Senator Elizabeth Warren (D-MA) cited a U.S. Government Accountability Office (U.S. GAO) report on X, saying “rogue nations are using crypto to dodge sanctions and undermine our national security.” Her tweet drew massive backlash from the crypto community and industry experts.
What Happened: Warren, once again, reiterated her anti-crypto stance on Sunday:
A new @USGAO report confirms that rogue nations are using crypto to dodge sanctions and undermine our national security.
— Elizabeth Warren (@SenWarren) January 21, 2024
It’s time for crypto to follow the same anti-money laundering rules as everyone else. I’ve got a bill to make it happen. https://t.co/TUX2sJ8HR0
The U.S. GAO report also examines how these transactions can be monitored and penalized by the U.S. Departments of Justice and Treasury, leading to multiple hefty penalties, such as Binance's $4.3 billion penalty.
The Community Notes feature on X added context to Warren's tweet, pointing out that fiat currency is the reported currency of choice for financial crimes.
Crypto Community Lashes Out: Senator Warren received heavy backlash from the cryptocurrency community for what was perceived to be misleading information about the report's findings.
Max Keiser, Economic Advisor to El Salvador President Nayib Bukele, tweeted, “You’re a f***** moron.”
Jeremy Hogan, partner at Hogan & Hogan, stated: “The article you cite actually contains just ONE instance of digital assets being used to avoid sanctions. One. From April 2023. And they were Chinese.”
Director Of Research at CoinCentre, Peter Van Valkenburg responded to Warren’s comment and also the USGAO post in detail in a post, highlighting that crypto follows the same AML rules as traditional financial institutions.
Paul Grewal, chief legal officer at Coinbase, tweeted: "Zero comparative analysis performed. Heck, zero analysis whatsoever performed."
Thinking Crypto Podcast Founder Tony Edward said:
When are you going to make your bankster buddy Jamie Dimon and JPMorgan comply with the laws? You are a lying hypocrite! pic.twitter.com/LaJEOXmLRG
— Tony Edward (Thinking Crypto Podcast) (@ThinkingCrypto1) January 22, 2024
Background: Warren’s perspective is similar to that of JPMorgan CEO Jamie Dimon and SEC Chairman Gary Gensler, who have both warned about cryptocurrency's illicit use cases.
Her Digital Asset Anti-Money Laundering Act highlights the use of crypto to fund terrorism, launder ill-gotten gains and in other criminal activities.
Read Next: Elizabeth Warren Slams SEC Spot Bitcoin ETF Approval: 'Wrong on The Law And Wrong On The Policy'
Photo: Shutterstock
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