U.S. Senator Ted Budd (R-N.C.), along with Senators Kirsten Gillibrand (D-N.Y.) and Cynthia Lummis (R-Wyo.), has reintroduced the Financial Technology Protection Act. The bipartisan legislation is designed to address the illegal use of digital assets, such as cryptocurrencies, by criminals and terrorist organizations for activities including sanctions evasion, money laundering, and terrorist financing.
“While financial technologies are driving innovation and expanding individual freedom, criminals and terrorists are exploiting digital assets – putting both our financial and national security at risk. We must take these threats seriously and work toward solutions that put a stop to this rampant criminal activity. I introduced the bipartisan Financial Technology Protection Act to do just that, because we cannot continue to ignore this illicit abuse or hinder this pro-growth technology. I urge my colleagues to support this legislation before these crimes and threats escalate further,” said Senator Budd.
The bill proposes the creation of an independent working group comprised of representatives from federal agencies such as the Department of the Treasury, Office of Terrorism and Financial Intelligence, Internal Revenue Service, Department of Justice, Federal Bureau of Investigation, Department of Homeland Security, U.S. Secret Service, Office of the Director of National Intelligence, and Drug Enforcement Administration. Private sector members would include financial technology companies, blockchain intelligence firms, financial institutions, research organizations, as well as privacy and civil liberties groups.
“As financial technology continues to evolve, we must ensure it strengthens, not threatens, our national security. The bipartisan Financial Technology Protection Act would establish an independent working group that brings together government agencies, regulators, and industry experts to proactively identify emerging risks and develop robust, innovative solutions. This collaborative discourse will ensure we can keep our financial systems safe while bolstering the United States’ leadership on digital asset innovation on the global stage. This bipartisan legislation has already passed the House four times, including a unanimous vote in House Financial Services earlier this month. I look forward to working with Senator Budd to advance it in the Senate,” said Senator Gillibrand.
Senator Lummis added: “Digital assets are the future of American financial innovation and it is critical that as we craft pro-growth legislation that we also maintain security standards. The Financial Technology Protection Act strikes the right balance of developing safeguards against illicit activities without stifling the innovation that makes our digital economy thrive. I am proud to join Senator Budd in securing America’s position as a leader in the digital asset space while protecting consumers and maintaining the integrity of our financial system.”
The proposed legislation was also included in a broader market structure bill led by Senator Lummis in her role as Chair of the Senate Subcommittee on Digital Assets. This package aims to provide regulatory clarity for cryptocurrency businesses operating in the United States.
