US Senator Elizabeth Warren says crypto is helping to facilitate all kinds of crime and illicit financial activity.
The Massachusetts Senator says that “rogue nations,” oligarchs and drug dealers are using cryptocurrency to fund their criminal regimes.
The long-time crypto critic says she has proposed a bill that could address the illegal use of digital assets.
“Did you know that rogue nations, oligarchs, and drug lords use crypto to launder billions in stolen funds, evade sanctions, and finance terrorism? It’s a big problem, but one we can fix.
I have a bill that will close loopholes and apply common-sense rules to the industry.”
Warren introduced the Digital Asset Anti-Money Laundering Act of 2022 in December of 2022. The bill aims to make the crypto industry comply with the same money laundering rules that apply to the traditional financial system.
The Senator announced plans to reintroduce the legislation in February as she warned that criminals like drug traffickers and ransomware attackers, as well as states like North Korea and Iran use crypto to launder billions in illicit funds.
Said Warren at a Senate Banking, Housing, and Urban Affairs Committee hearing,
“Look, the rules should be simple: same kind of transaction, same kind of risk, means the same kind of rules.”
According to the Blockchain Association’s chief policy officer Jake Chervinsky, the proposed bill will also affect legitimate crypto activities as it will effectively ban digital assets in the US.
“Senator Warren’s bill would impose a de facto ban on crypto in the USA, criminalizing all sorts of legitimate activity like mining and staking, while doing nothing to actually combat illicit finance. It’s no surprise she’s having trouble finding co-sponsors.”