The United States House of Representatives Approves Financial Technology Protection Act
The United States House of Representatives has unanimously passed the Financial Technology Protection Act in an effort to combat illicit activities and terrorism financing conducted through digital means. The bill, introduced by Representative Zach Nunn on April 27, 2023, was approved on July 22, 2024.
Establishment of Government Working Group
The main goal of the bill is to create a government working group consisting of key federal agencies and experts from the private sector. This group will be dedicated to fighting terrorism and illicit financing carried out on digital platforms. Operating under the Treasury Department, the group will include professionals from US law enforcement and the private sector, with a specific focus on five leaders from the crypto industry, financial technology, and blockchain intelligence companies.
Representative Nunn stressed the importance of the bill in safeguarding Americans while also ensuring access to digital assets. He stated, “This bipartisan legislation is crucial in preparing the United States to address security threats and prevent illegal money laundering.”
The Importance of Cryptocurrency Regulation in the US
Regulating cryptocurrency is essential to ensure the security and stability of digital assets, while also safeguarding consumer choice for all Americans. It is crucial that we strike a balance between innovation and protection to maintain the long-term integrity of these assets.
Increasing Support for Crypto Regulation
It is interesting to note that Senators Kirsten Gillibrand and Ted Budd have introduced a bill similar to the one in the House of Representatives, although it has not garnered as much attention in the Senate. This reflects the growing support among US lawmakers for cryptocurrency regulations, as evidenced by the recent approval of the FIT21 Act.
Efforts have also been made to challenge the SEC’s SAB 121 advisory, but President Joe Biden vetoed the resolution to overturn it. Despite this setback, the bipartisan support for cryptocurrency in Congress is becoming more evident, especially with the 2024 elections on the horizon.
Market observers believe that these developments underscore the importance of establishing clear regulations for cryptocurrency in the US, and highlight the need for ongoing discussions and collaboration between lawmakers and industry stakeholders.
