Sherrod Brown Calls for Crackdown on Cryptocurrency in the Wake of Terrorist Attacks
Sherrod Brown, the Chair of the Senate Banking Committee, has called for stricter regulations on cryptocurrency to prevent its use in funding terrorism and evading sanctions. This comes after recent attacks on Israel, where the industry argues that figures portraying the scale of crypto fundraising by terrorist groups have been taken out of context.
Brown criticized crypto platforms for not implementing the same protective measures, such as know your customer rules, that traditional sectors use to prevent illicit finance. He also expressed concern about certain crypto services and tokens that enable users to keep their transactions anonymous, making it difficult for law enforcement to trace or block crypto funds.
Controversy Surrounding Crypto’s Involvement in Terrorist Fundraising
Brown’s comments follow controversy surrounding the role of cryptocurrency in the fundraising activities of terrorist group Hamas. The Wall Street Journal recently reported that Hamas, along with other militant groups, raised millions worth of crypto prior to attacks in Israel. However, crypto researcher Elliptic has claimed that these figures are being misrepresented.
Over 100 lawmakers, including Elizabeth Warren and Brown himself, wrote a letter to President Joe Biden’s administration expressing concerns about Hamas’ use of crypto for fundraising.
Potential Measures to Address Crypto Misuse
Lawmakers are considering various measures to crack down on the misuse of cryptocurrency. One such measure is a bill proposed by Senator Elizabeth Warren aimed at preventing money laundering and sanctions evasion through crypto. However, Brown has expressed hesitancy towards this bill.
Brown mentioned a bipartisan bill from Senators Jack Reed and Mark Warner during the hearing. Although he did not name the bill specifically, Reed and Warner introduced a bill in July that would require decentralized finance (DeFi) services to meet anti-money laundering requirements.
Sen. Brown Welcomes Collaborative Efforts
Brown emphasized the need for collaboration and welcomed ideas from committee members, witnesses, and the audience. He expressed a commitment to working together in a bipartisan manner to ensure that terrorists and bad actors cannot exploit cryptocurrency.
Hot Take: Strengthening Regulations to Safeguard Against Crypto Misuse
Sherrod Brown’s call for a crackdown on cryptocurrency reflects growing concerns about its potential role in funding terrorism and evading sanctions. While the industry argues that figures have been misrepresented, there is a need for stricter regulations to prevent illicit finance. Lawmakers are considering various measures, including bills proposed by Elizabeth Warren and Senators Reed and Warner, to address these issues. Collaboration and bipartisan efforts will be crucial in implementing effective safeguards against crypto misuse.
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