Proposed bill boosts Secret Service’s power in combating cybercrime

Two USA senators have introduced a bill before the Senate, the “Combatting Money Laundering in Cyber Crime Bill of 2024.” The bill seeks to expand the Secret Service’s powers to prosecute and investigate digital asset-related crimes.  

US Senators Catherine Cortez Masto and Charles Grassley tabled a bill before the Senate on August 2  to combat cybercrime. The bill includes provisions that give the Secret Service power to investigate and prosecute crypto-related crimes. The bill specifically grants the agency powers to investigate crimes against financial institutions.

New bill proposes to grant the Secret Service more power to investigate cybercrime 

Two senators in the United States have introduced new legislation that would grant the Secret Service more investigative powers in combatting cybercrime. Iowa’s Charles Grassley and Nevada’s Catherine Cortes Masto introduced the bill on August 2 titled “Combating Money Laundering in CyberCrime Act of 2024 Bill”.

The bill includes provisions to increase the Secret Service’s powers to investigate crimes directed toward financial institutions in the United States. The bill also seeks to increase the Secret Service’s prosecution powers in digital asset-related criminal activity. 

Senator Grassley pointed out that the bill encourages more threat assessments geared toward identifying and combating financial institution fraud and unlicensed money-transmitting enterprises. 

He added the new legislation would allow U.S. federal agencies to anticipate and avert financial crimes.

…This bipartisan and bicameral bill will allow for the US Secret Service to better investigate new forms of financial crime involving digital assets.”

Catherine Cortez Masto

Data revealed that illicit addresses laundered more than $22 billion worth of digital assets in 2023. However, market analysts stated that this was a significant decline from the $31.5 billion laundered in 2022.

Anti-money laundering and cybercrime regulations receive bipartisan support

The U.S. treasury revealed earlier this year that fiat remained the predominant means of money laundering as opposed to cryptocurrencies. However, the Securities and Exchange Commission has identified the risks presented by cryptocurrencies in recent years and has taken measures to address them.

The U.S. Secret Service launched an internal cyber investigative section in 2004 to combat cybercrime. In 2020, the agency announced a Cyber Fraud Task Force, a merger of the Financial Crimes Task Force and the Electronic Crimes Task Force, to enhance proficiency in cybercrime prevention.

Get out of crypto platforms now, I can't say it any plainer. Having worked as an attorney in the SEC Enforcement Division for almost 20 years (including 11 years as Chief of the SEC Office of Internet Enforcement), I believe that we now know for certain that crypto trading…

— John Reed Stark (@JohnReedStark) June 8, 2023

Masto reportedly filed a similar bill in September 2023 to ensure crypto businesses abide by US government anti-money laundering and counterterrorism guidelines.

The US House of Representatives also passed the Financial Technology Act last month, which aims to prevent illicit crypto-related transactions while protecting consumers within the United States.

Nine bipartisan legislators also introduced a similar bill to the Combating Money Laundering in CyberCrime Bill of 2024 in January. Analysts state the support of these regulations from both political parties highlights the necessity for new laws to address the new risks presented by the cryptocurrency market.