Senator Elizabeth Warren advocates for stronger oversight of crypto validators and stablecoin users to combat international illegal activities. During the US Senate Banking Committee Hearing, Warren emphasized that cryptocurrency companies should face the same Anti-Money Laundering (AML) regulations as traditional financial institutions.
At the hearing, Wally Adeyemo, the Deputy Secretary of the Treasury, spoke about Countering Illicit Finance, Sanctions Evasion and Terrorism. In contrast, Senator Warren pointed out that crypto validators are not bound by the same legal regulations as banks.
Amidst past accusations that the cryptocurrency sector has been used for illicit financing and circumventing sanctions, Senator Warren questioned if Iran could validate crypto transactions originating from the US. Adeyemo acknowledged this potential scenario, potentially inviting further scrutiny and calls for increased oversight from Warren.
Inquiring more deeply, she suggested that the expansion of the crypto market could be significant, considering the funds Iran receives. This underscores the importance of involving all relevant parties and stablecoin creators in the regulatory structure.
Despite being hit with various sanctions, Iran continues to generate substantial income by processing transactions for others due to our lack of effective tools to prevent this.
Community Backs Crypto Validators
Critics within the digital asset community argue against the unjust equivalence drawn between crypto validators and the facilitators of illicit finance. Some individuals on X, previously known as Twitter, contend that Iran has reaped greater benefits from the conventional financial system compared to crypto validators.
“Iran has the potential to generate revenue by managing an email routing ISP rather than engaging in cryptocurrency mining. However, it doesn’t necessarily mean that the internet should impose KYC regulations. It’s important to emphasize once more: Miners and validators do not act as opposing parties.”
Elizabeth Warren Maintains Anti-Crypto Stance
Senator Warren has frequently spoken out against the crypto sector, claiming they exploit gaps in regulations due to their resistance to adhering to the same laws as conventional financial institutions. The Blockchain Association voiced disagreement with some aspects of Warren’s stance on the proposed Anti-Money Laundering legislation.
Simultaneously, Senator Tim Scott contended that cryptocurrency market participants are being unjustly targeted. He emphasized that it’s not the responsibility of crypto validators or other stakeholders that the U.S. transferred $6 billion to Iran.
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2024-04-09 22:00