Senate's Banking Chairman Vows To 'Crack Down' On Crypto's Terrorism Ties: 'Cut Off Funding...At Its Source'

The chairman of the U.S. Senate’s Banking Committee, Sen. Sherrod Brown (D-Ohio), announced the panel’s intent to investigate and curb the use of cryptocurrencies, such as Bitcoin BTC/USD, Ethereum ETH/USD and Dogecoin DOGE/USD, in funding terrorism, especially in the context of Israel’s ongoing conflict with Hamas.

Brown stated, “We can work to cut off funding for terrorism at its source,” reported CoinDesk.

The committee plans to scrutinize various terrorist funding channels, including cryptocurrency, and seek additional measures to halt such monetary flows.

These developments come in the wake of recent reports surrounding the role of cryptocurrencies in the Israel-Hamas conflict. Blockchain analytics firms Elliptic and Chainalysis have contested the accuracy of these reports, suggesting that the use of digital assets for terrorism funding has been significantly overstated.

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Over 100 U.S. lawmakers, including committee member Sen. Elizabeth Warren (D-Mass.), have called for federal action to stem the flow of crypto to terrorists. Brown commended the bipartisan efforts to close gaps in illicit finance rules related to digital assets and reaffirmed the committee's commitment to prevent the exploitation of cryptocurrencies by “terrorists and bad actors.”

Brown, a known critic of the crypto industry, argued that crypto platforms lack the common-sense safeguards that traditional banking systems have implemented. He emphasized that the recent steps taken by the U.S. Treasury to sanction individuals and entities allegedly supporting Hamas are insufficient and called for additional action.

Brown’s comments indicate that any significant legislation pertaining to digital assets will have to pass through his committee, suggesting that the crypto industry could face increased regulatory scrutiny in the near future.

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Cryptocurrency Photo by Avi Rozen on Shutterstock