The House Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion met on the afternoon of Wednesday, November 15 to discuss illicit activities regarding cryptocurrencies.
bad actors
โWe know that bad actors take advantage of vulnerabilities wherever they can find them,โ said House Financial Services Chairman Patrick McHenry (NC-10). โHowever, there is bipartisan agreement that we must hold these bad actors accountable in every way possible and specifically when it comes to digital assets and the digital asset ecosystem.โ
The subcommittee meeting comes just over a month after a October 7 attack by militant group HamasHe saw 1,200 Israelis die.
According to BitOK, a Tel Aviv-based financial audit firm, Hamas received approximately $41 million in crypto wallets between August 2021 and June 2023.
Understanding the technology
"Members in this room must better understand the extent of illicit activity, learn how we can use Blockchain technology to combat illicit activity, examine the analytical tools that are currently available to combat this activity, and explore gaps that can prevent and detect illicit activity". said Congressman French Hill (AR-02), Chairman of the Subcommittee on Digital Assets, Financial Technology, and Inclusion.
The subcommittee hearing follows one held yesterday by The Senate Committee on Banking, Houses and Urban Affairs, address the need for regulatory oversight in the financial sector. It comes amid broader debates over legislation and regulation within the crypto industry.
Witnesses included Senior Counsel and Director of Global Regulatory Affairs at ConsenSys and former Department of Justice Deputy Attorney General Bill Hughes, former trial attorney and anti-human trafficking finance specialist with the Money Laundering Section and US Department of Justice Asset Recovery and partner. at Arktouros, Jane Khodarkovsky, and Chainalysis co-founder and chief strategy officer Jonathan Levin, among others.
Discovering the footprint of Hamas
Members of the House Financial Services Committee proceeded to send a letter to President Biden and US Treasury Secretary Janet Yellen amid its โbipartisan fact-finding missionโ to uncover the true extent of the funding terrorist organizations like Hamas receive through illicit cryptocurrencies.
"We call on the White House and Treasury to use the open blockchain ledger to assess the footprint of Hamas' digital asset fundraising campaign," said House Majority Leader Tom Emmer. (MN-06). "By doing this, Congress can better understand the tools and capabilities available in the United States to target bad actors in blockchain and support the legitimate use of digital assets and innovation.โ
โIt is essential that we hold bad actors in the digital asset ecosystem accountable so that legitimate actors can thrive,โ added Chairman McHenry.
