Elizabeth Warren supports enhanced U.S. sanction options for stablecoins

Senator Elizabeth Warren of the United States wrote a letter to Treasury Secretary Janet Yellen, expressing her concerns based on Deputy Treasury Secretary Wally Adeyemo’s testimony before the Senate Banking Committee on April 9. The focus of her letter was consistent with the discussion during the hearing: the importance of implementing effective measures against Money Laundering and Financing of Terrorism (AML/CFT).

Warren voiced her approval in a letter for the passage of stricter anti-money laundering and countering financing of terrorism (AML/CFT) regulations for stablecoins in the legislature. At a Senate hearing, Adeyemo presented the Treasury’s plans to broaden its authority to sanction blockchain validator node operators, along with other proposals. The Treasury outlined its expanded enforcement objectives in a document, which Warren referred to as a “letter to Congress,” dated November 2023.

“Those authorities must be adopted into any legislation Congress advances to create a new regulatory framework around the $157 billion stablecoin market.”

Warren’s letter was written before the introduction of the Senate bill by Gillibrand and Lummis on April 18, which is scarcely addressed the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) aspects.

Elizabeth Warren supports enhanced U.S. sanction options for stablecoins

Instead, it appears that Warren was thinking of a bill that is anticipated to emerge from the House of Representatives Finance Committee, led by chair Patrick McHenry and ranking member Maxine Waters. On April 8th, Warren penned a letter to express her similar concerns to these two individuals. In her conclusion to the letter addressed to Yellen, Warren stated:

“Stablecoin legislation […] must include the full suite of AML tools that Treasury requested in its November 2023 letter to Congress as necessary to effectively combat that threat [of terrorism financing].”

Taylor Barr, Senior Policy Associate at Digital Chamber, expressed his curiosity about Senator Warren’s perspective on the new bill’s enhanced consumer protection provisions, added receivership text, and the regulatory agencies’ increased enforcement power. Surprisingly, these topics are absent from Warren’s public statements.

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2024-04-18 00:55