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January 22, 2024

Bipartisan Bill Aims to Propel Crypto Industry Forward

The legislation is set to orchestrate a dynamic alliance between federal agencies and private enterprises

In a bold move to disrupt illicit financial activities, the Preventing Illicit Finance Through Partnership Act of 2024 has emerged on the legislative scene, promising a collaborative effort between federal agencies and private companies. Spearheaded by Senator Hagerty, this bill seeks to enhance the coordination of resources in the ongoing battle against financial wrongdoing.

Senator Hagerty emphasizes, "Federal law enforcement agencies already possess the tools to combat illicit finance – they just need to communicate effectively with the private sector. This bill aims to foster collaboration, ensuring a united front in the detection and disruption of bad actors."

If greenlit, the Act proposes the establishment of a pilot program, overseen by the attorney general, comprising 20 money services organizations. This initiative aims to facilitate the seamless exchange of information between federal agencies and private entities, allowing for a swift response to potential instances of illicit finance.

According to a recent press release from Senator Hagerty's office, the bill envisions providing "private companies a channel to alert federal agencies to any suspicious money transfers and sanctions evasion."

Senator Lummis adds her perspective, stating, "There are bad actors in every industry, and crypto assets are no exception. However, the Preventing Illicit Finance Through Partnership Act will enable federal regulators to collaborate with the private sector, shedding light on the often-misunderstood world of crypto without stifling its growth."

The Act joins a roster of crypto-related bills introduced over the past year. Notably, Senator Elizabeth Warren's Digital Asset Anti-Money Laundering Act has garnered support, proposing stringent compliance requirements for key players in the crypto space.

While concerns have been raised by Senator Thom Tillis regarding potential impacts, Senators Lummis and Hagerty position their bill as a collaborative solution. This public-private partnership, they argue, will inform regulators about the use cases for crypto assets, paving the way for federal regulations that foster innovation and maintain the industry's vitality on American soil.

The Preventing Illicit Finance Through Partnership Act of 2024 embodies a bipartisan commitment to navigating the complexities of the cryptocurrency sector. With its collaborative ethos, the bill represents a step towards establishing a robust framework that not only combats illicit financial activities but also encourages the flourishing innovation within the crypto industry. As the legislative landscape evolves, this approach could set the stage for a harmonious balance between regulatory oversight and the dynamic potential of crypto as the next frontier in financial innovation.

Neil Hodgson Coyle
Neil Hodgson-Coyle
Editorial chief at TechNews180
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