January 25, 2023

Lawmakers in the US have now suggested that the State Department release information related to crypto rewards and payouts. The State Department is the arm of the federal government responsible for foreign policy.

U.S. lawmakers want this proposal to be amended in the State Department Basic Authorities Act of 1956. Under the proposed amendment under the National Defense Authorization Act (NDAA), the Department of State is required to provide information about the crypto payouts and rewards within a time frame of 15 days from the date of manufacture.

The NDAA is the name given to a group of United States federal laws that establish the annual budget and expenditures for the United States Department of Defense. The state department must provide the information to the House Foreign Affairs Committee and the Senate Foreign Relations Committee.

Additional Requirements

The official document, released on Wednesday, read:

No later than 15 days before creating a reward in a form containing cryptocurrency, the Secretary of State notifies the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate of such a form for the rewards.

In addition, subject to the 15-day information deadline, the State Department is mandated to submit a report to the House of Representatives Committee on Foreign Affairs and the Committee on Foreign Relations within a period of 180 days after the enactment of the law of the Senate. to trade. The state department would also justify the use of crypto as a form of reward in that report.

Further, this report should include evidence that will suggest that crypto rewards and payouts will prompt more whistleblowers to come forward compared to the other “rewards paid in US dollars or other forms of money or non-monetary items.”

Transparency regarding crypto payouts

The motive behind such a proposal is to find out if other whistleblowers will come forward and to ensure they are protected from bad actors. The report stated that it would also examine whether the use of cryptocurrency will provide bad actors with further “difficult-to-trace funds that could be used for 16 criminal or illicit purposes.”

The change will help provide more transparency into the state department’s spending on cryptocurrency rewards and payouts. Once passed, this policy may provide insight into the federal government’s views on the use of cryptocurrency for illegal and corrupt purposes, as this is a long-standing argument used by policymakers against cryptocurrency.

In particular, this law, which is supposed to allow for defense spending, has yet to be voted on by the legislature and signed by the president to become law. The NDAA, on the other hand, is mandatory legislation, and politicians have often used it to push for a wide variety of policies.

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