The United States House of Representatives Financial Services Committee (FSC) has scheduled a Nov. 15 hearing for a deep dive into illicit activities in the cryptocurrency ecosystem.
The “Crypto crime in context: breaking down the illicit activity in digital assets,” hearing will feature prominent crypto entrepreneurs as attendees.
According to the committee’s calendar, Bill Hughes, senior counsel and director of global regulatory matters at Consensys, and Jonathan Levin, co-founder and chief strategy officer at Chainalysis, will participate in the hearing as witnesses. Former federal officer and human trafficking finance specialist Jane Khodarkovsky will also join the duo as a witness. The committee memorandum on the hearing clarifies the FSC’s motive:
“To ensure that the digital asset ecosystem is not exploited by bad actors, it is critical that Congress understand the degree to which illicit activity exists, what tools are available to combat this activity and explore any potential gaps to prevent and detect illicit activity.”
Discussions around illicit activity, such as money laundering and terror financing, will take center stage at the hearing. FSC cited a Chainalysis report from January 2023, which stated that illicit cryptocurrency volumes reached all-time highs amid a surge in sanctions designations and hacking.
The hearing will also examine the depth of Anti-Money Laundering and Counter-Terrorist Financing measures enforced by crypto exchanges and decentralized finance providers.
In addition, the role of governing entities, including the Financial Crimes Enforcement Network, the Office of Foreign Assets Control and the Department of Justice (DOJ), will also be discussed at the hearing.
In July, Representative Patrick McHenry, the chairman of the FSC, announced the markup of legislation to bring regulatory clarity for the issuance of stablecoins designed to be used for payment.
#NEW: Chairman @PatrickMcHenry announces a markup of legislation to provide clarity for the digital asset ecosystem and address national security concerns.
— Financial Services GOP (@FinancialCmte) July 22, 2023
Meanwhile, the DOJ has decided to double the headcount of its crypto crime team. In the process, the DOJ merged its two teams — the Computer Crime and Intellectual Property Section and the National Cryptocurrency Enforcement Team — to form the new “super-charged” unit tasked to combat ransomware crimes.
Strategy’s Michael Saylor and BitMine’s Tom Lee are among 18 industry leaders who will look at ways to pass the BITCOIN Act and enable budget-neutral ways to buy Bitcoin.
It was a prescient and – as it turned out – incredibly optimistic sign off from Peter Mandelson after eight years as Chancellor of Manchester Metropolitan University.
“I hope I survive in my next job for at least half that period”, the Financial Times reported him as saying – with a smile.
As something of a serial sackee from government posts, we know Sir Keir Starmer was, to an extent, aware of the risks of appointing the ‘Prince of Darkness’ as his man in Washington.
But in his first interview since he gave the ambassador his marching orders, the prime minister said if he had “known then what I know now” then he would not have given him the job.
For many Labour MPs, this will do little to answer questions about the slips in political judgement that led Downing Street down this disastrous alleyway.
Like the rest of the world, Sir Keir Starmer did know of Lord Mandelson’s friendship with the paedophile Jeffrey Epstein when he sent him to Washington.
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The business secretary spelt out the reasoning for that over the weekend saying that the government judged it “worth the risk”.
Image: Keir Starmer welcomes Nato Secretary General Mark Rutte to Downing Street.
Pic: PA
This is somewhat problematic.
As you now have a government which – after being elected on the promise to restore high standards – appears to be admitting that previous indiscretions can be overlooked if the cause is important enough.
Package that up with other scandals that have resulted in departures – Louise Haigh, Tulip Siddiq, Angela Rayner – and you start to get a stink that becomes hard to shift.
But more than that, the events of the last week again demonstrate an apparent lack of ability in government to see round corners and deal with crises before they start knocking lumps out of the Prime Minister.
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‘Had I known then, what I know now, I’d have never appointed him’ Starmer said.
Remember, for many the cardinal sin here was not necessarily the original appointment of Mandelson (while eyebrows were raised at the time, there was nowhere near the scale of outrage we’ve had in the last week with many career diplomats even agreeing the with logic of the choice) but the fact that Sir Keir walked into PMQs and gave the ambassador his full throated backing when it was becoming clear to many around Westminster that he simply wouldn’t be able to stay in post.
The explanation from Downing Street is essentially that a process was playing out, and you shouldn’t sack an ambassador based on a media enquiry alone.
But good process doesn’t always align with good politics.
Something this barrister-turned-politician may now be finding out the hard way.