More Power Needed to Counter Crypto Use by Terrorist Groups

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By BitcoinWiki News

Key Takeaways:

  • U.S. Treasury Secretary Janet Yellen calls on Congress to pass #Crypto regulations
  • Senator Sherrod Brown questions Yellen about the necessary updates to confront the issue of terrorist groups using crypto
  • Democrats raise concerns about crypto use by terrorist groups
  • Yellen acknowledges the need for additional authority within the Treasury Department to address the issue
  • Senator Brown engages in discussions regarding a bill targeting the use of digital assets for money laundering
  • Senators introduce the Terrorism Financing Prevention Act to expand the Treasury Department’s authority
  • Yellen expresses support for the aims of the bill
  • Discussion highlights growing concern about the illicit use of crypto by terrorist groups
  • Treasury Department aims to strengthen its authority to address risks associated with digital assets

1. Introduction
U.S. Treasury Secretary Janet Yellen has called for increased authority within the Treasury Department to address the alleged utilization of cryptocurrencies by terrorist groups. This issue was raised during a Senate Banking Committee hearing, where concerns were raised about the potential misuse of digital assets by malicious actors.

2. Concerns about Crypto Use by Terrorist Groups
During the Senate Banking Committee hearing, Senator Sherrod Brown highlighted the use of cryptocurrencies by terrorist groups such as Hamas, Al-Qaeda, and Hezbollah to raise and transfer funds. He questioned Yellen about the necessary updates required to confront this issue. Yellen acknowledged the need for additional authority within the Treasury Department to address the risks created by digital assets and expressed support for stricter measures to prevent the use of cryptocurrencies for funding terrorism.

3. Proposed Legislation
In response to the concerns raised, Senators Mark Warner, Mike Rounds, Jack Reed, and Mitt Romney introduced the Terrorism Financing Prevention Act. This proposed legislation aims to expand the Treasury Department’s authority to identify and sanction foreign financial institutions and digital asset companies that knowingly facilitate transactions for terrorist groups. Yellen expressed support for the aims of the bill, acknowledging the limitations that Treasury faces and the need for enhanced authorities to deal with the significant threat posed by the illicit use of cryptocurrencies.

4. Treasury Department’s Response
Under Yellen’s leadership, the Treasury Department aims to strengthen its authority to effectively address the risks associated with digital assets and their potential exploitation by bad actors. The department has identified gaps in its authorities and compiled a list of suggestions for ways in which Treasury’s authorities could and should be strengthened to counter the evolving threat of the illicit use of crypto by terrorist groups.

5. Conclusion
The discussion highlighted the growing concern surrounding the illicit use of cryptocurrencies by terrorist groups and the need for enhanced regulatory measures to counter this evolving threat. Yellen’s call for increased authority within the Treasury Department and the proposed legislation reflect a commitment to addressing the risks associated with digital assets and preventing their exploitation by malicious actors.

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