Compliance and Cybersecurity

Modernizing Regulation to Embrace Innovation

The U.S.’ approach to regulating digital assets often involves fitting these innovations into preexisting regulatory frameworks, such as the Bank Secrecy Act of 1970. This method can stifle the growth and potential of these technologies, as these outdated regulations may not fully comprehend the unique characteristics and advantages of digital assets.

Recognizing this, we advocate for the modernization of rules and laws to better align with the realities of emerging digital asset technologies. By pushing for updated regulations that reflect the current digital landscape, the Chamber aims to foster an environment where innovation can thrive, ensuring that regulatory measures effectively address risks without hindering technological advancement

Leveraging Blockchain to Stop Bad Actors

The insufficient sharing of information between public and private sectors in the U.S., combined with the government’s hesitance to utilize blockchain technology, significantly hampers efforts to combat illicit finance. This reluctance undermines the potential for innovative solutions that blockchain can offer in tracing and stopping illegal financial flows.

We believe in the need for enhanced collaboration and information exchange between government bodies and the private sector. By embracing blockchain’s capabilities, the government can strengthen its arsenal against illicit finance, ensuring a more secure and transparent financial system.

Addressing Emerging AI-Driven Threats

Rapid advances in artificial intelligence introduce new threat vectors into the digital asset ecosystem, including autonomous agents capable of holding assets, executing transactions, or operating as offensive or defensive cyber actors. These systems present novel risks, from theft and manipulation to large-scale automated exploitation. We emphasize the need for forward-looking security and policy approaches that account for AI-enabled threats, integrate cybersecurity best practices, and encourage coordination between regulators, technologists, and law enforcement to mitigate emerging risks before they scale.

Advancing International Standards and Public-Private Coordination

The lack of global coordination on Anti-Money Laundering (AML) and Know Your Customer (KYC) standards for digital asset technology poses a significant threat to national security. This disjointed approach allows bad actors to exploit regulatory gaps, facilitating illicit activities such as money laundering and terrorism financing across borders.

We are advocating for harmonized AML/KYC rules and standards across jurisdictions to create a unified front against these threats. By promoting streamlined regulations, we aim to close loopholes that jeopardize security, ensuring a safer digital asset ecosystem that thwarts the efforts of malicious entities while fostering legitimate growth and innovation in the sector.