On January 12, Senator Elizabeth Warren sent a letter to Scott Bessent, President-elect Donald Trump’s nominee for Treasury Secretary, urging him to strengthen regulations on cryptocurrency.
She raised concerns about the growing use of digital assets in illegal activities and national security threats. The senator asked if the Treasury should have expanded authority to address these risks.
Warren highlighted how bad actors use cryptocurrency for crimes such as money laundering and evading sanctions. She pointed to its role in funding threats like North Korea’s nuclear program, ransomware attacks, and weapons sales.
Did you know?
Subscribe - We publish new crypto explainer videos every week!
How Can You Earn Money With Axie Infinity? (AXS Animated Explainer)
In her letter, she asked whether the Treasury should adopt stricter Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) measures specifically designed for digital assets.
Warren also recommended exploring tools to cut ties between US financial institutions and foreign crypto firms involved in risky or illegal activities.
Furthermore, the senator questioned whether stablecoins and overseas companies connected to US markets should fall under the jurisdiction of the Office of Foreign Assets Control. She proposed that the Bank Secrecy Act, which requires financial institutions to maintain records and report suspicious activities, could be updated to include these entities.
These questions are expected to be discussed during Bessent’s confirmation hearing on January 16.
As Senator Warren pushes for tighter crypto rules, Greg Cipolaro, the head of research at the New York Digital Investment Group (NYDIG), recently urged patience regarding changes to crypto rules. Why? Read the full story.
