Treasury Department officials are worried that digital currencies are giving terrorist groups, drug cartels and other groups that threaten national security access to money that finances their dangerous activities.
Deputy Treasury Secretary Adewale Adeyemo told the Senate Banking, Housing and Urban Affairs Committee that digital currency is a tool that is frequently used by cartels, terrorist groups and other malign actors use to subvert sanctions and being cut off from the traditional financial system. He also asked Congress to pass a bill that would give the Treasury Department more tools to target foreign providers of digital assets.
Lawmakers said that cracking down on illicit finance maneuvers is also key to stopping the flow of fentanyl from flowing across U.S. borders and fueling an overdose crisis. China has agreed to work with the U.S. to slow the flow of fentanyl, classifying all forms of it as a controlled substance and taking other measures.
Another issue with U.S. sanctions addressed in the hearing was limiting Russia’s ability to fund its war effort and cut off its supply of Western technology.