Two United States Senators have introduced a groundbreaking bill aimed at expanding the Secret Service’s authority in combating cryptocurrency-related crime. The “Combatting Money Laundering in Cyber Crime Act of 2024” bill was introduced by Nevada’s Catherine Cortez Masto and Iowa’s Charles Grassley on August 2. This proposed legislation seeks to grant the Secret Service enhanced capabilities to investigate cryptocurrency transactions carried out by unlicensed money transmitting businesses and scrutinize potential frauds targeting US financial institutions.
Senator Cortez Masto emphasized the critical importance of this bill, stating, “The funding of criminal activity through digital assets poses a direct threat to the security and safety of our nation. This bipartisan and bicameral bill will empower the U.S. Secret Service to better investigate new forms of financial crime involving digital assets.” Senator Grassley echoed this sentiment, underscoring the need for stronger threat assessments to apprehend “seedy financial enterprises” that facilitate money laundering schemes. “Putting financial activity on federal law enforcement’s radar like this bill does will improve our capacity to anticipate and prevent crimes.”
According to blockchain forensics firm Chainalysis, illicit addresses laundered $22.2 billion worth of cryptocurrencies in 2023. While this figure is significant, it represents a near 30% decline from the $31.5 billion recorded in 2022. Despite this decrease, the US Treasury reported in February that cash, rather than cryptocurrency, remains the primary method for money laundering among criminals in the US. Nonetheless, the US Treasury, Department of Justice, Securities and Exchange Commission, and Commodity Futures Trading Commission have all taken measures to curb cryptocurrency crime in recent years.
The Secret Service, traditionally tasked with protecting the US president, vice president, and other key political figures, as well as investigating crimes against the financial infrastructure of the US, will see its role expanded under this new legislation. The agency’s competence came under scrutiny in July when it failed to thwart an assassination attempt on Republican candidate Donald Trump. With the proposed bill, the Secret Service is poised to play a more significant role in safeguarding the financial integrity of the nation.
In parallel legislative developments, the US House passed the Financial Technology Protection Act on July 23, which aims to prevent illicit cryptocurrency activities while safeguarding consumer choice. This new wave of legislative action reflects a growing recognition of the importance of robust regulatory frameworks to address the evolving landscape of financial crime.
The Secret Service has previously ventured into the realm of digital assets, even creating an NFT collection. However, these NFTs are not for sale and serve more as a demonstration of the agency’s engagement with emerging technologies. The proposed bill represents a significant step forward in equipping the Secret Service with the tools necessary to tackle the sophisticated financial crimes of the digital age.
As the world of finance continues to evolve, so too must the mechanisms for ensuring its security. The “Combatting Money Laundering in Cyber Crime Act of 2024” is a testament to the ongoing efforts to adapt to new challenges presented by digital assets. By enhancing the investigative powers of the Secret Service, this bill aims to create a more secure and resilient financial system, capable of withstanding the threats posed by modern financial crimes.
In conclusion, the introduction of this bill marks a pivotal moment in the fight against cryptocurrency-related crime. It underscores the necessity of evolving legal frameworks to keep pace with technological advancements and the increasingly sophisticated methods employed by financial criminals. With bipartisan and bicameral support, the “Combatting Money Laundering in Cyber Crime Act of 2024” stands as a promising development in the ongoing effort to safeguard the integrity of the nation’s financial system.
