US House FSC to discuss illegal activity in crypto at upcoming hearing
The Financial Services Committee (FSC) of the United States House of Representatives has set a date for November 15 to take a deep dive into illegal activities in the cryptocurrency ecosystem.
“Cryptocrime in Context: Dissecting Illegal Activity in Digital Assets”, the hearing features prominent crypto entrepreneurs as participants.
According to the committee's agenda, Bill Hughes, senior counsel and director of global regulatory affairs at Consensus, and Jonathan Levine, co-founder and chief strategy officer of Chinalysis, will participate in the hearing. Former federal officer and human trafficking finance specialist Jane Khodarkowski will join the two as witnesses. The Committee's note on the hearing explains the purpose of the FSC:
“To ensure that the digital asset ecosystem is not exploited by bad actors, it is important that Congress understand the extent of illegal activity, what tools are available to combat this activity, and explore gaps in preventing and detecting illegal activity.”
Discussions around illegal activities such as money laundering and terrorist financing will take center stage at the hearing. The FSC cites a Chainalysis report from January 2023, which states that illegal cryptocurrency volumes have reached an all-time high, with the number of fines and hacks increasing.
The hearing will examine the depth of anti-money laundering and anti-terrorist financing measures implemented by crypto exchanges and decentralized finance providers.
The hearing will also address the role of regulatory agencies, including the Financial Crimes Enforcement Network, the Office of Foreign Assets Control, and the Department of Justice (DOJ).
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In July, FSC Chairman Representative Patrick McHenry announced the landmark legislation to bring regulatory transparency to the issuance of statistical funds used for payment.
#NEWS: Chairman @PatrickMcHenry announced legislative reforms to provide transparency to the digital asset ecosystem and address national security concerns.
Read more https://t.co/kb2smj24Io
— Financial Services GOP (@FinancialCmte) July 22, 2023
Meanwhile, the DOJ has decided to double the head count of the crypto crime group. In the process, the DOJ merged the two teams — the Computer Crime and Intellectual Property Division and the National Cryptocurrency Enforcement Team — into a new “high-paying” unit designated to combat ransomware crimes.
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