House advances crypto crime bill with bipartisan backing

Valerie Plesch/Bloomberg

The House this week voted to advance a bill that would establish a task force to figure out how to stop bad actors from using crypto and other digital tools to commit crimes — and give the body a few years to come up with solutions. The measure's passage comes as the House Financial Services Committee passed a number of bipartisan measures out of the panel this week.

The Financial Technology Protection Act of 2025 — now being considered by the Senate after house passage — would create a special task force made up of law enforcement, intelligence officials, tech experts, and civil liberties groups to figure out how terrorists and criminals might be using digital assets and other novel technologies to launder money, evade sanctions or fund illegal activity.

"We got it done — this bipartisan bill brings government and industry together to crack down on terrorists and criminals using digital assets to launder money and fund terrorist activity," The bill's author, Zach Nunn, R-Iowa, wrote in a release. "As a combat veteran and cybersecurity leader, I've seen firsthand how bad actors exploit financial systems. With this legislation, we're furthering a national defense strategy that meets the evolving threat head-on."

The bill was introduced by Nunn in March and passed the House by voice vote on Monday. It is now under consideration in the Senate Banking Committee. The bill has bipartisan backing, with four co-sponsors: Rep. Jim Himes, D-Ct., Rep. Warren Davidson, R-Ohio, Rep. Mike Lawler, R-N.Y., and Rep. Josh Gottheimer, D-N.J. The Financial Technology Protection Act is endorsed by the Blockchain Association, Digital Chamber.

The bill is part of a broader push to close gaps in U.S. financial oversight as digital currencies and technologies grow in popularity. Supporters say it tries to balance national security with civil liberties by including voices from privacy and tech communities alongside law enforcement. It would also require the federal government to create and publicly release a national strategy to prevent the criminal use of digital assets.

"This bipartisan bill establishes a working group among key federal government departments and intelligence agencies to help combat terrorism and illicit financing on digital platforms," Nunn said in a release. "Ensuring the United States is prepared to address security risks and prevent illicit money laundering while also protecting freedom for all Americans is critical. We must do both simultaneously to ensure the long-term integrity of digital assets."

The bill's advancement comes as Congress is taking major steps forward on U.S. regulation of stablecoins with the GENIUS Act — which allows both banks and fintech companies to issue stablecoins under federal oversight — having been recently signed into law. After years in regulatory limbo, the act gives stablecoin issuers legal clarity and a framework for compliance, including anti-money-laundering and know-your-customer requirements. 

Payments Forum

Stablecoin executives are counting on the GENIUS Act

March 11, 2025 6:00 AM

Though celebrated by much of the payments and crypto industry, some banking and consumer groups have warned the law could weaken traditional banking's role in the financial system and lacks adequate protections for everyday users. The act's final passage followed bipartisan support in Congress and reflects growing momentum among U.S. policymakers to catch up with global digital asset regulation.

AML requirements are in flux across the government. The Treasury Department's rollback of key anti-money-laundering requirements — which required most U.S. companies to tell the federal government who actually owns or controls them — delays the implementation of a transparency tool long sought by banks, enforcement agencies and advocates alike. The Treasury's Financial Crimes Enforcement Network also recently suspended enforcement of a rule that would require investment advisors to comply with Bank Secrecy Act requirements, including implementing anti-money-laundering controls and filing suspicious activity reports to Fincen.