U.S. Sen. Dianne Feinstein (D-CA) is seeking information on how the Treasury Department and the Internal Revenue Service (IRS) are tracking the use of digital currencies for human and drug trafficking.
Feinsteinʻs letter of inquiry to Treasury Secretary Janet Yellen and IRS Commissioner Charles Retting follows a December 2021 report by the Government Accountability Office (GAO) on how federal agencies may lack data on the use of digital currencies facilitate human and drug trafficking.
“As you know, GAO’s report indicates that digital currencies can ‘facilitate illicit activities, including human and drug trafficking,’ in large part due to the anonymity these currencies provide to their owners. However, according to the report, federal agencies may not be consistently capturing the data needed to help them prevent such activities, including with respect to so-called “cryptocurrency ATMs” that allow users to exchange digital currencies,” Feinstein wrote.
The senator requested the agencies to describe the steps they are currently taking or planning to take to implement GAO’s recommendations to better capture data on the use of digital currencies to facilitate drug and human trafficking as well as outline other actions being considered — on their own or in cooperation with other agencies — to improve the tracking, sharing, and use of information regarding the use of digital currencies in human and drug trafficking and other illicit activities. She also asked if the agencies require any additional legislative authorities to implement GAO’s recommendations or take other actions they are taking or considering taking in this area.