National Security
We believe that fit for purpose and stringent anti-money laundering practices, a clear regulatory framework, and strong partnerships with authorities are vital for advancing national security in the digital assets space.
Our challenge is twofold: tackling illicit blockchain use and rectifying unclear regulations to safeguard U.S. security and promote digital asset growth. Regulatory gaps risk pushing innovation abroad, affecting U.S. security and industry progress.
Clear regulations that protect consumers and stop bad actors without stifling innovation or U.S. competitiveness.
The Policy Issues
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 This method can stifle the growth and potential of these technologies, as these outdated regulations may not fully comprehend the unique characteristics and advantages of digital assets.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
- Cryptocurrency Under Threat: Urgent Call to Stop Senate Bill Banning Cryptocurrency | February 2024
- Letter to Congress Countering Crypto & Terrorism Narrative Created by Senator Warren (D-MA) | November 2023
- Response to WSJ on Cryptocurrency and Illicit Finance | October 2023
- Statement on Digital Asset Anti-Money Laundering Act | July 2023
- Statement in Support of Blockchain Regulatory Certainty Act | July 2023
- Statement in Opposition to CANSEE Act | July 2023
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.
Lack of International Standards and Global 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.
Our Impact
We are committed to developing forward-thinking strategies to address the intricate challenges where blockchain and national security intersect.
Counterterrorism and Illicit Finance
We are developing workable and bespoke policy proscriptions to include in draft legislation addressing the most pressing on-chain illicit finance activity like terror financing, effective sanctions, rogue nation activity and scams.
Strengthening U.S. Government Compliance, Enforcement and Regulatory Capabilities
We are developing draft legislation that would create a FinCEN Secondment Incentivization program to supplement FinCEN’s workforce with private sector expertise in the rapidly innovating FinTech industry.
Relevant National Security News
