US Lawmakers

Justify crypto rewards and disclose payouts: US Lawmakers to State Departments. 

  • US Lawmakers proposed an amendment to the State Department Basic Authorities Act 1956.
  • The reform wants the lawmakers to be kept in the loop regarding crypto rewards and payouts. 
  • If passed, reform allows the federal government to keep an eye on illicit activities.

Technology can be used for both good and bad. Blockchain technology offers many features that, when correctly used, can revolutionize the world, while its ill use can be devastating. By Looking at the recent earth-shattering events in the crypto industry, lawmakers worldwide are trying to come up with ideas where both users and the market thrive.

Continuing this quest, In an amendment proposed by US Lawmakers, it is indicated that they want to be kept in the loop regarding payouts and crypto rewards. The amendment was proposed to the State Department Basic Authorities Act of 1956. 

The reform required the Department of State, the executive department under the federal government responsible for the country’s foreign relations and policy, to inform NDAA (National Defense Authorization Act) in 15 days about all the crypto rewards and payouts.

Each series of US federal laws, which specify the expenditure and budget of the US Department of Defense, is collectively called NDAA.

“Not later than 15 days before making a reward in a form that includes cryptocurrency, the secretary of state shall notify the Committee of Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate of such form for the rewards.”

 As the statements on the documents read. 

The State Department must submit a report to the Committee of Foreign Affairs of the House of Representatives, along with the Committee of Foreign Relations of the Senate, within 180 days of execution of the act. This has to be done apart from the information period of 15 days. 

Compared to other “rewards paid out in the United States dollars or other forms of money or nonmonetary items.” The submitted report must include evidence suggesting that these crypto rewards will encourage more whistleblowers to come forward. 

The report shall also explore if using cryptocurrencies allows bad actors the ability to hard-to-trace funds. Which then can be utilized to carry out 16 illicit or criminal purposes.

The proposed reform shall provide more transparency into the expenditures for the cryptocurrency rewards to the State Department. One of the major arguments against cryptocurrencies made by these policymakers is their use in illicit activities. If the bill is passed, it should be able to provide insights to the federal government. Thus allowing them to monitor and curb these activities. 

The first-ever comprehensive framework for crypto was published by the Biden government in September, following an executive order from the president. The framework is a sum of nine different reports on crypto combined. And offers six principal directions for instilling crypto regulations in the US.



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