The US House of Representatives supported a bill to ban the use of crypto assets for illegal purposes
Date: 2024-07-24 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
The House of Representatives of the US Congress approved a bill under the number HR 2969, which was called “On the Protection of Financial Technologies.” Passed in 2023, this bill aims to develop and implement measures to prevent the use of crypto assets for illicit purposes, such as terrorist financing and other shady transactions.
Objectives and content of the bill
HR 2969 was introduced in April 2023. It was initiated by Jim Hines and Zach Nunn. Zach Nunn described the purpose of the bill this way:
“This bipartisan bill will ensure the United States is prepared to address security issues and combat money laundering while preserving Americans' right to choose. We must balance these challenges to ensure the long-term integrity of digital assets."
The bill provides for the following key measures:
- Creation of a working group: As part of the bill, a working group will be created to study the use of cryptoassets in shadow transactions. This group will include five representatives from the private sector and representatives from law enforcement agencies.
- Transaction Analysis: Provides detailed analysis of cryptocurrency transactions related to illegal activities and terrorist financing.
- Development of measures: The bill includes the development and implementation of measures aimed at preventing the use of crypto-assets for illegal purposes.
After approval in the House of Representatives, the bill will be sent to the Senate for consideration.
TD Cowen analyst Jaret Seiberg expressed mixed views on the bill in an interview with CoinDesk, calling it a “political stunt.” According to him, the authors of the bill are trying to please both supporters and opponents of the cryptocurrency industry, which makes the initiative more politically motivated than aimed at actually solving problems.
Comparison with previous initiatives
Previously, the House of Representatives had already approved another significant bill - “On Financial Innovation and Technology for the 21st Century” (FIT21 or HR 4763). This bill focuses on supporting the cryptocurrency industry and creating clear rules to regulate it. Unlike HR 2969, FIT21 aims to develop and simplify regulation of cryptocurrencies, while the new bill focuses on preventing abuse and financing of illegal activities.
Thus, both bills reflect different approaches to regulating cryptocurrencies, each of which has its own goals and objectives within the US financial and technological sphere.
