US House Subcommittee Examines Blockchain Uses and Misuses in Bipartisan Hearing
Summary:
A bipartisan hearing by the US House Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion took place on November 15 to discuss the implications of blockchain technology. Key points of discussion included regulating the misuse of digital assets, the need for effective legislation, and the complexities of blockchain examination. The panel, consisting of forensics experts, law professionals, and representatives from leading firms like ConsenSys and Chainalysis, also examined Hamas's use of cryptocurrency for fundraising. A bipartisan letter addressing the importance of understanding the role of digital assets in terrorist funding was also sent to President Biden and Treasury Secretary Janet Yellen on the same day.
On November 15, the Blockchain insights and practical application were explored at a bipartisan hearing of the US House Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion, which carried the title "Crypto Crime in Context: Dissecting Unlawful Behaviour in Digital Assets". The meeting was initiated with the chairman French Hill referring to a Wall Street Journal's piece dated October 10, discussing Hamas using cryptocurrency for collecting funds. This report was later updated on October 27 with more accurate crucial information from the blockchain analysis company, Elliptic, as Hill further remarked. He argued that just like we don't hold phones and the Internet accountable for financing terrorism, cryptocurrencies shouldn't be either.
Expressing a similar sentiment, the ranking member of the Subcommittee, Stephen Lynch, hoped for unbiased perspectives in the discussion. The forum's attendees mainly consisted of representatives from ConsenSys and Chainalysis, forensics professionals, and a high-ranking lawyer from Hogan Lovells law firm. They deliberated over public-private and international collaborations to tackle the abuse of digital assets, the necessity for thoughtfully composed laws, and the complexities of scrutinizing blockchain.
When Representative Brad Sherman sought an explanation of a legal use of a crypto mixer from Dynamic Securities Analytics President Alison Jimenez, she failed to provide an answer. On the same day, a letter seeking information on the funding activities of Hamas and the Palestinian Islamic Jihad and the involvement of cryptocurrency therein, was addressed to President Joe Biden and Treasury Secretary Janet Yellen. This bipartisan document was signed by 53 House Members including Hill, Rep. Tom Emmer, Financial Services Committee chair Patrick McHenry, and Rep. Ritchie Torres. They emphasized the need to comprehend the dimensions and duration of Hamas's fundraising campaign via digital assets and the accurate specifics about blocked or seized digital assets related to terrorist organizations.
The Blockchain Association conveyed its viewpoint to Hill and other Financial Services Committee via an open letter on November 15. This document carried the signatures of 40 former US military members, intelligence officers, national security professionals, etc, who are currently affiliated with digital assets companies or venture capital. Expressing their concern, they noted the exaggerated and disproven content of the same WSJ article being used to support legislation that could potentially harm US national security interests. They concluded their letter by proposing that cultivating a regulated, compliant digital asset industry within the US could be the most effective way to isolate rogue entities.
Published At
11/15/2023 9:00:00 PM
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