Two U.S. Senators, Charles Grassley (R-Iowa) and Catherine Cortez Masto (D-Nevada), have introduced a bill called the “Combatting Money Laundering in Cyber Crime Act of 2024” on August 2. The proposed bill aims to empower the Secret Service to prevent money laundering activities conducted using cryptocurrencies.
If the bill is approved, the Secret Service will have the authority to target criminal organizations that utilize crypto to bypass money laundering regulations and defraud U.S. financial institutions. Senator Cortez Masto emphasized the importance of the bipartisan bill, stating that it will enable the Secret Service to enhance its investigations into new forms of financial crimes involving digital assets. She expressed her commitment to working across party lines to safeguard Nevada’s communities and families.
Senator Charles Grassley highlighted the role of shady financial entities in perpetrating crimes within communities. He stressed the necessity of robust threat assessment capabilities to effectively combat money laundering schemes.
Criminals have been leveraging cryptocurrencies and platforms like mixers to conceal the origins of illicit funds, eventually converting them into cash through centralized exchanges. These funds are commonly associated with illegal activities such as cybercrime, human trafficking, drug trafficking, and more.
According to Chainalysis’ research, in 2023, wallet addresses linked to illicit activities transferred $22.2 billion to exchanges. This figure marked a decrease from the previous year, 2022, which recorded $31.5 billion in crime-related funds moved to service providers. Despite this, traditional cash transactions remain the preferred method for money laundering.
While the Secret Service is primarily known for safeguarding high-profile individuals like the President and vice president, it also plays a vital role in investigating financial crimes that undermine the integrity of the U.S. financial system.
Senator Cortez Masto reiterated the critical function of the Secret Service in combating financial crimes and emphasized that the bill aims to ensure the agency can continue protecting the public. Additionally, other regulatory bodies such as the Securities and Exchange Commission, Commodities and Futures Trading Commission, Department of Justice, and U.S. Treasury are actively involved in combating financial crimes involving cryptocurrencies.