As part the new “Russia Cryptocurrency Transparency Act” proposed by Rep. Gregory W. Meeks (D., NY) and Rep. Michael McCaul (R., TX), Chair and Ranking Member of the House Foreign Affairs Committee, a new role for the U.S. Department of State is being proposed by Congress in order to overcome any subversion of sanctions in the cryptocurrency markets by Russia due to its invasion of Ukraine.
The press release takes care to not condemn crypto at the outset and then pinpoints the heart of the matter:
“While the rise of digital assets like cryptocurrencies promise innovative financial opportunity, digital assets could be ripe for abuse as Russia seeks to evade the unprecedented sanctions the United States has imposed for Vladmir Putin’s brutal war of choice on Ukraine. This legislation will provide greater oversight over the State Department’s rewards program, helping ensure these hard-to-trace funds are not falling in the hands of bad actors.”
H.R.7338 as it is known was introduced on Thursday, March 31 in the U.S. House of Representatives with hopes of creating a “Director of Digital Currency Security in the Office of Economic Sanctions Policy and Implementation of the Department of State…”