Financial Technology Protection Act of 2023

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2969) to establish an Independent Financial Technology Working Group to Combat Terrorism and Illicit Financing, and for other purposes, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on the bill.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise today in strong support of the Financial Technology Protection Act of 2023. Blockchain technology and digital assets are here to stay, and we need an environment in which they can grow in the United States without being exploited by our adversaries.

The transparent and traceable nature of this technology improves law enforcement's abilities to combat cybercrime and to recover funds fueling our enemies today.

These insights have led to massive forfeitures and seizures of illicit funds and high-profile prosecutions that help every American.

Last year the U.S. Government utilized this technology to recover over $30 million in stolen funds from the Lazarus Group, a North Korean hacking entity. In the same year, the Israeli Government and their authorities used blockchain to recover roughly $1.7 million from the Hezbollah terrorist group financed by Iran.

Mr. Speaker, as a former national counterintelligence officer for cyber, I have also seen firsthand how this technology can be exploited by terrorist groups and our adversaries for illicit money and laundering, a direct threat to U.S. national security. That is why I introduced the Financial Technology Protection Act, along with my colleague on the other side of the aisle, Representative Himes from Connecticut.

This bipartisan bill establishes a working group of key Federal Government departments, intelligence agencies, private organizations and their innovation, as well as private-sector experts to combat terrorism and illicit financing on digital platforms.

The working group will consist of experts to develop legislative and regulatory proposals to tackle anti-money laundering and address security risks, as well as prevent illicit financing activity right here in the United States.

These efforts are critical in protecting our financial systems from bad actors and our adversaries alike, including those nation-states like the People's Republic of China and the Russian Federation.

Passing this legislation, I believe, is crucial in strengthening America's national security, protecting our digital assets, and ensuring the next generation of financial and internet technology is built right here in America. This is a commonsense piece of legislation, and it passed out of the Financial Services Committee unanimously. I would also like to thank our colleagues across the rotunda, including Senator Budd for his leadership on this legislation.

Mr. Speaker, I urge my colleagues to support my bipartisan Financial Technology Protection Act for the sake of America and our innovative future, and I reserve the balance of my time.

Mr. Speaker, this has been a great work of bipartisanship that impacts not only the future of our country but your and my futures, the future of America, and the future of all the young children today watching this take place.

Mr. Speaker, I yield 2 minutes to the gentlewoman from Texas (Ms. De La Cruz), my very good friend.

Mr. Speaker, I thank the gentlewoman from Texas (Ms. De La Cruz) not only for her incredible work in Texas but for what she is doing on the Financial Services Committee to really help protect our Nation.

Mr. Speaker, if the gentleman from North Carolina (Mr. Nickel) has no additional speakers, I am prepared to close, and I reserve the balance of my time.

Mr. Speaker, I yield myself the balance of my time to close.

Mr. Speaker, I thank all of my colleagues on the House Committee on Financial Services. This has truly been a team effort.

Mr. Speaker, I remind the entire body, as well as my fellow Americans, that blockchain technology, digital assets, and other financial technology products are here to stay, and they will be an intricate part of our future. Together, we need an environment where they can grow safely, right here in America. We must move them smartly, innovatively, and made in the U.S.

At the same time, we must stay one step ahead of bad actors, terrorists, and others who want to exploit our financial system to engage in illicit activity or, worse, terrorism or state-sponsored threats.

Mr. Speaker, this bill moves us in the right direction, and so I urge my colleagues to support H.R. 2969.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise in support of H.R. 2969, the Financial Technology Protection Act of 2023 sponsored by my colleague Representative Nunn from the great State of Iowa and Representative Himes.

As its sponsors recognize, the benefits offered by emerging financial technologies, including digital assets, including peer-to-peer technologies and blockchain-based exchanges, can be a boon to consumers and industry, providing speedy transactions, anonymity, and lower costs. It is important that we encourage this innovation here in the United States.

These same traits, however, can be abused by bad actors for laundering money and obscuring ownership and source of funds allowing traffickers, terrorists, kleptocrats, and other bad actors to move and hide their operational assets and the proceeds of their crimes.

This bill establishes a public-private independent financial technology working group to combat terrorism and illicit financing to make related recommendations to Congress for new financial crime legislation and regulations.

All Members of this body should support efforts to detect and defer illicit finance while encouraging responsible innovation that will propel our country and our economy into the future.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I have no further speakers, and I yield myself the balance of my time to close.

Mr. Speaker, I again urge my colleagues to support this bill, and I yield back the balance of my time.

Mr. Speaker, I thank the gentleman for yielding.

Mr. Speaker, we live in an increasingly interconnected world with new and emerging technologies changing how we conduct business with one another and exchange currency.

Blockchain technology and digital assets are a key component of this. This new technology is here to stay and needs an environment in which it can continue to grow and thrive in the United States.

At the same time, Congress needs to ensure that law enforcement has the tools they need to combat new threats arising from this technology. The Financial Technology Protection Act will help accomplish that goal.

H.R. 2969 establishes an independent financial technology working group that is focused on combating illicit finance using financial technologies, including digital assets.

The working group established by this act will conduct research on illicit finance and will use that knowledge to develop legislative and regulatory proposals to counter money laundering, terrorist financing, and other threats to the U.S. so that our families are more secure and money is cut off from illicit enterprises.

This bill is good governance. It is bipartisan. It is a cooperative effort to address real problems in our country, and I am happy to support it and vote in favor of it on the House floor.

Mr. Speaker, I urge my colleagues to support H.R. 2969.