The United States House of Representatives recently passed the Financial Technology Protection Act with unanimous support. The bill, introduced by Representative Zach Nunn on April 27, 2023, was approved on July 22, 2024. The main objective of this legislation is to combat illicit activities and terrorism financing facilitated through digital platforms.
One of the key components of the Financial Technology Protection Act is the creation of a governmental working group consisting of representatives from key federal agencies and private sector experts. This group will be tasked with focusing solely on addressing terrorism and illicit financing in the digital realm. Working under the Treasury Department, the group will comprise experts from US law enforcement agencies as well as top leaders from financial technology and blockchain intelligence companies.
Representative Zach Nunn emphasized the significance of the bill in protecting Americans while ensuring access to digital assets. He highlighted the importance of addressing security risks and preventing money laundering, all while safeguarding consumer choice. Nunn stressed the need to balance these aspects to maintain the long-term integrity of digital assets.
Interestingly, Senators Kirsten Gillibrand and Ted Budd introduced a similar bill in the Senate, albeit without garnering as much attention. This move underscores the increasing trend among US lawmakers towards regulating cryptocurrencies. The recent approval of the Financial Innovation and Technology for the 21st Century Act and the unsuccessful attempt to overturn the SEC’s Special Accounting Bulletin 121 advisory through a resolution also exemplify this shift in regulatory focus.
The passage of the Financial Technology Protection Act in the House of Representatives signals the growing bipartisan support for crypto regulations as the 2024 elections approach. Market observers have noted the increasing attention and backing that cryptocurrencies are receiving in Congress. The momentum behind these regulatory efforts demonstrates a collective interest in ensuring the security and legitimacy of digital assets in the evolving financial landscape.
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