The Deputy Secretary of the Treasury speaks on various banking matters

The Deputy Secretary of Treasury, Wally Adeyemo, gave Senate Banking Committee Update on Banking, Housing, and Urban Affairs.

Adeyemo has been an outspoken advocate for increasing the U.S. Treasury Department’s regulatory powers and influence over domestic finances.

Adeyemo provides an update to the Senate Banking Committee

“I am here today because we need additional tools to protect the American people,” the deputy secretary told the Senate Banking Committee.

Adeyemo will continue, saying: “We (Treasury) are taking steps to isolate terrorist groups and other malicious actors from the traditional financial system, and we are concerned about the ways in which these actors are using cryptocurrencies to attempt to circumvent our sanctions.”

Deputy Secretary Adeyemo proposed three key reform topics to the Senate Banking Committee in November of 2023. This included the creation of a financial sanctions instrument targeting “foreign digital asset providers that facilitate illicit financing.”

The second proposed theme was to “modernize and bridge the gaps in existing authorities by expanding their reach to clearly cover the key players and core activities of the digital assets ecosystem.”

Third, Adeyemo addressed the “jurisdictional risks posed by offshore cryptocurrency platforms, which represents a major challenge.”

The US Treasury Department has stated that cryptocurrencies are becoming an emerging player in the hands of dangerous groups. Deputy Minister Adeyemo will also highlight the financing methods used by terrorists and key groups of concern.

“While we continue to assess that terrorists prefer to use traditional financial products and services, we fear that without action from Congress to provide us with the necessary tools, the use of virtual assets by these actors will grow,” he said.

While today these actors only use virtual assets for a small portion of their illicit activity, in other areas we know that illicit actors rely almost entirely on virtual currencies. Over the past few years, ransomware attacks have increased in size, complexity, and frequency. The Treasury Department’s Financial Crimes Enforcement Network, based on BSA reporting, found that more than $1 billion in ransomware payments were made exclusively using cryptocurrencies in 2023. This not only has an impact on our national security, but also our economy.

You can watch the full hearing Senate Banking Committee It is hoped that today’s session will succeed in eradicating the external and domestic threats that illicit banking can bring.

picture: ideogram.

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