House Financial Services Committee Passes Financial Technology Protection Act

Yesterday, the U.S. House of Representatives Financial Services Committee approved seven pieces of legislation, including the Financial Technology Protection Act (H.R. 5036). This legislation, introduced by Rep. Ted Budd (R-N.C.), passed the Committee on a bipartisan vote of 57-0.

H.R. 5036 would establish an Independent Financial Technology Task Force that would provide rewards for information leading to convictions related to terrorist use of digital currencies and establish a FinTech Leadership in Innovation Program to encourage the development of tools and programs to combat terrorist and illicit use of digital currencies.

In a statement after the legislation cleared committee, Rep. Ted Budd said “as new financial products and technologies, including digital currency, continue to change and move, we need to make sure those currencies are not being used by illicit actors and terrorist organizations to escape a money trail. My bill adopts a number of tools to achieve this goal.”

The newly-created Task Force would include The Secretary of the Treasury, who will chair the task force, in addition to the U.S. Attorney General, Director of the CIA, Director of FINCEN, Director of the Secret Service, Director of the FBI, and six other appointed individuals representing the private sector, including the banking industry, nonprofit groups, and think tanks, with at least one of those individuals having experience in the Fintech industry.

Rep. Stephen Lynch (D-Mass.) cosponsored the legislation.