Senator Warren Advocates for Extending Anti-Money Laundering Regulations to Crypto Miners and Validators

Crypto News– US Senator Elizabeth Warren has emphasized that any forthcoming crypto regulations, including the recently proposed regulatory framework for the stablecoin market, should encompass the comprehensive set of anti-money laundering authorities that the Treasury Department sought in November 2023.

Senator Warren Advocates for Extending Anti-Money Laundering Regulations to Crypto Miners and Validators

In a letter dated April 16 addressed to US Treasury Secretary Janet Yellen, Senator Warren outlined her position and advocated for extending Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) obligations to include miners, validators, and DeFi intermediaries alongside stablecoin issuers.

Senator Warren’s stance on regulatory frameworks for stablecoins underscores her concerns regarding their potential implications. She believes that such regulations would integrate the stablecoin sector further into the traditional banking system. She argues that this integration could lead to an intensification of trading activities within the crypto market, potentially creating more opportunities for illicit actors, including terrorists, to exploit these channels for evading sanctions and obtaining untraceable funds.

In her view, the perceived risks associated with cryptocurrencies extend to national security. She references recent testimony from Treasury Deputy Secretary Adewale Adeyemo before Congress to bolster her argument. According to Senator Warren, Adeyemo’s testimony highlighted the inherent vulnerabilities in blockchain technologies that malicious actors, such as terrorist organizations like Hamas, could exploit for fundraising purposes.