Members of both parties voiced worry about bad actors abusing cryptocurrencies at a Senate Banking Committee meeting on illegal funding and terrorism.
The topic of the meeting, titled “An Update from the Treasury Department: Countering Illicit Finance, Terrorism and Sanctions Evasion,” was to address the growing use of digital currencies in criminal affairs.
The committee head, Sherrod Brown (D-Ohio), brought attention to the fact that terrorist organizations and nations are using cryptocurrencies to evade strict banking laws. Brown emphasized the need for crypto platforms to adhere to the same standards as banks in order to prevent the laundering of illicit funds.
Lawmakers are hell-bent on sealing any gaps that would enable the cryptocurrency business to take advantage of its claims, backed by Chainalysis that it has nothing to do with illegal financing.
Deputy US Treasury Secretary Wally Adeyemo has pushed for additional legislation and sanctions to stop terrorists and nations like Russia and North Korea from using cryptocurrency.
In his evidence, Adeyemo highlighted Russia’s strategic use of stablecoins to support its activities. Digital currencies have to comply to Know Your Customer and Anti-Money Laundering requirements, according to senators Robert Menendez (D-N.J.) and Thom Tillis (R-N.C.), who spoke about the need for revised legislation and more enforcement. Tillis pushed for rules that would protect digital assets while still ensuring they were in line with the law.
The session brought attention to the fact that cryptocurrency rules and regulations are constantly changing, which means that the crypto business will have to make some major adjustments in the near future so that it can comply with anti-illicit financing standards.
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