Crypto Shouldn’t Be Blamed for Terror Funding: US Lawmakers Urge Biden to Review Traditional Currency Misuse
House Committees Deliberate on Crypto and Illegal Activities
On November 15, the US House Financial Services Subcommittee and the Digital Assets and FinTech Subcommittee held a hearing titled “Cryptocurrency Crimes: An Analysis of Illegal Activities in the Digital Asset Space”. The focus was on the usage of cryptocurrencies by Palestinian militant organization Hamas for fundraising purposes. The session highlighted the need for international cooperation, well-crafted legislation, and the intricacies of blockchain investigations.
Digital Assets Subcommittee Chair Emphasizes Wrongful Blaming of Cryptocurrency
Chairman French Hill of the Digital Assets Subcommittee opened the session by referring to a Wall Street Journal article about Hamas’s crypto fundraising. A subsequent correction in the article, he noted, painted a more accurate picture of the situation. Hill and other committee members, including Stephen Lynch and Patrick McHenry, emphasized that the problem lies with bad actors, not the technology itself.
Bipartisan Members Urge Biden and Yellen for Accurate Information
In conjunction with the hearing, Chairman French Hill, Congressman Tom Emmer, Financial Services Committee Chairman Patrick McHenry, and Congressman Ritchie Torres, along with 53 bipartisan members, sent a letter to President Biden and Treasury Secretary Janet Yellen. They requested detailed information on the fundraising activities of Hamas and other terrorist organizations, particularly focusing on the role of cryptocurrencies.
Traditional Fundraising Outweighs Crypto in Terrorism Finance
The letter stressed the importance of understanding the scope of Hamas’s digital asset fundraising activities in the context of traditional fundraising methods. It highlighted that traditional methods of fundraising “may far exceed” the revenues generated through cryptocurrencies. The lawmakers sought assistance in understanding the scale, scope, and duration of Hamas’s digital asset fundraising activities, as well as accurate information about seized or confiscated digital assets from terrorist organizations.
Conclusion:
The recent congressional hearing and the letter to the White House demonstrate a significant shift in understanding the role of cryptocurrencies in illegal activities. Lawmakers are advocating for a balanced view, recognizing that while digital assets may be used for nefarious purposes, traditional currency misuse in terrorism financing is a far more significant issue. This approach seeks to foster a healthy digital asset ecosystem while holding malicious actors accountable.
Keywords: Cryptocurrency, Terrorism Financing, US Congress, Digital Assets, Hamas, Rostin Behnam, CFTC, Patrick McHenry, French Hill, Tom Emmer, Joe Biden, Janet Yellen, Crypto Regulation, Illegal Activities, Blockchain, Financial Services Committee
