Recently, the House of Representatives passed H.R. 56, the Financial Technology Protection Act, after passing similar legislation that stalled in the Senate last session. The aim of the bill is to ensure new technologies that make it easier to business globally do not unintentionally make it easier to commit crimes and execute terrorist attacks at the same time.

The bill, if passed into law, establishes the Independent Financial Technology Task Force to Combat Terrorism and Illicit Financing as well as the Fintech Leadership in Innovation and Financial Intelligence Program. It also provides rewards for information that leads to convictions of those using digital currency for terrorist activity.

U.S. Rep. Ted Budd (R-N.C.), one of the bill’s sponsor, praised that House’s passage of the act: “I’ve spent a lot of time highlighting the need for new and innovative ways to disrupt illicit and terror financing networks during my time in Washington and am glad to see this bill move so early on in the new session.”

The bipartisan bill passed unanimously, according to information from Budd’s office, just as its counterpart did last go around. In a joint statement from Budd, and U.S. Rep. Stephen Lynch (D-MA), who also sponsored the legislation, the congressmen noted how illegal funding is a critical component of criminal and terrorist enterprises.

“When our bill passed the House unanimously last session, Congress showed that it understands that illicit financing networks are the linchpin of any terrorist or criminal organization’s operations,” the statement reads. “As we move into an increasingly digital and technology centered world, criminals and terrorists will start to use new technologies that are available to them. H.R. 56 will help put a stop to this trend. We hope to gain on the tremendous ground made in the House last session and find a way to move H.R. 56 in the Senate.”

The legislation would also create a fund to reward those who develop innovative ways to thwart terrorists’ use of cryptocurrencies and a “targeted rewards program” for information that leads to the capture of terrorists or other bad actors who use cryptocurrencies for illicit proposes.  

Senate Banking Committee Lays Out Legislative Agenda

Senate Banking Committee Chairman Mike Crapo, a Republican from Ohio, laid out the committee’s agenda, including the evaluation of fintech-related legislation. With respect to the lending marketplace, digital currencies and payments, insurance and wealth management, the committee is set to evaluate regulatory improvements while also fostering innovation, reads the committee’s agenda.

The committee will also consider the “collection, protection and use of personally identifiable information by both the government and private companies,” calling for “close scrutiny.”

“Recent large-scale data breaches highlighted the importance of not only protecting consumers’ information, but the need to provide consumers with more control over what information is collected and how such information is used,” the agenda reads. “We need legislative solutions to give consumers more control over and enhanced protection of consumer financial data, and to ensure consumers are notified of breaches in a timely and consistent manner.”