Bill proposes to give Secret Service more power to pursue crypto crime

Two United States Senators have introduced a bill aimed at expanding the Secret Service’s powers to combat cryptocurrency-related crime.

The “Combatting Money Laundering in Cyber Crime Act of 2024” bill was introduced by Nevada’s Catherine Cortez Masto and Iowa’s Charles Grassley on Aug. 2.

It would expand the Secret Service’s authority to investigate cryptocurrency transactions made by unlicensed money transmitting businesses and potential frauds committed against US financial institutions.

“The funding of criminal activity through digital assets poses a direct threat to the security and safety of our nation,” Cortez Masto said in stressing the bill’s importance.

“This bipartisan and bicameral bill will allow for the U.S. Secret Service to better investigate new forms of financial crime involving digital assets.”

Grassley said stronger threat assessments are needed to catch “seedy financial enterprises” facilitating money laundering schemes.

“Putting financial activity on federal law enforcement’s radar like this bill does will improve our capacity to anticipate and prevent crimes.”

Illicit addresses laundered $22.2 billion worth of cryptocurrencies in 2023, according to blockchain forensics firm Chainalysis. While significant, it amounted to a near 30% fall from $31.5 billion in 2022.

However, in February, the US Treasury highlighted that cash — not cryptocurrency — remains the main money laundering method for criminals in the US.

That said, the US Treasury, Department of Justice, Securities and Exchange Commission and Commodity Futures Trading Commission have also taken action to stop cryptocurrency crime in recent years.

The Secret Service is primarily tasked with protecting the US president, vice president and other people of political importance, as well as conducting investigations into crimes against the financial infrastructure of the US.

Its competence was put under the spotlight in July when it failed to prevent an assassination attempt of Republican candidate Donald Trump.

Meanwhile, the US House passed the Financial Technology Protection Act on July 23, aimed at preventing illicit cryptocurrency activities while safeguarding consumer choice.