Elizabeth Warren Strikes Again: Unleashes A Tidal Wave Of Reactions In Crypto Circles

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: 

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.

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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:

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. 

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