Summary
Senator Elizabeth Warren, along with other Democrats, criticized the alleged use of cryptocurrency in illicit finance and scams during a Senate Banking Committee hearing. Warren has been pushing for the passage of her Digital Asset Anti-Money Laundering Act, which has gained support from 19 other senators. The bill aims to extend regulatory requirements to miners, validators, and wallet providers. Some in the crypto industry have pushed back against the bill, calling it unconstitutional and too wide-reaching. Senate Banking Committee Chair Sherrod Brown also expressed concerns about crypto and its use in scams. Other lawmakers are working on crypto-related bills, including one that focuses on the market structure of crypto and includes an anti-money laundering provision. Warren also criticized stablecoins, stating that they are used in the majority of illicit crypto transactions. The Biden Administration has also expressed concerns about illicit finance in crypto and has called on Congress to give it more authority to go after illicit actors.
Key Points
1. Sen. Elizabeth Warren and other Democrats criticized the alleged use of crypto in illicit finance and scams during a Senate Banking Committee hearing. Warren has been pushing for her Digital Asset Anti-Money Laundering Act, which has gained support from 19 other senators.
2. Warren’s bill aims to extend Bank Secrecy Act requirements to miners, validators, and wallet providers in order to track suspicious crypto activity and shut down scammers. However, it has received pushback from some in the crypto industry who argue that it is unconstitutional and too wide-reaching.
3. Senate Banking Committee Chair Sen. Sherrod Brown also expressed concerns about the use of crypto in scams and fraud. He has been in talks about a bill that would target the use of digital assets for money laundering. Other lawmakers, including House Republicans, are also working on crypto-related bills with anti-money laundering provisions.
Stablecoins were also criticized during the hearing, with Warren stating that they are used in the majority of illicit crypto transactions. Recent data from Chainalysis shows that stablecoins now account for the majority of all illicit transaction volume in the crypto industry. Illicit finance in crypto has caught the attention of the Biden Administration, with Deputy Treasury Secretary Wally Adeyemo calling on Congress to give more authority to go after illicit actors in the digital asset industry.