U.S. Treasury Wants Superpowers to Battle Crypto Crime

U.S. Treasury Calls for Expanded Authority to Pursue Cryptocurrency Offshore

US Treasury Seeking More Power to Track Cryptocurrency Overseas

The U.S. Department of the Treasury is on a mission to become the superhero of the crypto world. Armed with a proposal that would give them unprecedented enforcement and sanctions authority, they aim to fight financial crime in the digital asset space. But hold on tight, folks, because this proposal goes beyond American borders and dives headfirst into the international crypto playground.

Deputy Secretary of the Treasury, Wally Adeyemo, has delivered a proposal so epic that it can only be described as a set of superheroic powers to battle illicit actors in the crypto realm. Adeyemo, the caped crusader of crypto regulation, believes it’s high time that our outdated authorities catch up with those sneaky terrorists who are using cryptocurrencies to fund their evil deeds.

In a document sent to lawmakers, the Treasury highlighted the need for new tools and resources to deal with the ever-evolving methods of terrorist financing. They pointed out that these bad guys are using virtual methods to move money, just like a virtual game of hide-and-seek. They’re even making use of cryptocurrency networks and services, including mixers, to obfuscate their funding streams. It’s like trying to catch a slippery eel in a digital pond.

To fight this nefarious activity, the Treasury has some ingenious ideas. They want to develop a new sanctions tool to go after exchanges that support terrorism. This tool won’t just cut off a firm from the U.S. financial system, but it will also expose any firm doing business with the sanctioned entity to the risk of being cut off. It’s like unleashing a superhero’s special move that freezes the villains in their tracks.

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But that’s not all. The Treasury also wants to beef up their powers under the Bank Secrecy Act, creating a new category of financial institutions that includes cryptocurrency exchanges and virtual asset service providers. These institutions will have to meet anti-money laundering demands, just like superheroes taking on a mission to clean up the streets.

However, our heroes must be cautious. Some argue that these proposals might have unintended consequences. Austin Campbell, the founder of Zero Knowledge Consulting, voiced his concerns, saying that these powers could cause major geopolitical conflict and make a mockery of the technical details. After all, nobody wants our superheroes hogging the spotlight and causing chaos.

Speaking of chaos, the Treasury is setting its sights on Tether, the issuer of the biggest stablecoin. They want the power to exercise jurisdiction over transactions involving stablecoins pegged to the USD, even if there are no U.S. touchpoints. It’s like claiming jurisdiction over a race car that hasn’t even crossed the finish line yet.

Now, before we get too caught up in this epic battle against crypto crime, it’s worth mentioning that some reports about crypto funding by terrorist groups like Hamas have been discredited. So, the extent of their involvement remains uncertain. But that won’t stop our superheroes from doing what they do best: hunting down the bad guys and keeping us safe.

So, buckle up, fellow investors, because the U.S. Department of the Treasury is ready to take the crypto world by storm. With their proposed superpowers, they’ll be fighting financial crime like never before. Let’s hope they can strike the right balance between regulation and innovation, because in this digital battlefield, there’s no shortage of surprises.

Now, over to you, dear reader. What are your thoughts on these proposed crypto superpowers? Do you think they’ll successfully thwart the bad guys or inadvertently create chaos? Share your views and let the debate begin!

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Read More: Stablecoins Such as Tether May Be in U.S. Sights, Top U.S. Treasury Official Warns

This article has been edited by Nick Baker, the master of prose.

Image Source: Unsplash

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