Senator Elizabeth Warren Pushes for AML Compliance in Crypto Sector

A request for increased oversight of crypto validators and stablecoin users has been made by Senator Elizabeth Warren in an attempt to reduce illicit trade on a global scale. Warren drew attention to the fact that cryptocurrency companies must adhere to the same Anti-Money Laundering (AML) rules as more conventional financial institutions during a hearing before the US Senate Banking Committee.

Deputy Secretary Wally Adeyemo of the Treasury spoke at the hearing on combating terrorist financing, sanctions evasion, and illicit financial transactions. When asked about this, Senator Warren stated that crypto validators were exempt from the same regulations that apply to banks.

Increased Regulatory Scrutiny

This comes on top of earlier claims that the industry is helping criminals launder money and avoid punishment. Inquiring about the prospect of Iran serving as a validator for American cryptocurrency transactions, Warren expressed concern. Warren has called for further checks to be placed on crypto validators, and Adeyemo has indicated that this might lead to more criticism.

Inquiring further, she made a passing reference to the correlation between the rising cryptocurrency market and the funds received by Iran, emphasizing the need to include stablecoin issuers and other relevant players in the legal framework. Iran has benefited more from the conventional banking system, according to some X (previously Twitter) users, than from crypto validators.

Senator Warren has been critical of the cryptocurrency business for some time now, pointing out that they are not willing to play by the same laws as more conventional banks. In addition, the Blockchain Association disagreed with Warren on many points regarding the proposed Anti-Money Laundering Bill's implementation.