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The U.S. Senate Banking Committee, chaired by Sen. Sherrod Brown, aims to rigorously tackle the use of cryptocurrencies in funding terrorism. During a hearing last Thursday on illicit finance, the Ohio Democrat announced that his committee will scrutinize various methods of terrorist financing, including cryptocurrency. Significantly, this move comes as the U.S. seeks to support Israel against “Iranian-backed terrorists like Hamas.” Brown emphasized the necessity of severing the financial lifelines for terrorists. The Senate Banking Committee oversees U.S. financial watchdogs, thus placing Brown in a pivotal role when it comes to formulating crypto policy. He contends that additional measures must be enacted to disrupt the flow of funds to terrorist organizations. Analytical firms question accuracy of previous reports However, blockchain analytics firms Elliptic and Chainalysis have called into question recent reports on the involvement of cryptocurrency in the Israel-Hamas conflict. Both firms assert that the data has been largely misinterpreted and exaggerated. The Wall Street Journal, a notable news outlet, had previously linked Hamas to tens of millions in cryptocurrency donations. However, Elliptic has countered this claim, stating that the amounts raised by Hamas via digital assets remain relatively minuscule compared to other funding avenues. Besides, the same blockchain firms have urged The Wall Street Journal to amend their initial reporting, drawing scrutiny from cryptocurrency advocates. The analytical firms insist that the narrative surrounding crypto and terrorism requires a more nuanced understanding and fact-based reporting. Legislation in motion to close loopholes Moreover, other U.S. lawmakers are joining Brown in his legislative crusade against the illicit use of cryptocurrencies. More than a hundred of them, including Senate Banking Committee member Sen. Elizabeth Warren, recently petitioned federal agencies to clamp down on crypto’s availability to terrorist networks. These legislative efforts are not solely partisan; indeed, they are part of a broader bipartisan…

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Filed under: News - @ October 27, 2023 3:28 am