In a letter addressed to Treasury Secretary Janet Yellen, US Senator Elizabeth Warren has expressed her help for the implementation of sturdy Anti-Cash Laundering and Combating the Financing of Terrorism (AML/CFT) measures for stablecoins. Warren’s letter emphasizes the significance of adopting the complete suite of AML instruments requested by the Treasury Division in a November 2023 letter to Congress.
Warren highlights the rising risk that cryptocurrencies, significantly stablecoins, pose to nationwide safety. She particularly mentions the reliance of Iran and Hamas on crypto to fundraise and finance terrorist assaults. To successfully fight this risk, Warren argues that any new crypto laws should embrace the great AML/CFT authorities requested by the Treasury Division.
The Senator references Deputy Secretary Adewale O. ‘Wally’ Adeyemo’s testimony earlier than the Senate Committee on Banking, Housing, and City Affairs, the place he emphasised the necessity for added AML authorities to counter the risk posed by cryptocurrencies. Warren factors out that excluding key gamers within the digital asset ecosystem, resembling miners and validators, from AML/CFT necessities would enable unhealthy actors to revenue from the elevated crypto buying and selling facilitated by stablecoin laws.
Warren’s stance on the regulation and oversight of crypto aligns together with her earlier efforts to rein in unlawful actions and shield shoppers, the monetary system, and nationwide safety. She has been an advocate for closing loopholes in AML guidelines that enable sanctioned entities like Iran to earn income by way of crypto transactions. Moreover, Warren has raised issues about using crypto in terrorist financing and has known as for stronger guidelines to guard shoppers and nationwide safety in stablecoin-related laws.
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