US House Passes Bill to Combat Illicit Use of Cryptocurrency

The US House of Representatives has recently passed a significant cryptocurrency bill aimed at curbing its use in illegal finance. Introduced by Representative Zach Nunn (R-Iowa) on Monday, July 22, this legislation seeks to establish a governmental working group to assess the use of cryptocurrency in terrorism and money laundering activities.

This bipartisan initiative aims to boost public-private collaboration in addressing illicit finance within the digital asset space. As cryptocurrencies become more widespread, Rep. Nunn emphasized the need to provide Americans with secure access while protecting them from security risks and illegal financial activities.

“This bipartisan bill will help ensure the United States is prepared to address security risks and prevent illicit money laundering while also protecting consumer choice for all Americans,” said Rep. Nunn. He also stressed the importance of collective efforts to “ensure the long-term integrity of digital assets.”

Building on Previous Sector-Friendly Initiatives

The bill reflects broader initiatives like the Financial Innovation and Technology for the 21st Century Act (FIT21), previously seen in the House. However, the Senate has yet to show similar enthusiasm for crypto-related legislation. In his speech on the House floor, Nunn described the legislation as “crucial in strengthening America’s national security” and vital for “protecting [the nation’s] digital assets and ensuring the next generation of financial and internet technology is built right here in America.”

Under the proposed bill, a working group operating under the Treasury Department would be formed. This group would include experts from various sectors, such as blockchain intelligence, research institutions, and fintech companies. Their primary goal would be to investigate crypto transactions and develop strategies to prevent exploitation by malicious actors.

By addressing these challenges, the bill aims to enhance the security and integrity of the digital asset space, ensuring that the United States remains at the forefront of financial innovation.