WASHINGTON — The House overwhelmingly passed three bipartisan financial services bills late Monday, including proposals aimed at preventing the use of virtual currencies for illicit activities.
The bills were supported by both House Financial Services Chairwoman Maxine Waters, D-Calif., and ranking member Patrick McHenry, R-N.C.
The Financial Technology Protection Act would establish an independent fintech task force to research how terrorists and other bad actors exploit new financial technologies, particularly cryptocurrencies. The task force would issue an annual report. The bill would also direct the Treasury Department to provide a reward for providing information leading to the conviction of those who use digital currencies for terrorism purposes.
“The talent and technological capabilities to track these transactions must keep up so the government can identify terrorists, hackers, and other criminals who try to hide their activities and proceeds using cryptocurrencies and related exchanges,” Waters said.
The bill passed the chamber with a voice vote.
The House passed a separate bill that requires the Government Accountability Office to study how online marketplaces, including virtual currencies, are being used for sex and drug trafficking.
The legislation, which passed the chamber 412-3, requires the GAO to study the transfer of illicit proceeds into the U.S. banking system, the state and nonstate actors that participate in such activity, preventative efforts from federal and state agencies, and the extent to which unique characteristics of virtual currencies can contribute to the tracking and prosecution of illicit funding.
“As my colleagues know, there are few members more committed than I am to exploring how new technologies can facilitate commerce and growth,” McHenry said in prepared remarks for the House floor. “But in order for such technologies to flourish, we need a rigorous discussion of their risks in enabling new routes for illicit finance.”
The third bill, which passed the House 413-3, is aimed at preventing corporate insiders from engaging in insider trading, requiring the Securities and Exchange Commission to study whether to amend its rule for trading plans to limit the ability of corporate insiders to adopt multiple, overlapping plans or change their plans to indirectly take advantage of inside information.
