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 after the previous version passed the House of Representatives last year failed to make progress in the Senate before the end of the congressional session.

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.

An earlier version of the bill was cleared in a routine vote by the House in July.

"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," the Director of US Policy at Crypto Council for Innovation, Rashan Colbert said in a statement supporting the bill.

The proposed working group would include 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 was among several crypto initiatives that won House support last year, and efforts to address illicit-finance concerns have always been among the top issues that lawmakers — especially Democrats — have sought to enact. The new administration of President Donald Trump has embraced and called for digital assets legislation, but more notably for stablecoin regulation and a comprehensive bill to set the rules for structuring the U.S. crypto markets.

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