President Trump’s $ 4.8 trillion budget proposal has an interesting take on the crypto industry. According to the proposal, the American secret services would receive up to $ 2.4 billion for police activities in the cryptography sector. The objective is to make the secret service police carry out illegal criminal activity involving cryptography and to try to put an end to it.
What he says
The budget proposal calls for the Secret Service to be the federal agency responsible for overseeing the use of crypto for terrorist financing and money laundering. He says that in recent decades, technological advances such as crypto, coupled with the interconnectivity of the financial world, have facilitated the existence of complex criminal organizations. The result has been the deepening of the links between electronic and financial crimes with the financing of terrorism and rogue states. He suggests that the US Secret Service be returned to the Treasury Department to improve the efficiency of financial crime investigations to ensure that the United States can respond to emerging threats.
For more than a decade, the secret services have been under the responsibility of internal security, but they could now be transferred to the Treasury Department if this proposal were approved. Secretary of the Treasury Steve Mnuchin recently commented on the proposal. He noted that the budget would help strengthen the national security of the United States by increasing funding for the Office of Terrorism and Financial Intelligence, which is part of the Treasury Department. This office is responsible for the fight against terrorism worldwide. In addition, the Secretary of the Treasury said he would improve the Financial Crimes Enforcement Network’s ability to protect Americans from cybercrime. He added that the return of the Secret Service to the Treasury Department would be crucial in helping the United States to combat threats from the future.
Streamlined regulation for the cryptography industry
The return of the secret services to the Department of the Treasury could help create a trifecta of regulations and enforcement within the same department. Currently, efforts to combat cryptographic crimes are being pursued by the Financial Crimes Enforcement Network and the Office of Foreign Assets Control (OFAC). They have been closely monitoring crypto crimes for the past few years.
In an interview with Law360, the former litigation lawyer for Mr. J. Laurel Rimon noted that this decision signified a consolidation of efforts to control the cryptography sector. According to Rimon, this appears to be part of an effort by the Trump administration to prevent the financing of terrorism and money laundering using cryptography.
This budget proposal comes amid an effort by U.S. lawmakers to create regulations to streamline the way federal agencies control the crypto sector. This regulation establishes clear rules on how agencies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) would regulate the crypto sector.
Trump is not a fan of crypto
In the past, the President has tweeted his disgust for crypto. In July of last year, it tweeted that he was not a Bitcoin fan. He noted that the cryptocurrencies were not real money and that they inferred that their value was “based on thin air”. He also took the opportunity to discuss the Libra of Facebook. Trump has said that if they want to launch Libra, they should be regulated according to the same strict rules that govern the banking sector.
Although the United States is generally opposed to cryptography, it should be noted that the total market capitalization of the cryptography industry represents less than one percent of the entire financial sector. On top of that, most of the crimes in the world still involve fiat money, and criminal activities rested entirely on the fiat before the invention of crypto. However, it is important to ensure that criminals do not find refuge in the crypto industry, which could only lead to further opposition from regulators.
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