Senator Elizabeth Warren Criticizes Crypto for Promoting Illicit Finance

• Senator Sherrod Brown also expressed worries over cryptocurrency and its use in frauds.
• 19 senators who have lent their support to Warren’s Digital Asset Anti-Money Laundering Act.

At Thursday’s hearing before the Senate Banking Committee, Senator Elizabeth Warren and other Democrats condemned the purported use of cryptocurrency in illegal financing and frauds.

Senator Lindsey Graham (R-S.C.) is one of 19 senators who have lent their support to Warren’s Digital Asset Anti-Money Laundering Act, which she has been working to pass for the last year amid her criticism of cryptocurrency.

Warren said during a Senate Banking Committee hearing:

“This bill would plug the holes in our anti-money laundering rules to make it easier for financial regulators to track suspicious crypto activity to make it more visible and to shut down the scammers.”

Stringent Obligations

Miners, validators, and wallet providers would all be subject to the know-your-customer regulations and other obligations of the Bank Secrecy Act under Warren’s plan. Some in the cryptocurrency business are opposed to the measure, arguing that it is overly broad and violates the constitution.

During Thursday’s hearing, Senator Sherrod Brown (D-Ohio), who chairs the Senate Banking Committee, also expressed worries over cryptocurrency and its use in frauds.

Brown said:

“As we’ve seen in other hearings in the last three years, frauds and scams are not unique in consumer finance, they are also common within cryptocurrency. We will keep pushing to make our financial system safer – whether it’s stopping rampant frauds and scams in cryptocurrency or in apps and check fraud.”

Politico reports that Brown, who would play a key role in pushing crypto laws, has recently said that he is in discussions about a measure that would prohibit the use of digital assets for the purpose of money laundering.

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