H.R. 5877: Combatting Money Laundering in Cyber Crime Act of 2025

This bill, known as the Combatting Money Laundering in Cyber Crime Act of 2025, aims to enhance the capabilities of the United States Secret Service in investigating various crimes connected to digital asset transactions and cybercrime. Here is a summary of the main provisions of the bill:

Expanded Investigative Authority

The bill proposes to expand the investigative power of the United States Secret Service. Specifically, it aims to allow the Secret Service to investigate additional types of crimes related to digital assets, including:

• Money laundering
• Structured transactions (which involve a series of smaller transactions to avoid detection)
• Fraud against financial institutions

This expansion will involve amendments to existing law to formally include these new categories of crimes under the Secret Service's jurisdiction.

Changes to Investigative Timelines

The bill proposes changes to timelines associated with investigations, particularly relating to the financial crimes enforcement and reporting. Specifically, it seeks to double the timeframe from 5 to 10 years for certain types of investigations and requirements related to digital assets.

International Financial Institutions

Another aspect of the bill includes amendments to existing sanctions enforcement laws, specifically those pertaining to international financial institutions. The bill changes a provision that currently states sanctions can be applied for 6 years to establish a new period of 10 years. This extension may be aimed at enhancing the effectiveness of sanctions compliance investigations against financial entities involved in transnational cyber crimes.

Government Accountability Office Report

The bill mandates that the Government Accountability Office (GAO) conduct a study on the implementation of previously established anti-money laundering measures, specifically under the Anti-Money Laundering Act of 2020. The GAO is required to report back to Congress within one year of the bill's enactment. The study will focus on assessing law enforcement's ability to identify and reduce money laundering activities related to cyber crimes.

Overall Goals

Overall, the Combatting Money Laundering in Cyber Crime Act of 2025 aims to strengthen the framework for investigating financial crimes involving digital assets. The proposed changes are intended to provide law enforcement with additional tools and extended responsibilities to address the growing challenges posed by cyber criminals operating in these spaces.

Relevant Companies

• COIN (Coinbase Global, Inc.): As a significant player in the cryptocurrency exchange market, Coinbase could face increased scrutiny and regulatory oversight under this legislation affecting its operations and compliance obligations.
• BTCM (Bitcoin Mining Companies): Companies involved in Bitcoin mining might experience impacts related to regulatory changes in financial reporting and compliance due to the bill's focus on money laundering and fraud prevention in digital assets.