Senators Introduce New Crypto Legislation to Combat Illicit Finance in Crypto
United States Senators Cynthia Lummis (R-WY) and Bill Hagerty (R-TN) introduced a new bill to combat illicit finance across the crypto sector on Wednesday.
Known as the Preventing Illicit Finance Through Partnership Act of 2024, the bill aims to coordinate efforts between federal agencies with private companies in the hopes of fighting illicit financial activity.
“Federal law enforcement agencies already have the tools to combat illicit finance—they just need to communicate with the private sector to deploy them most effectively,” said Senator Hagerty. “By fostering collaboration and information sharing, this bill will ensure that all parties at the table are working together to detect and disrupt bad actors.”
If approved, the Preventing Illicit Finance Through Partnership Act of 2024 would establish a pilot program chaired by the attorney general consisting of 20 money services organizations. The program would then allow federal agencies to share detected possible instances of illicit finance with the private sector entity in question and vice versa.
According to a recent press release from Senator Hagerty’s office, the bill would then provide “ private companies a channel to alert federal agencies to any suspicious money transfers and sanctions evasion.”
“There are bad actors in every industry and crypto assets are no exception but make no mistake – crypto itself is not the problem,” said Senator Lummis. “The Preventing Illicit Finance Through Partnership Act will allow federal regulators to work with the private sector to gain insight into the often-misunderstood world of crypto to weed out bad actors without crushing an entire emerging industry.”
The Preventing Illicit Finance Through Partnership Act of 2024
