U.S. Rep. Michael McCaul (R-TX) is encouraging the Biden administration to develop a strategy preventing potential cryptocurrency abuses as a means of evading U.S. sanctions.
“Emerging technologies like cryptocurrency offer many positive applications like humanitarian relief, but the administration has not kept pace in ensuring this novel form of currency is not used to the detriment of U.S. national security,” McCaul said. “Punishing criminals is a good first step, but I urge the administration to develop a robust strategy to stop bad actors from using cryptocurrency to evade U.S. sanctions.”
McCaul’s statement was issued in the wake of an American cryptocurrency expert being sentenced to more than five years in federal prison by a U.S. Federal Court for aiding North Korea in evading sanctions using cryptocurrency technologies.
McCaul recently forwarded correspondence to the Office of the Director of National Intelligence (ODNI) Director Avril Haines in the wake of her testimony before the House Permanent Select Committee on Intelligence. He sought clarity from the administration regarding how it would address cryptocurrency-related sanctions evasion.
Earlier this month, McCaul joined House Foreign Affairs Committee Chairman Gregory Meeks (D-NY) in introducing the Russia Cryptocurrency Transparency Act, officials said, noting the measure has been passed out of the House Foreign Affairs Committee.
The bill ensures America is taking the needed steps to prevent emerging technologies from being used to evade domestic sanctions.