Terrorist Financing: Hamas and Cryptocurrency Fundraising

Policymakers, including some Members of Congress, are scrutinizing U.S. efforts to counter the role that cryptocurrency fundraising plays in the financing of terrorism. A key question for Congress is whether further regulation of the virtual asset sector and/or the introduction of additional countermeasures are necessary to prevent terrorist financing.

The issue has attracted congressional attention in the wake of the October 7, 2023, attacks on Israel perpetrated by Hamas—an Iran-supported Palestinian group identified by the United States and some others as a terrorist organization subject to sanctions. U.S. government reports indicate that Hamas has sought cryptocurrency through donation drives since at least 2019.