Tom Emmer, a United States congressman, sought specific explanations on claims related to the alleged use of cryptocurrencies to finance terrorism reports during a House Financial Services Committee hearing on Wednesday.
On February 14, Congressman Tom Emmer (MN-06) questioned U.S. Department of Treasury Undersecretary for Terrorism and Financial Intelligence (TFI) Brian Nelson during a House Financial Services Committee hearing providing oversight of the Financial Crimes Enforcement Network (FinCEN) and the Office of Terrorism and Financial Intelligence.
It should be recalled that two months ago, Brian Armstrong, CEO of the San Francisco-based crypto exchange Coinbase, challenged the United States Senators’ approach toward the cryptocurrency sector in the country, expressing his opinion via X:
“Senators Warren and Marshall now lobbying for big banks. Being anti-crypto is a really bad political strategy going into 2024:
* 52m Americans have used crypto
* 38% of young people say crypto can increase economic opportunities
* just 9% of Americans satisfied with the current financial system
* crypto prices up 90% YTD.”
Cryptocurrencies Are Not a Tool for Terrorists
At the court hearing, the congressman asked US Treasury Department Undersecretary for Terrorism and Financial Intelligence (TFI) Brian Nelson to confirm the Wall Street Journal’s coverage of Hamas’ efforts to raise money through digital assets.
Emmer highlighted that the magazine revealed in October last year that between August 2021 and June 2023, digital assets valued at $41 million went to Hamas. Additionally, approximately $93 million allegedly went to Palestinian Islamic Jihad.
Several leading blockchain analytics companies around the world have rejected the WSJ’s claim, stating that the amount of money going to these organizations is negligible. Specifically, the congressman curiously asked Brain Nelson to confirm whether this alleged coverage aligns with the US Treasury Department’s assessment.
Responding to the question, Nelson stated that the US Treasury data is similar to that of analytical companies. “The data published in the Wall Street Journal article emphasizes wallets, although not necessarily the aggregate numbers among wallet users,” Nelson said.
Furthermore, the Undersecretary noted that cryptocurrency assets are not the main means of financing terrorism globally. According to Nelson, the US Treasury’s assessment shows that terrorists primarily use traditional methods and services, not cryptocurrencies, to finance their activities.
Nelson further backed up his claims by highlighting that the department has closely monitored this act to demonstrate the accuracy of the data. Because of this, Emmer then questioned whether crypto assets were a common means of financing for Hamas and Palestinian Islamic Jihad.
Need for Accurate Development Data
Later, Emmer asked Nelson if Hamas’ cryptocurrency use was less than what the WSJ and the media are reporting. The undersecretary confirmed that this is correct, as the department’s evaluation says. He added that, in his opinion, “We have done a good job identifying the virtual asset providers and financial facilitators that both Hamas and Jihad have historically relied on.”
Emmer has urged the US Treasury Department to publish its records to address false information in the sector. The Congressman mentioned that several US senators and CEOs are already exploiting the information, threatening innovation in the United States.
In December, US Senator Elizabeth Warren expressed her stance on cryptocurrencies, saying their main use cases are for criminal activities, including money laundering, terrorist financing and drug trafficking, among others.
Warren has called digital assets the “new threat” to the world due to the risk they pose to the economy. However, Emmer, other US representatives, independent companies, and even the Treasury Department, disagreed.
By Audy Castaneda
