The US House passed a new crypto bill to combat illicit finance, creating a government working group and promoting public-private partnerships.
A new crypto legislation has been enacted by the US House of Representatives, this time to combat its use for illicit finance. The bipartisan financial services would establish a government working group measure to facilitate the use of crypto in the context of money laundering and terrorism.
The legislation, passed on Monday and sponsored by Rep. Zach Nunn (R-Iowa), also promotes public-private partnerships in investigating issues related to illicit financing in the digital asset ecosystem.
Rep. Nunn is committed to guaranteeing that Americans have “protected” access to cryptos, which are “quickly emerging” as a significant payment method.
“This bill, which is bipartisan in nature, will protect consumer choice for all Americans and ensure that the United States is prepared to address security risks and prevent illicit money laundering,” he stated. “To guarantee the long-term integrity of digital assets, we must implement both measures simultaneously.”
The Treasury Department will oversee the temporary working committee. The release indicated that it would comprise industry professionals, including representatives from blockchain intelligence companies, research institutions, and fintech firms.
Additionally, the group would conduct research on crypto transactions and the prevention of terrorists from utilizing them for malicious purposes.
Nevertheless, it is improbable that the measure will be advanced to the Senate, despite the House’s approval. Nevertheless, the legislation is a component of a more extensive initiative by Congress to regulate cryptocurrency.
Additionally, Rep. Nunn underscored the significance of the legislation during a House floor speech, emphasizing that it is essential to ensure that “the next generation of financial and internet technology is built right here in America.”
According to Jaret Seiberg, an analyst at TD Cowen, the bill is a means of registering crypto critics’ demands for money laundering crackdowns. CoinDesk reported that he stated in a client note that the measure provides crypto advocates with a “political cover” from attacks.
The bill is introduced at a time when industry representatives are urging Kamala Harris to adopt cryptocurrency. The Digital Chamber implored Vice President Harris to support the digital asset industry on Monday, following President Joe Biden’s withdrawal from the 2024 Presidential race.
