U.S. Deputy Treasury Secretary Adewale Adeyemo urges Congress for expanded authority to tackle the misuse of cryptocurrencies by terrorists and hostile nations.

Adeyemo proposes three key reforms in a Senate hearing to enhance the government's ability to protect against illicit financial activities involving digital assets.

The Treasury's request includes imposing secondary sanctions on foreign crypto providers, strengthening regulations, and mitigating risks from international crypto platforms.

Bipartisan discussions are underway on how to address the evasion of sanctions and the regulation of cryptocurrencies, with a focus on maintaining a balance between innovation and security.

Senate Banking Committee members support the need for crypto platforms to meet regulatory standards and prevent financial transaction abuse, while continuing collaboration with the crypto industry.

Concerns are raised about countries like Iran using blockchain technology, prompting calls for extending financial institution regulations to the crypto sector.