US Senator Elizabeth Warren introduced legislation to address her concerns surrounding the alleged misuse of digital currencies in illicit activities, citing money laundering, drug trafficking, sanctions evasion
Today, Senator Elizabeth Warren of the United States introduced legislation aimed at addressing her concerns regarding the alleged misuse of digital currencies in various illicit activities, including money laundering, drug trafficking, sanctions evasion, and more.
The bill, which has garnered support from a coalition within the Banking Committee, represents a significant push for increased oversight and regulation within the Bitcoin and cryptocurrency space. Senator Warren, emphasizing the associated risks of cryptocurrencies, asserted that these digital assets serve as a means for criminal activities and called for the implementation of stringent regulatory frameworks to address these issues.
Warren stated, "The Treasury Department is making clear that we need new laws to crack down on crypto’s use in enabling terrorist groups, rogue nations, drug lords, ransomware gangs, and fraudsters to launder billions in stolen funds, evade sanctions, fund illegal weapons programs, and profit from devastating cyberattacks. I’m glad that five new senators are joining the fight to take action, including three members of the Banking Committee – our bipartisan bill is the toughest proposal on the table cracking down on crypto’s illicit use and giving regulators more tools in their toolbox."
Senator Warren's proposed legislation aims to enforce stricter reporting requirements by expanding the responsibilities under the Bank Secrecy Act (BSA), including requirements such as Know-Your-Customer (KYC) obligations, filing reports on "transactions involving unhosted wallets," and more. The objective is to close existing loopholes and bring the digital asset ecosystem into greater compliance.
The bill has received endorsements from various entities, including the Bank Policy Institute, Massachusetts Bankers Association, Transparency International U.S., Global Financial Integrity, National District Attorneys Association, Major County Sheriffs of America, Massachusetts Sheriffs’ Association, AARP, National Consumer Law Center, and the National Consumers League.
In a recent appearance on CNBC last Thursday, Senator Warren asserted that North Korea is utilizing Bitcoin and crypto to fund almost half of its nuclear weapons program.