As part of a larger plan to tighten regulatory actions against terror groups, lawmakers in the US introduced bipartisan legislation on Thursday to combat the use of cryptocurrencies for funding terrorist organizations.
Legislation known as the Terrorism Financing Prevention Act was sponsored by U.S. Senators Mitt Romney, Mark Warner, Mike Rounds, and Jack Reed. It was motivated by the October 7 attacks on Israel by Hamas.
The attacks on Israel on October 7, carried out by Hamas, have increased the urgency and necessity for the United States to combat the role that cryptocurrencies play in terrorism financing, as explained by Senator Romney.
Romney claimed, “Our legislation would expand financial sanctions to cover all terrorist organizations—including Hamas—and it would equip the Treasury Department with additional resources to counter terrorism and address emerging threats involving digital assets.”
In addition, the bill would impose additional penalties on foreign entities that assist in financial transactions with terrorist organizations. Furthermore, the bill will add Hamas to the list of terror organizations that the United States has sanctioned.
“The Terrorism Financing Prevention Act takes commonsense steps toward rooting out terrorism by sanctioning foreign financial institutions and foreign digital asset companies that assist them in committing these heinous acts,” Senator Rounds said in response to the development.
Also Read: US Treasury’s FinCEN Warns Banks Over Hamas Crypto Funding
