In a letter addressed to Treasury Secretary Janet Yellen, US Senator Elizabeth Warren has expressed her support for the implementation of robust Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) measures for stablecoins. Warren’s letter emphasizes the importance of adopting the full suite of AML tools requested by the Treasury Department in a November 2023 letter to Congress.
Warren highlights the growing threat that cryptocurrencies, particularly stablecoins, pose to national security. She specifically mentions the reliance of Iran and Hamas on crypto to fundraise and finance terrorist attacks. To effectively combat this threat, Warren argues that any new crypto legislation must include the comprehensive AML/CFT authorities requested by the Treasury Department.
The Senator references Deputy Secretary Adewale O. ‘Wally’ Adeyemo’s testimony before the Senate Committee on Banking, Housing, and Urban Affairs, where he emphasized the need for additional AML authorities to counter the threat posed by cryptocurrencies. Warren points out that excluding key players in the digital asset ecosystem, such as miners and validators, from AML/CFT requirements would allow bad actors to profit from the increased crypto trading facilitated by stablecoin legislation.
Warren’s stance on the regulation and oversight of crypto aligns with her previous efforts to rein in illegal activities and protect consumers, the financial system, and national security. She has been an advocate for closing loopholes in AML rules that allow sanctioned entities like Iran to earn revenue through crypto transactions. Additionally, Warren has raised concerns about the use of crypto in terrorist financing and has called for stronger rules to protect consumers and national security in stablecoin-related legislation.
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