Senator Elizabeth Warren joined other Democratic lawmakers in criticizing allegations of the use of cryptocurrencies for illicit finance and fraud during a Senate Banking Committee hearing on Thursday.
Warren was critical of cryptocurrency. She has worked to advance digital asset anti-money laundering legislation over the past year. apply Senator Lindsey Graham, R.S.C.
““This bill will close loopholes in anti-money laundering rules to make it easier for financial regulators to track suspicious cryptocurrency activity, making it easier to spot and keep fraudsters out,” Warren said during a Senate Banking Committee hearing on Thursday. . Fraud and fraud in the banking system.
Warren’s bill aims to extend Bank Secrecy Act requirements, including know-your-customer rules, to miners, validators and wallet providers. The bill has sparked backlash from some in the cryptocurrency industry. unconstitutional And it’s too broad.
Senator Sherrod Brown of Ohio, chairman of the Senate Banking Committee, also expressed concerns about cryptocurrencies being used for fraud during a hearing Thursday.
“As we have seen in other hearings over the past three years, fraud and scams are not just common in the consumer finance space, they are also common within cryptocurrencies,” Brown said. “We will continue to work to make the financial system safer, including checking fraud and stopping rampant scams and scams in cryptocurrencies and apps.”
Brown, who will play a key role in advancing cryptocurrency legislation, recently revealed that he is discussing legislation targeting the use of digital assets for money laundering. Politico.
Other lawmakers are also preparing cryptocurrency-related legislation, including one led by House Republicans that would take a comprehensive approach to cryptocurrency market structure. Rep. French Hill, R-Ark., told reporters Monday that the bill would include AML. supply.
stablecoin
Warren also criticized stablecoins during Thursday’s hearing, saying new data shows they are used in most illicit cryptocurrency transactions.
According to a January report, stablecoins now account for the majority of all illicit trading volume. report It comes from Chainalytic, a blockchain analysis company.
According to the report, “This change coincides with a recent increase in the share of overall cryptocurrency activity, including legitimate activity, for stablecoins. However, the dominance of stablecoins is likely to lead to increased risk for all forms of cryptocurrency-based crime.” “It’s not true.”
Illicit financing of cryptocurrencies has also attracted the attention of the Biden administration. Wally Adeyemo, Deputy Minister of Finance; called Late last year, Congress gave the agency more power to pursue wrongdoers in the digital asset industry. Adeyemo said “dollar-backed stablecoin providers,” especially those outside the U.S., should not be able to use U.S. currency without putting in place procedures to block terrorists from exploiting their platforms.
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