• U.S. lawmakers want the DOJ to investigate Binance and Tether over possible links to terrorism despite disputed reports.

• Both Republicans and Democrats support cracking down on crypto’s role in funding terrorism.

In a bipartisan effort, U.S. lawmakers have urged the Department of Justice (DOJ) to initiate an investigation into major cryptocurrency platforms, Binance and Tether, over concerns about their potential involvement in facilitating funding for terrorist organizations, specifically Hamas.

The call for this investigation comes from reports suggesting that Hamas used these platforms to finance attacks on Israel. Although blockchain data firm Elliptic has questioned the accuracy of these reports, lawmakers remain resolute in their demand for an inquiry.

Lawmakers Seek Answers

Sen. Cynthia Lummis (R-WY) and Rep. French Hill (R-AR) have issued a letter to the DOJ, emphasizing swift action. They have called upon the DOJ to reach a charging decision regarding Binance and to expedite investigations into the alleged illicit activities connected to Tether. While acknowledging that the funding claims in recent reports may not be entirely accurate, Sen. Lummis and Rep. Hill stress the importance of holding any bad actors accountable if found to be aiding illicit activities.

In their letter to the DOJ, Sen. Lummis and Rep. Hill have urged a thorough evaluation of the extent to which Binance and Tether may be providing material support and resources that violate applicable sanctions laws and the Bank Secrecy Act. The lawmakers assert that taking swift action against these platforms is crucial to cut off potential funding sources for terrorist activities directed at Israel.

Ongoing Investigations

According to reports from the Wall Street Journal and Bloomberg, the Department of Justice is actively pursuing investigations into Tether and Binance, though the sources remain unnamed. This ongoing scrutiny raises questions about the potential implications for these cryptocurrency giants.

Sen. Lummis, often referred to as the “Bitcoin Senator” due to her advocacy for cryptocurrency on Capitol Hill, is known for her pro-crypto stance. This call for an investigation underscores her commitment to maintaining a responsible and secure digital asset industry.

The concerns raised by Senators Lummis and Hill reflect the broader issue of cryptocurrencies’ role in national security. Hamas, like other terrorist organizations, has allegedly collected donations in cryptocurrencies such as Dogecoin and Bitcoin. While these claims have prompted bipartisan inquiries into the crypto industry, analysts have noted that crypto’s impact on the Israel-Palestine conflict may be overstated.

Bipartisan Support for Crypto Sanctions

Beyond Republican ranks, the push for crypto sanctions has garnered support from Senator Sherrod Brown, who chairs the Senate Banking Committee. Brown has stated that the committee will take measures to crack down on using cryptocurrencies for funding terrorism and evading sanctions. He contends that recent sanctions imposed by the Treasury do not go far enough and that additional efforts are necessary to track and freeze related assets on a global scale.

Both Sen. Lummis and Sen. Brown wield significant influence in shaping cryptocurrency policy. Their bipartisan efforts to strengthen enforcement signal a heightened focus on preventing illicit activities within the digital asset space, even as the role of cryptocurrencies in terrorism financing remains a subject of debate.

The outcome of these investigations will undoubtedly shape the future regulatory landscape for cryptocurrencies. Underscoring the need for the industry to prioritize compliance and transparency to ensure its legitimacy in the eyes of lawmakers and the public.