USA Senators Introduce Bill to Bolster Secret Service’s Cryptocurrency Oversight

• Senators push for stronger Secret Service powers to combat cryptocurrency crimes with a new bill introduced on August 2.
• The US targets unlicensed crypto transactions to curb money laundering and protect financial institutions.
• Global efforts, including Operation Spincaster, are crucial in tackling cyber scams and safeguarding crypto assets.

A bill to increase the Secret Service’s authority to tackle cryptocurrency-related criminality has been proposed by two US senators. On August 2, Charles Grassley of Iowa and Catherine Cortez Masto of Nevada presented the “Combatting Money Laundering in Cyber Crime Act of 2024.” 

By passing this measure, the Secret Service will have more power to look into Bitcoin transactions undertaken by unauthorized money-transmitting companies and possible scams against US financial institutions.

Cortez Masto stressed, “The funding of criminal activity through digital assets poses a direct threat to our nation’s security and safety.” “The U.S. Secret Service will be able to better investigate new forms of financial crime involving digital assets thanks to this bipartisan and bicameral bill.”

Expanding Federal Oversight

Grassley highlighted the necessity of stronger threat assessments to catch “seedy financial enterprises” facilitating money laundering schemes. “Putting financial activity on federal law enforcement’s radar like this bill does will improve our capacity to anticipate and prevent crimes,” Grassley noted.

According to blockchain forensics company Chainalysis, $22.2 billion worth of bitcoins were laundered in 2023 using illegal addresses. Despite its importance, this sum was decreased from $31.5 billion in 2022 by around 30%. However, unlike cryptocurrencies, cash is still the primary instrument enrolled in money laundering in America as the US Treasury noted in February.

Global Efforts in Combating Cybercrime

Despite this, US organizations including the CFTC, SEC, Treasury, and Department of Justice have been aggressively battling cryptocurrency-related criminality in recent years. The Secret Service, which is entrusted with policing prominent figures and looking into financial crimes, has come under fire. When it failed to stop a July assassination attempt on Republican nominee Donald Trump, questions were raised about its competency.

On a global scale, the AFP-led Joint Policing Cybercrime Coordination Centre (JPC3) has collaborated with blockchain data platform Chainalysis on Operation Spincaster. They have identified over 2,000 compromised crypto wallets belonging to Australian citizens.

This ongoing investigation targets “approval phishing,” a scam tricking victims into authorizing malicious blockchain transactions. Globally, this scam has caused over $4 billion in cryptocurrency losses.

The lead officer, Detective Superintendent Tim Stainton of AFP stressed the aspects of team dynamics. “Industry, government and law enforcement thus require knowledge sharing among the parties,” he said.

Collaborative Efforts Yield Results

Phil Larratt, Chainalysis’ director of investigations, praised the global collaboration. “The results of the operational sprints are enduring and create a positive impact in tackling a growing threat facing the community,” Larratt said. He highlighted the importance of proactive initiatives like Operation Spincaster in disrupting global scams.

Chainalysis has shared intelligence and training with public agencies and crypto exchanges from the US, UK, Canada, Spain, Netherlands, and Australia. This collaborative approach is crucial in the relentless fight against cryptocurrency scams.