Washington D.C. – The Iranian regime’s role in financing terrorism took center stage at a Senate Banking Committee hearing on Tuesday. Deputy Secretary Adewale Adeyemo of the Treasury Department warned of the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) using cryptocurrency to funnel funds to Hamas and the Palestinian Islamic Jihad (PIJ). He emphasized the department’s efforts to disrupt these networks, leveraging authorities granted by Congress to target traditional financial systems used by illicit actors.
Deputy Secretary Adeyemo Highlights Challenges and Progress:
“Over the past year, we have seen the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) transfer cryptocurrency to Hamas and the Palestinian Islamic Jihad (PIJ) in Gaza,” Adeyemo said. “In addition, we have seen Hamas use virtual currencies to solicit small-dollar donations, and we have been able to take action against these networks. Our problem is that actors are increasingly finding ways to hide their identities and move resources using virtual currency.”
Chairman Brown Emphasizes Iranian Proxies’ Destabilizing Activities:
Committee Chair Sherrod Brown (D-OH) directly addressed Iran’s malign influence, highlighting their support. “Iran is financing terrorist proxies that wreak havoc all over the Middle East, from Hamas’s brutal October 7th attack on Israel, to the Houthi attacks on shipping in the Red Sea and Hezbollah’s menacing activity,” Brown stated. He underscored the need to sever the financial lifelines sustaining these Iranian-backed proxies.
Ranking Member Scott Criticizes Administration Approach and Champions His Legislation:
Ranking Member Tim Scott (R-SC) echoed the concerns, emphasizing the deadly consequences of Iranian funding for American service members. “I’ve often said that we, the United States, must leverage our international toolkit to stop bad actors, curb illicit activity, and protect American families,” Scott said. He criticized the administration’s approach to Iran, arguing that financial concessions empower the regime’s support for terrorism. Scott championed his legislation, the Revoke Iranian Funding Act, as a tool to cut off this funding stream.
“Which is why it was particularly profound and deeply troubling when three U.S. servicemembers were killed in January’s Iranian-backed terror attack… every dollar this administration gives to Iran is another dollar that will be used against our sons and daughters and puts them in harm’s way in the military,” Scott argued.
The hearing exposed a bipartisan agreement on the urgency of tackling Iran’s illicit finance networks. Both sides emphasized the need for robust measures and international cooperation to disrupt the flow of funds supporting terrorism and destabilizing activities in the Middle East. The discussion on cryptocurrency’s misuse by the IRGC-QF suggests a potential focus for further legislative or regulatory action aimed at crippling Iran’s ability to finance terror through these emerging financial channels.
