Proposed bill strengthens US Secret Service’s role in combating crypto crimes

A proposed bill seeks to empower the United States Secret Service to combat crypto crimes better. This is the latest crypto-related bill to be presented over the past months.

US senators Catherine Cortez Masto and Charles Grassley recently presented the “Combatting Money Laundering in Cyber Crime Act of 2024” bill, which gives the Secret Service enhanced authority to handle investigations involving crypto-related crimes.

Specifically, the agency would investigate crimes against US financial institutions and monitor unlicensed money transmitter businesses dealing with cryptocurrencies. 

According to Senator Cortez Masto, crypto assets pose a “direct threat” to the security of the US due to their role in funding criminal activity.

Thus, the “bipartisan and bicameral bill” will allow the Secret Service to “better investigate” financial crime involving digital assets.

The bill looks to amend existing regulations, specifically Section 3056(b) of Title 18 of the United States Code, to include new offences under the Secret Service’s investigative purview. 

In addition, the Government Accountability Office is required to present a report on law enforcement’s effectiveness in identifying and deterring money laundering in cyber crimes.

Senator Grassley also pointed out the role of “seedy financial enterprises” that are often involved in illicit activities such as money laundering and terrorism financing, stressing that the legislation will help the US better “anticipate and prevent crimes.”

Secret Service and crypto crimes

The Secret Service, typically associated with protecting key US government officials, is also responsible for overseeing financial crimes. By 2022, the agency had played an active role in combating crypto-related crimes, having been involved in 254 cases since 2015.

Last year, stablecoin issuer Tether revealed that it had collaborated with the Secret Service to freeze 326 wallets holding $435 million in illicit crypto assets.

The funds were from wallets on the Office of Foreign Asset Control’s Specially Designated Nationals list.

In late 2023, the Secret Service seized $500,000 worth of crypto assets from the accounts of Chinese scammer Wang Yicheng. 

The new amendment comes as the US witnessed a surge in money laundering activities. A Chainalysis report from earlier this year highlights that over $22 billion worth of cryptocurrencies were laundered in 2023 alone.

However, in a subsequent report, the firm noted that cash was still the most preferred tool in financial crimes.

US government is re-working the rules

Meanwhile, US authorities are looking to exert more control on the crypto sector, which has become a major talking point in the 2024 US elections. 

Last month, US lawmakers also voted in favour of the Financial Technology Protection Act, which aims to thwart money laundering efforts using cryptocurrencies. It looks to establish a working including key crypto industry leaders and representatives from several government agencies.

In June, Senator Mark Warren proposed a controversial bill that would grant the US president the power to block access to digital assets.

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