US Treasury Seeks Expanded Authority to Regulate Cryptocurrencies

US Treasury Secretary Janet Yellen believes the department’s current powers are insufficient to effectively combat the use of cryptocurrencies by terrorist groups, according to The Block.

Yellen concurred with Senator Sherrod Brown, who described the existing US tools for combating illicit financing as outdated.

“We do have a lot of authority that allows us to act, but we have identified several gaps and have compiled a list of proposals to strengthen [the Treasury’s role in this matter],” stated the Treasury Secretary.

She also supported the introduction of additional legislative measures to limit the ability of terrorist groups to finance themselves through cryptocurrencies.

Back in late 2023, several senators backed a bill proposing the introduction of KYC procedures for “wallets, miners, validators, and other network participants.” According to the authors of the document, it aims to prevent the illegal use of crypto assets for drug trafficking, sanctions evasion, and terrorism financing.