Summary
The United States Treasury is urging Congress to provide it with the necessary tools to combat illicit finance associated with cryptocurrencies, including terrorist financing and sanctions evasion. The Treasury Deputy Secretary pointed to examples of terrorist groups and state actors using cryptocurrencies, and proposed three key reforms to tackle the issue. While some lawmakers have raised concerns about crypto’s role in terrorism financing, data suggests that it makes up a very small portion of such activities. Congressional action may be necessary to address potential gaps exploited by criminals and terrorists.
Key Points
1. The United States Treasury is seeking Congressional support to combat illicit finance related to cryptocurrencies, including terrorist financing and sanctions evasion.
2. Adeyemo highlighted examples of terrorist groups and state actors using cryptocurrencies for illicit activities, emphasizing the need for new enforcement measures.
3. Proposed reforms include implementing a secondary sanctions tool for foreign digital asset providers, extending Treasury authorities to cover virtual asset service providers, and granting extraterritorial authority to address national security threats linked to digital assets.