US Senator Elizabeth Warren has called on Congress to ensure that regulators like the Securities And Exchange Commission (SEC) have the necessary tools and resources to effectively manage cryptocurrency trading and prevent money laundering. She believes that the current legal framework sends out a signal that crypto is a place where money laundering takes place. “The current legal structure essentially holds up a giant sign about crypto that says, money laundering is done here,” she stressed.
Senator Urges Congress To Put a Stop To Crypto Money Laundering
US Senator Elizabeth Warren (D-MA), in an interview with Politico’s Morning Money on Wednesday, stated that cracking down on money laundering activities via cryptocurrency-related laws should be a major focus.
The Senator confirmed that she will be reintroducing her bill titled the “Digital Assets Anti-Money Laundering Act of 2022.” Originally launched in December last year, this bill is aimed at providing guidance on the privacy and personal freedom of individuals who use cryptocurrency.
Warren further outlined 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,” she explained.
This is not about creating new anti money laundering rules. It is about using the exact same framework in all financial industries.
US Securities And Exchange Commission (SEC) Chairman Gary Gensler has also stated that cryptocurrencies should be treated the same as other capital markets.
Senator Warren Wants Congress To Give Regulators The Power To be an Effective ‘Cop On the Beat’
“There are two very different types of crypto problems,” Warren continued, noting that “one is consumer fraud.” The senator emphasized: “We have seen this recently when FTX, and other exchanges, crashed. It’s part and parcel of the pump and dump, the rug pulling, and all the other ways investors are cheated.” She urged Congress and the Treasury to act quickly to ensure that these regulators have the resources they need in order to be effective law enforcement officers.
There are many regulatory tools available to help deal with this. We need regulators to use these tools and Congress needs to ensure that these regulators have the resources they need to be effective cops on the beat.
SEC Chairman Gensler has stated often that the securities regulator will “serve as the pace cop” and take enforcement action against non-compliant cryptocurrency companies. Senator Warren has been pushing the SEC to enforce stricter guidelines for cryptocurrency trading and to use its full authority in managing cryptocurrency trading.
Warren has been a crypto-skeptic for a long time. She has warned about “a crypto run” that will require a federal bailout. She has also repeatedly raised concerns about the impact of mining bitcoins on the environment. She strongly urged Congress and the Treasury to take steps to protect itself from the potential dangers posed by cryptocurrencies. Following this, she also called out Fidelity Investments for stopping offering bitcoin as an option for 401(k)-retirement accounts.
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