senators Elizabeth Warren and Roger Marshall and Representative Sean Casten, have written a letter urging the Biden administration to address the alleged connection between cryptocurrency and terrorism. The legislators are concerned about reports that Hamas has evaded US sanctions and raised millions of dollars through crypto assets. They are calling on the administration to clarify its strategy for combating this national security threat.
Concerns Over Hamas and Crypto Funding
The letter, addressed to National Security Advisor Jake Sullivan and Brian Nelson, Under Secretary for Terrorism and Financial Intelligence at the Department of the Treasury, highlights the concerns surrounding Hamas and Palestinian use of crypto funding. According to the letter, these organizations have raised over $130 million in digital assets between August 2021 and June of the following year.
Urgency in Addressing the Issue
The lawmakers emphasize the urgency of the situation due to the potential danger posed by financing militant organizations. They are calling on the Biden administration to provide details about its plan to prevent the use of cryptocurrency for terrorism financing. The lawmakers reference an article from the Wall Street Journal, which suggests that crypto is one of several tools used by Hamas to raise funds.
Previous Warnings and Seizures
The lawmakers note that both the Israeli and US governments have previously warned about the threat posed by cryptocurrency in fighting terrorism. Israel has even seized crypto assets from terrorist organizations like Hamas and Hezbollah. However, experts believe that only a small portion of the digital asset funds flowing through Hamas have been captured.
Call for Decisive Action
In light of these concerns, the lawmakers are calling for decisive action to address illicit crypto activity in order to prevent further tragedies. They urge the Biden administration to act swiftly and comprehensively to curtail such activities and protect national security and the security of US allies. The lawmakers have set a deadline of October 31, 2023, for the Treasury and the Biden administration to respond to their questions about plans to address these national security threats.
The Complexity of Crypto Regulation
The alleged connection between crypto and terrorism adds another layer of complexity to the ongoing debate surrounding the regulation of digital assets.
Hot Take: Addressing Crypto-Financed Terrorism is Crucial for National Security
The bipartisan letter from legislators highlights the urgent need for the Biden administration to tackle the alleged close relationship between cryptocurrency and terrorism financing. With concerns over Hamas evading sanctions and raising millions through crypto assets, it is crucial for the administration to clarify its strategy in combating this national security threat. The call for decisive action and a deadline for response from the Treasury demonstrates the lawmakers’ commitment to preventing further tragedies and safeguarding national security. As debates on crypto regulation continue, addressing crypto-financed terrorism becomes an essential aspect of ensuring a secure future.
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