Key Takeaways
- The Financial Technology Protection Act was reintroduced after passing the House in 2024.
- The bill would create an interagency group with government and Bitcoin industry members.
- The focus is on stopping terrorism financing and illicit activity involving digital assets.
On Thursday, Representatives Zach Nunn (R-Iowa) and Jim Himes (D-Conn.) reintroduced the Financial Technology Protection Act (FTPA), a bipartisan effort to combat illicit finance and terrorism funding through digital assets.
Legislative history
The bill originally passed the U.S. House in July 2024 but failed to advance in the Senate before the congressional session ended.
The reintroduced legislation proposes the creation of an interagency working group comprising officials from the Department of Justice, the Financial Crimes Enforcement Network, the FBI, the IRS, the State Department, and others.
Collaboration with the private sector
Importantly, the working group would also include analysts and representatives from the Bitcoin industry to ensure collaboration with the private sector.
Mandate and objectives
The group’s mandate would be to study and respond to illegal activity involving digital assets, especially in the context of terrorism financing.
According to supporters, this initiative aims to strengthen national security while supporting innovation.
Support from industry leaders
Rashan Colbert, Director of U.S. Policy at the Crypto Council for Innovation, backed the bill, stating:
Digital assets are an increasingly integral part of the global financial system, and it’s essential that the United States takes a thoughtful approach to security and innovation to maintain its leadership position.
Broader legislative context
The FTPA is part of a broader push under the Trump administration for digital asset legislation.
While the administration has focused more heavily on stablecoin rules and broader market structure, illicit finance remains a bipartisan concern with momentum on Capitol Hill.
