In preparation for the Senate hearing, Deputy Secretary of State Adewale O. Adeyemo announced the US Treasury’s efforts to expand its authority in regulating cryptocurrency service providers, including those based outside of the US.
Adeyemo highlighted the need for stronger oversight, as malicious actors are constantly finding new ways to conceal their identities and move assets. He emphasized the use of cryptocurrencies by terrorist groups and countries under US sanctions, such as Russia and North Korea.
To combat this, Adeyemo called for the approval of a secondary sanctions tool to target foreign digital asset providers facilitating illicit transactions.
He also urged for the power to prosecute foreign-based crypto platforms that pose a threat to US national security by exploiting the country’s financial system.
