In a recent bipartisan move, 58 U.S. lawmakers have directed their attention to President Biden and Treasury Secretary Yellen, seeking comprehensive information regarding the alleged use of cryptocurrencies by Hamas, a designated terrorist organization. This inquiry stems from concerns over the potential misuse of digital assets for financing illegal operations.
The letter, spearheaded by Representatives across party lines such as Tom Emmer, Patrick McHenry, French Hill, and Ritchie Torres, emphasizes the necessity for a thorough understanding of Hamas’ utilization of cryptocurrencies. The lawmakers are eager to gain insights into the scope, scale, and duration of Hamas’ digital asset operations, shedding light on whether the United States has effectively seized illicit digital assets linked to such groups.
Reports suggesting that Hamas amassed substantial funds through cryptocurrencies have prompted this scrutiny. However, it remains ambiguous how much of the identified digital assets are accessible to or remain within the possession of Hamas, prompting a quest for clarity.
Amidst these inquiries, blockchain analytics firm Elliptic refuted claims of substantial crypto donations to Hamas, highlighting a misrepresentation of data on the matter. Additionally, U.S. Deputy Secretary of the Treasury, Wally Adeyemo, emphasized that crypto usage doesn’t significantly constitute the funding source for these groups.
The lawmakers have posed a series of seven targeted questions to the White House and the Treasury, seeking detailed responses by November 29. These inquiries focus on identifying, valuing, and seizing digital and non-digital assets linked to terrorist organizations, alongside the potential distribution of seized assets and legal frameworks for such actions.
Furthermore, some Congress members have urged the utilization of blockchain technology to scrutinize Hamas’ crypto footprint. They argue that the transparent nature of blockchain could potentially unveil a clearer picture of Hamas’ financial activities compared to conventional, less transparent funding methods. Emmer specifically highlighted the importance of leveraging this technology to understand and address illicit activities within the digital asset ecosystem while supporting legitimate use and innovation.
Chairman McHenry, leading the House Financial Services Committee’s Oversight and Investigations Subcommittee, stressed the significance of comprehending the true extent of digital asset use for illicit purposes. Amid conflicting reports on Hamas’ fundraising through cryptocurrencies, this bipartisan effort aims to conduct a fact-finding mission. McHenry emphasized the transparent nature of distributed ledger technology, emphasizing its potential to detect and track illicit activities.
This legislative action underscores a critical need for transparency and accountability within the digital asset landscape, ensuring that measures are in place to curb illicit activities without hindering legitimate innovation and usage.
Get the latest Crypto & Blockchain News in your inbox.