The House Financial Services Committee (FSC) is set to delve into the illicit activities within the cryptocurrency sector with an in-depth examination. Scheduled for Nov. 15, the hearing, titled “Crypto crime in context: breaking down the illicit activity in digital assets,” will be highlighted at Benzinga’s Future of Digital Assets conference on Nov. 14.
The FSC’s intention, as stated in their memorandum, is to “ensure that the digital asset ecosystem is not exploited by bad actors” by understanding the extent of illicit activities and the effectiveness of current measures to combat them.
Bill Hughes, a senior counsel and director at Consensys, Jonathan Levin, the co-founder of Chainalysis, and Jane Khodarkovsky, a former federal officer and expert in human trafficking finance, will be testifying. Central to the discussions will be topics like money laundering and terrorism financing, with a particular focus on the findings of a January 2023 Chainalysis report. This report highlighted a significant increase in illegal cryptocurrency transactions, coinciding with a rise in sanctions and cyber hacking incidents.
The FSC will also be examining the effectiveness of Anti-Money Laundering and Counter-Terrorist Financing protocols currently in place among cryptocurrency exchanges and decentralized finance providers, as well as the roles of various regulatory bodies, including the Financial Crimes Enforcement Network, the Office of Foreign Assets Control, and the Department of Justice (DOJ).
In July, the FSC’s chairman, Rep. Patrick McHenry (R-NC), announced the introduction of new legislation aimed at providing regulatory clarity for the issuance of stablecoins for payment purposes. Moreover, the DOJ is intensifying its efforts against cryptocurrency-related crimes by merging its Computer Crime and Intellectual Property Section with the National Cryptocurrency Enforcement Team to form a new, more robust unit. This move includes doubling the team’s size, demonstrating the government’s commitment to curbing illegal activities in the digital asset space.
The hearing and Benzinga’s Future of Digital Assets conference on Nov. 14 will provide key insights into the future and regulation of digital assets. It also highlights the importance of such platforms for understanding and shaping the landscape of cryptocurrency and blockchain technology. Join millions of people staying on top of global financial markets with Investing.com and get your ticket now to meet and engage with transformative Digital Asset and Crypto business leaders and investors at Benzinga’s exclusive event – Future of Digital Assets.