Sen. Warren Introduces Bill to Combat Illicit Crypto Use

• US Senator Elizabeth Warren has proposed a bill that would address the illegal use of digital assets, such as crypto being used to facilitate criminal activities.
• The proposed bill aims to make the crypto industry comply with the same money laundering rules that apply to the traditional financial system.
• Critics of the bill warn that it will effectively ban all legitimate activities related to digital currencies in the United States.

Crypto Used for Illicit Activities

US Senator Elizabeth Warren has warned that “rogue nations, oligarchs and drug dealers” are using cryptocurrency to fund their criminal regimes. She claims that crypto is helping to facilitate all kinds of crime and illicit financial activity.

Proposed Bill To Address Illegal Crypto Use

In order to combat this kind of activity, Warren has proposed a bill called The Digital Asset Anti-Money Laundering Act of 2022 which seeks to make the crypto industry comply with the same money laundering rules that apply to traditional finance systems.

Critics Warn Of Legitimate Crypto Ban

The Blockchain Association’s chief policy officer Jake Chervinsky warns that this proposed legislation could have far-reaching implications on legitimate digital currency activities, effectively banning them in the United States.

Warren’s Warning On Crypto Use

At a Senate Banking, Housing, and Urban Affairs Committee hearing, Warren warned about criminals like drug traffickers and ransomware attackers as well as states like North Korea and Iran using crypto for illicit purposes: “Look, the rules should be simple: same kind of transaction, same kind of risk, means the same kind of rules.”

Conclusion

Senator Warren’s proposal aims to close loopholes when it comes to crypto regulations but may also result in a ban on legitimate cryptocurrencies activities if passed into law.