US House Rep. Approves Fresh Crypto Bill to Fight Illicit Finance, Forms Working Group

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Sujha Sundararajan

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Sujha Sundararajan

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July 23, 2024 01:12 EDT

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The US House of Representatives has passed a fresh crypto legislation, this time, to combat its use for illicit finance. The bipartisan financial services bill would create a government working group to access crypto in terrorism and money laundering.

Passed on Monday, the legislation, sponsored by Rep. Zach Nunn (R-Iowa), also encourages public-private partnership in exploring issues surrounding illicit finance in the digital asset ecosystem.

As cryptos are “quickly emerging” as a major payment, Rep. Nunn wants to ensure Americans have “protected” access to it.

“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,” he said in a statement.  “We must do both simultaneously to ensure the long-term integrity of digital assets.”

The temporary working group will be under the Treasury Department. It would include industry experts such as representatives from blockchain intelligence companies, research institutions and fintech firms, the release noted.

Further, the group would research on crypto transactions and how to keep bad actors from using it for terrorism.

Crypto Bill Unlikely to Pass the Senate

However, despite the House’s approval, the bill is unlikely to advance to the Senate. Though, the legislation is a part of a broader effort by Congress to address cryptocurrency regulation.

Besides, speaking during a House floor, Rep. Nunn stressed that the legislation is important to make sure that “the next generation of financial and internet technology is built right here in America.”

Per TD Cowen analyst Jaret Seiberg, the bill is a way to register crypto critics’ demands for money laundering crackdowns. He wrote in a client note that the bill gives crypto advocates a “political cover” from attacks, CoinDesk reported.

The bill arrives at a time when industry representatives are reaching out to Kamala Harris, encouraging her to embrace cryptos. On Monday, the Digital Chamber urged Vice President Harris to support the digital asset industry, after President Joe Biden backed-off from the 2024 Presidential race.