In a communication directed to Treasury Secretary Janet Yellen, US Senator Elizabeth Warren has conveyed her endorsement for the enforcement of robust Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) measures concerning stablecoins. Warren’s correspondence underscores the significance of embracing the complete array of AML tools as solicited by the Treasury Department in a letter to Congress issued in November 2023.
The letter from Warren underscores the escalating menace that cryptocurrencies, particularly stablecoins, present to national security. She explicitly references the utilization of crypto by Iran and Hamas for fundraising and supporting terrorist activities. To effectively address this peril, Warren asserts that any forthcoming crypto-related legislation must encompass the extensive AML/CFT capabilities advocated by the Treasury Department.
Making a reference to Deputy Secretary Adewale O. ‘Wally’ Adeyemo’s testimony before the Senate Committee on Banking, Housing, and Urban Affairs, where he underscored the necessity for enhanced AML authorities to counter the risks associated with cryptocurrencies, Warren argues that the exclusion of crucial entities in the digital asset sphere, such as miners and validators, from AML/CFT obligations could enable malicious actors to capitalize on the upsurge in crypto trading facilitated by stablecoin regulations.
Warren’s position on the supervision and governance of crypto assets resonates with her prior endeavors to curb illicit practices and safeguard consumers, the financial infrastructure, and national security. She has been a proponent of closing loopholes in AML regulations that permit sanctioned entities like Iran to generate revenue through crypto transactions. Furthermore, Warren has voiced apprehensions regarding the exploitation of crypto for terrorist financing and has advocated for more stringent regulations to shield consumers and national security in legislation pertaining to stablecoins.
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