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US Senators Push for Tougher Action on Crypto in Terrorism Financing

2 mins
Updated by Ciaran Lyons
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In Brief

  • Senators introduce Terrorism Financing Prevention Act targeting foreign entities aiding designated terrorist organizations,
  • Legislation addresses urgent need following October 7 Hamas attacks on Israel; emphasizes countering cryptocurrency in terrorism financing.
  • Bipartisan effort strengthens national security, imposes sanctions on financial institutions aiding terrorists, giving choice to maintain U.S. access.
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U.S. Senators Mitt Romney, Mark R. Warner, Mike Rounds, and Jack Reed have introduced the Terrorism Financing Prevention Act.

The bipartisan legislation aims to strengthen sanctions against foreign entities facilitating financial transactions with designated Foreign Terrorist Organizations (FTOs), including Hamas.

Crypto Terrorism Financing Bill Will Expand Coverage

Previously, such sanctions were limited, primarily targeting Hezbollah after the passage of the Hizballah International Financing Prevention Act in 2015.

However, the new legislation expands these sanctions to cover all U.S.-designated FTOs, addressing the urgent need highlighted by the October 7 attacks on Israel carried out by Hamas.

Meanwhile, Senator Romney emphasized the necessity of countering cryptocurrency’s role in terrorism financing. He stated that the proposed legislation equips the Treasury Department with additional resources to tackle emerging threats related to digital assets.

The Terrorism Financing Prevention Act is designed to ensure that the Treasury Department has the tools required to enforce sanctions against terrorist groups like Hamas, according to Senator Warner.

Read more: What does a Vampire Attack in Crypto Mean?

US Senators Aim To ‘Save Lives’ Through The Crypto Terrorism Financing Legislation

Senator Rounds underscored the importance of disrupting terrorist finance networks. He expressed confidence that the bill’s sanctions on foreign financial institutions and digital asset companies aiding terrorists would save lives.

The bipartisan nature of the legislation demonstrates a collective effort to strengthen national security.

Furthermore, Senator Reed emphasized the critical need to protect the integrity of the U.S. financial system. In particular, he notes emerging threats posed by terrorist organizations.

The statement further outlines presenting foreign financial institutions and crypto firms with a choice between doing business with terrorists or maintaining access to the U.S. financial system.

The Senators believe firms will not want to damage their reputation within the financial system.

Read more: Top 4 Crypto Passive Income Ideas That Really Work In 2023

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Ciaran Lyons
Ciaran is a cryptocurrency journalist based in Sydney, Australia. He particularly enjoys writing about CBDC developments and the practical implementations of cryptocurrency in real-world scenarios. He has also appeared across major television networks in Australia including Channel Ten, Channel Nine and SBS TV. Prior to his foray into cryptocurrency, Ciaran worked as a presenter on national radio station Triple J.
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