Senator Elizabeth Warren of the United States has urged Congress to give authorities like the Securities and Exchange Commission (SEC) the resources they need to adequately oversee the cryptocurrency business and combat money laundering operations.
The congressman emphasized that “the current legal framework essentially throws up a huge banner above cryptocurrency that screams, money laundering done here.”
Senator calls on Congress to combat cryptocurrency money laundering
In an interview with Politico’s Morning Money on Wednesday, U.S. Senator Elizabeth Warren (D-MA) stated that her “primary emphasis” in terms of crypto-related legislation is cracking down on money laundering activities.
“Digital Asset Anti-Money Laundering Act of 2022,” according to the senator, will be reintroduced. This measure, which was initially submitted in December of last year, is reportedly “the most direct attack” on the autonomy and privacy of cryptocurrency users.
The senator elaborated, saying: “The current legal framework essentially throws up a huge flag above cryptocurrency that reads, Money laundering done here.
Additionally, Gary Gensler, the head of the U.S. Securities and Exchange Commission (SEC), has stated that cryptocurrencies should be treated similarly to other capital markets.
Senator Warren wants Congress to provide regulators the authority they need to “cop on the beat” effectively.
Warren said, “There are two very different kinds of crypto concerns. One is consumer fraud.” “That’s what we’ve seen when FTX and other exchanges crashed,” the senator emphasized.
These instruments must be used by regulators, and Congress must ensure that they have the funding necessary to do their jobs as efficient beat cops.
Gensler, the chairman of the SEC, has frequently stated that the securities watchdog “will function as the cop of the beat” and launch enforcement actions against noncompliant crypto businesses.
Senator Warren has pushed for the SEC to put stricter regulations on the cryptocurrency industry and use all of its power to control trading in cryptocurrencies.
She also advised Fidelity Investments to stop providing bitcoin as a choice in 401(k) retirement accounts in the wake of the collapse of cryptocurrency exchange FTX.