Senators Catherine Cortez Masto (D-Nevada), Chuck Grassley (R-Iowa) and Amy Klobuchar (D-Minnesota) have introduced bipartisan legislation seeking to strengthen the US Secret Service’s authority in investigating crypto-related criminal activities.
According to a joint press release, the Combating Money Laundering in Cyber Crime Act aims to update the existing laws with a view of authorizing the Secret Service to “investigate new forms of criminal activity involving digital assets.“
Senator Cortez Masto says the use of crypto assets to fund criminal activity “poses a direct threat to the security and safety” of the US.
While the Secret Service is known for protecting America’s national leaders, the agency is also tasked with safeguarding the country’s financial and payment systems from criminal exploitation.
The press release says it’s necessary to update current laws.
“The Secret Service investigates a variety of cybercrimes that could pose a threat to our national security – however, these cybercrimes can be perpetrated through unlicensed money transmitting businesses outside of the Secret Service’s jurisdiction.
The Combating Money Laundering in Cyber Crime Act makes much-needed updates to US law to ensure the Secret Service has full authority to investigate these new types of cybercrimes committed by unlicensed and nontraditional financial institutions.”
Meanwhile, Representatives Scott Fitzgerald (R-Wisconsin), Zach Nunn (R-Iowa), Gregory Meeks (D-New York) and Madeleine Dean (D-Philadelphia) have proposed a similar bill in the House.
Last year, Senator Cortez Masto joined other lawmakers in co-sponsoring Senator Elizabeth Warren’s (D-Massachusetts) Digital Asset Anti-Money Laundering Act of 2023, which aims to make the crypto industry comply with the same money laundering rules that apply to the traditional financial system.
The bill, currently stuck at the introduction stage, was heavily criticized by crypto stakeholders over fears that it would effectively ban digital assets by hindering activities such as staking and mining.