Elizabeth Warren Criticizes Crypto Use in Illicit Finance and Scams
During a Senate Banking Committee hearing, Senator Elizabeth Warren and other Democrats voiced their concerns about the alleged use of cryptocurrency in illicit finance and scams. Warren has been pushing for the advancement of her Digital Asset Anti-Money Laundering Act, gaining support from 19 other senators. She stated that the bill aims to make it easier for financial regulators to track suspicious crypto activity and shut down scammers.
Sherrod Brown Expresses Concerns About Crypto Scams
Senate Banking Committee Chair Senator Sherrod Brown also expressed concerns about crypto and its use in scams during the hearing. He emphasized the need to make the financial system safer by addressing frauds and scams in cryptocurrency as well as in other areas of consumer finance.
Lawmakers Working on Crypto-related Bills
Other lawmakers are also working on crypto-related bills. House Republicans are leading an effort to develop a comprehensive bill that includes an anti-money laundering provision. Additionally, Senator Brown is reportedly in talks about a bill that would target the use of digital assets for money laundering.
Warren Slams Stablecoins
Senator Warren criticized stablecoins during the hearing, citing data from blockchain analytics firm Chainalysis that showed stablecoins are used in the majority of illicit crypto transactions. However, she acknowledged that stablecoin dominance does not apply to all forms of cryptocurrency-based crime.
Biden Administration’s Focus on Illicit Finance in Crypto
The Biden Administration has also taken notice of illicit finance in crypto. Deputy Treasury Secretary Wally Adeyemo called on Congress to grant more authority to go after illicit actors in the digital asset industry. He specifically mentioned the need for procedures to block terrorists from using dollar-backed stablecoin platforms.
Hot Take: Addressing Concerns About Crypto and Illicit Finance
During a Senate Banking Committee hearing, Senator Elizabeth Warren and other lawmakers expressed concerns about the use of cryptocurrency in illicit finance and scams. Warren’s Digital Asset Anti-Money Laundering Act aims to track suspicious crypto activity and shut down scammers. Senate Banking Committee Chair Senator Sherrod Brown also highlighted the need to address frauds and scams in cryptocurrency. Other lawmakers are working on crypto-related bills, including one with an anti-money laundering provision. Warren criticized stablecoins for their use in illicit transactions, but acknowledged that not all cryptocurrency-based crime involves stablecoins. The Biden Administration is focused on combating illicit finance in the digital asset industry.
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