A coalition of over 100 bipartisan lawmakers is urging the Biden administration to tackle the increasing adoption of digital currencies for supporting terrorist activities. This push follows newly released findings which uncovered... Palestinian militant group Hamas tens of millions in crypto were contributed in the past years.
This concerned group of legislators is led by Senators Warren from Massachusetts and Marshall from Kansas. They have addressed a letter to top officials raising the alarm about how cryptocurrencies are facilitating quick funds transfer for terrorist activities. The Wall Street Journal reported that Hamas accumulated roughly $41 million in crypto over the last two years, and Palestinian Islamic Jihad acquired up to $93 million.
Keypoints
- Senators Elizabeth Warren and Roger Marshall are leading a charge of over 100 lawmakers to get clear answers from President Biden’s team concerning how cryptocurrencies have been used to fund recent attacks from Hamas against Israel.
- Discoveries from a recent report indicate Hamas was funded with about $41 million in cryptocurrencies over the past two years, while Palestinian Islamic Jihad received up to $93 million.
- Lawmakers are seeking clarity from the Treasury Department and White House about their plans to combat the use of cryptocurrencies to finance terrorist groups.
Legislators are calling on the Treasury Department and the White House to outline their strategies for reducing the usage of cryptocurrencies by foreign terrorist factions. Many militant organizations are currently seeking crypto contributions as a way to circumvent sanctions and sidestep traditional financial systems
Senators Warren and Marshall are pushing for legislation to confront and restrict illegal uses. Still, the proposed bill faces hurdles due to claims that existing laws already address aspects of terroristic financing. Meanwhile, on Wednesday, the administration revealed new sanctions specifically targeting crypto exchange services assisting Hamas. regulate cryptocurrencies This coalition of lawmakers stressed the urgency of taking decisive measures to block the cryptocurrency path for terrorism. They argue that both Congress and the administration must proactively tackle the risks posed by cryptocurrencies before they become the reason for further tragedies. They have also asked for details on possible measures to curb money laundering and terrorism financing, as Congress examines legislative paths.
Industry experts have cautioned that too stringent regulations might pose significant challenges to the young digital asset sector. However, the escalating reports of crypto contributions aiding militant groups in the Middle East have pushed lawmakers to put higher importance on national security.
The calls for clarity underscore Washington's significant worries about cryptocurrencies and their potential threats. Politicians from varied ideologies are coming together in demanding definitive actions from the Biden administration to cut off illicit flows of crypto to harmful entities.
The way the administration decides to respond could shape how cryptocurrencies are regulated in the upcoming months.
The Editor-in-Chief at Blockonomi also the founder of Kooc Media, a digital media establishment based in the UK, champions open-source software, blockchain technology, and an accessible and equitable internet for everyone.
