Senators Catherine Cortez Masto of Nevada and Charles Grassley of Iowa have introduced a new bill to increase the Secret Service ‘s powers to combat cryptocurrency-related crimes.
The bill, dubbed the “Combatting Money Laundering in Cyber Crime Act of 2024,” aims to give the Secret Service expanded powers to investigate cryptocurrency transactions by unlicensed money transmitters and potential fraud targeting US financial institutions.
“Financing criminal activity with digital assets poses a direct threat to our nation’s security,” – Senator Cortez Masto said.
Legislation gains bipartisan support
The proposed legislation has gained bipartisan support. Senator Grassley argued that the bill is necessary to conduct more rigorous threat assessments to eliminate illegal financial operations that enable money laundering schemes.
“Putting financial activity on the radar of federal law enforcement agencies, as this bill does, will improve our ability to anticipate and prevent crimes.”
Recent data from blockchain analytics firm Chainalysis revealed that illegal addresses have managed to launder an alarming $22.2 billion in cryptocurrencies in 2023. While this figure is significant, it marks a noticeable drop of nearly 30% from the previous year‘s total of $31.5 billion.
Despite the findings, the U.S. Treasury Department stressed that traditional cash transactions, not cryptocurrencies, remain the main route for money laundering among criminals in the United States.
The Secret Service, known for its role in protecting prominent political figures and investigating financial crimes, faced increased scrutiny after a recent security lapse that enabled an assassination attempt on Donald Trump.
At the same time, the U.S. House of Representatives recently approved the Financial Technology Protection Act, aimed at curbing illegal cryptocurrency practices while preserving consumer rights.
7 US states challenge SEC regulation of cryptocurrencies
A coalition of seven US states has united to challenge Securities and Exchange Commission (SEC) regulations on cryptocurrencies, it has been reported.
The states, led by Iowa Attorney General Brenna Bird, filed an amicus curiae brief arguing that the SEC’s attempt to regulate cryptocurrencies constitutes a “power grab” that would stifle innovation, harm the cryptocurrency industry and exceed the agency’s authority.
The coalition includes Arkansas, Indiana, Kansas, Montana, Nebraska, with Oklahoma being the latest state to join. Earlier this year, SEC Commissioner Hester Peirce said the regulatory agency is now in “enforcement-only mode” when it comes to regulating cryptocurrencies.
Peirce, known for her friendly stance among the SEC’s five commissioners, acknowledged that the burden is on industry participants, who are constantly worried about avoiding litigation. “If we had clearer rules, we could focus on building,” she – she said.
Last week, the SEC closed a three-year investigation into Hiro Systems. The agency’s termination of the investigation came just a day after it closed a separate case involving stablecoin issuer Paxos, another case in which the regulator decided not to take enforcement action against cryptocurrency entities.
