Homeland Security Assessment of Terrorists' Use of Virtual Currencies Act

Floor Speech

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Mr. Speaker, I thank my friend and colleague, Congresswoman Rice from New York, for introducing this bill.

Over the past 12 months, there has been growing concern by administration officials, as well as security and financial experts, about potential threats associated with cryptocurrencies.

In July 2018, a Department of Justice task force reported noted criminals are using virtual currencies to collect, hide, and launder funds, as well as purchase illegal goods and services. Both the Treasury Department and the Internal Revenue Service have ongoing efforts to review registered digital currency providers and identify illicit use.

The legislation we are considering today, sponsored by the gentlewoman from New York (Miss Rice), adds to this effort by directing the Department of Homeland Security to develop and disseminate a threat assessment of threat posed by individuals using virtual currencies to carry out activities in furtherance of terrorism, including the provision of material support or resources to a foreign terrorist organization.

The bill also requires DHS to share the threat assessment with State and local law enforcement.

As the threat of terrorism evolves, so do the methods to finance and support the actors who plot to attack the United States. The Federal Government must evolve as well to meet these novel and technologically based challenges.

This bill positions the Department to detect the new, digital-based methods in terrorist financing and support that have already occurred and to prepare for those that are sure and soon to follow.

The potential of terrorist organizations to use virtual currencies to carry out an attack, or a smuggling network to launder illicit proceeds through cryptocurrency markets, should be a major concern to the Department of Homeland Security. Requiring the Department to conduct a threat assessment is appropriate and timely.

Mr. Speaker, I thank Congresswoman Rice for bringing this bill forward, and I urge a ``yes'' vote.

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