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.
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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.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
