Senator Elizabeth Warren (D-Massachusetts) is working on legislation that will make it more difficult to utilize cryptocurrency to avoid sanctions.
Warren said her new measure will “ensure crypto isn’t exploited by Putin and his cronies to sabotage our economic sanctions” in a tweet on Tuesday, alluding to Russian President Vladimir Putin.
According to NBC News, which was the first to report on Warren’s planned law, one of its components would require financial institutions to store thorough data and submit reports to the Treasury Department, making it easier to authenticate customer identities and transfers to private wallets.
However, because the Senate is controlled by Republicans, the bill’s chances of passing are slim.
Warren and three other Democratic senators wrote to Treasury Secretary Janet
Last week, Warren and three other Democratic senators wrote to Treasury Secretary Janet Yellen, inquiring about the Treasury Department’s plans for enforcing economic penalties against the cryptocurrency business.
“Strong sanctions compliance enforcement in the cryptocurrency business is vital,” the senators said, “given that digital assets, which allow entities to bypass the traditional financial system, may increasingly be utilized as a vehicle for sanctions evasion.”
Sen. Warren told MSNBC’s Andrea Mitchell on Tuesday that “we have a lot of evidence that not all the crypto platforms are actually adhering to those rules, and collecting the information, then reporting the information, and then shutting down where we have sanctions” in regards to know-your-customer regulations.
However, there is currently no strong public evidence that crypto actors are undermining sanctions. “It’s not that that sector is totally one where things can be evaded,” Yellen said last week in response to senators’ questions regarding crypto, adding, “It’s not that that sector is completely one where things can be evaded.”