Following the rise of crypto adoption in the United States, lawmakers are desperately looking for ways to regulate cryptocurrencies. Hence, the Ransom Disclosure Act introduced by Senator Elizabeth Warren and Representative Deborah Ross requires ransomware attack victims to disclose information about ransom payments to the Department of Homeland Security (DHS).
The purpose of the bill, which was introduced on Tuesday, is to collect critical data on fiat and crypto payments so as to protect investors from cybercrimes.
Warren’s legislation is seeking to reveal “a fuller picture” about ransomware attacks in an ongoing effort to eradicate illegal financial activities.
My bill with Congresswoman Ross would set disclosure requirements when ransoms are paid and allow us to learn how much money cybercriminals are siphoning from American entities to finance criminal enterprises — and help us go after them.
The bill will also offer support to research on the link between cryptocurrencies and their role in ransomware attacks. This initiative will be led by the Secretary of Homeland Security. All information accrued from the study will be utilized in inferring ideas for improving the nation’s cybersecurity.
Rep. Ross insinuated that US investors are not yet required to report ransomware payments, which is very crucial to countering ransomware attacks, according to her. She added that the new legislation “will implement important reporting requirements, including the amount of ransom demanded and paid, and the type of currency used.”
Part of the requirements of the bill is that victims within the US must disclose ransoms payments within 48 hours through a website to be set up by the DHS.
Meanwhile, a report shared by the U.S. Securities and Exchange Commission urges Congress to “clarify the status of digital assets to make clear when it is a security,” as federal authorities continue to introduce bills to regulate the crypto market.
Moreover, a recent bill from Representative Patrick McHenry suggested an amendment to the Securities Act of 1933 that allows projects to offer cryptocurrency tokens without registering with authorities for up to three years.