NJ Counterterrorism Chief Warns US Congress: Crypto Is Funding 'Domestic Extremism'

New Jersey Office of Homeland Security and Preparedness Director Jared Maples predicted Wednesday that domestic terrorists will increasingly turn to bitcoin.

Speaking during a U.S. House Financial Services Committee monetary policy sub-committee hearing in Washington, Maples said domestic terrorists find value in bitcoin and other cryptocurrencies' security and masked movements.

Three of the five witnesses - Maples, Congressional Research Service finance expert Rena Miller and Anti-Defamation League Senior Vice President George Selim - addressed crypto's role in their written and oral testimonies.

Rep. Brad Sherman, a longtime crypto skeptic, pressed Maples for instances of domestic use, saying: "If it works for Hamas, it will work for the Nazis, too."

Maples responded: "We do see evidence that domestic terror groups are realizing that foreign terror groups like Hamas have been operating using bitcoin due to the encryption [and] due to the difficulties in tracking those transactions."

Maples told the committee in his written testimony that one such donation came immediately after the Charlottesville, Virginia, attack in 2017: $60,000 in bitcoin to Daily Stormer publisher Andrew Anglin.

"We cannot discount the future use of cryptocurrencies as a means to fund acts of domestic extremism within New Jersey and across the United States," Maples wrote in his prepared remarks.

Rep. Juan Vargas asked Maples how governments can get ahead of the crypto trend.

"We have to put stringent oversight in place," Maples said, specifying that this would include ensuring the right people are aware of the risks around crypto as well as monitoring crypto movements themselves.

Maples said the government must "Remain mindful" of constitutional rights.