US Treasury Department looks to squash crypto under guise of anti-terrorist controls

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The US Treasury Department’s efforts against terrorism now extend to cryptocurrencies, aiming to cut off these digital assets from terrorist groups. This means stricter regulations on crypto exchanges, making it harder for them to function legally and denying citizens access to certain cryptos.

Treasury asks for more tools to control crypto

On Tuesday, Deputy U.S. Treasury Department Secretary Adewale Adeyemo submitted written evidence to the Senate Banking, Housing & Urban Affairs Committee Hearing. In this testimony, he detailed how certain terrorist organizations exploit cryptocurrencies to bypass sanctions and fund their military activities.

Although the Deputy Secretary acknowledged in the concluding part of his sworn statement that “terrorists typically favor conventional financial instruments,” he nonetheless urged Congress to grant the Treasury Department additional powers to regulate virtual assets more rigorously.

Crypto plays a small role

It’s generally accepted that stopping terrorist groups from acquiring funds to buy deadly weapons and endanger the lives of citizens around the world is a necessary measure. However, beyond what’s reported in mainstream media, it’s important to note that cryptocurrencies play a minimal role in financing such activities.

In essence, crypto’s inherent transparency sets it apart from traditional fiat currency. As a result, skilled terrorists would likely shun cryptocurrencies with traceable transactions on blockchains due to the increased risk of detection by advanced US intelligence agencies.

Protection of privacy is far more important

Certainly, some mixing platforms remain in operation, aiming to confuse tracking efforts by concealing the original source of cryptocurrencies like Bitcoin. However, law enforcement agencies may disagree, advocating for a ban on such privacy protections.

From a libertarian perspective, it is their right as law-abiding citizens to safeguard their privacy during online transactions. This isn’t their fault, as trust in fiat currencies wanes and governments seek greater control over their usage.

Inaccurate reporting leads to misinformation

To add to the argument, the Wall Street Journal ran a story, that has since been corrected, that last year’s Hamas attack on Israel was funded by crypto. Key players in Congress such as Senator Elizabeth Warren picked up on the report and used it to try and advocate for stricter crypto regulations.

Yet, it has been uncovered by Elliptic, a blockchain analysis firm, that the initial report contained misunderstood data. Consequently, there were errors in the information presented.

Tom Emmer, as the House Majority Whip, took to his Twitter account to provide clarity on a recent issue.

Senators are drafting laws influenced by the misleading information published in the Wall Street Journal regarding Hamas’s digital asset fundraising. However, since the Treasury Department possesses accurate data, it holds a responsibility to set the record straight about the true extent of Hamas’s digital asset fundraising activities.

Biden Administration’s anti-crypto stance

The Biden Administration has taken a strong stance against cryptocurrencies, opposing an emerging industry with immense potential for US prosperity. Instead of backing this innovative sector, they prefer to safeguard the traditional banking industry, which likely feels endangered by the agile and swift payment system offered by virtual assets. This power struggle persists.

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2024-04-10 10:08