U.S. Representatives Zach Nunn (R-Iowa) and Jim Himes (D-Conn.) reintroduced a bill to help combat illicit finance and terrorist financing on digital asset platforms

The Financial Technology Protection Act (FTPA) introduced on Thursday would set up an interagency working group, also including crypto industry insiders, to scrutinize activity related to terrorism and digital assets.

U.S. Representatives Zach Nunn (R-Iowa) and Jim Himes (D-Conn.) have announced the reintroduction of a bill aimed at aiding in the fight against illicit finance and terrorist financing on digital asset platforms.

The Financial Technology Protection Act (FTPA) would establish an interagency working group, also encompassing crypto industry insiders, to supervise activity linked to terrorism and digital assets.

This bill, which had previously passed the House of Representatives in the last Congress but failed to advance in the Senate, aims to set up an interagency working group to examine activity related to terrorism and digital assets. It would also engage individuals from the crypto industry.

"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," said Rashan Colbert, Director of US Policy at Crypto Council for Innovation, in a statement expressing support for the legislation.

The proposed working group would bring together representatives from the Department of Justice, Treasury’s Financial Crimes Enforcement Network, Federal Bureau of Investigation, Department of State, the Internal Revenue Service, and others.

This bipartisan bill is among several focused on crypto that secured support in the House last year. Efforts to address illicit-finance concerns have consistently ranked among the top issues that lawmakers, particularly Democrats, have strived to resolve.

The new administration has signaled its receptiveness to and called for digital assets legislation, although more emphasis has been placed on stablecoin regulation and a comprehensive bill to define the framework for the U.S. crypto markets.