Cracking Down on Crypto Crime: US Treasury Outlines Stringent Measures

Crypto News- In a recent hearing on countering illicit finance and terrorism, Deputy Treasury Secretary Adewale Adeyemo reiterated the need for increased enforcement powers to combat the use of cryptocurrencies by international bad actors. Adeyemo outlined three key reforms proposed by the Treasury Department to bolster U.S. efforts in this regard.

Cracking Down on Crypto Crime: US Treasury Outlines Stringent Measures

One of the primary proposals involves implementing secondary sanctions targeting foreign digital asset providers involved in illicit finance. Adeyemo emphasized the necessity of extending authorities extraterritorially to address national security concerns arising from the misuse of the financial system by such entities.

Treasury Urges Swift Action to Rein in Crypto Risks Amid Growing Threats

Additionally, the Treasury seeks to enhance existing authorities to better regulate the digital asset ecosystem and mitigate jurisdictional risks posed by offshore cryptocurrency platforms. Adeyemo highlighted the urgency of these reforms in light of the evolving threat landscape, citing instances of terrorist groups and rogue states exploiting cryptocurrencies for illicit purposes.

Treasury Aligns with Legislative Moves, Urges Congress for More Crypto Regulation

The Treasury’s call for stronger enforcement measures aligns with ongoing legislative efforts, including the Digital Asset Anti-Money Laundering Act of 2022 introduced by Senator Elizabeth Warren. However, Adeyemo stressed the imperative for congressional action to equip authorities with the necessary tools to combat the growing use of virtual assets by nefarious actors.

Chairman Sherrod Brown voiced support for the Treasury’s enforcement objectives, underscoring the importance of addressing emerging threats to national security. Meanwhile, Ranking Member Tim Scott emphasized the need to address foreign policy challenges that jeopardize U.S. interests.

As discussions continue, the push for tighter crypto regulations underscores the complex interplay between financial innovation and regulatory oversight in an increasingly digital world.