Senate Considers New Crypto Regulations to Combat Illicit Finance

Bipartisan support emerges for a regulatory framework to ensure the growth of digital assets while preventing their misuse for criminal activities.

Bipartisan senators, including Sen. Thom Tillis (R-N.C.), advocate for a 'light' regulatory framework for the crypto industry to prevent illicit financing and support growth.
Deputy Treasury Secretary Wally Adeyemo seeks increased powers for the Treasury to combat crypto-related crimes, including terrorism financing and sanctions evasion.
A discussion draft of the ENFORCE Act, aimed at ensuring cryptocurrency companies adhere to anti-money laundering standards, was released by Sens. Tillis and Hagerty.
U.S. Treasury proposals include introducing a secondary sanctions tool, extending authority over virtual asset service providers, and addressing jurisdictional risks from offshore platforms.
The Treasury's efforts aim to counter the increasing use of cryptocurrencies for illicit finance by terrorist groups and state actors like Iran, Russia, and North Korea.