H.R.2384 - Financial Technology Protection Act of 2025 (119th Congress)
Summary
H.R.2384, the Financial Technology Protection Act of 2025, aims to combat terrorism and illicit financing by establishing an Independent Financial Technology Working Group. This group will research the use of digital assets and emerging technologies in illicit activities and develop legislative and regulatory proposals to counter these threats. The bill also mandates a report and strategy to prevent rogue and foreign actors from evading sanctions using digital assets.
Expected Effects
The Act will likely lead to increased scrutiny and regulation of the financial technology sector, particularly concerning digital assets. This could result in enhanced anti-money laundering and counter-terrorism financing measures. The creation of the working group will foster collaboration between government agencies, financial institutions, and technology companies.
Potential Benefits
- Enhanced national security by countering terrorist financing.
- Improved anti-money laundering efforts.
- Increased collaboration between government and the private sector.
- Development of expertise in emerging financial technologies.
- Greater transparency in digital asset transactions.
Potential Disadvantages
- Potential for increased regulatory burden on financial technology companies.
- Possible limitations on individual privacy due to increased surveillance.
- Risk of stifling innovation in the financial technology sector.
- Costs associated with establishing and operating the working group.
- Potential for biased recommendations if certain stakeholders dominate the working group.
Constitutional Alignment
The bill aligns with the constitutional mandate to provide for the common defense and promote the general welfare. Congress has the power to regulate commerce (Article I, Section 8) and to enact laws necessary and proper for carrying out its enumerated powers. The focus on combating terrorism and illicit financing supports national security, a core function of the federal government. However, the potential impact on individual privacy needs to be carefully considered in light of the Fourth Amendment.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).