The United States House Financial Services Subcommittee on Digital Assets has addressed concerns regarding the illicit use of blockchain technology during its hearing on crypto crime titled “Crypto Crime in Context: Breaking Down the Illicit Activity in Digital Assets” on November 15.

Participants, including representatives from ConsenSys, Chainalysis, and law firm Hogan Lovells, emphasised the importance of regulation, international collaboration, and public-private cooperation to curb the misuse of digital assets.

During the discussion, a letter signed by 53 House members, including committee chair French Hill, has been presented to President Biden and Treasury Secretary Yellen. The letter specifically addressed concerns about Hamas and Palestinian Islamic Jihad's use of cryptocurrency for fundraising.

It underscored the need for accurate information about the extent of Hamas's digital fundraising compared to traditional sources, while also expressing apprehension about potentially misleading data from a previous Wall Street Journal (WSJ) article.

The WSJ article, which suggested Hamas's use of crypto for fundraising, faced scrutiny for inaccuracies, raising concerns about potential legislation that could undermine U.S. national security interests.

In response, the Blockchain Association sent an open letter to Hill and other committee members, calling for the importance of regulated growth in the compliant digital asset industry to address these issues and eliminate bad actors.