Republican Lawmakers Call for Investigation into Binance and Tether for Terrorism Funding
Republican lawmakers, Sen. Cynthia Lummis and Rep. French Hill, have written a letter to the U.S. Department of Justice urging them to investigate the extent to which Binance and Tether may be supporting terrorism funding, particularly in light of recent attacks on Israel. They specifically asked Attorney General Merrick Garland to reach a charging decision on Binance and conclude investigations into Tether’s illicit activities.
In Regulators’ Crosshairs
Both Binance and Tether have faced regulatory scrutiny over the past year. The Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and its CEO for alleged violations of federal laws, citing lax compliance. Tether was also fined by the CFTC for its backing of stablecoin USDT.
Tether recently froze 32 addresses associated with Hamas and Russian-linked entities, but lawmakers argue that the company is knowingly facilitating violations of sanctions laws and the Bank Secrecy Act. Despite this, Lummis and Hill acknowledge that many crypto intermediaries aim to comply with regulations to promote responsible innovation.
Hot Take: Republican Lawmakers Push for Accountability in Crypto Industry
Republican lawmakers are calling for a thorough investigation into Binance and Tether’s potential involvement in terrorism funding. With recent attacks on Israel, they are urging the Department of Justice to take swift action to cut off funding sources to these terrorists. Both Binance and Tether have faced regulatory challenges in the past, with allegations of violating federal laws and lax compliance practices. The lawmakers emphasize the need for responsible innovation within the crypto industry while holding accountable those who facilitate illicit activities. It remains to be seen how the Department of Justice will respond to these calls for action.
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