Senator Elizabeth Warren has reiterated her stance on the crypto industry, saying that it must follow the same anti-money laundering rules and regulations as traditional financial institutions. The Democrat senator said in an interview on Tuesday that she is willing to collaborate with the industry, but not at the expense of allowing illegal activity to flourish.
Warren introduces anti-money laundering bill for crypto
Warren, who is a member of the Senate Banking Committee, has been an outspoken critic of the crypto sector. She recently introduced a bill called the “Digital Asset Anti-Money Laundering Act”, which would extend the existing Bank Secrecy Act rules to crypto entities, such as miners, validators, wallet providers, and exchanges.
The bill would require these entities to register with the Financial Crimes Enforcement Network (FinCEN), implement customer due diligence procedures, report suspicious transactions, and maintain records. The bill would also authorize FinCEN to impose civil and criminal penalties for non-compliance.
Warren said that her bill is not a regulatory bill, but a law enforcement bill, aimed at closing the loopholes that allow crypto to facilitate money laundering, terrorism financing, fraud, and other crimes. She argued that crypto poses the same risks as other parts of the financial system, and therefore should be subject to the same rules.
Warren challenges the industry to cooperate
Warren said that she wants to work with the industry, but she does not understand why the industry seems to resist following the rules. She said that the industry claims that it cannot survive without providing space for criminals, such as drug traffickers, human traffickers, terrorists, ransomware scammers, and consumer scammers.
“I want to collaborate with the industry. What I don’t understand is why the industry seems to be saying that the only way that they can survive is if there’s plenty of space for the drug traffickers and the human traffickers,” Warren told Bloomberg Television.
Warren said that she just wants a level playing field, where everyone follows the same rules, whether they are banks, credit cards, stockbrokers, or crypto entities. She said that she is open to engagement, but she will not compromise on the protection of consumers and national security.
Warren faces opposition and criticism
Warren’s bill has faced opposition and criticism from the crypto industry and some lawmakers, who argue that it is too broad and intrusive, and that it would stifle innovation and growth. They claim that crypto already has sufficient self-regulation and oversight, and that it offers more transparency and accountability than traditional finance.
Some of the critics of Warren’s bill include Senator Cynthia Lummis, a Republican from Wyoming, who is a vocal supporter of crypto. Lummis said that Warren’s bill would create a “one-size-fits-all” approach that would harm the industry and the consumers. She said that the bill would impose unnecessary and burdensome requirements on crypto entities, and that it would discourage innovation and competition.
Lummis also said that Warren’s bill would undermine the privacy and sovereignty of the users, and that it would give more power and control to the government and the regulators. She said that the bill would go against the core principles and values of crypto, which are decentralization, freedom, and empowerment.
