U.S. Senators Catherine Cortez Masto and Charles Grassley have proposed a new bill to give the Secret Service more power to tackle crimes involving cryptocurrency. The “Combatting Money Laundering in Cyber Crime Act of 2024,” introduced on August 2, aims to strengthen the Secret Service’s ability to investigate illegal cryptocurrency transactions and frauds targeting U.S. financial institutions.
Senator Cortez Masto emphasized that criminals using digital assets for illegal activities threaten national security and safety. She believes the bill will help the Secret Service handle new types of financial crime linked to digital currencies.
Senator Grassley highlighted the need for better threat assessments to catch shady operations involved in money laundering. He argued that enhancing federal law enforcement’s focus on financial crimes will improve efforts to prevent these crimes.
In 2023, criminal groups laundered $22.2 billion in cryptocurrencies, according to Chainalysis. Although this is a significant amount, it’s about 30% less than the $31.5 billion laundered in 2022. Despite this, cash remains the primary method for money laundering in the U.S.
The U.S. Treasury and other federal agencies, including the Department of Justice and the SEC, have also been working to curb cryptocurrency-related crimes. The Secret Service, known for protecting high-profile figures like the President, also investigates financial crimes. However, its effectiveness was questioned after it failed to prevent an assassination attempt on a political candidate earlier this year.
In related news, the U.S. House of Representatives passed the Financial Technology Protection Act on July 23 to prevent illegal cryptocurrency activities while protecting consumer choices.