Bill targeting digital currency safeguards advances House committee

A measure designed to combat potential terrorist use of digital currencies advanced the House Financial Services Committee passage.

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The Financial Technology Protection Act, introduced by Rep. Ted Budd (R-NC), seeks to ensure currencies are not being used by terrorist organizations to escape a money trail, as Budd noted he was confident the legislation adopts several tools to achieve the goal.

Budd said the effort establishes the Fintech Leadership in Innovation and Financial Intelligence Program, which will be used for grants and rewards in the FinTech space for ideas and programs to combat terrorist use of digital currencies.

The measure establishes an Independent Financial Technology Task Force, providing rewards for information leading to convictions related to terrorist use of digital currencies while encouraging the development of tools and programs to combat illicit use of digital currencies and for other purposes.

“Experts in the private sector can track illicit use of these currencies and perhaps do a better job of leveraging their talent to create tools and programs through the program,” Budd said. “I want to thank my colleague from Massachusetts, Rep. Stephen Lynch, for leading this legislation with me. He said it best in committee our work on the Terrorism and Illicit Finance Subcommittee is truly bipartisan, and he is exactly right. I cannot thank him and his staff enough for their support on this.”