US Secret Service Might Fight Crypto Crime
Two U.S. Senators have proposed a bill to enhance the Secret Service's ability to combat cryptocurrency-related crime
August 5, 2024 09:16 AM
Reading time: 1 minute, 33 seconds
TL;DR The bill aims to address the growing concern of digital asset-based criminal activities and respond to the significant amounts of cryptocurrency that have been laundered in recent years.
Introduction of the Bill
Two United States Senators have introduced a bill to expand the Secret Service's powers to combat cryptocurrency-related crime.
Nevada's Catherine Cortez Masto and Iowa's Charles Grassley introduced the "Combatting Money Laundering in Cyber Crime Act of 2024" on Aug. 2.
Expanded Authority
The bill would expand the Secret Service's authority to investigate cryptocurrency transactions made by unlicensed money-transmitting businesses and potential frauds committed against U.S. financial institutions.
Cortez Masto emphasized the bill's importance: "The funding of criminal activity through digital assets poses a direct threat to the security and safety of our nation."
Grassley added that more robust threat assessments are needed to catch "seedy financial enterprises" facilitating money laundering schemes.
The Need for the Bill
According to blockchain forensics firm Chainalysis, illicit addresses laundered $22.2 billion of cryptocurrencies in 2023.
While this represents a nearly 30% fall from $31.5 billion in 2022, the threat remains significant.
"Putting financial activity on federal law enforcement's radar like this bill does will improve our capacity to anticipate and prevent crimes," said Grassley.
However, a February report from the U.S. Treasury highlighted that cash remains the primary method for money laundering in the U.S.
Government Agencies' Role
The U.S. Treasury, Department of Justice, Securities and Exchange Commission, and Commodity Futures Trading Commission have also been actively combating cryptocurrency crime in recent years.
The Secret Service, primarily tasked with protecting high-profile political figures and investigating financial crimes, has recently had its competence questioned.
In July, it failed to prevent an assassination attempt on Republican candidate Donald Trump.
Related Legislative Efforts
Meanwhile, the U.S. House passed the Financial Technology Protection Act on July 23. This act aims to prevent illicit cryptocurrency activities while safeguarding consumer choice.
It indicates a growing recognition among lawmakers of the need for a robust legal framework to address the challenges posed by digital assets.
