U.S. Senator Elizabeth Warren has called on Congress to ensure that regulators like the Securities and Exchange Commission (SEC) have the tools to effectively regulate the crypto industry and crack down on crypto money laundering activities We have called on the government to do the same.” The current legal structure is essentially a giant billboard over crypto, which says, “Money laundering done here,” the congressman stressed.
Senators Urge Congress to Crack Down on Crypto Money Laundering
U.S. Sen. Elizabeth Warren (D-MA) said in an interview with Politico’s Morning Money Wednesday that cracking down on money laundering activities is her “main focus” in terms of crypto-related legislation.
The senator confirmed that she will reintroduce her bill, entitled the “Digital Assets Anti-Money Laundering Act of 2022.” Originally introduced last December, the bill is the “most direct attack” on the personal freedom and privacy of crypto users, according to experts in the field.
Warren explained that money laundering, like fraud, is “nearly invisible to the public.” “It occurs in the darkest shadows of the crypto world, but its impact on our national security and law enforcement is immeasurable…. The current legal structure is essentially a giant billboard over crypto, which is money laundering, which took place here,” the senator explained and elaborated.
This is not about inventing any new form of anti-money laundering rules. This is about applying the exact same set of rules that apply to all other financial industries.
Even U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has stated that crypto should be treated like any other capital market.
Senator Warren wants Congress to empower regulators to be effective “patrol cops”
“There are two very different kinds of crypto problems,” Warren continued, noting that “one is consumer fraud.” The Senator emphasized.” That’s what we saw when the FTX and other exchanges collapsed. This is part of the pump-and-dump and the rag-pull and all the other ways customers get ripped off.” Emphasizing that both Congress and regulators need to take action, she elaborated.
There are already many regulatory tools to address that. Regulators need to use those tools, and Congress needs to ensure that regulators have the resources they need to be effective cops.
SEC Chairman Gensler has often said that securities regulators “play the role of a roving cop,” taking enforcement action against non-compliant crypto companies. Senator Warren has called for the SEC to impose strict rules on the crypto sector and exercise its full authority to regulate crypto trading.
Warren has long been skeptical of crypto. She has warned about “crypto runs” that might require a federal bailout and has repeatedly expressed concern about the environmental impact of bitcoin mining. She hopes that Congress and the Treasury Department will quickly adopt policies to mitigate crypto risks. After the collapse of crypto exchange FTX, she also urged Fidelity Investments to stop offering bitcoin as an option in 401(k) retirement accounts.
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