Senator Elizabeth Warren Pushes for AML Compliance in Crypto Sector

• Senator Warren spoke at a hearing before the US Senate Banking Committee.
• The Senator has called for further checks to be placed on crypto validators.

A request for greater oversight of crypto validators and stablecoin users has been made by Senator Elizabeth Warren in an effort to reduce illegal trade on a worldwide scale. Warren brought attention to the fact that cryptocurrency companies need to adhere to the same Anti-Money Laundering (AML) rules as more conventional financial institutions at 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 said that crypto validators were exempt from the same regulations that applied to banks.

Increasing Regulatory Scrutiny

This is 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, underscoring the need of including 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 aren’t 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.

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