Crypto Anti-terrorism Bill Introduced in the U.S. House of Representatives

News / 15.01.2021

Representative Ted Budd (R-NC) has enacted a new law to create an agency to combat the use of cryptocurrencies in terrorism. The bill, H.R. 296, is co-sponsored by Representatives Warren Davidson (R-OH), Stephen Lynch (D-MA), Byron Donalds (R-FL), and Darren Soto (D-FL) and was introduced into jurisdictions following the establishment of the working group.

The bill also seeks to provide rewards for information leading to convictions related to digital currency earthquakes. It will establish Fintech’s leadership in innovation and financial information to encourage the development of tools and programs to combat digital currencies and others’ illicit use.

Efforts to Regulate Cryptocurrencies

Following the introduction, the bill was referred to the Financial Services Commission and the budget committee for preliminary deliberations. Rep.Budd is a well-known supporter of cryptography and blockchain at the Congress. 

The Financial Crimes Enforcement Network (FinCEN) does not consider cryptocurrencies to be tendered. Still, since 2013 they have considered exchanges as money transmitters (subject to their jurisdiction) because the tokens are another value that replaces the currency. On the other hand, the IRS considers cryptocurrencies to be biennial and has issued fiscal guidelines for change regulations in the United States are also in the uncertain legal territory. Several of the federal regulators claim jurisdiction. 

Of the significant U.S. regulatory agencies, the Securities and Exchange Commission (SEC) has indicated that it considers cryptocurrencies to be values. In March 2018, he stated that he sought to implement the Securities Act comprehensively for digital portfolios and exchanges.

On the contrary, the Commodity Futures Trade Commission (CFTC) has adopted a more friendly method, describing bitcoin as a product and allowing cryptocurrency derivatives to market publicly.

Combating Terrorism Financing

The fight against money laundering and terrorist financing continues to be a critical anti-crypto talking point for several government agencies. However, forensic data from cryptocurrencies point to the limited adoption of virtual currencies by terrorist organizations. Back in May 2020, blockchain intelligence outfit Chainalysis debunked claims that ISIS had about 300 million dollars in bitcoin.

The U.S. Department of Justice seized crypto-funds allegedly owned by ISIS and al-Qaeda terrorist networks. In June 2020, reports also surfaced that ISIS-affiliated media platforms were collecting donations in Monero, a popular privacy coin.

Chainalysis recently released a report stating that some participants in the recent unrest in the U.S. Capitol acquired large bitcoin donations from a French computer programmer just one month before the incident occurred. The crypto forensics company points out that the donor, now deceased, had a history of supporting causes that stood for far-right political and social ideologies.

Law enforcement agencies report investigating the possible links between the donations and the planning of the unrest.

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Kyle is a tech lover and a huge fan of Satoshi. He has a passion for cryptocurrency and the splendid technology behind it all - the blockchain. He could sound gullible, but he believes bitcoin will hit 100k before the next halving.