September 24, 2023

Senator Warren’s New Crypto Bill

Detail records of identities and transfers of customers to the private cryptocurrency wallets will be required from the local cryptocurrency exchanges by the Department of Treasury if Senator Elizabeth Warren’s new crypto bill will be passed.

Senator Elizabeth Warren of the United States has prepared a bill to crack down on using crypto as a possible way of avoiding economic sanctions.

The recent anti-crypto move of Senator Warren came along with the United States government’s push to stop Russia’s possible use of crypto to evade the economic sanctions which are placed on the country.

According to NBC News Tuesday report, in one of the clauses of Senator Warrens’ new cryptocurrency bill which is still in draft form, all local crypto exchanges will be required to submit their customer’s identities and transfer details of crypto wallets to the Department of Treasury.

It is also aiming to force the companies to choose between doing business in the United State or with the individuals and organizations facing sanctions by making threats of secondary sanctions applying on the foreign cryptocurrency exchanges.

NBC News report stated that the Financial Crimes Enforcement Network (FinCEN) of the Treasury Department is preparing to draft similar provisions which are based on Senator Warren’s bill.

Alex Bornyakov, digital transformation deputy minister of Ukraine has been demanding cryptocurrency exchanges for banning Russian users for more than a week now. Although, leading crypto exchanges like Kraken, Binance, and Coinbase have told they could not apply blanket ban but also assured that they are committed to complying with United States sanctions.

Senator Warren has been questioning the crypto sector for quite a while now. During her committee hearing in 2021, she tagged DeFi as a dangerous cryptocurrency and presented a bill to study ransomware crypto’s role, and criticized the high fees of the Ethereum network. Therefore, it is no surprise for the industry observers that Senator Warren has taken the opportunity to implement the though regulations.

Last week Warren along with other Senators wrote to Janet Yellen Secretary of Treasury about this issue. Also earlier today she wrote on Twitter that the bill will ensure that crypto can’t be used by Putin and his company to subvert the United States economic sanctions.

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