US lawmakers have proposed a bill to regulate crypto rewards. The State Department will have to report on payments it makes in crypto and their effects, according to a draft of the NDAA.
The United States lawmakers have proposed an amendment to the State Department Basic Authorities Act of 1956 that includes information on crypto rewards and payouts. The proposed amendment under the National Defense Authorization Act (NDAA) requires the Department of State, the executive branch of the U.S. federal government in charge of foreign affairs and relations, to report any cryptocurrency payouts or rewards within 15 days of making them.
In addition, within six months of the act being enacted, the department will deliver a report to the same committees regarding the usage of cryptocurrency for awards. The MPs want to know if cryptocurrency rewards would motivate informants to come forward or if they will fall into the hands of criminals.
Technically, for the Act to take effect, the legislature still needs to approve it and the President still needs to sign it into law. Politicians frequently utilize the NDAA to advance a variety of causes, though, as it is a piece of legislation that must be passed.
Striving Towards Crypto Regulation and Transparency
The said report should also examine whether bitcoin use may provide criminals access to more hard-to-trace assets that could be used for illegal or unlawful reasons. The suggested amendment may provide additional information about how much the State Department spends on bitcoin prizes. Once adopted, the regulation may also provide light on how the federal government feels about the use of cryptocurrencies for illegal purposes, a common justification for officials to oppose them.
Following Biden’s executive order in March, the Biden administration produced the first-ever complete framework for cryptocurrency in September of this year. The framework provided six key directions for regulating cryptocurrencies in the United States. The framework is the culmination of nine distinct reports on cryptocurrencies throughout the years.