The United States House of Representatives has unanimously passed the Financial Technology Protection Act, which aims to curb the use of digital technology for illegal activities and the financing of terrorism.
Representative Zach Nunn introduced the bill on April 27, 2023, and it was approved on July 22, 2024.
The bill
The bill aims to establish a government working group composed of key federal agencies and private sector experts. This group will focus exclusively on combating terrorism and illegal financing on digital platforms.
The proposed group will operate under the Treasury Department and will include experts from U.S. law enforcement agencies and the private sector. It will feature five crypto industry leaders from financial technology or blockchain intelligence companies.
Rep. Nunn emphasized the bill’s importance in protecting Americans and ensuring access to digital assets. He said:
“This bipartisan bill will ensure that the United States is prepared to address security risks and prevent illegal money laundering, while also protecting consumer choice for all Americans. We must do both at the same time to ensure the long-term integrity of digital assets.”
Interestingly, Senators Kirsten Gillibrand (NY) and Ted Budd (NC) have introduced a similar bill in the Senate. However, it has not received the same attention from the Senate.
US lawmakers are increasingly pro-crypto
The bill’s passage reflects growing support among US lawmakers for crypto regulation, marked by the recent passage of the Financial Innovation and Technology for the 21st Century Act (FIT21).
Additionally, lawmakers attempted to overturn the SEC’s Special Accounting Bulletin (SAB) 121 advisory opinion with a resolution. However, President Joe Biden vetoed this resolution, and attempts to override the veto were unsuccessful.
Market observers note that these actions highlight the bipartisan support that crypto has garnered in Congress, especially as the 2024 elections approach.
