The U.S. House of Representatives recently approved a bill that proposes the establishment of a federal working group dedicated to investigating the use of cryptocurrency in illegal activities such as terrorism and money laundering. Sponsored by Rep. Zach Nunn, the legislation aims to form a temporary working group under the Treasury Department to examine the use of digital assets in criminal activities and to suggest measures to address this issue. Interestingly, the bill also includes the participation of industry figures, including members from “blockchain intelligence companies”.
Despite the bipartisan support for crypto-friendly legislation in the House, such as the Financial Innovation and Technology for the 21st Century Act (FIT21), the Senate has not reciprocated this support. Analysts have noted that the bill approved by the U.S. House of Representatives is perceived as more of a political maneuver rather than a genuine attempt at effective regulation, allowing both critics and advocates of cryptocurrencies to voice their concerns and defend their positions.
An intriguing development during the passage of the bill is the move by industry representatives to engage Vice President Kamala Harris in advocating for a positive stance on cryptocurrency. A letter from the Digital Chamber addressed to Vice President Harris urged for a progressive approach towards digital assets and blockchain technology in the Democratic party’s official platform.
The cryptocurrency industry has emerged as a significant political subject, particularly in the run-up to the 2024 presidential contest. The industry is closely observing the potential regulatory measures to be included in the National Defense Authorization Act, an annual bill that determines the nation’s defense priorities.
In light of these developments, the future of comprehensive regulatory measures for the crypto industry remains uncertain. The bill proposing the establishment of a federal working group to assess the use of cryptocurrency in illicit activities is expected to face challenges in the Senate. However, with the increasing prominence of digital assets in the political arena, the industry continues to advocate for a more crypto-friendly approach from policymakers.