- House Financial Services Committee will hold a hearing on November 15th examining illicit crypto activities like money laundering, terrorism financing, and hacking.
- Hearing will assess spike in illegal crypto transactions found in Chainalysis report and effectiveness of AML protocols among crypto exchanges.
- Regulatory bodies like FinCEN, OFAC, and DOJ will be examined on their oversight roles of the crypto industry.
The House Financial Services Committee (FSC) is preparing to examine unlawful activities in the cryptocurrency sector during an upcoming hearing on November 15th. The hearing comes as the crypto industry faces growing regulatory scrutiny.
Details of the Hearing
The hearing is titled “Crypto crime in context: breaking down the illicit activity in digital assets.” It aims to explore topics like money laundering, terrorism financing, and hacking within crypto.
Key topics will include findings from a January 2023 Chainalysis report showing a spike in illegal crypto transactions. The hearing will also assess the effectiveness of anti-money laundering (AML) protocols among crypto exchanges and DeFi platforms.
Regulatory Bodies Under Review
The committee will examine the roles of regulatory agencies like the Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Assets Control (OFAC), and the Department of Justice (DOJ) in overseeing the crypto industry.
Recent Regulatory Developments
In July, the FSC introduced legislation to provide regulatory clarity around stablecoin issuance. Meanwhile, the DOJ merged teams to form a new unit focused on crypto-related crimes like ransomware.
The government’s increasing focus on illicit crypto activity demonstrates the urgency of understanding and mitigating unlawful behavior in the digital asset space through regulatory efforts.
As the crypto sector continues to grow, regulatory bodies are prioritizing oversight of illegal activities. The upcoming House hearing marks an important step toward curbing money laundering, hacking, and other crypto crimes through policy reform.