US Senators Propose Bill to Give Secret Service More Power to Pursue Crypto Crime

• US State Senators have proposed the Combating Money Laundering in Cyber Crime Act of 2024' (Cyber Crime Act 2024) to tackle crypto crime.
• The bill aims to crack down on these criminal activities by giving the Secret Service more resources, such as funding for technological advancements, and authority, allowing them to cooperate with the FBI.
• However, when considering increasing oversight, it's important to strike a balance between regulations and protecting the data of genuine financial institutions.

US State Senators Catherine Cortez Masto (Nevada), Charles Grassley (Lowa), and Amy Klobuchar (Minnesota) introduced a Bill on August 2 tostrengthen the Secret Service's authority in combating crypto crime.

The bill, Cyber Crime Act 2024, proposes to give the Secret Service more freedom to investigate crypto-related crimes concerning transactions and prevent transnational cyber offenses.

Let's explore the issues surrounding crypto crime and how the US senators plan to battle the issue.

US Senators' Need for Tackling Crypto Crime

Considering crypto-threats amounted to over $24.2B in 2023, and $1.38B+ was stolen in Q1 of 2024, it's no wonder the US Senators want to tackle crypto crime.

The concern is that cryptocurrencies are increasingly being used for various crypto-related financial crimes.

While the Secret Service is tasked with investigating US financial infrastructure crimes, cybercrimes often fall outside its mandate because they're committed by unlicensed businesses:

• Money laundering
• Ransomware attacks
• Drug trafficking
• Theft
• Financing for terrorism
• Fraud schemes

The Cyber Crime Act 2024 revises the US law to empower the Secret Service to investigate cyber crimes executed by non-traditional and non-licensed institutions.

Seedy financial enterprises are often behind crimes in our communities. If we want to get serious about cracking down on money laundering schemes, it's going to take strong threat assessment capabilities.Senator Chuck GrassleyHow the Proposed US Law Strengthens the Secret Service's Remit

Here's how the Bill aims to expand the Secret Service's mandate:

• More investigative freedom: The Secret Service will be able to investigate crypto-related crimes involving financial companies and structured transactions.
• Demand extensive reporting: Financial businesses must record their digital asset transactions for ten years (instead of five) for stronger data analysis.
• International cooperation: Working alongside companies worldwide, including the FBI and IRS, to help counteract global cyber threats before they become problematic.
• Increase crypto knowledge: Mandating the Government Accountability Office to study law enforcement surrounding digital assets, like crypto.
• Enhanced funding and resources: Funding for specialized technology and training to enhance crypto analysis and cyber forensics capabilities to stay on top of technological advancements and online crime.

These regulations will significantly impact the crypto sector by enhancing regulatory oversight, improving innovation and security, and emphasizing the importance of balancing security and privacy.

My new bill with @ChuckGrassley gives the Secret Service the tools to investigate criminal organizations using digital assets to evade the law.

The Secret Service plays a critical role in combatting financial crime, and our bill will ensure they can continue to keep us safe.

- Senator Cortez Masto (@SenCortezMasto) August 4, 2024

Our Verdict - Crypto Industry's Increased Scrutiny

The US State Senators' legislation boosts the government's capabilities to crack down on crypto-related crimes.

However, considering the bill includes increased regulatory oversight by law enforcement agencies like the Secret Service and the FBI, it's important to find a balance between boosting regulations and not stepping on genuine financial entities' toes.

References

Click to expand and view sources

• Combating Money Laundering in Cyber Crime Act of 2024 Bill (Cortez Masto)
• Cortez Masto, Grassley Introduce Bipartisan Bill to Strengthen Secret Service's Ability to Combat Cyber Money Laundering (Catherine Cortez Masto)
• Cortez Masto, Cassidy, Sinema, Moran Introduce Bill to Combat Financial Crime (Catherine Cortez Masto)
• FinCEN's Legal Authorities (Fincen)
• 2024 Crypto Crime Trends: Illicit Activity Down as Scamming and Stolen Funds Fall, But Ransomware and Darknet Markets See Growth (Chainalysis)
• Stolen crypto doubled to $1.38 billion in the first half of 2024, research firm says (CNBC)
• US Government Accountability Office Website (GAO)

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