In a recent post on the X social media network, Paul Grewal, chief legal officer at Coinbase, has urged Congress to pass stablecoin legislation if the US wants to be serious about a negligible percentage of illicit finance that is conducted with the help of cryptocurrencies.
Grewal's comment came in response to the testimony published by Wally Adeyemo, the US deputy secretary of the Treasury, that focuses on countering illegal use cases of crypto.
In his testimony, Adeyemo has noted that bad actors have increasingly started using cryptocurrencies as a tool for hiding their identities. In such a way, it is possible for them to cut off the traditional financial system.
The official has stressed that the Treasury is working to counter illicit finance networks around the globe.
The testimony mentions that North Korea, for instance, is responsible for multiple cyber heists. It relies on over-the-counter crypto traders in order to convert ill-gotten cryptocurrencies into cash.
Adeyemo has proposed focusing on such reforms as the introduction of secondary sanctions, the modernization of existing authorities, and addressing the risks of offshore cryptocurrency platforms.
As reported by U.Today, the Tron blockchain alone accounts for roughly half of all illegal transactions due to the popularity of the Tron-based USDT token.
Last March,U.S. Rep. Patrick McHenry (R-N.C.) said that the House of Representatives had a "workable timeframe" for a stablecoin bill. The bill has attracted significant bipartisan support, which is why it is likely to move forward in 2024.
Vladislav Sopov
U.Today Editorial Team
Dan Burgin