Cracking Down on Cybercrime: US Lawmakers Introduce Bill to Empower Secret Service in Digital Asset Investigations
US senators believe that the President’s bodyguards could do more than just wield high-powered pistols and don sleek dark glasses. The lawmakers have presented a measure that would give the Secret Service the power to look into and prosecute crimes using digital assets in a bipartisan effort.
Aimed at curbing the growing menace of illicit money and crypto use by criminals, the Combating Money Laundering in Cybercrime Act of 2024 has been proposed.
Specifics Of The Proposed Law
Sens. Amy Klobuchar (D-Minn.), Chuck Grassley (R-Iowa), and Catherine Cortez Masto (D-Nev.) introduced the bill, which would grant the Secret Service greater investigative powers to look into crimes involving digital assets, such as financial institution fraud, structured transitions, and unlicensed money transmitting enterprises.
- The proposed law would allow the Secret Service to investigate digital asset crimes such as fraud committed by financial institutions, structured transitions, and businesses transmitting money without a license.
Sen. Masto highlighted the country’s security threat posed by funding illegal operations through digital assets. The bill mandates the crafting of a Government Accountability Report within a year to evaluate law enforcement’s effectiveness in combatting money laundering.
Enhancing The Capabilities Of The Secret Service
Cryptocurrencies have opened up new avenues leading to the proposal of this measure. Sen. Grassley emphasized the necessity for enhanced threat assessments to combat “seedy financial companies” facilitating money laundering and illicit activities.
Since 2004, the Secret Service’s Cyber Investigative Section has been dedicated to combating cybercrime. To bolster cooperation and efficiency in investigating financially motivated cybercrimes, the agency announced the establishment of Cyber Fraud Task Forces in 2020, merging its Electronic Crimes and Financial Crimes Task Forces.
- Nine lawmakers previously introduced a similar measure in January, highlighting bipartisan support for addressing risks tied to the rapidly expanding digital currency market.
- Sen. Masto is leading efforts to combat cryptocurrency and money laundering with her new legislation, building on a bill filed in September of the previous year.
Chainalysis estimates that illegal addresses laundered over $22 billion in cryptocurrency in 2023, signaling a 30% decrease from $31.5 billion in 2022. While cash remains a major tool for money laundering in the US, government agencies like the US Treasury, Department of Justice, SEC, and CFTC have intensified efforts against crypto criminals.
Hot Take: Secret Service Empowerment in the Digital Age
The Secret Service is set to receive enhanced investigative powers to tackle digital asset-related crimes, a move that reflects a bipartisan effort to combat illicit financial activities more effectively. Senators Klobuchar, Grassley, and Masto are leading the charge to empower law enforcement agencies and protect the nation’s security interests in the ever-evolving digital landscape.
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