In response to recent reports that the terrorist group Hamas received donations through cryptocurrencies, the US government is stepping up efforts to increase oversight of the sector.
Last week’s terrorist attack on Israel ended up being a major target in the cryptocurrency market as reports indicated that several terrorist groups, including Hamas, received donations through digital currencies, raising concerns among governments about the lack of control over the sector.
US Senate Bench Chairman Sherrod Brown, known for his criticism of the cryptocurrency industry, has promised that his committee will investigate the role of cryptocurrencies in the attacks.
Meanwhile, Senator Elizabeth Warren, who has pushed for stricter regulations on cryptocurrencies, sees the link between Hamas and cryptocurrencies as a boost to her cause.
“The danger of cryptocurrency-funded terrorism is real and should be an urgent priority for Congress.” — the senator said in an interview quoted by the website Politico.
“There is a growing bipartisan coalition of senators committed to passing this bill and fighting terrorism around the world by suppressing its financing.”
Hamas received $134 million in cryptocurrencies
According to a report from the Wall Street Journal, digital wallets linked to Hamas have received approximately $134 million since 2021. This has raised questions about the effectiveness of current measures to combat money laundering and terrorist financing in the world of cryptocurrencies.
“The use of cryptocurrencies by terrorist organizations should serve as a wake-up call for Congress to crack down on the digital assets and money laundering that we now know are helping finance Israel’s horrific massacres .”said Senator Roger Marshall of Warren’s bill.
Market entrepreneurs are mobilizing to cope with the increasing pressure. Kristin Smith, CEO of the Blockchain Association, says Senator Warren’s bill will not solve the problems and will only force unregulated activities into activity.
“Unfortunately, Senator Warren’s bill would do nothing to stop bad actors from abusing this technology.”she said. “Instead, it would create an unworkable new regime that law-abiding American companies simply cannot comply with.”
Rep. Jim Himes said the controversy surrounding Hamas funding highlights the need for cryptocurrency proponents to more effectively communicate their legitimate use cases to win support from Congress.
As the debate continues in Washington, the cryptocurrency industry is facing a pivotal moment in its quest for legitimacy and regulation.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
