CRYPTOSTAKE
StakingMarketRegulationCryptostake ExplainsUncharted
US Treasury Seeks Greater Authority to Combat Crypto-Related Crimes

US Treasury calls for more authority against crypto crimes

The US Treasury is sounding the alarm on the urgent need for expanded legislative powers to effectively counteract cryptocurrency-related crimes. In a compelling appeal to House lawmakers, Treasury official Brian Nelson highlighted the limitations facing the agency in holding firms accountable, including industry giants like Binance. 

Despite possessing certain authorities, Nelson asserts that the landscape of digital finance necessitates a broader toolkit to pursue and penalize bad actors within the crypto space. This call to action comes at a critical juncture, as the House Financial Services Committee prepares for a hearing set for February 15, aiming to address the pressing issues of terrorism and cryptocurrency crimes head-on.

Congressional hearing highlights crypto's role in illicit finance

As Washington's gaze intensifies on the misuse of cryptocurrencies, the Treasury's Under Secretary for Terrorism and Financial Intelligence, Brian Nelson, is poised to address Congress with a significant request. Nelson’s testimony, prepared for the congressional hearing on terrorism and cryptocurrency crimes, underscores a growing concern among lawmakers, including Senator Elizabeth Warren. 

Warren has been at the forefront, championing the Digital Asset Anti-Money Laundering Act (DAAMLA) to curtail the illicit use of crypto assets for money laundering and financing terrorism. 

Nelson expressed, showcasing a proactive stance on safeguarding the integrity of the U.S. financial system against emerging threats:

“Looking forward to discussing Treasury’s busy month of action to protect the U.S. financial system from illicit finance,” 

Treasury's ongoing efforts and request for more tools

In his concerted effort to strengthen the U.S.'s defense against crypto crime, Nelson elaborates on the Treasury's decade-long initiative to develop a framework aimed at combating terrorism financing. This framework strives to balance mitigating illicit finance risks with fostering responsible innovation. However, Nelson emphasizes the need for additional legislative support, stating:

“...... to root out illicit finance by players in virtual asset markets and forums, we need additional tools and resources. That is why we are eager to work with Congress to adopt common-sense reforms that update our tools and authorities to match the evolving challenges we face today.” 

The push for expanded powers includes proposals for new sanctions tools targeting wrongdoers in the cryptocurrency space and increased supervision of stablecoins.