McCaul requests details on whether Russia uses digital assets to avoid sanctions

U.S. Rep. Michael McCaul (R-TX), ranking member of the U.S. House Foreign Affairs Committee, wants to know if Russia is using digital assets to circumvent sanctions imposed by the United States.

“I am concerned with any extent Russia could use cryptocurrencies or other digital assets, such as stablecoins, CBDCs, and NFTs, to avoid sanctions,” wrote Rep. McCaul in a March 25 letter sent to National Intelligence Director Avril Haines. “It is important to understand any impact that digital assets have on U.S. sanctions and address challenges to their impact in a forward-leaning manner.”

The congressman wrote that he agrees with Haines’ assessment — made during a March 8 U.S. House Permanent Select Committee on Intelligence hearing — that cryptocurrencies are a concern in relation to Russia trying to avoid sanctions, but questioned Haines’ assessment that it would be “challenging” for Russia to completely undermine sanctions through the use of cryptocurrencies.

“All incidences of sanctions evasion by malign actors are of concern,” wrote Rep. McCaul.

As such, the lawmaker requested that Haines provide details of his assessment on Russia’s ability to evade sanctions using digital assets, specifically whether the director has seen any indications thus far that Russia is using digital assets to evade sanctions, and to what extent.

Rep. McCaul also asked for an update on President Joe Biden’s March 9 Executive Order 14067, which directed Haines’ office to work with the U.S. Treasury Department on developing a report that addresses the foreign policy and national security implications related to digital assets.

“I look forward to working alongside your office to strengthen U.S. foreign policy tools and ensure that Russia and other malign foreign actors cannot evade sanctions through the use of digital assets,” Rep. McCaul wrote.