US cryptos in Ukraine: the US Congress wants to know what its donations were used for

Crypto donations that do not circumvent regulation? – Although Russia too uses digital assets to its advantagecryptocurrency donations help Ukraine. Thus, the American Congress wants the State Department notify crypto payments when helping Ukraine.

State must notify crypto payments to Ukraine and others

A amendment of the United States Congress demands that the State Department notify crypto payments when he help Ukraine. The Secretary of State will therefore have to submit reports to the congressional committees. In these reports, the State Department should explain why it decided to issue cryptocurrency rewards. Indeed, the Congress worries on the avoidance of sanctions.

The Secretary of State, as part of an award program for the fight against terrorism, sometimes pays in cryptocurrencies. It does so for information preventing international terrorism. This program is called “Rewards for Justice”. However, recently the Russia and the Belarus have been sanctioned for circumventing sanctions via cryptocurrencies.

“The Secretary of State must notify the relevant congressional committees no later than 15 days before issuing a cryptocurrency reward. »

Bill HR 7338

Congress recalls that cryptocurrencies are used as “an efficient cross-border payment tool to send millions to the Ukrainian government, Ukrainian military and Ukrainian refugees with limited access to financial services”. This is in line with the discourse set out in the letter from activists sent to congress.

US Congress Steps Up Crypto Surveillance

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An amendment on crypto-payments in the direction of travel

The Secretary of State will have to explain ” why and how “ he decided to pay out rewards in cryptocurrencies. “To what extent paying in cryptocurrency favors the donation of information as opposed to the usual reward in dollars? » will be the question to be answered. The bill will force the State Department to compile a list of all crypto payments previously made.

More surprising: the Secretary of State will have to present an analysis. This to analyse demonstrate how rewards issued in cryptocurrencies can compromise the dollar as the world’s reserve currency.

This is in line with the union of American federal agencies, consequence of Joe Biden’s decree on cryptocurrencies. Following this decree, the agencies united to articulate a clear framework around the development of cryptocurrencies. They recommend the creation of a federal framework for payment providers non-bank. In addition, they encourage the adoption of instant payment systems.

Once again, this event testifies to the will of the United States to move cautiously in the cryptocurrency sector. This cautious advance aims to protect the supremacy of the US dollar. Therefore, executives are becoming more and more precise on the other side of the Atlantic.

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John R. Zepeda

I have extensive experience working as a content writer in the areas of cryptocurrencies and finance, where I create interesting pieces that both inform and engage their audiences.

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