US Senator Elizabeth Warren Comments Digital Assets Are Used to Evade Economic Sanctions

US Senator Elizabeth Warren Comments Digital Assets Are Used to Evade Economic Sanctions – U.S. Senator Elizabeth Warren has voiced concern about the illicit utilization of cryptocurrency assets by malevolent entities, emphasizing their role in evading sanctions and posing a threat to national security. Reacting to a U.S. Government Accountability Office (GAO) report, Warren advocates for enhanced money laundering regulations targeting these assets.

Commenting on a U.S. Government Accountability Office (GAO) that examines the use of digital assets to evade sanctions, Warren stated: “A new U.S. GAO report confirms that rogue nations are using crypto to dodge sanctions and undermine our national security.” The report, issued in December, found that “digital assets like bitcoin and other virtual currencies pose risks to implementing and enforcing U.S. sanctions.” 

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However, the agency could mitigate some of these risks, given that “many digital assets are recorded on a public ledger, which may enable U.S. agencies and analytics firms to trace transactions and potentially identify illicit actors.” Warren faced criticism from the community on X after the U.S. Treasury’s National Money Laundering Risk Assessment report affirmed that traditional fiat currency remains the favored choice for financial crimes. 

Despite this, Warren advocates for equal application of anti-money laundering rules, endorsing her proposed Digital Asset Anti-Money Laundering Act. This legislation aims to extend Bank Secrecy Act (BSA) regulations to various components of the cryptocurrency technology framework. 

Warren also got criticized by several actors in the cryptocurrency industry. Coinbase CLO Paul Grewal blasted the referred report, stressing that it was made with “zero comparative analysis” just to “harangue an industry that spends millions and millions to follow the law.”

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