January 29, 2019 - Issue: Vol. 165, No. 18 — Daily Edition116th Congress (2019 - 2020) - 1st Session

[Pages H1259-H1260]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 HOMELAND SECURITY ASSESSMENT OF TERRORISTS' USE OF VIRTUAL CURRENCIES 
                                  ACT

  Miss RICE of New York. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 428) to direct the Under Secretary of Homeland 
Security for Intelligence and Analysis to develop and disseminate a 
threat assessment regarding terrorist use of virtual currency.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                                H.R. 428

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Homeland Security Assessment 
     of Terrorists' Use of Virtual Currencies Act''.

     SEC. 2. THREAT ASSESSMENT ON TERRORIST USE OF VIRTUAL 
                   CURRENCY.

       (a) In General.--Not later than 120 days after the date of 
     the enactment of this Act, the Under Secretary of Homeland 
     Security for Intelligence and Analysis, as authorized by 
     section 201(b)(1) of the Homeland Security Act of 2002 (6 
     U.S.C. 121(b)(1)), shall, in coordination with appropriate 
     Federal partners, develop and disseminate a threat assessment 
     regarding the actual and potential threat posed by 
     individuals using virtual currency to carry out activities in 
     furtherance of an act of terrorism, including the provision 
     of material support or resources to a foreign terrorist 
     organization. Consistent with the protection of classified 
     and confidential unclassified information, the Under 
     Secretary shall share the threat assessment developed under 
     this section with State, local, and tribal law enforcement 
     officials, including officials who operate within State, 
     local, and regional fusion centers through the Department of 
     Homeland Security State, Local, and Regional Fusion Center 
     Initiative established in section 210A of the Homeland 
     Security Act of 2002 (6 U.S.C. 124h).
       (b) Definitions.--In this section:
       (1) The term ``foreign terrorist organization'' means an 
     organization designated as a foreign terrorist organization 
     under section 219 of the Immigration and Nationality Act (8 
     U.S.C. 1189).
       (2) The term ``virtual currency'' means a digital 
     representation of value that functions as a medium of 
     exchange, a unit of account, or a store of value.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
New York (Miss Rice) and the gentleman from Louisiana (Mr. Higgins) 
each will control 20 minutes.
  The Chair recognizes the gentlewoman from New York.


                             General Leave

  Miss RICE of New York. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days to revise and extend their remarks 
and to include extraneous material on this measure.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from New York?
  There was no objection.
  Miss RICE of New York. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise in support of H.R. 428, the Homeland Security 
Assessment of Terrorists' Use of Virtual Currencies Act.
  In the 17 years since the deadliest terrorist attack in American 
history, the United States has led the global fight against terrorism, 
thwarting plots and preventing attacks on American soil, identifying 
and disrupting terrorist networks around the world, and hunting down 
terrorists wherever they may hide.
  However, the threat of terrorism is not the same as it was on 
September 11, 2001. It is a threat that constantly evolves, and we need 
to evolve with it. We need to evolve ahead of it.
  Today, we have to acknowledge that the front lines of the war on 
terror are shifting increasingly away from individual countries and 
into cyberspace. This new front line poses an especially dangerous and 
nebulous threat when it comes to terrorist financing.
  As such, the Homeland Security Assessment of Terrorists' Use of 
Virtual Currencies Act speaks to a timely and pressing concern. Over 
the past several years, a number of terrorist organizations have turned 
to virtual currencies to support themselves and fund their operations.
  For example, in December of 2017, a woman in New York was arrested 
and pled guilty after she obtained $62,000 in bitcoin and other virtual 
currencies to send to ISIL. Using those virtual funds, she was able to 
send the money via shell entities in Pakistan, China, and Turkey that 
were fronts for ISIL.
  In early 2017, Indonesian authorities reported that a Syria-based 
Indonesian

[[Page H1260]]

with ties to ISIL used bitcoin and other virtual currencies to fund 
attacks in Indonesia.
  The same things that make virtual currencies appealing to everyday 
consumers, speed and convenience, make these currencies appealing to 
those who want to finance illegal activities. Many forms of virtual 
currencies also offer their users anonymity, making them particularly 
attractive to those seeking to circumvent American law enforcement and 
financial institutions.
  In order to effectively confront this threat, we need to fully 
understand it. We need a comprehensive assessment of how virtual 
currencies might be abused for illegal and nefarious ends.
  My bill would require DHS to conduct such an assessment and share its 
findings with law enforcement officers who are on the front lines of 
the war on terror.
  Indeed, this bill will help provide law enforcement officials at all 
levels with the 21st century solutions, information, and resources they 
need to counter this emerging threat.
  Mr. Speaker, I urge my House colleagues to support this bill, and I 
reserve the balance of my time.
  Mr. HIGGINS of Louisiana. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, I thank my friend and colleague, Congresswoman Rice from 
New York, for introducing this bill.
  Over the past 12 months, there has been growing concern by 
administration officials, as well as security and financial experts, 
about potential threats associated with cryptocurrencies.
  In July 2018, a Department of Justice task force reported noted 
criminals are using virtual currencies to collect, hide, and launder 
funds, as well as purchase illegal goods and services. Both the 
Treasury Department and the Internal Revenue Service have ongoing 
efforts to review registered digital currency providers and identify 
illicit use.
  The legislation we are considering today, sponsored by the 
gentlewoman from New York (Miss Rice), adds to this effort by directing 
the Department of Homeland Security to develop and disseminate a threat 
assessment of threat posed by individuals using virtual currencies to 
carry out activities in furtherance of terrorism, including the 
provision of material support or resources to a foreign terrorist 
organization.
  The bill also requires DHS to share the threat assessment with State 
and local law enforcement.
  As the threat of terrorism evolves, so do the methods to finance and 
support the actors who plot to attack the United States. The Federal 
Government must evolve as well to meet these novel and technologically 
based challenges.
  This bill positions the Department to detect the new, digital-based 
methods in terrorist financing and support that have already occurred 
and to prepare for those that are sure and soon to follow.
  The potential of terrorist organizations to use virtual currencies to 
carry out an attack, or a smuggling network to launder illicit proceeds 
through cryptocurrency markets, should be a major concern to the 
Department of Homeland Security. Requiring the Department to conduct a 
threat assessment is appropriate and timely.

  Mr. Speaker, I thank Congresswoman Rice for bringing this bill 
forward, and I urge a ``yes'' vote.
  Mr. Speaker, I yield back the balance of my time.
  Miss RICE of New York. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, H.R. 428 is an important piece of legislation that was 
approved by a voice vote last Congress. This bill will help DHS 
effectively address terrorists' actual and potential use of virtual 
currencies.
  Mr. Speaker, I encourage my colleagues in the Freedom Caucus, who 
care so much about national security and domestic security, to put 
their money where their mouths are, to put political pettiness aside, 
let these votes go through as they are meant to, because these are 
bipartisan bills, DHS bills that are supported broadly by Members of 
this House. Let's get on with this, since this is an issue that we all 
care about.
  Mr. Speaker, I encourage my colleagues to support this legislation, 
H.R. 428, and I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from New York (Miss Rice) that the House suspend the rules 
and pass the bill, H.R. 428.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. BIGGS. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this motion will be postponed.

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