US Senator Elizabeth Warren has called on Congress to ensure that regulators such as the Securities and Exchange Commission (SEC) have the tools to regulate the cryptocurrency industry effectively and crack down on money laundering activities. of money with cryptocurrencies. “The current legal structure essentially holds up a giant sign about crypto that says, money laundering is done here,” the lawmaker emphasized.
Senator Urges Congress to Crack Down on Crypto Money Laundering
US Senator Elizabeth Warren (D-MA) said in an interview with Politico’s Morning Money on Wednesday that cracking down on money laundering activities is her “main focus” in terms of cryptocurrency-related legislation.
The senator confirmed that she will reintroduce her bill titled the “Digital Assets Anti-Money Laundering Act of 2022.” Originally introduced in December last year, this bill is “the most direct attack” on the personal freedom and privacy of cryptocurrency users, according to experts in the field.
Warren explained that money laundering “is not as visible to the public” as fraud. “It occurs in the darkest shadows of the crypto world, but its impact on our national security and law enforcement is immense. … The current legal structure essentially holds up a giant sign about crypto that says, money laundering is done here,” the senator described, explaining:
This is not about inventing any new form of anti-money laundering rules. It is about applying the exact same set of rules that are applied in all other financial industries.
US Securities and Exchange Commission (SEC) Chairman Gary Gensler has also said that cryptocurrencies should be treated the same as other capital markets.
Senator Warren Wants Congress to Empower Regulators to be Effective ‘Cop on the Beat’
“There are two very different types of crypto issues,” Warren continued, noting that “one is consumer fraud.” The senator emphasized: “That is what we have seen when FTX and other exchanges crashed. It’s part of the pump and dump and the rug pulling and all the other ways that customers are cheated.” Emphasizing that both Congress and regulators must take action, he detailed:
There are already plenty of regulatory tools to deal with that. We need regulators to use those tools, and Congress needs to make sure those regulators have the resources they need to be effective road cops.
SEC Chairman Gensler has often said that the securities regulator will “serve as the pace cop” and take enforcement action against non-compliant crypto firms. Senator Warren has been pushing for the SEC to impose stricter rules on the cryptocurrency industry and use his full authority to regulate cryptocurrency trading.
Warren has long been a crypto skeptic. She has warned of “a crypto run” that may need a federal bailout and has repeatedly voiced her concerns about the environmental impact of bitcoin mining. She wants Congress and the Treasury to urgently adopt a policy to mitigate the risks of cryptocurrencies. Following the collapse of crypto exchange FTX, she also urged Fidelity Investments to stop offering bitcoin as an option in 401(k) retirement accounts.
What do you think of Senator Elizabeth Warren’s statements? Let us know in the comments section.
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