- Warren urges crypto oversight to prevent illicit trade.
- Adeyemo discusses anti-terrorist funding in Senate hearing.
- Warren targets crypto validators for regulation.
Senator Elizabeth Warren has called for increased regulatory oversight of cryptocurrency validators and users of stablecoins to curb global illicit trading activities. During a US Senate Banking Committee hearing, Warren highlighted the necessity for crypto firms to comply with Anti-Money Laundering (AML) standards akin to traditional financial entities.
At the same hearing, Deputy Secretary of the Treasury Wally Adeyemo addressed issues related to the fight against terrorist funding, circumvention of sanctions, and unlawful financial dealings. Senator Warren pointed out that crypto validators, unlike banks, do not currently fall under the same regulatory framework.
Heightened Regulatory Attention
Warren’s remarks build upon previous assertions that the crypto industry facilitates money laundering and enables criminals to evade justice. She raised questions about the possibility of Iran acting as a validator for cryptocurrency transactions involving Americans, advocating for increased regulatory measures for crypto validators. Adeyemo acknowledged that such measures could attract additional scrutiny.
Warren also briefly mentioned the link between the growth of the cryptocurrency market and the financial benefits accruing to Iran, emphasizing the importance of incorporating stablecoin issuers and other key entities into the regulatory ambit. Some users on X (formerly known as Twitter) have argued that Iran has gained more from the traditional banking system than from cryptocurrency validators.
For an extended period, Senator Warren has been a vocal critic of the cryptocurrency industry, underscoring their reluctance to abide by the regulatory rules that govern traditional banks. Moreover, the Blockchain Association has contested several aspects of Warren’s stance on enforcing the proposed Anti-Money Laundering legislation.
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